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Saturday, January 12

13th Jan - Weekender: Markets, Trading & Players



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BANKS
Bank liquidityThe Economist
Global regulators soften their stance on liquidity

Betrayed by BaselEconomix / NYT
Simon Johnson: Faced with renewed pressure from the international banking lobby, these officials caved in, as they did so many times in the period leading to the crisis of 2007-8. As a result, our financial system took a major step toward becoming more dangerous.

Financial Regulation: The Year AheadThe Source / WSJ

Meaningful banking reform and why it is so unlikelyvoxeu.org
Over the last few decades, banking regulators and supervisors have failed to do their job. This column argues that a failure of political will enabled stakeholders to pursue bad practices, and suggests a roadmap for reform. Enforcing a reform agenda marked by simplicity is plausible, and would avoid much of the collateral damage that comes from many hundreds of pages of complex, costly and misguided mandates that typically act as substitutes for credible reform. Overcoming the challenge of political will, however, remains a challenge.

The great banking swindle of 2013MarketWatch
Commentary: Weak capital rules expose financial system to panic

Breaking Up Banks Is Easy When They Aren’t FailingBB

Secrets and Lies of the BailoutRolling Stone
Matt Taibbi: The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come

Morgan Stanley retreats from investment banking and tradingThe Daily Beast
The white-shoe firm is cutting back on bankers and traders, and doubling down on the old-fashioned brokerage business.

Secrets and Lies of the Bailout: One Broker's StoryThe Rolling Stone

Bad Risk Management – Not Secret Bailouts – Killed These ClientsThe Big Picture

Buffett Says Banks Cleared of Excess Risk Pose No Threat to U.S.BB

FUNDS
Alternative Investing: The Little Blog of Start-Up Hedge FundsCFA Institute
10 lessons I’ve learned from investing in small and start-up hedge funds.

The Move to Managed Account Platformsall about alpha

London Quantitative Hedge Funds Report Second Year of LossesBB

Crispin Odey Bets on Banks as Hedge Fund Yields 24%BB

GOLDMAN’S PROP
Goldman’s small internal hedge fundFelix Salmon / Reuters

Prop Trading, the Bogeyman That Didn’t Take Down Wall StreetBB

Let’s talk about Goldman’s prop-tradingalphaville / FT

Secret Goldman Team Sidesteps Volcker After Blankfein VowBB


MARKETS & TRADING
Who Owns the U.S. Equity Market?Global Macro Monitor

Key S&P 500 Earnings Reports Next Two WeeksBespoke

The wonders of the FX universealphaville / FT

Sterling Is Left ExposedWSJ
It is ironic for a country which yearns for a more autonomous relationship with Europe that the U.K.'s currency has been hostage to events on the Continent. But with the euro-zone crisis calming down (somewhat) domestic factors are coming to the fore again, and that's bad news for sterling, writes William Kemble-Diaz.

Entering Into 2013 - Part 3The Short Side of the Long
So far I've covered my view on the US equity market, and highlighted scepticism towards the continuation of the bull market and the economic expansion. Let us now turn our attention to other asset classes and specifically focus on Precious Metals

FX – Old and NewBruce Krasting
In the late 80′s I was in touch with a few dozen US multinationals. The issue was foreign exchange risk, and what to do about it. What triggered my role were the big losses the companies kept taking.

On diminishing capital intensityalphaville / FT
The commonly held belief that companies’ capital investing ratios have been falling, whilst hoarded cash pools have been going up, is inaccurate…In short, capital investment incentives seem to be skewed in many corporate sectors. By which we mean corporates in many cases are being incentivised to invest less, simply to support underlying capital goods prices.

Examining Benjamin Graham’s Record: Skill Or Luck?greenbackd
Two recent articles, Was Benjamin Graham Skillful or Lucky? (WSJ), and Ben Graham’s 60-Year-Old Strategy Still Winning Big (Forbes), have thrown the spotlight back on Benjamin Graham’s investment strategy and his record. In the context of Michael Mauboussin’s new book The Success Equation, Jason Zweig asks in his WSJ Total Return column whether Graham was lucky or skillful,

How to Find a Fund Manager Who Can Beat the MarketWSJ
Think picking stocks is hard? Try picking a good mutual-fund manager.

The Bookish Banker: An Interview with The Epicurean Dealmakervol1 Brooklyn

Understanding risk aversion in financial marketsEconbrowser

ETF Managers Don't Buy and Sell Securities. Usually.WSJ
Here are cases in which they must trade like other fund chiefs

Ten Most Significant Operational Risks of 2012Advanced Trading
Andrew Waxman takes a look at the most significant operational risks, including the Facebook IPO and Knight Capital Fiasco, that occurred on Wall Street in 2012.

The Reason We Lose at Games: Implications for Financial MarketsEconomist’s View