Opening Bell: 11.14.12

Austerity Strikes Sweep Across Europe (WSJ)
Unions in Spain, Portugal and Greece went on strike Wednesday to protest government austerity plans amid a wide economic contraction across Europe’s periphery, but questions remained about the unions’ ability to influence economic policy. The general strike led to minor violent incidents in Spain, even though morning business activity seemed to remain relatively normal. Spain’s government said 32 people had been arrested since midnight, and national TV showed small clashes with police, as well as rallies held by union members in transportation hubs like train and subway stations. The Spanish unions are protesting austerity cuts and an unemployment rate at 25% of the workforce.

Geithner Warns Against Delaying Solution to US Fiscal Crisis (Reuters)
With lawmakers and the White House bickering over how to put the country on a sustainable fiscal path, a number of lawmakers and think tanks have argued for more time. “That will leave all the uncertainty you don’t like on the table,” Geithner said at an event sponsored by the Wall Street Journal in his first public comments on the looming fiscal crisis since President Barack Obama won re-election last week.

Facebook Investors Brace For Big Round Of Unlocked Shares (Bloomberg)
Restrictions lift today on 804 million shares held by former employees and those who sold at the initial public offering, almost doubling the total available for trading, according to a regulatory filing.

Geithner’s Money Fund Overhaul Push Sparks New Opposition (Bloomberg)
Geithner, heading a Washington meeting of the Financial Stability Oversight Council, a group formed by the Dodd-Frank Act to address systemic financial risks, won unanimous approval for a draft recommendation to the SEC spelling out three ways to overhaul the $2.6 trillion industry. A new option would require capital buffers of as much as 3 percent of assets, while two other solutions he offered were opposed earlier by the fund industry and rejected in August by an SEC majority. Representatives for the fund industry, who last month put forth their own plan, immediately denounced the proposals as stale and unhelpful. While Geithner has said the SEC is best positioned to address money funds, he has also said that the regulators’ panel, often referred to as FSOC, might intervene and subject funds to oversight by the Federal Reserve if the SEC fails to act.

SEC Expands Knight Probe (WSJ)
The Securities and Exchange Commission has deepened its probe into whetherKnight Capital Group Inc. did enough to police its trading systems before computer errors nearly destroyed the brokerage. The inquiry, which began after Knight’s errant Aug. 1 trades saddled it with more than $450 million in losses, initially focused more narrowly on what caused the errors. The probe has broadened to look further at the company’s risk-control procedures and Knight’s compliance with a rule implemented last year—called the market-access rule—that requires brokerages to guard against these sorts of problems, say people familiar with the investigation.

Blankfein Warns Over Cuts (FT)
The financial industry should not go “overboard” in cutting costs in reaction to current market conditions, the chief executive of Goldman Sachs said yesterday. “Our industry has a long history of letting too many people go at the bottom of the cycle and hiring too many at the top,” Mr. Blankfein told an industry conference in New York.

Pepsi’s New Fat Blocking Soda Unleashed On Japanese Consumers (Forbes)
Up until recently, soda manufacturers have at least tacitly acknowledged that their carbonated swills aren’t healthy options. [Then] yesterday, Pepsi-Cola in Japan launched a fiber-infused iteration of its cola drink. According to Suntory, the sole distributor of Pepsi in Japan, the beverage contains “indigestible dextrin,” more commonly known as dietary fiber. This magic ingredient, Suntory’s website claims, helps reduce the amount of fat that’s absorbed into the body, hence the tagline of the new drink as a “fat-blocking soda.” Suntory also proffers that the drink quells the rise in triglycerides in the blood that normally follows a meal.

Rochdale May Be At The End Of Its Rope (NYP)
Stamford, Conn.-based Rochdale Securities is struggling to secure a deep-pocketed buyer three weeks after a former trader, identified as David Miller, saddled the firm with $1 billion in “unauthorized” Apple trades that it wasn’t able to cover. CEO Dan Crowley has been working around the clock to identify a “white knight” willing to save the 55-person broker dealer, according to sources. But staffers of the 37-year old firm worry ongoing investigations will turn off suitors and impede the firm’s ability to operate as a broker dealer.

