Exchange CEOs Square Off Over NYSE Takeover

By AARON LUCCHETTI

In 2008, NYSE Euronext Chief Executive Duncan Niederauer arrived at an investor conference early to hear comments by Robert Greifeld, the head of rival exchange operator Nasdaq OMX Group Inc.

Mr. Niederauer cringed at Mr. Greifelds description of market-share gains in stock trading by Nasdaq over the Big Board, denouncing the numbers as dishonest.

Hes running for president. I am the president, the NYSE chief told the crowd, alluding to a line about actor Michael Douglass political enemy in the 1995 movie The American President.

The rival CEOs have a long history of tough talk and ferocious competition that could soon explode if Mr. Greifeld decides to make an audacious bid to break up Deutsche Börse AGs proposed takeover of NYSE Euronext.

For the past month, the 53-year-old Mr. Greifeld has been discussing with Nasdaq directors and other exchanges how to snare NYSE Euronexts stock-trading businesses, which is anchored by the 219-year-old New York Stock Exchange. A decision on whether to proceed with a bid is expected soon.

If Mr. Greifeld can torpedo the Deutsche Börse deal and walk away with the Big Board, he also would likely become Mr. Niederaurers boss. Analysts say the Big Board chief, a former trader at Goldman Sachs Group Inc., probably would quit, a move that would entitle him to exit-related payments of $34.3 million.

These are two competitive guys that have a history of going straight up against each other, says Richard Repetto, an analyst at Sandler ONeill Partners. Mr. Greifeld lives and breathes the Nasdaq, and he sees this as another showdown.

ChinaFotoPress/Getty Images for Robert and Bloomberg News for Duncan

A Nasdaq spokesman says Mr. Greifelds animosity toward Mr. Niederauer, 51, isnt personal. Neither chief executive would comment about the other for this article.

If the Deutsche Börse deal goes through, the combined company would tower over Nasdaq, marooning Mr. Greifeld without a major merger partner for the electronic market, launched in 1971 by Wall Street securities firms.

After last Mays flash crash, when stocks fell sharply and then rebounded within a few hours, Mr. Greifeld, in a CNBC interview, blamed the NYSE for turning off some of its systems when trading grew volatile.

Lets stop the finger-pointing, Mr. Niederauer countered in his own interview on CNBC. He said the NYSE system worked just as it was designed to, and that a tangled web of fast-trading electronic systems like Nasdaqs had pushed prices around.

Earlier this year, when Mr. Niederauer was discussing Mr. Greifeld with an investor, the NYSE chief executive started cursing, said a person briefed on the conversation. An associate of Mr. Greifeld says Its not really personal. He just doesnt have that much respect for him professionally.

Mr. Greifeld uses the rivalry as motivation. He gets up in the morning every day ready to beat the NYSE, says a former colleague.

During the 2008 investor conference, sponsored by Sandler ONeill, Mr. Greifeld crowed to a group that included Mr. Niederauer that Nasdaqs market share in stock trading was climbing, while a key gauge of the NYSEs clout had slipped below 28%.

It wasnt too long ago … we were trying to get [NYSE share] below 39%, then 35, then 33, then 30, and now its gone below 28%, he said. He didnt stick around to hear Mr. Niederauers rebuttal, according to attendees.

In the past few years, NYSE officials have started telling analysts and investors that the companys primary U.S. competitor is CME Group Inc. Duncan is like the political incumbent that doesnt want to give his opponent more credit by uttering his name, one …

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Germany rejects EU draft proposals

Germany rejects EU draft proposals

Germany rejected some measures in draft conclusions from a summit of EU heads on Thursday, including giving the European Stability Mechanism (ESM) a banking licence and issuing common eurozone debt, a senior German source said.

The conclusions seen by Reuters earlier said the permanent ESM rescue fund would get a banking licence and run alongside the EFSF, bolstering its ability to tackle the eurozone debt crisis.

