Opening Bell: 11.08.12

On Wall Street, Time To Mend Fences With Obama (NYT)
Del Frisco’s, an expensive steakhouse with floor-to-ceiling windows overlooking the Boston harbor, was a festive scene on Tuesday evening. The hedge fund billionaires Steven A. Cohen, Paul Singer and Daniel Loeb were among the titans of finance there dining among the gray velvet banquettes before heading several blocks away to what they hoped would be a victory party for their presidential candidate, Mitt Romney. The next morning was a cold, sobering one for these executives. Wall Street, however, now has to come to terms with an administration it has vilified…Few industries have made such a one-sided bet as Wall Street did in opposing President Obama and supporting his Republican rival. The top five sources of contributions to Mr. Romney, a former top private equity executive, were big banks like Goldman Sachs and JPMorgan Chase, according to the Center for Responsive Politics. Wealthy financiers — led by hedge fund investors — were the biggest group of givers to the main “super PAC” backing Mr. Romney, providing almost $33 million, and gave generously to outside groups in races around the country. On Wednesday, Mr. Loeb, who had supported Mr. Obama in 2008, was sanguine. “You win some, you lose some,” he said in an interview. “We can all disagree. I have friends and we have spirited discussions. Sure, I am not getting invited to the White House anytime soon, but as citizens of the country we are all friendly.” “Wall Street is now going to have to figure out how to make this relationship work,” said Glenn Schorr, an analyst who follows the big banks for the investment bank Nomura. “It’s not impossible, but it’s not the starting point they had hoped for.”

Morgan Stanley Reassures Its Bankers (WSJ)
The New York bank said Monday that investment-banking chief Paul Taubman would leave the firm at year-end. Mr. Taubman was passed over for a new job overseeing both the trading and investment-banking operations, people involved in the process said. The position went to Colm Kelleher, who has overseen sales and trading. To calm nerves and soothe egos among the firms’ bankers, Morgan Stanley gathered its new team of investment-banking leaders in New York this week. Mr. Kelleher and one of his new banking lieutenants, Franck Petitgas, traveled from their London office, and Mr. Petitgas spent much of the week meeting with managers in the investment-banking division and senior bankers, people familiar with the discussions said. Top executives reassured senior bankers Monday that the investment-banking business was a priority for Morgan Stanley. In a memo to employees, Chief Executive James Gorman said Morgan Stanley would “continue to build on our leadership position in investment banking and capital markets.” The messages came as some rank-and-file bankers at Morgan Stanley privately expressed surprise and dismay at the news from Mr. Taubman, who announced his departure to colleagues in an emotional meeting Monday with Messrs. Kelleher and Gorman in attendance.

Wall Street Trades Foiled Romney Dreams For Bowles Hopes (Bloomberg)
Wall Street executives who lost a bet that Republican Mitt Romney would defeat President Barack Obama are bracing for tougher regulation and hoping a deal can be struck with Congress to cut the deficit. Obama’s choice to succeed Treasury Secretary Timothy F. Geithner will be watched closely for signs about the administration’s approach to business and the deficit, industry executives said. Erskine Bowles, who served as chief of staff under former President Bill Clinton, would be a sign that Obama is willing to endorse a bipartisan debt-reduction plan supported by many business leaders, they said. “With the appointment of the Treasury secretary, Obama will be sending an important message to the public and to the foreign governments who own a lot of Treasuries,” Curtis Arledge, chief executive officer of Bank of New York Mellon Corp.’s investment-management arm, which oversees $1.4 trillion, told journalists in New York yesterday. “If he goes with somebody like Erskine Bowles, then the message will be that he cares about the deficit and is serious about cutting it.”

Focus Shifts To Fiscal Cliff (WSJ)
Barry Knapp, head of U.S. equity portfolio strategy at Barclays, turned more bearish after seeing the election results, arguing that the risk of fiscal-cliff disaster increased to more than half, from about 30% before. “When I look at what happened, I see a government that grew farther apart, which might be worse than the status quo,” Mr. Knapp said. “The risk of going off the cliff has just gotten huge.”

Jobless Claims Fall (WSJ)
Initial jobless claims, which are a measure of layoffs, decreased by 8,000 to a seasonally adjusted 355,000 in the week ended Nov. 3, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires expected 365,000 new applications for jobless benefits.

Greek Jobless Rate Hits New High (WSJ)
Elstat, the Greek statistical agency, Thursday said the seasonally adjusted rate of unemployment increased to 25.4% from 24.8% in July and 18.4% in August 2011. That was just below the 25.5% unemployment rate recorded by Spain in the same month, the highest in the European Union.

Herd of elephants go on drunken rampage after mammoth booze up (Metro)
The trunk and disorderly mammals ransacked a shop, three houses and ruined crops in the eastern village of Dumurkota, India. Police say the gang of over-the-limit tuskers downed more than 500litres of moonshine alcohol, managing to drink the place dry in a matter of minutes. The unruly mob demolished dozens of houses in their desperate hunt for more booze after hoovering up the hard stuff in record time. Local police officer Asish Samanat said the drunken elephants were more ‘aggressive’ than usual after their mammoth drinking session. ‘Unfortunately these animals live in close proximity to man and they recognised the smell of the drink,’ he explained. ‘They were like any other drunk – aggressive and unreasonable but much, much bigger.’

ECB Stands Ready to Buy Bonds as Economy Weakens (Bloomberg)
“We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” Draghi said today at a press conference in Frankfurt after policy makers left the benchmark interest rate at a historic low of 0.75 percent. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate,” he said.

SocGen CEO Blames ‘Stupid’ Accounting for Profit Drop (CNBC)
“Exceptional items are related in particular to this stupid accounting thing which means that when you have a credit that is improving, your CDS is going down and you have to recognise negative revenues,” Frederic Oudea told CNBC in Paris. SocGen’s third-quarter net profit was 85 million euros, down by 86 percent on the same period in 2011, after losses on asset sales. That was lower than analysts’ mean estimate of 139.1 million euros.

Blackstone Leads Hedge Funds Attracting Bond-Rally Bears (Bloomberg)
Funds that bet on both gains and losses in credit attracted $12.6 billion of deposits in the three months ended Sept. 30, the most since the period ended Dec. 31, 2007, according to HFR. Blackstone Group LP raised $4.05 billion during the period for its debt unit, which includes so-called long-short funds. Panning Capital Management, which was founded by Kieran Goodwin this year, started such a fund on Nov. 1 with $500 million.

Two-Tier Global Housing Market Could Lead to Bubble: Goldman (CNBC)
In a report titled: “Just don’t look down some house markets are flying again” Goldman argues easy money policies by the world’s major central banks has had a ripple effect on countries which have avoided the worst of the global financial crisis, boosting their house prices. According to Goldman, there now exist housing “high-flyers” – countries that have experienced real house price increases and “low-lyers” – countries where the housing market downturn appears to be more protracted. “High flyers” include Germany, Finland, Norway, France, Switzerland and Israel as well as Canada and Australia. The “low lyers” include the U.S., and the euro zone periphery of Spain, Greece, Italy and Ireland- but also those places where prices fell in the post-crisis period but have since stabilized such as the U.K., Japan and Denmark.

Judge throws Dallas attorney back in jail after his Design District office trashed, vandalized with obscene drawings (DN)
Attorney Tom Corea was charged earlier this year with four felonies alleging he stole from his clients. He was arrested, posted bond and was released. Weeks later, he was evicted for not paying rent for his upscale office in the 2000 block of Farrington Street near Interstate 35E and Market Center Boulevard, according to testimony before state District Judge Mike Snipes. Corea was ordered out by Oct. 31. When the president of the real estate company that represents the building, Doug Molny, showed up the next day to check out the property, he found “complete destruction,” including “penis graffiti on every single wall throughout the building,” Molny said. Written next to some of the penises was the name Doug. Molny said it appeared someone took a sledgehammer to granite counters. Additionally, doors, light fixtures, cabinets and appliances were destroyed or removed.

94 comments (hidden to protect delicate sensibilities)
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Comments (94)

  1. Posted by L. Dykstra | November 8, 2012 at 10:11 AM

    I find it absolutely tasteless that Doug found a need to sign his work

  2. Posted by Cliff Assness | November 8, 2012 at 10:17 AM

    Coleman, my Hedgefund failed and it was all because of this terrible, awful Negro.

  3. Posted by THEBro | November 8, 2012 at 10:19 AM

    His name is Doug too. Ha. Classic mix up!

  4. Posted by guy | November 8, 2012 at 10:20 AM

    wipe that smug look off your face

  5. Posted by guesticles | November 8, 2012 at 10:22 AM

    Sorry, that's what you get to do when you get elected president. Bitch.

  6. Posted by Guest of a guest | November 8, 2012 at 10:23 AM

    What's more fearsome, hurricane sandy or a herd of shit-tanked elephants?

  7. Posted by Mowgli | November 8, 2012 at 10:23 AM

    The pachyderms obviously were not pleased with the election results.

