The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Who breaks the news and how >> theflyonthewalldotcom

Merrill Lynch & Co.

Image via Wikipedia

While retail banks’ CDS in the US have been trading much the same as the European banks today, their troubles are of a different kind all together. BofA, Citi and CapOne CDS volumes were up by 20% last October itself and though public data is hard to get, CDS volumes would have been at quite a high seeing as US banks have been performing way below par and may continue to do so.  An unfortunate side effect of that probably and that of the pressure from the SEC; nonetheless a US Appeals court also overturned a Bank action against Fly on the Wall dot com ( Check your Reuters Insider bulletin on the hour) The US Appeals court ruled that analysts writing up on a bank stock may not give any rights to the banks to control who breaks the news and how In April 2010 in a first ruling courts had stopped the investor service from reposting banks’ analyst recommendations as requested by plaintiffs Morgan Stanley, Barclays and Merrill Lynch

To back up, this is a court case that involves three banks (Barclays, Merrill Lynch, and Morgan Stanley) teaming up to stomp out, a newswire service. (BI)

The banks had argued that publishing headlines about a bank’s upgrade or downgrade of a company was tantamount to stealing intellectual property.(Sorkin’s Dealbook)

Our coverage on Greece also broke out very well as Monday opened with a surprise upping of the European Stability Fund corpus to Eur 740 bln or $ 1 Tln. One of the options immediately before the ECB is to warehouse the GReek debt after purchasing it from the banks leaving town  and sell it later o private investors as a longer term offering. I do believe that private investors readiness to buy such debt will only come when they are fairly sure of Greece surviving so that would be avery positive action for banks globally if it closes and also as the Euro can give the Dollar a breather from all that scary appreciation and start rising back on the back of such good liquidity coming in


German Logo of the ECB.

Image via Wikipedia

Enhanced by Zemanta


%d bloggers like this: