Banks behaving badly (again!)
Barclays, a giant British bank is in hot waters over revelations that its bankers colluded with its traders in gaming the bank’s rate submissions in setting the LIBOR rate. The sordid e-mail exchanges from traders included such gems as ““WE WANT TOMORROW’S FIX TO BE 4.07 MINIMUM, 4.07….NOTHING LESS…” and Barclays submission turned out to be… 4.07. The question now is which other banks attempted to rig the benchmark rate in the past.
Jeremy Grantham offers Investment Advice
In his quarterly newsletter published last year, GMO’s Jeremy Grantham channeled Polonius, a character in Hamlet and offered 10 tips for investors to survive and thrive in all market conditions.
Splurging on a vacation
This column makes a good case for splurging on vacations. It includes this marvelous quote: “Experiences are like good relatives that stay for a while and then leave. Objects are like relatives who move in and stay past their welcome.”
The Strange Case of Wimbledon Debentures
Why would investors shell out hundreds of thousands of dollars to purchase debentures that entitle holders to a seat in Centre Court or Number One court in Wimbledon? The answer may probably be scarcity value and the option value of subscribing to the next debenture issue.
Credit risk in ETNs
Exchange-Traded Notes (ETNs) have certain advantages over traditional Exchange-Traded Funds (ETFs) but here is a good reminder that ETNs carry credit risk that investors are not compensated for.
Debunking the myths about the Financial Crisis
Fortune magazine’s Allan Sloan attempts to the myths that have sprung up around the Financial Crisis. One widespread myth about the crisis is that the US Government bailed out the owners of the banks, which is patently untrue when one considers that shareholders in financial institutions such as AIG, Fannie Mae and Freddie Mac have been essentially wiped out. In a follow-up article, Mr. Sloan addresses criticism that the private sector should have cleaned up its own mess.
