Investment News Blog

Brokers could bolt from wirehouses when economy stabilizes

2009-05-24T14:01:00.003-07:00

The steady exodus of registered reps from wirehouses is expected to accelerate dramatically over the next 18 months, according to a report from TowerGroup.

Anywhere from 7,500 to 9,000 more reps could move to independent advisory firms by the end of next year, according to the company.

The Needham, Mass.-based consulting firm noted that a massive portion of this migration which would account for 12% to 14% of the total number of wirehouse reps remaining could take place in late 2010 when markets are likely to be less rocky.

At the moment, "the markets and the economy are slowing the movement of advisers toward independence," according to Sean Cunniff, research director in the brokerage and wealth management practices at TowerGroup.

"Some advisers fear that adding a change of firm may give the clients one more reason to find a new financial expert," he said.

"It is likely that as financial markets stabilize and the economy lands on sounder footing, the number of advisers leaving wirehouses will increase considerably."

These projected breakaway reps manage approximately $500 billion to $800 billion in client assets, TowerGroup estimated.

At the beginning of this year, there were 65,000 wirehouse brokers, according to the report, a 20% decrease since 2002.

Buying a Sense of Security for the Home

Treasury Secretary Says Markets Are Calmer Now

First Allied to woo First Montauk reps

brokersXpress to buy Horwitz and Associates

Many workers dont move 401(k)s when terminated, study finds

2009-05-24T14:01:00.001-07:00

A large number of people let the money in their 401(k) plans languish after they lose their jobs or simply choose to cash out their retirement accounts once they're terminated according to a new report released by The Charles Schwab Corp.

Specifically, 43% of the 401(k) assets belonging to participants who were terminated from their jobs in the first quarter of 2008 are still sitting in their former employers' plans, according to data from the San Francisco-based company.

The remaining assets had largely been rolled over into individual retirement accounts, or had been taken as cash distributions, according to Schwab, which analyzed the transactions of nearly 10,000 terminated participants in its Schwab Retirement Plan Services business.

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

Retirement Savers Make Costly 401(k) Mistakes

Schwab turns down slice of bailout pie

Mutual funds in peril, study says

Comprehensive IRA database planned

Many workers dont move 401(k)s when terminated, study finds

2009-05-23T16:00:00.007-07:00

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

Many workers dont move 401(k)s when terminated, study finds

2009-05-23T16:00:00.005-07:00

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

Many workers dont move 401(k)s when terminated, study finds

2009-05-23T16:00:00.003-07:00

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

Many workers dont move 401(k)s when terminated, study finds

2009-05-23T16:00:00.001-07:00

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

Many workers dont move 401(k)s when terminated, study finds

2009-05-23T15:59:00.001-07:00

Additionally, 75% of terminated workers that moved money out of their former employers' 401(k) plans have rolled these assets into IRAs, Schwab noted, while another 14% requested cash.

Only 7% of these terminated workers rolled their 401(k) assets over into a retirement plan at a new employer. Four percent used other forms of distribution.

One Step Forward After Two Steps Back

2009-04-09T14:00:00.001-07:00

One Step Forward After Two Steps Back

Stocks rallied into the close, after initial gains generated by positive global equities were taken back at 14:00 EDT by the release of the Fed’s minutes from the March rate meeting. “The news was that things are getting no better, and that the printing press would remain on until such time that whoever is hording dollars puts them to good use” said TheLFB-Forex.com Trade Team. “Now, that may lead to an awful lot of dollar bills and notes hitting the street, but the Fed showed today that their economic outlook is such that drastic measures are going to be needed to create liquidity that filters through to Average Joe without creating too much of a bubble that could burst all over again in five years time” they said. Wall Street closed in the green, going 6 for 8 in positive session finishes, which in the current environment is a solid signal that 800 on the S&P is well protected.

