Federal Reserve Chairman Ben Bernanke said that since 2008, regulators have taken steps to address excessive risk taking and to limit long-term moral-hazard problems in the market. "A credible resolution mechanism for systemically important firms will be important for reducing uncertainty, enhancing market discipline, and reducing moral hazard," Bernanke said.
The New York Stock Exchange could become the top listing venue for technology firms following Twitter's successful initial public offering on the Big Board. From 1999 until 2012, Nasdaq OMX Group handled the most tech IPOs, according to Thomson Reuters data. This year, however, NYSE has debuted 19 tech firms, while 14 have chosen to go public on Nasdaq.
Staffing company Robert Half predicts accountants' salaries will increase 3.4% next year, according to its 2014 annual salary guide. Compliance officers are in high demand, along with auditors, financial managers and financial analysts. Also, soft skills and nontechnical expertise remain important to hiring companies.
The 2nd U.S. Circuit Court of Appeals in New York has ruled in favor of Lipper Convertibles investors who filed a lawsuit in 2010 against PricewaterhouseCoopers. The case alleges PwC missed warning signs during financial-statement audits. The fund was valued at $722 million prior to a review prompted by the abrupt departure of Edward Strafaci, Lipper's portfolio manager. The review found the fund was in fact worth $365 million.
Fitch Ratings warned of the dangers of bond-based exchange-traded funds increasing bond-market volatility as volumes increase, citing a Federal Reserve study focused on the adverse effects of liquidation of corporate bonds. "Other than this most recent bout of volatility, corporate bond ETFs, at their current scale, are relatively untested in a stressed environment," Fitch said.