Breaking News

Blockchain Gets a Wall Street Win; Banks prepare to settle with Brussels over forex cartel probe

First Read

 

Hits & Takes
By JLN Staff

Do you have a nomination for the Public Representatives for NFA’s Board of Directors? NFA is now taking nominations. ~JJL

CME Group has updated their most popular whitepaper with the latest data and an all-new section comparing Treasury futures to Treasury notes.~JJL

The United Church of Christ’s United Church Fund has modernized their exclusionary screening process. They have kept exclusions of Coal and Tar Sands Oil, Tobacco and Nuclear Weapons. They have added Firearms, Private Prison Operators, Human Rights and Environmental Impact as considerations. Here is a video about it. ~JJL

Cornerstone Research has put out a paper titled “SEC Enforcement Activity: Public Companies and Subsidiaries.Hat tip to Greg Mocek.~JJL

Did you want to see what Cboe‘s bitcoin futures contract specifications look like? Click HERE to see them.~JJL

JLN Options Newsletter from Friday is available HERE. ~JJL

Asia Pacific Financial News from John Lothian New – November 17, 2017 ~JJL

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The Industry Discusses Potential Changes to Dodd-Frank

JohnLothianNews.com

At the 33rd Annual FIA Futures and Options Expo in mid-October, John Lothian News spoke with a variety of industry participants about upcoming milestones and trends in financial markets.

This seventh and final video in the series addresses the recent efforts by the CFTC to take commentary from the industry regarding potential changes to Dodd-Frank. In this video, Julie Winkler, chief commercial officer with CME Group, Gary DeWaal, special counsel with Katten Muchin Rosenman, Ben Morof, chief compliance officer for Teza Capital Management, and Carl Gilmore, president of Integritas Financial Consulting, talk about some potential improvements.

Watch the video and read the rest here »

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EFRPs; Attempted Manipulation; Enforcement Priorities; Cryptocurrencies
Gary DeWaal – Bridging the Week
Last week, the Commodity Futures Trading Commission settled an enforcement action against a trading firm and its clearing member affiliate for illegitimate exchange for related position transactions purportedly entered into by the trading firm. Although it appears that the clearing firm solely reported the relevant transactions to the Chicago Mercantile Exchange in its capacity as a clearing member and played no role in the execution of the EFRPs, it was charged by the CFTC as a principal violator as well as with failure to supervise. New law? Separately, the CFTC used its broad authority to prosecute the alleged attempted manipulation of the prices of commodities to bring an enforcement action against a non-US based energy company for activities occurring in Asia that were intended to artificially impact the prices of certain non-US physical positions and over-the-counter US-cleared swaps the firm held.
jlne.ws/2B5qPuk

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Looking Ahead: Setting a Standard for the Future
Mark Wetjen – DTCC via Traders Magazine Online News
In his Harvard Business Review article, “The Financial Industry Needs to Start Planning for the Next 50 Years, Not the Next Five,” Anthemis CEO Nadeem Shaikh points to a widening gap between technology and organizational progress that, if left unaddressed, could have profound consequences for the entire industry. Recognizing that there always will be some practical limitations to such an approach for commercial organizations with many stakeholders, the advice is nonetheless instructive.
/goo.gl/HtwXos

**** Former CFTC Commissioner with normal hair in a thought provoking commentary.

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CME Group Extends Title Sponsorship of Tour Championship and Race to the CME Globe Through 2023
LPGA Communications
CME Group, the world’s leading and most diverse derivatives marketplace, has extended its title sponsorship of both the LPGA Tour’s CME Group Tour Championship and the season-long Race to the CME Globe through 2023, the Ladies Professional Golf Association (LPGA) announced on Friday.
/goo.gl/VqVu38

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Friday’s Top Three
Our top read stories on Friday were led by Business Insider’s Bitcoin trading shops are hiring Wall Streeters to build out the ‘next generation’ of cryptocurrency trading. Second went to another Bitcoin story from MarketWatch, The reasons Americans give for buying bitcoin prove they have no idea what they’re doing. Third went to Fortune’s piece There May Be a Smoking Gun in the Lawsuit that Accuses Banks of Rigging the Bond Market

 