“We are rejecting this in negotiations,� the source said, speaking on condition of anonymity.

In the draft, EU leaders said they were committed to a new “fiscal compact� for the eurozone, including much tighter budget deficit rules and debt issuance procedures, draft conclusions from a summit of EU heads of state showed on Thursday.

The draft also showed that the eurozone plans to bring forward the introduction of its permanent bailout fund, the European Stability Mechanism, to July 2012, and give the facility a banking licence.

Such a move would give the ESM access to European Central Bank liquidity, bolstering its ability to tackle the eurozone debt crisis. The draft conclusions also said the ESM should have the ability to directly recapitalise banks.

“The European Council is determined to preserve the integrity of the EU and the coherence between the euro area and the EU as a whole,� the draft conclusions read.

“With this overriding objective in mind, and fully determined to overcome together the current difficulties, we agreed today on a new “fiscal compact� and on significantly stronger coordination of economic policies in areas of common interest.

“General government budgets shall in principle be balanced. Member states may incur deficits only to take into account the budgetary impact of the economic cycle or in case of exceptional economic circumstances,� it said, adding that the structural deficit limit would be 0.5% of GDP.

On the ESM, which the draft said would have a capacity of 500 billion euros, the leaders agreed:

“Our common objective is for the ESM to enter into force in July 2012… The ESM will have the possibility to directly recapitalize banking institutions and to have itself the necessary features of a credit institution.�

It said the existing bailout fund, the EFSF, would continue to operate until mid-2013.

© Thomson Reuters 2011

Tags: banking-licence, bolstering-its, draft, efsf, european, eurozone, eurozone-debt, fiscal-compact, german, introduction, overriding, possibility, source, structural, thomson-reuters

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Devastated Corzine Defends Actions | Penny Stocks to Watch

Devastated Corzine Defends Actions

By SCOTT PATTERSON And ANDREW ACKERMAN

WASHINGTON—A contrite Jon Corzine expressed both sorrow and a firm defense of his actions Thursday in his first public appearance since the collapse of MF Global Holdings Ltd. in late October.

[1208corzine]Reuters

Former MF Global CEO Jon Corzine takes his seat to testify about the firms bankruptcy during a hearing before the U.S. House Agriculture Committee.

Like all of you, I am devastated by the enormous impact on many peoples lives resulting from the events surrounding the MF Global bankruptcy, Mr. Corzine said at a hearing by the House Agriculture Committee, which subpoenaed the former MF Global chief executive last Friday. Of course my distress and sadness pale in comparison to the losses and hardships that customers, farmers, ranchers and others—employees and investors—have suffered.

Mr. Corzine, who resigned as chairman and CEO of MF Global after its Oct. 31 bankruptcy filing, is a former U.S. senator and governor of New Jersey.

He faced tough questioning by the Republican-led committee, creating an atmosphere fraught with political drama. Mr. Corzine, 64 years old, received President Obamas support in 2009 for his unsuccessful campaign for re-election as governor, and more recently held a fund-raising dinner for Mr. Obama.

Some of the initial questioning focused on a significant shortfall in customer funds at MF Global. As Mr. Corzine scrambled to stabilize the firm in its last days, it was discovered that hundreds of millions of dollars were missing in customer accounts.

Mr. Corzine said repeatedly that he became aware of the shortfall in customer accounts on Sunday night, referring to late Oct. 30 or early Oct. 31.

The trustee overseeing MF Globals liquidation estimates the amount at $1.2 billion. Mr. Corzine said that he had little to do with the mechanics of moving customer cash and collateral and that he was stunned when he learned the money was missing.

I simply do not know where the money is, he said, noting that there were an extraordinary number of transactions during MF Globals last few days.

The state of the firms books and records reflected chaos in the brokerages final days, he said.

