Opening Bell: 04.28.11 - Dealbreaker

Opening Bell: 04.28.11

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Deutsche Bank Profit Jumps (WSJ)
Deutsche Bank AG Thursday reported a 17% jump in first-quarter net profit, lifted by recent acquisitions and the performance of its investment bank, which held up well in tough market conditions that have pressured the results of its peers. Net profit for the quarter rose to €2.1 billion ($3.11 billion) from €1.8 billion a year earlier, matching the bank's best previous quarterly result and beating analyst expectations of €1.89 billion.

Bernanke Starts Dialogue With The Public, Pledges To Keep Stimulus (Bloomberg)
“It’s not clear that we can get substantial improvements in payrolls without some additional inflation risk,” Bernanke said to nearly 60 reporters. “Ultimately, if, if inflation persists or if inflation expectations begin to move, then there’s no substitute for action,” he said. “We would have to respond.”

Exelon to Buy Constellation for $7.9 Billion (Reuters)
Power company Exelon is to buy rival Constellation Energy for $7.90 billion, the latest in a series of deals aimed at consolidating the fragmented industry. Under the terms, Constellation shareholders would receive 0.93 Exelon shares for each share they hold.

Jury Hears Tapes Again At Rajaratnam Trial (BW)
For the second day in a row, jurors asked Wednesday to listen to secretly recorded phone calls of hedge fund manager Raj Rajaratnam and other Wall Street insiders talking about a deal involving the Clearwire wireless company. Prosecutors at the Manhattan trial say the wiretaps prove the Galleon Group chief made tens of millions of dollars by trading on inside tips about earnings and mergers. Lawyers for the Sri Lanka-born Rajaratnam argue he relied on open sources for his decisions.

AIG To Sue Two Firms To Recover Losses (NYT)
The initial suit, against ICP Asset Management and Moore Capital, will claim that A.I.G. suffered losses insuring mortgage securities created by ICP. The suit says ICP manipulated those securities in a way that benefited itself and Moore Capital, which is not accused of fraud, but harmed A.I.G.

Berkshire Fires Back Against Sokol's Lawyer (Dealbook)
A Berkshire director and lawyer released a statement late Wednesday night saying that the company’s board sought to interview Mr. Sokol about his $10 million stake in Lubrizol, contradicting earlier remarks made by Mr. Sokol’s lawyer.

Nuns Rap Lloyd's Knuckles (NYO)
"Whenever we're shareholders in a company," Sister Nora Nash told the Transom, "we believe in being active shareholders." She then administered a further rap on the knuckles: "Because of the uncertainty of the global economy, we believe it would be wise for top executives to be more discretionary."

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