Opening Bell: 11.27.12

Greece’s Creditors Reach Aid Deal (WSJ)
struck a deal in Brussels to cut Greece’s debt to a level below 124% of gross domestic product by 2020, officials said. To satisfy IMF concerns that Greece’s debt must fall even more to be considered “sustainable,” euro-zone ministers agreed to bring the government’s debt to under 110% of GDP in 2022. The deal will allow Greece to receive loan payments of about €44 billion ($57 billion) to be paid in three installments early 2013, tied to Greece’s implementation of the continuing measures, said Eurogroup president Jean-Claude Juncker. The deal will lower Greece’s debt through a mix of interest-rate cuts on loans to Athens, a buyback of Greek debt at sharply discounted prices and the European Central Bank returning profits linked to its holdings of Greek bonds to the Greek government.

London Bankers Bracing for Leaner Bonuses Than New York (Bloomberg)
nvestment bankers and traders at European banks should expect at least a 15 percent cut in pay this year, while U.S. lenders may leave compensation unchanged, three consultants surveyed by Bloomberg said. That’s because bonus pools at European banks may be reduced by as much as half, while those at U.S. firms, which can cushion the impact of falling fees in the region with earnings from home, may fall 20 percent, they said. “The real split is coming, and we will see the quantum divide this year,” said Tom Gosling, a partner at PricewaterhouseCoopers LLP in London, referring to the difference in pay between the two financial centers. “U.S. regulators don’t have the same obsession with pay structures that European regulators have.”

Dimon Would Be Best to Lead Treasury in Crisis, Buffett Says (Bloomberg)
“If we did run into problems in markets, I think he would actually be the best person you could have in the job,” Buffett said in response to a question about Dimon from Charlie Rose, according to the transcript of an interview that was scheduled to air yesterday on PBS. “World leaders would have confidence in him.” […] Dimon, once dubbed Obama’s “favorite banker” by the New York Times, said in a 2011 CNBC interview that he could never work as Treasury secretary and was “not suited to politics.”

Carney Abondons A Haven, Leaping Into British Storm (WSJ)
Philipp Hildebrand, the former head of the Swiss National Bank, described Mr. Carney as one who “speaks bluntly and politely.” The son of a professor and a teacher, Mr. Carney grew up in Edmonton, the capital of Canada’s western province, Alberta. He played hockey as an undergraduate at Harvard. Mr. Carney has close links to Britain, having studied in Oxford University in the early 1990s. He worked for a time in Goldman Sachs’ London office…Known as a diplomat, Mr. Carney, who supports the Edmonton Oilers NHL team, in his Ottawa office displays a mock street sign alluding to one of Canada’s other pro teams, the Ottawa Senators. He cultivates an everyman image, recently discussing his musical tastes—from AC/DC to the hip-hop group Down with Webster—in local media interviews.

Fiscal Cliff Compromise Elusive as Congress Returns (Bloomberg)
“There’s still a great deal of ground that has to be covered before they get anywhere near a budget deal, and time is running” short, said Phil English, a former Republican congressman from Pennsylvania and now a lobbyist at Arent Fox LLP in Washington.

The Secret Powers Of The Son-In-Law (WSJ)
In couples where the husband initially reported being close to his wife’s parents, the risk of divorce over the next 16 years was 20% lower than for the group overall. Yet when the wife reported being close to her in-laws, that seemed to have the opposite effect: The risk of divorce with these couples was 20% higher. Dr. Orbuch has a possible explanation: The wife who feels close with her husband’s parents may find it difficult to set boundaries and over time may come to see their close relationship with her as meddling. “Because relationships are so important to women, their identity as a wife and mother is central to their being,” says Dr. Orbuch, author of the 2012 book “Finding Love Again: 6 Simple Steps to a New and Happy Relationship.” “They interpret what their in-laws say and do as interference into their identity as a spouse and parent.” Men, for the most part, don’t have this problem. Their identity as a father and a husband is often secondary to their identity as a provider, Dr. Orbuch says. As a result, they don’t tend to take what their in-laws do so personally.