  8. Posted by guest | November 8, 2012 at 10:24 AM

    Did he tell you to load up on AAPL?

  9. Posted by Mitt Romney | November 8, 2012 at 10:25 AM

    @9:30, huh? How do I get a hold of this amazing time machine of yours…

  10. Posted by guest | November 8, 2012 at 10:27 AM

    Please familiarize yourself with Trading Places quotes before commenting on this thread…

  11. Posted by Swiss hedge | November 8, 2012 at 10:29 AM

    New Senior post to fill at NY based Fund of Hedge Funds;

    Chief Redemption Officer,

  12. Posted by Guest | November 8, 2012 at 10:31 AM

    Hot tub. Come on in for a soak.

    -wall vaginas

  13. Posted by Guest | November 8, 2012 at 10:31 AM

    "On Wall Street, Time To Mend Fences With Obama"

    I'm not on Wall Street any more, but we're actually still on very good terms.

    – J. S. Corzine

  14. Posted by ARTIE Help | November 8, 2012 at 10:32 AM

    AHHA contributor on CNBC owes me money, pay your bills.

  15. Posted by Guest | November 8, 2012 at 10:33 AM

    Obama hates snow.

  16. Posted by guest | November 8, 2012 at 10:33 AM

    Paul Singer? Cliff Asness? Is that you?

  17. Posted by Bejujular | November 8, 2012 at 10:36 AM

    What are we chopped liver?

    -Laid off Monitor employees

  18. Posted by PermaGuestII | November 8, 2012 at 10:37 AM



  19. Posted by guest | November 8, 2012 at 10:43 AM

    Hell yes!

    -Todd Akin, Richard "was endorsed by Romney" Mourdock et al AKA the pride of the GOP

  20. Posted by Matt's Agent | November 8, 2012 at 10:45 AM

    Hey Frederic, if you and the folks at SocGen would like some help with phrasing your thoughts on DVA a bit more eloquently, I know a guy who might be able to help you out, see:

    *Charts cost extra, all fees are quoted in either Deutsche Marks or physically settled massive absolute return and guacamole (MARG) contracts.

  21. Posted by Deleveraging | November 8, 2012 at 10:46 AM

    Bess: thank you for the drunken elephant story; it was the best laugh I've had in weeks

  22. Posted by Gitnar | November 8, 2012 at 10:49 AM

    One time I told him I didn’t like spaghetti and meatballs and he told me to get the hell out of America.

  23. Posted by pazzo83 | November 8, 2012 at 10:51 AM

    "Herd of elephants go on drunken rampage after mammoth booze up"

    Is this how we are referring to American tourists now?

  24. Posted by Flo | November 8, 2012 at 10:59 AM

    It ain't cool bein' no jive turkey so close to Thanksgiving.

  25. Posted by Momager | November 8, 2012 at 11:01 AM


    – Kim K

  26. Posted by Thebird | November 8, 2012 at 11:05 AM

    Agador Spartacus?

  27. Posted by Fact Finding Quant | November 8, 2012 at 11:05 AM

    I believe what you're referring to was the NJ gubernatorial fact finding mission.

  28. Posted by Momager | November 8, 2012 at 11:06 AM
  29. Posted by Hobbes | November 8, 2012 at 11:09 AM

    I think they need a Taco Bell in Dumurkota, India.

    – David Einhorn

  30. Posted by GM-Laid-Me-Off | November 8, 2012 at 11:22 AM

    How does the goverment of CA plan to enforce this new rubber law? Does Jerry brown have to watch every porn movie to make sure they wear condoms? I think the governer of any state is better off not watching hours of porn a day, and focusing on the people of his state. If Gov. Brown isnt going to do it, can I? My 99 weeks are about to expire.

  31. Posted by Chase Coleman | November 8, 2012 at 11:23 AM

    Should have gone with LNKD.

  32. Posted by Shecky the Guest | November 8, 2012 at 11:26 AM

    Q: What's grey and comes in quarts?
    A: An elephant.

  33. Posted by Analyst | November 8, 2012 at 11:27 AM

    Switch to White Castle. Other than that, I have no concerns.

    – Harold

  34. Posted by Uncle Omar | November 8, 2012 at 11:30 AM

    He quit after college.

  35. Posted by Guesteeculous | November 8, 2012 at 11:30 AM

    Excuse me!


  36. Posted by Consper Thero | November 8, 2012 at 11:31 AM

    More important question: Why wasnt something like condoms in xxx movies not included in the Opening Bell? Answer: Matt is part of the illuminati !