BNY Mellon Unit Settles Madoff Suits (WSJ)
The Ivy Asset Management unit will pay $210 million to resolve a series of lawsuits claiming that it concealed doubts about the business operated by convicted Ponzi schemer Bernard L. Madoff.

Shareholders To Citi: Break This Company Up (AP)
Trillium Asset Management, a shareholder advisory firm with more than $1 billion in assets under management, effectively renewed call made recently by Sandy Weill, Citigroup’s former CEO and one of the founding fathers of the “financial supermarket” concept that helped turn Citi into a global banking behemoth.

Siewert In Line For Goldman Partnership (NYP)
Hired only last March, Richard “Jake” Siewert, the head of corporate communications, could be among the 70 or so new partners the 144-year-old bank is set to announce this morning…Siewert’s predecessor, Lucas Van Praag, made partner in 2006 — five years after joining the firm.

Paula Broadwell Warned Gen. Allen Against “Seductress” Jill Kelley (CBS)
A senior official has told CBS News correspondent David Martin the vast majority of the emails between Allen and Tampa socialite Jill Kelley were “completely innocuous,” and the general believes many of the 20-30,000 pages under scrutiny are duplicates. The official said that in some of the emails, Kelley would say things like, “saw you on television and you were terrific,” and Allen would write back with “thanks, sweetheart.” The official said the two never discussed sex and that Allen had never been alone with Kelley. Nonetheless, CBS News correspondent Bob Orr says Pentagon and FBI sources describe the communications as “potentially inappropriate” and “flirtatious,” and another source says they were likely more than just innocent exchanges — noting that the Pentagon’s Inspector General is involved for a reason. Among the hundreds of emails exchanged between Allen and Kelly – Orr reports that investigators are focusing on one from several months ago. In it, Allen told Kelley he’d just received an anonymous email warning him to stay away from her. Sources say that the anonymous email came from Broadwell, Petraeus’ mistress, who allegedly warned Gen. Allen that Kelley was “a seductress.” Broadwell allegedly sent similar warnings to other military officers at the U.S. Central Command, located near Kelley’s Tampa home. Broadwell, who had been out of sight since the scandal emerged on Friday, was spotted Tuesday night preparing dinner and drinking a glass of wine inside her brother’s Washington home.

52 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (52)

  1. Posted by Lactating | November 14, 2012 at 9:50 AM

    We are the knights that go nigh.

  2. Posted by Sean | November 14, 2012 at 9:51 AM

    If Ken Lewis was still alive Rochdale would always have a pot to piss in.

  3. Posted by DingALing | November 14, 2012 at 9:52 AM

    Poor Gen. Petraeus. He's got 99 problems and bitches seem to be all of them

  4. Posted by Lactating | November 14, 2012 at 9:53 AM

    Women are the fucking rake.

  5. Posted by VonSloneker | November 14, 2012 at 9:58 AM

    "Knight's errant," Levine you card…

    – M. Cervantes

  6. Posted by M. Madoff | November 14, 2012 at 10:00 AM

    I'm questioning if the Rochdale headline being followed up with the Madoff suit is some sort of jab.

  7. Posted by Incitatus | November 14, 2012 at 10:04 AM

    This whole thing is just getting stupid.
    -Danielle Steele

  8. Posted by Im_a_Dude | November 14, 2012 at 10:12 AM

    who needs fat blocking soda when we've got Chivas

  9. Posted by Sir Losealot | November 14, 2012 at 10:12 AM

    Dear SEC:
    It's only a flesh wound.

  10. Posted by Pass | November 14, 2012 at 10:16 AM

    I'm surprised we don't have a P&L figure on the rochdale trade yet.

    Where is the debit account being held ?

  11. Posted by Cos Cob Killer | November 14, 2012 at 10:23 AM

    Then they should be out taking care of the leaves on my vast lawn.

  12. Posted by UBS | November 14, 2012 at 10:24 AM

    Cuts mean we piss in the pot we also make coffee in.

