Opening Bell

Opening Bell: 02.01.13

Barclays CEO Gives Up Bonus For 2012 (WSJ)
Mr. Jenkins, who was named Barclays CEO last year, said in a statement that it was “only right” he give up his pay in light of the various problems that have beset the U.K. bank in recent months. Mr. Jenkins’s predecessor, Robert Diamond, quit the bank following allegations that the bank tried to rig interbank lending rates. Barclays is wrestling with other industrywide issues, including the misselling of payment-protection insurance and interest-rate hedging products. “I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances,” Mr. Jenkins said.

Worst Not Over for Spain Banks After Big Writedowns (CNBC)
“The problems for Spanish banking are far from over,” Ashok Shah, chief investment officer at wealth management firm London & Capital, told CNBC on Friday. “The underlying real estate market is only half-corrected,so when it fully corrects over the next year of two, the non-performing loans are going to keep spiking up which will keep eating into the tier-one capital so the need to raise more equity is going to be enormous and very, very pressing indeed.”

‘London Whale’ Sounded an Alarm on Risky Bets (WSJ)
In one instance, Mr. Iksil told another trader that the size of his bets was getting “scary,” according to emails in a Jan. 16 report by J.P. Morgan and to the people familiar with the emails. Mr. Iksil’s emails, according to people familiar with them, show there was concern within J.P. Morgan’s chief investment office before Chief Executive James Dimon dismissed as a “tempest in a teapot” reports on the whale trades, including an April 6 article in The Wall Street Journal. The New York company first disclosed the trading losses in May, and Mr. Dimon subsequently said he was wrong to have played down concerns raised by the news report.

$3.8 Million Bonus For Gorman (NYP)
Morgan Stanley reduced pay by 7.1 percent for Chairman and CEO James Gorman, giving him a $9.75 million package that included a $3.75 million long-term incentive award. The bank almost doubled Gorman’s base salary to $1.5 million from $800,000, according to a regulatory filing yesterday.

Edward Koch, Brash New York Mayor in 1980s Boom, Dies at 88 (Bloomberg)
Serving from 1978 through 1989, Koch presided over the Wall Street-fueled economic boom of the 1980s, turning a $1 billion budget deficit into a $500 million surplus in five years. He restored the city’s credit, doubled the annual budget to $26 billion and oversaw $19 billion in capital improvements. His subsidized housing plan produced more than 156,000 new and renovated units. “Through his tough, determined leadership and responsible fiscal stewardship, Ed helped lift the city out of its darkest days and set it on course for an incredible comeback,” Mayor Michael Bloomberg said today in a statement. He called Koch “an irrepressible icon, our most charismatic cheerleader and champion.” Koch’s in-your-face style, straight talk and catchphrase “How’m I doing?” endeared him to New Yorkers wracked by the lingering fiscal crisis, the Son of Sam serial killings and the arson and looting that erupted after a blackout in July 1977.

Geraldo Rivera considering run for U.S. Senate (NYDN)
“Fasten your seatbelt,” the mustachioed Fox News host said on his radio show Thursday. “I’ve been in touch with some people in the Republican Party in New Jersey. I am truly contemplating running.” The Brooklyn native is eyeing a 2014 bid for the seat currently held by aging Democrat Sen. Frank Lautenberg, who may not seek reelection. Newark’s Democrat mayor, Cory Booker, is exploring a run.

Stifel Stalks Faltering Firms as Wall Street Retrenches (Bloomberg)
Stifel Financial Chief Executive Officer Ron Kruszewski paused in mid-sentence and asked an employee for the list, a chart showing in red which of the St. Louis-based firm’s rivals have closed or sold out. “There’s this huge consolidation,” Kruszewski, 54, said in an interview in his office, referring to the once crowded field of U.S. regional and local brokerages that vied to serve mid-size companies. “What’s left is very few firms that ever were in the middle market. We’re one of them.” About a dozen golf putters lean against a table. Nine floors down, the lobby is being remodeled with glass and white stone, while a bronze bull and bear statue is planned for outside. The way Kruszewski views it, St. Louis is now the No. 2 U.S. brokerage hub after New York…

Economy Adds 157,000 Jobs (WSJ)
Economists surveyed by Dow Jones Newswires expected nonfarm payrolls to rise by 166,000 and that the unemployment rate would hold steady at 7.8%.

