October 17, 2021
Updated:
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Opening Bell: 02.07.12

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Greek Talks Resume Amid Strikes (WSJ)
According to Greek officials, the political leaders are closing in on a deal that would reduce those supplementary pension benefits by about 20%, while the cuts in public-sector payrolls will likely be agreed to. Two-month bonus salaries now paid to Greek workers each year are likely to be kept intact, but could be trimmed. Meanwhile, signs of popular protest are growing. Thousands of workers, students and business owners marched through the streets of the Greek capital Tuesday protesting against the new austerity measures being demanded by Greece's international creditors.

Profit Falls At UBS (WSJ)
UBS aid net profit fell to 393 million Swiss francs ($427.9 million) in the quarter ended Dec. 31, from 1.66 billion francs a year earlier, below analysts' average estimate of 739 million francs in net profit. Revenue declined 16% to 5.97 billion francs. In a gesture to shareholders who have gone without a dividend since 2006, UBS will pay a nominal dividend of 0.10 franc a share. The bank's executives did, however, sound a cautious note on the year ahead. "As in the fourth quarter of 2011, ongoing concerns surrounding euro-zone sovereign debt, the European banking system and U.S. federal budget deficit issues, as well as continued uncertainty about the global economic outlook in general, appear likely to have a negative influence on client activity levels in the first quarter of 2012," UBS said in a statement.

UBS Cuts 2011 Bonus Pool 40% (Bloomberg)
“I don’t see how compensation should stay the same or go up if profitability of the banking industry is going south,” Chief Executive Officer Sergio Ermotti told reporters in Zurich today. “We’re trying to strive for a situation in which both the shareholder and employee can have a win-win situation.”

For Sale: AIG's Subprime Bonds (WSJ)
Selling the bonds would let the New York Fed take advantage of buoyant market conditions to dispose of more troubled assets from the financial crisis. It also would bring the central bank closer to ending a controversial chapter of its support for financial markets since 2008. A sale could take place as soon as Wednesday, the people said, if the New York Fed and its investment manager, BlackRock Solutions, feel the winning bid represents good value for U.S. taxpayers.

Facebook Governance a Concern for Pension Fund (Reuters)
The pension fund, which has a portfolio valued at around $145 billion, is planning to send a letter to Facebook, hoping to engage the social networking website on corporate governance, two CalSTRS executives told Reuters in an interview on Monday...CalSTRS decided on Friday — just two days after Facebook filed for a $5 billion initial public offering — to try to talk to the website about improving its corporate governance. CalSTRS invested in Facebook from its funds on the private equity side and is likely to invest in the company's publicly traded shares, Hester-Amey said. "No matter how brilliant you are, when you come to the public market — not that we want to ever tell Zuckerberg or anyone like him how to run his company — there should be some protection especially for long-term, patient money like CalSTRS," Hester-Amey said. "So I think there should be some more respect for capital," she said.

Banks Paying U.S. Homeowners to Avoid Foreclosures (Bloomberg)
Karen Farley hadn’t made a mortgage payment in a year when she got what looked like a form letter from her lender. “You could sell your home, owe nothing more on your mortgage and get $30,000,” JPMorgan Chase & Co. said in the Aug. 17 letter obtained by Bloomberg. Farley, whose home construction lending business dried up after the housing crash, said the New York-based bank agreed to let her sell her San Marcos, California, home for $592,000 -- about $200,000 less than what she owes. The $30,000 will cover moving costs and the rental deposit for her next home. Farley, who is also approved for an additional $3,000 through a federal incentive program, is scheduled to close the deal Feb. 10. “I wondered, why would they offer me something, and why wouldn’t they just give me the boot?” Farley, 65, said in a telephone interview. “Instead, I’m getting money.”

Romney Endorsement Came Down to China Says Trump (Reuters)
Trump said he is impressed that the former Massachusetts governor would declare China a currency manipulator "if they don't change their ways very quickly." "What they're doing with their currency is unbelievable," he said in a CNBC interview. "They are currency manipulators totally beyond anything that anybody's ever seen before and it makes it impossible or very, very hard for other countries to compete with their companies."

