Opening Bell: 04.14.10

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JPMorgan Reports $3.3 Billion Profit (MarketWatch)
The bank said today its first-quarter net income was $3.3 billion, or 74 cents a share, compared to net income of $2.1 billion, or 40 cents a share, in the year-ago period. Total net revenue was $27.7 billion. Analysts surveyed by FactSet Research had expected, on average, profit of 65 cents a share on revenue of $25.9 billion.

Property Loss Pounds Morgan Stanley (WSJ)
Morgan Stanley has told investors in its $8.8 billion real-estate fund that it may lose nearly two-thirds of its money from bum property investments, according to fund documents reviewed by The Wall Street Journal. That would likely make it the biggest dollar loss—$5.4 billion—in the history of private-equity real-estate investing.

JPMorgan Executive Mobbed By Angry Borrowers (Reuters)
The JPM executive was at a congressional hearing in Washington when a lawmaker asked him who mortgage borrowers could turn to if they felt his bank's employees were not helping them hold onto their homes. "Come to me," said David Lowman, chief executive for JPMorgan Chase's home mortgage business in response to the question from Massachusetts Democrat Barney Frank. Minutes later, around 50 borrowers burst from the audience and presented Lowman with a a 6-page document alleging his bank reneged on a pledge to help struggling homeowners. The activist who organized the protest said Lowman did not want to talk and left the hearing. "He ran. He ran like a dog with its tail between his legs," said Bruce Marks of the Neighborhood Assistance Corporation of America (NACA), which helps homeowners avoid foreclosure. "He was scared to death because he doesn't really want to talk to homeowners."

UBS Defends Pay Policies (WSJ)
Requiring a bank to "refrain from paying any bonuses at all and not permitting it to pay compensation in line with market rates means taking away its chances for recovery and survival," Chairman Kaspar Villiger said. "That is why I strongly reject the criticism of our remuneration policy. It fails to acknowledge the realities," he added. In a prepared speech, Chief Executive Oswald Grübel said UBS "is back in business again," but it still needs to restore investor trust and stem the outflow of funds. "The fact that we will continually be confronted with mistakes from the past is a reality we have to live with," he said.

Dear Professor Krugman... (Dealbook)
Sorkin's response to this: "I appreciate that you may have articulated the details of your views differently, or more specifically, in other columns and forums. And I appreciate that you could quibble with my words. But I do think it is clear that both you and Mr. Roubini had pressed for a Swedish-style nationalization. (By the way, at the time, I had thought the Swedish model was a pretty interesting approach, too.) Again, I love reading your column, and the bailouts are certainly an issue that is the subject of much debate. Best, Andrew."

George Soros Warns About Greek 'Debt Spiral' (CNBC)
The investor believes that the rescue package is only "a little step" that may not stop Athens falling into a "debt spiral". In comments picked up by AFP in London Soros said that while the 5 percent rate at which the EU is willing to make loans to Greece is "better than the market is willing to offer…a rescue package should offer concessionary rates."

Bank of America Names Outsider As CFO (WSJ)
The 57-year-old Charles Noski most recently was finance chief at defense contractor Northrop Grumman Corp., which he left in 2005. As chief financial officer at AT&T Corp. from 1999 to 2002, he had a reputation on Wall Street as a straight-shooter amid the telecommunications giant's scramble to cut its debt load.

Spitzer spent 100G on girls (NYP)
More on this later, natch.

WaMu CEO: "I don't trust Goldy" (Crain's)
"I don't trust Goldy on this. They are smart, but this is swimming with the sharks. They were shorting mortgages big time while they were giving CfC advice. [CfC appears to be Countrywide Financial Corp.] I trust Lehman more for something this sensitive. But we would need to assess if they have the smarts we need."

Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court (Bloomberg)
The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help. “Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”

Related

Opening Bell: 05.29.12

Greece Pours $22.6 Billion Into Four Biggest Banks (Reuters) The long-awaited injection—via bonds from the European Financial Stability Facility rescue fund—will boost the nearly depleted capital base of National Bank, Alpha, Eurobank and Piraeus Bank. "The funds have been disbursed," an official at the Hellenic Financial Stability Facility, who declined to be named, told Reuters. The HFSF was set up to funnel funds from Greece's bailout programme to recapitalise its tottering banks. The HFSF allocated 6.9 billion euros to National Bank, 1.9 billion to Alpha, 4.2 billion to Eurobank and 5 billion to Piraeus. All four are scheduled to report first-quarter earnings this week. The news came as two government officials told Reuters that near-bankrupt Greece could access 3 billion euros, left from its first bailout programme, to cover basic state payments if efforts to revive falling tax revenue fail. U.S. Ready for Europe Fallout, Says Fed Official (WSJ) "There's absolutely no reason for people in the United States to get all in a dither," Federal Reserve Bank of Philadelphia President Charles Plosser said in an interview with The Wall Street Journal. Mr. Plosser said that in the short run, uncertainty in Europe might even work in the U.S. economy's favor, via lower U.S. interest rates and energy prices. Greece to Leave Euro Zone on June 18, Says Guy (CNBC) Greece will leave the euro zone on June 18 if the populist government wins the country’s elections on the 17 as the rest of the euro zone rounds on "cheaters," Nick Dewhirst, director at wealth management firm Integral Asset Management, told CNBC Monday. “The euro zone is a club but you get cheaters who get away with it until everyone finds out and at that point you need to remove them otherwise everyone will cheat. It’s better for Greece to leave,” Dewhirst said. He added that Greek society was built on cheating and scheming, saying “everyone does it” but that voters elsewhere in the euro zone were now calling Greece to account. “The basic question is that a German has to increase working from 65 to 67 and that is to pay for Greeks retiring at 50. The 17th of June is the perfect opportunity to say either 'we’ll behave' or 'we’ll carry on cheating,'" he said. Facebook Debacle Turns High Hopes Into Potentially Mood-Souring Skepticism (WSJ) It is impossible to measure the impact of Facebook's flubbed deal on overall investor confidence. But there is at least one sign of possible fallout: More than $3 billion was yanked from U.S. stock mutual funds by small investors in the week ended Wednesday, according to EPFR Global Inc. in Cambridge, Mass. That was the worst week for withdrawals since March. In the previous week, investors added $311 million to U.S. stock mutual funds. David Guthrie, a 30-year-old actor in Toronto, bought 15 shares of Facebook on its opening day. Before then, he had bought just one stock, yet saw the market as a place to make his savings rise in the long run. Now he feels burned. "If Facebook had made a lot of money, I'd try it again," Mr. Guthrie says. After the stock's disappointing slide, "I would never put big money into the stock market." Zoos' Bitter Choice: To Save Some Species, Letting Others Die (NYT) ...Ozzie, a lion-tailed macaque, will never father children. Lion-tails once flourished in the tops of rain forests in India, using