U.S. Sues to Block Big Beer Merger (WSJ)
The surprise lawsuit seeks to block Bud Light maker Anheuser-Busch InBev NV’s deal with the Mexican company that owns the Corona brand, and comes just a day after concession talks with the government broke down. U.S. authorities said they want to prevent any overcharging by the global giants that dominate mass-market brews.

Burger King admits it has been selling beef burgers and Whoppers containing horsemeat (DM)
The fast food chain, which has more than 500 UK outlets, had earlier given a series of ‘absolute assurances’ that its products were not involved. However, new tests have revealed these guarantees were incorrect in a revelation that threatens to destroy the trust of customers. The contamination has been going on since at least last May and potentially for up to one year, according to evidence presented earlier this week. Tonight Burger King abandoned its earlier denials, saying: ‘Four samples recently taken from the Silvercrest plant have shown the presence of very small trace levels of equine DNA. Burger King vice president, Diego Beamonte, said: ‘We are deeply troubled by the findings of our investigation and apologise to our guests, who trust us to source only the highest quality 100per cent beef burgers. Our supplier has failed us and in turn we have failed you. We are committed to ensuring that this does not happen again.’ He added: ‘We will dedicate ourselves to determining what lessons can be learned and what additional measures, including DNA testing and enhanced traceability controls, can be taken to ensure that we continue to provide you with the quality products you expect from us.’

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80 Responses to “Opening Bell: 02.01.13”

  1. Guest says:

    Way to go Shazzer.

  2. ignorant teen says:

    people expect quality products from burger king?

  3. Guest says:

    Stupid horses

    -Chic-fila Cow

  4. Secretariat says:

    Eat me.

  5. Deleveraging says:

    I'm not a consumer of fast food, but who cares if it is horse meat. Do consumers feel cheated that they are not getting genetically modified, hormone enhanced, fat laden beef?

    DOJ: Never mind the merger, make them stop brewing their beer with rice. It tastes like piss.

  6. take the over says:

    What's the symbol for Shazer ?

  7. PermaGuestII says:

    RIP Mayor Koch. You did well, sir.

  8. guest says:

    Wheres your crown king nothing!

    -UBS Metallica Quant

  9. Guest says:

    "Burger King admits it has been selling beef burgers and Whoppers containing horsemeat"

    I thought they taste familiar.

    -M. Broderick

  10. Bejujular says:

    I think we better ask Jack Welch just to be sure.

  11. Inner Matt Thoughts says:

    Apparently because of the Super Bowl, Bess has asked (forced) the Dealbreaker team to wear our favorite NFL player jersey. I showed up to work without one, wearing my typical non-offensive, yet tastefully put together business casual attire. If my style was a car it would be a beige Toyota Camry. Bess is wearing a Dick Butkus jersey, which I assume is merely so she can make constant jokes and puns regarding the humorous nature of the man’s name. She also made her Buffalo wing dip that she makes entirely too spicy for my liking. Then there is Shazar. Shazar didn’t wear one, but his Chihuahua did. Paris is currently done up in a custom made pink 49ers jersey. Shazar even went as far as to paint the dogs nails pink. He said he had the stuff lying around his apartment and put it together last night. That got me thinking; Shazar not only has spare pink fabric lying around, but also pink nail polish. It's not even 10:30am and I want to go home.

  12. Texashedge says:

    Look's like the Burger King's rein may have ended

  13. J. Jones, Dallas, TX says:

    What brand of panties are they sellin' in the Superdome this weekend?

  14. guest says:

    “Fasten your seatbelt,” the mustachioed Fox News host said on his radio show Thursday.

    Does he know that by telling people to fasten their seat belts, by definition, he is warning them that the chances of something happening have increased?

    -Trader who is reminded of the clown (a literal clown) who won a seat in congress in Brazil with the tagline "it can't get any worse".

  15. Mr. Ed says:

    The Bastards!!

  16. Hobbes says:

    I don't know why the US didn't sue sooner, paying anything for Bud Light is overcharging.

    – Beer snob

  17. B. Frank says:

    I do not agree with the ideological view of Mr. Rivera, but I would like a mustache ride.

  18. Laxbro says:

    yoga pants on a slam who grew up riding equestrian >>>>>>>>>>>>>>>>>>>

  19. VonSloneker says:

    Got his nose broken by a chair and took the world on a journey to Al Capone's empty vaults…

    I would say he has no qualifications, but then I remember Stuart Smalley is a senator.

  20. guest says:

    Ever heard of Mad Horse Disease? Exactly! so STFU!

    -B. King

  21. Guest says:

    Did anyone else think that was cum dripping out of his mouth?