Opening Bell: 01.24.13

Witness Adds Thread To SAC Probe (WSJ)
A government informant has implicated a prominent former trader at SAC Capital Advisors, telling federal investigators the two swapped confidential stock tips for years, according to people briefed on the matter. The connection between ex-SAC portfolio manager Dipak Patel and the undercover mole, a California-based former portfolio manager at an investment fund, hasn’t previously been disclosed. Mr. Patel and his lawyer didn’t respond to requests for comment…Mr. Patel, who hasn’t been charged with any wrongdoing, was a technology-stock manager who worked under Mr. Cohen for years before leaving in 2010.

Obama To Name White As SEC Chief (WSJ)
President Barack Obama on Thursday will name Mary Jo White, a former star prosecutor who pursued terrorists and mobsters in New York, to lead the Securities and Exchange Commission, a White House official said.

Barclays CEO Says Bank Was Too Aggressive, Too Self-Serving (CNBC)
The bank which paid a fine of 290 million pounds for manipulating Libor and was caught up in the payment protection insurance scandal, has been trying to turn a new leaf. Jenkins, who took over as CEO in August, said the company was addressing its past mistakes. “We were too aggressive, we were too short-term focused and too self-serving,” Jenkins told CNBC at the World Economic Forum in Davos. “The industry, and Barclays, got it wrong on occasions,” he added.

Merkel Says Europe Must Persist With Reforms (CNBC)
German Chancellor Angela Merkel urged European nations to continue the economic reforms they have begun and argued that the debt crisis offered an opportunity for the bloc to become more competitive. “The political experience is that often you need pressure for political structural reforms,” she told delegates at the World Economic Forum in Davos, Switzerland. “If Europe is in a difficult situation today we need to implement structural reforms now so that we may live better tomorrow,” she said.

Knight Capital’s Profit Slides 84% (WSJ)
Profit in the quarter to Dec. 31 fell to $6.5 million from $40.2 million a year earlier, with per-share earnings sliding to a penny from 43 cents, below the three-cent consensus among analysts polled by Thomson Reuters. Revenue fell 16% to $287.7 million.

Jobless Claims Fall To 5-Year Low (WSJ)
Initial jobless claims, a measure of layoffs, fell by 5,000 to a seasonally adjusted 330,000 in the week ended Jan. 19, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires expected 360,000 new applications for jobless benefits last week.

Aleksey Vayner Reported Dead in New York (IvyGate)
Aleksey Vayner, the Yale graduate who became famous for a video résumé titled “Impossible is Nothing,” has died, according to several sources…Today a spokeswoman for the New York City Medical Examiner confirmed to IvyGate that a 29-year-old man matching Vayner’s description, under the name of Alex Stone, died on the morning of January 19 in Queens, New York. The spokeswoman indicated that the cause of death has yet to be determined. Sometime after moving to New York, Vayner began using the name Alex Stone, and according to Queens County court records, officially changed his name in April 2012.

Two men charged with robbery, assault and battery after stealing $400 from Girl Scouts selling cookies (NYDN)
Two men are being held on charges they stole nearly $400 from a group of Girl Scouts selling cookies at a store in Massachussetts. An adult supervising the Scouts suffered a broken nose and arm injuries trying to stop the men. Authorities say 22-year-old Nicholas Taverna of Greenfield and 25-year-old Cassidy Michalski of Deerfield were held on $5,000 bail each at their arraignment Tuesday on charges of unarmed robbery, assault and battery with a dangerous weapon and shoplifting. Police say the suspects stole two cellphones from the Walmart in Northampton on Saturday and tried to trade them for drugs in Holyoke. When that failed, they returned to Northampton where they had seen the 11- and 12-year-old Scouts earlier, and stole their cash box.

US Lawmaker Set to Unveil Financial Revamp (Reuters)
The proposal, expected as early as this week, will come from House Ways and Means Committee Chairman Dave Camp, whose panel has been exploring a broad tax code overhaul for more than a year. Camp wants to slash the top corporate tax rate to 25 percent from 35 percent and simplify the code.Critics of the current corporate tax system note that the United States has one of the steepest corporate tax rates in the world.