“The easiest way to move forward would be to lower lending standard criteria, create liar loans, package good and bad loans together to hide the scam, and get consumers consuming with tax cuts and/or stimulus checks. It worked for four years from 2003 onwards, and the Fed must yearn for the days that a call into the markets to get things moving with lower rates and their criteria would have a fairly instant impact. But, we are paying the price for decades of boom and bust initiated by low saving rates and easy credit and right now the pain the consumer is feeling will not easily be overcome”.

“Until it all balances out we can get used to the pain of getting by on what we earn, and going without what we cannot afford, because until that cycle finishes the dollar will be seen as the safest place to hide in times of turmoil. But take care buying the greenback when the economy turns around; the cost of putting this right will impact the dollar going forward. It may not be tomorrow, maybe not next month, but as soon as equities clear and hold 900 on the S&P the dollar index may start to drop heavily”.

On Wednesday afternoon the NYSE was looking at posting the first day of gains this week with on average 1% increases from the opening prices. The DOW was on 78400 after a gain of 40+ points (0.5%) while the S&P traded around 825, higher by 1.2%. and the technology-heavy NASDAQ traded in afternoon mode around the 1590 area, after gaining nearly 30 points (1.9%).

Banking Sector Will Continue To Struggle: Equities Pressured, Dollar Gains

Even though the XLF index, which gauges the financials’ movement, rose 24% over the last month, the banking sector might not be out of the woods just yet. A number of analysts and traders are still saying that the banking sector will have to fight for its survival.

Among them, the legendary George Soros said zombie banks are among us, while the new accounting rules will only keep them alive. Meredith Whitney, the well-known analyst who predicted the financials’ decline ahead of the credit crisis, still thinks that banks profitability will not last too long, because their balance sheets are not ready to face a double digit unemployment rate.

Furthermore, UBS’s analyst Alastair Ryan predicts that any positive first quarter earnings will not continue into the second quarter, or after that. He says that most of the earnings came from the fixed-income desks, where the traders were helped by central banks adopting a quantitative easing strategy. Ironically, UBS was among the first banks that said it had profits in the first few months of 2009.

TheLFB-Forex.com Trade Team also believes that is hard to expect banks to post earnings beyond the first part of the year. "The number of companies or consumers looking for a loan right now is very small, and is likely to stay that way. Banks saw relatively good and stable profits coming from the credit market, but this is now gone. Additionally, the number of foreclosures and defaults are likely to increase over the coming period adding further strains" they said. "The move to safety in the greenback may not yet be over, and the fact that the XLF is 70% off last years prices puts into perspective the amount oif work involved in rallying the stock market, and by default that allows the dollar to more easily hold current valuations".

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Exxon Posts Record $11.68 Billion Profit

Credit crunch hasn’t hit bottom, FDIC says

Fed funnels billions into global markets

Citi cuts estimates on investment banks

UK Moves To Support Large Banks

2009-02-27T15:19:00.007-08:00

UK Moves To Support Large Banks

U.S. Dollar Trading (USD) remained relatively unchanged against the majors with the market searching for direction. USD/JPY moves are creating a distortion in the market with risk aversion as a theme failing to impact as it once did. Weak/Strong US stocks are thus impacting the direction of EUR/USD and GBP/USD much less than usual with EUR/JPY and GBP/JPY failing to respond. Economic data overnight was weak with January Core Durable Goods Orders falling -5.2% vs. -2.5% forecast. Weekly Jobless also increased to 639K vs. 620k previously. Crude Oil closed up $2.72 ending the New York session at $45.22 per barrel. In US share markets, the Nasdaq was down -33 points or -2.38% whilst the Dow Jones fell -88 points or -1.22%. Looking ahead, Q4 GDP is forecast to be revised to -5.4% vs. -3.8%.

