Founder Stays Mum As Defense Rests (WSJ)
People close to the 53-year-old Galleon Group founder said he told them after his arrest that he intended to testify on his behalf. But putting the main defendant on the stand is a relatively rare strategy in white-collar criminal cases, because of the risk of a blunder during cross-examination by prosecutors. "I think on 'cross' he would be forced to explain difficult tape recordings," said Charles A. Ross, a criminal defense attorney in New York. "There's almost a burden-shifting that occurs when you put a client on the witness stand. I think that burden is a particularly difficult one for the defense to bear."
Rajaratnam Jurors Hear Chiesi’s AMD Discussion as Testimony Ends (Bloomberg)
Prosecutors’ brief rebuttal of Rajaratnam’s weeklong defense included playing a recording of a phone call between Rajaratnam and former New Castle Funds LLC analyst Danielle Chiesi. During the Sept. 30, 2008, call, Chiesi asked Rajaratnam if he had bought 1 million shares of Advanced Micro Devices Inc. (AMD), calling the purchase “a very bold move unless you know what we know.”
Bernanke May Sustain Stimulus To Avoid 'Cold Turkey' End To Aid (Bloomberg)
The Fed chief’s top two lieutenants said this month the economy and inflation are too weak to warrant the start of a monetary-policy reversal. Investors and economists including David Kelly at JPMorgan Funds see that as a signal the Fed will keep its balance sheet at current levels by replacing about $17 billion a month in maturing mortgage debt with Treasuries.
Obama Embarks on Tour to Sell Debt Plan, Not Dwell on S&P Report (Bloomberg)
Obama is scheduled to spend three days traveling through states crucial to his 2012 re-election campaign to publicize his plan to reduce cumulative deficits by $4 trillion over 12 years.
Japan Ministers Confident in US Debt After S&P Move (Reuters)
"The United States is tackling fiscal issues in various ways, so I still think U.S. Treasurys are basically an attractive product for us," Finance Minister Yoshihiko Noda told reporters after a cabinet meeting.
Ukraine's Richest Man Buys UK's Most Expensive Flat (FT)
Rinat Akhmetov, Ukraine’s richest man, has bought the UK’s most expensive flat at the One Hyde Park residential development in London’s Knightsbridge, for £136.6 million.
PIMCO is back in the market buying Treasuries (PMM)
Goldman Sachs Spins Away From Success (Dealbook)
Sorkin: "Having studied Goldman’s statements closely, it appears the firm decided to take a Clintonian approach to parsing its words. Notice that Goldman and Mr. Blankfein always qualify their denials of the firm’s short bets by saying they weren’t “massive” or “large” or “consistent.” Such descriptions may be accurate. What’s large, or even massive, may be in the eye of the beholder."
Credit-Focused Hedge Fund Shrinks As Returns Fall (FT)
GLG Partners is preparing to close one of its largest funds to new investors, amid growing concerns about the ability of supersize hedge fund portfolios to deliver strong returns. The London hedge fund’s market neutral fund will shut when it grows beyond $1 billion, expected to be in the next few weeks. At such a size the credit-focused fund would still be only a third as large as its pre-crisis peak, when it ran more than $3 billion in investor capital.
BNY Mellon Profit Climbs 12% as Market Rally Increases Assets (Bloomberg)
The bank reported a 12 percent increase in first-quarter earnings as a rising stock market lifted assets and the fees for overseeing them. Net income climbed to $625 million, or 50 cents a share, from $559 million, or 46 cents, a year earlier. Analysts had expected the New York-based company to earn 56 cents a share, according to the average of 13 estimates in a Bloomberg survey.
Citi Struggles To Return To Growth (WSJ)
Having recovered from a near-collapse that forced it into the arms of the U.S. government, the New York banking giant has yet to show its overseas growth strategy can produce consistent profit. The challenge now before the bank: Pare its legacy holdings of toxic debt and expand its business abroad, while avoiding market blow-ups that can happen in fast-growing, emerging economies.
Citigroup Settling With JR (NYP)
The bank had been ordered in October to pay almost $12 million in damages to Hagman and charities chosen by him after losing a Financial Industry Regulatory Authority arbitration ruling. A Los Angeles judge dismissed that decision on Feb. 9, leading to Hagman's appeal.
"Mr. Hagman is very pleased that the matter is settled," Aidikoff said.
FAA Suspends Controller For Watching Movie On Duty (AP)
The controller was watching a movie on a DVD player early Sunday morning while on duty at a regional radar center in Oberlin, Ohio, near Cleveland that handles high-altitude air traffic, the FAA said in a statement. The controller's microphone was inadvertently activated, transmitting the audio of the movie - the 2007 crime thriller "Cleaner," starring Samuel L. Jackson - for more than three minutes to all the planes in the airspace that the controller was supposed to be monitoring, the agency said.