Rate Probe Keys On Traders (WSJ)
Investigators in a world-wide probe of how crucial interest rates are set are focusing on a small number of traders suspected of trying to influence other bank employees to manipulate the rates, according to people familiar with the situation. The move is part of investigations by regulators and law-enforcement officials in Europe, Japan and the U.S. that began more than a year ago. Officials are trying to determine if major banks colluded to manipulate benchmark interest rates such as the London interbank offered rate, commonly known as Libor, and the Tokyo interbank offered rate, or Tibor.

Glencore-Xstrata deal meets shareholder opposition (Reuters)
At least two top 10 shareholders in miner Xstrata said Tuesday they would vote against a takeover by commodities trader Glencore, threatening the creation of a powerhouse spanning mining, agriculture and trading.

Congressman Alerts Facebook Followers to Onion Story About $8 Billion Abortionplex (Daily Intel)
An ardent opponent of abortion, Fleming posted on his Facebook account a link to a May 11, 2011 story by The Onion titled "Planned Parenthood Opens $8 Billion Abortionplex." Fleming's Facebook status, which has since been deleted, included the link with the note, "More on Planned Parenthood, abortion by the wholesale." The congressman's followers were directed to Onion's faux-story that begins, "Planned Parenthood announced Tuesday the grand opening of its long-planned $8 billion Abortionplex, a sprawling abortion facility that will allow the organization to terminate unborn lives with an efficiency never before thought possible."

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Opening Bell

Opening Bell: 09.07.12

Bondholders Put On Speed Dial (WSJ) At Wall Street giants Morgan Stanley and Goldman Sachs, the quarterly earnings calls for stock analysts tend to get most of the attention. But another kind of call, this one for bondholders, is moving to the fore. The New York securities firms this summer for the first time held conference calls targeting fixed-income investors. Morgan Stanley and Goldman are seeking out new buyers for their debt in an effort to lower interest rates that are now higher than what industrial companies pay. Investors Expect Libor To Be Replaced Within Five Years (Bloomberg) Forty-four percent of those responding to a quarterly Bloomberg Global Poll said the London interbank offered rate, known as Libor, will be supplanted by a more regulated model within five years. Thirty-four percent predicted the rate will continue to be set by banks in the current fashion, while 22 percent said they didn’t know. Greek Decline Sharper Than Expected (WSJ) So that's not good. Jobless Greeks Resolved to Work Clean Toilets in Sweden (Bloomberg) As a pharmaceutical salesman in Greece for 17 years, Tilemachos Karachalios wore a suit, drove a company car and had an expense account. He now mops schools in Sweden, forced from his home by Greece’s economic crisis. “It was a very good job,” said Karachalios, 40, of his former life. “Now I clean Swedish s---.” Karachalios, who left behind his six-year-old daughter to be raised by his parents, is one of thousands fleeing Greece’s record 24 percent unemployment and austerity measures that threaten to undermine growth. The number of Greeks seeking permission to settle in Sweden, where there are more jobs and a stable economy, almost doubled to 1,093 last year from 2010, and is on pace to increase again this year. “I’m trying to survive,” Karachalios said in an interview in Stockholm. “It’s difficult here, very difficult. I would prefer to stay in Greece. But we don’t have jobs.” Private Equity Tests