Cyprus Sets Bank Restructuring (WSJ)
Cyprus’s central bank chief said Tuesday that large depositors at the island’s biggest lender, Bank of Cyprus Pcl, could lose as much as 40% on their deposits. In a television interview later, the finance minister said large uninsured deposit holders at the second-biggest, Cyprus Popular Bank Pcl, might only see one-fifth of their money returned and could wait several years before being paid back. Central banker Panicos Demetriades said at a news conference that a special administrator would be appointed to oversee both the winding down of Cyprus Popular, also known as Laiki, and the merger of its healthy assets with Bank of Cyprus. Plans for the move prompted Bank of Cyprus Chairman Andreas Artemis to submit his resignation earlier in the day.
UK Banks Facing Capital Shortfall (WSJ)
U.K. banks must come up with £25 billion in fresh capital by the end of the year to start plugging an estimated £50 billion ($75.8 billion) capital shortfall across the sector, the Bank of England’s Financial Policy Committee said Wednesday.
Banks Looking At $100 Billion Legal Tab (WSJ)
The largest U.S. banks—Citigroup, J.P. Morgan Chase & Co., Bank of America Corp. and Wells Fargo—together have paid $61.3 billion to settle credit-crisis and mortgage claims over the past three years, according to SNL Financial, Charlottesville, Va. Research firm Compass Point Research & Trading LLC estimates that U.S. banks will wind up owing a further $24.7 billion related to the repurchase of faulty mortgage loans.
From Finance to Sex Therapy: London Bankers Escape (CNBC)
Mike Lousada, an investment banker turned sex therapist, told CNBC that City workers should “follow their passion” and find an interest they could even develop into their own business. Having worked for two decades at Nomura, JP Morgan, Barclays and Societe Generale “amongst others,” Lousada told CNBC that his change of career from banking to sexual healing was a life choice. “I felt my City career no longer had meaning for me and I wanted to pursue something which gave my life meaning and purpose. As I grew, emotionally, I realized how unfulfilled I felt and I knew that there was something else calling me which would be more fulfilling,” he told CNBC. Called the “orgasm guru” among London’s chattering classes, Lousada has built up a reputation as a talented sex therapist with a long waiting list of clients paying 300 pounds ($454) for a therapy session with him.
Woman Attempts To Hide Tadpoles In Her Mouth At The Airport (UPI)
When airport security found a bottle of liquid in the woman’s carry-on luggage, they informed her that she’d either have to immediately drink or dispose of the liquid. The woman tipped back the small bottle and drank its contents, but security became suspicious when she refused to swallow. The woman eventually spit out was she was holding in her mouth: tadpoles.
Lehman plans to distribute $14.2 billion to creditors (Reuters)
The distribution includes about $9.4 billion to third-party creditors and affiliates, $4.4 billion among other debtors, and $370 million for newly-allowed claims.
Berkshire Set To Get Big Goldman Stake (WSJ)
The billionaire chief executive of Berkshire Hathaway accepted the stake in exchange for giving up his company’s right to purchase a larger number of Goldman shares at a below-market price, according to terms of the deal announced Tuesday. The pact, worth about $1.5 billion after Tuesday’s close, puts an exclamation point on the Omaha, Neb. company’s financial-crisis lifeline to Goldman. Berkshire’s realized and paper winnings on the 2008 preferred-stock investment now exceed $3 billion, making it one of Mr. Buffett’s most lucrative bets in recent years.
G4S Readies Guards as Cypriot Banks Prepare to Open (Reuters)
The world’s largest security firm, G4S, moves cash and will provide guards for Cypriot lenders including Bank of Cyprus and Cyprus Popular Bank, the two biggest, which are to be combined and see large depositors’ accounts frozen under a bailout agreed at the weekend. Cypriot banks have been shut for more than a week while the government worked out the bailout and will stay closed until Thursday to prevent a run. Meanwhile, Cypriots have been queuing to withdraw cash from automatic teller machines, with limits at some shrinking down to 100 euros a day. John Arghyrou, managing director of the Cyprus business for G4S, said its 750 employees have been working through the night, going out to replenish cash machines with police guard. Licensing rules prevented the firm from bringing in extra staff to handle the unprecedented workload.
Man charged with assault after roommate drew on him (WJLA)
A 31-year-old Arlington man is in jail after he was accused of assaulting his roommate when he realized he had drawn male genitalia on him. The alleged assault happened at about 5:30 a.m. Saturday inside a home in the 3100 block of North 17th Street. The accused, James Denham Watson, woke up to find that his roommate drew on his face.
Watson then allegedly assaulted his roommate, leaving him with serious, extensive injuries to the face. He was taken to Virginia Hospital Center to be treated for his injuries. The suspect was subsequently arrested and charged with malicious wounding. He’s being held without bond. The drawing on Watson’s face was still present when he was booked.