Bank execs panic over proposed change to orderly liquidation authority (Politico via HNM)
"Bank executives were panicking last night over a proposed fix to Title II of financial reform literally penciled in at the last minute. The fear is that that the proposed change to the orderly liquidation authority could leave banks on the hook for a possible wind-down of Fannie Mae and Freddie Mac that could cost as much as $400 billion. In the House counter-offer below, Fannie and Freddie are penciled in as falling under the definition of 'financial company,' meaning they could be resolved by the orderly liquidation process. This process is paid for by the sale of the failing company's assets and/or through assessments on other financial companies, possibly putting the Street in line to pay for the liquidation of the troubled housing giants."
European diplomats clash over hedge fund clampdown (Reuters)
The stand-off is taking place shortly before EU leaders including German Chancellor Angela Merkel and French President Nicolas Sarkozy travel to Toronto for a meeting of the Group of 20 major economies. They want to champion Europe as a model for ambitious regulation but an impasse over hedge funds and watchdogs means the EU is struggling to write laws while U.S. President Barack Obama is to sign off on rules within weeks to control finance. "We need statesmanship, not brinkmanship," said one European Union diplomat. "The stakes are too high. By parliament reaching for the impossible, we could all end up with nothing."
Swedish Heiress Tests Kinnevik Legacy With Africa, Russia Move (Bloomberg)
When Jan Stenbeck announced his 21- year-old daughter, Cristina, would succeed him as head of Sweden’s second-largest family controlled investment firm, even she was surprised. Three years later, she was in charge. Stenbeck was 24 at the time her father died in 2002 of a heart attack and had a resume that included two years at Ralph Lauren and five years on the board of a unit of the family’s Kinnevik AB.
Trichet Explains Why Soros Is Wrong About the Euro (CNBC)
"By insisting on pro-cyclical policies, Germany is endangering the European Union," Soros warned. "I realize that this is a grave accusation, but I am afraid it is justified." Trichet dismissed this, saying the euro was a very credible currency that has kept its value from its debut and has guaranteed price stability for 11 and a half years, with an annual average inflation of 1.98 percent in the euro-zone in that period. "A currency that guarantees such stable prices, it's of value in the eyes of domestic and international investors" Trichet told an Italian paper.
The massacring of Goldman Sachs vs. the jocundity of Jefferies (eF)
"Jefferies is a player, and a payer."
Banker Who Blew Whistle on Secrecy Over Tax Cheats Seeks Pardon (Bloomberg)
Sleeping in a bunk bed in a dormitory-style building with 35 other inmates is far from the reward Birkenfeld says he deserves for exposing a massive tax-evasion scandal at UBS, the biggest Swiss bank.
Masseuse Claims Al Gore Sexually Abused Her (NYP)
The alleged incident took place at an upscale hotel in Portland in October 2006 while the former vice president, now 62, was in town to talk about climate change. The woman also claimed she even saved pants she wore the night of the encounter after noticing suspicious stains on the garment, a police report noted.