Opening Bell

Opening Bell: 06.21.13

U.S. Weighs Doubling Leverage Standard for Biggest Banks (Bloomberg)
The standard would increase the amount of capital the lenders must hold to 6 percent of total assets, regardless of their risk, according to four people with knowledge of the talks. That’s twice the level set by global banking supervisors. … “The 3 percent was clearly inadequate, nothing really,” said Simon Johnson, an economics professor at the Massachusetts Institute of Technology and a former chief economist for the International Monetary Fund. “Going up to five or six will make the rule be worth something. Having a lot of capital is crucial for banks to be sound. The leverage ratio is a good safety tool because risk-weighting can be gamed by banks so easily.”

China steps back from severe cash crunch (FT)
China pulled back from the brink of a severe cash crunch on Friday, with money rates falling after reports that the People’s Bank of China, the central bank, had acted to alleviate market stresses. Nevertheless, interbank conditions remained tight and analysts said the PBoC would continue its hard line of recent days to compel financial institutions to pare back their leverage.

Sprint Beats Dish’s Latest Bid for Clearwire (DealBook)
Sprint Nextel raised its bid for Clearwire to $5 a share on Thursday, hoping to knock out a rival offer from Dish Network. The new offer, which values Clearwire at about $14 billion, is 47 percent higher than Sprint’s last proposal. It is also higher than Dish’s most recent bid of $4.40 a share.

Banks Race to Increase Salaries to Beat EU Bonus Caps (IBT)
Banks are racing to overhaul their remuneration structures by bumping up fixed salaries ahead of European Union-imposed bonus caps in 2015. According to a prominent employment partner at law firm Pinsent Masons, banks are stuck between having to overhaul remuneration procedures by a certain deadline but without concrete rules, which is likely to result in across-the-board increases in salary.

FAA to Relax Rules for Gadgets in Flight (WSJ)
The Federal Aviation Administration is expected to relax the ban on using some types of personal-electronic devices at low altitudes, allowing passengers leeway during taxiing and even takeoffs and landings, according to industry officials and draft recommendations prepared by a high-level advisory panel to the agency. For fliers, the new rules would likely mean an end to familiar admonitions to turn off and stow all electronic devices. Cellphone calls are expected to remain off limits, however.

War of words erupts after wedding guests gift bride ‘cheap and embarrassing’ food hamper containing marshmallow fluff and croutons
Kathy Mason from Hamilton, Ontario, and her boyfriend, who wished to remain anonymous, decided to create a food hamper for their friends’ same-sex marriage and packed it with a mix of ‘fun’ treats including pasta, olive oil, croutons, biscuits, Marshmallow Fluff and Sour Patch Kids. They attached a carefully worded card to the parcel which read: ‘Enjoy . . . Life is delicious.’ However, the European newlyweds were less than impressed with the gesture and contacted the couple the next day via text message to ask if they had the receipt so they could get the money back instead. … ‘You ate steak, chicken, booze, and a beautiful venue . . . If anything you should be embarrassed for being so cheap and embarrassing,’ the brides said in one message.

Creeping mistrust stops euro zone banks lending to peers across bloc (Reuters)
In a trend that could reignite fears about the euro and its banks, European Central Bank data shows the share of interbank funding that crosses borders within the euro zone dropped by a third, to just 22.5 percent in April from 34.5 percent at the beginning of 2008. Banks are now lending to other banks across euro zone borders at only about the same rate as when the single currency was first launched, 15 years ago.

Greek markets rattled by political disarray (FT)
The benchmark 10-year bond yield of Greece rose 75 basis points to 11.6 per cent by late morning in London, while the Athens stock exchange index fell 2.9 per cent to its lowest level since early April. … Investor sentiment towards Greece is not helped by uncertainty over how to plug a funding gap in the country’s bailout programme. The FT reported on Thursday that the International Monetary Fund might suspend aid to Greece next month unless the eurozone stepped in.

