Buffett Defends His Tax Rule (WSJ)
The meeting was Berkshire's first since Mr. Buffett made headlines by saying those earning more than $1 million a year should pay a tax rate of at least 30%. One questioner asked whether a CEO should keep his political views "muted," prompting Mr. Buffett to respond that he has a duty to share his views on economic questions. Mr. Buffett said higher taxes on high earners are part of necessary "sacrifice" at a time when a fifth of households subsist on $21,000 or less annually. He added that high earners paid higher rates up until tax-code changes over the past two decades sharply reduced the proportion of income paid by top earners.
Buffett Shuns $22 Billion Deal to Protect Stock Holdings (Bloomberg)
Buffett said he recently opted against a $22 billion acquisition because he didn’t want to sell investments in marketable securities. “We considered one here just a month or two ago, which we would have liked to do,” Buffett, Berkshire’s chairman and chief executive officer, said today at the company’s annual meeting in Omaha, Nebraska. “I would have had to sell some securities I didn’t want to sell.”
Buffett jokes with shareholders after cancer diagnosis (AP)
Billionaire Warren Buffett, who announced last month he has been diagnosed with early-stage prostate cancer, on Saturday joked about his health and told shareholders: "I feel terrific...maybe I'll get shot by a jealous husband, but this is a really minor thing," he said.
Buffett Says U.S. Banks a Class Apart From Europeans (Bloomberg)
“I would put European banks and American banks in two very different categories,” Buffett, Berkshire’s chief executive officer, said May 5 at the firm’s annual meeting in Omaha, Nebraska. “The American banking system is in fine shape. The European system was gasping for air a few months back” until getting assistance from the European Central Bank, he said.
Greek Election Surprise Rejects ‘Barbarism’ of Bailout Austerity (Bloomberg)
Alexis Tsipras became the surprise package of the Greek election by telling Angela Merkel to get lost. “The people of Europe can no longer be reconciled with the bailouts of barbarism,” Tsipras, 37, said on state-run NET TV late yesterday after his Syriza party unexpectedly came second in the country’s election. “European leaders, and especially Ms. Merkel, should realize that her policies have undergone a crushing defeat.”
Citi: Look For A 'Grexit' (CNBC)
The risk of Greece exiting the euro zone have risen to as much as 75 percent, according to economists at Citi. Describing such an outcome as a “Grexit,” the Citi team said, however, that the chances of a broad-based break-up of the euro zone remain very low...With the chances of the formation of a unity or coalition government looking remote, it appears likely that Greek voters will be asked to vote again, something that could see Greece fail to meet the terms of its recent bailout by the so-called “troika” of the European Commission, European Central Bank and International Monetary Fund.
Long Island 'hooker' accused of selling sex out of hot-dog truck -- again (NYP)
A Long Island hooker sold more than just sausage at her roadside hot-dog truck — using the truck to peddle her own flesh even though she’d been busted on the same rap eight years ago, cops said yesterday. Catherine Scalia, 45, was arrested Thursday night when she offered the off-menu special to an undercover cop and took him back to her East Rockaway pad for some home cooking. The mother of four pleaded not guilty to a prostitution charge and was held on $2,000 bail. It’s the second time Scalia’s been busted for mixing sex and Sabretts. She and a pal were nailed in December 2004 for running a similar operation out of the hot-dog truck. Cops recently discovered she was back in business after disgusted residents near her Baldwin stand complained she was handing out suggestive business cards alongside steaming kielbasa.
Falcone’s LightSquared Said to Get Week Credit Extension (Bloomberg)
LightSquared Inc., the wireless- network company backed by billionaire Philip Falcone, received a second weeklong extension from creditors, delaying a potential bankruptcy, a person with knowledge of the matter said. The move gives LightSquared more time to negotiate before having to revisit a waiver that is keeping its debt from going into default.
Icahn unloads his LightSquared debt position (Reuters)
Billionaire investor Carl Icahn has sold his $250 million debt holdings in Philip Falcone’s telecom start-up LightSquared, while Falcone continues to negotiate with creditors to avoid a debt default, according to sources familiar with the matter.
UBS Bets on Toxic Debt Demand After Fed’s Record Sale (Bloomberg)
UBS, which had more than $57 billion of losses and writedowns after the U.S. real-estate crash, is betting there’s enough demand for toxic commercial property assets to sell debt created at the height of the boom. The bank is seeking buyers this week for collateralized debt obligations assembled in 2007 with a face value of $1.5 billion that contain securities tied to skyscrapers, malls and hotel loans. UBS is trying to follow the Federal Reserve Bank of New York’s record $7.5 billion sale of similar bonds last month acquired in the 2008 rescue of AIG.
Confusion Still Reigns On 'Volcker Rule' Date (WSJ)
At issue is whether the Fed is requiring banks to start scaling back on making bets with their own money almost immediately, or whether they can continue until the ban on such activities goes into effect in two years.
Shaq becomes Dr. O’Neal, graduates from Barry University with doctoral degree (Miami Herald)
O’Neal achieved a cumulative GPA of 3.813 while completing 54 credit hours comprised of 16 courses and six credit hours of self-directed research. He did most of his course work via satellite, video conferencing and Blackboard.com. The title of his doctoral capstone project was “The Duality of Humor and Seriousness in Leadership Styles." "Everyone thinks this is honorary. But this is not honorary. I put in four and a half hard years staying up late at night, studying, reading, rewriting papers Dr. Kopp marked up," O’Neal said. "The work was very rigorous, but very enjoyable. And I’m not done. I think I’m going to try law school next. I’m thinking about it. We’ll see."