The Euro (EUR) stayed range bound with EUR/JPY buying helping the major test 1.28 before settling lower. German Unemployment increased to 7.9% vs. 7.8% previously. Also released March German GFK Index increased to 2.6% vs. 2.2% previously. Overall the EUR/USD traded with a low of 1.2684 and a high of 1.2809 before closing the day at 1.2720. Looking ahead, January Eurozone Unemployment Rate forecast to rise to 8.1% vs. 8.0%. Also released, January CPI forecast at -0.9% vs. 0.4% previously.

The Japanese Yen (JPY) weakened with the USD/JPY breaking above 98 and dragging all the crosses higher. Recent weakness is being attributed to weakening Japanese Economic fundamentals although there has been little complaint from Japanese exporters and the BOJ/MOF has been very quiet about the rapid FX move. Overall the USDJPY traded with a low of 97.34 and a high of 98.71 before closing the day around 98.30 in the New York session. UPDATE January Unemployment improves to 4.1% vs. 4.4% previously and Retail Sales drop to -2.4% vs. -2.7% previously.

The Sterling (GBP) initially reacted negatively to news that the UK government would be increasing its stake in RBS to 84%. The large GBP/JPY rally help the pair rebound above 1.43. Nationwide House Prices fell -1.8% in February. Overall the GBP/USD traded with a low of 1.4164 and a high of 1.4383 before closing the day at 1.4320 in the New York session. UPDATE GFK Consumer Confidence improved to -35 vs. -39 forecast.

The Australian Dollar (AUD) kept to the recent range with the market testing 0.6550 on the back of heavy AUD/JPY buying which broke above 64 Yen. Helping to keep sentiment positive was the better than expected Q4 Capex which increased 6% vs. -3% forecast. Overall the AUD/USD traded with a low of 0.6461 and a high of 0.6553 before closing the US session at 0.6500.

Gold (XAU) tested supports at $933 which held firm and retraced to $947. The market has the downside in focus and will need a market event to reverse. Overall trading with a low of USD$932 and high of USD$956 before ending the New York session at USD$945 an ounce.

Easy Forex
http://www.easy-forex.com

Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

UK Moves To Support Large Banks

2009-02-27T15:19:00.005-08:00

UK Moves To Support Large Banks

Easy Forex
http://www.easy-forex.com

Exxon Posts Record $11.68 Billion Profit

Centro to Sell Fund’s U.S. Malls

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Centro to Sell Fund’s U.S. Malls

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Centro to Sell Fund’s U.S. Malls

Amex approves NYSE Euronext merger

New York Life hires retail chief

UK Moves To Support Large Banks

2009-02-27T15:19:00.003-08:00

UK Moves To Support Large Banks

Easy Forex
http://www.easy-forex.com

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

UK Moves To Support Large Banks

2009-02-27T15:19:00.001-08:00

UK Moves To Support Large Banks

Easy Forex
http://www.easy-forex.com

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

UK Moves To Support Large Banks

2009-02-27T15:18:00.003-08:00

UK Moves To Support Large Banks

Easy Forex
http://www.easy-forex.com

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

UK Moves To Support Large Banks

2009-02-27T15:18:00.001-08:00

UK Moves To Support Large Banks

Easy Forex
http://www.easy-forex.com

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

Exxon Posts Record $11.68 Billion Profit

Amex approves NYSE Euronext merger

New York Life hires retail chief

Fed extends expiration date on 3 lending facilities

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:59:00.001-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Release Explanation: The CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore gives an overall read of inflationary pressures. It is the most widely used Inflation indicator of central banks, institutions, and governments. It is used to calculate cost of living numbers for government programs. Each regional central bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.

It can sometimes overstate inflation because it does not reflect price changes in new technology goods which are often declining in price as new innovations come into the market. Despite these criticisms, it remains the benchmark inflation index worldwide. CPI can be greatly influenced in any given month by movement in volatile food and energy prices, and therefore it is important to look at CPI excluding food and energy, commonly called the “core rate" of inflation.

Within the core rate, some of the more volatile and closely watched components are apparel, tobacco, airfares, and new car sales. In addition to tracking the month over month (m/m), the year over year (y/y) change in core CPI is seen by economists as the most reliable read of the underlying inflation rate.

