Monday, May 14, 2012

World markets falling as financial, political uncertainly grips European countries; JPMorgan Chase bankers resign; Yahoo a CEO but not a computer science grad

The stock markets remain weak this morning as major indices are falling thanks uncertainty in Greece and the JPMorgan Chase trading debacle. The Athens Stock Exchange General Index is down over 5 percent again today with the index trading around 575-580. One year ago the index was at 1376.82, representing a 56 percent decrease in one year.

Other European markets are also falling sharply. The German DAX is down over 2 percent, as are the British FTSE 100 and the French CAC 40. It should be noted, however, that all three indices are well above their 52 week lows, reflecting a run up in prices so far this year (unlike the Greek market).

Over the weekend countless meeting were held involving party leaders as efforts continued to form a coalition government. But SYRIZA leader Alexis Tsipras continues to refuse to join unless the other parties agree to scrap the previously negotiated bailout agreement. If no agreement is achieved, a second round of balloting would take place in June.

Paul Mason of the BBC has posted backgrounder of sorts on SYRIZA this morning.

U.S. stock futures are also down on the news from Greece, but the JPMorgan Chase trading loss is also dropping stocks, with JPM trading down 1.4 percent.

The $2 billion loss, announced on Thursday, has claimed its first executives, the NYT reported this morning. Ina Drew, a 55-year-old banker, has tendered her resignation. The NYT reports Drew earned "roughly $14 million" last year, so don't shed too many tears for the veteran JPM banker. Two traders who work for Drew will be leaving, as well, according to the NYT.

On Sunday Yahoo's chief executive Scott Thompson resigned after only four months on the job, following a bit of scandal over a trumped up résumé. According to Thompson, he never submitted a résumé that that said he held a degree in computer science. But the executive search firm, smelling possible trouble, quickly disputed the claim and told Yahoo that he had, in fact, offered the résumé.

No doubt Thompson has been well rewarded for leaving his post, showing that résumé padding does, indeed, pay – at least if you are an American executive.