Jobless Claims In U.S. Decrease (Bloomberg)
Applications for jobless benefits decreased by 35,000 in the week ended July 21 to 353,000, Labor Department figures showed today. Economists forecast 380,000 claims, according to the median estimate in a Bloomberg News survey.
Big Bank Pioneer Now Seeks Breakup (WSJ)
“I am suggesting that they be broken up so that the taxpayer will never be at risk, the depositors won’t be at risk,” Sandy Weill said in a TV interview on CNBC yesterday. “Mistakes were made,” he added a few seconds later.
Chris Dodd: Sandy Weill Wrong, ‘Simplistic’ to Break Up Banks (CNBC)
The author of the historic and controversial Dodd-Frank financial legislation staked out different territory from Weill, arguing that “it’s not just the size of an institution,” but the amount of risk carried on its books. Dodd said that forcing all large banks to downsize was “too simplistic,” saying that Weill was wrong to call for an end to financial supermarkets. “Just breaking up the banks is not the solution,” he said.
Nomura CEO To Resign Over Insider Trading Scandal (WSJ)
Kenichi Watanabe, Nomura’s chief executive, and Takumi Shibata, its chief operating officer, are planning to relinquish their posts following admissions that Nomura salespeople allegedly gave information on share offerings to customers before it was public, a person familiar with their thinking said Thursday.
Billionaires’ Superyachts Anchor In Thames For Olympics (Bloomberg)
Octopus, the yacht owned by Microsoft co-founder Paul Allen, is moored at West India Dock, where the towers housing Barclays Plc and HSBC Holdings Plc reflect in its gleaming blue hull. Next to it is Westfield Group Chairman Frank Lowy’s white ship Ilona, with a red carpet leading to the gangplank and an Australian flag billowing from the stern. “We’ve seen some big boats here, but nothing of this magnitude,” said Derek Newell, an analyst at Lehman Brothers International, the remnants of the U.S. investment bank that’s in administration, as he pointed up to Allen’s vessel. “It’s like a small ferry.”
Central Banks Search Toolbox For Ideas As Growth Slows (Bloomberg)
Among the options up for consideration by the monetary authorities in addition to potentially doubling-down on previous policies: taking some of the credit risk of new lending onto their own balance sheets and forcing commercial banks to pay for parking cash in central banks’ coffers.
Fidelity Joins BlackRock In Weighing Libor Action Against Banks (Bloomberg)
Libor-related litigation “has the potential to be the biggest single set of cases coming out of the financial crisis because Libor is built into so many transactions and Libor is so central to so many contracts,” said John Coates, a professor of law and economics at Harvard Law School in Cambridge, Massachusetts.
Perella To Settle Citigroup-Morgan Stanley Valuation Spat (NYP)
Citigroup and Morgan Stanley hired Perella Weinberg Partners to settle a dispute over how much their Morgan Stanley Smith Barney joint venture is worth. The two New York-based banks are asking Perella Weinberg to value a 14 percent stake that Citigroup plans to sell to Morgan Stanley. Morgan Stanley already controls 51 percent of the unit, with Citigroup holding the rest.
Draghi Says ECB Will Do What’s Needed To Preserve Euro (Bloomberg)
11 year-old boy jets from England to Italy without passport, boarding pass (NYDN)
Liam Corcoran snuck through five security checks at Manchester Airport Tuesday afternoon by pretending to travel with other families, the Manchester Evening News reported.
Corcoran’s adventure began earlier Tuesday when he ran away from his mother during a shopping trip. He went straight to an airport about three miles away where he passed through security checks unnoticed and boarded a Jet2.com flight headed toward the Eternal City. Corcoran reportedly wasn’t asked to show a ticket stub to get on the Jet2 plane and the crew failed to take a headcount of the passengers, letting the boy slip through the cracks once again. The plane captain only became aware of the boy when other travelers became suspicious during the flight. Corcoran remained on the plane until it landed at Rome Fiumicino Airport, but the plane turned right back around to Manchester where the boy was reunited with his family Tuesday evening. “He was very talkative and seemed quite un-fazed by it all. He was just sat there chatting away about how he’d been trying to run away from home,” said passenger Sarah Swayne, who was on the returning flight, according to the Manchester Evening News.