    UBS Unicycle Coverage MD

  13. Posted by A Little Tired of It | November 14, 2012 at 10:24 AM

    There are millions of devious fanatics around the globe who want to kill the free world's men, women and children publicly, on video and by the worst possible ways and, meanwhile, the general staff of our military are busy fucking around with groupie bimbos – literally – or in reams (pardon the expression) of fucking emails. That, of course sets a great example for young service members and their families and those of us who have to explain, rationalize or apologize for their behavior as though we have nothing else to do anyway.

  14. Posted by Wise Man | November 14, 2012 at 10:30 AM

    This man appears to be telling the truth!

    – DB Wise Man

  15. Posted by Mexicans | November 14, 2012 at 10:31 AM

    Hey !

  16. Posted by Motion Picture Quant | November 14, 2012 at 10:32 AM

    Matt Damon's "The Good Shepard" made it seem like the CIA was a strictly Ivy educated wasps. How the hell did this emigrant cock tease Kelley get so much access??? Her sister gets character letters from the Director of the CIA?? Jesus, the blowjobs must have been God like.

  17. Posted by guest | November 14, 2012 at 10:36 AM

    Um, I prefer my blow jobs to be Goddess like

    -Gen Petreaus

  18. Posted by Home Depot on DB | November 14, 2012 at 10:36 AM

    Need to take care of a lot of leaves quickly? Try out the the Cub Cadet 46 in. 23 HP Kohler Twin Courage Dual EZT Zero-Turn Riding Mower for only $2999. Add the Cub Cadet 46 in. Twin Bagger for Riding Mowers for $392 and you got yourself the best lawn on the block.

    More Savings.More Doing. – The Home Depot on DB

  19. Posted by VonSloneker | November 14, 2012 at 10:36 AM

    For relaxing times, make it Suntory time.

    – B. Murray

  20. Posted by Stamford Sucks? | November 14, 2012 at 10:40 AM

    Is it just me or do almost all things in Stamford suck? (Beamers excluded obviously)

  21. Posted by pazzo83 | November 14, 2012 at 10:41 AM

    " Broadwell… was spotted Tuesday night preparing dinner and drinking a glass of wine inside her brother’s Washington home."

    Riveting details, CBS!! Tell us more!

    – guy who thinks modern American journalism is largely a joke

  22. Posted by guest | November 14, 2012 at 10:44 AM

    Timmy Geithner furiously sexting women in hope he'll be forced to resign.

  23. Posted by Hakuna Matata Guy | November 14, 2012 at 10:44 AM

    Not all things. In high school, we had this great spot where we went to buy 30 packs of beer in Stamford on West Main St. The guy barely IDed us and acted like he was our best friend. If anyone happens to go there, let him know HMG says whats up!

  24. Posted by NakedShort | November 14, 2012 at 10:46 AM

    Am I the only person that hopes Pete Wells moonlights as a Dealbreaker commenter?

  25. Posted by Charlie Sheen | November 14, 2012 at 10:46 AM

    Hey !

  26. Posted by Beaners | November 14, 2012 at 10:46 AM

    there are jews in Stamford ?

  27. Posted by Post Road Poster | November 14, 2012 at 10:58 AM

    He said he was pretty disappointed that all that underage drinking he contributed to couldn't produce a more entertaining Dealbreaker commenter. Related – he also asked that said he's absolutely inundated with UBS resumes.

  28. Posted by Pope Shecky XIII | November 14, 2012 at 10:59 AM

    A good Catholic girl in Carrizo Springs, Tx, met a landman for a major oil company at a country and western music hall one night. One thing led to another that liquored up night and soon she and he landman were in the back of his pickup where she gave him a blowjob. The next morning, at her apartment, she awoke in horror and shame and immediately sought the advice of her local priest. She described what happened after the music and the liquor and when she got to the blowjob part the young priest recoiled in horror and said he couldn't forgive that; she's have to see the Bishop in San Antonio. So she went to San Antonio and met the Bishop and he welcomed her and tried to ease her mind. In detailing how she came to see him in San Antonio she told the story and when she got to the blowjob part, the Bishop shot back in his chair gasping and covering his face. He waved her out and said that to get forgiveness for that certain "act" she'd have to go to New Orleans and see the Cardinal. So she went to New Orleans. She was ushered in to see the Cardinal who was most charming and sympathetic. He listened to her story and when she got to the "blowjob" part he didn't react in anyway. When she finished her sordid tale, he told her, "You are forgiven. Do 5 acts of penitence and pray for our President. Then, go and sin no more." The woman from Carrizo Springs became angry. "Well, if it was that easy, why did I have to see three priests and go to San Antonio and then here to New Orleans to get forgiveness??" The Cardinal replied, "Well, what do you expect some some hick priests from Carrizo Springs and San Antonio know about fancy fucking?!"

