Credit Suisse Said Near U.S. Tax Deal for Over $1 Billion (Bloomberg)
Credit Suisse Group AG (CSGN), facing a U.S. criminal probe of whether it helped Americans evade taxes, is close to resolving the case with an agreement that may include a penalty of more than $1 billion and a guilty plea, according to a person familiar with the matter. The person, who asked not to be named because the negotiations are confidential, didn’t specify whether the plea would be entered by the entire firm or a subsidiary. Credit Suisse, the largest of 14 Swiss banks facing criminal tax probes by the U.S., was told in 2011 that it was a target of prosecutors.
UBS First-Quarter Profit Up (WSJ)
Swiss bank UBS AG said Tuesday that first-quarter net profit was 1.1 billion Swiss francs ($1.25 billion) compared with 988 million francs reported a year earlier and against analyst forecasts of 838 million francs.
Einhorn Plays Athenahealth for Laughs and Decimates Its Shares (BusinessWeek)
As he dismantled the bull case for Athenahealth and then mounted a lengthy bear case, Einhorn repeatedly turned for help to none other than Athenahealth Chief Executive Jonathan Bush when he played embarrassing video clips of the high-strung CEO. Bush was shown spouting techo-verbiage at various interviewers and acknowledging that his company was not worth its valuation. The snappily cut footage, complete with freeze frames of Bush looking foolish with his mouth open, lent the presentation a Daily Show-esque vibe. It’s a new way for Einhorn and his $10 billion Greenlight Capital hedge fund to publicize short sales.
Three Bankers Bolster Blankfein as Goldman Trading Sinks (Bloomberg)
Led by David M. Solomon, Richard J. Gnodde and John S. Weinberg, the investment-banking division last year generated the second-highest revenue and profit since the firm went public in 1999, trailing only 2007, when the volume of global mergers was almost twice as high. The unit boosted revenue and market share in each of its three businesses: underwriting equity, advising on mergers and acquisitions and underwriting debt. Its share of fees from debt underwriting was the greatest since 1999, and it made about $2 billion from advisory work, 50 percent more than its closest competitor, JPMorgan Chase & Co. — a $660 million gap, according to data compiled by Bloomberg. The dominance was even more pronounced in the first quarter of 2014, when Goldman Sachs almost doubled the advisory revenue of every other bank and led in total investment-banking fees for the first time since the financial crisis.
Calstrs to Vote Against BofA Directors in Proxy Campaign (WSJ)
The California State Teachers’ Retirement System pension fund voted against four members of Bank of America Corp.’s board in response to the bank’s announcement last week that it had miscalculated capital levels. The move is largely symbolic, because many big shareholders have expressed support for Bank of America’s management and are expected to vote for the current board.
Grilled cheese set to parachute into New York City (USAT)
The Australian pop-up restaurant Jafflechutes has announced plans to bring its parachute-delivered grilled cheese sandwiches to New York City. The Melbourne group raised funds to bring its whimsical sandwich delivery system to North America — possibly this month, according to a Facebook post — but they say they aren’t in it for the money. “We do this purely for fun,” Adam Grant, one of Jafflechutes’ founders, told Fast Company in April. If you’d like to catch an airborne jaffle (that’s an Australian word for grilled cheese), Jafflechutes says they will announce the next drop one day in advance on Twitter and Facebook. Interested parties can then order via Paypal, $5 for cheese and tomato and $6 for cheese and ham. At a predetermined time the following day, stand on an “x” marked on the street at a secret location and look to the sky. Jafflechutes will drop the sandwich, complete with its own tiny parachute, into waiting hands below. Read more »