Pension Funds Patience (WSJ) A new report by a consultant to the California State Teachers' Retirement System, or Calstrs, shows that returns from large U.S. buyout funds are lagging behind many of the pension's internal benchmarks. Vladimir Putin Muses On The Benefits Of Group Sex (Telegraph) President Vladimir Putin of Russia has mused that group sex is better than one-on-one intercourse because participants can take a break. Mr. Putin made the observation on Thursday in his first interview since his inauguration in May, with the Kremlin-controlled, English-language RT television channel. “Some fans of group sex say that it’s better than one-on-one because, as with any collective work, you can skive off,” he said. The comment came after the Russian leader had spoken about an orgy that was staged in Moscow’s state biology museum in 2008 which involved Nadezhda Tolokonnikova, 22, one of three feminist activists of the P*ssy Riot group who were jailed for two years for hooliganism last month after a politically charged trial. Falcone Facing Double Trouble (Bloomberg) A group of LightSquared Inc.’s lenders said they oppose extending Philip Falcone’s control of the wireless broadband venture because his strategy to revive the bankrupt company is too risky. LightSquared, which filed for bankruptcy in May, has asked US Bankruptcy Judge Shelley Chapman for a 150-day extension of its exclusive right to control the bankruptcy case. The lenders, who say they own about $1.1 billion of the $1.7 billion in secured debt of the company’s LP unit, objected in a filing yesterday. “Having nothing to lose, Mr. Falcone wants to pursue a high-risk, high-return strategy” of trying to get regulators to reverse their stance on LightSquared’s technology, the lenders said. Nasdaq-100 to Facebook’s rescue (NYP) Facebook founder Mark Zuckerberg, who has seen his company’s shares get beaten down to less than half their IPO value, may soon get some relief. And ironically, that help will be coming from Nasdaq, the exchange that botched Facebook’s initial public offering back in May. Nasdaq is expected to add Facebook shares to the Nasdaq-100 index, which includes its biggest non-financial companies. The move, which could happen as early as late December after Nasdaq in October re-calibrates the index, should add some stability to Facebook shares. “It’s fair to say that there will be an additional level of liquidity in [Facebook] because of its inclusion in the [Nasdaq-100],” said Adam Sussman, partner at The Tabb Group. UBS, Goldman Join Chorus Of Gloom On China (WSJ) One after the other, many of the largest global banks are cutting their growth forecasts for the world’s second-biggest economy. The downgrades are likely to intensify investors’ concerns about fallout in the rest of Asia, whose exports have taken a kicking from the euro-zone debt crisis and anemic U.S. recovery, while domestic growth also slows. Munich May Not Have Enough Beer for Oktoberfest (CNBC) Beer brewers in Munich may not be able to supply enough beer for the annual Oktoberfest beer festival, local newspaper Munich TZ reported, but the problem is not a lack of the alcoholic beverage. nstead, Heiner Müller, manager at the Paulaner and Hacker-Pschorr brewery told TZ, brewers do not have enough bottles to supply the festival. He called on drinkers to return their empties. "Dear Munichers — bring back your crates. We need our empties,” Müller said...Every summer brewers deal with a shortage of bottles, but it never has been as bad as this year, a spokesman for Hofbräu brewery, which is also suffering from a shortage of bottles, said. He claimed the brewer was short of “tens of thousands” of bottles.

