Financial Overhaul Hits Farmers (WSJ)
Farmer Jim Kreutz uses derivatives to soften the blow should the price of feed corn drop before harvest. His brother-in-law, feedlot owner Jon Reeson, turns to them to hedge the price of his steer. The local farmers' co-op uses derivatives to finance fixed-price diesel for truckers who carry cattle to slaughter. And the packing plant employs derivatives to stabilize costs from natural gas to foreign currencies...
Goldman Can Show SEC Clients Get Best Returns on Its IPOs (Bloomberg)
American companies that used Goldman Sachs as the lead underwriter for initial sales got the highest prices for their shares in the first half of 2010, selling at an average 1.4 percent discount to their offering range, data compiled by Bloomberg show. Buyers were rewarded with an average first-day advance of 9.6 percent, the biggest this year.
Police Search Credit Suisse Offices (WSJ)
The German offices of the Swiss bank were searched Wednesday as part of a widening probe into alleged tax evasion by wealthy Germans using hidden Swiss accounts. The Düsseldorf prosecutor said raids were conducted on 13 Credit Suisse locations around Germany by around 150 investigators.
Hedge-Fund Returns Decline in 2010 Amid Europe Crisis (Bloomberg)
The Eurekahedge Hedge Fund Index, which measures the performance of more than 2,000 funds worldwide, fell 0.5 percent in June and lost 0.02 percent in the first six months, Eurekahedge Pte said in a report. More than 500 funds started globally in the first half, the Singapore-based research firm said.
Germans Show No Inclination to Give Up on Euro, Spurring Boom (Bloomberg)
“A break-up would be a big, big problem for the German economy, probably bigger than for most others,” said Julian Callow, chief European economist at Barclays Capital in London. “Industries in Germany have gained so much market share in Europe. For Germany, it’s a lose-lose situation.”
Death'$ Perfect Timing (NYP)
George Steinbrenner died six months after the federal estate tax expired, saving his wife and four children about half a billion dollars -- and essentially ensuring they can keep the Yankees. The tax, a 45 percent hit that lapsed in January due to lawmaker bungling, is set to be renewed in 2011 -- at 55 percent. Had he died in 2009, his family would have owed about $500 million; if he had survived until 2011, the bill would have been $600 million.
Subprime Crisis Leads To Conviction In Germany (NYT)
The Düsseldorf Regional Court on Wednesday convicted former chief executive officer Stefan Ortseifen of market manipulation. He was accused of misstating IKB’s risks regarding asset-backed securities tied to the U.S. mortgage market in a press release. Mr. Ortsfein had denied wrongdoing. In addition to the suspended term, Mr. Ortseifen must pay a penalty of 100,000 euros, or $127,000, which will go to charities.
Ross to Invest Over $1 Billion in Health Care Venture (CNBC)
“We would like to put at least a billion backing Mac [Crawford] in the healthcare space," Ross said in a live interview on CNBC. “We think this very complex [healthcare] legislation that was put through by the administration will create a whole bunch of new winners and losers.” Looking at the demographics of the U.S., it is likely that the population will consume more health care going forward, explained Crawford. “Because we cannot afford to continue to put people in hospitals and let them stay there for long periods of time, we’ve got to find different settings for them to be able to get their care,” said Crawford.