Opening Bell

Opening Bell: 11.20.12

Former UBS Trader Found Guilty (WSJ)
Former trader Kweku Adoboli was found guilty on one count of fraud in connection with a $2.3 billion loss the Swiss bank suffered last year, as the jury in the alleged rogue-trading case continued to deliberate on five other counts he was charged with. The partial verdict comes nearly a week after the jury began deliberating following a roughly eight-week trial. It is unclear when the jury might reach verdicts on the other five counts or when sentencing might take place. Mr. Adoboli pleaded not guilty to all six counts.

Shakeup At Credit Suisse (WSJ)
Credit Suisse said Tuesday that it will combine the Swiss bank’s asset management unit with its private bank, but stopped short of announcing the more drastic revamp analysts expected after crosstown rival UBS decided to fire 10,000 bankers. Robert Shafir, who currently heads the U.S. business of Credit Suisse, will take the helm of a new private banking and wealth management division jointly with Hans-Ulrich Meister, who has run the private banking business, the bank said. At the investment bank, Gael de Boissard is being promoted to co-head of the division, jointly with incumbent Eric Varvel. Following the revamp, Credit Suisse will have only two units—wealth management and investment banking–which are distinctly separate from each other, a move that is “in alignment with the new regulatory reality,” Chairman Urs Rohner said.

Greece Waits Nervously For Vital Bailout Funds (Reuters)
Officials familiar with preparations for the finance ministers’ meeting expect a “political endorsement in principle” on unfreezing loans to Athens, after Greece completed almost all the reforms that were required of it in exchange for funding. The final go-ahead from the ministers is likely to come only once the remaining few Greek reforms are in place and once there is agreement in the euro zone on how to reduce the country’s huge debt and secure extra financing while it is being done.

French Downgrade Widens Gulf With Germany as Talks Loom (Bloomberg)
France’s loss of the top credit rating at Moody’s Investors Service may weaken President Francois Hollande’s leverage in European budget talks and deepen concern in Germany over its neighbor’s lagging competitiveness. The downgrade late yesterday of Europe’s second-biggest economy underscores the concern expressed by allies of German Chancellor Angela Merkel that the Socialist Hollande’s failure to recognize the urgency of France’s woes risks a deepening of Europe’s slump. “This downgrade will certainly increase pressure on France big-time,” Jan Techau, director of the Carnegie Endowment for International Peace office in Brussels, said today in a phone interview. “It gives Germany more of an edge over France.”

‘Tide Turning’ Against France, Say Economists (CNBC)
“The tide is turning for France. Although the country’s bond market is likely to remain resilient — the yield on 10-year paper is little changed [Tuesday] morning and still stands a whisker above its record low of 2.06 percent on July 19 — French debt looks more and more overvalued relative to fundamentals,” Nicholas Spiro, Managing Director of Spiro Sovereign Strategy, said in a note on Tuesday. France has enjoyed low borrowing costs as investors have viewed the country as a safe haven in comparison with its southern European cousins. The downgrade of France to AA1 with a negative outlook by Moody’s has thrown its “deteriorating fundamentals….into sharp relief” Spiro said.

New York Prepares Lawsuit Against Credit Suisse (Reuters)
The New York attorney-general is preparing to file a civil lawsuit against Credit Suisse for misleading investors who lost billions of dollars on mortgage-backed securities, according to a source familiar with the matter. The lawsuit, which is expected to be filed on Wednesday, will allege that Credit Suisse misrepresented the quality of loans packaged in securities, according to the source.

Petraeus Mistress Paula Broadwell To Jill Kelley: ‘I can make you go away’ (NYDN)
The notes Paula Broadwell sent to Jill Kelley were far more sinister than previously reported and seemed like the rantings of someone “clearly unhinged,” a close friend of Kelley said Monday. “This wasn’t just a catfight. Any normal person who got emails like that would have immediately called the police,” said the friend. She said Kelley read her the emails when she called, panic-stricken and seeking advice in the days before the scandal became a stunning public spectacle and led to Petraeus’ resignation as CIA director. The friend, who did not want to be identified, said Kelley saw the emails as death threats, specifically one in which Broadwell vowed to “make you go away.” [Meanwhile,] Broadwell…bloodied a female news photographer’s forehead Monday in a confrontation outside the biographer’s Charlotte, N.C., home. Broadwell smacked the photographer with the driver’s-side door of her Nissan Pathfinder SUV. “I had my camera and in all the chaos the door slammed and I got hit in the head with the flash,” said Nell Redmond, a freelancer for The Associated Press. Redmond suffered a small cut and is not pressing charges.