Still, Mr. Corzine mounted a defense of his tenure at MF Global, arguing that he cut leverage at the company from 37.3 to 1 in the first quarter of 2010, when he took charge at MF Global, to 30 to 1 at the end. He also defended his bet on European debt. Mr. Corzine, who was also a former Goldman Sachs Group Inc. chairman, took the helm of MF Global in March 2010 and quickly started making big bets on European government bonds.

Mr. Corzine defended his decision to invest in European sovereign bonds of countries including Italy, Spain and Portugal. The bet grew to more than $6 billion in a strategy that was repeatedly discussed by the companys board.

I strongly advocated the trading strategy, Mr. Corzine said, noting that he had identified the yields on the bonds as favorable at a time when he and senior traders at the firm were discussing ways to improve the firms profitability.

He also noted that the firm structured the trade as a repurchase to maturity, which reduced some of MF Globals financing risk and market risks on the strategy.

I believed that [MF Global’s] investments in short-term European debt securities were prudent, Mr. Corzine said. There were discussions at board meetings, at which the transactions were described, analyzed and debated.

Mr. Corzine said that on Aug. 15, 2011, he met with officials from the Financial Industry Regulatory Authority and the Securities and Exchange …

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Penny Stocks gurus

Penny stock gurus

 

Peter Leeds is one of the most trusted personalities in penny stocks. Major financial media companies have covered him. He is also known as the Penny Stock Professional.

 

He was 14 years old when he made his first trade. He invested all of his $3,600 into a company which he didn’t know anything about. The share price began to fall immediately after he bought the stock. After losing all his money in one trade, he started to learn. Leeds developed a method to make back his starting fund’s hundreds of times over.

 

His penny stock fortunes came from the conclusion that the most profitable method is long-term investing in high-quality cheap stocks. He made hundreds of thousands of dollars on most of his trades.

Travis Garlick AKA Teacup pig

Travis Garlick has amassed a giant Facebook and Twitter following for his ability to know which stocks are going to go up and which are going to go down. His 3-year hot streak is incredible. He is definitely one person to follow. His twitter handle is @teacuppiglets hence why he got the nickname teacup

Timothy Sykes

 

 

Another investor who became a penny stock millionaire by the age of 22. He turned $12,000 into $3.53 million over a few years by day-trading penny stocks. Then he founded a hedge fund which became the number one ranked short bias fund for 3 years. Trader Monthly named him Top 30 Under 30 in 2006.

 

But his fund lost 35% of its capital. After that, he starred in the Wall Street Warriors documentary. The show’s popularity inspired him to start a publishing company which creates educational financial newsletters. He started trading again from $12,000 and he turned it into $211,000 after 6 years, making him the number one ranked trader on Covestor.

 

He has been featured on every major financial media outlet. As a part of his battle against pump-and-dump schemes, Shaquille O’Neal sent him a cease-and-desist letter after Timothy Sykes blasted him for buying shares of a questionable penny stock. This stock later dropped 99%.

 

penny stock success stories

Tim Grittani And Timothy Sykes – Source: CNNMoney

 

Tim Grittani

 

While in college, Tim looked for easy ways to make money. He played poker and made wagers on sports games. He won $9,000 on a bet, but lost all of that soon and decided to quit gambling. So he tried stock trading.

 

Penny Stock Conspiracy

 

Tim Grittani started by learning from Timothy Sykes how to trade stocks. At the age of 21 he began day trading penny stocks with $1,500 of his life savings. Because of his limited capital, he decided that he was going to focus on buying penny stocks. He didn’t want to deal with expensive stocks like Google or Apple as he didn’t have enough money.

 

Three years later he accumulated $1 million in profits. He spends the entire trading day in front of a computer, buying and selling stocks at the right time. The trade that pushed the value of his portfolio over $1 million was when he shorted a stock that had been the target of a pump-and-dump scheme.…

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Penny Stocks: Traded on OTCBB or Pink Sheets

Penny stocks are the stocks traded over the counter market (OTCBB) or pink sheets. These stocks involve a lot of risk in their investment and can have adverse affects on the entire investment. The reason is that these stocks have lower liquidity and higher volatility. The risks can be adverse and one can lose the entire investment on these small cap stocks.

