Opening Bell: 04.30.09

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State Street Under Investigation (WSJ)
The Mass Secretary of State is looking in to whether State Street misrepresented (flat out lied) to pension funds about the nature of its Bond Fund.
"A document State Street provided to clients to describe the Government/Corporate Bond Fund said it would invest in a "broad-based, investment-grade fixed-income universe." But, as of March 31, 2007, the fund had nearly half of its weighting in mortgage-backed securities and other asset-backed securities. Such securities may be investment grade but are riskier than Treasurys and specific corporate issues. In September 2005, the same fund's biggest weighting was in U.S. Treasurys, while mortgage- and asset-backed securities accounted for less than 6% of its top 10 holdings."
GM Bondholders Looking For More (Bloomberg)
"General Motors Corp.'s bondholders plan to present a counteroffer to President Barack Obama's auto task force in Washington today that would give them control of the carmaker, according to a person familiar with the committee representing creditors.
The bondholder committee plans to reject GM's April 27 debt exchange offer that asked them to swap all their claims for a 10 percent stake in the reorganized automaker, said the person, who declined to be identified because the negotiations are private."
Pang Confined To His Home (WSJ)
Danny Pang out on $1 million bail, currently sporting ankle monitoring bracelet, under house arrest.
Former Citi Exec To Launch Financial Services Firm (Reuters)
It shall be called Primus.
EU Hedge Funds Ask Regulators To Back Off (FT)
"Jonathan Russell, chairman of the European Venture Capital Association, called the proposed EU directive "disproportionate, inappropriate and anti-competitive".
The Commission's proposals, drawn up amid public and political anger over the risks taken by some financial institutions that led to the current crisis, would require alternative fund managers, rather than funds themselves, to register and seek government authorisation for the first time. Fund managers would also have to meet reporting, governance and risk management standards, including minimum capital requirements."

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