2015 was not exactly the year of the hedge fund, and 2016’s starting off with its worst start for the industry since 2008. But if you think that’s keeping managers from starting new portfolios with an eye toward hitting it big in this volatile environment, well, think again – NYTimes
ECB Chief Mario Draghi’s working some of his soft power (while meeting with the European Parliament) to help reassure the markets that the increased regulation since 2008 has helped position EU banks to succeed in the coming years – NYTimes and WSJ
And while we’re at it with central bankers, the Journal’s Streetwise kicks off its debut column with a consideration of the many tools still at central bankers’ disposal – WSJ
Fair Game this weekend dove deeper into the raft of falling bank stocks, finding mistrust at the heart of the selloff – NYTimes
Among those struggling banks, Deutsche Bank is taking a particularly nasty hit. Looking to shore up investor confidence, Germany’s largest bank has announced plans for a $5.4 billion stock buyback – Law360
Turns out that HSBC’s big talk of a move to Hong Kong thanks to heavy regulation and increased taxes in London was something of a head fake; Britain’s largest bank is staying put – NYTimes
Banks are calling in the big guns—in the form of ex-military intelligence officers from the US and UK—to ferret out rogue traders – Bloomberg
FINRA’s proposed a plan to the SEC that would treat “algorithmic trading developers” [think automated trading] as securities traders and require FINRA registration. Reaction has not been exactly rosy – Law360
It’s just Tuesday, but we’ve already got our financial industries term of the week: “Smurfing”—the practice of wealthy Chinese families asking friends or family members to carry or transfer out $50,000 apiece as a means of getting around China’s cash controls. It’s all part of “an exodus of capital” that’s “casting doubt on China’s economic prospects and shaking global markets” – NYTimes
That said, “cocos” [contingent convertible bonds] are a very close second – WSJ
Hamilton was feeling the love last night at the Grammys. Probably TQP’s aggressive lobbying campaign that pushed it over the edge – Vulture
