TOP NEWS: Economy: June 15, 2012
- Former Goldman Sachs director convicted
- Larry Summers: Must Focus On Inequality Of Opportunity
- Executive Pay: Audit Needed
- American consumers turn pessimistic
- NY Fed Manufacturing Growth Slows Sharply in June
Excerpts and more top stories
Former Goldman Sachs director convicted in NYC insider trading case involving hedge fund
Associated Press via Wall Street Journal – A former Goldman Sachs director accused of feeding confidential information to a corrupt hedge fund manager has been convicted of conspiracy and three counts of securities fraud. A jury acquitted Rajat Gupta on two other securities fraud counts. Gupta’s adult daughters hugged and wept as the verdict was read. He showed no visible reaction.
Bonnie Kavoussi, Huffington Post – Larry Summers says we need to worry less about income inequality and more about inequality of opportunity. Summers, a former Treasury Secretary, Harvard president and economic adviser to President Obama, said in a video posted by Harvard Kennedy School on May 30 that people need to stop attacking the rich for their achievements and instead focus on addressing the shrinking equality of opportunity.
Ed Lawler, Huffington Post – Like many before it, this spring has seen a high level of outrage over the executive compensation payouts in some large corporations. Among companies that have been the target of corporate governance activists this spring are Citigroup, Barclays, and Chesapeake Energy.
By Shannon Bond, Financial Times- US consumer sentiment hit a six-month low this month while factory output shrank in May, adding to evidence that slow wage growth, high unemployment and global economic fears are once again weighing on the recovery.
The Thomson Reuters/University of Michigan consumer sentiment index fell in June for the first time in 10 months, retreating to 74.1 from May’s four-year high of 79.3. That missed forecasts of 77.5 and was the lowest reading since December.
Reuters via Fox – A gauge of manufacturing in New York state fell sharply in June but still showed growth, the New York Federal Reserve said in a report on Friday. The New York Fed’s “Empire State” general business conditions index fell to 2.3, a 15-point drop from the month before and the lowest level since November 2011, and far below economists’ expectations of 13.
John Carney, CNBC.com – Dimon told the Senators that the multi-billion dollar losses at the bank stemmed from an attempt to adjust JPMorgan’s holdings because of changes in the way capital requirements work. Specifically, he said that the risk weighted assets of the CIO office were due to increase three hundred percent under Basel III.
Jeffrey Snider, Real Clear Markets – The Greeks are going to dominate the weekend as they decide to elect someone to do something about austerity and the huge current account hole. In anticipation of a “bad” election result, Greeks and foreign investors are pulling their money out, just in case.
Dana Milbank, Washington Post – I had high hopes for President Obama’s speech on the economy. But instead of going to Ohio on Thursday with a compelling plan for the future, the president gave Americans a falsehood wrapped in a fallacy. The falsehood is that he has been serious about cutting government spending. The fallacy is that this election will be some sort of referendum that will break the logjam in Washington.
By Dan Mitchell, Fortune
Craig Moffett of Bernstein Research issued a note yesterday in response to the Wall Street Journal’s report Tuesday night that the DOJ has launched an antitrust investigation of cable industry practices. He says prices will go up for people who watch video via the Internet because cable firms, in response to the investigation, will all start charging their Internet customers based on how much bandwidth they consume.
Michelle Singletary, Washington Post – Every holiday, we journalist try to find stories to relate to these largely consumer celebrations. So, there are a lot of Father’s Day stories out there. But one did catch my attention.