This is the "be all and end all" of economic releases. This report sets the tone for economic growth or contraction, and therefore eventually affects most other releases. The gauge of inflation is a report that moves markets because it gives a central bank the information they need to make rate decisions. This therefore is a big market mover as institutions adjust existing or planned positions in response to the rate of inflation and its impact on a currency, i.e. CPI higher, currency appreciation, CPI lower, currency depreciation.

Trade Desk Thoughts: U.S. CPI rose 0.3% in January, the Bureau of Labor Statistics said today. It was the first monthly increase in the last three months. For the year, inflation was unchanged. Excluding food and energy, the so-called core rate of inflation was 0.2% last month and rose by 1.7% for the year.

"Decreasing energy costs are generally a plus for the economy," said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "However, some Fed officials saw a 'risk' of 'excessively low inflation' while 'a few even saw some risk of deflation' at the January meeting."

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

Leading CPI higher was the energy index, which climbed 1.7% in January, its first increase in six months. Energy was still 31.4% below its July 2008 peak level. Within energy, the gasoline index rose 6.0% in January after a 19.3% decline in December.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

Forex Technical Reaction: S&P futures were trading 1.76% lower on the day prior to the report. The dollar was recently higher against the euro and Australian dollar, and about even on the yen and pound. After the report, futures improved to a 1.6% decline and the dollar weakened against the higher-yielders while it rose slightly against the yen.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:58:00.009-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:58:00.007-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:58:00.005-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:58:00.003-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Inflation Pressures Ease Despite Food Price Jump

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

U.S. Inflation Rose In January But Was Unchanged For The Year

2009-02-23T15:58:00.001-08:00

U.S. Inflation Rose In January But Was Unchanged For The Year

U.S. CPI (Jan) Actual 0.3%, Expected 0.2%, Previous -0.8%

U.S. Core CPI (Jan) Actual 0.2%, Expected 0.1%, Previous 0.0%

Unrounded, the CPI rose 0.282% last month. The core CPI rose 0.177% unrounded.

The increase in core CPI was mainly due to larger advances in the indexes for rent and owners’ equivalent rent and upturns in the indexes for new vehicles and apparel.

The compound annual rate of inflation for the three months to January was -8.4%, led by a 65.4% decrease in energy costs. Core CPI increased at a 0.9% compound annual rate over the same period.

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.

Inflation Pressures Ease Despite Food Price Jump

Worker Productivity Up at 2.2 Percent Rate

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Inflation Pressures Ease Despite Food Price Jump

Worker Productivity Up at 2.2 Percent Rate

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Inflation Pressures Ease Despite Food Price Jump

Worker Productivity Up at 2.2 Percent Rate

Inflation rises at fastest pace in 17 years

Managers worry more about inflation

Keep eye on inflation, Lacker says

Report: Cuomo eyeing Merrill bonuses

2009-02-05T19:39:00.001-08:00

New York attorney general Andrew M. Cuomo has his eye on recovering the $4 billion in bonuses distributed by Merrill Lynch just before its acquisition by Bank of America., according to Bloomberg.

Merrills bonuses were distributed in December a month earlier than usual. Then, on Jan. 16, the firm reported a record $15.3 billion loss for the fourth quarter.

Mr. Cuomo wants to know how much Bank of America chief executive Kenneth Lewis knew about the bonuses and the losses, a source told Bloomberg.

He is trying to determine if New York securities laws were violated. If so, he could seek fines or recovery of the bonus payments.

The attorney general is initiating a probe into whether shareholders at Charlotte, N.C.-based Bank of America Corp. and New York-based Merrill Lynch & Co. Inc. had all the information on the wirehouses finances and whether the bank made proper use of its federal bailout money, an insider told Bloomberg.

Earlier this week, Mr. Cuomo subpoenaed Merrills ex-CEO John A. Thain and J. Steele Alpha, Bank of Americas chief administrative officer.

