Staff Editor

Bangladesh minister says wants to ‘wipe out’ Manila bank for heist role

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Bangladesh’s finance minister said late on Saturday he wanted to “wipe out” a Philippines bank that was used to channel $81 million stolen from the Bangladeshi central bank’s account with the Federal Reserve Bank of New York last year.

Abul Maal A. Muhith was responding to questions from reporters about a Reuters story on Friday that said Bangladesh Bank had asked the New York Fed to join a lawsuit it was considering filing against Manila-based Rizal Commercial Banking Corp (RCBC) seeking damages.

“The Bangladesh Bank has taken a decision (on filing a suit). They will let me know. We haven’t so far taken any steps as the Philippines government was taking care of it (investigating the heist),” Muhith said.

“But it seems Rizal bank has been playing delinquent. We want to wipe out Rizal bank from the world.”

Muhith did not elaborate. He did not respond to requests seeking comment.

Unidentified hackers stole the money using fraudulent orders on the SWIFT payments system. The money was sent to accounts at RCBC and then disappeared into the casino industry in the Philippines.

Nearly two years later, there is no word on who was responsible and Bangladesh Bank has been able to retrieve only about $15 million, mostly from a Manila junket operator. (https://reut.rs/2jk1W74)

The Philippine central bank fined RCBC a record one billion pesos ($20 million) last year for its failure to prevent the movement of the stolen money through it.

RCBC has said it would not pay any compensation to Bangladesh Bank and that Dhaka bank bore responsibility for the theft since it was negligent.

RCBC did not immediately respond to a request seeking comment on a Sunday about Muhith’s comments.

SoftBank’s Saudi Ties Could Mean Cash After Kingdom’s Crackdown

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  • Crown Prince, key backer of Vision Fund, consolidating power
  • But a reversal may raise questions about continued investment

Billionaire Masayoshi Son may be getting closer to achieving his dream of making SoftBank Group Corp. the world’s biggest investor in technologies. The reason has to do with the main patron of Son’s $100 billion investment plan, Saudi Arabia’s Crown Prince Mohammed bin Salman.

 

Don’t Give Up On These 5 Top Stocks Just Below Buy Points

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Sometimes a stock will break out, but then not make much progress. Within a few hours, days or weeks, it dips just below the buy point, which remains valid. Netflix (NFLX), Citigroup (C), Verizon Communications (VZ), Delta Air Lines (DAL) and MGM Resorts International (MGM) are all just below buy points after pulling back from breakouts.

Netflix cleared a 195.05 cup-with-handle buy point on Oct. 5. Shares held above that level for several weeks, finding support at their 50-day moving average for several weeks in November. But Nov. 29, Netflix shares tumbled that old buy point and their 50-day. Shares drifted lower for a few days before edging higher over the last four sessions to end the week at 188.54.

Netflix’s chart is complicated. Technically, the 190.05 buy point is still valid, but it lies below the 50-day line, which is modestly above 193. Netflix also has a new flat base with a 204.48 entry.

Citigroup

Citigroup cleared 76.24 flat base, really a base-on-base formation, on Dec. 4, but then fell for the next three days. Citigroup climbed 1% to 75.71.

JPMorgan Chase (JPM) and Bank of America (BAC) are both extended from recent breakouts.

Verizon Communications

Verizon cleared a 51.28 V-shaped bottoming base on Dec. 4, but then fell for the next three sessions. The Dow industrials component rose 1.3% to 51.09 on Friday.

Delta Air Lines

Delta Air Lines cleared a 54.16 cup-with-handle entry intraday on Dec. 4 and Friday, Dec. 8, but was unable to close above that level.

Delta reported strong November traffic on Dec. 4, with Southwest Airlines (LUV) and United Airlines (UAL) raising key revenue guidance later in the week.

MGM Resorts International

MGM Resorts broke out past a 33.69 cup-with-handle buy point on Nov. 24, but since then has moved back and forth from that entry. Shares fell through their 50-day line on Dec. 6, and closed Friday at 33.18.

MGM’s Relative Strength line has been lagging for the past several months, reflecting the stock’s underperformance vs. the S&P 500 index.

MGM Resorts is less exposed to Macau, the world’s biggest gambling market, than Las Vegas Sands (LVS), Wynn Resorts (WYNN) and Melco Resorts (MLCO). Those 3 casino stocks are all extended from recent breakouts.