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Lead Stories

Blockchain Gets a Wall Street Win: `We Know the Thing Works Now’
Matthew Leising – Bloomberg
The prospect of blockchain technology remaking financial services just moved a step closer to reality after banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. completed a successful six-month test in the $2.8 trillion equity swaps market.
/goo.gl/EFxzcJ

Banks prepare to settle with Brussels over forex cartel probe; Fines of billions of euros likely on 8 lenders for allegedly rigging $5.3tn market
Rochelle Toplensky in Brussels and Martin Arnold in London – FT
Eight of the world’s largest banks are set to discuss financial settlements with the European Commission, drawing a line under a four-year probe into allegations they formed a cartel to rig the $5.3tn global foreign exchange market.
/goo.gl/ChKU1i

China Looks to the Dumb Money for Its Financial Industry; A slowing economy suggests the sector is under strain and needs help.
Noah Smith – Bloomberg
China is opening its financial firms to more foreign ownership. The opportunity might seem tempting. But developed-world buyers should beware — it’s possible that it’s a trap.
/goo.gl/tqTq6J

Brexit: UK banks will lose ‘passporting rights’ after Britain leaves EU, Brussels says
‘Brexit means Brexit, everywhere,’ Michel Barnier says
Jon Stone Brussels – Independent
British banks will lose “passporting rights” to do business in the European Union after Brexit, the EU’s chief Brexit negotiator has said.
/goo.gl/ivDVSo

Nex Group to deepen cost-cutting as first-half profits drop; Company chooses Amsterdam as a base for its fixed income and repo trading business
Philip Stafford in London – FT
Nex Group has deepened its cost-cutting plan after heavy spending to refocus as a financial technology company for off-exchange markets crimped first-half earnings.
/goo.gl/n1VAYG

The Russian Banker Who Knew Too Much
Irina Reznik , Evgenia Pismennaya , and Gregory White – Bloomberg
Alexei Kulikov was charged with looting a small Moscow bank. But his trial turned into a window on the shadowy—and seemingly uncontrollable—world of money laundering in Putin’s Russia.
The pounding on the door begins at about 6 a.m. on a wintry Moscow day in March 2016. Insistent knocking at that hour usually means just one thing: police.
/goo.gl/wy3T7p

How to Spot a Market Top; The investing nirvana that has driven markets in recent years is under attack as central banks scale back stimulus
Ken Brown – WSJ
A da Vinci sells for $450 million, one bitcoin is worth $7,700 and 99-year-old Austria issues a 100-year bond at an interest rate of 2.1%. Clearly there is too much money in the world.
/goo.gl/DYAjXU

Top of the Market? That Could Be a Good Thing; Stocks and risky debt don’t have to be in a bubble to be dangerously expensive
Justin Lahart – WSJ
When is it going to end? And how?
In a year when asset prices have surged, those are questions that should be nagging at investors’ minds. Stocks, hardly cheap at 2017’s onset, have gotten progressively more expensive. Prices on junk bonds and emerging-market debt have risen sharply, driving yields even lower.
/goo.gl/FDrS5r

Court Case Shines Light on Murky Side of Hong Kong Stock Market
Benjamin Robertson and Adrian Leung – Bloomberg
A case winding its way through Hong Kong’s courts is shining a light on a murky corner of the city’s stock market that has drawn increased scrutiny from regulators.
/goo.gl/YqyT7P

How to Save the World’s Oldest Power Market
Jesper Starn – Bloomberg
Trading activity headed for lowest volume since 1999; More demand and market volatility could spur revival
The world’s oldest electricity market is on a road to nowhere, hobbled by a sweeping regulatory shake-up, moribund prices and shrinking demand.
/goo.gl/GaTxNx

AQR’s Asness Says Active Management, Not Passive, Is Too Big
Dani Burger and Nishant Kumar – Bloomberg
Passive products absorbed a record $510 billion through 3Q
Even so, AQR boss says market is moving in the right direction
Not every money manager is sounding the alarm on the passive-fund industry, which this year has absorbed a record half-trillion dollars.
/goo.gl/kvmeYX

Shell’s Muller quits as world’s biggest crude oil trader
Ron Bousso and Dmitry Zhdannikov – Reuters
The world’s most powerful crude oil trader, Royal Dutch Shell’s head of oil trading Mike Muller, has stepped down after 29 years with the company, an internal announcement reviewed by Reuters on Friday showed.
jlne.ws/2hGxVAC