Morgan Stanley’s Doom Scenario: Major Recession in 2013 (CNBC)
The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent. “More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report. Under the bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff” leading to a contraction in U.S. GDP for the first three quarters of 2013. In Europe, the bank’s pessimistic scenario assumes a failure of the European Central Bank (ECB) in cutting rates and a delay of its bond-buying program.

China’s Richest Woman Divorces Husband, Fortune Declines (Bloomberg)
Longfor Properties Co. Chairwoman Wu Yajun is no longer China’s richest woman after divorcing Cai Kui and transferring about 40 percent of the developer’s shares the couple used to own to her ex-husband. Her stake in Longfor, which Wu co-founded with Cai, dropped from a combined 72 percent to 43 percent, while Cai retains 29 percent, according to filings from Hong Kong’s stock exchange. Wu’s net worth is estimated at $4.2 billion, down from $7.3 billion as of 5:30 p.m. New York time yesterday, according to the Bloomberg Billionaires Index.

Judge Tosses Suit Over AIG (WSJ)
A federal judge in Manhattan dismissed a $25 billion lawsuit by Starr International Co., which Mr. Greenberg runs, against the New York Federal Reserve Bank over claims the Fed breached its fiduciary duty to AIG’s shareholders in the rescue during the U.S. financial crisis. It is one of two lawsuits Starr, AIG’s largest shareholder at the time of the government takeover, is pursuing over the bailout.

Mark Cuban Throws A Tantrum On Facebook Fee (NYP)
Facebook used to be a “time suck” — now it just sucks. That’s the view of Dallas Mavericks owner Mark Cuban, who is urging marketers to take their business elsewhere after the social network started charging the tech billionaire to send messages to all the team’s fans. “In the past we put FB first, Twitter second,” Cuban wrote in a roughly 1,700-word blog post calling out the social network. “FB has been moved to the bottom of a longer list.” He added: “FB doesn’t seem to want to accept that its best purpose in life is as a huge time suck.” At issue is Facebook’s filtering of posts that appear in users’ news feeds. The site says it is trying to present users with content that they have shown an interest in while cutting down on spam. But Cuban says it is a pay-to-play move. He argues that Facebook is making it harder for marketers to reach their fans without paying for so-called “promoted posts.” And making the site more targeted and efficient is actually a mistake, according to Cuban. He claims most people go to the site because it’s a “time suck” that they enjoy.

Cannibal Cop Pleads Not Guilty (NYDN)
“cannibal cop,” accused of conspiring with an online buddy to kidnap, rape and slow-cook women, pleaded “not guilty” Monday to two federal charges. Gilberto Valle, 28, was arraigned in Manhattan Federal Court on charges of conspiracy to commit kidnapping and accessing the federal National Crime Information Center database without authorization. Valle’s public defender, Julia Gatto, made a third attempt at getting bail for her now-infamous client. “You have a hard row to hoe,” said Judge Paul Gardephe…Valle — who was suspended after being arrested last month in a joint NYPD and FBI investigation — is accused of chatting last July with a sick online buddy about “kidnapping, cooking and eating body parts” of a woman identified as Victim 1, according to the indictment released Friday.

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45 Responses to “Opening Bell: 11.20.12”

  1. UBS Analyst says:

    Time suck? You mean people don't go to Facebook for the sole purpose of being advertised to!? Absurd.

  2. M. Cuban quant says:

    McAfee Blog > Twitter > FB

  3. Guest says:

    Creepy ass picture

  4. Guest says:

    If the IT kid at DB was Greg Smith's intern, he would tell him to pay better attention to lunch orders

  5. Paula Broad says:


    I’ve arranged for a great date for you – a uniformed patriot doing a great service to his community. And Gilberto Valle is a great cook too!

  6. PermaGuestII says:

    Gen. Petraeus-

    You were the Director of the Central Intelligence Agency. Did it not occur to you that you had the resources to hand with which to find a mistress who is *not* nuts?