You need to keep in mind about the scams involved in penny stocks. Internet is flooded with a lot of ads on free penny stock trading, tips and most impressive stocks. These tiny stocks are not traded on major stock exchanges and you don’t require a major stock broker to trade in them. These stocks have prices less than $5 per share and you can get a number of shares by making little investments.

Penny Stocks Traded on OTCBB or Pink Sheets

Fix a budget and don’t exceed it. Greed is the worst thing for penny stock investments and the investments can become risky with involvement of fearless decisions. There are a few steps to be followed in the check list to guide you deeply about the trading. Your knowledge about the companies in which you make investment is mandatory to get best benefits. It is essential to get the detail about viability and prospects of the company by exploring it in detail.

OTCBB or Pink sheets never give any information about the company. It will only list the companies and are not concerned about any losses, pump and dump scams or fraudulent cases occurring in the penny stock world. These listings are not guaranteed and the small companies being a part of the penny stock leads will eventually lead to the bigger successes. Pink Sheet stocks can certainly get beneficial leads with better thinking, time management and use of your skills for exploration of the company.…

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Penny Stocks Guide

Penny stocks are the priced less than $5 in the US stock market. These are also termed as small-cap stocks or micro caps for the reason of their low value per stock. Penny stocks are traded on the pink sheets and highly admired by people to learn about the basics of stock exchange market.

You need to know a lot about penny stocks and the way to select the right stock before making the right choice. Technically, these stocks have low value per share, but there are some stocks having new initiation in the market and develop into mid-cap shares after an interval. There is a dedicated time frame for the same and people trust these stocks for the reason to develop better ideas and progress with it.

Penny Stocks Guide

For example, the stock having the value of $5 or less will be expected to go higher. You need to check out the stocks having good reputation in the market and it will certainly reap best benefits for your investment. There are different trends floating in the world of penny stocks from time to time and many big companies depend on the market performance to check out for the better prospects and results.

Penny stocks are not like ordinary stocks and are NOT traded on major standard exchanges. You can know about these stocks online and get the full fledge knowledge before making any investment. It is never good to buy pink sheet stocks without knowing about them in detail. You can trade in micro stocks through OTCBB or Pink sheets and there will be a lot of risk involved. Penny stocks can also make a person gain profits, but the chances of losses are higher than attaining profits. Make choice for the right penny stock and it will certainly give you best leads.…

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Tips to make Investment in Penny Stocks

Penny stocks are the low investment stocks, which require less money from the investors to make the investment. There are a few tips to follow, which can help you in building stronger returns with penny stocks and getting ahead with the most considerable options to get the relevant stocks.

Stock market is unpredictable and penny stocks are topmost on the list of volatile stocks. There are a few tips to follow for thinking about the right penny stock investments:

  • Research and planning before making investments on the pink sheet stocks is necessary for every investor.
  • Investment in the companies having huge trade volume should be preferred over the others having low value and low trade rate.
  • Penny stocks are volatile and you should have a fixed budget to invest. Slowly increase your budget as you feel comfortable with them.
  • Thorough research and entry-exit plans are essential to stick to for implementing the ideas in the best way.

Benefits of Penny Stocks

  • Low investment stocks can be your guide to learn about the major stock exchange markets and their performance.
  • It is easy to begin with small investments and put a lot of effort in understanding about stocks through these OTCBB listed stocks.
  • You can preferably make more money in the shortest possible interval by investing in penny stocks.
  • It is easy to begin with penny stock trading and these stocks can grow up as mid-cap options and your money will be multiplied several times.

