Opening Bell: 07.02.14

JPMorgan CEO Dimon Will Undergo Treatment for Throat Cancer (Bloomberg)
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co. (JPM), told employees and shareholders in a memo that he’s beginning treatment for throat cancer and will continue to run the company “as normal.” “The good news is that the prognosis from my doctors is excellent, the cancer was caught quickly and my condition is curable,” Dimon said, according to a statement today from the company. “The cancer is confined to the original site and the adjacent lymph nodes on the right side of my neck. Importantly, there is no evidence of cancer elsewhere in my body.” [...] Dimon will soon begin radiation and chemotherapy treatment at Memorial Sloan Kettering hospital in New York, he said in the statement. The treatment should take about eight weeks, he said. “While the treatment will curtail my travel during this period, I have been advised that I will be able to continue to be actively involved in our business, and we will continue to run the company as normal,” he wrote. “Our board has been fully briefed and is totally supportive.”

Ousted American Apparel CEO Charney reports 43 percent stake (Reuters)
Dov Charney, ousted as American Apparel Inc’s chairman and chief executive two weeks ago, said he has increased his stake in the apparel retailer to 43 percent, as he fights to regain control of the company he founded. Charney, fired for alleged misuse of corporate funds and his role in disseminating nude photos of an ex-employee, also called for a special meeting of stockholders on Sept. 25. The former CEO and founder, already the biggest shareholder in American Apparel with a previously reported 27.2 percent stake, said he increased his holding last week. The additional shares could enable Charney to gain control of the company if he won the support of shareholders holding 7 percent of the stock.

Goldman ‘Boys Club’ Accused of Mocking Women as ‘Bimbos’ and ‘Party Girls’ (Bloomberg)
Goldman Sachs was accused of widespread gender discrimination and a “boy’s club” atmosphere that included bouts of binge drinking and trips to strip clubs, as two former female employees seek to expand their lawsuit against the firm with new evidence. The women asked a federal judge in Manhattan today to let them sue on behalf of current and former female associates and vice presidents. Support for their claims includes statements of former Goldman Sachs employees, expert statistical analyses and evidence on earnings and promotions from the firm’s own records, they said in a court filing. “Women report a ‘boy’s club’ atmosphere, where binge drinking is common and women are either sexualized or ignored,” according to the filing. The two women, H. Cristina Chen-Oster and Shanna Orlich, sued in 2010 and are seeking to broaden the case to include more than a decade of claimed discrimination at Goldman Sachs. A decision by U.S. District Judge Analisa Torres to allow the women to sue as a class would increase the risk to Goldman Sachs.

Tinder Is Target of Sexual Harassment Lawsuit (NYT)
Whitney Wolfe, a former executive at the popular dating start-up Tinder, has filed a lawsuit against the company, along with its majority owner, IAC/InterActiveCorp, on sexual harassment and discrimination claims. The lawsuit, filed on Monday in state court in Los Angeles, says that Tinder’s chief executive and chief marketing officer subjected Ms. Wolfe to “a barrage of horrendously sexist, racist and otherwise inappropriate comments, emails and text messages.” Ms. Wolfe’s suit also said that complaints about the harassment to high-level executives at IAC were ignored and that she was forced to resign as a result. Ms. Wolfe said in the lawsuit that even though she was instrumental in the establishment of the dating app, her colleagues did not call her a founder because of her age and gender. When she would ask why only her name among the five founders was absent from some new coverage, the lawsuit said, the other founders would tell her “you’re a girl” and that a 24-year-old “girl founder” would devalue the company.

Bitcoin Auction Ends, Single Bidder Wins Entire Cache (Bloomberg)
The auction attracted 45 bidders, including New York brokerage SecondMarket Inc., and 63 bids were submitted during the 12 hours of the auction on June 27, according to the U.S. Marshals Service. The agency, which notified the bidder and transferred the money, isn’t disclosing the winner’s identity. The auction of 29,656 bitcoins, part of more than 144,000 the FBI transferred to U.S. Marshals after shutting down the Silk Road marketplace and arresting its operator last year, represented a rare opportunity to secure a large cache of the virtual currency. While the actual price of the winning bid isn’t known, the cache sold yesterday was worth about $19 million at current exchange prices.

Shia LaBeouf voluntarily receiving treatment for alcohol addiction (NYDN)
According to X17Online, the 27-year-old star is getting help at a “celebrity-frequented” treatment facility in Hollywood. LaBeouf was seen heading to the private center Monday afternoon, and greeted at the gate by a nurse and security guard, X17 reports. “Shia was nervous; he didn’t look good all morning,” a photographer told the website. “He was looking down and wasn’t even talking to his driver. It looked like he didn’t want to do it, but he knew he had to.” Earlier in the day the “Fury” actor was seen toting a book, reportedly the Alcoholics Anonymous “Big Book,” outside of his Hollywood Hills home. LaBeouf arrived back in Los Angeles over the weekend, after a tumultuous few days in New York City, which included him getting arrested Thursday for disrupting a “Cabaret” performance on Broadway with an apparently drunken display. He was also seen in Times Square earlier that day engaging with a homeless man.

