Opening Bell: 05.09.12

Greek Turmoil Raises Euro Risk (WSJ)
“The market is really working out what the risks are,” said Justin Knight of UBS. “It is a bit of a slow burner, but it is gathering pace.” Whether investors are right depends on a messy drama under way in Athens, in which the leading parties have been sidelined in favor of a collection of radicals bent on upsetting the painful measures that are Europe’s price for Greece’s bailout. On Tuesday, the head of Greece’s leading left-wing party, Alexis Tsipras of Syriza, took a turn at trying to form a government. His conservative counterpart, whose party won slightly more votes on Sunday, tried and failed Monday. Mr. Tsipras demanded that Greece renounce the bailout’s required Greek budget cuts, saying they were nullified by the “people’s verdict” of the election. But Mr. Tsipras’s party won just 52 of the 300 seats in parliament, and chances he could form a governing coalition appeared slim.

Roubini: Situation In Europe Is A ‘Slow Motion Trainwreck’ (CNBC)
Roubini, who warned last year that a perfect storm was coming for the global economy in 2013, said the euro zone will “eventually break up,” and expects two or three euro zone members to exit the bloc over the next few years. “Europe will be lucky if it ends up in stagnation like Japan for the next 10 years,” he added.

German Patience With Greece on the Euro Wears Thin (NYT)
“Germans are now predominantly of the opinion that they would be better off if Greece left the euro zone,” said Carsten Hefeker, a professor of economics and an expert on the euro at the University of Siegen. “If the country really is continuing on the path they are taking now, it would be hard to justify keeping them in. How do you deal with a country that says we don’t want to keep any of the commitments we have made?”

Chesapeake CEO arranged new $450 million loan from financier (Reuters)
In the weeks before Chesapeake Energy CEO Aubrey McClendon was stripped of his chairmanship over his personal financial dealings, he arranged an additional $450 million loan from a longtime backer, according to a person familiar with the transaction. That loan, previously undisclosed, was made by investment-management firm EIG Global Energy Partners, which was at the same time helping arrange a major $1.25 billion round of financing for Chesapeake itself. The new loan brings the energy executive’s total financing from EIG since 2010 to $1.33 billion and his current balance due to $1.1 billion, this person said. It was secured by McClendon’s personal stakes in wells that have yet to be drilled by Chesapeake – and by his own life-insurance policy.

Remaking Yahoo’s Board, Again (WSJ)
“Mr. Loeb has launched a proxy fight to put himself and three other new directors onto the board. It isn’t clear the Loeb team can fix the company. But at this point, shareholders should vote for his slate, given the repeated lapses in judgment by existing company leadership.”

Hot Dog Hooker ‘relishes’ her return (NYP)
Long Island’s Hot Dog Hooker was sprung from jail yesterday, and said she’ll be serving up Sabretts and stripteases from her mobile wiener wagon this morning. “I’ll be out there in my bikini top selling my hot dogs!” Catherine Scalia boasted as she strutted out of a Nassau County jail after a court appearance. Scalia was busted for prostitution last Friday for allegedly agreeing to pleasure an undercover cop for $50 after he purchased a hot dog. Judge Anthony Paradiso sentenced Scalia to seven days in prison and ordered her to undergo a psychiatric evaluation.

Green Mountain Roasted (Bloomberg)
Green Mountain Coffee Roasters said Robert P. Stiller will no longer serve as chairman after he sold shares to make a margin call. Michael J. Mardy, chairman of the company’s audit and finance committee, will serve as interim chairman.

Fannie Mae Won’t Seek Aid After Reporting $2.7 Billion Profit (Bloomberg)
FYI.

Wells Fargo Says DOJ May Seek Penalties in Fair-Lending Case (SFG)
Wells Fargo & Co., the largest U.S. mortgage lender, said federal prosecutors may seek damages and penalties after investigating whether it violated anti- discrimination laws while financing homeowners. “The Department of Justice has advised Wells Fargo that it believes it can bring claims,” the bank said today in a regulatory filing, without elaborating on potential allegations. “We believe such claims should not be brought and continue seeking to demonstrate to the Department of Justice our compliance with fair-lending laws.”

U.S. Millionaires Told Go Away as Tax Evasion Rule Looms (Bloomberg)
The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.

Comments (34)

  1. Posted by Guest | May 9, 2012 at 10:11 AM

    Good morning Dealbreaker readers! I look forward to a full day of enjoying your witticisms and thoughtful insights.

    - Guy who is having a great day

  2. Posted by Ron Paul | May 9, 2012 at 10:11 AM

    $50? See, this is what I mean about how insidious inflation is.

  3. Posted by Jimmy Bones | May 9, 2012 at 10:22 AM

    Rat fink!

  4. Posted by Guest | May 9, 2012 at 10:27 AM

    Hmmm….still struggling on the Opening Bell picture front.

    That said, Dancing hotdog > Aubrey McLendon.

  5. Posted by Guest | May 9, 2012 at 10:28 AM

    Did someone start their day at the Long Island hotdog truck?

  6. Posted by Raj | May 9, 2012 at 10:29 AM

    50 dollar hot dogs where do I sign up?

