Hints and tips:
...A former broker who headed financial services firm GFI Group, which made money from a business model now targeted by the new rules, Mr Giancarlo is expected to be supportive of regulatory amendments....
...The New York-based group will offer to buy the 86.5 per cent of shares in GFI it does not own in a deal that values GFI at a tender offer of $5.25 a share. The offer will end on November 19....
...Broker-dealers, the source of the majority of their deals, are cutting jobs, being forced to hold more capital and reduce their exposure to riskier assets such as credit, long-dated unsecured trades and commercial mortgage-backed...
...Voice brokers at firms such as Icap, BGC, Tullett Prebon, Tradition and GFI pool prices from banks and transact in the so-called “interdealer” market....
...But more complex products such as collateralised debt obligations – involving re-packaging of debt securities such as mortgages or corporate bonds – would be “more difficult”....
...It also manages the array of indices based on credit, loan, mortgage and asset-backed market risks, all of which have become highly popular with investors....
...Last month, all 18 interdealer brokers – including the biggest five, Icap, Tullett-Prebon, GFI, BGC and Tradition – kicked off a lobbying effort by backing a Wholesale Market Brokers Association campaign...
...He said the derivative at the centre of the crisis were collateralised debt obligations, which were used as part of the mortgage securitisation process by banks....
...It was Andy Hornby’s fate to be the chief executive of HBOS when the UK’s biggest mortgage lender hit the worst financial crisis in its history....
...- UK mortgage approvals close to record lows. - And the FTSE fell on Tuesday morning, down 1.36% (-74.7 points, 5431.4) at 12:30BST....
...The mortgage lender, which has been placed under special regulatory supervision, fell a further 29.7 per cent to $2.32 as the cost of insuring against the risk of its default rose markedly....
...Merger talks between London’s Tullett Prebon and GFI of the US, the interdealer brokers, ended without agreeement, derailing their bid to create a company bigger than Icap, the industry’s current leader....
...The manifest sticking point will be how to allocate the top board roles between Mr Smith and his counterpart at GFI, Michael Gooch....
...Another broker, GFI Group , fell 21.7 per cent to a near 30-month low of $51.01 after Goldman Sachs dropped it from its “conviction buy” list. Merrill Lynch fell 5.4 per cent to $41.18....
...In early trading, shares in GFI lost a third of their value after Goldman Sachs downgraded....
...market, GFI, the inter-dealer broker, said on Monday....
...Potential sellers of the index for hedging purposes include homebuilders and mortgage lenders, while buyers could include pension and hedge funds....
...GFI, the interdealer broker, yesterday said that its trading flow data shows “that CDS for the banking sector saw the most active trading in the US, led by Bear Stearns.”...
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