Opening Bell: 11.15.11

Author:
Dealbreaker
Updated:
Jan 14, 2019
Original:
Nov 15, 2011

UBS Names Ermotti Permanent CEO (WSJ)
In a widely expected move, UBS AG on Tuesday appointed Sergio Ermotti as chief executive, just days ahead of a key meeting where it plans to tell investors it will shrink its investment bank and focus more on managing assets for wealthy clients. Mr. Ermotti, a Swiss national, was named interim-CEO when Oswald Grübel stepped down abruptly in late September, after the Swiss bank reported it lost more than $2 billion in an alleged rogue-trading incident. He had joined UBS in April, at Mr. Grübel's invitation, from Italian bank UniCredit SpA.

Police Clear Zuccotti Park (WSJ)
Police brought the two-month-old Occupy Wall Street encampment in Zuccotti Park to an abrupt end early Tuesday morning, as hundreds of officers swept in and cleared out protesters and their tents. They arrested 70 protesters who refused to leave and sent others into the surrounding streets, setting off clashes and marches throughout Lower Manhattan...Mr. Bloomberg quickly took responsibility for the move, saying in a statement released before dawn that the park's owners had asked for the city's help in enforcing its rules against sleeping there, but that "the final decision to act was mine."

Court order: City can’t keep Occupy Wall Street protesters and their stuff out of Zuccotti Park (NYDN)
Hours after baton-wielding cops cleared Occupy Wall Street protesters and their tents out of Zuccotti Park, a judge signed a order Tuesday saying the demonstrators can return with their stuff. Mayor Bloomberg said the city was trying to clarify the restraining order signed by Manhattan Supreme Court Justice Lucy Billings, a former civil liberties lawyer.

Timing Questions Emerge On MF Global Cash (WSJ)
As the firm was fighting to survive a customer exodus during the week before its Oct. 31 bankruptcy filing, MF Global officials didn't indicate there were any deficits in customer accounts, according to people familiar with the matter. On Oct. 28, MF Global officials reported to CME Group that the customer funds at the firm were in good shape, according to people familiar with the matter.

Panel Rebuts Fraud Claim Against Sino-Forest (WSJ)
The independent committee investigating Chinese timber producer Sino-Forest Corp. said it found no evidence of fraud at the company and emphatically rejected allegations by a short-seller that sent shares down 80%. The claims by research firm Muddy Waters LLC, which said Sino-Forest was a "near total fraud" and a "Ponzi scheme," were among the most explosive in a string of accusations against Chinese companies. The Canada-listed Chinese timber company says its report—the result of a $35 million, five-month investigation—found that the company owned all the timber it claimed, valued it correctly and had not carried out any questionable transactions.

Jerry Sandusky: "I Enjoy Young People" (Deadspin)
Sandusky, when asked if he was a pedophile, told Costas "no." When asked if he was sexually attracted to young boys, he paused for a moment and then responded: "Am I sexually attracted to underage boys? Sexually attracted? You know, I enjoy young people. I, I love to be around them. I, I... But no, I'm not sexually attracted to young boys." Sandusky also admitted to "horsing around" with young boys in the shower. He still believes that he is "innocent of those charges"—"those" being the 40-count indictment against him—and asks that the public "hang on until my attorney proves my innocence."

Moynihan Says Economy Still Expanding (Bloomberg)
The world’s economy is moving forward, “albeit in the U.S. at a slower pace than we’d like,” Moynihan said today. The bank needs to rebuild its reputation and be more transparent with retail customers after an aborted attempt to impose new fees on debit-card users, he said, adding, “we learned from the experience.”

Euro Zone Break-Up Still 'Worst-Case Scenario' (CNBC)
"A break-up in some fashion is still the worst-case scenario for Europe in every respect: financially, economically and politically," Larry Hatheway, chief economist at UBS, told CNBC Tuesday.

Zurich Police Evict Anti-Bank Protestors (Reuters)
Swiss police on Tuesday evicted anti-banker protesters from the Lindenhof, an ancient square in one of the oldest parts of Zurich, just hours after a similar move by police in New York against an anti-Wall Street demonstration. The 50 or so protesters were given 20 minutes to leave the area where they first pitched tents a month ago, Zurich police said in a statement, adding 31 demonstrators were detained after peacefully resisting the order to move on. Demonstrators had initially gathered in Zurich's Paradeplatz, the main square in Switzerland's financial center before moving to the Lindenhof.

