Two weeks after FXCM was on death's door, and only a last minute vulture investment by Jefferies prevented the company from filing, FXCM has decided that it can't afford to blow up the bulk of its clients who traded the EURCHF on the wrong side, and as the company reported moments ago, will forgive their negative balances. In other words, another bailout for HFTs, and the rich and those habitually addicted to gambling in rigged markets, who just happen to be the lifeblood of companies like FXCM. From the press release:
For the better part of last year, the business community fretted over what the federal government would ultimately do to clarify or modernize the way it reviews takeovers of large Canadian companies by foreign state-owned enterprises or SOEs.
The rules ultimately emerged on Dec. 7, and they came with their own share of uncertainty. For example, what, pray tell, are the famed “exceptional circumstances” that might lead Ottawa to overrule the new ban on foreign SOE control investments in the oil sands?
By Mark Schmit, National Accounts Manager, National
Institute of Standards and Technology, Hollings Manufacturing Extension
The United States is an attractive destination for
foreign investment dollars for a variety of reasons, including a large economy
with diverse consumer markets, a skilled labor force (thanks to community
colleges with skill-development missions as well as research universities) and
a predictable and stable regulatory system. These reasons and more explain why
the U.S. has been the world’s largest recipient of foreign direct investment
(FDI) since 2006 according to an October 2013 White House report, Foreign Direct Investment in the U.S.
Working for NIST’s
Manufacturing Extension Partnership (MEP), I wasn’t
surprised to learn that the manufacturing industry is the largest beneficiary
of FDI in the United States, accounting for more than one-third of that
investment, according to data from the Commerce Department’s Bureau of Economic Analysis. “Made in America” is, after all, a de facto stamp of approval the
world over. We are a manufacturer’s dream!
And investments in
manufacturing have powerful multiplier effects on the U.S. economy. Every $1
spent in manufacturing generates $1.35 in additional economic activity. Since 1988, MEP has been committed to strengthening U.S. manufacturing and
individual manufacturers, contributing to the growth of well-paying jobs, the
development of dynamic manufacturing communities, and the enhancement of
American innovation and global competitiveness.
MEP delivers its
own high return on investment to taxpayers. For every dollar of federal
investment, MEP clients generate nearly $19 in new sales, which translates into
$2.5 billion annually. Last year, MEP centers served more than 30,000
manufacturing clients—a subset of which are foreign-owned. For example, since
2012, MEP centers worked on 900 projects with 322 manufacturers in the U.S.
that have ownership ties to other countries. These projects helped those
companies create and retain more than $700 million dollars in sales, save about
$77 million and create or retain more than 6,000 U.S. jobs.
The San Antonio MBDA Business Center’s specialty is helping
minority businesses (MBEs) find exporting opportunities in Latin America.
Aligning with White House initiatives such as Look South, the
center has assisted numerous MBEs develop international market entry strategies
that vary by sector, size, capabilities, targeted countries and regions
The MBDA Business Center’s San Antonio Global Pathways Initiative
has proven to be a conduit of global opportunities for domestic MBE clients. As
a result of this success, some clients have engaged in partnerships with
“One of the tasks associated
with the services we offer MBE’s preparing to export is to assist them with
business to business relationships,” said Orestes Hubbard, Director of the San
Antonio MBDA Business Center. “This service creates a two way opportunity for
our client that sometimes serves as a platform to bring foreign direct
investment into the U.S.”
BBM Staffing, LLC, a Mexican staffing services company, is an
example of the benefit of the business to business relationship concept. The
center has helped BBM Staffing, LLC expand their presence in Texas by helping them
gain access to markets and capital for their operations.
The federal government’s latest budget introduced a proposal to block “treaty shopping” that is worrying Alberta energy companies and the foreign private equity firms that fund them.
Todd Miller, a partner in the Toronto office of McMillan LLP who specializes in tax and international tax treaty matters, says a chill is taking hold already. “I’ve fielded a lot of calls from clients since the rule was announced, even from firms with established structures in place. They don’t know if they should head for the hills or cross their fingers it won’t come to pass.”
George Spritzer submits: Evergreen International Balanced Fund (EBI) is a closed-end balanced fund that invests in foreign- issued equities and debt securities. The fund currently has around 62% of managed assets in equities and the remainder in debt. The fund supplements its income by using an options strategy.
Dealbook's Susanne Craig has a fascinating piece this morning about Goldman Sachs redeeming itself since the financial crisis via charitable giving. The Goldman Sachs Foundation has helped the investment banking giant establish itself as one of the biggest corporate philanthropists, the report said.
Dealbook's Susanne Craig has a piece today about Goldman Sachs president/COO Gary Cohn calling him the "Prince Charles of Wall Street" because sources say he's growing restless waiting for Lloyd Blankfein to move aside so he can be CEO (a.k.a. the king).