Opening Bell

Opening Bell: 11.20.12

Former UBS Trader Found Guilty (WSJ) Former trader Kweku Adoboli was found guilty on one count of fraud in connection with a $2.3 billion loss the Swiss bank suffered last year, as the juryin the alleged rogue-trading case continued to deliberate on five other counts he was charged with. The partial verdict comes nearly a week after the jury began deliberating following a roughly eight-week trial. It is unclear when the jury might reach verdicts on the other five counts or when sentencing might take place. Mr. Adoboli pleaded not guilty to all six counts. Shakeup At Credit Suisse (WSJ) Credit Suisse said Tuesday that it will combine the Swiss bank's asset management unit with its private bank, but stopped short of announcing the more drastic revamp analysts expected after crosstown rival UBS decided to fire 10,000 bankers. Robert Shafir, who currently heads the U.S. business of Credit Suisse, will take the helm of a new private banking and wealth management division jointly with Hans-Ulrich Meister, who has run the private banking business, the bank said. At the investment bank, Gael deBoissard is being promoted to co-head of the division, jointly with incumbent Eric Varvel. Following the revamp, Credit Suisse will have only two units—wealth management and investment banking--which are distinctly separate from each other, a move that is "in alignment with the new regulatory reality," Chairman Urs Rohner said. Greece Waits Nervously For Vital Bailout Funds (Reuters) Officials familiar with preparations for the finance ministers' meeting expect a "political endorsement in principle" on unfreezing loans to Athens, after Greece completed almost all the reforms that were required of it in exchange for funding. The final go-ahead from the ministers is likely to come only once the remaining few Greek reforms are in place and once there is agreement in the euro zone on how to reduce the country's huge debt and secure extra financing while it is being done. French Downgrade Widens Gulf With Germany as Talks Loom (Bloomberg) France’s loss of the top credit rating at Moody’s Investors Service may weaken President Francois Hollande’s leverage in European budget talks and deepen concern in Germany over its neighbor’s lagging competitiveness. The downgrade late yesterday of Europe’s second-biggest economy underscores the concern expressed by allies of German Chancellor Angela Merkel that the Socialist Hollande’s failure to recognize the urgency of France’s woes risks a deepening of Europe’s slump. “This downgrade will certainly increase pressure on France big-time,” Jan Techau, director of the Carnegie Endowment for International Peace office in Brussels, said today in a phone interview. “It gives Germany more of an edge over France.” ‘Tide Turning’ Against France, Say Economists (CNBC) “The tide is turning for France. Although the country's bond market is likely to remain resilient — the yield on 10-year paper is little changed [Tuesday] morning and still stands a whisker above its record low of 2.06 percent on July 19 — French debt looks more and more overvalued relative to fundamentals,” Nicholas Spiro, Managing Director of Spiro Sovereign Strategy, said in a note on Tuesday. France has enjoyed low borrowing costs as investors have viewed the country as a safe haven in comparison with its southern European cousins. The downgrade of France to AA1 with a negative outlook by Moody’s has thrown its “deteriorating fundamentals….into sharp relief” Spiro said. China’s Richest Woman Divorces Husband, Fortune Declines (Bloomberg) Longfor Properties Co. Chairwoman Wu Yajun is no longer China’s richest woman after divorcing Cai Kui and transferring about 40 percent of the developer’s shares the couple used to own to her ex-husband. Her stake in Longfor, which Wu co-founded with Cai, dropped from a combined 72 percent to 43 percent, while Cai retains 29 percent, according to filings from Hong Kong’s stock exchange. Wu’s net worth is estimated at $4.2 billion, down from $7.3 billion as of 5:30 p.m. New York time yesterday, according to the Bloomberg Billionaires Index. New York Prepares Lawsuit Against Credit Suisse (Reuters) The New York attorney-general is preparing to file a civil lawsuit against Credit Suisse for misleading investors who lost billions of dollars