  37. Posted by N. Roubini | November 8, 2012 at 11:31 AM

    I'm there!

  38. Posted by In Bruges | November 8, 2012 at 11:36 AM


  39. Posted by Motiv Cocktail | November 8, 2012 at 11:37 AM

    We believe that we can assist a fellow "watchdog" on this most challenging issue; one that requires deep industry and functional expertise. We invest significant time and effort in developing and renewing a knowledge base that offers unique perspectives and insights into this field. Knowledge development occurs though out our organization and we look forward to sharing those insights.

    – The SEC

  40. Posted by Quant me maybe | November 8, 2012 at 11:38 AM

    Serious question. Does the law state where the condom needs to be worn. Bet it doesn't. That means a lot of well protected large toes.

  41. Posted by Rufus Mandrake | November 8, 2012 at 11:39 AM

    Obama's semen?

  42. Posted by leeminbrahs | November 8, 2012 at 11:42 AM

    The "herd of elephants" is the republican party boozing their ass off due to an Obama reelection.

  43. Posted by Turnip Truck | November 8, 2012 at 11:43 AM

    Actually, it was just me.

    –fat, pudgy kid out of nowhere

  44. Posted by Guest | November 8, 2012 at 11:43 AM

    "The trunk and disorderly mammals ransacked a shop in India"

    Ah, miss partying with the bruh's

    -R. Rajaratnam

  45. Posted by Give me a reason | November 8, 2012 at 11:45 AM

    Gotta love America, where guys writing on message boards take shots at people who don't even know they are ALIVE.

  46. Posted by Pac | November 8, 2012 at 11:45 AM

    Does that make Bess Don Killuminati?

  47. Posted by Rochdale Securities | November 8, 2012 at 11:48 AM


  48. Posted by Tom Corea | November 8, 2012 at 11:50 AM


    She said she liked dick pics

  49. Posted by Guest | November 8, 2012 at 11:50 AM

    "Unfortunately these animals live in close proximity to man"

    I know what you mean.

    -Manhattan Resident examining motives but stating reality

  50. Posted by Guest | November 8, 2012 at 11:55 AM

    A tanked elephant named Sandy whipping its trunk around like a hurricane.

  51. Posted by Guest | November 8, 2012 at 11:59 AM

    We would have had a wildly profitable quarter, if it hadn’t been for you meddling GAAP's!

    -Frederic Oudea

  52. Posted by Lompoc warden | November 8, 2012 at 12:02 PM

    Meet mr. Gupta

  53. Posted by Texashedge | November 8, 2012 at 12:03 PM


  54. Posted by Puck It | November 8, 2012 at 12:07 PM

    Great idea. Gov Moonbeam should watch all that porn. It will occupy all his time and keep him from doing more damage.

  55. Posted by Rawlie Thorpe | November 8, 2012 at 12:07 PM

    If you want to live in NY you've got to Insulate Insulate Insulate.

  56. Posted by Richard Tucker | November 8, 2012 at 12:15 PM

    Meet me at Minetta's, ask me to push your stool in so I know its you.

    – Beeks

  57. Posted by Guestido | November 8, 2012 at 12:16 PM


  58. Posted by Guest | November 8, 2012 at 12:17 PM

    Photo caption: Who wants to sniff Michelle?

  59. Posted by _guest | November 8, 2012 at 12:17 PM

    "Herd of elephants go on drunken rampage after mammoth booze up."

    Are we sure this wasn't Karl Rove et al after Tuesday night?

  60. Posted by pazzo83 | November 8, 2012 at 12:23 PM

    I'm sorry, you appear to be lost. Please proceed to immediately.


    DB Customer Service

  61. Posted by Chris | November 8, 2012 at 12:24 PM

    Fix da fence? I'll go out there and fix da fence myself!

  62. Posted by Bawnie fwank | November 8, 2012 at 12:27 PM


  63. Posted by PermaGuestII | November 8, 2012 at 12:34 PM

    You is the most RIGHTEOUS host!

  64. Posted by Chris Matthews | November 8, 2012 at 12:34 PM

    Those elephants destroying those houses were a blessing

  65. Posted by PermaGuestII | November 8, 2012 at 12:39 PM

    As you are doing right now, for instance?

  66. Posted by Ta Da! | November 8, 2012 at 12:44 PM

    In related news, a young woman in Kenya gave birth to twin sons. She named one Barak Obama and the other Mitt Romney. The article did not indicate if the first out was Barak or Mitt.

