Proactiveinvestors USA & Canada Goldman Sachs Proactiveinvestors USA & Canada Goldman Sachs RSS feed en Mon, 24 Jun 2019 21:20:23 -0400 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Bernie Sanders introduces bill in Congress to break up six largest US banks that are 'too big to fail' ]]> US Senator Bernie Sanders (I-VT) proposed a bill in the Senate on Wednesday to break up the nation's biggest banks because their sheer size makes them a threat to the US economy if they ever fail in another economic crisis like the one in 2008.

The bill would break up the six largest banks in the country: JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), also referred to by many on Wall Street as "the money centers."

“No financial institution should be so large that its failure would cause catastrophic risk to millions of Americans or to our nation’s economic well being,” Sanders said in a statement on his website.

“We must end, once and for all, the scheme that is nothing more than a free insurance policy for Wall Street: the policy of ‘too big to fail,’” said Sanders, who narrowly lost becoming the presidential nominee of the Democratic Party in 2016 and who may run again in 2020. 

The 4 largest banks in this country (JP Morgan Chase, Citigroup, Bank of America, and Wells Fargo) are on average 80% larger today than they were before we bailed them out.

If these banks were too big to fail 10 years ago, what would happen if any of them were to fail today?

— Bernie Sanders (@SenSanders) October 3, 2018

US Congressman Brad Sherman of California will introduce a similar bill in the US House of Representatives.

“Too big to fail should be too big to exist,” said Sherman. “Never again should a financial institution be able to demand a federal bailout. Today they can claim: ‘if we go down, the economy is going down with us.’  By breaking up these institutions long before they face a crisis, we ensure a healthy financial system where medium-sized institutions can compete in the free market.”

Aside from the banks, other financial service companies such as Prudential Financial Inc (NYSE:PRU), MetLife Inc (NYSE:MET), and American International Group Inc (NYSE:AIG) will also be covered by the proposed legislation, the Sanders statement said.

If a bank is too big to fail, it is too big to exist.

Join me live as we introduce our bill to break up the largest banks in America:

— Bernie Sanders (@SenSanders) October 3, 2018

The Ssenate office of Sanders said in a statement that in the 10 years since Wall Street caused the financial crisis and was bailed out by taxpayers, the five largest banks have raked in more than $583 billion in profits. The six biggest banks have a combined total exposure of over $13 trillion which exceeds 68% of the nation’s GDP.

Under the bill, entities that exceed the 3% cap would be given two years to restructure until they are no longer "too big to fail."


“The largest banks and other highly leveraged financial institutions are simply too big — and pose a real danger to our continued economic recovery. Make them break up into smaller pieces, bringing more competition, better service and lower risks for the American economy,” said Simon Johnson, former chief economist at the International Monetary Fund and currently professor at the Massachusetts Institute of Technology. He supports the bill.  

The “too big to exist” institutions would no longer be eligible for a taxpayer bailout from the Federal Reserve and could not use customers’ bank deposits to speculate on derivatives or other risky financial activities.

As a result, JPMorgan Chase and Bank of America would be forced to shrink to where the banks were in 1998.

Wells Fargo would go down in size to where it was in 2005. And Citigroup would shrink to where it was during the second term of Bill Clinton’s administration.

Wed, 03 Oct 2018 12:18:00 -0400
<![CDATA[News - CryptoCann™ Report: Goldman Sachs CFO clarifies crypto plans; Canndescent closes US$13mln funding to move into new markets ]]> Financial institutions have been hesitant to board the cryptocurrency train, made cautious by the uncertain regulatory climate in the US.

Goldman Sachs Group Inc (NYSE:GS) announced in May that it would be opening a Bitcoin trading operation, using its own money to trade Bitcoin futures contracts with clients.

Reports surfaced earlier in the week that the finance giant was deprioritizing a crypto trading desk, but Chief Financial Officer Martin Chavez disputed those claims at the TechCrunch Disrupt conference in San Francisco, as per a CCN report.

Chavez clarified Goldman’s position on cryptocurrency while it has no plans for a physical Bitcoin market, it does have plans to develop a Bitcoin derivatives product similar to the cryptocurrency futures contract available on the CME and CBOE exchanges.

READ: Spotlight on Ethereum and Dogecoin software ‘bridge’

“Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but it’s not here yet,” said Chavez.

Chavez added that while physical Bitcoin is interesting, it is also challenging and not on the horizon just yet.

In other trading news, start-up platform Robinhood has plans for an initial public offering, as per a TechCrunch report.