Commerzbank to Cut 6,000 Jobs (WSJ)
The cuts, representing up to 12% of the bank’s 49,215 full-time staff, will affect all group levels and units, in Germany and abroad, although online bank Comdirect AG and Polish unit BRE Bank will be excluded, according to an internal memo to staff.

Japan Posts Record Trade Deficit (WSJ)
Japan’s trade deficit nearly tripled to a record ¥6.927 trillion ($78.3 billion) last year and few expect a drastic improvement anytime soon, leaving Tokyo no choice but to carry on with efforts to boost the economy.

Citigroup’s Corbat Says Environment to Stay ‘Challenging’ (Bloomberg)
“People recognize the times we are in, these are challenging times,” Corbat, 52, said in an interview with with Bloomberg Television’s Erik Schatzker at the World Economic Forum in Davos today. “Things will remain challenging going forward for a period of time. Our people recognize that.” Corbat replaced the ousted Vikram Pandit as CEO at the third-biggest U.S. bank in October. He has since announced plans to fire about 11,000 employees and pull back from certain markets as he seeks to cut Citigroup’s costs and boost rewards for shareholders. Profit at the lender’s ongoing businesses slid 8 percent last year while costs rose. Citigroup cut investment bankers’ bonuses by 10 percent to 20 percent globally after a revenue slump, people with knowledge of the matter said last week. Corbat said the firm can still be “absolutely competitive,” on banker pay. “I think morale is good,” he said, without saying whether the company plans to cut more jobs. “Our employees are very confident around the strategy if you think about what’s going on in the world today.”

N.J. men sue Subway, claim they’ve been shorted on footlong sandwiches (AP)
The suit, filed Tuesday in Superior Court in Mount Holly, may be the first legal filing aimed at the sandwich shops after an embarrassment went viral last week when someone posted a photo of a footlong and a ruler on the company’s Facebook page to show that the sandwich was not as long as advertised. At the time, the company issued a statement saying that the sandwich length can vary a bit when franchises do not bake to the exact corporate standards. Stephen DeNittis, the lawyer for the plaintiffs in the New Jersey suit, said he’s seeking class-action status and is also preparing to file a similar suit in Pennsylvania state court in Philadelphia. He said he’s had sandwiches from 17 shops measured — and every one came up short. “The case is about holding companies to deliver what they’ve promised,” he said.

53 comments (hidden for your protection)
Show all comments ↓

Comments (53)

  1. Posted by Joe Sixpack | January 24, 2013 at 10:31 AM

    Stealing from Girl Scouts……definitely Goldman MD potential there……

  2. Posted by Fly on the Wall | January 24, 2013 at 10:45 AM

    Analyst level at best. An MD from Goldman would have invited his dealer and the girlscouts to lunch, brokered an overnight expansion of the drug distribution network via the scouts, and planted the stolen cell phones on the both of them before dipping out on the bill.

  3. Posted by Blue Thursdays | January 24, 2013 at 10:49 AM

    Where do I begin? Typical Thursday morning is all I had planned; today being that day of the week I head down to the cleaners to get my laundry on. Kind of in a rush out the door, so I grabbed the pile of shirts from the ground in my closet and set off to the place around the corner. I walk in and plop the shirts on the counter. Lady running the place ask me how many, I tell her I’m unsure and she begins to count. Then all of a sudden what should have been shirt #9 is actually my spooge rag. I’m embarrassed and at a loss for words. The rag being covered in my DNA is slightly stiff and resembles a piece of black cardboard with white blotches than an actual towel. Girl behind me knows what it is and I can hear her trying to hold in her laughter. The lady at the front counter holds it up high and looks at it with a sense of curiosity. Man this day can’t end fast enough.

  4. Posted by Guest | January 24, 2013 at 10:53 AM

    Five dollar, five dollar, five dollar ___________!

  5. Posted by McRib <3 | January 24, 2013 at 10:56 AM

    Is this Shazar?

