Opening Bell: 09.11.09

Author:
Publish date:
Updated on

For Gorman, A Test Of His Leadership (WSJ)
Mackettes, your new Aussi overlord wants you to get up in his face and mix it up: "He is very straight with people, and you always know where you stand," said Gregory Fleming. During a speech at Merrill, Mr. Gorman told a group of investment bankers not to be shy about approaching CEOs. "They will always have time for you if you have a good idea," Mr. Fleming recalls him saying.
The Fall Of Mack (NYP)
Noted mean girl Dick Bové had this to say of the Knife stepping down: "[Mack] zigzagged so many times and he increased the instability in a company that was already reeling from instability." She also doesn't know why Phil Purcell wasn't seriously considered as a successor.
Prosecutors Are Poised To Impanel AIG Grand Jury (WSJ)
Joe Cassano is focus of probe as authorities try and find a distinction between 'criminal' and 'idiot.'
Wells Fargo exec used Malibu Colony home lost by Madoff-duped couple (LATimes)
So this happened, in an admittedly pretty sweet house: Neighbors said the family of [Cheronda Guyton, a Wells Fargo senior vice president who is responsible for foreclosed commercial properties] spent long weekends at the home and had guests over, including a large party the last weekend of August that featured a waterborne arrival. "A yacht pulled up offshore, with one of those inflatable dinghies to take people back and forth to the shore," said Roman's wife, Elaine Johnson. "About 20 people got taken over in the dinghy."

SEC Vows To Reorganize Unit To Head Off Fraud
(AP)
You already knew the regulator was deadly serious about getting things right this time, what with the founding of Fraud College, and now Robert Khuzami, the head of the S.E.C.'s enforcement division had this to say: "We intend to learn every lesson we can," he said. "There are no sacred cows."


Lehman Monday Morning Lesson Lost With Obama Regulator-in-Chief (Bloomberg)
Not sure if you know this, but Tim Geithner did not in fact take the advice imparted on his ass a day after becoming Treasury Secretary to break up Citi and Bank of America.
New Charges In Stanford Case (Reuters)
Thomas Raffanello, a security director for Stanford Financial apparently destroyed some important documents, not knowing that sort of thing was frowned upon.
France Sees Chance For Bonus Restriction (NYT)
French Finance Minister Christine Lagarde is "confident" people will accept things like clawbacks and other good stuff.

Related

Opening Bell: 07.23.12

Prosecutors, regulators close to making Libor arrests (Reuters) U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rigging scandal...Defense lawyers, some of whom represent suspects, said prosecutors have indicated they plan to begin making arrests and filing criminal charges in the next few weeks. Diamond Exit Fells Last Pillar In London’s Gekko Generation (Bloomberg) When Mervyn King and Adair Turner, the U.K.’s top two financial overseers, agreed to summon Barclays’s chairman to the Bank of England on July 2 and said they had lost confidence in Diamond, London’s best-known banker, they were making clear that the rules of the road had changed. “The signal to the City has got to be that if you behave badly you will be removed from your employment,” said Paul Myners, the government’s financial-services minister from 2008 to 2010 and former chairman of Gartmore Investment Management Ltd. “It will send shivers down the spine of anybody who is up to no good.” Spain Bans Short-Selling For Three Months (Reuters) Spain's stock market regulator banned short-selling on all Spanish securities on Monday for three months and said it may extend the ban beyond Oct. 23. The ban, which will not apply to market makers, will apply to any operation on stocks or indexes, including cash operations, derivatives traded on platforms as well as OTC derivatives, the regulator said in a statement. Greece Should Pay Wages in Drachmas Says German Lawmaker (Reuters) "Greece should start to pay half of its civil service wages, pensions and other expenditures in drachmas now," Dobrint said. "A soft return to the old currency is better for Greece than a drastic move. Having the drachma as a parallel currency would allow the chance for economic growth to develop." All Eyes On Facebook Revenue (WSJ) Analysts polled by Thomson Reuters expect Facebook to report second-quarter revenue of $1.1 billion on earnings of 12 cents a share. Facebook needs to hit those marks to prove that it can grow into the $100 billion valuation that it gave itself in its IPO. The valuation implies Facebook will grow at a significant pace, said Citigroup analyst Mark Mahaney. Facebook's "business has been showing significant revenue-growth deceleration," he said. "The market valuation implies at least a stabilization of revenue growth this year and next year." Using Small Business Loans To Generate Big Profits (WSJ) At a recent group-lending meeting in the Kawangware slum, about 10 miles from downtown, Jackson Munyovi sought $350 to build a new shanty for his wife and two children. The 31-year-old welder asked fellow church congregants and friends to co-sign a loan to finance building materials. A church deacon vouched for the borrower's assets, including a few metal-shop machines and his marital bed, and Mr. Munyovi promised to repay the loan in six months, plus 8% interest. And with that, Equity Bank Group—one of Africa's most ambitious banks—snagged another customer. The Kenyan bank has enjoyed a booming business lending to people with little collateral beyond the potential disgrace of letting friends down. Equity executives aren't shy about a business model that leverages societal mores and shame—often the strongest collateral to be found on a continent where formal credit records are scarce beyond the biggest cities. Avenue Capital Places Faith In Eurozone (NYT) Now, even as Europe’s economic problems worsen and the markets punish giants like Spain and Italy, Mr. Lasry is betting on a long-term comeback for the Continent. This month, his hedge fund, Avenue Capital, finished raising nearly $3 billion for a fund that will invest in the debt of troubled European companies. He has committed roughly $75 million of his own money to the new fund. That’s still a small part of his estimated $1.3 billion fortune, but Mr. Lasry is among a coterie of hedge fund and private equity managers who are gambling that the euro zone will stay intact and revive over the long run. Wealth chief could be Morgan Stanley’s No.2 (NYP) Morgan Stanley CEO James Gorman may have found his No.2: Greg Fleming. That’s after Fleming, the president of Morgan Stanley Smith Barney and Morgan’s wealth management unit, proved to be the only bright spot in the firm’s otherwise disappointing second-quarter results...Gorman, 53, hasn’t anointed a second-in-command since he took over as CEO from John Mack back in 2009. But Morgan Stanley’s co-presidents of institutional securities, Colm Kelleher and Paul Taubman, and possibly CFO Ruth Porat (if she chooses to accept), are among those who could be named. Though still relatively new, having joined the company in 2009, Fleming has shown he’s a worthy contender for the crown. Tony Robbins ‘Firewalk Experience’ goes wrong (AP) Fire officials in California say at least 21 people were treated for burns after attendees of an event for motivational speaker Tony Robbins tried to walk on hot coals...at least three people went to a hospital and most suffered second or third-degree burns. Robbins was hosting a 4-day gathering called “Unleash the Power Within” at the San Jose Convention Center. Witnesses say on Thursday, a crowd went to a park where 12 lanes of hot coals were on the grass. Robbins’ website promotes “The Firewalk Experience” in which people walk on super-heated coals. Witness Jonathan Correll says he heard “screams of agony.”

