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What you need to know on Wall Street today

Aug 16, 2018, 21:27 IST

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

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The legendary investor who predicted the past 2 bubbles breaks down how the 9-year bull market will end

In late 2017, the investing legend Jeremy Grantham was officially on bubble watch.

He said as much in a quarterly letter he coauthored for his firm, Grantham, Mayo, & van Otterloo (GMO), back in December. It wasn't an extremely pressing concern quite yet but something in the back of his mind.

That all changed in January when, as he describes it, stories of investor overconfidence became too numerous to ignore.

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Grantham's favorite anecdote came courtesy of the bus one of his Boston-based colleagues would take to work from New Hampshire. Every morning, an elderly woman would see the GMO employee reading financial literature and ask questions.

A former Tesla engineer says the company silenced her entire team after they brought up safety and quality issues

In early August, a former Tesla process technician, Martin Tripp, countersued the company.

Tripp claims that Tesla, which filed a lawsuit against him in June, falsely accused him of hacking into the company's operating system. He also alleges Tesla waged a smear campaign against him in order to silence his claims of poor part quality and waste at the company.

For another former Tesla employee, Cristina Balan, Tripp's story feels familiar.

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Balan began working for Tesla as an engineer in 2010. In a series of interviews with Business Insider, Balan said she was pushed out of Tesla four years later.

Turkey's turmoil blew a $19 million hole in one trader's account - here are the winners and losers from the crisis

Markets have been gripped by the developing crisis in Turkey over the last few weeks.

The country's currency plummet, contagion spread to other emerging markets, and a war of words broke out between President Erdogan and President Trump.

Traders love a crisis. A crisis tends to create volatility, which creates the opportunity to make larger sums of money by betting on price moves. The reverse, of course, is also true: losses tend to be greater in times of volatility.

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It's no different with the Turkey situation, with several media reports of large financial institutions making and losing large sums of money.

Emails show RBS bankers joked about destroying the US housing market before 2008

Royal Bank of Scotland (RBS) bankers joked about destroying the US housing market and senior staff described the loans they were trading as "total f***** garbage," according to transcripts released by the US Department of Justice.

Email and call transcripts in a DOJ report released on August 10 as part of a $4.9 billion settlement with RBS show the bank's chief credit officer in the US said the loans they were selling were "all disguised to, you know, look okay kind of … in a data file."

He went on to say that the products being sold were "total f****** garbage" loans with "fraud [that] was so rampant … [and] all random."

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The US Department of Justice criticized the bank for its conduct and trade in residential mortgage-backed securities (RMBS), which played a central role in the crisis.

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