Opening Bell: 09.10.10

Author:
Publish date:
Updated on

Deutsche Bank Plans Capital Raise (WSJ)
DB is planning to raise as much as €9 billion ($11.4 billion) to boost its stake in another German bank and possibly shore up its own capital, according to people familiar with the matter. The German banking giant plans to launch the huge share sale as early as Monday, the people said. The primary goal for the fund raising will be to give Deutsche Bank cash to make a tender offer for additional shares in Deutsche Postbank AG, Germany's largest retail bank by customers, the people said. Deutsche Bank hasn't finalized its plans and may decide not to go forward with the sale.

Goolsbee To Lead Economic Counsel (WSJ)
Mr. Goolsbee, an economist at the University of Chicago's business school, is currently a member of the council and executive director of the President's Economic Recovery Advisory Board. In elevating him to the council's chairmanship, Mr. Obama has decided to stay with a friend and longtime member of his inner policy circle rather than choosing an older, more prominent academic economist.

As Wall Street Sheriff, Coffey Would Be Discreet (NYT)
"There's nothing more dangerous than a prosecutor who's politically ambitious and has a cavalier attitude toward the facts," Coffey told Reuters in an interview, saying Democratic rival Kathleen Rice fit that category. "I understand that the Attorney General can cut a stock price in half with a bad press release," Coffey said at another point, adding that his experience as a federal prosecutor taught him the value knowing when not to press a case. Coffey said he would draw on pieces of both Cuomo and Spitzer but also stressed that, as a lawyer who has been a plaintiff and defender of firms accused of malfeasance, that prosecutorial discretion was paramount in an attorney general.

Secrets Of Gordon Gekko's Clothes (Esquire)
"The character of Gordon Gekko needed to breath, so to speak. I didn't want to put him in contrast collar, I didn't want to put him back to exactly what he was. He was a groundbreaker at that time — he was outshining everyone around him — so why would he go back to that? Naturally, as a person of strong personality, such forceful instinct would progress. Sharks need to move forward. If they're not moving forward they're dying."

Phil Davison Of Freakout Viral Video Has Never Used YouTube (TPM)
"I went home and had a ham sandwich and went to bed and thought that was the end of it," Davison said when reached at home this afternoon. "A friend called, and well, I'm not very good with electronics, is there a YouTube? It was on some kind of electronic server."

Trump: Developer More Interested Than Money Than Mosque (CNBC)
Speaking days after he offered the developer, Hisham Elzanaty, 25 percent above the price paid for his stake in the Park Place property just a year ago in exchange for moving the mosque elsewhere, Trump said "these are not the finest apples in the barrel."

Paul Krugman: Things Could Be Worse (NYT)
"It’s hard to overstate how destructive the economic ideas offered earlier this week by John Boehner, the House minority leader, would be if put into practice. Basically, he proposes two things: large tax cuts for the wealthy that would increase the budget deficit while doing little to support the economy, and sharp spending cuts that would depress the economy while doing little to improve budget prospects. Fewer jobs and bigger deficits — the perfect combination. More broadly, if Republicans regain power, they will surely do what they did during the Bush years: they won’t seriously try to address the economy’s troubles; they’ll just use those troubles as an excuse to push the usual agenda, including Social Security privatization. They’ll also surely try to repeal health reform, which would be another twofer, reducing economic security even as it increases long-term deficits."

"So I find myself almost envying the Japanese. Yes, their performance has been disappointing. But things could have been worse. And the case Democrats now need to make — the case the president finally began to make in Cleveland this week — is that if Republicans regain power, things will indeed be worse. Americans, understandably, are disappointed over, frustrated with and angry about the state of the economy; but disappointment is better than disaster."

Did Plainfield Commit Fraud? The FBI Wants To Know (Fortune)
Asked for comment, Plainfield provided a written statement: "This story is merely the latest iteration of a strategy of filing a baseless complaint with regulatory authorities against Plainfield, and then using the press to publicize the 'news' that the authorities are investigating the complaint. Our lawyers have advised us not to discuss this further at this time, but we want to be clear that the allegations against Plainfield are entirely without merit. We believe this reporter has shown a consistent bias against Plainfield in her reporting."

Related

Opening Bell: 3.29.16

Deutsche Bank is hiring; Casino agent in Philippines says high-rollers brought in heist money; Man pays $500 a month to live in a wooden 'pod' in San Francisco; and more.

By Gage Skidmore from Peoria, AZ, United States of America (Ash KetchumUploaded by maybeMaybeMaybe) [CC BY-SA 2.0], via Wikimedia Commons

Opening Bell: 7.13.16

IMF not worried about Brexit impact on U.S. growth; Sequoia exits Valeant; IRS auditing marijuana businesses; "I got caught cheating through Pokémon Go"; and more.

