Gundlach Says Fed Mistaken in How It’s Ending Easing (Bloomberg)
Jeffrey Gundlach, manager of the $36 billion DoubleLine Total Return Bond Fund, said the U.S. Federal Reserve is making a “big mistake” in the way it ends its unprecedented asset-purchase program. “We thought the Fed wouldn’t walk away from QE,” or quantitative easing, and would buy securities until targeted yields were reached like in Japan and Europe, Gundlach said yesterday during a webcast for DoubleLine Capital LP’s investors. Instead, the central bank is opting for a “seat of the pants” way of handling policy, said the manager.
New Yorkers Mark 12th Anniversary of Sept. 11 (WSJ)
The official city tribute began at the National September 11 Memorial plaza at the World Trade Center site. Wednesday morning The names of the 2,983 victims lost in 2001 and the bombing of the site in 1993 were being read, and six pauses were to mark when the planes hit the towers, when they fell and when the Pentagon and Flight 93 were attacked. Hundreds of families gathered at the memorial, hoisting balloons, pictures and signs into the air as names are read. One family let a group of balloons into the air. “I miss you every moment,” said the mom of Joshua Todd Aron, after she read his name.
Greece May Need Two More Aid Packages (WSJ)
“It’s clear that we are not…at the end of the Greek problem for the moment. We will have to make some extra efforts—certainly once, perhaps twice—we will see how the situation evolves,” Luc Coene, European Central Bank Governing Council member, told Belgium radio station RTBL.
France Says It Will Miss Budget Deficit Targets (WSJ)
Finance Minister Pierre Moscovici said at a news conference that the public budget deficit will be 4.1% of economic output this year instead of 3.7%, and 3.6% in 2014 rather than 2.9%.
Lehman Recovery Seen as Justifying $2 Billion Bankruptcy (Bloomberg)
Five years later, Miller takes credit for helping fend off some creditors’ liquidation demands and instead turning the remains of one of the biggest failures of the financial crisis into a going concern. In the process, the Lehman estate has paid more than $2 billion in fees and expenses to professionals like him for that work, dwarfing the previous record of $757 million in Enron Corp.’s bankruptcy. In exchange for that eye-popping payday, approved by the judge in charge of the case, Lehman creditors are poised to get 18 cents on the dollar by 2016, from an estate valued at $65 billion, according to a liquidation plan approved in December 2011. Miller, 80, estimated that recovery may rise to as much as 22 cents as the value of Lehman’s assets increases over the next three years to about $80 billion.
Weiner Flips Out In Defeat (NYP)
The night began with yet another humiliation fo “Carlos Danger” when Sydney Leathers, the porn star who sunk his campaign by exposing their secret sexting affair, showed up at the Midtown bar where he was speaking. “He needs to stop being an embarrassment to the City of New York. He should have dropped out of the race a long time ago, in my opinion,” said Leathers, who wore a red dress that showed off her new breast implants…As he left Connolly’s bar, Weiner got mad at the press — obviously the source of all of his woes — and brought his sleazy campaign to a classless end by flashing his middle finger at a WNBC/Channel 4 reporter while he was being driven away.
Ackman Blasts Herbalife’s Accounting (NYP)
Bill Ackman is taking his battle with Herbalife to the company’s outside accounting firm, PricewaterhouseCoopers.
Ackman’s Pershing Square hedge fund has fired off a 52-page letter to the auditor, detailing “serious accounting, taxation and disclosure issues” at the controversial nutrition products company. The Aug. 29 letter, which was sent to Pershing’s investors last night, follows a 13 percent gain in Herbalife shares this month, fueled by speculation that PwC is on the verge of signing off on Herbalife’s financials…In the letter to PwC, Ackman argued that Herbalife underreports its distributor commission expenses by as much as $300 million a year, which overstates its profits. “Investors and regulators are misled as to the true amount of recruiting-related incentives paid by the company to its distributor base — a key factor in the determination of the legality of Herbalife’s network marketing scheme,” Ackman wrote.
Stringer Beats Spitzer Seeking Comeback as NYC Comptroller (Bloomberg)
Spitzer, 54, resigned as governor in 2008 after his trysts were disclosed. He entered the race in July, upending a contest in which Stringer, a career politician, was expected to coast to victory. The former “Sheriff of Wall Street” vowed to use the power of the pension funds to keep corporations well managed and socially responsible. The son of a multimillionaire real estate developer, Spitzer waged a self-financed campaign, outspending Stringer and outside groups backing him by $7.2 million to $5.3 million, according New York City campaign-finance records.
Talking Windmills Herald Gust of U.S. Productivity Growth (Bloomberg)
At the Top Crop farm in Dwight, Illinois, 200 turbines rise from a sea of corn and soybeans, their blades gently turning day and night to spin up wind energy. They talk to one another, unheard by the human ear, seeking to keep pace with their neighbors’ output. If one falls behind, sensors reach out to an office about 850 miles away in Schenectady, New York, where General Electric Co.’s remote operations center, using data from 19,000 windmills, finds the most efficient way to help. Intelligent monitoring of the machines has helped GE fix faults, limit snags and pre-empt thousands of failures. “I’m quite optimistic,” said Brynjolfsson, a professor at MIT’s Sloan School of Management in Cambridge. “When I look at the technologies coming along, I project some big improvements from productivity.”
Private Swiss Bank Says It Is Under Investigation in U.S. (WSJ)
Rahn & Bodmer Co. partner Christian Rahn said Wednesday that his bank recently learned it is among so-called category-one Swiss banks, the group of banks that are already under investigation by the U.S. Department of Justice. Mr. Rahn said the bank stopped dealing with untaxed U.S. funds in 2008, and has advised American clients to take part in voluntary offshore-disclosure programs offered by U.S. authorities.
Sydney Leathers Goes After Weiner (NYDN)
Tuesday evening, as it became clear the surgically enhanced Leathers would try to confront the sexting partner she had never met, on the night he was conceding defeat, reporters assembled outside of Connolly’s. When Leathers arrived, clad in a tight-fitting red dress and platform heels, the scrum of reporters pounced. “Why are you here?” she was asked. “I feel like it’s my obligation,” she replied. Plus, she said, “I’ll only be 23 years old once.” As she waited for the man she says “manipulated” her into a months-long relationship, Leathers, 23, stood in the hot glare of news cameras and smiled politely as some photographers asked to take long shots of her in her low-cut dress. After being turned away from Anthony Weiner’s party, Sydney Leathers switched out her out of her platform heels and into a pair of flats.