Chicago, Illinois charges woman $105,761 for parking infractions she did not commit (TN)
Jennifer Fitzgerald is fighting back against the city, her ex-boyfriend and United Airlines with a lawsuit filed November 2 in Cook County Circuit Court. According to the complaint, the somewhat confusing story starts when her former boyfriend Brandon Preveau, bought a 1999 Chevy Monte Carlo from Fitzgerald’s uncle for $600 in 2008. Despite paying all the fees associated with owning a vehicle (registration, title and insurance) he put the vehicle’s registration in Fitzgerald’s name — something the West Side Chicago resident claims was done without her knowledge…the couple broke up at the start of 2009 and Preveau took the car with him after their split. He used the Monte Carlo to drive to work at O’Hare Airport where he was employed by United Airlines. Preveau would leave the vehicle in O’Hare parking lot E, a secured outdoor lot surrounded by high chain link fencing, that is open to the flying public but also utilized by airport employees. The parking lot is owned by the city of Chicago and operated by Standard Parking Corporation, but according to the complaint, United Airlines leases spaces in the lot for use by airline employees. Unbeknownst to Fitzgerald, Preveau abandoned the vehicle. According to the complaints, “On or before November 17, 2009, Brandon drove the automobile into the parking lot and never drove it out again.” While the car Preveau drove began receiving parking tickets at the O’Hare lot as early as May 23, 2009, the key date for this story is November 17, 2009. On that day the vehicle was issued seven different parking tickets including being in a hazardous and dilapidated condition, no city sticker, broken headlights, missing or cracked windows, expired plates, being an abandoned vehicle and most importantly a violation for parking a vehicle for more than 30 days in a city-owned lot.

Intrade, Facing Charges, Won’t Take U.S. Bets (WSJ)
The online-predictions exchange Intrade—known for offbeat markets on presidential politics and the Academy Awards—said it would no longer accept bets from U.S. residents. The move came just hours after U.S. regulators filed a civil complaint against the firm over its commodities-focused markets. “We are sorry to announce that due to legal and regulatory pressures, Intrade can no longer allow U.S. residents to participate in our real-money prediction markets,” the Dublin-based company said in a statement on its website. Intrade said that existing customers must exit their trades and close their accounts.

In China, Hidden Risk of ‘Shadow Finance’ (WSJ)
Shadow finance in China totals about 20 trillion yuan, according to Sanford C. Bernstein & Co., or about a third the current size of the country’s bank-lending market. In 2008, such informal lending represented only 5% of total bank lending. The sector is lightly regulated and opaque, raising concerns about massive loan defaults amid a softening economy, with ancillary effects on the country’s banks.

Harvard Doctor Turns Felon After Lure of Insider Trading (Bloomberg)
Today, Joseph F. “Chip” Skowron III, 43, is serving a five-year term for insider trading at the federal prison at Minersville, Pennsylvania. At FrontPoint, Skowron lied to his bosses and law enforcement authorities, cost more than 35 people their jobs and stooped to slipping envelopes of cash to an accomplice. FrontPoint is gone. Morgan Stanley, which once owned FrontPoint, is seeking more than $65 million from Skowron, whose net worth a year ago was $22 million. Until he’s a free man, his wife of 16 years will have to care for their four children and Rocky, their golden retriever, on her own…Health care has become America’s sweet spot for insider traders like Skowron. Among researchers, physicians, government officials and corporate executives, the lure of easy money in health-care insider trading has become epidemic. Since 2008, about 400 people were sued by regulators or charged with insider trading; of those, at least 94 passed or received tips involving pharmaceutical, biotechnology or other health-care stocks.