their naturally dark coloring to disappear into the height of the jungle. Though there are only about 4,000 remaining in the wild, not one among Ozzie’s group here in St. Louis will be bred. American zoos are on the verge of giving up on trying to save them. As the number of species at risk of extinction soars, zoos are increasingly being called upon to rescue and sustain animals, and not just for marquee breeds like pandas and rhinos but also for all manner of mammals, frogs, birds and insects whose populations are suddenly crashing. To conserve animals effectively, however, zoo officials have concluded that they must winnow species in their care and devote more resources to a chosen few. The result is that zookeepers, usually animal lovers to the core, are increasingly being pressed into making cold calculations about which animals are the most crucial to save. Some days, the burden feels less like Noah building an ark and more like Schindler making a list. Icahn Takes Chesapeake Energy Stake (WSJ) Carl Icahn skewered Chesapeake Energy Corp.'s CHK board for corporate governance controversies and "irresponsible actions" while disclosing he acquired a sizeable new stake in the company. Euro Likely Worthless as Collector's Item (Bloomberg) FYI. JPMorgan Beefs Up China Unit With $400 Million Injection (Reuters) "The additional capital will better position the bank in the evolving regulatory environment and cement our commitment to clients in China," Zili Shao, Chairman and chief executive of J.P. Morgan China, said in a statement on Monday. "The capital will be used to expand the bank's branch network, develop products, increase corporate lending, and recruit employees," Shao added. Europe Turns To US For Loans (WSJ) In the latest symptom of Europe's financial turmoil, the region's riskier companies are bypassing banks and investors at home and turning to the U.S. for loans. European companies borrowed some €14.4 billion (about $18 billion at current rates) in the U.S. leveraged-loan market this year through Friday, more than double the €6.7 billion for all of 2011, according to data from S&P Capital IQ LCD. That is the highest amount since at least 2007, the height of the last boom in leveraged lending, when full-year loan volume was €12.2 billion, according to S&P. How Boaz Weinstein And Hedge Funds Outsmarted JPMorgan (NYT) By May, when fears over Europe’s debt crisis again came to the fore, the trade reversed. The London Whale was losing. And Mr. Weinstein began to make back all of his losses — and then some — in a matter of weeks. Other hedge funds were also big winners. Blue Mountain Capital and BlueCrest Capital, both created by former JPMorgan traders, were among those winners. Lucidus Capital Partners, CQS and a fund called III came out ahead, too. Inside the hedge fund world, some joked that Mr. Weinstein had been able to spot the London Whale because he himself had been a whale once, too. Drunk Brooklyn woman crashes car through Long Island home (NYDN) A drunken Brooklyn woman crashed her Mercedes into a Long Island home Monday, smashing through the house and landing in the backyard, cops said. Sophia Anderson, 21, failed to turn left or right when the road she was driving on in Huntington deadended at a T-intersection with another street, officials said. She left a train of wreckage as she smashed through the modest house on Southdown Rd., missing the 90-year-old homeowner and her caretaker. Anderson, treated and released at Huntington Hospital, was arrested and charged with driving while intoxicated, police said.

