Friday, May 7, 2010

Morning headlines

SEC:  We'll probe stock market route, and then do nothing

May 7 (Bloomberg) -- U.S. regulators plan to examine whether securities professionals triggered yesterday’s stock- market plunge or exploited the turmoil to profit illegally, two people with direct knowledge of the matter said.

The Securities and Exchange Commission aims to determine if market participants accidentally or maliciously entered orders that derailed normal trading, the people said, declining to be identified because the inquiry isn’t public. The agency will also examine if controls to prevent the rout from snowballing weren’t in place at exchanges and firms.

SEC officials, who haven’t drawn conclusions, began preparing for inquiries in the hours after a U.S. selloff triggered by Europe’s debt crisis briefly erased more than $1 trillion in market value, beginning around 2:40 p.m. in New York. U.S. stocks tumbled the most in a year as waves of computerized trading exacerbated the rout, sparking a slide in Asian shares.

Do you want to know if it was malicious or deliberate? Just check the daily P&L of the HFT's!

Goldman: We're in settlement talks with the SEC now, because the regulators are panicky over the stock market

Goldman Sachs Group Inc. lawyers met this week with representatives of the Securities and Exchange Commission in a first step toward a potential settlement of the agency's fraud lawsuit against the securities firm.

Goldman's willingness to even meet with the SEC is a sign that executives are scaling back their combative stance since the lawsuit was filed April 16. While the company hasn't retreated from its public statements that the suit's accusations are groundless, some Goldman executives are taking a softer line with restive shareholders.

Japan: We'll intervene in the currency market--and this yesterday was just another "fat finger"

Prime Minister Yukio Hatoyama also vowed to take necessary steps as Tokyo stocks closed 3.1pc lower and the yen remained at relative highs against the euro following overnight panic selling on US markets.

The injection into the short-term money market via a same-day operation was to boost liquidity as investors moved out of the euro, analysts said, before sentiment towards the single currency improved later in the day.

Bernanke: Let's slow down talk of an "exit" strategy.

Everyone's out and talking things up.

Because everyone's afraid of this!

Another Red swoosh!

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