UBS, Credit Suisse Face Tough New Capital Rules (WSJ)
At the heart of the proposals, which apply only to UBS and Credit Suisse, are stiffer capital requirements backed by new and as-yet untested bank-issued securities, as well as organizational measures to maintain essential services in payment transactions, the deposit business and lending business in the event of a crisis. Credit Suisse said Monday it is confident it can meet the higher capital requirement by 2019, while UBS maintained it is well-positioned to meet the measures within the defined timeframe. Unlike Credit Suisse, UBS will be forced to halt dividend payments for several years, in favor of using profits to bolster its capital.
Meriwether hopes to make it third time lucky (FN)
Meriwether, the man who was at the helm of the best-known hedge fund meltdown in history – LTCM – has launched his third hedge fund venture, JM Advisors. Reports circulated last October that Meriwether was planning a comeback with a US-based outfit, but he has now gone ahead and launched two funds. Both follow a global macro hedge fund strategy, according to documents filed with the US Securities and Exchange Commission. One is targeting offshore investors and the other, US investors. The decision to use this strategy marks a departure for Meriwether. His two previous hedge fund management firms – LTCM and JWM Partners – followed relative value arbitrage, borrowing large sums to make money from small anomalies in the fixed-income markets.
Goldman Opens Wallets Early (WSJ)
The bank has taken the unusual step of granting about 100 partners based in London a midyear bonus in stock, said a person familiar with the matter. Partners in London have been frustrated by their compensation, which Goldman Sachs capped in 2009 at £1 million in response to the U.K. government’s demands, said the person. A number of them left the firm over the course of the past year, said this person.
Paulson And Bulls Bounce Back (WSJ)
Mr. Paulson, who racked up losses during the first eight months of the year and was criticized for an upbeat view on markets, enjoyed gains of about 12.5% in his biggest fund in September, according to an investor. The gains would have been even greater had Mr. Paulson not pared some positions earlier this summer, because of “uncertainty regarding the economic outlook,” he told his investors.
Abby Joseph Cohen: Stocks Still Look Good, But Growth Will Be Slow (CNBC)
“We think think the probability of a double-dip has done down significantly. You can never rule anything out,” she said. “I think we’ve all learned to be very humble as economic forecasters in recent years, but we think the deceleration is related to a few factors.”
Wall Street Sees World Economy Decoupling From US (Bloomberg)
Goldman Sachs predicts worldwide growth will slow 0.2 percentage point to 4.6 percent in 2011, even as expansion in the U.S. falls to 1.8 percent from 2.6 percent.
Impalement Artist Takes a Stab at the ‘Wheel of Death’ (WSJ)
In this stunt, assistant Melissa-Anne Ainley will not only be covered up, but also strapped to an upright wheel that spins. The Great Throwdini will then fling blade after blade around her unseen, rotating body. The wheel dare has been performed only a handful of times. “It is insanity,” says Carl Geddes, organizer of San Diego Chuckers, one of the longest-running knife-throwing competitions in the U.S.
AQR’s New Risk Parity Play (CNBC)
Cliff Asness says he wants you to call him a “fat geek.” Also, he’s starting a new mutual fund. Continue reading »
Billionaire hedge fund manager Leon Cooperman was on Squawk Box this morning discussing a whole mess of issues, including a recent pledge to give away nearly all his money to charity. Cooperman has signed on to the Buffett/Gates initiative to donate half his wealth but today he told CNBC, “Every dollar I make, I’ll give it away because what I’ve planned to leave to my children, that’s already been set.”