It is important for the investors to choose the most relevant stocks and make proper planning to execute in the right way. Don’t invest too much amount and learn about these shares before proceeding towards the right spot. There are many scams associated with penny stocks and should be considered before making the right investment.…

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Cautious Investment on Penny Stocks

Penny stocks offer considerable profits, but they are quite vulnerable to get manipulated. You need to be cautious and pick out the right stocks; or you might lose all your money. It is important for you to find out the honest small organizations in which you can make the real investment. It is important to earn handsome amount by making appropriate purchases. If a company seems to have bright future, there is nothing wrong in making the investment with the promising organization. You can even bring bright future results for the company and get all the research done in the appropriate way. for further details, visit : http://www.taweet.com/what-are-penny-stocks-and-how-they-work/

Cautious Investment on Penny Stocks

There will beEven though penny stocks offer a large chunk of profits, these shares are quite vulnerable to be manipulated. If you are not very careful and cautious in picking out the right stocks, you can easily lose all your money that you had invested. It is important for you to find the honest and real small organizations to invest your money; as such investments will offer you tons of potential to earn handsomely. If a company seems to be having a bright future and is a promising small organization, then you can very well invest in their small stocks to get a hefty return on your investments. All you need to do is to take time to do research on the internet to spot such promising companies and you are sure to gain good payouts. There will be a plenty of opportunities available in the investment, but you will be responsible to find out the most promising approach for the best returns on your activities.

Penny stock investments are risky, but it doesn’t mean that you will necessarily face losses with it. Investors need to follow cautious approach to invest in the appropriate way and get the most out of their efforts.…

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What are Penny Stocks and how they work?

There are a lot of people curious to know about penny stocks. Investing in these stocks may earn high profits for you. It is interesting in investing in penny stocks and some stocks don’t require much time to begin doubling your money. click here for more details.

It is important for you to understand clearly about these stocks and the way they are operated. You might be interested in penny stocks to make your money through them and it is essential to understand about them. You can make a lot of money by these simple investments, but it is important to make the most appropriate move to make investment at the right spot.

Penny Stocks Introduction

Generally, penny stocks are traded under $5 per stock. The stocks of smaller companies are included on this platform. The companies such as small technology firms, Bio Pharma groups, mining sector and blue chip companies are included in these stocks. The people interested in penny stocks share the prices with low rate in comparison to the MNCs. Many people are interested in doing stock trading to invest hard earned money in these stocks. You don’t need a hefty amount to begin with the investment and can even begin with $100 as a startup.

What are Penny Stocks and how they work

Benefits in Penny Stock Investment

Once you are aware of the penny stocks and their investment, the next query will be about the benefits it can give to the stock holders. The best thing about small stocks is that the percentage gain or drop per share won’t affect your investments to a huge level. On the other hand, there are many scams associated with these stocks which can increase the chances of losses and get worst impacts for the shares.

Best Way to Begin

Penny stocks are the best ways to begin with the world of investments. You can begin learning the trading schedule, methods and get all you need to know about stock market investments through these stocks. There are many learning tricks with penny share investments and they are indeed the cheapest way of investing in stocks. You can even invest thousands of shares without having a big burden of investment. The stock trading tips can be learnt with these tiny stock investments.

Cheap stocks trading

Trading in cheap stocks would never strike in your mind till you begin doing it. The less value of investments can change your life in the shortest span. There are only a few traders who can invest in penny stocks due to their cheap value. Your money can double or triple in a short interval, but getting greedy won’t work. It is required to make full sledge research in making the appropriate move for stock trading.

Risky Factor

If you can get high gains from penny stocks, it is possible to lose your money with cheap stocks. There is risk involved in the investment and pink sheet stock investments can be actually helpful. If you are interested in trading stocks in the safest way, it is always good to depend on the analytical micro stock choice. Stock picks are available for the best shares and the chances of manipulation are lower. It is important for the investor to make the right choice by keeping in mind all the risks involved in share trading.…

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