Opening Bell: 10.11.10


Signing Bonuses Haunt Wall Street (WSJ)
In September, a Finra arbitration panel ruled that former Wells Fargo & Co. broker Ivan Pulido had to repay about $1 million he received when he moved to the bank from Merrill Lynch & Co. in 2008...UBS AG executives are trying to squeeze more production out of several hundred brokers in the U.S. who received bonuses to join the company but haven't brought in enough clients or other revenue to become profitable for the Swiss bank. UBS has about 6,700 brokers in the U.S. Senior managers in the division such as its chief executive, Robert McCann, have been pushing some new brokers for about six months to "win back" their old clients. Mr. McCann, a former Merrill brokerage chief who arrived at UBS last year, also has been meeting with clients of longtime brokers at the firm.

CEO's Gather For Group Think (WSJ)
The best place to test the pulse of corporate America will be downtown Chicago on Thursday and Friday as The Business Council swaps the usual country-club setting of its fall meetings for the self-styled risk-management capital of the world. Caterpillar Inc.'s Jim Owens, the group's chairman, Jamie Dimon from J.P. Morgan Chase & Co. and Boeing Co.'s James McNerney will be among the leaders attending what has developed into an annual "group think" for the U.S. business elite, supported by presentations from policy makers and financiers.

'Animal Instincts' Dominate Euro Zone Bond Market (FT)
Hans Blommestein, head of bond markets and public debt management at the OECD, told the Financial Times: “The psychology of the markets is very negative and not necessarily based on facts, but rather on animal instincts and spirits that trigger far greater selling in bond markets than is often justified by the data.”

Banks Voice Resistance as Regulators Say Basel Is Just a Start (Bloomberg)
Central bankers told executives at weekend meetings in Washington to expect more financial rules, especially for the largest firms, after international regulators set minimum standards in Basel last month. If countries surpass that accord, they will deny banks a level playing field and impede growth, chief executive officers including Deutsche Bank AG’s Josef Ackermann and Standard Chartered Plc’s Peter Sands warned at the event, hosted by the Institute of International Finance.

Pimco's El-Erian Says Industrial Economies Risk `Lost Decade' (Bloomberg)
El-Erian said governments and central banks haven’t detected the “ongoing paradigm shift” in their economies that will require remedies beyond stimulus programs. Among the fault lines he spots are strained balanced sheets, persistently high unemployment and a misunderstanding of financial markets.

Cigar Guy Unmasked (Daily Mail)
Guy is golf fan Rupesh Shingadia, a 30-year-old investment analyst in the City – and a very reluctant star. ‘I am embarrassed and overwhelmed,’ he said in an exclusive interview. ‘Never in a million years could I have expected anything like this. It is truly surreal.’ Rupesh said his costume was a ‘tribute’ to Spanish golfer Miguel Angel Jimenez.

UK And France Poised For EU Hedge Fund Deal (Reuters)
France is ready to drop objections to a key part of a law to tighten rules on hedge funds in exchange for concessions from London, a senior diplomat said, moving to end a row that threatened to harm relations with Washington.

White House Aide Doubts Need To Halt Foreclosures (NYT)
“It is a serious problem,” said David Axelrod, who said that the flawed paperwork was hurting the nation’s housing market as well as lending institutions. But he added, “I’m not sure about a national moratorium because there are in fact valid foreclosures that probably should go forward” because their documents are accurate.

'CHiPs' TV cop Wilcox to plead guilty (LATimes)
Larry Wilcox, the former "CHiPs" TV star accused by federal regulators of securities fraud, has agreed to plead guilty to criminal charges in the stock manipulation case. Wilcox, 63, could face five years in prison on one count of conspiracy to commit securities fraud under a plea bargain reached with the U.S. attorney's office in Miami on July 2 and released publicly this week.