He also announced that his office will investigate executive pay practices at institutions that received bailouts through the Troubled Asset Relief Program, cooperating with TARP special inspector general Neil Barofsky.

A call to Merrill Lynch spokesman Bill Holden was not immediately returned.

Home-Appraisal Row May End Up in Court

Florida Files Countrywide Lawsuit

BofA set to settle with regulators over ARS

Merrill exec tapped for key spot

Merrills Thain to remain after merger

Report: Cuomo eyeing Merrill bonuses

2009-02-05T19:38:00.001-08:00

New York attorney general Andrew M. Cuomo has his eye on recovering the $4 billion in bonuses distributed by Merrill Lynch just before its acquisition by Bank of America., according to Bloomberg.

Merrills bonuses were distributed in December a month earlier than usual. Then, on Jan. 16, the firm reported a record $15.3 billion loss for the fourth quarter.

Mr. Cuomo wants to know how much Bank of America chief executive Kenneth Lewis knew about the bonuses and the losses, a source told Bloomberg.

He is trying to determine if New York securities laws were violated. If so, he could seek fines or recovery of the bonus payments.

Earlier this week, Mr. Cuomo subpoenaed Merrills ex-CEO John A. Thain and J. Steele Alpha, Bank of Americas chief administrative officer.

A call to Merrill Lynch spokesman Bill Holden was not immediately returned.

Home-Appraisal Row May End Up in Court

BofA set to settle with regulators over ARS

Merrill exec tapped for key spot

Ric Edelman to become president of SMH

2009-02-05T19:36:00.003-08:00

Financial adviser Ric Edelman, the popular syndicated radio talk show host and author, has been appointed president of Houston-based Sanders Morris Harris Group Inc. as part of a deal to increase its holdings in his firm.

Investment firm Sanders Morris will pay $25 million in cash and will issue a promissory note for an additional $10 million, payable within a year, to Fairfax, Va.-based Edelman Financial Advisors LLC, thus increasing its stake in the firm to 76%, from 66%, according to a Jan. 30 filing with the Securities and Exchange Commission.

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

Mr. Edelman will stay at the helm of EFS at least through May 2013, according to a statement from the firm, and will retain a 24% stake in Edelmans financial companies, which have a combined $3.2 billion in assets under management.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T19:36:00.001-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Canary Wharf Gets J.P. Morgan

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.015-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Canary Wharf Gets J.P. Morgan

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.013-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.011-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Hellman and Friedman in talks with Lehman

Ric Edelman to become president of SMH

2009-02-05T15:32:00.009-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.007-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Canary Wharf Gets J.P. Morgan

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.005-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Hellman and Friedman in talks with Lehman

Ric Edelman to become president of SMH

2009-02-05T15:32:00.003-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Ric Edelman to become president of SMH

2009-02-05T15:32:00.001-08:00

The deal will also increase Sanders holdings in an affiliated firm, Edelman Financial Services LLC, to 76%, from 51%.

At Sanders, he replaces Robert Garrison as president. Mr. Garrison will become chairman of the firms executive committee.

Meanwhile, SMH chairman George Ball will become chief executive of the firm, succeeding Benjamin Morris, who is set to retire at its annual meeting in May.

The firm has approximately $8.6 billion in assets under management.

Mr. Edelmans books include The Lies About Money and The Truth About Money.

His radio program, The Ric Edelman Show, is heard on ABC Radio Networks.

Retirement Savers Make Costly 401(k) Mistakes

Canary Wharf Gets J.P. Morgan

Investors Capital taps president and CEO

Legg pumps $630M into money market funds

Tremont to close hedge fund unit

2009-01-30T13:57:00.003-08:00

Tremont Group Holdings Inc. of New York is closing its hedge fund division following $3.1 billion in losses associated with the Bernie Madoff scandal, according to the firm.