Bitcoin futures trading begins on CBOE exchange in Chicago

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It launched on the CBOE Futures Exchange in Chicago at 23:00 GMT Sunday, allowing investors to bet on whether Bitcoin prices will rise or fall.

In the lead-up to its futures debut, the value of the digital currency has surged.

Bitcoin’s introduction to the CBOE has been seen by some as a step towards legitimising the currency.

The move is expected to be followed next week by a rival listing on the Chicago Mercantile Exchange.

Anticipation of the first mainstream listings have helped the controversial currency soar past $10,000 and then over $17,000 on Thursday before retreating. Bitcoin was trading at about $15,230 on Monday, according to Coindesk.com.

Nick Colas, of Data Trek research, said the futures listings gave Bitcoin “legitimacy – it recognises that it’s an asset you can trade”.

Futures are a type of derivative contract that allows trading based on movements in Bitcoin prices, without requiring ownership of the currency itself.

The start of the CBOE market was low key, with “no champagne”, an exchange insider said.

However, CBOE tweeted to warn that its website was running slowly and could be temporarily unavailable, but that all trading systems were operating normally.

What is Bitcoin?

  • It is a digital “alternative” currency that mostly exists online and is not printed or regulated by central banks
  • Bitcoins are created through a complex process known as “mining” and then monitored by a global network of computers
  • About 3,600 new Bitcoins are created each day, with about 16.5 million now in circulation
  • Like all currencies, its value is determined by how much people are willing to buy and sell it for

The CBOE and CME launches were made possible following approval by the US Commodities and Futures Trading Commission (CFTC).

However, the regulator has warned investors about the “potentially high level of volatility and risk in trading these contracts”.

Cameron and Tyler Winklevoss
Image copyright GETTY IMAGES Image caption Cameron and Tyler Winklevoss were early Bitcoin investors

Its supporters include the Winklevoss twins, who have been called the first Bitcoin billionaires, while critics include CNBC financial commentator Jim Cramer.

He argues that futures trading opens the door to “short sellers” that bet on downward moves in asset prices.

Bitcoin is not regulated by any country’s central bank and has no universally recognised exchange rate.

CBOE said trading will be suspended for two minutes if Bitcoin prices rise or fall by 10% in a bid to reduce wild fluctuations.

“We are committed to continue to work closely with the CFTC to monitor trading and foster the growth of a transparent, liquid and fair Bitcoin futures market,” the CBOE said.

The Futures Industry Association, which includes some of the world’s biggest derivatives brokerages, has criticised the CFTC’s decision, arguing that insufficient attention has been paid to the risks involved.

Bitcoin Futures Surge As Cboe Trading Starts In Cryptocurrency Milestone

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Bitcoin futures launched on Cboe Global Markets Sunday, with the cryptocurrency surging. January Bitcoin futures rose 15% to $17,840 in active trading.

Bitcoin’s big 2017 run has intensified in recent weeks, rapidly rising from $10,000 to last week clearing $17,000 last week — above $19,000 on some spot-price platforms — before pulling back. Bitcoin was trading at $16,270.93, CoinDesk, up 8% vs. a day earlier.

Bitcoin futures trades, via the symbol XBT, will have zero transaction fees through December. Cboe is getting a jump on CME Group (CME). CME Bitcoin futures launch on Monday, Dec. 18.

Bitcoin futures are a major milestone, showing that the digital currency now has the acceptance of major financial exchanges. Futures should boost liquidity for the cryptocurrency, making it a more acceptable investment vehicle. But some of that liquidity will come from investors getting a chance to short Bitcoin.

Goldman Sachs (GS) will clear Bitcoin futures trades for clients. But JPMorgan Chase (JPM) and Citigroup (C) reportedly will not, at least to start. JPMorgan Chase CEO Jamie Dimon last week said that he remains “highly skeptical” of the cryptocurrency, after previously calling it a “fraud.” Goldman CEO Lloyd Blankfein recently said that Bitcoin “doesn’t feel like a currency.”

TD Ameritrade (AMTD) is among the brokerages that will make Bitcoin futures contracts available for individual investors.

It’ll be interesting to see the impact of Bitcoin futures on Bitcoin Investment Trust (GBTC). The Bitcoin investment vehicle has been a Bitcoin proxy for investors.