Opening Bell: 10.24.11

Nicolas Sarkozy tells David Cameron: shut up over the euro (Guardian)
The bust-up between Cameron and Sarkozy held up the conclusion of the EU-27 summit for almost two hours, with the French president expressing rage at the constant criticism and lectures from UK ministers. Sarkozy bluntly told Cameron: “You have lost a good opportunity to shut up.” He added: “We are sick of you criticising us and telling us what to do. You say you hate the euro and now you want to interfere in our meetings.”

Banks Squabble With EU Over Greek Debt Losses (Bloomberg)
The world’s biggest banks are squabbling with European leaders over the size of losses on their Greek bonds as they seek a deal to cut the country’s debt load, two people with knowledge of the discussions said. The financial companies, represented by the Institute of International Finance, proposed a loss of 40 percent on Greek debt, said one of the people, who declined to be identified because talks are confidential. The European Union is calling on investors to forfeit as much as 60 percent, making a compromise at 50 percent possible, the person said.

Swiss Banks May Pay Billions To US, Disclose Client Names (Bloomberg)
U.S. and Swiss officials are concluding negotiations on a civil settlement amid U.S. criminal probes of 11 financial institutions, including Credit Suisse Group AG, suspected of helping American clients hide money from the Internal Revenue Service…Switzerland, the biggest haven for offshore wealth, wants an end to new U.S. probes while preserving its decades-old tradition of bank secrecy, the people said. The U.S. seeks data on Americans who have dodged U.S. taxes and a pledge by Swiss banks to stop helping such clients, according to the people.

CIC May Co-Invest With Blackstone In Loan Portfolio (WSJ)
In another sign of China Investment Corp.’s interest in overseas real estate, the sovereign wealth fund is considering teaming up with Blackstone Group LP to buy a stake in a portfolio of distressed property loans from Royal Bank of Scotland Group PLC, people familiar with the matter say.

Jobs Admired Zuckerberg For ‘Not Selling Out’ (Bloomberg)
“We talk about social networks in the plural, but I don’t see anybody other than Facebook out there,” Jobs told biographer Walter Isaacson in excerpts of an interview released online by 60 Minutes. “Just Facebook, they’re dominating this. I admire Mark Zuckerberg,” Jobs said of Facebook’s chief executive officer on the recording. “I only know him a little bit, but I admire him for not selling out, for wanting to make a company. I admire that, a lot.”

Economists: ‘Miserable’ Euro PMI Heightens Recession Risk (CNBC)
Nouriel Roubini wrote on Twitter after the data came out that euro zone politicians were “hell-bent to commit growth harakiri” as “financial engineering without growth soon will lead to defaults and euro zone break-up.”

Vatican Calls For ‘Central World Bank’ To Be Set Up (Reuters)
The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises. The 18-page document, “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was at times very specific, calling, for example, for taxation measures on financial transactions. “The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence,” it said. It condemned what it called “the idolatry of the market” as well as a “neo-liberal thinking” that it said looked exclusively at technical solutions to economic problems…It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions.

Volcker Rule Moves From Simple To Complex (NYTimes)
In numerous interviews this week with people across the political spectrum, I couldn’t find anyone who actually supports this behemoth — including Mr. Volcker, whose name it bears. “I don’t like it, but there it is,” Mr. Volcker told me in his first public comments on the sprawling proposal. “I’d write a much simpler bill. I’d love to see a four-page bill that bans proprietary trading and makes the board and chief executive responsible for compliance. And I’d have strong regulators. If the banks didn’t comply with the spirit of the bill, they’d go after them.”

Hedge Funds Face Investor Pruning (WSJ)
An Oct. 12 survey of 150 hedge-fund investors by Barclays Capital showed that 35% of those sampled either had redeemed recently or planned to soon redeem from managers who had performed relatively poorly. Another 20% said they were still on the fence.

Banks Are Back In Takeovers (WSJ)
Commercial and industrial loans, which include leveraged loans such as the one used by Kinder, grew by 4% in September and by 35% in the third quarter over the prior-year period, according to the Federal Reserve. Commercial loans by J.P. Morgan, the largest U.S. bank by assets, rose 9% to $107.4 billion in the third quarter.

German satellite crashed in southeast Asia (Telegraph)
A defunct German research satellite crashed into the Earth somewhere in southeast Asia on Sunday, a US scientist said – but no one is still quite sure where. Most parts of the car-sized ROSAT research satellite were expected to burn up as they hit the atmosphere at speeds up to 280mph, but up to 30 fragments weighing a total of 1.87 tons, could have crashed, the German Aerospace Center said.

