By Simon Johnson
Experienced Wall Street executives and traders concede, in private, that Bank of America is not well run and that Citigroup has long been a recipe for disaster. But they always insist that attempts to re-regulate Wall Street are misguided because risk-management has become more sophisticated – everyone, in this view, has become more like Jamie Dimon, head of JP Morgan Chase, with his legendary attention to detail and concern about quantifying the downside.
Germany recently made big news by announcing its plan to bring home part of its massive gold reserves. By retrieving 300 tons from New York and all 374 tons from Paris, 19% of its holdings – $36 billion worth – will be repatriated. By 2020, Deutsche Bundesbank expects to have 50% of its gold reserves stored in its Frankfurt vaults.
Today’s AM fix was USD 1,688.00, EUR 1,269.08, and GBP 1063.58 per ounce.Friday’s AM fix was USD 1,690.00, EUR 1,265.82and GBP 1,060.49 per ounce. Gold was up 1.26% for the week and silver was up 4.60%. Gold fell $2.80 or 0.17% in New York on Friday and closed at $1,684.10/oz. Silver surged to a high of $32.11 before it also edged off, but it still finished with a gain of 0.47%.
NEW YORK (Reuters) - JPMorgan Chase & Co. has expanded into the physical commodity markets aggressively over the past five years, first with the purchase of Bear Stearns in 2008 and most significantly with a $1.7 billion deal to buy RBS Sempra's global oil and metals business in 2010.
Investment banking giant Goldman Sachs beat Wall Street analysts' earnings estimates. The bank's fourth quarter EPS came in at $4.60 compared with $5.60 in the fourth quarter for 2012. On average, analysts polled by Bloomberg expected the bank to post adjusted earnings per share of $4.18. Revenue for Q4 was $8.78 billion.
By John M. Mason: Cash assets in the United States banking system rose by $874 billion in the past 52 weeks. This according to the Federal Reserve release H.8, Assets and Liabilities of Commercial Banks in the United States.Reserve balances at Federal Reserve Banks increased by $881 billion last 52 weeks. This is according to the Federal Reserve release H.4.1, Factors Affecting Reserve Balances.
By John M. Mason: Over the past year, the Federal Reserve added $991.2 billion to its security holdings.On August 1, 2007, the Federal Reserve held total assets of $907.5 billion.On October 30, 2013, the Federal Reserve held total assets of $3,886 billion.
By John M. Mason: I have not looked at the commercial banking statistics published by the Federal Reserve (the Fed's H.8 release) for at least two months, and one thing stood out in the numbers.Over the past 52 weeks, the assets of the United States banking system rose by $725.0 billion. Cash assets in the banking system rose by about $590.0 billion, or more than 81 percent of the increase in banking assets were in cash balances.
Editor’s Note: H. Rodgin Cohen is a partner and senior chairman of Sullivan & Cromwell LLP focusing on acquisition, corporate governance, regulatory and securities law matters. This post is based on a Sullivan & Cromwell LLP publication by Andrew R. Gladin.