JPMorgan Earnings Fall Less Than Expected on Accounting Change (Bloomberg, release)
Third-quarter net income fell to $4.26 billion, or $1.02 a share, from $4.42 billion, or $1.01, in the same period a year earlier and $5.43 billion, or $1.27, in the second quarter, the New York-based company said today in a statement. The average per-share estimate for adjusted earnings was 92 cents in a survey of 30 analysts by Bloomberg. JPMorgan would have reported a loss for its investment bank without the debt-valuation adjustment, which added 29 cents a share, under U.S. accounting rules allowed when the market value of a company’s liabilities declines. Chief Executive Officer Jamie Dimon, 55, said in the statement that the gain “does not relate to the underlying operations of the company,” which suffered from a 13 percent decline in investment-banking revenue from the prior quarter.
Long Jail Terms on Rise (WSJ)
In the past two years, defendants sent to prison on insider-trading charges in New York federal courts have received a median sentence of about 2½ years, according to the Journal analysis of white-collar sentencing data from court records and archives involving 108 cases. Just Wednesday, hedge-fund trader Michael Kimelman was sentenced to 2½ years in prison for inside trading. Those sentences compare with a median sentence of 18 months in the past decade and 11½ months from 1993 to 1999, according to the Journal analysis. Meanwhile, a higher percentage of guilty insider-trading defendants on Wall Street and in corporate America have been incarcerated in recent years, according to the analysis. In the past two years, 79% of defendants sentenced in New York have been sent to prison, compared with 59% in the 2000s and less than half from 1993 to 1999, the analysis shows.
Slovakia Clears Road to Complete Euro Bailout Fund Approval (Bloomberg)
Slovakia will approve Europe’s enhanced bailout fund today or tomorrow, completing the ratification process across the 17 euro countries as the region’s leaders prepare for a summit this month. Party leaders in Bratislava yesterday secured backing for the European Financial Stability Facility in a second vote, Robert Fico, head of the largest opposition party Smer, said. Prime Minister Iveta Radicova’s SDKU party in exchange agreed to back early elections to be held on March 10.
Deutsche Bank chief attacks recap plan (FT)
Mr Ackermann described the current recapitalisation debate as “counter-productive” because it would not address the problem of government bonds losing their risk-free status. “On the one hand it [the debate] sends the signal that a [debt] haircut is more likely, and on the other because the resources for recapitalisation will surely not come from private investors, but rather states would ultimately have to raise the funds themselves, thereby worsening their debt levels,” Mr Ackermann said.
Bloomberg visits Occupy Wall Street, says power-cleaners are coming to Zuccotti Park (NYDN)
The mayor went to inform the anti-corporate demonstrators that the owner of Zuccotti Park - where they began camping almost a month ago - plans to bring in power washers Friday. "The last three weeks have created unsanitary conditions and considerable wear and tear on the park," said Deputy Mayor Cas Holloway. "The cleaning will be done in stages, and the protesters will be able to return to the areas that have been cleaned."
Wall Street Journal circulation scam claims senior Murdoch executive (Guardian)
The Guardian found evidence that the Journal had been channelling money through European companies in order to secretly buy thousands of copies of its own paper at a knock-down rate, misleading readers and advertisers about the Journal's true circulation. The bizarre scheme included a formal, written contract in which the Journal persuaded one company to co-operate by agreeing to publish articles that promoted its activities, a move which led some staff to accuse the paper's management of violating journalistic ethics and jeopardising its treasured reputation for editorial quality.
Compensation clouds gather over BlackBerry outage (Reuters)
RIM said services were starting to improve in all affected regions, reducing disruption for the millions of users hit by delays and outages. But many in the telecoms industry believe significant damage has been done to a business that already has its share of trouble. They see a risk that this week's disruption will tip already restless BlackBerry users into the arms of rivals like Apple. Meanwhile the company's service provider partners were looking at how compensation might be handled. "We are reviewing our options in terms of compensation," said a spokesman for Britain's Vodafone, adding that "no decisions have been taken."
With Just Three 9s, Cain Refigured Math for Taxes (NYT)
The 9-9-9 plan . . . is little more than a sketch of what would be a radical and complex overhaul of the tax system. In developing it, Mr. Cain relied heavily on Rich Lowrie, whom he calls his lead economist. Mr. Lowrie is an investment adviser at a Wells Fargo office in Pepper Pike, Ohio. Although he is an unpaid member of an advisory board of the American Conservative Union, he has never worked for a policy research group or an academic institution, or made a name through economic analysis. In an interview, Mr. Lowrie said he had a bachelor of science degree in accountancy from Case Western Reserve University. On his Facebook page, he describes his political views as “free markets.”
Who’s Buying Foreclosed Homes and Why It’s a Problem (Atlantic Cities)
According to a new study published in the Journal of Planning Education and Research, property sales don’t lead to solutions because often the people buying foreclosed properties from banks are also investors looking to resell the property. But these predominantly small-time investors typically have fewer resources to spend on maintaining their homes as they sit on the market and wait for new buyers.
The Euro Voting Process Explained (Reformed Broker)
4. Upon the press conference's conclusion, the pigs are slaughtered and dressed for the ancient Germanic blood rite that precedes all intercontinental parliamentary votes. For 6 days and 7 nights EU officials bathe in blood and copulate wildly, with only Orangina to quench their thirst. When it is determined that each participant has enjoyed the company of each other participant, the first ballot can proceed.
Accuser calls DSK a pig in fictional account of their encounter (NYP)
The French journalist who accuses Dominique Strauss-Kahn of trying to rape her has written a fictionalized account of their brief encounter. And while the former IMF chief may be the central character, writer Tristane Banon never refers to him as anything but “le cochon,’’ the pig. “Eight years ago, le cochon stole my life,’’ she writes in her introduction to her book, titled, “The Hypocrites’ Ball.’’ In fact, the book does not include the real names of any of her characters, except for two. Her lawyer is identified by his first name, David. And Banon reveals that her cat is named after another literary figure, Flaubert.