  6. Posted by Pour some malt | January 24, 2013 at 11:05 AM

    NOOOOOOOOOOOOOOOOOO!

    RIP Aleksey Vayner,

  7. Posted by Savage Pampers | January 24, 2013 at 11:15 AM

    There's a mole in the SAC!

  8. Posted by Hobbes | January 24, 2013 at 11:18 AM

    Not as rong as advertised? Story of my rife!

    - Every Asian man

  9. Posted by guest | January 24, 2013 at 11:18 AM

    A new low for Deal Breaker…Posting pornographic pictures on the opening bell.
    -C. Christie

  10. Posted by No 0ne, ever | January 24, 2013 at 11:22 AM

    Well Mr. De Nittis, you sound like a useful, wholesome human being.

  11. Posted by DingALing | January 24, 2013 at 11:24 AM

    Stolen Cell Phones, Drugs, stealing from girl scouts…..Belichick isn't take the playoff loss so well

  12. Posted by Legal Engineering | January 24, 2013 at 11:27 AM

    Although he does get some sort of scumbag bonus points for creation of a new, "innovative" class action scam.

  13. Posted by Bejujular | January 24, 2013 at 11:32 AM

    Aleksey beat Jesus by four years.

  14. Posted by Guest | January 24, 2013 at 11:37 AM

    11" long

  15. Posted by Guest | January 24, 2013 at 11:37 AM

    That's what she (didn't) say.

  16. Posted by Bandersnatch | January 24, 2013 at 11:41 AM

    Malone: Stone. Alex Stone. That's your name? What's your real name?
    Alex Stone: That is my real name.
    Malone: Nah. What was it before you changed it?
    Alex Stone: Aleksey Vayner.
    Malone: Ah, I knew it. That's all you need, one delusian Russki on the team.

  17. Posted by BelzeBubba | January 24, 2013 at 11:43 AM

    Is it true? I didn't see him pass through the pearly gates. Need to check the basement because well all know impossible is nothing.

  18. Posted by Boyscout | January 24, 2013 at 11:45 AM

    "Two men charged with robbery, assault and battery after stealing $400 from Girl Scouts selling cookies"

    That's like what..8 boxes of cookies these days?

  19. Posted by Alt_EST | January 24, 2013 at 11:46 AM

    http://www.newyorker.com/archive/2006/10/23/06102

    For you new kids out there…a retrospective

  20. Posted by Girl Scout | January 24, 2013 at 11:47 AM

    Really, a guy named Cassidy? Hahahahahaha!

  21. Posted by Sigh | January 24, 2013 at 11:51 AM

    Better to come up an inch short on twelve than two on six.

  22. Posted by Texashedge | January 24, 2013 at 12:05 PM

    I have fond memories of Mr. Stone's (née Vayner's, née Garber's) video.

    One pretty unbelievable legacy he left: Adidas adopted his "Impossible is Nothing" koan about a year after the video broke.

    Like many legends, whether they be Jesus Christ, John Kennedy Toole, or Van Gogh, he was mocked and scorned in life and is now rightfully celebrated in death.

    We are all Aleksey Vayner.

  23. Posted by PermaGuestII | January 24, 2013 at 12:12 PM

    Apparently impossible was, indeed, something.

  24. Posted by Guest | January 24, 2013 at 12:21 PM

    Dirt floors in the closet. Another out-of-control hipster.

  25. Posted by Random Thought Guy | January 24, 2013 at 12:22 PM

    Gundlach in his annual letter deemed 2013 "The Year of the Snake." Isn't it about the snake *every* year with this guy?

  26. Posted by trinijames | January 24, 2013 at 12:38 PM

    please stop these king of the nerds ads, I only watch TBS for tyler perry shows

  27. Posted by Concerned citizen | January 24, 2013 at 12:40 PM

    Can someone please confirm that Peter Chung is still alive and well?

    Get the man more domes!

  28. Posted by Guest | January 24, 2013 at 1:02 PM

    No, this is though.

