Archive for July 2011

Soros And Sons said they’d rather hand back the $1 billion than be required to register with the SEC. Read more »

  • 26 Jul 2011 at 7:35 AM

Opening Bell: 07.26.11

Deutsche Bank Q2 profits, revenues miss expectations, bank takes writedown on Greek bonds (WaPo)
The bank said Tuesday that its net income during the period rose by only 6 percent from a year ago to €1.23 billion ($1.79 billion). Over the previous quarter, net profit was down 42 percent from €2.13 billion. Diluted earnings per share of €1.24 cents per share were below the consensus prediction of €1.35 per share. Despite lower than expected earnings, the company’s shares rose after the earnings report as investors were relieved that the question of who will replace CEO Josef Ackermann has been resolved.

UBS Scraps Earnings Goal After Profit Falls 49% (Bloomberg)
Net income fell to 1.02 billion Swiss francs ($1.27 billion) from 2.01 billion francs in the year-earlier period, the Zurich-based bank said in a statement today. That missed the 1.29 billion-franc mean estimate of 14 analysts surveyed by Bloomberg. UBS shares declined…The investment bank, which already cut about 6 percent of jobs in the first quarter, may slash 700 more positions, mostly in the back office, a person familiar with the situation said.

Hedge-Fund Titan Englander Preps for Future in Sale Talks (WSJ)
Hedge-fund manager Israel Englander is in discussions to sell a minority stake in his closely held firm Millennium Management LLC, showing that hedge-fund success stories continue to draw interest from deep pockets. Known for his talent in handpicking money-making traders and for swiftly shedding those who disappoint, the 62-year-old billionaire aims to expand his business by increasing its more-than-$11 billion in assets, say people familiar with the matter.

President Obama, House Speaker Boehner present dueling debt-limit plans to nation (WaPo)
As Boehner tried to rally support for his two-step plan to cut $3 trillion in spending, Senate Majority Leader Harry M. Reid (D-Nev.) offered a strikingly similar proposal for increasing the debt limit before the Aug. 2 deadline. The two leaders, however, remained bitterly divided over Boehner’s demand to hold another vote next year to further expand the government’s borrowing authority. With financial markets warily watching the Capitol Hill drama, Obama used his 15-minute address from the White House to urge “shared sacrifice” in tackling the debt, calling for deep cuts in federal spending to be coupled with higher taxes on the wealthy and on large corporations. He slammed Boehner for calling for another vote on the issue next year, saying: “We know what we have to do to reduce our deficits; there’s no point in putting the economy at risk by kicking the can further down the road.”

Erin Burnett Tweets (EB)
Source who met w/S&P says SIZE of Boehner plan is the problem. MIGHT not be enough to avert downgrade, needs to be closer to $3TR all at once. Read more »

  • 25 Jul 2011 at 6:17 PM

Write-Offs: 07.25.11

$$$ Senate and House Still Far Apart on Debt in 2 New Plans (NYT)

$$$ U.S. default could spark CDS confusion (Reuters)

$$$ U.S. agencies look for credit rating alternatives (Reuters)

$$$ IMF calls for US to raise debt ceiling and cut spending (BBC)

$$$ Hoenig – Fed should raise rates from near zero (Reuters) Read more »

“His team stole 9 million pages of documents. If you stacked them up, that’s 2.5 Empire State buildings…we’ve got forensic experts, people who examined the computers, people who will testify to some of this. That 9 million pages is based on our examinations of the computers, of the downloads, of the printings. And they snuck it out the building. They told secretaries, ‘sneak this out.’ They had a young woman putting it in her bra.”– TCW attorney Susan Estrich [CNBC, earlier]

When we last checked in with Anshu Jain, Deutsche Bank’s head of corporate and investment banking, there were rumors that, despite rave reviews from the likes of Larry Fink and other DB shareholders, he might be passed over for the job of CEO at Deutsche for being (1) not German and (2) “a bond and derivatives technician at a time when the practices of all major banks are still being scrutinized.”

Fortunately for Jain, Deutsche Bank has come partially to its senses and named him to succeed CEO Josef Ackermann, who will step down in 2012. But to preserve DB’s Teutonic je ne sais quoi, Jain will have some homeland supervision: Read more »

Earlier this morning, Senator Corker stopped by Squawk Box to talk about the August 2 second debt ceiling deadline, and the Congressional consensus that feels like it’s never gonna come. Bob’s advice? People need to relax. “If I were all you,” the Senator told Melissa Lee and Carl Quinatilla, “I would sort of chill on debt ceiling issue for a couple of days.” Read more »

Despite the fact that there’s been a slight hold up on the Einhorn/Mets deal, most recently supposedly thanks to JPMorgan, it seems likely to happen eventually, especially since Bud Selig has fond memories of Einhorn playing baseball in his backyard. Unfortunately, not every money manager grew up next door to Bud. For example, the baseball fans at Highbridge Capital Management. Read more »

In a recent interview with New York, Lloyd Blankfein said “I’m tired of [Charlie] Gasparino. I wish he would quit.” Chaz apparently caught wind of Blankfein’s wish, and earlier this afternoon, took to Twitter to respond. Read more »