Amanda Williams News
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Trading of four similar U.S. structured notes tied to exchange-traded funds surged as the securities sold for more than 20 percent above face value.
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Almost six years after the start of the worst financial crisis since the Great Depression, bond issuers are again exploiting credit ratings by seeking firms that will provide high grades on debt backed by assets from auto loans to office buildings considered inappropriate by rivals.
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Sales of U.S. structured notes tied to proprietary indexes fell last month to the lowest since September amid a slump in commodity prices that has hurt the value of some of the securities.
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Structured note issuers face regulatory hurdles to releasing electronic systems in the U.S. that are as powerful as software that has become commonplace in Europe.
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David Bianco, among Wall Street’s most bullish stock forecasters when he was replaced last year at Bank of America Corp., was named chief U.S. equity strategist for Deutsche Bank AG.
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Deutsche Bank AG designed a derivative for Banca Monte dei Paschi di Siena SpA at the height of the financial crisis that obscured losses at the world’s oldest lender before it sought a taxpayer bailout.
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The U.S. Securities and Exchange Commission was sued by eight of R. Allen Stanford’s investors, who claim regulators’ “negligence and misconduct” caused their losses.
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Deutsche Bank AG’s energy trading unit faces a $1.5 million fine and must give up $123,198 in profit for allegedly manipulating U.S. power markets, the Federal Energy Regulatory Commission said.
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The agency that supplies drinking water to almost 19 million Los Angeles-area residents paid $47.2 million to unwind interest-rate swaps with banks. Unlike many municipal issuers, ratepayers didn’t come away with a loss.
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The U.S. Federal Energy Regulatory Commission’s probe of JPMorgan Chase & Co. demonstrates a renewed focus on market manipulation as the agency beefs up its oversight of the multibillion dollar energy-trading business.
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