Man Arrested For Saying He Had Dynamite in His Luggage at Miami International Airport (NBC)
A man was arrested for telling a TACA ticket agent that he had dynamite in his luggage, which prompted the partial evacuation of Concourse J at Miami International Airport on Monday, Miami-Dade Police said. Alejandro Leon Hurtado, 63, a doctor from Guatemala, faces a charge of false report bomb/explosives at airport, the arrest affidavit said. It wasn’t immediately known if Hurtado had an attorney. The ticket agent had just accepted Hurtado luggage, when he asked him about whether it contained hazardous materials. Hurtado answered that he had dynamite in the baggage, and the ticket agent asked him again if he had dynamite in his bag, and he replied that he did and started laughing, the affidavit said. “Once the Defendant was told that police were going to be called the Defendant stated that he was joking,” the affidavit said. Hurtado admitted he did say he had dynamite in his bag, but that it was a joke. Hurtado was in custody on an immigration hold Monday night, according to online Miami-Dade Corrections records.

41 comments (hidden to protect delicate sensibilities)
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Comments (41)

  1. Posted by guest | November 27, 2012 at 8:52 AM

    Wonder if J.J Walker is on the no-fly list.

  2. Posted by ELewisFan69 | November 27, 2012 at 8:58 AM

    I too am down with Webster.

  3. Posted by J. Corzine | November 27, 2012 at 9:03 AM

    Dear Chip and Intrade, you should have been an Obama bundler

  4. Posted by Guest | November 27, 2012 at 9:06 AM

    Looks like skinny jeans are going to become the norm at the BOE

  5. Posted by UBS MD | November 27, 2012 at 9:08 AM

    I'm a UBS bungler.

  6. Posted by Shecky Cramden | November 27, 2012 at 9:14 AM

    An investment banker had just finished reading a new book entitled, 'You Can Be The Man of Your House.'
    He stormed to his wife in the kitchen and announced, 'From now on, you need to know that I am the man of this house and my word is Law. You will prepare me a gourmet meal tonight, and when I'm finished eating my meal, you will serve me a sumptuous dessert.
    After dinner, you are going to go upstairs with me and we will have the kind of sex that I want. Afterwards, you are going to draw me a bath so I can relax. You will wash my back and towel me dry and bring me my robe.
    Then, you will massage my feet and hands. Then tomorrow, guess who's going to dress me and comb my hair and send me off with a smile on my face??'
    His Sicilian wife Gina replied, "The fucking funeral director would be my first guess."

  7. Posted by Bob McKenzie | November 27, 2012 at 9:15 AM

    I remember Mark Carney as one who says:
    "How's it goin', eh?"
    "Take off, eh!"
    "Beauty, eh?"

  8. Posted by luxurylink | November 27, 2012 at 9:19 AM

    - a gajillion for using the word "sumptuous".

  9. Posted by Doug MacKenzie | November 27, 2012 at 9:20 AM

    "like we found this here mouse in one of YOUR beers, eh?"

  10. Posted by Guest | November 27, 2012 at 9:25 AM

    I'm with Warren. Here are my cabinet nominations:

    Jamie Dimon as Treasury Secretary
    Dalai Lama as Secretary of State
    Vin Diesel as Secretary of Defense
    Joe Pesci as Attorney General
    Nadiya Suleman as Secretary of Labor
    Ty Pennington as Secretary of Housing and Urban Development

  11. Posted by Matt's Mom | November 27, 2012 at 9:27 AM

    Jamie, if you decide to be the Treasury secretary you're going to need some help putting together all types of charts and graphs for reports, I know someone who might be interested in helping you out with that.

  12. Posted by VonSloneker | November 27, 2012 at 9:38 AM

    Furiously and maniacally unwinding my Les Mis Best Picture bet at InTrade.

