Opening Bell: 07.07.10

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EU Lawmakers Back Cap On Bank Bonuses (WSJ)
Under the new rules—part of which will be in place in January—cash bonuses would be capped at 30% of a total bonus, or 20% for particularly high bonuses. A large part of a bonus must also be deferred so it can be recovered if investments don't perform as expected, the Parliament said. Bonuses would be linked to salaries, with each bank setting a limit following broad EU guidelines.

Geithner Confident US in Recovery Despite Market Jitters (Reuters)
"We've seen a little concern about Europe wash across the American economy," he said. The Treasury chief reiterated his view that Europe would manage its debt problems, adding that officials there were "taking the steps that they need to make sure that they're growing again." Asked about the downturn in stock markets in recent weeks, Geithner said markets had seen a long run of improvement that boosted confidence, but added: "You know, recoveries are never even, never steady." Geithner said he believed that the financial reform bill now before Congress "looks like it's going to pass," adding that the legislation would better protect Americans from financial fraud and abuse and will limit risk-taking by financial institutions.

BP Would Be Open To Abu Dhabi Stake (WSJ)
Mr. Hayward flew into Abu Dhabi on Tuesday for meetings with officials including the crown prince and also spoke to the company's employees in the emirate in a town-hall gathering, according to a person familiar with his itinerary. "He'd be happy for Abu Dhabi to take a 10% equity stake," said the person, who asked not to be identified.

Global Investment Bank Earnings Set For Steep Dip (FT)
Howard Chen, an analyst at Credit Suisse, expects revenues from operations in fixed income, currency and commodities at Goldman Sachs and Morgan Stanley to have fallen more than 30 per cent from the first three months of the year. “The sovereign debt crisis stoked a return of investor risk aversion in May, stalling the recovery in the capital markets cycle and spawning pessimism [over] a recovery in the global economy,” Brad Hintz at Bernstein Research wrote in a recent note.

Harass suit by former JPMorgan exec (NYP)
Devinder X. Kumar, a former executive at JPMorgan Chase & Co.'s securities unit, sued the firm for $8 million, claiming he was retaliated against for rejecting a "blatant sexual overture" from his supervisor, according to papers filed yesterday in New York state Supreme Court in Manhattan. Kumar, former vice president of investment banking technology, claims in the suit that a male supervisor made an unwelcome advance and that his work environment became hostile. In the complaint, he said the bank failed to take any disciplinary or remedial action to stop the supervisor's conduct.

Report: ESPN to air LeBron's decision Thursday (CNBC)
He's also on Twitter, if you give a rat's ass. "Hello World, the Real King James is in the Building," said the first tweet from KingJames, which by 11 p.m. EDT had more than 187,000 followers.

Let Goldman Be Goldman (NYT)
William Cohan: "Now that a major political victory in the form of Dodd-Frank is within the grasp of Goldman’s enemies in Washington, the time has come for politicians to lay off the firm and to allow Goldman and the rest of Wall Street to return to some semblance of normalcy. The time has come to let Goldman be Goldman."

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