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One Lesson From J.P. Morgan: Wall Street Has Changed
Tweet Share on Facebook May 21, 2012 CommentNothing is new on Wall Street, the conventional wisdom goes. The recent flap involving a huge trading loss at J.P. Morgan Chase shows that all the bad habits remain intact. The casino never closed, so step right up and place your bets.
[Photo Gallery: Is Occupy Wall Street Fighting or Floundering?]
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A Greek Meltdown Won't be the End of the World
Tweet Share on Facebook May 18, 2012 CommentTwo years ago, European leaders were willing to do almost anything to prevent a financial meltdown in Greece. If Greece defaulted on its debt or left the euro zone, it could have triggered a chain reaction across Europe, and global financial panic.
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Don't Envy the Facebook Millionaires
Tweet Share on Facebook May 17, 2012 CommentDo you feel like you are missing out on something?
Sudden wealth can be exhilarating for those who attain it, but demoralizing for those sitting on the sidelines. This was a common sensation during the dot-com boom of the late '90s, and it's now back with the eye-popping initial public offering for tech darling Facebook.
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Facebook's GM Problem
Tweet Share on Facebook May 16, 2012 CommentSocial media giant Facebook may barely notice the lost revenue from General Motors' decision to stop spending about $10 million per year on advertising that runs on its site. But GM's withdrawal reflects the turbulence and uncertainty that even the most successful companies face these days—especially in technology.
GM's withdrawal isn't the start of a stampede of big advertisers away from Facebook. For many companies—especially those targeting young consumers—Facebook remains an appealing place to advertise. But Facebook is not immune from market forces, and GM's decision highlights two types of pressure Facebook is likely to face in the near future as it becomes a regular company and drifts back down to Earth.
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One Lesson From Facebook IPO: Like Zuckerberg, Rule Yourself
Tweet Share on Facebook May 15, 2012 Comment (1)Facebook may or may not juice the market for promising young companies hoping to go public. But it has already set a strong example for entrepreneurs who want to build their companies into influential game-changers instead of taking a safer route—selling out to a competitor or a goliath.
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Why J.P. Morgan's Big Loss Isn't Your Problem
Tweet Share on Facebook May 15, 2012 CommentIs it a sign that the whole banking system is in trouble again? Or just a foolish mistake at one company? CBS News invited me on-air recently to discuss how the huge trading loss at J.P. Morgan Chase affects ordinary people.
Here's the clip:
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Shareholders Send Elite CEOs Running For Cover
Tweet Share on Facebook May 14, 2012 CommentBosses may not be as immune to punishment as it once seemed.
Over the last few weeks, there have been a surprising number of high-profile firings related to screw-ups, poor performance and outright deception. At J.P. Morgan Chase, for example, chief investment officer Ina Drew recently stepped down for her role overseeing a $2.3 billion trading loss that has so far knocked about $17 billion off the bank's market value. Some critics are also calling for the departure of CEO Jamie Dimon, who has acknowledged mistakes that were "egregious" and "self-inflicted."
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Where the Jobs Are, and the College Grads Aren't
Tweet Share on Facebook May 14, 2012 Comment (18)Dear Graduating Seniors: Apparently you're hosed.
It's no secret that it's a tough job market for new college grads, as it is for many other workers. But it may be worse than that. Some critics complain that today's grads are narcissistic and fragile, with fanciful expectations of easy work and high pay.
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How Winners Turn Setbacks Into Success
Tweet Share on Facebook May 11, 2012 CommentYahoo! Finance recently invited me on its Daily Ticker program with Aaron Task to talk about my new book Rebounders: How Winners Pivot from Setback to Success. Here's the clip:
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At J.P. Morgan, CEO Jamie Dimon Messes Up the Right Way
Tweet Share on Facebook May 11, 2012 Comment (6)One thing is refreshing about the way J.P. Morgan Chase has handled its gigantic $2 billion trading loss: It admitted that it screwed up.
This is novel on Wall Street. Over the last few years, we watched titans at AIG, Merrill Lynch, and Citigroup walk away with nine-figure paychecks while leaving their firms in tatters, indicating no regret whatsoever. When Lehman Brothers collapsed in 2008, CEO Richard Fuld blamed competitors, the press, and the government, but largely exempted himself for Lehman's massive mistakes. Goldman Sachs has issued one legalistic, self-righteous explanation after another in response to criticism of its Machiavellian habit of putting its own interests ahead of customers. Has it ever done anything wrong? Banish the thought.