Rye (N.Y.) Investment Management, Tremonts hedge fund unit, had invested all of its assets in a fund tied to Bernard Madoff Investment Services.

Tremont will retain staff from the Rye division to seek recovery of available assets from a $50 billion Ponzi scheme allegedly perpetrated by Mr. Madoff and his New York-based investment firm.

In December, Tremont reported that its fund of hedge funds division, Tremont Capital Management, lost $200 million related to the Madoff scandal. That division reportedly had nearly $3 billion under management at the end of 2008, and the company reported that the division would remain open.

"Tremont has restructured its business to reflect market conditions and the reduced amount of assets under management. While the Rye Investment Management unit is permanently suspended, it also retains the staff necessary to seek to recover any available Madoff assets, Tremont spokesman Montieth Illingworth said in a statement.

Lehman Has Plan for Real-Estate Loans

Bear Stearns alum starts up $1B hedge fund

Alleged Madoff fraud hits Europe and Asia

State Street launches fixed-income ETFs

2009-01-30T13:57:00.001-08:00

State Street Global Advisors of Boston today announced the launch of two new fixed-income exchange traded funds: the SPDR Barclays Capital Short Term International Treasury Bond ETF (BWZ) and the SPDR Barclays Capital Mortgage Backed Bond ETF (MBG).

Recent market volatility has increased demand for fixed-income ETFs that provide efficient and cost-effective exposure to markets that help investors enhance the diversification of their fixed-income holdings, James Ross, a senior managing director at SSgA, said in a statement.

The SPDR Barclays Capital Short Term International Treasury Bond ETF is designed to track the price and yield performance of the Barclays Capital 1-3 Year Global Treasury ex-US Capped Index.

The ETF has an expense ratio of 0.35%.

The SPDR Barclays Capital Mortgage Backed Bond ETF is designed to track the price and yield of the Barclays Capital U.S. MBS Index.

The ETF has an expense ratio of 0.2%.

Mortgages Rise Slightly

Barclays rebrands Lehman index family

Direxion introduces triple-leverage ETFs

NYLI launches five-year fixed annuity

Lehman offloads two private-equity funds

2009-01-23T15:09:00.017-08:00

A Luxembourg investment partnership has agreed to purchase two private-equity funds from the Lehman Brothers Holding Co. bankruptcy estate.

Reinet Fund S.C.A., a wholly owned subsidiary of Reinet Investments S.C.A. in the Grand Duchy of Luxembourg, will buy the funds from Lehman Brothers Merchant Banking and commit to $230 million to the funds over a three-and-a-half-year period, the firm said.

No further details were provided on the value of the transaction.

The two funds are currently known as Lehman Brothers Merchant Banking Partners IV LP and Lehman Brothers Merchant Banking Partners IV (Europe) LP.

The funds are being purchased from the bankrupt New York financial firms private-equity division.

To date, the funds have made investments totaling $800 million in aggregate, and further commitments by limited partners to invest in the funds equal $1 billion, according to a statement from Reinet.

The transaction is expected to have to material impact on the net-asset value of the parent company, the statement said.

Lehman is based in New York.

Lehman Has Plan for Real-Estate Loans

Mortgage-Securities Revival Elusive

Hellman and Friedman in talks with Lehman

Lehman plays coy with Neuberger sale

Bear to spin off merchant banking unit

Lehman offloads two private-equity funds

2009-01-23T15:09:00.015-08:00

A Luxembourg investment partnership has agreed to purchase two private-equity funds from the Lehman Brothers Holding Co. bankruptcy estate.

No further details were provided on the value of the transaction.

The two funds are currently known as Lehman Brothers Merchant Banking Partners IV LP and Lehman Brothers Merchant Banking Partners IV (Europe) LP.

The funds are being purchased from the bankrupt New York financial firms private-equity division.

To date, the funds have made investments totaling $800 million in aggregate, and further commitments by limited partners to invest in the funds equal $1 billion, according to a statement from Reinet.

