Facebook’s Banker Says You’re Dumb – and Other News Told in Charts
Scoring huge points for irony, Morgan Stanley (MS) chief James Gorman called investors who bought Facebook (FB) stock “naïve.” Gorman, whose bank was the lead underwriter for the shares, said on CNBC that anyone who expected a surge in the stock was “both naïve and bought it under the wrong pretenses,” the FT reports. Naive investors took the comments in stride.
Emboldened Regulators Are Poking At Jamie Dimon
Regulators at the CFTC are expanding an inquiry into JPMorgan’s (JPM) recent multi-billion trading loss. They are using powers granted by the Dodd-Frank Act to better police the swaps market, says the WSJ. The CFTC, which oversees derivatives markets, is one of several regulatory agencies investigating what happened with the “London Whale,” whose derivatives bets have caused Dimon's bank losses estimated at $2 billion and up.
United Continental Announces Layoffs, Pouts
United Continental (UAL) announced plans to lay off 1,300 people in Houston, and it blamed the city for approving Southwest’s (LUV) plans to add international flights at a nearby airport. “We regret the job loss, but we will be forced to reduce employment,” the world’s biggest airline said in a memo to workers, obtained by Reuters. United Continental said it would cut flights this fall, even though Southwest’s flights aren’t expected to start until 2015.
The Economic Recovery Is Faltering
New jobs data paints a dim picture of the economy. The unemployment rate rose to 8.2%, and U.S. employers created fewer jobs than they have in a year, says the AP. In response, the yield on the 10-year Treasury fell further, to a record low of 1.46%.