Two counts tossed in Rajaratnam brother’s insider trading trial (Reuters)
A U.S. judge on Tuesday dismissed two securities fraud counts against Rengan Rajaratnam, the younger brother of Galleon Group founder Raj Rajaratnam, in a surprise development in the federal criminal insider trading case. Rengan Rajaratnam, a former Galleon fund manager, still faces a conspiracy count, after U.S. District Judge Naomi Reice Buchwald at a hearing in Manhattan dismissed other counts related to improper trading in technology company Clearwire Corp. Buchwald said the question was whether Rengan Rajaratnam traded on inside information about Clearwire knowing the tipper breached his duties to keep it secret and in exchange for a personal benefit. “I find a reasonable jury could not so find,” she said. The decision, which is not appealable, spared Rajaratnam from the most serious charges he faced. Each carried a maximum term of 20 years in prison, compared with five years for the conspiracy count.

Facebook’s News Feed Experiment Probed by U.K. Regulators (Bloomberg)
Facebook is being investigated by the Information Commissioner’s Office in the U.K. after a study showed a psychological experiment influenced what users saw in their news feeds, raising fresh privacy concerns. A company researcher apologized on June 29 for a test in January 2012 that altered the number of positive and negative comments that almost 700,000 users saw on their online feeds of articles and photos. Disclosure of the experiment prompted some members to express outrage on Twitter about the research as a breach of privacy. The U.K. data regulator’s probe of the social network was reported earlier by the Financial Times.

HSBC Settles Fraud Charges Over Foreclosure Fees Paid by the U.S. Government (Dealbook)
HSBC, prosecutors said, lacked the internal controls to review fees it incurred in the process of foreclosing — expenses that the bank ultimately passed on to the government for reimbursement. The bank, which admitted committing the misconduct as part of the civil settlement, cost the government millions of dollars in losses.

Michigan Man, 43, Busted For Drunkenly Crashing Snowmobile (TSG)
A Michigan man was arrested last night after drunkenly crashing a snowmobile into a tree in Lansing, Michigan, where most other residents were enjoying a balmy Sunday evening in the state capital. According to police, the 43-year-old man–whose name was not released pending charges–lost control of the snowmobile while racing through an alley behind homes in a residential community. The driver was injured in the crash and subsequently admitted to a local hospital. Cops, who obtained a blood sample from the driver, reported that they will ask prosecutors to charge the man with driving with a suspended license and driving while impaired, 3rd offense. Presumably, the man was behind the wheel of a car during his prior two drunk driving collars. At the time of the man’s 7 PM arrest, the temperature in Lansing was 84 degrees, according to the Weather Channel.

32 comments (hidden to protect delicate sensibilities)
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Comments (32)

  1. Posted by Word Out JD | July 2, 2014 at 8:12 AM

    It's kind of sick how many negative comments on Jamie Dimon's health are occurring in news websites. The government did a good job of blaming bankers as the root of all evil when they were entirely complicit.

  2. Posted by InfiniteGuest | July 2, 2014 at 8:28 AM

    What merit is there in suing an investment bank for being a "boys' club"?
    Where did these plaintiffs think they were working?
    If you go to a casino and lose money, can you sue them for letting people gamble?

  3. Posted by Guest | July 2, 2014 at 8:38 AM

    "Engaging with a homeless man" Please clarify

  4. Posted by Guest | July 2, 2014 at 9:17 AM

    This is a man who turned Colm Kelleher and John Mack into a group of giggling teenage girls with merely his tight blue jeans, black loafers and steely composure. Pretty sure the tumor could be in the shape of Preet Bharara's face and it wouldn't even worry him.

  5. Posted by Guest | July 2, 2014 at 9:32 AM

    No, but if you sit a the poker table and you see that the dudes next to you are losing less money than you, you can certainly sue them for discrimination.

  6. Posted by Spider Pig | July 2, 2014 at 9:32 AM

    Oink oink oink

  7. Posted by Joey | July 2, 2014 at 10:13 AM

    I'm surprised this wasn't part of the Opening Bell. The Bank of Paris is funding terrorists. Considering how many finance people died in 9/11, may be you should pay attention to it.
    http://dealbook.nytimes.com/2014/06/30/a-grieving

  8. Posted by Guest | July 2, 2014 at 10:26 AM

    Is there something inherently masculine about banking, apart from that historically being the case? Firefighter, maybe, soldier, definitely, paper pushing desk jockey? Nope.

  9. Posted by guest | July 2, 2014 at 10:27 AM

    I'd like to believe Holder and Obama are NOT smirking at Jamie Dimon's cancer right now. But then, I'd like to believe a lot of things.

