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From: RBC US Capital Markets COO
Sent: 2012, February, 03 2:43 PM
Subject: Superbowl SundayAs I’m sure you are aware, this Sunday is the Superbowl, one of the cornerstones of the sporting calendar. Despite being a Canadian bank, this is one event that many of us in the U.S. take pretty seriously.
Jamie Dimon of JPMorgan Chase launched a tirade at Mark Carney, Bank of Canada governor, in a closed-door meeting in front of more than two dozen bankers and finance officials, underscoring mounting tensions between bankers and officials over financial regulation. The JPMorgan chief executive’s remarks to Mr Carney, who is touted as a potential next head of the Financial Stability Forum, the international group of regulators, were focused on a capital surcharge for the largest banks, according to several people who attended the meeting of about 30 bank chiefs…Mr Dimon told Mr Carney that many of the rules discriminated against US banks and he was going to continue to use the phrase “anti-American” because it seemed to resonate with people who might be able to modify the reforms. The atmosphere was so bad after the meeting that Lloyd Blankfein, chief executive of Goldman Sachs and head of the Financial Services Forum bankers’ group which arranged the session, emailed the central banker to try to smooth relations, people familiar with the matter said. [FT via BI]
Uncertainty Over Greece Weighs on Financial Markets (NYT)
Financial markets remained jittery Thursday amid concerns about the stability of the government in Athens, uncertainty over the fate of a second Greek bailout and suggestions by Ireland that it would require investors to pay for part of the bailout of its indebted financial institutions.
Paulson Funds Struggle as Big Bets Backfire; Gold Works (WSJ)
Mr. Paulson’s $9 billion Advantage Plus fund lost more than 13% in the early part of this month, through June 10, leaving it down 19.65% for the year, according to two investors briefed on the performance. The Enhanced Partners fund, which had been a big winner this year, lost nearly 7% in the first 10 days of June, and now is up less than 4% in 2011, according to the investors.
Referrals on SAC Disclosed (WSJ)
The SEC has received 65 referrals of suspicious trading at hedge-fund firm SAC Capital Advisors LP over the last decade, or 46 more than previously disclosed, according to Sen. Charles Grassley…Sen. Grassley, the top Republican on the Senate Judiciary Committee, said “many” of the referrals involved trades older than the five-year legal time limit on bringing civil actions for insider trading. The older trades “would not appear to trigger any concerns regarding ongoing investigations,” he said in a letter to SEC Chairman Mary Schapiro on Wednesday. SAC said it was “not surprised” that it has been the subject of 65 referrals since 2000. “Referrals by Finra are the result of surveillance of market-wide trading activity and they are neither findings nor allegations of insider trading,” a spokesman for SAC said in a statement. “Given the size of our firm, our active investment style, and the period covered, we are not surprised by the number of referrals. SAC has always cooperated fully with regulators and will continue to do so,” the spokesman said.
Falcone’s Venture Runs Into Static (WSJ)
The most recent evidence of complications surfaced this week in disclosures tied to a report expected to detail potential interference problems with the network…The report is expected to warn federal regulators that recent tests showed LightSquared’s network can knock out global positioning system, or GPS, receivers, according to people familiar with the report.
Och-Ziff May Profit From Market Turbulence (Bloomberg)
Daniel Och’s hedge-fund group bought options on almost $12 billion of U.S. stocks during the first quarter, a move that may generate profits if markets turn more volatile this year.
Wall Street Mind Meld: Obama Struggles? (Morning Money)
M.M. spoke with several senior Wall Street executives about recent efforts by the Obama campaign to reignite the financial industry support that generated a huge money edge over John McCain in 2008…One executive said he did not believe next week’s $38K per head event at Daniel had sold out, though another said that may have changed in the last few days.
Europe Faces ‘Lehman Moment’ As Greece Unravels (Bloomberg)
“The probability of a eurozone Lehman moment is increasing,” said Neil Mackinnon, an economist at VTB Capital in London and a former U.K. Treasury official. “The markets have moved from simply pricing in a high probability of a Greek debt default to looking at a scenario of it becoming disorderly and of contagion spreading to other economies like Portugal, like Ireland, and maybe Spain, Italy and Belgium.” Continue reading »
Specifically its not so hot US-based RBC Bank unit? Because the Canadians want to get rid of this thing and fast. Continue reading »
Say what you will about Canada but their Ponzi scheming set is willing to tread where its more southern counterparts have not. Yeah, we have big number schemes but no one really thinks outside the box. Like pigeon-farming scams. Have we ever had one of those? No, we just feed the damn things rather than think about exploiting them for cash.
