Hi Treasure Friends,
We are starting October with a bang, last month employment increased by nearly 340k; twice what economists were forecasting and defying the growth slowdown narrative...
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Do you want to make sure you are up to date with the most important economics and finance topics... Treasure has prepared for you a neat 10 charts deck to get you on top of things: here.
What the Treasure Team is reading
- Economy: As interests rates move higher 8% mortgage rates are already here for some buyers
- Finance: In an odd turn of events... Why Central Banks Will Soon Lend to Hedge Funds
- Finance: What is Liechtenstein? Europe’s Richest Royal Family Builds $300 Billion Finance Empire
- Finance: The history of ATMs The Moment Where The ATM Suddenly Made Sense
- Markets: Some word of wisdom about financial markets 15 Ideas, Frameworks, and Lessons from 15 Years
- Markets: The increase in short rates is negatively affecting the price of long dated bonds The collapse in Treasury bonds now ranks among the worst market crashes in history
- Tech: Not a bug but a feature Hallucinating machines
- Fintech: Great deep dive from QED and BCG into Fintech and embedded finance Reimagining the Future of Finance
From the Treasure chest...
September is busy for the SEC: A recent academic study examined whether performance reporting (ie the SEC end of year annual results) leads to inconsistent enforcement at the Securities and Exchange Commission (SEC). In a sample of over 13,000 SEC enforcement actions, it was shown that SEC staff respond to performance-reporting pressures and file more enforcement actions in September, the final month of the SEC's fiscal year, than in any other month. The increase in case volume in September is not fully explained by staff filing more procedural cases or accelerating case filings. Instead, SEC staff pursue less complex cases and agree to more lenient financial and non-financial sanctions to increase case volume in September. On average, the results suggest the SEC discounts financial sanctions for cases filed as settled charges in September by approximately $132,000—an economically meaningful discount, given that the average financial sanction is $270,000. It was also found an 11% lower likelihood of a large financial sanction in September. The evidence suggests that SEC staff compromise in settlement negotiations in order to file cases before the fiscal year-end.
Have a great week!
The Treasure Team
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