Daily Investment Tips

As the news of UBS $2 billion loss continues to ripple the financial markets we look back at other infamous traders who nearly brought down their employers and others like Nick Leeson who caused the collapse of Barings Bank, the United Kingdom’s oldest investment bank.

Jerome Kerviel – Former Societe Generale trader. Losses at French bank were 4.9 billion euros ($6.7 billion)

Nick Leeson – Infamous Nick caused the collapse of Barings Bank, the United Kingdom’s oldest investment bank. Nick left Baring Bank in the red for $1.4 billion. The bank went solvent.

Evan Dooley – MF Global – losses $140 million

Steve Perkins – PVM Oil Futures, losses $10 million

Alexis Stenfors – Merrill Lynch in London , losses $456 million

John Rusnak – Allied Irish Bank, losses 691 million

written by Constantine Njeru \\ tags: Allied Irish Bank, Bank Jerome, Baring Bank, Barings Bank, Collapse, Dooley, Financial Markets, French Bank, Global Losses, Investment Bank, John Rusnak, Merrill Lynch, Nick Leeson, Oil Futures, Rogue Traders, Societe Generale, Steve Perkins, Ubs

Switzerland’s UBS said on Thursday it had discovered unauthorized trading by a trader in its investment bank had caused a loss of some $2 billion.

The company did not release the name of the rogue trader. The company only said the matter is still being investigated. AP news is reporting Police in London have arrested a 31-year-old UBS trader, Kweku Adoboli, in the alleged fraud.

We can only wait to know whether Kweku will be joining the following infamous list of rogue traders:-

Jerome Kerviel – Former Societe Generale trader

Evan Dooley – Former MF Global trader

Steve Perkins – former oli trader at PVM Oil Futures

David Redmond – Former Morgan Stanley trader

Joseph Jett – former top Kidder Peabody bond trader

As for now, UBS has yet to confirm whether Kweku is the rogue trader.

written by Constantine Njeru \\ tags: Ap News, Bond Trader, David Redmond, Dooley, Fraud, Global Trader, Investment Bank, Joseph Jett, Kidder Peabody, London, Lost, Mf, Morgan Stanley, Mystery, Oil Futures, Rogue Trader, Rogue Traders, Societe Generale, Steve Perkins, Switzerland, Ubs, Unauthorized Trading

The highlight this week was Goldman Sach’s commodities recommendations report that advised clients it was time to close commodities trades it had previously recommended (a weighted basket of oil, copper, cotton, soybeans, and platinum, and individual bets on copper and platinum). Notably, the investment bank warned that, “at prices above $125 per barrel, owning oil now looks increasingly risky.

Goldman Sach’s Copper Forecast : Goldman Sach’s Platinum Forecast

The bank first recommended clients go long copper in October, with the trade returning 23 percent since then. In July 2009 the bank recommended the platinum trade, which has returned 36 percent in 21 months. Now the banks thinks this is the time to cash in.

In a more confusing analysis, Goldman said it still sees copper and platinum prices rising in the long-term, and said corrections could be used to establish new long positions.

Goldman Sach’s Gold Recommendation

Goldman Sach’s is recommending that clients remain long gold.

Data Source: CNBC Commodities news.

written by Constantine Njeru \\ tags: 21 Months, Banks, Bets, Cnbc, Cnbc News, Commodities News, Copper, Data Source, Gold Data, Goldman Sach, Goldman Sachs, Highlight, Investment Bank, Platinum Prices, Recommended Clients, Soybeans, Trades

JP Morgan investment bank published their annual JP Morgan Focus list for 2011 (JP Morgan Equity Analysts’ Focus List is a group of stocks from the bank’s analysts that they believe will provide an annualized return in excess of +20%.)

JP Morgan stock Tips for 2011

In JP Morgan Focus list for 2011 the following 13 stocks were listed as part of JP Morgan stock picks for 2011.

1. Itron (ITRI)
2. Veeco Instruments (VECO)
3. Rubicon Technology (RBCN)
4. MF Global (MF)
5. Apple (AAPL)
6. Invesco (IVZ)
7. Kraft Foods (KFT)
8. J.B. Hunt Transport (JBHT)
9. United Parcel Service (UPS)
10. U.S. Steel (X)
11. Knightsbridge Tankers(VLCCF)
12. TreeHouse Foods(THS)
13. CME Group(CME)

written by Constantine Njeru \\ tags: Aapl, Annualized Return, B Hunt, Equity Analysts, Invesco, Investment Bank, Itron, Ivz, J B Hunt Transport, Jbht, Jp Morgan, Kraft Foods, Mf Global, Stock Tips, Tankers, Treehouse Foods, United Parcel Service, United Parcel Service Ups, Ups, Veeco Instruments

written by Constantine Njeru \\ tags: Darling, Facebook, Goldman Sachs, Investing, Investment Analyst, Investment Bank, Investment Help, Investment Terms, Ipo, Lead, New York Times, New York Times Dealbook, Prelude