Europe Situation May Turn Disorderly, Roubini Says

Barclays fined for attempts to manipulate Libor rates

Barclays has been fined £290m ($450m) for trying to manipulate a key bank interest rate which influences the cost of loans and mortgages.

Its traders lied to make the bank look more secure during the financial crisis and, sometimes - working with traders at other banks - to make a profit.

http://www.bbc.co.uk/news/business-18612279

http://www.zerohedge.com/news/shocking-details-barclays-epic-lie-bor-fraud-duuuude%E2%80%A6whats-ur-guys-345-3m-fix%E2%80%A6tell-him-get-it

Philip A. Falcone and Harbinger Charged with Securities Fraud

Washington, D.C., June 27, 2012 — The Securities and Exchange Commission today filed fraud charges against New York-based hedge fund adviser Philip A. Falcone and his advisory firm, Harbinger Capital Partners LLC for illicit conduct that included misappropriation of client assets, market manipulation, and betraying clients. The SEC also charged Peter A. Jenson, Harbinger’s former Chief Operating Officer, for aiding and abetting the misappropriation scheme. Additionally, the SEC reached a settlement with Harbinger for unlawful trading.
http://sec.gov/news/press/2012/2012-122.htm

Additional Materials

• SEC Complaint: Harbinger Capital Partners LLC; Philip A. Falcone; and Peter A. Jenson
• SEC Complaint: Philip A. Falcone, Harbinger Capital Partners Offshore Manager, L.L.C., and Harbinger Capital Partners Special Situations GP, L.L.C.
• SEC Complaint: Harbert Management Corporation, HMC-New York, Inc. and HMC Investors, LLC
• SEC Administrative Proceeding

EES: Europe Going back to the Middle Ages

A recent article by Spiegel explains that leaders of countries and businesses in Europe are secretly planning for a complete collapse of the EU. 

http://seekingalpha.com/article/687551-europe-going-back-to-the-middle-ages

XGD Greek Drachma on Bloomberg Terminal getting ready to trade

ORIGINAL POST, SEE UPDATES BELOW: We're looking into this, but we can confirm: There's something called the 'Greek Drachma (post Euro)' that's shown up on the Bloomberg terminal.

We've seen tons of tweets and screengrabs of the page.

There's nothing really behind the ticker. No quotes or anything. It's just there.

Read more: http://www.businessinsider.com/xgd-greek-drachma-bloomberg-2012-6#ixzz1z0eJoq2a


@russian_market / It's really weird to see Drachma back on Bloomberg $XGD

Traders around the world have been staring at their Bloomberg screens, hardly believing their eyes. The electronic information platform has been showing details for possible Greek Drachma trading.

The Bloomberg helpdesk described it as "an internal function which is set up to test."

The news comes in the wake of the heated discussions over the future of the euro zone and the membership of Greece. While many experts insist that Greece should leave the Euro and default, some suggest it should remain the union and introduce a parallel currency to the Euro to repay the country’s debt.

http://rt.com/business/news/greek-drachma-bloomberg-trades-769/

Germany: No to Eurobonds, Yes to Financial Transaction Tax

Angela Merkel has firmly rejected the use of eurobonds ahead of a crucial summit in Brussels this week, ruling out jointly guaranteed eurozone debt for "as long as I live".

http://www.telegraph.co.uk/finance/financialcrisis/9357592/Angela-Merkel-rules-out-eurobonds-for-as-long-as-I-live.html

Ms Merkel told the German Parliament on Wednesday ahead of a European Union summit there is no "magic formula" that will make the crisis immediately go away.

She insists that Europe must tackle its problems at the roots - which she says are a lack of competitiveness and high debts - in a step-by-step process. Ms Merkel says any other approach is condemned to failure. http://www.telegraph.co.uk/finance/financialcrisis/9359138/Angela-Merkel-No-quick-and-easy-solution-to-debt-crisis.html

http://www.guardian.co.uk/business/2012/jun/27/eurozone-crisis-live-merkel-address-german-parliament?newsfeed=true 12.45pm: Germany is going to ask the EU commission to introduce a financial transaction tax.


http://en.wikipedia.org/wiki/European_Union_financial_transaction_tax The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU. It would cover 85% of the transactions between financial institutions (banks, investment firms, insurance companies, pension funds, hedge funds and others), but not affect citizens and businesses. House mortgages, bank loans to small and medium enterprises, contributions to insurance contracts, as well as spot currency exchange transactions and the raising of capital by enterprises or public bodies through the issuance of bonds and shares on the primary market would not be taxed, with the exception of trading bonds on secondary markets.^[10]

Following the "R plus I" (residence plus issuance) solution an institution would pay the tax rate appropriate to the country of its residence, regardless of the location of the actual trade.^[11] In other words, the tax would cover all transactions that involve European firms, no matter whether these transactions take place within the EU or elsewhere in the world. If acting on behalf of a client, e.g., when acting as a broker, it would be able to pass on the tax to the client. Hence, it would be impossible for say French or German banks to avoid the tax by moving their transactions offshore.^[12]

France's Historic Geographic Challenge

EES: Currency ETFs: An alternative to trade Spot FX

http://seekingalpha.com/article/683181-currency-etfs-and-etns-a-stock-investor-s-alternative-to-trade-the-euro-crisis While the European crisis is filling the news, many stock investors do not have access to Forex markets. Many brokers such as TD Ameritrade (AMTD) now offer Forex, but some still do not have access to trade spot Forex directly without opening an additional brokerage account. Even so, a direct Euro short may not be the only way to profit from the Eurozone crisis.