on mortgage-backed securities, according to a source familiar with the matter. The lawsuit, which is expected to be filed on Wednesday, will allege that Credit Suisse misrepresented the quality of loans packaged in securities, according to the source. Petraeus Mistress Paula Broadwell To Jill Kelley: 'I can make you go away' (NYDN) The notes Paula Broadwell sent to Jill Kelley were far more sinister than previously reported and seemed like the rantings of someone “clearly unhinged,” a close friend of Kelley said Monday. “This wasn’t just a catfight. Any normal person who got emails like that would have immediately called the police,” said the friend. She said Kelley read her the emails when she called, panic-stricken and seeking advice in the days before the scandal became a stunning public spectacle and led to Petraeus’ resignation as CIA director. The friend, who did not want to be identified, said Kelley saw the emails as death threats, specifically one in which Broadwell vowed to “make you go away.” [Meanwhile,] Broadwell...bloodied a female news photographer’s forehead Monday in a confrontation outside the biographer’s Charlotte, N.C., home. Broadwell smacked the photographer with the driver’s-side door of her Nissan Pathfinder SUV. “I had my camera and in all the chaos the door slammed and I got hit in the head with the flash,” said Nell Redmond, a freelancer for The Associated Press. Redmond suffered a small cut and is not pressing charges. Morgan Stanley’s Doom Scenario: Major Recession in 2013 (CNBC) The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent. “More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report. Under the bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff” leading to a contraction in U.S. GDP for the first three quarters of 2013. In Europe, the bank’s pessimistic scenario assumes a failure of the European Central Bank (ECB) in cutting rates and a delay of its bond-buying program. Judge Tosses Suit Over AIG (WSJ) A federal judge in Manhattan dismissed a $25 billion lawsuit by Starr International Co., which Mr. Greenberg runs, against the New York Federal Reserve Bank over claims the Fed breached its fiduciary duty to AIG's shareholders in the rescue during the U.S. financial crisis. It is one of two lawsuits Starr, AIG's largest shareholder at the time of the government takeover, is pursuing over the bailout. Mark Cuban Throws A Tantrum On Facebook Fee (NYP) Facebook used to be a “time suck” — now it just sucks. That’s the view of Dallas Mavericks owner Mark Cuban, who is urging marketers to take their business elsewhere after the social network started charging the tech billionaire to send messages to all the team’s fans. “In the past we put FB first, Twitter second,” Cuban wrote in a roughly 1,700-word blog post calling out the social network. “FB has been moved to the bottom of a longer list.” He added: “FB doesn’t seem to want to accept that its best purpose in life is as a huge time suck.” At issue is Facebook’s filtering of posts that appear in users’ news feeds. The site says it is trying to present users with content that they have shown an interest in while cutting down on spam. But Cuban says it is a pay-to-play move. He argues that Facebook is making it harder for marketers to reach their fans without paying for so-called “promoted posts.” And making the site more targeted and efficient is actually a mistake, according to Cuban. He claims most people go to the site because it’s a “time suck” that they enjoy. Cannibal Cop Pleads Not Guilty (NYDN) “cannibal cop,” accused of conspiring with an online buddy to kidnap, rape and slow-cook women, pleaded “not guilty” Monday to two federal charges. Gilberto Valle, 28, was arraigned in Manhattan Federal Court on charges of conspiracy to commit kidnapping and accessing the federal National Crime Information Center database without authorization. Valle’s public defender, Julia Gatto, made a third attempt at getting bail for her now-infamous client. "You have a hard row to hoe," said Judge Paul Gardephe...Valle — who was suspended after being arrested last month in a joint NYPD and FBI investigation — is accused of chatting last July with a sick online buddy about “kidnapping, cooking and eating body parts” of a woman identified as Victim 1, according to the indictment released Friday.