  7. Posted by Guest | May 9, 2012 at 10:31 AM

    Who spilt the beans at Green Mountain
    -CNBC headline analyst

  8. Posted by Billy Bones | May 9, 2012 at 10:38 AM

    Jim! Jimmy! Jim! Jim! Jim!

    -Guy who is Also having a great day

  9. Posted by Juan Valdez | May 9, 2012 at 10:42 AM

    The dude got roasted in the market. The company had grounds to dismiss him. I wonder what perks he had? I read the story of it after I told my son Maxwell, "House" is the best show on TV." The board told Stiller, "Folger tent and move on buddy….."

  10. Posted by Alpha generator | May 9, 2012 at 10:44 AM

    Wall Street. Where being short has its advantages. Bwahahahahaha

  11. Posted by The Truth | May 9, 2012 at 10:51 AM

    I can't even give my hot dog away for free

    - J. Travolta

  12. Posted by Guest | May 9, 2012 at 10:51 AM

    Gaapuccino?

  13. Posted by hedge fund douche | May 9, 2012 at 10:52 AM

    Long SODA / short GMCR?

  14. Posted by ShortNaked | May 9, 2012 at 10:54 AM

    Dont tempt me asshole.

    -B. Bernanke

  15. Posted by Rememberator | May 9, 2012 at 10:55 AM

    Didn't work the first time either.

  16. Posted by Texashedge | May 9, 2012 at 11:01 AM

    Just want to point out re: Green Mountain, that db has made only one short recommendation ever and just nailed it
    http://dealbreaker.com/2011/10/if-you-only-read-o

    Good work Bess. Wish I had gone all in instead of the zero dollars in that I went.

  17. Posted by Guest | May 9, 2012 at 11:04 AM

    Wrong. You've tried to pay the recipient to take your hot dog and failed.

  18. Posted by Alpha generator | May 9, 2012 at 11:05 AM

    Texas, you can get some life out of herbs. OMG….

  19. Posted by PermaGuestII | May 9, 2012 at 11:25 AM

    Go fuck yourself.

    - Guy who is not

  20. Posted by Legend follower | May 9, 2012 at 11:40 AM

    In the time of deep economic crisis, what does Bloomberg news do? Not go to Disneyland, but talk about Madonna's bacteria in its top news….

    Madonna’s Secret for Longevity Seen Aiding Bacteria Boom http://www.bloomberg.com/news/2012-05-08/madonna-

    Incidently, Bberg, is age 53 really a notable number in the Average American Female Life Expectancy scheme of things? Haven't you published this article too early by 21 years?

  21. Posted by Guest | May 9, 2012 at 11:42 AM

    Bess Levin is on of the greats.

    - Lenny Dykstra

  22. Posted by UBS MD | May 9, 2012 at 11:47 AM

    an AWOL Army private gets Citibank to send him Paul Allen's debit card, amateurs http://www.post-gazette.com/stories/news/us/feds-

  23. Posted by Aubrey McLoanden | May 9, 2012 at 11:47 AM

    How did you get wind of the Madonna "gut" story?

  24. Posted by motives | May 9, 2012 at 11:49 AM

    I'm going to talk to you like a child. If you understand me, then just say yeah.

    See, you're what happens, when you're trying to talk to car people. Like a half-hour ago. I dismissed these people years ago. And now that I'm trying to finally engage them … they have no idea what I'm talking about.

    Yeah. It's a really simple thing, but either you're kinda tweaked, but you get this joke, which I'm assuming that 90 percent of you does, or you're even more confused now. I'm just trying to be the voice of reason, guiding you to the light.

    I don't know, I've dismissed this whole game, as soon as I started talking to car people this morning. Either that's really enigmatic to you, or else you're starting to feel the Band-Aid come off.

  25. Posted by ReaganLaw | May 9, 2012 at 12:08 PM

    Perma,

    Jenna Lee, anchoring Fox News currently. It will brighten your day.

    -Guy who wasn't, took a bathroom break, and now is.

  26. Posted by Guest | May 9, 2012 at 12:18 PM

    Your monies are safe with me.

    Locutio argentea silentium aureum

    - UBS offshore onshore private banking MD

  27. Posted by Long Time Reader | May 9, 2012 at 12:34 PM

    Thank you for that. It brought back many great memories of the work of the Commentariat.

  28. Posted by PermaGuestII | May 9, 2012 at 1:12 PM

    Far more interested in learning Keith Richards' secret for longevity.

  29. Posted by Not ever | May 9, 2012 at 1:16 PM

    No.

  30. Posted by Guess | May 9, 2012 at 1:35 PM

    Heroin

    TAR

  31. Posted by Nac B | May 9, 2012 at 1:59 PM

    <img src="http://www.wsale.net/qy/oue.jpg">Looks like another bloody day today, only 1 stock on my watch list is green.<img src="http://www.wsale.net/qyl/ppa.jpg"&gt;

  32. Posted by Mike | May 9, 2012 at 2:53 PM

    My god, man.

  33. Posted by Real Trader | May 9, 2012 at 4:26 PM

    This isn't yahoo finance, wrong board pal.

  34. Posted by cheap seo services | September 10, 2012 at 4:05 PM

    Fxwbyi Looking forward to reading more. Great article post. Want more.