UBS trader Adoboli held over $2bn loss (FT)
Kweku Adoboli, a 31-year old trader in UBS’s London-based exchange traded funds business, was arrested on Thursday morning in connection with a $2bn loss due to unauthorised trading at the Swiss group’s investment bank.
The Swiss group declined to comment, other than saying the loss had been caused by “a trader” and the matter was under investigation. It warned that the discovery could prompt it to report an overall loss for the group when third-quarter figures are revealed in October. ... “It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected,” the group said in a statement.
EU Lowers Euro-Area Growth Forecasts on Worsening Outlook From Debt Crisis (Bloomberg)
The 17-nation euro region will expand 0.2 percent in the third quarter and 0.1 percent in the fourth, down from an estimate in March for 0.4 percent expansion in both periods, the European Commission in Brussels said today. The growth outlook for Germany, Europe’s biggest economy, was lowered to 0.4 percent for the third quarter and 0.2 percent for the fourth, down from 0.5 percent for each quarter earlier. It forecast no growth for Italy in the second half.
Merkel says euro bonds are "absolutely wrong" (Reuters)
"In order to bring about common interest rates, you need similar competitiveness levels, similar budget situations. You don't get them by collectivizing debts," she said in a speech at the Frankfurt auto show.
Groupon Back on Track for Its I.P.O. (DealBook)
After postponing presentations to potential investors early this month, the online coupon giant is now aiming to go public in late October or early November, according to people briefed on the matter. That would mean that Groupon could embark on its investor roadshow by the middle of next month, these people said.
Europe Lending Woes Deepen (WSJ)
U.S. banks, stuffed with deposits thanks to U.S. networks of branches and access to central bank money, have received requests from European companies seeking loans. One energy company is talking with Citigroup Inc. about obtaining a $1 billion credit line for its shipping operations amid fears that renewing credit with European lenders could prove too expensive, according to a person familiar with the matter.
Tom Brady to Patriots fans: 'start drinking early,' get 'lubed up' and 'rowdy' for NE home opener (NYDN)
James said, less than an hour after the QB's comments according to The Associated Press, that Brady meant fans should "stay hydrated, drink a lot of water. Be loud. Drink responsibly."
Green-tech program that backed Solyndra struggles to create jobs (WaPo)
A $38.6 billion loan guarantee program that the Obama administration promised would create or save 65,000 jobs has created just a few thousand jobs two years after it began, government records show. The program — designed to jump-start the nation’s clean technology industry by giving energy companies access to low-cost, government-backed loans — has directly created 3,545 new, permanent jobs after giving out almost half the allocated amount, according to Energy Department tallies.
SEC Widens CDO Probe (WSJ)
Securities and Exchange Commission officials are in advanced talks with Citigroup to settle civil charges related to a $1 billion mortgage-bond deal called Class V Funding III and created by the Wall Street company in 2007. Among other things, SEC officials have been examining what was disclosed to investors in the Citigroup deal, a collateralized debt obligation created from other CDOs backed by subprime mortgages, according to people familiar with the situation. In particular, officials are looking at allegations that Citigroup may have held short positions that would profit if the housing market fell, the people said.
Britain to sue ECB over threat to City (FT)
An ECB policy paper, released in the summer, requires clearing houses to be based in the eurozone if they handle more than 5 per cent of the market in a euro-denominated financial product. Britain will ask the courts to strike down the rule on the grounds that it restricts the free movement of capital and infringes on the right to establish cross-border businesses across a multicurrency European Union.
Disguised man's plot to shoot love rival was foiled when his fake beard fell off, say police (Daily Mail)
After the beard fell off as he held the man at gunpoint, Cipriani allegedly asked him: 'Do you know who I am?' The husband said: 'No, no, I don’t. I don’t know who you are,' before running out the front door to safety.