CFA Society Chicago NewsBrief
Oct. 7, 2014

American banks pile up treasuries as deposits surpass loans
Bloomberg
American banks are loading up on U.S. government debt, a sign they remain cautious on the economy even with the jobless rate at a six-year low and corporations at their healthiest in a generation. Commercial lenders increased their holdings of Treasuries and debt from federal agencies in September by $54 billion to an unprecedented $1.99 trillion, data from the Federal Reserve show. Banks have now been net buyers for 12 straight months.More

Jeremy Siegel: Nicholas Molodovsky Award winner
CFA Chicago
Jeremy Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. In addition to being one of the most respected business school professors in the nation, Siegel has a long and storied career in finance, as well as highly-acclaimed books on investments. Join CFA Chicago for the Jeremy Siegel Distinguished Speaker Series, on Nov. 13. The event will be held from 12 p.m. - 1 p.m. at The University Club. Tickets will sell quickly, so register today.More

Take the guesswork out of networking: Progressive networking luncheon
CFA Chicago
Join CFA Chicago on Wednesday, Nov. 12 for a progressive networking luncheon at Petterino's. The luncheon will feature a three-course meal, and attendees will switch tables after each course. Please bring at least 50 business cards, marketing materials to pass out, and prepare your two minute "elevator speech" about yourself.More

Note to advisers and clients: Put your investment plan in writing
CFA Institute's Enterprising Investor
Pop quiz for financial advisers: Do you help your clients write an Investment Policy Statement (IPS)? And, for investors: Do you insist on drawing up an IPS with input from your adviser? If not, why not? Whether you are a financial adviser or an individual investor, an IPS is the cornerstone of any investment process.More

Bernanke, Paulson and Geithner face grilling over AIG bailout
The Wall Street Journal
Out of office and six years after the events unfolded, former Federal Reserve Chairman Ben S. Bernanke and other architects of the U.S. government’s response to the financial crisis are likely to get their toughest grilling yet. The questions won’t be from government investigators or lawmakers. Instead, they will come from prominent lawyer David Boies as he pursues a lawsuit brought by former American International Group Inc Chief Executive Maurice R. “Hank” Greenberg. More

There's always a small-cap bull market somewhere
Investing Daily
The nice thing about investing in small-cap stocks is that you can always find a bull market somewhere. While it’s true that small-cap stocks in the United States have been underperforming in recent months, it’s equally true that there are lots of good opportunities if you cast a more global net. More

Big Pimco investors: In search of redemption?
The Wall Street Journal
From the moment Bill Gross quit, the investing world has been speculating on how much money might flee his Pimco Total Return Fund, the world’s largest bond fund. Would there be a mutual-fund equivalent of a run on the bank? Would Pacific Investment Management Co. be able to meet withdrawal requests without roiling markets as it sold assets to raise cash?More

Chicago feds crack down on high-speed trading
Crain's Chicago Business
Federal regulators in Chicago raised the stakes for high-speed traders, with the first criminal indictment for “spoofing.” The U.S. Attorney's Office in Chicago indicted New Jersey-based Panther Energy Trading LLC owner Michael Coscia on 12 counts of fraudulent and manipulative trading, alleging that he profited illegally from an ultra-fast scheme to place, but then rapidly cancel, futures contract trades. The grand jury charges were filed in U.S. District Court for Northern Illinois.More

Top dog in Chicago banking? It's still Chase
Crain's Chicago Business
Bank mergers shook up the pecking order of Chicago's banking industry over the past year, but the top five deposit holders are unchanged from a year ago, according to newly released data. JPMorgan Chase & Co. added to its leading local deposit market share in the year ended June 30, boosting deposits in its 397 area branches by 15 percent to $87.9 billion, or 24.8 percent, according to the Federal Deposit Insurance Corp.'s annual update of bank deposits.More

American banks pile up treasuries as deposits surpass loans
Bloomberg
American banks are loading up on U.S. government debt, a sign they remain cautious on the economy even with the jobless rate at a six-year low and corporations at their healthiest in a generation. Commercial lenders increased their holdings of Treasuries and debt from federal agencies in September by $54 billion to an unprecedented $1.99 trillion.More

Which Chicago startup will be next with an IPO?
Crain's Chicago Business
The IPO market in the U.S. is dot-com hot and so are the prospects for Chicago companies hopeful for the big payday that comes by going public or getting acquired. More than two dozen technology companies could be IPO candidates or takeover targets, based on conversations with venture capitalists, investment bankers and entrepreneurs.More

Jeremy Siegel vs. Zvi Bodie: Does equity risk decrease over time?
Value Walk
Stocks should be the asset class of choice for the long run, according to Wharton Professor Jeremy Siegel — and he has provided the data to prove it. But that paradigm has been challenged by Boston University Professor Zvi Bodie and others, who have shown that stocks become riskier the longer one owns them. More

Chicago pension crisis balloons, underscoring calls for reform
Chicago Sun-Times
Chicago’s unfunded pension obligations have ballooned to $37.3 billion — a more than three-fold increase since 2003 — because of inadequate employer contributions, declining investment income and a shrinking base of active employees, a taxpayers’ watchdog group has concluded.More

Approval process delays H&R Block banking sale
The Associated Press via Chicago Sun-Times
H&R Block’s latest attempt to sell its banking business is getting bogged down in the regulatory process and shares slumped 6 percent after the tax preparer said it would not be able to complete the deal before the next tax season. “We are extremely disappointed with this development,” H&R Block CEO Bill Cobb said in a news release. “However, we remain committed to exiting our bank and forming a long-term relationship with BofI.”More