Rick Perry says his new economic plan will include flat tax (LA Times)
Rick Perry previewed the economic plan he will roll out on Tuesday, saying he would call for trashing the current tax code and replacing it with a flat tax, ending all earmarks, enacting a balanced budget amendment and reforming entitlements. “It’s time to get Washington out of the way in order for us to preserve the American way,” Perry said. “The American people may be bruised but they’re not broken and they want a new president who can deliver the hope and change that this one that we have today promised.” “You learn a lot growing up on a farm, it doesn’t make a difference whether it’s Wilton, Iowa, or Paint Creek, Texas,” he said. “There’s just lots you learn growing up on a farm, it’s universal. It’s the value of hard work, it’s duty to family, to country … Those values you learn on the farm are pretty good values for the president of the United States as well.”

Comments (50)

  1. Posted by eatit | October 24, 2011 at 9:01 AM

    ole!

  2. Posted by Texashedge | October 24, 2011 at 9:19 AM

    That is the worst-looking hat I ever saw. I bet when you buy a hat like that you get a free bowl of soup.

    Uh…looks good on the Pope though!

  3. Posted by Terrorists have won | October 24, 2011 at 9:21 AM

    Stupid Greek Frog.

    - a Brit

  4. Posted by Mexi_Cant | October 24, 2011 at 9:28 AM

    Better learn to speak English you fucking smelly frogs.

    -An englishman who's career has miserably taken him to SocGen

  5. Posted by Merchant Refugee | October 24, 2011 at 9:28 AM

    Woody?

    -Buzz

  6. Posted by Joe Pope | October 24, 2011 at 9:29 AM

    I the the Vatican should "step it up" too and pitch in.

    Imagine how much they could help giving up tax exemptions and contrubuting to the cause.

  7. Posted by Dr_Rosenrose | October 24, 2011 at 9:31 AM

    And the Lord said, we shall tax all financial transactions at thirty-eight basis points. Oh, and he also said the Vatican could hold the money, you know, so give it over.

  8. Posted by Mexi_Cant | October 24, 2011 at 9:39 AM

    Sur le pont davignion mother fuckers!

  9. Posted by george | October 24, 2011 at 9:39 AM

    If a satellite crashes in Southeast Asia and no one is there to see, has it crashed at all?

  10. Posted by george | October 24, 2011 at 9:41 AM

    And thou shall take this holy hand grenade and lob it unto the investment bankers, who, being naughty in my sight, shall be blown to tiny bits!

  11. Posted by la migra | October 24, 2011 at 9:46 AM

    mind your tounge mexican

  12. Posted by HungryIntern | October 24, 2011 at 9:57 AM

    Dear Vatican,

    Lets stick to what we know. We the people will continue coming up with things that fuck the world and you can continue coming up with ways to fuck little boys.

    Sincerely,
    George Jr

  13. Posted by Terrorists have won | October 24, 2011 at 10:05 AM

    MexiCANT

    Get it right.

  14. Posted by Guestor | October 24, 2011 at 10:06 AM

    Respect.

  15. Posted by PermaGuestII | October 24, 2011 at 10:09 AM

    [fill in the blank] begin at Calais.

  16. Posted by PermaGuestII | October 24, 2011 at 10:10 AM

    The Vatican is in favor of creating a universal, supranational authority to govern human affairs.

    This is news?

  17. Posted by Guest | October 24, 2011 at 10:14 AM

    No you shuddup….

    -D Cameron

  18. Posted by Anonymous | October 24, 2011 at 10:17 AM

    thou shall count three, not four, not two, unless continuing on to three…

  19. Posted by Finger pointer | October 24, 2011 at 10:20 AM

    ^^^ This guest is ten years old. ^^^

  20. Posted by HFguy | October 24, 2011 at 10:29 AM

    you waiting for Mecca to say this to consider this news.

  21. Posted by Sharia Banker | October 24, 2011 at 10:33 AM

    What will the new regime's position on interest be?

  22. Posted by Texashedge | October 24, 2011 at 10:34 AM

    I think you can go ahead and say wogs here. This isn't Russia.

  23. Posted by Where's the Beef | October 24, 2011 at 10:40 AM

    Sarkozy & Wollensky

  24. Posted by gonzaga grad | October 24, 2011 at 11:11 AM

    That photo is a virtual guarantee that my sons won't be attending catholic school.

  25. Posted by PermaGuestII | October 24, 2011 at 11:22 AM

    Never sure w that stuff.