  29. Posted by Laxbro | November 14, 2012 at 11:04 AM

    It was the very early 2000s, I was a teenager witnessing my parents go through a bitter divorce. That night my Dad, who was caught cheating on more than one occasion, was a couple blue labels deep. Before we turned in for the evening he gave me advice I will never forget: say it with candy, say it with flowers, but never ever, my son, say it in ink.

  30. Posted by Ellen Page | November 14, 2012 at 11:05 AM

    You've been using that line every day. Thankfully there's an article about women so that you can use it in it's original form.

  31. Posted by Kat Von D | November 14, 2012 at 11:14 AM


  32. Posted by Flounder Pinkerton | November 14, 2012 at 11:16 AM

    Goddamn you half Japanese girls, you do it to me every time!

  33. Posted by Hakuna Matata Guy | November 14, 2012 at 11:18 AM

    I get what you're saying here, but, they are who we thought they were?

  34. Posted by Noel Sister 1 | November 14, 2012 at 11:40 AM


  35. Posted by Huh? | November 14, 2012 at 11:41 AM

    Joke briefer please…

  36. Posted by BarCap Quant | November 14, 2012 at 11:42 AM

    Duh, that's why they used emails genius, although instant messages work to.

    -Barclays Rate Manipulation Concealment Quant

  37. Posted by Wire | November 14, 2012 at 11:59 AM

    After a discussion of BJs, it's a joke about BJs. That's all.

  38. Posted by No Other Concerns | November 14, 2012 at 12:15 PM


  39. Posted by HungryIntern | November 14, 2012 at 12:16 PM

    What were your dad's thoughts on smoke signals?

    ~Chris Eyre

  40. Posted by HungryIntern | November 14, 2012 at 12:25 PM

    This 21' Century political correctness is really dumb.

    Emperor Napoleon, Lord Nelson, Duke Wellington, Bismarck

  41. Posted by Guest | November 14, 2012 at 12:39 PM

    That's how my dad used to do it.

    -Elizabeth "Laughing Donkey" Warren

  42. Posted by guest | November 14, 2012 at 12:52 PM

    The term "joke" being used here as loosely as possible.

  43. Posted by Huh? | November 14, 2012 at 1:07 PM

    Oh, I don't know whether I'm more relieved I wasn't missing the hilarity or bummed at the lack of same.

  44. Posted by Massachusetts | November 14, 2012 at 1:10 PM

    We just love the smell of your farts

    – Massachusetts Voter

  45. Posted by Guest | November 14, 2012 at 1:15 PM

    Can I be the first to say that there's nothing funny about these "Hey !" comments anymore?

  46. Posted by Warren | November 14, 2012 at 1:49 PM

    Nope. They can be good if used properly.

  47. Posted by Peter Morak | November 14, 2012 at 2:31 PM

    <img src=""/&gt; I'm so surprised today that facebook share shoot up even though there's a huge sale coming?<img src=""/&gt;

  48. Posted by Ben Bernanke | November 14, 2012 at 2:32 PM

    And I've told him a million times: I'm just not interested.

  49. Posted by Giacomo | November 14, 2012 at 2:49 PM

    Hey is for horses

    -Guy who wanted to keep the bullet point chain going

  50. Posted by I'll have another | November 14, 2012 at 2:50 PM


  51. Posted by Quant me maybe | November 14, 2012 at 3:33 PM

    Wrong site, bud.

  52. Posted by pmco | November 14, 2012 at 3:40 PM

    I am also waiting for my "white knight". After I gained my freshman 300's (lbs) I can only get attention from the brothers.

  53. Posted by D. Schwimmer | November 14, 2012 at 3:46 PM

    You forgot "pardon poor English."