(Getty Images)

Opening Bell: 10.27.17

SEC has had enough of that whole enforcement thing; no one really wants to get rid of Libor; meet the winner of the HR violation sweepstakes; and more.

Opening Bell: 10.19.12

Schapiro SEC Reign Nears End With Rescue Mission Not Done (Bloomberg) Admirers and critics agree Schapiro rescued the agency from the threat of extinction when she was appointed by President Barack Obama four years ago. Still, she hasn’t fulfilled her mission -- to overcome the SEC’s image as a failed watchdog by punishing those who steered the financial system toward disaster and by proving regulators can head off future breakdowns. “It was harder than I thought it was going to be,” Schapiro, 57, said during an interview in her office that looks out on the Capitol dome. “You have this nice little box of things you want to do all tied up with a bow, and you walk in the door and it’s very hard to keep at least one eye on that agenda while you’re dealing with the flash crashes and the new legislation and the whole range of things that happened,” she said. Morgan Stanley CEO Hints Of Commodity Arm Sale (Reuters) Morgan Stanley has an obligation to explore "different structures" for its commodities trading business because new regulations are limiting the unit's activities, Chief Executive James Gorman said on Thursday. The CEO's comments were the first time Morgan Stanley has publicly hinted at a possible sale of its multibillion-dollar oil and metals trading arm, which has been reported in the media for months. Morgan Stanley has been in discussions with OPEC member Qatar for more than a year over the sale of at least a majority stake in its energy-focused trading business, according to bankers. Speaking on a conference call with analysts after the firm reported better-than-expected quarterly results on Thursday, Gorman said changes under the U.S.' Dodd-Frank financial reform law restrict the kind of trading the firm can do in commodities. Europe Agrees On Banking Supervisor (WSJ) European leaders early Friday agreed to have a new supervisor for euro-zone banks up and running next year, a step that will pave the way for the bloc's bailout fund to pump capital directly into banks throughout the single-currency area. John Paulson Doubles Down On Housing (WSJ) Hedge-fund manager John Paulson famously made nearly $4 billion in 2007 correctly betting that the housing bubble, fueled by the subprime mortgage market, would pop. Then the billionaire investor somewhat reversed course, arguing that the housing cycle had hit a low point. "If you don't own a home, buy one," he said in a 2010 speech at the University Club in New York. "If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home." So far, that bet has been a loser: The Wall Street tycoon lost about $3 billion personally in 2011, according to people close to the hedge-fund manager, speculating that the economy would recover faster than it did. But through the downturn Mr. Paulson—whose net worth is estimated to be around $11 billion, according to people familiar with his situation—continued his real estate spending spree. Over the last eight years, he has spent more than $145 million on six properties, including two estates in Southampton, N.Y., two properties near Aspen, Colo., and two residences in Manhattan, where he is based, according to public records. (He later sold one of the Southampton properties, for $10 million in 2009, a year after buying a larger estate nearby). In June, Mr. Paulson snapped up a 90-acre Aspen ranch and an adjoining property from Prince Bandar bin Sultan for a total of $49 million, according to public records, one of the highest prices ever paid for property in the area. Ben Stein: Taxes Are Too Low (Mediaite) Author and economist Ben Stein joined Fox & Friends on Thursday where he stunned the hosts after he called for raising the tax rates on people making more than $2 million per year. He said that he did not think that the United States simply had a spending problem, and cited the early post-war period as an example of a time when you could have high tax rates and high growth. “I hate to