Twitter Files To Go Public (WSJ)
In fewer than 140 characters, Twitter Inc. broke the news Thursday on its own short-message service that it has filed confidential paperwork to begin the process for its highly anticipated public offering. An IPO would mark a business milestone for seven-year-old Twitter, which is used by more than 200 million people and created a global online communication culture, but has yet to prove itself as a big and lasting business in the mold of Google and Facebook. Since Twitter’s filing was submitted to the Securities and Exchange Commission under a new law that allows small companies to keep their IPO documents private, Twitter didn’t reveal how fast it is growing or whether it is profitable. Goldman Sachs is the lead underwriter on the planned initial stock sale, people familiar with the matter said. One person familiar with the matter said other banks are expected to join Goldman in managing what is likely to be one of the highest-profile IPOs since Facebook went public in the spring of last year. A Twitter spokesman declined to comment.
Embattled JP Morgan Bulks Up Oversight (WSJ)
JP Morgan Chase facing a host of regulatory and legal woes, plans to spend an additional $4 billion and commit 5,000 extra employees this year to clean up its risk and compliance problems, according to people close to the bank. As part of a companywide effort, the bank is spending an additional $1.5 billion on managing risk and complying with regulations, including a 30% increase in risk-control staffing, these people said. In addition, it expects to add $2.5 billion to its litigation reserves in the second half of the year, these people said.
Hedge Funds Are Among the Winners of the Lehman Spoils (WSJ)
Paulson, which made a fortune on a well-timed housing-market bet in the early stages of the financial crisis, is up more than $1 billion on its investments in Lehman claims, while Elliott is ahead by more than $700 million, according to the people familiar with the matter.
Michael Lewis On The Next Crisis (BusinessWeek)
BusinessWeek: Has Silicon Valley replaced Wall Street as the place for bright young people to make their millions? Michael Lewis: My sense is that even though the financial crisis has lessened the appeal of the big Wall Street firm, it’s still appealing to kids in school, for the simple reason that unlike Silicon Valley, where you do have to know something to break in, the barriers to entry on Wall Street are quite low once you have the [Ivy League] credentials. If you’re a certain kind of kid who doesn’t actually know anything about anything, Wall Street is still a great place to go.
Subprime lending execs back in business 5 years after crash (CFIR)
Five years after the financial crisis crested with the bankruptcy of Lehman Bros. Holdings Inc., top executives from the biggest subprime lenders are back in the game. Many are developing new loans that target borrowers with low credit scores and small down payments, pushing the limits of tighter lending standards that have prevailed since the crisis. Some experts fear they won’t know where to stop. The Center for Public Integrity in 2009 identified the top 25 lenders by subprime loan production from 2005 to 2007. Today, senior executives from all 25 of those companies ‒ or companies they swallowed up before the crash ‒ are back in the mortgage business. Most of these newer “nonbank” lenders are making or collecting on loans that might be too risky to qualify for backing by the U.S. government. As the industry regains its footing, these specialty lenders represent a small but growing portion of the market.
David Hasselhoff Returns To Berlin (dm)
…he may be somewhat of a joke in the English speaking world, but his reputation in Germany is far more serious…in 1989 the former Baywatch star played a bizarre part in one of the most defining moments of the 20th century, the fall of the Berlin Wall. During the summer of that pivotal year, his hit Looking For Freedom topped the German charts and is said to have helped inspire the resistance and spirit that eventually lead to the wall being toppled. On New Year’s Eve 1989 he performed the song a top of the rubble of the wall to a newly unified Germany. And this week the 61-year-old paid a visit to the sight of that iconic performance. The Britain’s Got Talent judge tweeted a picture of himself standing by his hotel window with The Brandenberg Gate in the background…After posting the imagine, the star later tweeted: ‘I love Berlin! My heart is here!’
Hank Paulson to Tom Keene: Ben Bernanke has been a hero (BloombergTV)
” I believe that Ben Bernanke has been a hero. To be where we are today, where you have growth of 2% since late 2009 while we have been undergoing this necessary and massive deleveraging of consumers, it’s important. There is bound to be volatility. The next Fed Chairman, again, which is a huge, very important decision for President Obama, the key qualities are, first of all, fierce, independence, great ability, and to be someone who you want to see a return to and Ben Bernanke. And then someone who is a good communicator.”
Japan finance minister: will mull economy stimulus without resorting to government debt (Reuters)
Japanese Finance Minister Taro Aso said on Friday that the government will consider offering a stimulus package for the economy without issuing new bonds to finance it. Aso made the comment in a news conference after a cabinet meeting.
Hello Kitty Billionaire Found as Plush Toy Sales Surge (Bloomberg)
Loyal fans like Stanich have helped make Shintaro Tsuji, the 85-year-old founder of Tokyo-based Sanrio, a billionaire. Since introducing Hello Kitty in 1974, Tsuji has captured the hearts and wallets of girls, women and celebrities such as Lady Gaga by licensing the character, which appears as stuffed toys, as well as on airplanes, golf bags and even vibrators.
Republicans Holding Next Fed Chairman’s Fate Stay Quiet (Bloomberg)
U.S. Senate Republicans, whose votes President Barack Obama will need to approve his pick for Federal Reserve chairman, have adopted an unofficial strategy: stand on the sidelines and watch the Democrats feud. “No party enjoys anything more than watching the other party go at each other,” said Mark Calabria, a former top aide on the Senate Banking Committee. “There really is very little incentive right now for Republicans to get involved.”
Beauty queen: Miss America ‘fat as [bleep]‘ (NYP)
There’s drama behind the scenes of the Miss America beauty pageant after Miss New York, Nina Davuluri, was allegedly tape-recorded blasting Miss America Mallory Hagan as “fat as [bleep].” Sources tell The Post’s Michael Riedel that Davuluri allegedly made the comments in her hotel room after she was crowned Miss New York on July 16 on Staten Island…a fellow beauty queen was in the next room and recorded the comments, along with other allegedly offensive remarks made by others.