Opening Bell: 11.21.12

Germany Hints At More Financing (WSJ) Germany on Wednesday signaled its willingness to provide additional financing for the euro zone's bailout fund and accept lower interest on loans to Athens, in order to get the Greek rescue back on track and free the next tranche of about €44 billion ($56.40 billion) in loans for the euro zone's weakest member. Merkel Sees Chance For Greek Deal Monday (Reuters) "I believe there are chances, one doesn't know for sure, but there are chances to get a solution on Monday," Merkel told the Bundestag lower house of parliament in a debate on the German budget. But the longing for one act, one miracle solution, one truth that means all our problems are gone tomorrow...this will not be fulfilled. What was neglected over years, over decades, cannot be taken care of overnight and therefore we will need to continue to move step by step." H-P Says It Was Duped (WSJ) The technology giant said that an internal investigation had revealed "serious accounting improprieties" and "outright misrepresentations" in connection with U.K. software maker Autonomy, which H-P acquired for $11.1 billion in October 2011. "There appears to have been a willful sustained effort" to inflate Autonomy's revenue and profitability, said Chief Executive Meg Whitman. "This was designed to be hidden." Michael Lynch, Autonomy's founder and former CEO, fired back hours later, denying improper accounting and accusing H-P of trying to hide its mismanagement. "We completely reject the allegations," said Mr. Lynch, who left H-P earlier this year. "As soon as there is some flesh put on the bones we will show they are not true." Analysts Had Questioned Autonomy’s Accounting Years Ago (CNBC) Paul Morland, technology research analyst at broking and advisory house Peel Hunt, told CNBC that he had noticed three red flags in Autonomy’s accounts in the years leading up to the HP acquisition: poor cash conversion, an inflated organic growth rate, and the categorizing of hardware sales as software. London Bankers Become Landlords as Rents Hit Record (Bloomberg) Vivek Jeswani became a landlord by accident when Deutsche Bank AG (DBK) transferred him to New York two weeks after he moved into a new home in central London. Now back in the U.K., Jeswani views the apartment in Baker Street, the fictional home of Sherlock Holmes, as one of his best assets and is about to buy another home to expand his rental business. “There are no other investments as attractive and you’ve got some security if you’ve got an asset you can use yourself,” the 36-year-old risk officer at China Construction Bank Corp.’s U.K. unit said. “There’s a good yield over 5 percent and being in central London, you’ve got demand domestically and internationally.” Trading Charges Reach SAC (WSJ) The hedge funds reaped $276 million in profits and losses avoided based on that information, criminal and civil authorities said—far dwarfing that of any previous insider-trading case. The bulk of the trading profits generated by Mr. Martoma was paid to Mr. Cohen, a person close to the hedge fund said. Fed Still Trying To Push Down Rates (WSJ) Fed Chairman Ben Bernanke suggested that the central bank will keep trying to push down long-term interest rates in 2013, as federal tax and spending policies become a more substantial headwind to the U.S. economy. "We will continue to do our best to add monetary-policy support to the recovery," Mr. Bernanke said at the New York Economic Club, answering a question about how the Federal Reserve would respond to impending spending cuts or tax increases that might restrain economic growth. 'Stiletto Surgery' alters pinky toe for better fit (Fox) These days, some women will do just about anything to fit into their favorite pair of high heels – including surgery. A growing number of women are paying thousands of dollars to surgically alter their feet just to make wearing heels a more comfortable experience. Surgical procedures such as shortening toes, receiving foot injections and even completely cutting off pinky toes are on the rise. “Unless you’ve been there, and you can’t find shoes, and you’re in pain, don’t judge,” said Susan Deming, a patient who recently underwent a toe-shortening procedure. Adoboli’s Fate Decided at Wine Bar as UBS Market Bets Unraveled (Bloomberg) On a cool late summer evening last year in London’s financial district, with the euro-zone crisis worsening and Greece tottering on the edge of default, Kweku Adoboli says he asked the three traders who worked with him at UBS AG’s exchange-traded funds desk to join him for a drink. Adoboli said in a post on his Facebook page that he needed “a miracle” as his bets on the market imploded. That night at a wine bar across the street from their office, Adoboli asked John Hughes, the senior trader on the ETF desk, and two junior traders, what to do. The others decided he should take the blame for billions of dollars in losses and an elaborate web of secret trades in what he called an umbrella account that once held $40 million in hidden profits. “I knew I was going to lose my job anyway, I had already resigned myself to that, so fair enough,” the 32-year-old Adoboli testified last month about the meeting, which the other traders deny took place. Jobless Claims in U.S. Decrease (Bloomberg) Fewer Americans filed applications for unemployment benefits last week as damage to the labor market caused by superstorm Sandy began to subside. Jobless claims decreased by 41,000 to 410,000 in the week ended Nov. 17, the Labor Department reported today in Washington. The number of applications matched the median forecast of 48 economists surveyed by Bloomberg. Soros Buying Gold as Record Prices Seen on Stimulus (Bloomberg) The metal will rise every quarter next year and average $1,925 an ounce in the final three months, or 11 percent more than now, according to the median of 16 analyst estimates compiled by Bloomberg. Paulson & Co. has a $3.66 billion bet through the SPDR Gold Trust, the biggest gold-backed exchange- traded product, and Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show. 'Cannibal Cop' Gilberto Valle planned to to cook up 'some girl meat' on Thanksgiving (NYDN) The "Cannibal Cop" had his own twist for a Thanksgiving dinner this year — cooking up “some girl meat,” prosecutors revealed Tuesday. Gilberto Valle, 28 — who allegedly kept a database of at least 100 women he plotted to rape, cook and eat — planned the freakish feast with one of his online conspirators earlier this year, prosecutors said. “I’m planning on getting me some girl meat,” he wrote to his pal on Feb. 9. “Really tell me more,” responded the friend. “It’s this November, for Thanksgiving. It’s a long way off but I’m getting the plan in motion now,” Valle wrote.