    File that under, interesting waste of 3.4 seconds.

  67. Posted by Ta Da! | November 8, 2012 at 12:45 PM

    Yahoo! quality comments should stay on Yahoo!

  68. Posted by TomJoad | November 8, 2012 at 12:51 PM

    Hug me?


  69. Posted by No me guestas. | November 8, 2012 at 12:55 PM

    Your worldview is profoundly different from mine.

  70. Posted by guest | November 8, 2012 at 12:56 PM

    Tell me about it.

    -relativist OWS quant

  71. Posted by Guest | November 8, 2012 at 1:07 PM

    Call me.

    -Founder of Lets Play Russian Roulette with a Glock.

  72. Posted by Guest | November 8, 2012 at 1:08 PM

    Obama's hates his real brother.

  73. Posted by Laxbro | November 8, 2012 at 1:20 PM

    Your life sounds awesome.

  74. Posted by guest | November 8, 2012 at 1:37 PM

    It's not smug. It's hair gel.

  75. Posted by guest | November 8, 2012 at 1:43 PM

    Jerry's busy playing with his 100Billion$$ train set right now…….Idaho here I come!

  76. Posted by Guest | November 8, 2012 at 1:48 PM

    What if the hurricane is named Hurricane Ditka?

  77. Posted by Guest | November 8, 2012 at 1:48 PM


    -Cheese Elephant

  78. Posted by Fox News | November 8, 2012 at 1:56 PM

    Either way, they both won Obama the election

  79. Posted by Guest | November 8, 2012 at 2:00 PM

    It did make for good politics.

    – Chris Matthews

  80. Posted by Guest | November 8, 2012 at 2:05 PM

    Man I hope not.

    – Rex Ryan

  81. Posted by Guest of a guest | November 8, 2012 at 2:31 PM

    Your elephant herd joke was funnier than mine. Touche, sir.

  82. Posted by Peter Morak | November 8, 2012 at 2:40 PM

    <img src=""/>Actually Obama being relected isn't that bad a thing for Wall Street you know. <img src=""/&gt;

  83. Posted by Guest | November 8, 2012 at 3:14 PM

    Drunken elephants lol… herd that one before

  84. Posted by Guest | November 8, 2012 at 3:15 PM

    herding while intoxicated? They are in for a trunk full of trouble

  85. Posted by TheJokeBriefer | November 8, 2012 at 3:55 PM

    I don't want to trumpet your mistake but the set up of that joke is "What is gray and comes in quartz?"

    The set up uses a pun (quartz/quarts) with the shock answer (an elephant!) that the brain must decipher instantaneously. Such mental gymnastics are probably why comics and comedians live a long time.

  86. Posted by PermaGuestII | November 8, 2012 at 5:57 PM

    Messrs. Dow and Jones beg to differ.

  87. Posted by Cow Jones | November 8, 2012 at 6:05 PM

    I disrespectfully disagree. You're supposed to think "comes in quarts" as how liquids are packaged or sold by volume. It's odd to say something is grey but also quartz, the mineral, as one wouldn't expect quartz to be painted grey.

  88. Posted by Guy With Two Cents | November 8, 2012 at 6:57 PM

    Here are my two cents: I first "heard" that joke in verbal form. The same joke above was in "written" form. The use of the written words "coming" and "quarts" in the context of a comment would seems to alert a reader that an ejaculatory reaction was soon forthcoming (pardon the expression). Somehow, to me, and I am no expert, my dirty mind would diminish the joke's punchline –in written form–by use of the words 'coming' and 'quarts'. I will need to ask 100 people though and have a blind control group to fully assess the power of that joke's punchline.

  89. Posted by guest | November 8, 2012 at 11:20 PM


  90. Posted by guest | November 8, 2012 at 11:21 PM

    They begged to differ yesterday. Pretty sure the market has done pretty fucking well over the last 4 years. You know that, right?

  91. Posted by guest | November 8, 2012 at 11:22 PM

    Nope, reader since '06. You realize there are people here who aren't Republicans, right? Or did you not? Douchebag.

  92. Posted by guest | November 8, 2012 at 11:30 PM

    Which is hilarious, given how fucking well the market has done under Obama the last four years.

    "…gains for American assets over the past four years are among the best in the developed world."

  93. Posted by Oh-oh | November 9, 2012 at 12:16 PM

    …and that means about plus $1trn on the debt every 150 days or so, and getting faster.
    Well done .

  94. Posted by guest | November 9, 2012 at 7:48 PM

    wait until the barrage of regulation starts