Bitcoin Derivatives Sprout as Regulators Play Catch-Up (Bloomberg)
The closing of a major Bitcoin exchange in Japan not only focused attention on the digital currency’s risks, it also rattled a still-newer market that regulators are just starting to monitor: Bitcoin derivatives. George Samman, a former Wall Street investment adviser who in May helped start a platform for betting on Bitcoin’s price swings, saw trading on his BTC.sx website grow to more than $35 million by Jan. 21. After the shutdown at Mt. Gox, the Tokyo-based exchange for buying Bitcoins, BTC.sx suspended trading — because it had to find another exchange partner for its customers. “It is semi-Wild West, but that’s only because it’s new,” Samman said before the Mt. Gox shutdown.
Bitcoin owners find safe place for digital currency: on paper (Reuters)
Canadian mortgage broker and bitcoin enthusiast Chung Cheong writes out his secret number by hand and puts it in a safety deposit box. “The only way to ever access that address and those bitcoins is that piece of paper,” said Cheong. “I pray that there isn’t a big fire and the bank burns down. Because if that happens, I’m out of luck.”
Third Point’s Loeb Ramps Up Fight with Sotheby’s (WSJ)
Mr. Loeb nominated himself and two others to Sotheby’s board of directors early Thursday, setting up a potentially distracting fight for shareholder votes. The move came hours before the company said its profit jumped 37% in the fourth quarter amid strong sales of Asian and Impressionist art. The two sides are battling over Mr. Loeb’s arguments that Sotheby’s needs to improve its performance online and expand its presence in contemporary art. In a scathing letter to the board in October, Mr. Loeb criticized Sotheby’s as an “old master painting in desperate need of restoration.”
State Street Enters Fray as Corporate-Bond Broker (WSJ)
As Wall Street banks pull back from some corporate bond trades with clients, other large financial institutions are looking to step in. A State Street Corp. unit has begun handling corporate-bond trades between large investment firms as an intermediary, company officials said. That job is often done by a bank-owned broker-dealer. Rival Bank of New York Mellon Corp. is considering offering a similar service, said people familiar with the matter. The move marks the latest effort to profit from a gradual shift in how trades are handled in the $9.6 trillion corporate-bond market. As banks have retreated from acting as middlemen for bond trades, citing tough new regulations on their capital and risk-taking, a host of financial firms, including some small regional dealers, have looked to cash in on the void they leave behind.
Microsoft Chairman Says Company Must Focus Under Nadella (Bloomberg)
“The issue for us is, quite frankly, about focus,” Thompson said in an interview with Bloomberg Television. “One of the reasons we chose Satya Nadella is he has a strong technology background. He understands exactly what needs to happen to move Microsoft forward.”
The Battle to Cheer Up Africa’s Last Polar Bear (WSJ)
Wang was sprawled on his back in the sweltering heat, when veterinarian Katja Koeppel approached with apple slices and the daunting task of cheering up Africa’s last polar bear. “Wang!” she called. “Here, Wang!” Ms. Koeppel threw the sliced green apples 30 feet down into his rock-and-grass enclosure. Wang ambled toward the apples, ate them and went back to lying listlessly on the grass. Ms. Koeppel looked resigned. It was another dreary day for one skinny, dirt-covered and depressed polar bear. Wang has been on his own since Geebee, his companion at the Johannesburg Zoo for nearly three decades, died of heart failure in January. Wang’s keepers fear grief on top of liver trouble and a summer heat wave in the Southern Hemisphere could combine to kill the 29-year-old bear. So they’re ramping up his behavior enrichment with a full regimen of toys, treats and psychological intervention aimed at lifting his spirits. On Valentine’s Day, keepers wrote “We love you, Wang” on a cardboard box filled with treats and lowered it into his enclosure. As couples watched from above, Wang nosed the package into a dark room, delicately opened the lid and devoured the fruit and heart-shaped beef steak within. “Wang is pining for Geebee,” says Ms. Koeppel, the zoo’s manager of veterinary services, “and is understandably very stressed.” As was true of Geebee, Wang is nearing the limits of polar-bear life expectancy, so the zoo says it’s too late for him to adjust to a new partner. Read more »