Free Republic

One of the most popular measures of volatility is being manipulated, charges one individual who submitted a letter anonymously to the Securities and Exchange Commission and the Commodity Futures Trading Commission. The letter makes the claim to regulators that fake quotes for the S&P 500 index SPX, +0.26% are skewing levels of the Cboe Volatility Index VIX, -2.50% which reflects bearish and bullish options bets 30-days in the future on the S&P 500 to gauge implied stock-market volatility (see excerpt from the letter below). The flaw allows trading firms with sophisticated algorithms to move the VIX up or down by...

The U.S. Treasury is struggling with how to handle any political or Islamic ramifications as Persian Gulf sovereign wealth funds look to make substantial investments in capital-poor American banks and securities firms. The crisis in mortgage-backed securities has created a need for new capital to enter financial markets after major financial institutions such as Bear Stearns and Carlyle Capital Corp. failed over the weekend. The crisis is an opportunity for sovereign wealth funds that have prospered as the price of oil has soared over $110 a barrel. WND previously reported sovereign wealth funds in six Persian Gulf countries, including Kuwait,...