****SD: Financial Times here.

Will futures trading in bitcoin be worth the risks?
Joe Cahill – Crain’s Chicago Business
CME Group became the world’s biggest derivatives exchange operator by helping investors manage a wide array of risks. A new product set to debut next month will test the company’s own risk-ma…
/goo.gl/j8h2CV

Bitcoin’s blockchain technology praised by Wall Street
Jonathon Trugman – NY Post
Last week was a big one for bitcoin. The cryptocurrency went a long way toward developing its Street cred with two major announcements.
/goo.gl/G6xNjy

Wall Street has a ton to be thankful for
Matt Egan and Danielle Wiener-Bronner – CNN
It’s been at least a decade since things were going this well for Wall Street.
/goo.gl/tnUY5Y

Preparing Britain’s Banks for a Disorderly Brexit; Amid fears of a “cliff-edge” split, this month’s banking stress tests offer a moment of truth.
The Editors – Bloomberg
Later this month, the Bank of England will publish the results of new stress tests on the U.K. banking system. With Britain facing the risk of a disorderly exit from the European Union, the exercise is even more important than usual.
/goo.gl/trtvLF

Exchanges, OTC and Clearing

LSE directors weigh publishing dossier on Rolet
John Gapper and Philip Stafford – Financial Times
Directors of the London Stock Exchange Group are weighing whether to publish a detailed dossier about the behaviour of Xavier Rolet, its chief executive, to defend themselves against accusations of wrongly forcing him to resign.
A five-person board committee is working on a document to be shared with investors outlining its qualms about Mr Rolet’s hard-driving management style, amid a corporate governance crisis at the exchange. Directors are debating how much specificity they should include in the “shareholder circular”.
jlne.ws/2hIiFDC

China regulator approves Shanghai copper options: state media
Reuters
The China Securities Regulatory Commission has approved an application from the Shanghai Futures Exchange (ShFE) to trade copper futures options, the official Shanghai Securities News reported on Sunday.
jlne.ws/2AWh68Y

The London Stock Exchange tests good governance; As Brexit approaches, a key City institution is wobbling
FT View
The chief executive answers to the board; the board in turn answers to the shareholders. This is the standard structure among publicly traded corporations for a reason. It makes the CEO accountable to the owners without requiring a large, inexpert, shifting mass of shareholders to exercise direct oversight. It leaves operational authority in the hands of one individual without providing anyone absolute power.
/goo.gl/J7cMiY

NEX Group increases cost savings target amid falling profits; Cost savings were raised from £25 million to £40 million after NEX Group reports a fall in profits in the first half of this year.
Hayley McDowell – The Trade
NEX Group has upped its targeted cost savings by £15 million after the financial technology company reported a fall in trading profits in the first half of this year.
/goo.gl/V8nsE4

Cboe FX Reports Record Market Share in October; Reports 14.5% market share, up from its previous record of 13.6% set in December 2013; Increased volume and activity from European and Asian trading sessions helps set new record; Cboe FX London matching engine now handling over 15% of total Cboe FX volume; Overall Cboe FX October average daily volume (ADV) was $32.0 billion
Cboe
November 16, 2017 – Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, today announced its foreign exchange (FX) market, Cboe FX, reported record market share of 14.5% in October, surpassing its previous record of 13.6% set in December 20131. Year-over-year, Cboe FX ADV increased 26.7% to $32.0 billion in October.
/goo.gl/B6hXE1

BSE warns trading members, investors against unsolicited messages; An official had said that Sebi would look into the complaints of some individuals allegedly circulating key financial details listed companies on social media groups before they were made public
Business Standard
Leading exchange BSE has cautioned traders and investors against unsolicited messages being circulated by unregistered entities to induce investment and sale of shares.
/goo.gl/ANFHhU

NSE SME platform to touch 100-mark tomorrow, to see 50 IPOs in 6 months; 99 companies are listed on the NSE’s Emerge platform with an aggregate market capitalisation of over Rs 7,600 crore
Business Standard
The number of listed firms on NSE’s small and medium-sized enterprises (SME) platform would touch 100-mark on Monday and further traction is expected in the next six months with 50 more initial public offerings on this segment, the top official said.
/goo.gl/TZFnoZ

T7 Release 6.0: Important information for production launch
Eurex
Deutsche Börse Group will launch T7 Release 6.0 of the T7 trading system on 4 December 2017.
/goo.gl/4qj9ut