Germans resist Eurozone debt fund

Billionaire investor George Soros called on Europe to start a fund to buy Italian and Spanish bonds, warning that a failure by leaders meeting this week to produce drastic measures could spell the demise of the currency.
http://www.bloomberg.com/news/2012-06-24/soros-pushes-eu-to-start-joint-debt-fund-or-risk-summit-fiasco.html

Chancellor Angela Merkel hardened her resistance to euro-area debt sharing to resolve the region’s financial crisis, setting Germany on a collision course with its allies at a summit of European leaders this week.


http://www.bloomberg.com/news/2012-06-25/merkel-rejects-joint-euro-bonds-bills-with-all-eyes-on-germany.html

(Reuters) - The German government and opposition reached a deal on Thursday on growth that will allow parliament to approve the euro zone's permanent bailout scheme next week, but Germany's top court may delay the rescue fund's start date.
http://www.reuters.com/article/2012/06/21/us-eurozone-germany-esm-idUSBRE85K0LU20120621

Operation Twist Extended by Fed

The Federal Reserve will expand its program to replace short-term bonds with longer-term debt by $267 billion through the end of the year in a bid to reduce unemployment and protect the expansion.

The continuation of Operation Twist “should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative,” the Federal Open Market Committee said today in a statement at the conclusion of a two-day meeting in Washington.

http://www.bloomberg.com/news/2012-06-20/fed-expands-operation-twist-by-267-billion-through-year-end.html

What is "Operation Twist" :

Operation Twist (2011)

The Federal Open Market Committee concluded its September 21, 2011 Meeting at about 2:15PM EDT by announcing the implementation of Operation Twist. This is a plan to purchase $400 billion of bonds with maturities of 6 to 30 years and to sell bonds with maturities less than 3 years, thereby extending the average maturity of the Fed's own portfolio.^[4] This is an attempt to do what Quantitative Easing (QE) tries to do, without printing more money and without expanding the Fed's balance sheet, therefore hopefully avoiding the inflationary pressure associated with QE.^[5] This announcement brought a bout of risk aversion in the equity markets and strengthened the US Dollar, whereas QE I had weakened the USD and supported the equity markets.

http://en.wikipedia.org/wiki/History_of_Federal_Open_Market_Committee_actions

Jamie Dimon testifies

http://www.businessinsider.com/jamie-dimon-house-financial-services-committee-testimony-2012-6

Live blog: WSJ http://blogs.wsj.com/deals/2012/06/19/live-blog-jamie-dimon-goes-back-to-congress/

http://www.marketwatch.com/story/day-two-for-jp-morgans-dimon-on-the-hill-2012-06-19?link=MW_latest_news

Watch live on EFB http://eliteeservices.blogspot.com/p/bloomberg-tv.html

EES: Is it time to sell the Euro?

While markets have relief that the mainstream, pro-bailout party has won the Greek elections, the European crisis is far from over.

http://seekingalpha.com/article/666471-is-it-time-to-sell-the-euro

Oanda closes for Greek election

The street corners are stocked with waiting riot police. One of the few global currency trading platforms which operates at the weekend, Oanda, is closing today for the first time in its history.
http://www.telegraph.co.uk/news/worldnews/europe/greece/9336240/Greek-election-despatch-no-panic-no-fear-no-hope.html

Pro-bailout party wins Greek election

WASHINGTON (AP) -- A slim victory for the main conservative party in an election in Greece should relax fears that a country will stop using the euro for the first time and possibly unleash global financial turmoil.

But when it comes to Greek politics - and European economic policy - it's never that easy. So the bumpy ride for financial markets isn't over yet.

http://hosted.ap.org/dynamic/stories/U/US_GREECE_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-06-17-21-46-56

Although the Greek poll result eased imminent fears of a Greek exit from the euro, concerns over Spain's sovereign debt problems prompted a rise in the country's 10-year bond yields, which spiked over 7pc. Italy's 10-year yield breached 6pc.

Political parties, led by New Democracy leader, Antonis Samaras, began forging a government on Monday. David Cameron, who is in Mexico for the G20 summit, said the outcome of the Greek election looked clear, but warned a delay in forming a government "could be very dangerous".

"The outcome of the Greek election looks clear in terms of a commitment to stay in the eurozone and to accept the terms of the memorandum," the prime minister said. "But I think those parties that want that to happen can't afford to delay and position themselves. If you are a Greek political party and want to stay in the eurozone and accept the consequences that follow you have got to get on with it and help form a government. A delay could be very dangerous."

http://www.telegraph.co.uk/finance/financialcrisis/9338227/Debt-crisis-Market-rally-falters-following-Greek-vote-as-concerns-over-Spain-persist.html

Krugman, and then what? http://krugman.blogs.nytimes.com/2012/06/17/and-then-what/ 

Bank of England Osborne unveils 140 Billion Pound plan

“We are not powerless in the face of the euro-zone debt storm,” Mr Osborne said. “We can deploy new firepower to defend our economy from the crisis on our doorstep. Funding for lending to the family aspiring to own their home and the business that wants to expand…The Government - with the help of the Bank of England – will not stand on the sidelines and do nothing as the storm gathers.”


http://www.telegraph.co.uk/finance/financialcrisis/9332570/Osborne-unveils-140bn-scheme-to-kick-start-stagnant-economy.html