First U.S. Shutdown in 17 Years at Midnight Seen Probable
Republicans and Democrats in Congress say they don’t want to close the government, though neither side is budging from their positions to avoid it. House Republicans want to delay President Barack Obama’s Affordable Care Act for a year and make other changes to the health law. Democrats vow not to let that happen. Hanging in the balance are 800,000 federal workers who would be sent home tomorrow if Congress fails to pass a stopgap spending bill before funding expires tonight. Standard & Poor’s 500 Index futures slid and Asian stocks retreated on concern of a shutdown, while Treasuries advanced. Asked yesterday if he thought the government would shut down, Illinois Senator Richard Durbin, the chamber’s No. 2 Democrat, said, “I’m afraid I do.”
Bill Clinton Says Obama Should Call The Bluff Of Republicans
Former President Bill Clinton, whose Democratic administration was the last to experience a partial government shutdown in 1996, said he wouldn’t negotiate with Republicans on the eve of another shutdown.
“I think there are times when you have to call people’s bluff,” Clinton said in an interview with ABC’s “This Week with George Stephanopoulos,” in which he said Republican tactics to undermine the 2010 health-care law seem “almost spiteful.” He recalled some “extremely minor” negotiations during his administration’s partial closures and said that, in this case, there isn’t an opportunity for real talks. “The current price of stopping it is higher than the price of letting the Republicans do it and taking their medicine,” he said. “If they’re going to change the way the Constitution works and fundamentally alter the character of our country and damage the future of a lot of kids, you just have to say no.”
Will 11th hour bill keep the lights on temporarily? (CNBC)
There were some signs on Sunday—including remarks from House Majority Whip Kevin McCarthy, R-Calif.—that the House may try and find a last minute solution to keep the federal lights on at least for a few more days. The 11th hour solution could be a clean bill funding the government for a few more days to allow for a longer-term solution. Or it could come in the form of a list minute bill from the House that includes just one or two more modest demands of changes to Obamacare, including a repeal of the tax on medical devices that helps fund the health care law. Such a bill would amount to the House daring the Senate to choose a shutdown over changes to Obamacare that have broad support in Congress. All the late efforts by Republicans, especially in the leadership team, reflect fear that the GOP will shoulder all the blame for a shutdown and have its already low public standing plunge even further.
SAC Capital Head Might Be Pleading Guilty (NYP)
The big question currently swirling around the billionaire — who’s reportedly seeking to cut a deal with the feds over insider-trading criminal charges facing his firm — is whether he will make the ultimate sacrifice and plead guilty. One college pal of Cohen’s said she doesn’t believe Cohen, who has adamantly denied the allegations thus far, would give in so easily. She doesn’t even believe he’s in settlement talks. “That’s not his mentality,” the Wharton grad said of the founder of the once-$15 billion hedge-fund empire SAC Capital Advisors. Some cite Cohen’s notorious need for privacy as motivation to cut a deal rather than face the circus of two trials.
Baldwin Calls Investor A ‘Pock-Marked Toady’ (NYP)
Alec Baldwin says billionaire investor turned-film producer Arki Busson is his Hollywood archenemy. The sharp-tongued actor, who met with Busson in Cannes while pitching an Iraq-set romance film, fired off in TV Guide after the mogul told Baldwin he’s only considered a TV star, not a movie star. “He reminds me of a B-level villain in a Bond film,” Baldwin tells the magazine. “It’s a part Robert Davi would play if you couldn’t get Alan Rickman with a cat in his lap. He’s a pockmarked toady who hops from yacht to yacht and bed to bed. So when some bloated little toad like Busson labels me a certain way, I say to myself, ‘Consider the source.’ If movie stardom meant being trapped on a yacht with Busson, I’d rather be a weatherman for Ch. 4 in New York.”
Wall Street banks likely stung again by bad bond-trading quarter (Reuters)
Analysts have begun cutting third-quarter profit estimates for banks including Goldman Sachs Group Inc and Morgan Stanley, citing an industry-wide fixed-income trading revenue decline of 20 to 30 percent compared with a year ago. The quarter’s lull has made at least some Wall Street professionals nervous that a fresh round of job cuts may be coming, a trader said.
China Could Be In For Major Financial Reform (AP)
China’s State Council formally announced rules for the new free trade zone on Friday. They outline goals to upgrade financial services, promote trade and improve governance as well as measures to encourage foreign investment in 18 sectors in the country’s tightly regulated service industry.
IPOs In Europe Leapfrog U.S. Amid Cheap Valuations (Bloomberg)
IPOs in Europe surged at more than double the pace of those in the U.S., according to data compiled by Bloomberg, as Deutsche Annington Immobilien SE, Germany’s largest residential landlord, and U.K. property broker Foxtons Group Plc sold shares. Volume rose more than 10 percent globally compared with a year earlier, weighed down by a 40 percent drop in Asia.
Volcker Rule Costs Tallied as U.S. Regulators Press Deadline (Bloomberg)
Court challenges that overturned other Dodd-Frank regulations because of faulty cost-benefit analysis have increased pressure on the SEC economists, led by Craig M. Lewis, a veteran finance professor on leave from Vanderbilt University. Their work may determine whether the rule could withstand a similar lawsuit — an option banks and trade groups say is under consideration.
Woman owed money by her son-in-law winches his car onto her roof (YN)
Wang Qin said her son-in-law had borrowed nearly half a million Yuan to invest in his business, but hasn’t paid her back. The angry relative held onto his Audi as collateral, but when he started avoiding her, she took drastic action by hauling his vehicle onto her roof terrace. Wang said she made the dramatic move when her son-in-law ducked all her requests to hand the money back. The final straw came when he secretly tried to retrieve his car, forcing Wang to go to extreme lengths by getting a crane to life the car onto the first floor terrace. It’s unknown whether the man has got his car back yet.