say this on Fox – I hope I’ll be allowed to leave here alive – but I don’t think there is any way we can cut spending enough to make a meaningful difference,” said Stein. “We’re going to have to raise taxes on very, very rich people. People with incomes of, say, $2, $3, $4 million a year and up. And then slowly, slowly, slowly move it down. $250,000 a year, that’s not a rich person.” Stein said that the government has a spending problem, but they also have a “too low taxes problem.” “With all due respect to Fox, who I love like brothers and sisters, taxes are too low,” said Stein. “That sounds like Bowles-Simpson,” said Gretchen Carlson. “It is Bowles-Simpson,” Stein replied. Should've Left That At Home, Teacher Is Told On Jury Duty (NYT) Damian Esteban was qualified to teach students at a specialized New York City high school, and had just been deemed reasonable enough to judge a man’s fate in a murder trial. But passing through the metal detectors at a Manhattan courthouse may have been too tough a test. Mr. Esteban, 33, was arrested on Wednesday as he returned from a break in a trial in State Supreme Court in Manhattan, David Bookstaver, a spokesman for the state Office of Court Administration, said. As Mr. Esteban, a teacher at the Williamsburg School of Architecture and Design in Brooklyn, passed through a metal detector at the courthouse, it beeped. A court officer, Laura Cannon, found the culprit to be a cigarette box in Mr. Esteban’s pocket. Upon opening the cigarette box, Ms. Cannon reported that she found a much bigger problem: 18 small bags of heroin. A Daunting To-Do List For Citigroup's New CEO (BusinessWeek) Citigroup’s largest problem may be internal. The company, analyst Richard Bove says, “is a political swamp. It’s a snake pit.” Cleansing the culture must be a priority, says Mike Mayo, an analyst at Crédit Agricole Securities. “So whether it’s the inappropriate pay for subpar performance; the lack of adequate disclosure, such as returns by business line; the failure to properly oversee the many different businesses; or the poor tone set at the top of the firm for corporate governance, they all add up to the need to improve the culture,” Mayo says. Cooling The Pits: ICE Yelling Ends (WSJ) Augustine Lauria knew his 37-year career as a floor trader was over when he got a memo from IntercontinentalExchange in late July announcing the closing of the exchange operator's last trading pits. Friday will be the last chance the 61-year-old trader will get to put on his navy-blue and yellow trading jacket and badge. It will be the final day of rough-and-tumble "open-outcry" commodities trading on the ICE-owned pits in lower Manhattan where options on cotton, coffee, cocoa, sugar and orange juice are bought and sold. "What can I do? I can count fast and yell loud," says Mr. Lauria, who boards the Staten Island Ferry before sunrise to get to work in time for the 8:10 a.m. bell. Amanda Larrivee Speaks Out about Incident at Samuel’s (ABC) Amanda Larrivee and her brother Robert Larrivee were arrested at Samuels Sports Bar Sunday for allegedly stealing TV’s from the bathroom. Now, the woman involved is speaking out about what happened that night and the “immature” remark made by her brother. The legal case against Amanda has been dropped, but a comment made by her brother is getting all the attention. He told police that the two were in the bathroom having sex. Amanda says that was not the case. “The comment was taken out of context and it’s not what it looks like,” said Larrivee...“I just want to come out and really let people know that it’s not what it looked like. It’s humiliating and the comment having sexual relations with my brother was an impulse, immature comment made by him that is not the truth,” said Larrivee. Amanda says Robert wasn’t trying to steal the TV’s, but was upset over seeing his ex-girlfriend. “He had an outburst at the time you know it turned into you know touching the TV on the wall, turned into an ugly scene,” said Larrivee. “He took the televisions down. He had no intention of stealing. He’s not walking out with two televisions,” said Attorney Jack St. Clair.