It could come to rationing. Read more »
A federal judge on Wednesday ordered PricewaterhouseCoopers to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the October 2011 bankruptcy of MF Global Holdings Ltd, a brokerage run by former New Jersey Governor Jon Corzine. U.S. District Judge Victor Marrero in Manhattan said PwC’s advice on “repurchase-to-maturity” transactions through which Corzine bought $6.3 billion of European sovereign debt affected how MF Global implemented its strategy and in turn contributed to its alleged losses. “This line of causation gives rise to a plausible claim that PwC proximately caused harm to MF Global,” Marrero wrote. MF Global’s bankruptcy plan administrator sued PwC on March 28, accusing it of professional malpractice for having provided “flatly erroneous” accounting advice to the company. Corzine is not a defendant. [Reuters]
Investor Relations Exec Charged With Insider Trading Opts For Business Extremely Casual At Court AppearanceBy Bess Levin
Allegations of securities fraud are apparently no reason to slip out of one’s tank top, according to Michael Dupre Lucarelli, seen at left leaving federal court yesterday. Read more »
Like all amazing movies, miniseries, other works of art, the clip of Richard Handler accepting and taking part in the ALS Ice Bucket Challenge is a slow burn to an amazing finish. Oh, to be sure, it starts out leaps and bounds ahead of any other videos of its kind: that is, in Handler’s penthouse bathroom, in front of his jacuzzi. It’s just that at every turn, it gets exponentially better, in ways you can’t imagine, ’til you’re at the end and saying to yourself, “This is one of the most amazing things I’ve ever seen.” Obviously, this must be watched in full, many times over the course of the day and possibly on loop and in place of whatever your firm is showing in TVs throughout the building. But, if we might, here are our favorite moments:
:01: We’re in Richard Handler’s bathroom. Why is that? Most of the head honchos taking part in this challenge (Marissa Mayer, senior execs at JP Morgan, etc) take the plunge on the street in front of their company or in someone’s backyard. No matter, here we are, in Richard Handler’s bathroom.
:05: Handler is narrating this video in his boxers and an old tee-shirt.
:12: He lays out the rules, we’re still in his bathroom.
:56: He nominates Carl Icahn to take the challenge, and Icahn’s wife to dump the ice (Icahn later takes to Twitter to say he’s too god damn busy.)
1:15: He starts ripping open plastic bags of ice and dumping them into the tub. It takes a while, because, again, he’s doing the challenge 1) in a jacuzzi and 2) in a jacuzzi that looks like it can seat 7. “It’s a lotta ice,” he tells the camera.
2:02: Even though he just dumped 8 or 9 bags of ice into the tub, he dumps a hotel-style wicker ice bucket into the bath, just for good measure. Read more »
Just kidding: There was nothing lucrative at all about the Argentine market for BNY, only trouble. But Cristina Kircher & co. have been kind enough to deal with that problem for their estranged trustee bank. Read more »
If Chris Rokos Isn’t Allowed To Lose $383 Million At Brevan Howard, He Should Damn Well Be Allowed To Lose It Somewhere Else!By Jon Shazar
Chris Rokos and his former hedge fund, Brevan Howard, agree on one thing: He was a pretty good trader. The former thinks that the latter’s five-year non-compete is a travesty of justice depriving the world of his irreplaceable skills. The latter is so afraid of those skills that it wants Rokos to sit out every one of those 1,826 non-competitive days, hoping that each one will blunt Rokos’ acumen as much as he fears.
And, indeed, the numbers back it up: Rokos was good. Four billion dollars-plus good. At least until 2012 when he lost almost $400 million and “retired” from a firm where losing $400 million is as good as a letter of resignation. Read more »
Legroom Gadget Maker Sees Sales Jump After Air-Rage Case (Bloomberg)
The Knee Defender, a gadget that blocks airplane seats from reclining, got a global boost after a scuffle between two passengers forced a United Airlines jet to make an unscheduled landing. The gizmo’s website crashed today after traffic surged, and sales rose “substantially” for the $21.95 plastic clips that have been on the market since 2003, said the inventor, Ira Goldman. While a product that interferes with another flier’s comfort may rub some people the wrong way, the issue is airlines’ legroom cutbacks, Goldman said. Carriers are shrinking space between rows — Spirit Airlines Inc.’s allotment is about 10 percent less than the industry standard — and using thinner cushions to squeeze more people into coach cabins. “They don’t have Plan B for the fact that a lot of people, when they sit down in their seat at the gate, their knees already are hitting the seat-back in front of them,” Goldman said in a telephone interview from Washington. The Knee Defender hit the headlines because of an in-flight squabble on United Flight 1462, which had to touch down on Aug. 24 in Chicago en route to Denver from Newark, New Jersey. One person installed a device that prevented the passenger in front of him from reclining, said Charlie Hobart, a spokesman for United Continental Holdings Inc. The Associated Press, citing an anonymous law enforcement source, gave a more-graphic account: Upset that her seat was locked, one traveler threw water at a man who employed a Knee Defender and refused to remove it at the request of a flight attendant.