  26. Posted by Not Me | October 24, 2011 at 11:22 AM

    Dear Cameron,

    We're having a hard time gathering people to storm Normandy. Maybe next year.

    -Bama your Mamma

  27. Posted by PermaGuestII | October 24, 2011 at 11:23 AM

    one… two… five!

  28. Posted by Pope on a Rope | October 24, 2011 at 11:23 AM

    Anybody know how to get semen stains out of a robe?

    I am actually just asking for a friend.

  29. Posted by Capt. Ahab | October 24, 2011 at 11:25 AM

    Can somebody put a harpoon through that ignorant fat fuck Michael Moore already, please?

  30. Posted by Guest | October 24, 2011 at 11:26 AM

    I said it first…

    -N Sarkozy

  31. Posted by Indulgence Peddler | October 24, 2011 at 11:31 AM

    next thing you know they'll propse this bank be HQ'd in Avignon and its overseeing clergy exempted from criminal liability

  32. Posted by Dan Brown | October 24, 2011 at 11:32 AM

    It's very subtle but i f you look closely at the picture, the Pope's head is tilted 15 degrees to the left and his eyes are pointed 25 degrees to the right which is an ancient symbol the Opus Die used to symbol a looser monetary policy.

  33. Posted by WTF__k | October 24, 2011 at 11:39 AM

    With or without the hat, and he looks like Simon Bar Sinister to me.
    http://upload.wikimedia.org/wikipedia/en/thumb/8/...

    - happily lapsed Catholic

  34. Posted by num num num | October 24, 2011 at 11:40 AM

    He's mostly enraged at this I think…a valid concern for a man of his stature
    http://www.threadbombing.com/details.php?image_id...

  35. Posted by 25th Hour Trader | October 24, 2011 at 11:45 AM

    "German satellite crashed in southeast Asia"

    This thing hit me on the head. It still felt better than listening to Michael Moore.

    -KRW trader (with a ginormous KOSPI put position) who would like to remind everyone it's better to be out of a trade and want in than the other way around.

  36. Posted by Fred | October 24, 2011 at 11:46 AM

    If the Central World Bank was in place 3-4 years ago, Thain, O'Neal, Fuld and Cayne would have never lost their jobs or faced any fear of regulatory/legal scrutiny. They would have just been shipped to regional banks in other parts of the country.

  37. Posted by Coleman | October 24, 2011 at 11:49 AM

    "Sweden? But you;re wearing leder h h hosen…"

  38. Posted by Guest | October 24, 2011 at 11:53 AM

    He looks so papal!

  39. Posted by Where's the Beef | October 24, 2011 at 12:05 PM

    Asshole, sending the SEC round to your shop.

  40. Posted by guest | October 24, 2011 at 12:23 PM

    Is today national feast or famine day?

  41. Posted by FKAFinkNottle | October 24, 2011 at 12:24 PM

    Finally a beauty contest where I can beat Jamie Dimon!

    - Brian "100 hail marys per day" Moynihan

  42. Posted by guest | October 24, 2011 at 12:38 PM

    Only if there is an altar boy around…

  43. Posted by PermaGuestII | October 24, 2011 at 12:43 PM

    Tu jouez avec les Grecques!

    -B Johnson

  44. Posted by Chuck | October 24, 2011 at 1:03 PM

    when in doubt, sell enough untill you can sleep

  45. Posted by Guest | October 24, 2011 at 1:12 PM

    And an unwanted reach around.

  46. Posted by Martin Effing Luther | October 24, 2011 at 1:18 PM

    Judging from that hat, I bet the Pope was unhappy that Texas Tech beat his Sooners in Norman.

  47. Posted by WTF__k | October 24, 2011 at 1:24 PM

    That right there is the perfect example of an under-appreciated comment.

  48. Posted by BUUUURRRPPP!! | October 24, 2011 at 1:32 PM

    Take on the wussies, why don't you.

    - Ken "100 bloody marys per day" Lewis

  49. Posted by Guest | October 24, 2011 at 1:41 PM

    I see what the Padre's done here. Noting a weakness in Goldies' market share of doing God's work, Papa Bene is trying to muscle in on the action, reaching out to bigger players to try to dominate the holy banking biz.

    Padre, have you seen the headlines that Goldies is diversifying into Shariah banking? You better make sure you try to attract the Hindus, Buddhists and Mormons to you plan too.

  50. Posted by Texashedge | October 24, 2011 at 2:20 PM

    Whoa–why you throwing Thain in there with those guys?

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