Tensions Rise At EU Summit (WSJ)
European Union leaders failed to get all of the bloc's 27 members to back a change in the EU treaty to tighten their fiscal coordination as a decisive summit in Brussels ended its first day in the early hours Friday. The leaders, who are still deeply divided over key elements of their crisis strategy, decided they would move to form a pact among at least 23 of the members to tighten rules on national fiscal policy. But details of the proposed treaty remained to be settled. The U.K. stood aside—after Prime Minister David Cameron failed with what officials said was a "shopping list of demands" designed among other things to protect national supervision of its banks—while Hungary, Sweden and the Czech Republic reserved their positions.
Moody's Cuts French Banks (WSJ)
Moody's Investors Service Friday hit Société Générale SA and fellow French bank Crédit Agricole SA with their second downgrade in less then three months, citing poor funding conditions and their exposure to sovereign debt. It also downgraded BNP Paribas SA, France's largest bank by market value, which had been spared during a Moody's review in September. Moody's cut BNP Paribas and Crédit Agricole's long-term debt ratings by one notch to Aa3 and SocGen one notch to A1, giving all three banks negative outlooks. The ratings agency was disparaging, too, about the French banks' recently launched restructuring plans aimed at boosting their capital ratios by shedding assets, saying they could struggle to hit their promised targets. "Given the broader deleveraging efforts being undertaken by banks in France and elsewhere, there is an increasing risk that a lack of market appetite for assets might result in a less-than-expected balance-sheet reduction, or sales at depressed prices," it said.
Falcone's Harbinger Capital Gets SEC 'Wells Notice' (SE)
The Wells Notices state that the staff intends to recommend or is considering recommending that the Commission file civil injunctive actions against HCP, Harbinger Capital Partners Offshore Manager, LLC, Harbinger Capital Partners Special Situations GP, LLC, Mr. Falcone, Mr. Asali, and Ms. Roger alleging violations of the federal securities laws’ anti-fraud provisions in connection with matters previously disclosed and an additional matter regarding the circumstances and disclosure related to agreements with certain fund investors.
Wary European CEO's Move Cash To Germany (Bloomberg)
The Bundesbank, Germany’s central bank, registered capital inflows of 11.3 billion euros ($15 billion) from non-banks in September, according to the breakdown of its current account published Nov. 9. That helped transform a deficit of 47.3 billion euros in Germany’s balance of other capital flows in August to a surplus of 700 million euros in September.
Corzine's Loss May Be Soros's Gain (WSJ)
Investor George Soros's family fund bought about $2 billion of European bonds formerly owned by MF Global Holdings Ltd., the very debt that helped force the securities firm to file for bankruptcy protection Oct. 31, according to people close to the matter.
OWS protesters crash 'Law and Order: SVU' set; film permit revoked (NYP)
Some 40 Occupy Wall Street protesters early this morning returned to their old stomping grounds, where “Law and Order: SVU’’ was set to shoot an episode today. The TV show had recreated the demonstrators’ encampment at Foley Square, complete with tents and tables. Following rumors that the real protestors might interfere with the filming, about 40 cops set up barricades around the set and were there when the demonstrators arrived shortly after midnight. They left soon afterward when the show’s staffers took down the tents and cops announced the permit to film had been revoked. “They were exploiting the movement,’’ said one demonstrator who asked not to be identified. Another said, “they tried co-op the movement, but they were co-opted.’’
Japan Watchdog Seeks Penalty For UBS, Citi (Reuters)
Financial authorities in Tokyo are set to take punitive action against Japanese units of UBS and Citigroup after the markets watchdog said on Friday a trader was found to have tried to influence a short-term interest rate benchmark at the two firms.
China Central Bank to Create $300 Billion Investment Fund (Reuters)
China's central bank plans to create a new vehicle to manage investment funds worth a total of $300 billion to improve returns on the world's largest stockpile of foreign exchange reserves, a source with knowledge of the matter told Reuters. The vehicle would operate two funds, one targeting investments in the United States and the other focused on Europe, said the source, who asked not to be named because of the sensitivity of the matter.
Occupation 101: NYU to Offer Two ‘Occupy Wall Street’ Classes (NYO)
Undergraduate tuition at New York University is around $41,000, but parents can be assured their bright young things are still getting The People’s Education, reports the student newspaper The Washington Square News. NYU plans to offer not one, but two classes on the burgeoning social movement known as Occupy Wall Street, so that the 1 percent may study the 99 at both the undergraduate and graduate levels.