India’s global exchanges await the ‘GIFT’ of rupee futures trade
TheHinduBusinessLine.com
The international financial services centre (IFSC) at the Gujarat International Finance Tec-City (GIFT) is evolving well, with the various exchanges in the zone progressing fast. There are, however, many regulatory issues that still need to be ironed out to help this nascent venture grow to its potential. The most important clearance awaited is with respect to allowing the trading of rupee derivatives.
/goo.gl/gVMEc7

Fintech

Intrinio partners Quodd to provide direct delivery of Nasdaq real-time data
Finextra
Intrinio, a fintech marketplace providing access to high-quality, low-cost financial data feeds, announced today its partnership with QUODD Financial Information Services, a supplier of ultra-low-latency data feeds, to provide Nasdaq (Nasdaq: NDAQ)’s real-time data directly to individuals and enterprise-level clients.
jlne.ws/2hIa1Vk

China Citic, Baidu launch direct bank in fintech push
Reuters Staff
China Citic Bank Corp (601998.SS) and search engine giant Baidu Inc (BIDU.O) launched on Saturday a direct banking joint venture, dubbed AiBank, to capitalize on China’s rapidly growing fintech sector.
/goo.gl/aBYNtH

Sinche Says Bitcoin Is Modern Version of Gold
Bloomberg Daybreak: Americas
Robert Sinche, global strategist at Amherst Pierpont Securities, discusses Bitcoin and political upheaval in Zimbabwe making the value of the cryptocurrency rise. He speaks with Bloomberg’s David Westin on “Bloomberg Daybreak:
/goo.gl/U8ZUcN

Hotshot Tech Founders Face a Dilemma: Lie Low or Live Large?; As ‘unicorn’ startups such as Snap and WeWork come under greater scrutiny, some chief executives opt for more modest homes, while others splurge
Katherine Clarke – WSJ
Alon Cohen and Adi Tatarko, founders of online home renovation and design platform Houzz, launched their company after running into difficulties remodeling their Palo Alto home in 2009.
/goo.gl/QDJMTu

Bitcoin uses a massive amount of energy — but there’s a plan to fix that
Mike Orcutt, MIT Technology Review – Via Business Insider
Bitcoin guzzles about as much electricity annually as all of Nigeria — but a solution may be at hand; Blockchains that use proof of stake would select validators based in part on the size of their respective monetary deposits — their stake. This would be massively more energy efficient; But we are probably stuck with energy-guzzling cryptocurrencies, at least for a while.
It’s a staple of any argument over whether Bitcoin has a long-term future: “Yeah, super-cool that it eliminates the need for a trusted authority when exchanging value. But do you realize how much energy it uses?”
/goo.gl/hYmqJX

Bitcoin’s White-Knuckle Ride Continues as It Hurtles Past $8,000
Natasha Doff and Adam Haigh – Bloomberg
Cryptocurrency’s value is up more than 700 percent this year; Three slumps of more than 25% have all given way to rallies
Bitcoin’s relentless and volatile rally shows no sign of abating, with the world’s largest cryptocurrency defying growing bubble fears to hit yet another milestone.
/goo.gl/zEUP56

PayPal to Introduce Customers to Robo Investing; Payments company says it will connect its apps to investing service Acorns Grow
PayPal Holdings is connecting its smartphone apps with those of Acorns Grow, a n automated savings and investment service.
Peter Rudegeair – WSJ
PayPal Holdings is making a move into robo-investing. The San Jose, Calif., payments company is connecting its website and smartphone apps with those of Acorns Grow Inc., a five-year-old automated savings and investment service, the two companies said Monday.
/goo.gl/yKwQyy

Politics

Confused by the Tax Bills? Be Glad You’re Not an Accountant
Ron Lieber – NY Times
For people even mildly inclined toward tax nerddom, the continuing discussions in the Senate and the debate that already took place in the House of Representatives are the best kind of spectator sport. But if you don’t find 529 accounts fascinating or wonder about beer taxation or why hedge fund managers pay so little in taxes, then you want to know the answer to only one question: What does it mean for me?
jlne.ws/2hIvhun

COP23: UN summit shows how Donald Trump is doing more damage to world’s climate than we ever realised
Chloe Farand Bonn – Independent
As the UN climate talks drew to a close in Bonn on Friday, delegates will look back on these talks as the moment the US tried to present Donald Trump’s vision for environmental action – and was met with outrage and derision.
/goo.gl/Y3kgeh