Opening Bell

Goldman Sachs Board Must Act on Smith Op-Ed, Ex-Partner Writes (Bloomberg) Goldman Sachs directors must investigate a former employee’s allegations about a change in the firm’s culture, Jacki Zehner, who was a partner when she left the firm in 2002, wrote on her blog. “These are very serious accusations from a credible person in my view and I hope it does indeed provide a ‘wake-up’ call to the board of directors,” wrote Zehner, who was the first female trader promoted to partner and is married to a former partner. She is now CEO and president of Women Moving Millions, a non- profit supporting the advancement of women and girls worldwide. “It is the board that is accountable to shareholders and before they take another paycheck I hope they ask a heck of a lot of questions and get honest answers,” Zehner, 47, wrote in her March 16 commentary...Janet Tiebout Hanson, who left Goldman Sachs after almost 14 years in 1993 and in 1997 founded the women’s networking firm 85 Broads, wrote her own blog response to Smith’s op-ed piece, calling it a “cowardly act.” “By tossing a verbal hand grenade on his way out the door, he sullied the reputations of the vast majority of the people at the firm who work and live by the highest possible professional standards every single day,” wrote Hanson, who was the first woman at Goldman Sachs to be promoted into sales management. “He is just a quitter who never gave management an opportunity to respond before he verbally strafed the entire firm in print.” Is it Magic Johnson vs. Steve Cohen for Dodgers? (CBS) Cohen's appeal? Cash, mostly. Although Johnson is believed to have the highest total offer on the table (a rumored $1.6 billion), Cohen's bid has more cold, hard, redeemable U.S. currency involved ($900 million, to be precise). That may appeal to McCourt, who's facing a pricey divorce settlement with little more than exposed pocket linings and the Dodger Stadium parking lots to his sullied name. Additionally, as CBSSports.com Insider Jon Heyman has reported, Cohen may have additional credibility in the eyes of MLB because of his willingness to bring on board seasoned baseball men like Tony La Russa and former deputy commissioner Steve Greenberg. Lagarde Says World Can’t Be Lulled Into Sense of Security (Bloomberg) nternational Monetary Fund Managing Director Christine Lagarde urged policy makers to be vigilant as oil prices, debt levels, and the risk of slowing growth in emerging markets threaten global economic stability. “Optimism should not give us a sense of comfort or lull us into a false sense of security,” Lagarde said today at a speech in Beijing at the China Development Forum. “We cannot go back to business as usual.” Gupta’s Lawyer Says ‘Wrong Man’ on Trial in Insider Case (Bloomberg) Gupta’s lawyer, Gary Naftalis, said that Rajaratnam had a different Goldman Sachs tipper, who gave him confidential information about Intel Corp. and Apple, the lawyer said. That Goldman source was also caught on government wiretaps passing the inside information, Naftalis said. Where Was The Bracket Born? (WSJ) Steven Murray, a Colorado Mesa University professor who has studied the history of sports, said the concept that inspired the bracket—a single-elimination sporting competition with many rounds—isn't a modern invention. He said the ancient Greeks held wrestling and boxing competitions starting around 700 B.C. where the combatants would draw lots to set pairings. If the tournament pairings were posted in a bracket form, Murray said, they probably would have been painted with pigment on scrolls, placards or walls and wouldn't have survived...By some accounts, the oldest existing sports bracket lies in the archives of the Wimbledon Lawn Tennis Museum, which houses memorabilia from the famous tennis tournament. According to the curator, Honor Godfrey, the Lawn Tennis Championship printed a bracket in the program to display the pairings in its inaugural year, 1877. Godfrey said she couldn't find a copy of that program, but she did unearth a Xeroxed copy of the program from the following year, 1878. That program, issued by the "All England Croquet and Lawn-Tennis Club" announced the "Lawn Tennis Championship Meeting," which would be contested for a prize of 19 Guineas. Inside, on a full page, is a one-sided bracket with 34 names. To make the pairings add up correctly, a certain E.R. Seymour and a certain H.F. Lawford were awarded byes. To this day, Wimbledon's program includes a bracket of the tournament field. Apple To Say Monday How It Will Use Cash Hoard (NYT) Apple has finally decided what to do with its cash hoard of nearly $100 billion. The company issued an unusual media alert on Sunday evening saying it planned to announce on Monday morning the long-awaited outcome to a discussion by its board about what to do with its cash balance. It will announce its plans in a conference call at 9 a.m. Eastern time. Goldman's God Problem Goes Away, For Now (Reuters) For the past two years, a group of religious institutions that hold Goldman shares has asked the investment bank to review executive compensation packages and has been successful in getting its proposal taken up at regular shareholders' meetings. This year, the group, including the Sisters of St. Francis of Philadelphia, again sought to have its proposal voted on by shareholders. But for the first time, the U.S. Securities and Exchange Commission sided with Goldman, which argued it had already complied with the request Scores Arrested as the Police Clear Zuccotti Park (City Room) The operation occurred after hundreds of people had gathered in the financial district to observe the founding of Occupy Wall Street six months ago. Earlier, protesters had embarked upon a winding march, after which police officers made initial arrests of about a dozen people near the park...Kobi Skolnick, 30, said that officers pushed him in several directions and that as he tried to walk away, he was struck from behind in the neck. “One of the police ran and hit me with a baton,” he said. Cambodia Embracing Capitalism With First IPO Since Khmer Rouge (Bloomberg) Enthusiasm about the start of trading at the exchange, which opened last July without a single listed company, extends beyond the borders of the Southeast Asian country. Investors including Templeton Emerging Markets Group Chairman Mark Mobius said they plan to participate in Cambodia’s stock market after state-owned Phnom Penh Water Supply Authority has its initial public offering next month. “The potential for investors in Cambodia is excellent,” Mobius, who oversees about $50 billion, wrote in an e-mail. “The listing of publicly traded stocks will drive up interest and demand. If a country can list its state-owned enterprises and list enough stocks so that foreign investors can get involved, then it can be very, very good.” E! Network Brings Clint Eastwood Clan (WSJ) Actor and director Clint Eastwood is about to add a credit to his nearly 60-year career: reality-television star. Mr. Eastwood; his wife, Dina; and two of his children, 18-year-old Francesca and 15-year-old Morgan, will appear in "Mrs. Eastwood & Co.," a reality series that tracks the family in Los Angeles, at their Carmel, Calif., home and beyond. The 10-episode series also will follow Overtone, a South African singing group that Mrs. Eastwood manages. The band appeared on the soundtrack of Mr. Eastwood's 2009 film "Invictus," which recounts Nelson Mandela's attempt to use rugby to help unify post-apartheid South Africa.