    – Nobody Straight Anywhere

  13. Posted by guest | November 27, 2012 at 9:42 AM

    I hope Jamie does take the job as treasury secretary and his first action is to send Warren Buffett a $50 billion tax bill for all the excess income he's received over fair value to his secretary at her effective tax rate

  14. Posted by Bald or Beard? | November 27, 2012 at 9:42 AM

    Replace Vin Diesel with Chuck Norris. Other than that, I have no concerns.

  15. Posted by UBS Gay Outreach VP | November 27, 2012 at 9:45 AM

    You moron, it's going to be Magic Mike for sure.

  16. Posted by Guest | November 27, 2012 at 9:45 AM


    – Guy furiously unwinding his bet and wondering if that one time in college wasn't a drunk mistake

  17. Posted by VonSloneker | November 27, 2012 at 9:47 AM

    Coo loo coo coo – coo coo coo coo

  18. Posted by Sexy Rexy | November 27, 2012 at 9:48 AM

    Jamie Dimon is the Fireman Ed of banking.

  19. Posted by Eric Holder | November 27, 2012 at 10:00 AM

    that would not be enough "diversity"

  20. Posted by uhhhh | November 27, 2012 at 10:02 AM

    too vivid

  21. Posted by Fast Runner | November 27, 2012 at 10:05 AM

    See an American woman, just fucking run the other way. Nut jobs all. Where do they all go to learn crazy? High school?

  22. Posted by guest | November 27, 2012 at 10:25 AM

    The Great White North where kids know there is no Santa Claus and no bullion in MTB depository in NY………

  23. Posted by TheCity | November 27, 2012 at 10:26 AM

    If you don't eat yer meat, you can't have any pudding! How can you have any pudding if you don't eat yer meat?

  24. Posted by guest | November 27, 2012 at 10:26 AM

    Jamie for President 2016!

  25. Posted by Phil Ivey | November 27, 2012 at 10:28 AM

    Still waiting for my Full Tilt bucks now this?

  26. Posted by Guest | November 27, 2012 at 10:35 AM


    – East Asian with Rapist Wit

  27. Posted by guest | November 27, 2012 at 10:38 AM

    Nah. Dyn-o-Mite is fine. It's dynamite that gets you in trouble.

  28. Posted by Willona | November 27, 2012 at 10:43 AM

    "Turd Burglar"

    – fixed it for you

  29. Posted by Math major | November 27, 2012 at 10:45 AM

    - a minus bazillion for using gajillion

  30. Posted by Puck It | November 27, 2012 at 10:51 AM

    They don't have to learn crazy. It comes standard issue with the vagina.

  31. Posted by Guest | November 27, 2012 at 10:51 AM


    – Puerto Rican with Rapist Wit and 1997 Honda Civic

  32. Posted by Guest | November 27, 2012 at 10:54 AM

    You must not get out much. Ever dealt with Russians or Persians? They make the crazy Americans I know seem docile.

  33. Posted by EQ in Dallas | November 27, 2012 at 11:12 AM

    no thanks on the tube steak smothered in underwear

  34. Posted by Mittens spy | November 27, 2012 at 11:18 AM

    Ridiculous things happening in Chicago? I'm shocked.

    – DNC staffer

  35. Posted by CD $ | November 27, 2012 at 11:29 AM

    Most of our gold is still in the ground

  36. Posted by PFG account 457769 | November 27, 2012 at 11:30 AM

    Hey !

  37. Posted by Disastrous Policy | November 27, 2012 at 11:31 AM

    They shouldn't be getting in much

  38. Posted by PermaGuestII | November 27, 2012 at 12:10 PM

    "Elsinore brewery… Elsinore castle… Royal Canadian Institute for the Mentally Insane…"

  39. Posted by W Tilson | November 27, 2012 at 1:47 PM

    I, too, would nominate Jamie Dimon as Treasury Secretary

  40. Posted by Wm. J. LePetomaine | November 28, 2012 at 2:48 AM

    "The Sheriff is near!"

  41. Posted by dandraka | November 29, 2012 at 5:03 AM

    And footnotes. Never forget the footnotes !