Tim Hortons’ Canadian Fans Leery of American Hookup (Bloomberg)
“I don’t like the idea of an American company buying a Canadian company — it’s our brand,” Crosgrey, 60, said as she sipped a Tim Hortons coffee with three creams at a food court in downtown Toronto. “Timmy’s is always trying new things, adapting, they always have good service, and you always get your coffee fast no matter how long the lineup is. Burger King may screw it up.”
A new king of Kickstarter about to be crowned (CNBC)
With a little less than three days before the Coolest Cooler campaign ends, the project raised $10,211,436 as of late Tuesday afternoon. It’s well on its way to surpassing Pebble’s $10, 266,845. Created by Ryan Grepper, the high-tech cooler is part blender, part waterproof bluetooth summer DJ speaker system, part USB recharge station, and yes, also a cooler to keep your stuff cold, with an LED light, cutting board and bottle opener. Although it may seem hard to believe that a cooler—the bread-and-butter of low-tech companies like Coleman—could be the most-funded project ever in a Kickstarter universe of gamers and wearable device nerds, don’t think for a second there wasn’t a lot of hard work that went into this success story. In fact, evolving the cooler has been a passion of Grepper’s for a decade, he told CNBC. “Nine or 10 years ago, I was making a blender out of a weed wacker, putting an old car stereo into a cooler.” His early experiments didn’t work, but Grepper—who is a member of the CNBC Tech Crowd Council—did realize technology could transform a cooler into something even the cool kids might coo over. Grepper didn’t give up easily either. The Coolest Cooler failed the first time he rolled it out on Kickstarter in November 2013. “We weren’t successful,” he said. “We thought tailgating folks would want it, and Christmas would work. But I hadn’t done enough homework.” The failure—the first incarnation of the Coolest Cooler raised a little over $102,000 of a $125,000 goal, connected Grepper with enough people to give him the confidence to expand the project’s design and Kickstarter campaign. By the time the Coolest Cooler rolled out its second bid for crowdfunding fame, on July 8, Grepper had learned a few valuable lessons about finding success on Kickstarter. “I learned that Kickstarter and crowdfunding is a visual medium and people want to see what they are getting and we weren’t there the first time. I took the design to the stage you see it at now.” Timing is also key—when it comes to a cooler, summer rules over Santa and Sunday football tailgating. “The cooler market is hot in the summer,” Grepper said. “That was one of those hindsight realizations.”
Hutchin Hill, Citadel See Assets Jump as Pensions Call (Bloomberg)
Neil Chriss is hitting his stride. The math doctorate turned hedge-fund manager founded Hutchin Hill Capital LP more than six years ago and built it to cater to large investors. After posting annualized returns of 12 percent, about six times the average of his peers, he finds himself in the sweet spot for fundraising. Hutchin Hill’s multistrategy approach is the most popular hedge fund style this year, helping the New York-based firm double assets by attracting $1.2 billion.
Casino Loses 21K After Armored Car Drives Off With Money On Roof (AP)
An armored car company will reimburse an Atlantic City casino after nearly $21,000 fell from the roof of one of its trucks. Police tell The Press of Atlantic City an internal investigation by GardaWorld found no wrongdoing. The company picked up the cash at the soon-to-be-closed Revel casino on Aug. 6. Surveillance video showed the bag holding the cash on the roof as the truck left Revel. The bag was still on the roof when the truck pulled away from nearby Resorts Casino Hotel. A search failed to recover the money. Read more »
$$$ Buffett to Get 9% on $3 Billion Burger King Investment [Bloomberg]
$$$ Apple Said to Prepare New 12.9-Inch IPad for Early 2015 [Bloomberg]