The Silicon Valley-based crypto trading service is on the hunt for a chief financial officer and is working through audits from the US Securities and Exchange Commission and the Financial Industry Regulatory Authority to be sure it’s in regulatory compliance.

The platform serves a total of 5 million crypto traders, which is twice as many as rival E*Trade, according to the report.

To date, Robinhood has raised a total of US$539mln from notable investors like Andreessen Horowitz, Kleiner Perkins, Sequoia and Alphabet Inc’s (NASDAQ:GOOG)  venture capital fund Capital G.

The Cann Report

Canada is hogging the cannabis spotlight ahead of its upcoming legalization, but companies in the US are still alive and well in the space.

California cannabis cultivator Canndescent recently closed a US$13mln Series C funding round to help finance its expansion, as per a Marijuana Business Daily report.

“Our new investors share our vision of more products, more brands and more states,” said CEO Adrian Sedlin in the company’s release.

The company currently specializes in pre-rolled joints and premium cannabis flower, but is looking to offer vaporizers and edibles as well.

READ: Three hidden gems stashed away in a cannabis market that just keeps rolling higher

Up north, a Canadian university is preparing for an influx of students under the influence of marijuana.

The University of Calgary in Alberta will invite students to come down from their high in the Post-Alcohol Support Space, once reserved only for students who had one too many drinks.

“We know that combining alcohol and cannabis will compound their effects, which some might not be prepared for,” said Debbie Bucker, the university’s senior director of student wellness, in an interview with the High Times.

“We know telling someone not to take a substance doesn’t work. It’s about educating people,” she added.

The PASS facility is open on Thursday nights, a popular time for parties, and during on-campus events, staffed by a registered nurse and volunteers from the Student Medical Response unit. Academic officials or family members are not advised of any student’s stay.

Upon evaluation, students can choose to stay in the center or be transported to a hospital if necessary.

Fri, 07 Sep 2018 13:51:00 -0400
<![CDATA[News - CryptoCann™ Report: Goldman Sachs puts crypto plans on the back burner; Supreme Cannabis to up its production capacity ]]> Although cryptocurrency has trickled into the mainstream over the last few years, big banks and other financial giants have remained hesitant to join the crypto craze.

Goldman Sachs Group Inc (NYSE:GS) announced in May that it would be opening a Bitcoin trading operation, using its own money to trade Bitcoin futures contracts with clients.

The finance giant is reportedly putting the idea on the back burner for now, according to a CoinDesk report. Sources familiar with the matter have said the decision was made as a result of the uncertain regulatory situation in the US.

READ: Goldman Sachs to begin Bitcoin futures trading, says the cryptocurrency is not a fraud

In crypto mining news, Global Blockchain Mining Corp (CNSX:FORK) is up and running in Quebec and New York.

The Vancouver-based company has 9,000 Bitcoin miners and operates two facilities with 24/7 security and customized racking and cooling engineering.

"We plan to continue looking for opportunities to acquire more rigs and increase our mining capacity, we believe that we represent true leverage to an increase in the price of Bitcoin," said CEO Shidan Gouran in the company’s press release.

By the end of September, the company expects to have a total of 14,666 Bitcoin miners online.

The Cann Report

With Canada’s legalization date on the horizon, cannabis companies are taking last-minute steps to prepare for the potential surge in demand.

The Supreme Cannabis Company (CVE:FIRE) has received approval from Health Canada to increase its production capacity.

The Toronto-based company may begin cultivation on approximately 20,000 square feet of flowering rooms at is 7ACRES facility.

“This flowering room expansion continues to increase our capacity and improve our ability to meet the demand of cannabis enthusiasts upon legalization of adult use cannabis in Canada ," said CEO John Fowler in the company’s press statement.

Production capacity is expected to reach 50,000 kg once the expanded facility is fully operational.

READ: WeedMD notifies of changes in the boardroom; Pesner becomes independent director

In other Canadian cannabis news, two notable companies have announced boardroom shake-ups.

Valens Groworks Corporation (CSE: VGW) welcomed four new directors with backgrounds in finance and real estate development.

Directors John Cullen and Robert O’Brien, also the company’s chief science officer, have made their exits.

WeedMD Inc (CVE:WMD) welcomed Michael Pesner, president of Hermitage Canada Finance Inc, as an independent director and chair of the audit committee. Bruce Dawson-Scully will be stepping down from the board of directors.

The boardroom makeover sent shares of Valens Groworks up nearly 14% to C$1.68 in Wednesday afternoon trading while shares of WeedMD were down slightly to C$2.04.


Wed, 05 Sep 2018 12:14:00 -0400