When you pay a bank’s investment adviser to help you put your money in a smart place, you would hope that they would steer you to a product that best serves your interest. You’d also hope that if an investment product benefited the bank, this information would be clearly disclosed. But that’s not always the case, which is why JPMorgan Chase has to pay penalties totaling $367 million. [More]
Officials today announced they can trace May’s stock market flash crash to a single transaction. On May 6, 2010, at 2:32 pm, Waddell & Reed Financial of Kansas initiated the sale of 75,000 E-Mini Standard & Poor’s 500 futures contracts. A sale of this size, about $4.1 billion worth, would usually happen over five hours, but instead the trading algorithms sold them within 20 minutes “without regard to price or time.” At 2:42 pm, markets starting plunging 5% in five minutes.