The transaction is expected to have to material impact on the net-asset value of the parent company, the statement said.

Lehman is based in New York.

Lehman Has Plan for Real-Estate Loans

Hellman and Friedman in talks with Lehman

Lehman plays coy with Neuberger sale

Bear to spin off merchant banking unit

Lehman offloads two private-equity funds

2009-01-23T15:09:00.013-08:00

A Luxembourg investment partnership has agreed to purchase two private-equity funds from the Lehman Brothers Holding Co. bankruptcy estate.

No further details were provided on the value of the transaction.

The two funds are currently known as Lehman Brothers Merchant Banking Partners IV LP and Lehman Brothers Merchant Banking Partners IV (Europe) LP.

The funds are being purchased from the bankrupt New York financial firms private-equity division.

To date, the funds have made investments totaling $800 million in aggregate, and further commitments by limited partners to invest in the funds equal $1 billion, according to a statement from Reinet.

The transaction is expected to have to material impact on the net-asset value of the parent company, the statement said.

Lehman is based in New York.

Lehman Has Plan for Real-Estate Loans

Mortgage-Securities Revival Elusive

Hellman and Friedman in talks with Lehman

Lehman plays coy with Neuberger sale

Bear to spin off merchant banking unit

Breakaway brokers added $13B to Schwab's coffers

2009-01-23T15:09:00.011-08:00

Charles Schwabs added $13 billion of assets from former full-service brokers who set up or joined registered investment adviser firms in 2008, up 41% from the previous year.

The breakaway broker gains represent about 22% of the $60 billion of new assets that all independent advisers brought to Charles Schwab & Co. Inc. last year, according to Bernie Clark, senior vice president and head of sales for the firms adviser services business. The assets came from 123 teams of brokers who set up as independent registered investment advisers or who joined existing RIA businesses.

In 2007, San Francisco-based Schwab attracted $9.2 billion from 114 teams of breakaway brokers.

The average size of client assets managed by new RIAs at Schwab doubled to almost $120 million in the past year, he said.

However, a good chunk of the new business came from one client Gurtin Fixed Income Management LLC of San Diego and Chicago which set up shop last February with about $5 billion of client assets and uses Schwab as its primary custodian.

William Gurtin, who had been with Morgan Stanley and earlier worked at Merrill Lynch & Co. Inc. and The Goldman Sachs Group Inc., was featured on a panel on the future of fixed income at Schwabs annual Impact conference for independent advisers in September. Morgan, Merrill and Goldman Sachs are all based in New York.

Mr. Clark said that about one-third of the assets that Schwab has attracted in recent years came from broker teams that used to work at Morgan Stanley and Citigroups Smith Barney.

Morgan Stanley and Smith Barney earlier this month announced plans for a retail brokerage joint venture that will be controlled by Morgan Stanley, and have not yet announced retention packages for their financial advisers.

Alexander Samuelson, a Smith Barney spokesman, declined to comment on Mr. Clarks remark, but said custodians are exaggerating the phenomenon of the breakaway broker and the quality of the brokers who choose to set up their own businesses.

The competition for top brokers continues among big brokerage firms, which are offering lucrative sign-on bonuses and retention packages, he and others said.

The idea that top-performing advisers are going independent is somewhat of an overblown legend, Mr. Samuelson said.

Many advisers, upon doing their due diligence, realize how much work it takes to run a business with all the legal and regulatory issues involved. Especially today, they are finding that it takes too much time away from their core business of working with clients.

The number of financial advisers and private bankers at Citigroup and Smith Barney fell 11% at the end of 2008 to 13,765, from 15,454 one year earlier.

A Morgan Stanley spokesman did not return calls for comment.

For the full report, see the Jan. 26 issue of InvestmentNews

Treasury Hires Morgan Stanley

Schwab ramps up recruiting at wirehouses

Women prevail in Smith Barney suit

Breakaway brokers added $13B to Schwab's coffers

2009-01-23T15:09:00.009-08:00