Losses loom for investors enmeshed in U.S. mortgage chaos (Reuters)
A review of loan documents, property records and the monthly reports made available to investors show that mortgage servicers are reporting individual houses are still in foreclosure long after they have been sold to new buyers or the underlying mortgages have been paid off. … In one case, Reuters found that Bank of America Corp had been collecting a monthly servicing fee of $50.73 from investors on a loan that had been paid off nearly two years ago, investor reports show. Bank of America filed a document at a local county office on July 22, 2011 showing that the $162,400 loan on a cream-colored duplex in Greenacres, Florida, owned by a drywall hanger named Roman Pino, had been satisfied and “cancelled.” But investors in Pino’s loan and more than 6,700 other similar mortgages that are bundled together in a subprime mortgage bond still have not been informed that the loan no longer exists, according to the last investor report in May.

Good and Evil Battle Volatility on Summer Solstice (CNBC)
“Summer Solstice is upon us: the longest day of the year in the northern hemisphere where some religions in the western world believe the sun defeats the forces of evil.” Also it’s triple witching.

Oracle to Leave Nasdaq for the Big Board (DealBook)
Oracle, one of the most prominent technology companies listed on the Nasdaq, is defecting to a rival exchange. The company, which has been traded on the Nasdaq since 1986, has applied to be listed on the New York Stock Exchange, it said in a filing on Thursday. The transfer, among the largest ever between the exchanges, represents a significant gain for the Big Board, which has been trying to bolster its technology credentials.

FINRA beefs up policing of arbitrators (Reuters)
The Financial Industry Regulatory Authority’s policy change comes after Reuters asked questions about the background of Demetrio Timban, a Medford, New Jersey-based arbitrator who has become a central figure in a lawsuit between Goldman Sachs Group Inc and a wealthy investor. Timban was indicted by the state of New Jersey for practicing law without a license, although charges were later dropped under a state program to deal with non-violent offences. He was also reprimanded by a Michigan regulator for the New Jersey incident and passing $18,000 in bad checks. Timban said in an interview he had closed his New Jersey office and the check-writing incident was “accidental,” as a family member was supposed to wire funds to cover the check. But FINRA said it did not learn of the New Jersey indictment for five months and that Timban failed to tell it about the Michigan problems altogether, while he arbitrated the Goldman case.

Brooklyn framer accuses former boss of firing him for being too fat (NYP)
The owner of a picture-framing shop in Brooklyn fired a worker because he was too fat to fit in the aisles, a lawsuit claims. Seth Bogadanove, 52, of Bath Beach, is suing Frame It In Brooklyn, in Sunset Park, and owner Jerry Greenberg, claiming he was canned after gaining weight because of medication. “Oh, my God! What happened to you? You got so fat!” the suit says Greenberg told Bogadanove after he returned from a leave. … But Greenberg told The Post he never hired Bogadanove back, only gave him an opportunity to work from home. He called Bogadonove’s story “ridiculous.” “He was sweating, and he couldn’t make it up stairs,” Greenberg recalled. “But that would never come out of my mouth in my wildest dreams.”

Video shows woman tossing perceived rival off cliff (CBS)
Surveillance video caught a brutal fight between a woman and her perceived romantic rival in Arequipa, Peru, but it’s pretty one-sided. A woman caught her husband walking with a younger woman while they were out on a stroll by a cliff back in January. She is seen grabbing the younger woman by the hair and dragging her off a cliff, where she reportedly plunged about 20 feet. She is okay after the fall – she only sustained some cuts and bruises, was treated at a hospital and released.

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36 Responses to “Opening Bell: 06.21.13”

  1. HotKarl says:

    In terms of revenge, throwing a romantic rival off a cliff > an 'upper decker' in said romantic rival's toilet

  2. HotKarl says:

    Thats funny….my wedding present to the lesbian couple of sushi, ceviche and 10 cans of Starkist tuna weren't rejected in similar fashion.

  3. Guest says:

    Aaron's attempt at getting away with murder is so B-League.

    – R. Lewis

  4. Jon Corzine says:

    "You ate steak, chicken, booze, and a beautiful venue"

    How do you eat a beautiful venue??? Lol lesbos and their poor grammar.

  5. Guest says:

    I for one will stand up for the right of any person to love whomever he or she wishes, to hold a celebration of that love, and to invoice everyone who attends for the expense (plus a reasonable profit margin).