A Tax Provision That Would Exempt Mutual-Fund Firms but Not Individuals; Mutual funds now exempted from proposal changing tax rules for some share sales
Laura Saunders – WSJ
The Senate Finance Committee has decided that a little-known provision that would change tax rules on certain securities sales shouldn’t apply to mutual-fund firms. Even so, it would still apply to individual investors.
/goo.gl/6f74D4

Soros Says Hungarian Campaign Against Him Is Based on Lies
Zoltan Simon – Bloomberg
Hungary has asked spy agency to map Soros-linked NGO activity; Prime Minister Orban targeting Soros ahead of 2018 election
George Soros, the billionaire investor, condemned the political campaign waged against him in his native Hungary after the cabinet ordered spy agencies to investigate his philanthropic network.
/goo.gl/JbfBVR

Should the Upper Middle Class Take the Biggest Tax Hit?.
Ben Steverman – Bloomberg
Humans learn the concept of fairness at a very young age. After all, it doesn’t take long for a child to start whining about a sibling who gets an extra serving of ice cream. As the Republican-controlled Congress tries to push through tax reform this year, one group of Americans may similarly question why it’s coming up a scoop short.
/goo.gl/6wT866

Regulation

Regulators must focus on risks, not specific firms: U.S. Treasury
Pete Schroeder – Reuters
The U.S. Treasury Department said on Friday regulators should closely monitor risk across the whole financial system, rather than singling out large non-bank financial firms for tougher scrutiny.
jlne.ws/2hHQ4y0

Greece probes central bank head over alleged leak; Yannis Stournaras denies any wrongdoing over disclosure of Piraeus Bank report
Kerin Hope in Athens – FT
Greece’s central bank governor is under investigation by an anti-corruption prosecutor over the alleged leaking of an auditor’s report on Piraeus Bank, a troubled Greek lender accused of violating capital controls imposed at the height of the country’s financial crisis.
/goo.gl/fw9XCa

Federal Court Sanctions Gerard Suite and STA Opus LLC for Commodity Pool Fraud and Frank Collins for Misappropriation of Customer Funds
CFTC
The Commodity Futures Trading Commission (CFTC) obtained $1,127,855 in restitution for defrauded pool participants and $3,383,565 in civil monetary penalties in a federal court Default Judgment Order against Defendants Gerard Suite (who is known by numerous aliases, including Rawle Gerard Suite, Jerry Suite, and Jerry Snead) and his company, STA Opus NR LLC (STA Opus), as well as a Consent Order against Frank Collins for knowingly or recklessly misappropriating at least $50,000 of STA Opus customers’ funds.
jlne.ws/2hHLDDE

Wall Street Wants to Kill the Agency Protecting Americans From Financial Scams
The Intercept
jlne.ws/2zSkQuU

ASIC accepts enforceable undertakings from ANZ and NAB to address conduct relating to BBSW
ASIC
Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) have today entered into enforceable undertakings (EUs) with ASIC in relation to each bank’s bank bill trading business and their participation in the setting of the Bank Bill Swap Rate (BBSW), a key Australian benchmark and reference interest rate.
/goo.gl/ugxFCK

ESMA issues clarification on the rotation periods of CRA’s analysts
ESMA
The European Securities and Markets Authority (ESMA) has published an update to its Questions and Answers (Q&A) on the application of the CRA Regulation, adding a new section on Organisational Requirements.
/goo.gl/hwKHL9

ESMA updates its EMIR Q&A
ESMA
The European Securities and Markets Authority (ESMA) has issued today an update of its Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR).
/goo.gl/F5PoE4

Investing and Trading

How China’s Acquisitive HNA Group Fell From Favor; CEO Adam Tan drove the global ascent of the conglomerate, which is now drawing the scrutiny of regulators and Wall Street as its debt-fueled expansion hits a wall
Anjani Trivedi and Julie Steinberg – WSJ
In the summer of 2016, Adam Tan, chief executive of China’s HNA Group Co., told an adviser he thought the conglomerate was growing too quickly. After an acquisition tear that vaulted HNA into the top tier of global buyers, it needed to digest its new holdings, he said, according to a person familiar with the conversation.
/goo.gl/6iwLv8