By Apavlo at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Opening Bell: 10.7.16

Pound flash crash; Twitter's no good very bad day; Qatari hearts Deutsche Bank; Vanilla Ice vows to ride out Hurricane Matthew; and more.

Opening Bell: 03.25.13

Cyprus Gets New Bailout Deal (WSJ) Cyprus secured a bailout from its international creditors early Monday, ending a week of financial panic that threatened to see the small island nation become the first government to leave the euro zone. But lasting damage has likely been inflicted on the Cypriot economy. Officials said they believe the country will now need strict controls on money transfers in and out of the economy in the coming weeks or possibly months, cutting off its citizens and companies from much of the rest of the euro zone's financial system. And the bailout program aims to slash the size of Cypriot banks, perhaps forever ending the country's status as an offshore tax haven and financial-services center. Cyprus could see its economy contract by 10% or more in the years ahead, economists said. Dell Confirms Rival Offers (WSJ) Dell has received two alternative takeover proposals—one from activist investor Carl Icahn and the other from a private equity fund managed by Blackstone Group —that a special board committee said may result in superior proposals to the one offered last month by founder Michael Dell. Falcone Follows Michael Jackson Path Taking Fortress Loan (Bloomberg) Hedge-fund manager Philip Falcone, beset by declining assets, federal securities regulators and the bankruptcy of his largest investment, is borrowing money against personal real estate he bought during better days. Falcone and his wife, Lisa, pledged their $39 million Caribbean villa to Fortress Credit Corp., the lender that provided Michael Jackson with a mortgage on his Neverland Ranch when the late pop idol was close to insolvency, according to a February regulatory filing. Within the past year, the couple also agreed to post both of their Manhattan townhouses as collateral for about $25 million of personal loans, real estate records show. SEC Approves Facebook IPO Compensation Plan (WSJ) The Securities and Exchange Commission approved Nasdaq OMX Group Inc.'s plan to pay customers as much as $62 million for losses stemming from last year's bungled Facebook stock-market debut, according to an order made public on Monday by the regulator. Brooklyn man furious his roommate wanted to move out allegedly murdered her fish (NYP) A Brooklyn man furious that his longtime roommate wanted to move out turned his rage on her pet fish — flushing one down the toilet and letting the other suffocate, law-enforcement sources told The Post. José Santiago murdered his roommate’s scaly pals — Bonnie and Clyde — when he saw her packing her bags in their Flatbush apartment on Wednesday, she said. “They were my babies! I can’t have children, so my pets are like my kids,” Brenda Alvarez said yesterday. “They were beautiful fish and cost about $25 each. “I did everything for him, and the only thing I ever asked him to do was the laundry,” she said. “So, why did he do this to me?” Alvarez, 45, said she wanted to move out of the Nostrand Avenue apartment because of growing tension between the longtime friends, who grew up a block apart in Bay Ridge. “I was gonna leave . . . so, I started packing, but he kept antagonizing me,” Alvarez recalled. “Then he went crazy!” U.S. Hedge Funds Swoop on Traders at Struggling Europe Startups (Bloomberg) U.S. hedge funds Pine River Capital Management LP, Millennium Management LLC and SAC Capital Advisors LLC are taking advantage of the struggle of European startup funds to grab their pick of the region’s traders. The three firms, which manage a combined $46 billion, have over the past year all hired employees from hedge funds started by former European bankers, according to regulatory records and people with knowledge of the matter. They joined from firms including Edoma Partners LLP, Occitan Capital Partners LLP and Portman Square Capital LLP, London hedge funds that have either shut down, posted losses or failed to meet their fundraising goals, said the people, who declined to be identified because the companies are private. Buyout Firm to Acquire Blockbuster's U.K. Unit (WSJ) Private-equity firm Gordon Brothers Europe agreed to buy the British arm of DVD-rental firm Blockbuster Inc., which had entered a form of bankruptcy in January. The deal will help save 264 Blockbuster stores and more than 2,000 jobs in the U.K., Gordon Brothers Europe said in a statement Saturday. Terms of the deal weren't disclosed. Man charged with drinking $102,000 worth of pre-Prohibition whiskey (WTAE) Hidden behind a basement staircase at a Westmoreland County mansion was a secret stash of liquid gold: old farm pure rye whiskey. Distilled in 1912 and delivered to industrialist J.P. Brennan in 1917, nearly 100 bottles of West Overton Distilling Company's pure rye collected dust until their discovery recently. Homeowner Patricia Hill surmised Brennan hid the whiskey during Prohibition. Hill purchased the South Broadway mansion from Brennan's daughter at auction in 1986. Since then, Hill has been remodeling the mansion and filling it with antiques in order to open a bed and breakfast, which she did in December 2012. "The whiskey was buried right back here under these stairs. They were doing renovations down here for the plumbing and electrical and they had to rip out underneath the stairs. Whenever they did, they discovered 9 cases of the old farm, pure rye whiskey," said South Broadway Manor's chef and innkeeper, Rick Bruckner. "The story with this isn't just, 'Hey, we have some really old whiskey.' It's, 'Hey, we have some really old, historical whiskey.'" Bruckner explained Brennan was acquainted with Henry Frick and Andrew Carnegie, among other important Pittsburghers during the early 1900's. He said the men would come over to the mansion and likely drink this whiskey. Hill had rented the basement apartment to John Saunders, 62. Saunders is now charged by Scottdale police with consuming 48 bottles of the historic whiskey. In a criminal complaint, Chief Barry Pritts wrote Saunders denied drinking the whiskey or removing labels from the bottles. Saunders reportedly told police he moved the cases to clean them several times but never opened any of the bottles. "Saunders said that the whiskey probably evaporated and being that old, it was probably no good," Pritts wrote.