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Opening Bell: 09.27.11

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UBS Bankers Face Dwindling Options as Securities Unit Prepares to Shrink (Bloomberg)
“As soon as the news about Delta One came in, CVs from UBS started flying,” said Jason Kennedy, chief executive officer of London-based recruiter the Kennedy Group, using an abbreviation for resumes. “There are some very good people at UBS and they will be in demand. But for many there’s nowhere to go.”

Goldman Sachs Draws Up Deeper Cuts (DealBook)
With the company’s third quarter closing on Friday, Goldman has been revising its plans, potentially raising the cuts by as much as $250 million, to $1.45 billion. Based on its 2010 spending, such reductions would amount to 5 percent of the firm’s expenses. Along with the possibility of additional layoffs, the firm is expected to reduce employee pay, much of which is handed out later in the year. It is also sharpening its focus on noncompensation expenses, like real estate and travel, according to one of the executives with knowledge of the discussions.

$200K Per Job? Timothy Geithner Says White House Jobs Plan Is Still a Bargain (ABC)
"You've got to think about the costs of the alternatives," Geithner said when asked about Harvard economist Martin Feldstein's calculation that each job created by President Obama's American Jobs Act would cost taxpayers about $200,000. "If government does nothing, it does nothing now because they're scared by politics or they want to debate what's perfect, then there will be fewer Americans back to work, the economy will be weaker," he said.

Wall Street Demonstrations Test Police Trained for Bigger Threats (NYT)
The police’s actions suggested the flip side of a force trained to fight terrorism, in a city whose police commissioner acknowledges the ownership of a gun big enough to take down a plane, but that may appear less nimble in dealing with the likes of the Wall Street protesters.

I can’t be sued: DSK (NYP)
Accused maid molester Dominique Strauss-Kahn says that even the civil case against him should be tossed out now -- because he’s got diplomatic immunity as the former head of the IMF. ... International-law expert Bradford Trebach of The Bronx disagreed. “He can claim whatever he wants ... [but] under the IMF’s articles of agreement, high-ranking IMF officials have what’s called ‘official acts immunity,’ so that means that they would be immune from a lawsuit regarding acts done by them in their official capacity,’’ Trebach told The Post. “The type of thing the maid is talking about does not seem to be something that is an official act.’’

Freddie under fire over bad loan procedures (FT)
Freddie Mac, the US government-controlled mortgage financier, used flawed procedures for determining how lenders repurchased soured loans, probably saddling taxpayers with billions of dollars in losses, according to a federal audit to be released Tuesday.

Greece votes on unpopular tax, public seethes (Reuters)
The vote is an important first test of the government's ability to push through a new wave of belt-tightening announced last week to persuade the International Monetary Fund and the European Union that Athens deserves an 8-billion-euro ($11 billion) loan that it needs to avoid bankruptcy next month. Bus drivers and metro workers launched a strike against the austerity moves and tax collectors began a 48-hour stoppage.

Shipwreck to yield biggest silver haul (FT)
The hoard is worth £135m ($210m) at today’s prices, although its value has fallen 24 per cent since last Wednesday, as the silver price suffered its largest decline in 30 years. The SS Gairsoppa was torpedoed by a German submarine, U-101, in February 1941 as it neared the end of a voyage from Kolkata (then known as Calcutta) in India to London. The wreck was located 4,700m below the surface and about 480km off the coast of Ireland in international waters.

New Capital Rules Likely for Banks (WSJ)
The watchdogs that make up the Basel Committee on Banking Supervision are gathering Tuesday in the Swiss city to consider comments on a planned rule requiring big banks to maintain thicker capital cushions than other institutions. The proposal, first put out in July, aims to curb risk-taking and ensure that these banks are able to absorb sudden losses without damaging the broader financial system or requiring taxpayer bailouts.

"Trader" who told BBC "Goldman Sachs rules the world" was a prankster (YouTube via @nytjim)
He previously impersonated a Down Chemical spokesman (on BBC) and promised that Dow would liquidate Union Carbide to pay compensation to victims of the Bhopal disaster. [Update: or apparently not]

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