When a 10% Gain Makes You Feel Like a Loser
Jason Zweig – WSJ
Big gains can be hard to find in the financial markets. Nowadays, though, they seem to be everywhere — and that could change how you feel about taking risks.
jlne.ws/2hIfETM

Goldman’s Top 2018 Trades: It’s All About Emerging Markets
Chelsey Dulaney – WSJ
Forget the U.S. The hottest trades can be found in emerging markets like India, Chile and Peru.
That’s the takeaway from Goldman Sachs’ list of top trade recommendations for 2018. Of the seven trading ideas on the list, released this week, just one is U.S-focused. The other six are centered around economic growth in Asia, rebounding metals prices, and strength in European assets.
jlne.ws/2hI65Uy

Bunge scraps deal for controlling stake in Grupo Minsa
Reuters Staff
U.S. agricultural commodities trader Bunge Ltd (BG.N) said Friday it has terminated a deal for a controlling stake in Mexican corn miller Grupo Minsa SAB de CV (MINSAB.MX), an acquisition that would have made Bunge the top grain miller in Mexico.
/goo.gl/ZC5fJS

Lawsuit funders raise £10bn to pursue UK cases; Third-party litigation backers operating in the UK see up to 300% return on investment
Barney Thompson in London – FT
Global businesses operating in the UK that help fund law suits and take a cut of any damages have raised more than £10bn, with hedge funds, banks and other large investors all attracted by the potential for big returns.
/goo.gl/AasAeK

A Risky Corner of the Market With Room to Run; Money has flooded of late into so-called leveraged loans, which are arranged by banks often to help private-equity firms leverage up companies they buy
Paul J. Davies – WSJ
The market for packaging risky loans is running hot-as-hell. It may not be a bubble yet, but troubling characteristics make it an area to watch.
/goo.gl/9S9bwv

Morgan Stanley’s global chief insists world economy more stable than many imagine; James Gorman shares his views on the opening up in China, Trump and Macron, and wonders why so much worry has surrounded bitcoin: “It’s just another form of stored value, and not a very big one.”
Alun John – South China Morning Post
The world economy is rather more stable than many imagine, according to James Gorman, chief executive and chairman of Morgan Stanley.
/goo.gl/Z16tm5

This Investor Wouldn’t Buy a U.K. Asset Manager at Any Price
Julie Edde – Bloomberg
La Banque Postale AM boss flags loss of passporting, synergies; Roy says he’s exploring mergers, just not with U.K. firms
Brexit has so damaged the allure of U.K. asset managers as takeover targets that one French investor said he wouldn’t be a buyer at any price.
/goo.gl/iZgMCx

Robot army is transforming the global workplace; Range of machines has grown as they learn how to carry out tasks from human masters
Michael Pooler, Industry Reporter – FT
Armies of robots are spreading throughout factories and warehouses around the world, as the accelerating pace of automation transforms a widening range of industries.
/goo.gl/ybFxMn

Institutions

Why Sales Quotas Ruined Wells Fargo; The modern financial economy has no room for honesty.
Matt Levine – Bloomberg
Last year Wells Fargo & Co. got in a lot of trouble because its employees opened millions of fake accounts for customers to meet sales quotas. That was bad and illegal. Since then there have been a lot of stories about how terrible things were at Wells Fargo, though, and what is striking about them is that all of the emotional drama — all of the gut-wrenching, obviously terrible moments — center around the legal things that the bankers did to meet sales quotas. Nobody really gets that emotional about a fake bank account.
/goo.gl/rsKVSN

Wells Fargo consumer lending head axed after disparaging regulators: source
Dan Freed, Patrick Rucker – Reuters
Wells Fargo & Co announced on Friday it fired its head of consumer lending, a move that people familiar with the matter said was because he disparaged a bank regulator to a fired employee.
/goo.gl/iq7Fie

Goldman wins dismissal of lawsuit in U.S. over Malaysia ties
Reuters Staff
Goldman Sachs Group Inc has won the dismissal of a $510 million lawsuit in New York by a private equity firm that accused the Wall Street bank of shortchanging it in a merger to curry favor with Malaysia’s prime minister.
/goo.gl/zPpKLz