    -Concerned Citizen

  7. free kweku says:

    dark day

    euston station payday loans manager

  8. Gusetr says:

    He’s got the quintessential cocaine upper lip.

    -UBS Contraband Narcotics Quant

  9. TobiasFunkeCFA says:

    In other news, Bill Clinton is rumored to have asked Paula Broadwell to write a new biography.

  10. He Who Ponders says:

    If "April showers bring May flowers", what do May flowers bring?


  11. Guest says:

    We have reached critical swass!!

  12. guest says:

    I can't believe a photographer who was sticking his camera into the face of a national dimwit got his head cut open when a car door slammed his camera. What is this world coming to when shithead paparazzi can't be free to invade in the demise of a person's private life without fear of personal harm?

  13. Court Guester says:

    Cannibal cop should have planned to abduct more men. Other than that, no concerns.

    – Jeffrey Dahmer

  14. Finch says:

    So is France a royale or a royale with cheese but no pickles?

  15. Freedom Fries says:

    The CAC hasn't had an IPO since 1987.

  16. D Gartman says:

    I predict this will happen.

  17. Separated at Birth says:

    Paula Broadwell and Rocky Dennis from 'Mask'

  18. GeezerOilTrader says:

    Fucking CEOs, Generals, hedge fund managers, with their bimbo activities and all, are ruining the military, energy and financial institutions! And don't give me any of that YOLO bullshit! Back in the 80s, when real men traded real oil and our dumbass CFOs, weren't being thrown documents on newly created derivative shit as pitched at them by all the well dressed, investment banking, young crypto-catamites -AKA "originators" to me- every god damned day, "YO…LO" was what we yelled when we were sitting in front of a naked limbo dancer at a private party in Austin after a Railroad Commission cocktail party!! When society fucking changed and our "lingerie shows at lunch" and "Two-fer Tuesdays" drinks sessions went away along with the enforcement of open container laws in Texas, the CEOs and "leaders" accelerated their hunt for the "strange" at a greater pace. Now my daddy always told me (as that E Texas gas person says here from time to time) "never make fun of the ugliest woman in the office because odds are the president of the company is probably fucking her." Those words might ring true today. Back in the 80s, when professional, genteel men traded oil and we were grooving to "I Feel On You" by Chaka Khan, I had a married boss who like fat girls. He had worked at Coastal States for a while and quit to work for a private company that also employed me. All the Coastal folk, whenever they weren't ironing their tube socks, would ponder his departure with the potential of Mafia-type justice one day but I think the threat was void because I only saw those people drunk most of the time and my old boss is still alive today. Anyway, my old boss used to say, "I like em to have a little meat on the bone before I put my bone on their meat". He wasn't a member of MENSA. And he liked them big but he never had to use a pickup truck to take them out. Some were so big he called them "Hug 'n Chalkers" and said he carried a piece of tire chalk when he hugged them so he could mark as far as he could get around them and then know where to start to finish the hug. Back in the 80s, when there were still pay phones without caller ID you could use to call home from a tittie-bar, we used to say that the reason Arco traders liked fat women on the side was because they'd keep em warm in the winter and shade 'em in the summer! And in those days, during the company Thanksgiving feast on Wednesday in the trading room, you could walk around with the turkey neck sticking out of your zipper and stating you were in the mood for some white meat and HR wouldn't write you up!!
    The Thanksgiving oil markets can be slow and dangerous. There used to be a pretty rough-around-the edges gal who did a lot of oil business with Charter back in the 80s who got stopped late one night after a company get together for driving erratically. The officer told her he stopped her in her company car for weaving down the road there in Channelview. He asked her to take a breath test and she complied. He looked t the results and said, "Well it looks like you've had a few stiff ones…" and she replied, "It can show that too?"

  19. Cassandra says:

    Dear France,

    A guy named 'Spiro' is mocking you for crappy sovereign debt quality. This might be cause for concern.

  20. Guest says:

    Between those Benmosche pieces a few weeks back and this Greenberg joker, I can't figure out if these AIG guys are serious or not. You know what's really bad for shareholder value? The Fed not saving your ass with my money and your shitty stock going to 0.