Forthcoming Facebook Motion Said to Discuss Nasdaq’s Role in I.P.O. (NYT)
Facebook is preparing for battle. One month after its botched initial public offering, the social network is set to file a motion to consolidate all the shareholder lawsuits against the company, according to a person with knowledge of the matter. The lead underwriters, Morgan Stanley, Goldman Sachs, and JPMorgan Chase, are expected to join the motion, which could be filed in the Federal District Court for the Southern District of New York as early as Friday. The motion will represent the first time Facebook has publicly addressed the lawsuits and the performance of its highly anticipated, but ultimately lackluster, IPO on May 18.
Facebook Is Not The Worst IPO (Deal Journal)
Thursday marked the 4-week anniversary of the pricing of the IPO at $38 and today marks the anniversary of the innocuous opening and subsequent turmoil. Through Thursday’s close the stock was down about 26%, losing some $27 billion in market capitalization. That is ugly, but not as bad as the Halloween 2007 debut of Giant Interactive Group. The Chinese online-gaming company raised just over $1 billion in an IPO that started out well, rising about 18% on day one, but then promptly tumbled 30% through its first month, according to Dealogic.
Draghi Hints ECB Is Ready To Act (WSJ)
Providing liquidity "is what we have done throughout the crisis, faithful to our mandate of maintaining price stability over the medium term, and this is what we will continue to do," Mr. Draghi said. The Eurosystem, the ECB and the 17 national central banks that use the single currency "will continue to supply liquidity to solvent banks where needed," he added.
Greeks Return To Ballot Box As Crisis Nears Decisive Moment (Bloomberg)
The June 17 vote will turn on whether Greeks, in a fifth year of recession, accept open-ended austerity to stay in the euro or reject the conditions of a bailout and risk the turmoil of becoming the first to exit the 17-member currency. World leaders have said they’d prefer a pro-euro result, underscoring concern over global repercussions.
Moody's Downgrades Dutch Banks (WSJ)
In a statement, Moody's said it had cut the ratings by two notches each of ABN Amro Bank NV and ING Bank NV to A2, LeasePlan Corp. NV to Baa2 and Rabobank Nederland to Aa2. It also cut the rating of SNS Bank NV by one notch to Baa2.
Giselle Is World's Highest Paid Model (Forbes)
Just like last year, the Brazilian bombshell Bündchen leads the pack with a stunning $45 million in earnings (all estimates from May 1st, 2011 to May 1st, 2012). Even in her early thirties, Bündchen remains an unparalleled force within the fashion world. As the world’s most powerful supermodel, she racks up modeling gigs, spokesperson deals, and independent licensing ventures at every turn...Bündchen’s success combining business with modeling is influencing young, ascendant models. “The ones that are coming up, their model for excellence is Gisele. They’re looking at her and saying ‘that’s what I want to shoot for,’” Razek said.
Swiss Bankers Drop Holiday Plans On Fear Of Arrest (TGM)
...many will be going no farther than the Alps, fretting that Switzerland’s tax disputes with the United States and other nations could leave them open to arrest and extradition if they leave the country and are suspected of aiding tax cheats. Even secretaries working on U.S. accounts at the banks are reckoned to be at risk, while one banker rang an advice hotline because he was worried about nipping over the French border to buy groceries.
Fed Loans Backing AIG, Bear Repaid (WSJ)
On Thursday, the regional Federal Reserve bank said it has been repaid, with interest, on $53.1 billion in loans it made to two crisis-era vehicles that held complex subprime mortgage bonds, home loans, commercial-property loans and other unwanted assets from Bear and AIG. The New York Fed earlier recouped a separate $19.5 billion loan that financed the purchase of mortgage-backed securities from AIG.
Warren Buffett fired Benjamin Moore CEO after Bermuda cruise (NYP)
“[Abrams] kept asking what he’d done wrong,” according to an insider briefed on the ouster. “[Berkshire officials] told him to clear his stuff out while they stood and watched every move he made.”
Gupta Hopes Family Guy Image Will Help (NYP)
The 63-year-old former Goldman Sachs director — facing 25 years in prison on charges of leaking inside information to his hedge fund pal Raj Rajaratnam — has surrounded himself with family and friends throughout the four-week trial. Gupta’s four Ivy League-educated daughters, his wife, Anita, and sister, Kumkum, in-laws and colleagues — roughly a dozen daily attendees — were in the courtroom each day, taking up the first two rows of the gallery. As the jury today starts its second day of deliberations, the fallen Wall Street star hopes the family vibe helps push the panel toward an acquittal.
In the Facebook Era, Reminders of Loss if Families Fracture (NYT)
The Times just found out that one of the weird things about Facebook is that you can find out things about people you haven't spoken to in years: Not long ago, estrangements between family members, for all the anguish they can cause, could mean a fairly clean break. People would cut off contact, never to be heard from again unless they reconciled. But in a social network world, estrangement is being redefined, with new complications. Relatives can get vivid glimpses of one another’s lives through Facebook updates, Twitter feeds and Instagram pictures of a grandchild or a wedding rehearsal dinner. And those glimpses are often painful reminders of what they have lost.
Bank error gives man unlimited ATM withdrawals at Detroit casinos (L10)
Ronald Page, a retired General Motors worker couldn't believe his luck recently. With only a few hundred dollars in his bank account, Page used the ATM at a Detroit casino and it allowed him to make unlimited withdrawals. The ATM spit it out whatever amount Page requested and the same thing happened when he made cash withdrawals at the casino window.Whether it was $10,000, $20,000 or $50,000 the money just kept coming out. A bank error turned his small account into one that had unlimited access to money. Page continued to make withdrawals and gamble again, and again. Before Bank of America caught on, Page had withdrawn $312,000 at Greektown Casino, $103,000 at MGM Grand Casino and $514,000 at Motor City Casino. After 15 days of unlimited withdrawals the bank put a stop on the account, but not before $1.5 million was withdrawn and then gambled away. Now, a federal judge has to decide what to do with Page. Prosecutors recommended 15 months in prison because they believe Page had a lapse of judgment and the bank was at fault for allowing this to happen.