    • segoviacobain says:

      We told them that we were registered at Harry Winston, and they were expected to purchase the cloisonee butt plug.

      • segoviacobain says:


        Here at MoneyWeddings, Inc, we have the Matrimony Industries leading profit reputation. Our hosts, doormen and even our bands have a combined 200 years of experience in the collections industry. Call us, and see how much you can make from your nuptuals.

  6. Puck It says:

    Raise your hand if you knew that Peru was in Florida.

    —Guy who misses his daily dose of bat-shit crazy Florida folks

  7. Ad Rock says:

    And then she stuck her strapon in the mashed potatoes!

    • VonSloneker says:

      Let me introduce myself on this cut, I'm Adrock and I'm lit like a mutha-fuck…

      – Stuyvesant Leader

  8. DingALing says:

    "Greek markets rattled by political dissaray"

    …and this is news?

  9. Ellis says:

    Nasdaq used to be such a lovely place, then they started letting this crappy little upstarts join.

  10. Tonguepuncher says:

    Carpet munchers should be used to a little fluff.

  11. guest says:

    Two brides = twice the bitchiness?

    • Quant me maybe ... says:

      Reminds me of a story from my past. I was rather late to completing college. Started off — and went pfffffffft. My old man, enraged, told me grow up. Offered to buy me a one way ticket to Alaska to work on a fishing boat and to go to college when I was ready. Not to be one-upped, I joined the Marine Corps. When I separated after 5 fun filled years, I was finally ready for college.

      Not knowing anyone, and having spent a year alone in an off campus apartment, I decided to move on campus. Too old for roommates who were 18, I applied for and was hired to become a resident assistant on campus. Now, the hall director seeing this nice, slightly insane former Marine thought that I would be able to get a handle on the 'problem dorm'; they had been through 6 RAs the previous year. I said sure without inquiring much about it. I was happy to get free room and board.

      One week before classes start I show-up for RA training. Bunch of feel good bullshit in which about 60 or so young emotionally needy folks sit around and do team building exercises and have sex with each other because no one was around to walk in on them. Now my room was great — nice and large, it even had it's own bathroom. I was looking forward to meeting the 60 or folks who were going to live in the residence hall that I was responsible for. Who knows, maybe I would make a couple of friends.

      Well, check-in day comes and I get the printout with the names, room assignments and the box of keys. I start looking through the list — all female. Thinking I had the wrong list, I find the hall director and point out the obvious mistake. Unconcerned, she shrugged it off and confirmed that yes, I was going to have an all female dorm — they needed an RA with 'life experience't to watch over the girls; there had been 'issues'.

      So, I become an RA in an all female dorm. Let me tell you it was an experience that I will never ever forget and God Willing will never ever repeat. The 'girls' were mostly juniors and seniors — there were a lot of singles and you had to be an upper classmen to draw something like that. I should have kno

      • Guest says:

        So you called your mommy who then went to campus to talk to the 'girls' and the 'girls' did her good.

      • Im_a_Dude says:

        you dropped off mid sentence. did you run out of steam?

        • Quant me maybe ... says:

          No. The rest just disappeared. I went on about how the level of crazy is a function of the square of the number of girls living together — with examples. And no, I didn't sleep with any of them – they put the certifiably insane and the aggressive lesbians in singles so they wouldn't drive their roommates off the deep end. I lasted one semester and got an all male floor. The only problems there were drinking, drugs and homophobia. Not cutting yourself, late night calls to deal with the fallout from passive aggressive refrigerator content theft and way too many girls 'sharing feelings' with each other.

      • segoviacobain says:

        Okay, I'll bite…how long before one of these Reform School Girls was pegging you?

      • Bores easily says:

        You lost me at R

      • Guest says:

        Thanks for sharing a story with such potential that took suck to a higher level and not in a good way.

        – every straight guy and every gay girl.

  12. Guest says:

    How are croutons a fun treat? Was there some spinach and a pair of washing up gloves as well?

  13. sohbet says:

    WInklevoss Twins, Bitcoins, and ETF's. This is a prewritten Saturday Night Live Parody.