An Ontario man accused in an alleged $1-million pigeon breeding scheme has been charged with fraud and violations of bankruptcy laws. Arlan Galbraith, the 62-year-old owner of Pigeon King International, was arrested Wednesday after surrendering to police in Kitchener. Galbraith, from Cochrane, Ont., is charged with one count of fraud over $5,000 and four counts under the Bankruptcy and Insolvency Act. Police allege Galbraith defrauded people in Canada and the United States out of a total of $1 million between 2004 and 2008. It’s estimated about 1,000 people invested a total of $20 million in the purchase of pigeons while allegedly being promised guaranteed financial returns.
You want to hear more, right? Some sort of business plan at least. Continue reading »
The G-20 has come to Toronto! And with it, the threat of potentially angry protesters! Guess what though? The Canadians aren’t scared. Not at all, actually. They’re not gonna be pushed around and in fact, if you must know, they’ve got a plan, for how they’re gonna deal with these bullies. Several in fact. The first is to go home, lock the doors, get under the covers and not come out until it’s safe. The second is to tell anyone listening to piss off– they’re not going anywhere. This is their house (office) and they will defend it. And you wanna know something else? They’re not afraid anymore.
While most of Toronto’s companies in the financial district are sending employees home to avoid run-ins with G-20 demonstrators, workers at the StatPro North America, a provider of asset management software based there, will hunker down. The company’s office is on the border of the “red zone” — the two-block radius around the Metro Toronto Convention Center, where G-20 summit is being held. The city strongly recommended those in the area to leave. Andrew Peddar, chief operating officer of StatPro North America, said that the firm wanted to ensure that its clients, which include asset managers and hedge funds, could be assured of uninterrupted service during the week. The campout was the employees’ suggestion. That way, they’ll avoid potential disasters on the client front and also sidestep protestors. “We have sleeping bags, lot of food and lots of liquid,” said Peddar. The axes? “In case we need to break out.”
Heartiest congratulations, Canada. Your recession is finally over.
The economic growth that pulled you out of the pit of despair in the third quarter wasn’t all it could be. But, as those of us not named “China” have learned, exiting a recession isn’t all it’s cracked up to be.
Canada edges out of recession in third quarter [AFP via Google]
Potential buyers apparently include: “A bank in Canada, Great Britain or Japan.” Bove’s reason for upgrading the stock was not tied to better performance, or rumors of Einhorny joining the board, but, he said, management’s unwillingness to sell out for a ten-spot and a bag of Cheetos.
At this juncture, the higher-ups at Lehman are probably confused as to how they should feel about all this. On the one hand, thanks for moving our anvil of a stock with the buy. That was a $$$ call. On the other, “management is unwilling to sell out at a deeply distressed value…[setting] the stage for a hostile bid to take over the whole company”? S a D, old man. Will they fly off the handle and sue RXB for defamation a la Bank Atlantic? Our fingers are certainly crossed. That shit would undoubtedly be hilarious.
We’re no fans of protectionism — least of all, regulation coming out of the People’s Republic of Canada. However, with Stephen Harper at the helm, things have gotten better for our mildly dull, if not downright slow, neighbors to the north. Case in point: The National Post reports today that the Canadian Radio-television and Telecommunications Commission (CRTC) has just approved a new porn channel, on the condition that it show 50% Canadian content.
MBAs
RBC Wealth Management Chief Uses Threat Of Layoffs To Take A Swipe At MBAs
By Bess LevinJohn Taft, the Chairman of the Securities Industry and Financial Markets Association and the CEO of RBC U.S. Wealth Management, said he’s hearing firms are planning to cut back due to the skittish market and softening economy…He said staff reductions will likely affect all levels—even those with years of experience and expensive MBA degrees. “I think the paper value of an MBA might be overstated,” said Taft. “For it to be useful, it needs to form part of a wider package of skills and attributes, and more than a mere credential next to your name.” Taft said on the job experience in the capacity to perform in the workplace is more important than whether or not you have your MBA. [CNBC]
Tags: Canada, he's probably right but still, John Taft, MBA v CFA, paper value, RBC, unimaginably cruel comments