Wednesday's Headlines: Pre-Election Gridlock for Wall Street Jobs Where Nobody Wins
The campaign season has been rough on Wall Street with President Barack Obama demonizing Bain Capital when challenger Mitt Romney was its leader, and Romney himself bringing unwanted scrutiny to private equity. Even though Wall Street has decided to back Romney, bankers and traders may see little relief even if Romney wins, according to Bloomberg.
The article says that with a record U.S. deficit, rising unemployment and an anti-rich mood born of the Occupy Wall Street movement, the former Massachusetts governor may be forced to raise taxes on the wealthiest Americans and go back on his campaign promise to repeal the Dodd-Frank Act, the 2010 law meant to bring more regulation to banks.
“Given where the congressional elections are going, it’s not clear he’s going to be able to move in any direction,” Bloomberg quotes Stan Collender, a managing director at Washington-based public relations firm Qorvis Communications and a former federal budget policy director at two international accounting firms as saying. And the potential for continued gridlock hasn’t stopped billionaire hedge fund managers Daniel Loeb, Paul Tudor Jones and Ken Griffin from switching their allegiances to Romney. Four years ago, Wall Street executives were among Obama’s biggest backers, collectively donating $16 million to his campaign.
Barclays has struck a deal with regulators to pay more than $450 million to resolve accusations that it manipulated a key interest rate. [Dealbook]
The Securities and Exchange Commission is planning to sue hedge fund manager Philip A. Falcone this week. [Dealbook]
Adam Smith, a former portfolio manager at the Galleon Group Hedge Fund, has been sentenced to two years probation. [Dealbook]
Raymond James has hired away another team of Morgan Stanley Smith Barney advisers in suburban Cleveland. [On Wall Street]
Seventy percent of financial advisors surveyed by Brinker Capital listed four more years of the Obama administration as their top concern. [Investment News]
Goldman Sachs has advised investors to buy JPMorgan Chase but to stop buying Morgan Stanley. [CNN Money]
A federal judge has held a California hedge fund manager in contempt for not paying back $12 million to the SEC. [Hedge Fund Net]
PNC Bank has agreed to settle an overdraft fee lawsuit for $90 million. [South Florida Business Journal]
Wells Fargo & Co., U.S. Bancorp and BOK Financial Corp. have been named among the nation’s seven safest banks, according to a survey conducted by 24/7 Wall Street. [New Mexico Business Weekly]
Bank of America has cut the jobs of some managers who work with wealthy families. [Bloomberg]