  10. Posted by Guest | July 2, 2014 at 10:27 AM

    Or maybe you just suck at poker?

  11. Posted by Hung over guy | July 2, 2014 at 10:45 AM

    Cancer is nothing to joke about you assholes. I hope someone in your family gets it then we'll se how funny it is. Objectifying women on wall st is a time honored tradition, much like bid/ask, exercising an option etc. I have zero concerns for these dumb sluts

  12. Posted by Guest | July 2, 2014 at 11:01 AM

    Who's joking about cancer?

  13. Posted by Meatstick | July 2, 2014 at 11:02 AM

    Or maybe you're just missing a chromosome?

  14. Posted by #Occupy | July 2, 2014 at 11:16 AM

    But large investment banks gave the money to the sub-prime borrowers against their will!!!!

  15. Posted by Joey | July 2, 2014 at 11:19 AM

    Bankers finance the world's evils. You have to be at least a little evil to want to get rich stealing people's privacy (FB); underpaying employees/paying bribes (Walmart); sleazy subprime loans (Countrywide); financing Nazis/Apartheid (Barclays); money laundering (Citibank); creating toxic CDOs and betting agst them (Goldman Sachs); the slave trade, profiting off war (Blackwater, etc.); working your employees until they hang themselves (Apple/Foxconn); sweatshop factory owners,etc.
    Men are more evil.

  16. Posted by Guest | July 2, 2014 at 11:25 AM

    This is the cost of getting linked on Bloomberg View

  17. Posted by Rebecca M. | July 2, 2014 at 11:39 AM
  18. Posted by Guest | July 2, 2014 at 11:41 AM

    Err, can you point to the comment here making fun of it? Oh right, there are none.

  19. Posted by Guest | July 2, 2014 at 11:43 AM

    There is not a single comment making fun of cancer here. Unrelated, I'm sure you're super popular with the ladies.

  20. Posted by derp | July 2, 2014 at 11:45 AM

    Flawless logic here.

  21. Posted by Also hung over guy | July 2, 2014 at 11:53 AM

    I know hung over guy and he is an arch bushmen of the highest order. he does more banging than a screen door in a hurricane. Other than that no concerns whatsoever. eat a dick

  22. Posted by Quant me maybe... | July 2, 2014 at 12:19 PM

    You forgot Barclay's.

    >They actually did something wrong.

  23. Posted by Guest | July 2, 2014 at 1:28 PM

    There many places on the internet where you'll feel at home, but this isn't one of them.

  24. Posted by Guest | July 2, 2014 at 1:35 PM

    Well, if I am missing a chromosome wouldn't that be discrimination?

    – Equal chromosomes for equals

  25. Posted by Guest | July 2, 2014 at 1:55 PM

    Individual households are not charged with looking beyond their own plight. The idiots with the humongous portfolios of mortgage securities, that's another story. So yes, it is primarily their fault, with the government being a close second. Some of the fervent Occupiers are indeed tools, but if you choose to completely ignore the facts you're no better.

  26. Posted by guest | July 2, 2014 at 1:57 PM

    seconded.

  27. Posted by H. deBalzac's Grave | July 2, 2014 at 3:03 PM

    Behind every great fortune is a great crime.

  28. Posted by #Occupy | July 2, 2014 at 3:10 PM

    I can see your point, but it is important to understand the assumptions that were present during that time. Simply put, the products were regarded as nearly risk-free (at least the higher tranches) BUT ultimately what led the tranches of the securities to be wiped out? Crummy lending standards. The point above isn't trying to deflect the point that banks played a role in the housing crisis, but more of differentiating between the role of the thrifts and investment banks. Did investment banks engage in some "eh" behavior? Yes, BUT their primary role was acting as middlemen by securitizing the products. In sum: everyone played a role in the housing crisis, but the investment banks position in causing the crisis is overblown.

  29. Posted by Marcus Sutton | July 2, 2014 at 3:44 PM

    Dammit. How did John Arbaugh make his way over here.

  30. Posted by IBANK4LIFE | July 2, 2014 at 3:49 PM

    Hung over guy = Shia

  31. Posted by Guest | July 2, 2014 at 5:36 PM

    Homogenous behavior between participants with different levels of risk tolerance and different preference for items in the the corporate pantry led to alternative behaviours that were not condoned but the committees that would normally provide distinct oversight but were to a large extent encouraged by changes in the regulatory environment as evidenced by changing levels of sirloin traces in ground beef found at supermarkets. In addition, an overflow of liquidity and semi-arbitrary attachment/detachment points in the preferred equity of convertible issues in the high grade leveraged repo market were approved along with the original TARP package. ZIRP, you see, is the result of this expansionary policy.

  32. Posted by Guest | July 2, 2014 at 5:49 PM

    thirded.