Opening Bell: 06.07.11 - Dealbreaker

Opening Bell: 06.07.11

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Pimco Takes Bath on Lehman (WSJ)
Now, new court documents show that he also took a bath in loading up on Lehman Brothers Holdings Inc. debt before the investment bank cratered that year. Losses on certain Lehman bonds traded by Mr. Gross's firm, Pacific Investment Management Co., exceed $3.4 billion, according to a Wall Street Journal analysis of liquidation plans and investment disclosures filed in a federal bankruptcy court in New York.

Gross' Call: Early, or Plain Wrong on Treasury Debt? (WSJ)
The fund, available to retail investors, finished in the bottom 10% of intermediate-maturity bond funds in May, with a one-month total return, which comprises interest payments as well as price moves, of 0.52%, nearly half a percentage point less than the average fund in its category.

The Fine Print of Goldman’s Subprime Bet (DealBook)
Andrew Ross Sorkin: "But upon further reporting — talking with executives at Goldman, who pointed me to other documents, and with officials in Washington, and then poring through the report, following the footnotes to the original sources and then cross-referencing them against other public records — I have come to a different and perhaps unsatisfying conclusion for those readers looking for a big scalp: Mr. Blankfein wasn’t lying."

IMF open to extending terms on Greek loans (Reuters)
The IMF is open to delaying Greece's repayment of its international loans but believes a major restructuring of its debt would create untold problems in the euro zone, a Fund official said on Tuesday.

Trichet Signals Endorsing Greek Bond Rollovers (Bloomberg)
European Central Bank President Jean- Claude Trichet signalled for the first time he may support encouraging investors to buy new Greek bonds to replace maturing securities as officials seek to stem the nation’s debt crisis.

Obama’s head of economic council, Austan Goolsbee, to leave, plans return to academia (WaPo)
Austan Goolsbee, one of President Obama’s most trusted economic advisers, said Monday night that he would resign, marking the latest departure from the president’s economic team at a time when the nation’s jobs recovery is slowing.

Eliot Spitzer on Weiner: "Believe Me, I Know, I've Been There" (Daily Intel)
"Believe me, I know, I've been there."

Regulatory Delay Stokes Unease Over Dodd-Frank (WSJ)
Banks, investors and companies are scrambling to cope with uncertainty caused by regulators' delays in fleshing out the Dodd-Frank financial-overhaul law, amid fears the holdup might disrupt the $583 trillion derivatives market and spark a wave of lawsuits. More than 100 new derivatives requirements in the law take effect on July 16, even though regulators have yet to issue final rules in the affected areas.

Fed Is Said to Back Three Percentage-Point Capital Surcharge for Big Banks (Bloomberg)
The Federal Reserve supports a proposal at the Basel Committee on Banking Supervision that calls for a maximum capital surcharge of three percentage points on the largest global banks, according to a person familiar with the discussions.

GE, Capital One Said to Vie for ING Online Bank (Bloomberg)
A buyer would gain control of the largest U.S. online bank and its $81.6 billion of deposits, which give lenders a funding base that is cheaper than offering debt. The purchaser would also have to contend with the bank’s $40.5 billion of mortgage loans and $19.9 billion of mortgage-backed securities, based on the latest figures from the Federal Deposit Insurance Corp.

Don't kill granny: Schwarzman under fire in UK over retirees (NYP)
Amid the media firestorm, the Conservative British government is now probing Blackstone over its management of Southern Cross and the allegation it made big profits by putting seniors at risk. Business Secretary Vince Cable yesterday said he would start an investigation. "I've asked my department to see whether there is an underlying problem with private-equity companies supplying public services," he said.

Carlyle Group is ready for its close-up (WaPo)
Carlyle’s origins are as understated as the discreet New York hotel for which it is named. Pittsburgh’s Mellon family, who put up much of the original $5 million in seed money, preferred to meet with Rubenstein’s team at Madison Avenue’s fashionable Carlyle Hotel. The name stuck.

Wool prices won't suit Saville Row hedge fund speculators (Daily Mail)
The price of a handmade suit is set to climb after wool prices in Australia, the world’s biggest producer, soared to record highs. A typical two-piece bespoke suit will set you back around £3,300. But rocketing raw material inflation will add as much as £300 to an already eye-watering price tag, according to Anda Rowland of Saville Row institution Anderson & Sheppard.

'Breastaurants' Ring Up Big Profits (Entrepreneur)
Franchises inspired by the Hooters model--such as Celtic-themed sports bar chain Tilted Kilt Pub & Eatery and faux mountain sports lodge chain Twin Peaks--have expanded rapidly over the last half decade, while corporate-owned chains like Brick House Tavern + Tap and Bone Daddy's House of Smoke are picking up steam regionally. In fact, for the next couple of years, this segment (often referred to as "breastaurants") is poised to be one of the fastest-growing restaurant categories… Why is this segment so popular? "It starts with comfort," says Darren Tristano, executive vice president of Technomic, a food-industry consulting firm in Chicago. "These concepts are growing by offering a different level of service and attentiveness. They provide a service to men who may not have a person at home to take care of them in the same way. That's important to a number of people, and it drives them back."

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