Opening Bell

Opening Bell: 07.25.13

Opening Bell

Opening Bell: 05.06.14

Opening Bell

Opening Bell: 02.03.12

Opening Bell

Opening Bell: 08.01.12

Hope For MF Global Clients (WSJ) A bankruptcy trustee sifting through the remains of MF Global Holdings Ltd. expressed confidence that the failed securities firm's U.S. customers will get all their money back. In written testimony submitted to the Senate Agriculture Committee for a hearing Wednesday, trustee Louis J. Freeh said farmers, ranchers, traders and other investors still owed an estimated $1.6 billion "eventually will be made whole," according to a copy of the testimony reviewed by The Wall Street Journal. UBS Facing Battle On Facebook After Nasdaq Set Aside Cash (Bloomberg) Nasdaq OMX’s creation of a $62 million pool to pay brokers that lost money in Facebook’s public debut shows how far apart the exchange owner is from UBS on who is to blame for losses in the botched deal. Switzerland’s biggest bank said yesterday that its second- quarter profit fell 58 percent in part because of losses that exceeded $350 million in the May 18 initial public offering. UBS is among brokers including Knight Capital Group that have said they’ll seek compensation after a design flaw in Nasdaq’s computers delayed orders and confirmations just as the shares were about to start changing hands. UBS promised legal action to get back more than five times as much money as Nasdaq has set aside. Greeks Can No Longer Afford Paying Expensive Bribes (Reuters) Greeks, whose country is facing bankruptcy, can no longer afford the expensive customary cash-filled "fakelaki" or "little envelope" bribes paid to public sector workers, according to an official. Greece, dependent on international aid to remain solvent, has struggled for years with rampant corruption that has hampered efforts to raise taxes and reform its stricken economy. The health sector and the tax authorities topped the country's corruption rankings for 2011, said a report by Leandros Rakintzis, tasked with uncovering wrongdoing in the public sector...As the crisis deepens, more and more Greeks find themselves no longer able to pay expensive bribes, Rakintzis said. "There are no longer serious corruption offences. There is no money for major wrongdoings," he was quoted as saying by Proto Thema newspaper. Oakland Leaders Enter Battle With Goldman Sachs (Reuters) Oakland is trying to get out of a Goldman-brokered interest rate swap that is costing the cash-starved city some $4 million a year. The swap, entered into 15 years ago as part of a bond sale to hedge against rising interest rates, has turned sour for Oakland now that interest rates are near zero. "I hope that other cities will follow our lead," said Oakland city council member Desley Brooks, addressing about 30 protesters outside Goldman's San Francisco offices. Société Générale Profit Hit by Write-Downs (WSJ) Revenue fell 3.6% to €6.27 billion from €6.50 billion a year earlier. Weak capital markets weighed on corporate and investment bank revenue, which dropped 33% to €1.22 billion in the quarter. French retail bank operations were flat at €2.04 billion while international retail bank revenue fell 1.7% to €1.24 billion. ADP: Private Hiring Jumps (WSJ) Private-sector jobs in the U.S. increased 163,000 last month, according to a national employment report calculated by payroll processor Automatic Data Processing Inc. and consultancy Macroeconomic Advisers. The gain was far above economists' median expectation of 108,000 contained in a survey done by Dow Jones Newswires. The June data were revised to show an advance of 172,000 instead of the 176,000 increase reported earlier. Olympics badminton: Eight players disqualified (BBC) The Badminton World Federation has disqualified eight players after accusing them of "not using one's best efforts to win." Four pairs of players - two from South Korea and one each from China and Indonesia - are out of the Olympics after their matches on Tuesday. The eight were charged after a stream of basic errors during the match. All four pairs were accused of wanting to lose in an attempt to manipulate the draw for the knockout stage. The federation met on Wednesday morning to discuss the case. As well as the "not using best efforts" charge, the players were also accused of "conducting oneself in a manner that is clearly abusive or detrimental to the sport." Speaking before the verdict, Korea's coach Sung Han-kook said: "The Chinese started this. They did it first." Regulate, Don't Split Up, Huge Banks (NYT) Steven Rattner: "We need a Dodd-Frank do-over to create the right oversight apparatus for huge banks. Regulators will always be outnumbered by bankers, and they will never find every problem. But, like prison guards, regulators are essential, even if they are outnumbered. In a world of behemoth banks, it is wrong to think we can shrink ours to a size that eliminates the “too big to fail” problem without emasculating one of our most successful industries." Poker Site Pays $731 Million Fine (WSJ) PokerStars agreed to pay $731 million to end a Justice Department lawsuit alleging bank fraud, money laundering and violations of gambling regulations against it and a another poker website. Under the terms, PokerStars, based in the Isle of Man, will pay $547 million to the Justice Department and $184 million to poker players overseas owed money by it and rival website, Full Tilt Poker. As part of the arrangement, Pokerstars will acquire the assets of Full Tilt, once a fierce rival. Stocks Perform Better If Women Are On Company Boards (Bloomberg) Shares of companies with a market capitalization of more than $10 billion and with women board members outperformed comparable businesses with all-male boards by 26 percent worldwide over a period of six years, according to a report by the Credit Suisse Research Institute, created in 2008 to analyze trends expected to affect global markets. “Companies with women on boards really outperformed when the downturn came through in 2008,” Mary Curtis, director of thematic equity research at Credit Suisse in Johannesburg and an author of the report, said in a telephone interview. “Stocks of companies with women on boards tend to be a little more risk averse and have on average a little less debt, which seems to be one of the key reasons why they’ve outperformed so strongly in this particular period.” ‘High’-end LI coke shuttle (NYP) A Bronx-based drug crew used secret car compartments activated by air conditioning and wiper buttons to deliver up to four kilograms of cocaine to the East End of Long Island each week, Suffolk County authorities said yesterday. Two Bronx men and a Riverhead distributor were busted after a seven-month investigation into the coke operation that flooded the Hamptons with $60 one-gram bags of the white powder. Suffolk DA Thomas Spota said the crew transported the product in cars with secret stash areas that opened when basic car-function buttons were pressed in sequence.