    Jonathan Shazar, Managing Editor
    Phone: +1 (212) 966-0051
    E-mail: jshazar AT FINalternatives DOT com

  29. Posted by Guest | January 24, 2013 at 1:13 PM

    Vayner knew Queens is the next Brooklyn. Respect.

  30. Posted by Im_a_Dude | January 24, 2013 at 1:44 PM

    lax, you had a few decent comments last few days, now its wtf, you're back to your old ways.

    if you were with a "slam" why did you r pants? afraid of herpes?

  31. Posted by Guest | January 24, 2013 at 1:48 PM

    Mr. DeNittis,

    If you are able to prevail in proving this case for your clients, I would like to consult you on expanding this litigation of false advertisement beyond fast food.

    L. Tilton

  32. Posted by Death & Taxes | January 24, 2013 at 2:08 PM

    Apparently Aleksey forgot about the two guarantees in life. More like "Impossible are somethings."

    - Death & Taxes

  33. Posted by Time Out | January 24, 2013 at 2:22 PM

    Time out:

    Wanted to discuss Asian sterotype comments on DB. So we can slang the way they pronounce words, but we can't call them Orientals like Mr, Bro or discuss Anal with Asians like Mr. Letterman?

    Thanks,

    The Curious Who Roam DB

  34. Posted by Property value down | January 24, 2013 at 2:24 PM

    O boy! Time to find another financial forum. Cough white flight cough/

  35. Posted by girl | January 24, 2013 at 2:25 PM

    Wow, truly sad to hear about Aleksey. Rest in Peace dude.

  36. Posted by BelzeBubba | January 24, 2013 at 2:27 PM

    Apparently anyone that posts on a Shazar story gets a stutter of the keyboard.
    http://dealbreaker.com/2010/01/the-extremely-resp

    That or the DB IT hamsters suck ass in more ways than you can imagine.

  37. Posted by BelzeBubba | January 24, 2013 at 2:31 PM

    Is Jeffrey "is what the subprime is in trouble" Chiang still alive?

    He must have starved to death by now.

  38. Posted by NakedShorts | January 24, 2013 at 2:31 PM

    Vicki: I thought you were dead
    MacGruber: So did I… but I'm not

  39. Posted by Shark collector | January 24, 2013 at 2:38 PM

    Suing people for coming up a little bit short is the NKI.

  40. Posted by Guest Walken | January 24, 2013 at 2:47 PM

    Tread carefully

  41. Posted by Patel SAC | January 24, 2013 at 2:47 PM

    They definitely never trade on prop non pub info.

  42. Posted by BelzeBubba | January 24, 2013 at 3:17 PM

    Now that he kicked the bucket can we see this in all its glory again?
    http://www.youtube.com/watch?v=rnW_9uiT1xg

  43. Posted by Guest | January 24, 2013 at 3:59 PM

    So will he rise in 2?

  44. Posted by GentlemanTrader | January 24, 2013 at 10:33 PM

    CHUNG IS KING!

  45. Posted by chat | February 20, 2013 at 11:06 PM

    goods blogs thanksasdasd

  46. Posted by sohbet | February 20, 2013 at 11:06 PM

    goods blogs thanksadsad

  47. Posted by sohbet odalari | February 20, 2013 at 11:06 PM

    goods blogs thanksxasdads

  48. Posted by cinsel chat | March 11, 2013 at 7:08 PM

    Gel diyince durmadan cak

  49. Posted by seks sohbet | March 11, 2013 at 7:08 PM

    Buyur blogking buddan yak

  50. Posted by sohbet | March 24, 2013 at 2:28 AM

    we always do a great job with our layoffs.

  51. Posted by sohbet | April 26, 2013 at 4:39 AM

    now much of financial/banking subject. Citigroup as in Citibank?

  52. Posted by sohbet odalari | April 26, 2013 at 4:39 AM

    sadsaal/banking subject. Citigroup as in Citibank?

  53. Posted by sohbet | July 8, 2013 at 8:54 PM

    officers to investigate Blackstone's fishy financial transactions, but they wound up giving them