Posts belonging to Category Credit Suisse

JP Morgan and Credit Suisse Pay Over $400 Million to Settle Mortgage-Backed Securities Actions


The SEC has settled two mortgage-backed securities actions against J. P. Morgan Chase and Credit Suisse for over $400 million. The enforcement actions arose out more than $1 billion in losses by investors during the financial crisis. Critics say that the settlements are just a cost of doing business and will not deter similar Wall […]

Wall Street Firms Apparently Planning Massive Job Cuts


Wall Street banks could soon cut as many as 21,000 jobs in New York alone, say Wall Street consultants and recruiters. Worldwide cuts could be even larger (“Large layoffs loom on Wall Street,” Stephen Gandel, CNN Money). While the stock market is up this year, and many smaller investment banks have been hiring, and the […]

Regulators Plan Legal Actions Over Improper Sales of ETFs and ETNs


The Financial Industry Regulatory Authority (FINRA) announced plans to file enforcement actions against certain brokerages in connection with unsuitable sales of leveraged and inverse leveraged exchange-traded funds (ETFs), as well as for failure to train their brokers who sell them (see Reuters article by Suzanne Barlyn and Jessica Toonkel entitled “FINRA to bring cases over […]

Exchange Traded Notes Can Lead to Big Losses


While the popularity of exchange traded notes (“ETNS”) has surged, ETNs can be extremely volatile, and investors run the risk of losing their entire investment. ETNs reportedly hold $17.4 billion in assets, up from under $5 billion five years ago.

Credit Suisse Exchange Traded Notes (ETNs) Clean Investors’ Clocks


Credit Suisse’s VIX (volatility)-linked exchange traded note? named “VelocityShares Daily 2X VIX Short-Term ETN” ? plummeted 30 percent on March 23 after Credit Suisse announced it would resume issuing new shares. “This is a wake-up call,” a Morningstar analyst was quoted as saying, adding: “People don’t take seriously the options that issuers have” that can […]

Is the SEC Too Soft on Major Wall Street Firms?


Questions continue to arise regarding the too-cozy relationship between the SEC and Wall Street. Recent reports claim that the SEC, when settling with big Wall Street firms, has a practice of granting waivers that preserve special privileges enjoyed by those firms, and protect them from serious consequences that would otherwise result from their wrongdoing. For […]

Credit Suisse Traders Face Criminal Charges for Mortgage Investment Fraud


Federal prosecutors plan to file criminal actions against four former traders who allegedly overvalued collateralized debt obligations (CDOs) sold by Credit Suisse in order to increase their commissions. The events occurred in 2008 and resulted in a $2.85 billion write down by Credit Suisse. Credit Suisse fired the traders and cooperated with authorities in their […]

The Number of Very Large Securities Arbitration Cases is on the Rise


The amount of dollars at stake in FINRA securities arbitrations has grown in recent years. Of the 7,000 claims currently pending, approximately 200 involve claims of $10 million or more. “The claims coming in now are substantially larger than what we had a few years ago,” Linda Fienberg, president of FINRA Dispute Resolution, was quoted […]

Wall Street’s Job Cuts Continue


Citigroup plans to cut 3,000 or more jobs, about 1 percent of employees, and BNP Paribas plans to cut about 1,400 jobs, or 7 percent of its employees, according to the New York Times (“Citi to Shed 1% of Its Workers; BNP Paribas Plans to Cut 7%”). The NY Times was told unofficially that one […]

New Book Reveals How Wall Street Firms are ‘Gaming’ the Capital Markets


Mike Mayo, a banking analyst who has worked at six Wall Street firms and has a reputation for independence from the banks he covers,recently published a book that reveals the fundamental unreliability of Wall Street research recommendations. When Mayo started out on Wall Street, he says he called them as he saw them. But when […]