Opening Bell

Opening Bell: 02.09.12

Opening Bell

Opening Bell: 05.02.12

UBS Earnings Helped By Wealth-Management Focus, Risk-Cutting (WSJ) UBS's first-quarter earnings showed that the Swiss bank's strategy of shifting its focus to managing assets for wealthy clients and reducing risk is starting to pay off, demonstrating that it is putting behind it a troubled past marked by huge investment bank losses during the financial crisis, a bruising battle with U.S. tax authorities and a trading scandal last year. Worries about the global economy are likely to prevent clients from investing much in the second quarter, but "we believe our wealth-management businesses as a whole will continue to attract net new money, as our clients recognize our efforts and continue to entrust us with their assets... We have the utmost confidence in our firm's future," UBS said in a statement. The bank's wealth-management units recorded a rise in pretax profit during the quarter and attracted CHF10.9 billion ($12.1 billion) in new assets from clients. UBS also managed to shed more risky assets during the quarter, raised new capital and is on track to meet its target of saving CHF2 billion in costs annually...Reported results for the bank as a whole were less pleasing because an accounting loss on UBS's own debt led to a 54% drop in net profit. Excluding this charge, which was higher than forecast, earnings beat analysts' estimates and contributed to the rise in UBS's shares. The Zurich-based bank said net profit fell to 827 million Swiss francs in the quarter ended March 31 from CHF1.81 billion a year earlier. Revenue fell 22% to CHF6.53 billion from CHF8.34 billion, while operating expenses declined 15% to CHF5.22 billion. Wealthy Americans Queue To Give Up Their Passports (Bloomberg) Rich Americans renouncing U.S. citizenship rose sevenfold since UBS AG (UBSN) whistle-blower Bradley Birkenfeld triggered a crackdown on tax evasion four years ago. About 1,780 expatriates gave up their nationality at U.S. embassies last year, up from 235 in 2008, according to Andy Sundberg, secretary of Geneva’s Overseas American Academy, citing figures from the government’s Federal Register. The embassy in Bern, the Swiss capital, redeployed staff to clear a backlog as Americans queued to relinquish their passports. The Big Doubt Over Facebook's IPO (WSJ) "The question with Facebook and many of the social media sites is, 'What are we getting for our dollars?'" said Michael Sprague, vice president of marketing at Kia Motors Corp.'s North American division. The automaker has advertised on Facebook since 2009 and plans to increase its ad spending on the site. While building brand awareness on a site with 900 million users is valuable, Mr. Sprague said he's unclear if "a consumer sees my ad, and does that ultimately lead to a new vehicle sale?" The concerns from Kia and other advertisers underscore the difficulties of measuring results of nascent-forms of social-media advertising. Madness In Spain Lingers As Ireland Chases Recovery (Bloomberg) “Ireland faced up to its problems faster than others and we expect growth there rather soon,” said Cinzia Alcidi, an analyst at the Centre for European Policy Studies in Brussels. “In Spain, there was kind of a denial of the scale of the problem and it may be faced with many years of significant challenges before full recovery takes place.” Euro-Zone Economic Woes Deepen (WSJ) The euro-zone economy contracted by 0.3% in the fourth quarter of last year, and most recent data suggest it did so again in the first quarter of this year. Many economists regard two quarters of contraction as indicating an economy is in recession. Carlyle's big-name IPO may not generate big gains (NYP) Like debt asset manager Oaktree Capital Group, which declined on its first day of trading earlier this month, Carlyle warns that its first priority is to the interests of its fund investors, and it could make decisions that would reduce revenue in the short-term, such as limiting the assets under management that it oversees or reducing management fees. Did May Day Save Occupy Wall Street? (TDB) For some protesters, the lack of one or two key demands and a stronger organizational structure made the day less effective than it could have been. “I think they have to state their demands along with their actions,” said Anton Alen, a student at Hunter College, adding that he thinks Occupy Wall Street has been clear on many things it would like to see changed. Alen said that the idea of trying to occupy another space Tuesday night was in the right spirit but needed to be thought out better. “I don’t think it can be so spontaneous and still be effective,” Alen said. Sofia Gallisa of Fort Greene, Brooklyn, disagreed. “This isn’t about specific demands,” she said. “It’s never been about specific demands.” Occupy Wall Street has changed the kind of discussions Americans are having about inequality, she said, particularly around issues of class. Peter Schiff: US Treasurys Are ‘Junk,’ Dollar Headed for Collapse (CNBC) “As far as I am concerned, U.S. Treasurys are junk bonds,” Schiff said on CNBC Asia’s “Squawk Box.” “And the only reason that the U.S. government can pay the interest on the debt, and I say ‘pay’ in quotes because we never pay our bills. We borrow the money so we pretend to pay, but the only reason we can do it is because the Fed has got interest rates so artificially low.” Greenspan Says U.S. Stocks ‘Very Cheap,’ Likely to Rise (Bloomberg) “There is no place for earnings to grow except into stock prices,” Greenspan said yesterday. Treasury: No Decision On Floating-Rate Notes (WSJ) "Treasury is in the process of analyzing the feedback, and we continue to study the benefits and optimal terms of a Treasury [floating rate note]," Under Secretary for Domestic Finance Mary Miller said in a statement. Mr. Met is rated number 1 in Major League Baseball (NYDN) The longtime Flushing favorite was chosen as the nation’s No. 1 sports mascot based on his likeability, familiarity and several other factors. Even better, in a reversal of recent on-field fortunes, Mr. Met landed the top spot over NL East rival the Phillie Phanatic.