Hedge fund bet on Glencore backfires with $100 million loss
Maiya Keidan, Barbara Lewis – Reutetrs
London hedge fund giant Lansdowne Partners lost $100 million from a long-term bet against Glencore this year after the spectacular recovery of the miner took some by surprise. For Lansdowne, that bet had generated returns in 2014 and 2015, when Glencore more than other major miners was dragged down by falling commodity prices and concerns about its level of debt. But so far this year, Glencore’s shares have risen 29 percent, from 278 to 354 pence, making it the top-performing global miner.
/goo.gl/29CuiJ

UK bank scandals are making entrepreneurs reluctant borrowers; Low level of trust should be a higher priority for politicians and lenders
Jonathan Ford – FT
One of the curious things about Britain is how much better the country is at creating new companies than nurturing them once they’ve been started.
/goo.gl/v6C73m

Morgan Stanley nixes protocol pact, blocking brokers’ exits
John Aidan Byrne – NY Post
Morgan Stanley has locked the gates to keep its high-priced wealth management brokers from fleeing.
/goo.gl/zuzRqC

Regions

China Clampdown Signals ‘New Era’ for $15 Trillion in Funds
Bloomberg News
China announced new asset-management product rules on Friday; Once adopted, the regulations will end implicit guarantees
China’s latest plan to rein in its shadow banking system is winning early plaudits from analysts, despite concern that it could fuel short-term market turbulence.
/goo.gl/NbMZAG

Brexit

Brexit and the City: taking London’s financial pulse
Andrew MacAskill – Reuters
Will Britain’s decision to leave the European Union in 2019 damage one of its most successful industries?
/goo.gl/LY19Pd

UK commits billions to ‘industries of future’ to ward off Brexit shocks
Reuters Staff
Prime Minister Theresa May on Monday announced 4 billion pounds of spending on research and development and regional growth strategies, setting out plans to help the economy grow after Brexit.
/goo.gl/n5FEK5

Barnier Raises Irish Obstacle Just as U.K. Moves on Brexit Bill
Nikos Chrysoloras , Viktoria Dendrinou , and Ian Wishart – Bloomberg
Up to Britain to find solution on Irish border, Barnier says; U.K.’s May meets key ministers on Brexit on Monday afternoon
European Union chief Brexit negotiator Michel Barnier told the U.K. to come up with a solution for the Irish border, making clear the financial settlement isn’t the only obstacle in talks just as Britain prepares to improve its offer.
/goo.gl/gaXAxT

Brexit Pushes EU Bank Regulator Into Arms of Continental Suitors
John Glover- Bloomberg
Decision on moving two agencies to be made in Brussels vote; EBA relocation unlikely to affect banks’ choice of destination
The European Banking Authority gets a new home on Monday, as Brexit forces the regulator and its 180 employees to abandon their high-rise digs in London’s Canary Wharf financial district and relocate to the continent.
/goo.gl/MM1RtQ

Amsterdam has won the trust of another London financial firm preparing for life after Brexit
John Detrixhe – Quartz
Amsterdam won another prize from London, as financial companies in the British capital plan for life after the EU: Michael Spencer, CEO of NEX Group and a London financial grandee, said the company has chosen Amsterdam as its base on the continent. The hub provides a hedge for the company, should Brexit negotiators fail to secure a deal that shelters the UK’s financial sector.
/goo.gl/487dkc

Miscellaneous

Too Many Turkeys Means a Cheaper Thanksgiving
Megan Durisin – Bloomberg
There’s plenty of turkey for second helpings this Thanksgiving.
/goo.gl/h8Gimf

High-tech tracker to battle ancient wheat plague
Thin Lei Win – BizCommunity.com
The tracking technology used to halt the deadly Ebola and Zika viruses could now be turned against wheat rust as scientists try new ways to stop the fungus devastating world grain crops. Wheat rusts are nothing new – ancient Romans honoured the rust god Robigus, hoping to protect their fields – but they are adapting to outwit man and pose an ever-growing global risk.
/goo.gl/BCGB67

White House economists warn of $500bn cost of US opioid crisis; Report estimates public health emergency’s economic toll at almost 3% of GDP in 2015
Sam Fleming in Washington – FT
America’s opioid scourge is exacting an economic toll in the hundreds of billions of dollars a year, a report from Donald Trump’s Council of Economic Advisers said, weeks after the president declared the situation a public health emergency.
/goo.gl/RGyJMA

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About Author

Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.