Claw Is Out For 'Whale' Officials (WSJ)
The nation's biggest bank is expected to claw back compensation from individuals including Ina Drew, who ran the company's Chief Investment Office, according to people familiar with the bank's plans.
Dimon Risk Reputation On Line As JPMorgan Faces Analysts (Bloomberg)
In a departure from his customary earnings-day conference call, Dimon will meet analysts for two hours on July 13 at the bank’s New York headquarters to field questions about the loss and what he’s doing to contain the damage.
Scandal Shakes Trading Firm (WSJ)
The firm, Peregrine Financial Group Inc., filed Tuesday evening in Chicago to liquidate under Chapter 7 of the bankruptcy code. Earlier in the day, the Commodity Futures Trading Commission filed a lawsuit in federal court in Chicago accusing Peregrine Financial and its founder, Russell Wasendorf Sr., of fraud, customer-funds violations and making false statements. The CFTC said shortfalls may have been present since at least February 2010. A spokeswoman for the FBI said it has also begun an investigation into the company, also known as PFGBest. Brokerage and retail customers had their accounts frozen as regulators began looking into the company's books. Police in Cedar Falls, Iowa, said they found Mr. Wasendorf, 64, in his silver Chevrolet Cavalier Monday morning outside the company headquarters, with a hose running from the car's tailpipe. His son, company President Russell Wasendorf Jr., told the company's roughly 200 employees late Monday that his father had left behind a note alluding to "a crime that had been committed," according to one employee.
Diamond Rebuts Claims By UK Lawmakers (WSJ)
Former Barclays CEO Robert Diamond hit back at allegations he had misled U.K. lawmakers when giving evidence over an interest-rate scandal, calling them "unfair and unfounded."
HSBC Is Sorry (WSJ)
The bank will apologize at a U.S. Senate hearing for its lax efforts to prevent money laundering, the London-based lender's chief executive said in an internal memo. "Between 2004 and 2010, our anti-money-laundering controls should have been stronger and more effective and we failed to spot and deal with unacceptable behaviour," Stuart Gulliver said in the memo, sent to employees Tuesday.
Tigers Kill Man Who Scaled Fence At Danish Zoo (Reuters)
A man was killed by tigers at a zoo on Wednesday after he scaled a fence and crossed a moat to get into their enclosure in the Danish capital Copenhagen, police said. The man, in his early 20s, was savaged by three tigers after he broke into Copenhagen Zoo in the early hours. He was dead when staff arrived for work. "We received an emergency call at about 7:30 a.m. that a person had been found lying in the tiger pen and that three tigers were surrounding that person," police Superintendent Lars Borg told Reuters. "The tigers attacked him and killed him. It is likely that a bite to the throat was the primary reason for his death," Borg said.
Australia Is No Spain, Says Official (CNBC)
Australia’s Deputy Prime Minister and Treasurer Wayne Swan has denied that Australia’s economy is at risk of a Spain-like economic crisis, calling the thesis put forth by the former chief Asia-Pacific economist for Morgan Stanley, Andy Xie “absurd”. “Let’s go through the fundamentals," Swan said. "Bringing our budget back to surplus in 2012-2013, low unemployment, strong job creation over time, a record investment pipeline in resources – half a trillion (dollars). What planet does he live on?”
San Bernardino Becomes Third California City Seeking Bankruptcy (Reuters)
The decision by the leaders of San Bernardino, a city of about 210,000 residents approximately 65 miles east of Los Angeles, followed a report by city staff that said the city faced an imminent financial crisis. The report said the city had exhausted its reserves and projected spending would exceed revenue by $45 million in the current fiscal year which started on July 1.
Dalio Hits Midyear Off 2.7% (NYP)
After leaving its rivals in the dust for the past two years with mouth-watering double-digit returns, Bridgewater is now trailing them. Its flagship fund, Pure Alpha, fell 2.7 percent in 2012’s first half.
Wildebeest takes on 18ft killer crocodile (DM)
As regular as the seasons themselves, herds of wildebeest make an annual migration across east Africa - following rainfall and the growth of new grass. Exploiting this predictability, each year predators lay in wait until the migrating beasts come into their killing zone. Day or night, death can come to the young, sick or simply unlucky members of the herd - swiftly from a single cheetah, or without mercy from a pride of lions or pack of hyenas. For one young male, the end came not on the plains but in one of Kenya's heaving rivers - delivered by one of nature's apex killing machines. Like all in his herd, the doomed wildebeest was taking his chances crossing the Mara River in the Masai Mara reserve in Kenya. Unfortunately for him, he walked straight into the path of an 18ft Nile crocodile - a species of predator so efficient that it has barely changed throughout evolution. The crocodile used its huge weight and strength to attack the beast as it was already caught off balance by the rushing water and uneven footing. Its enormous jaw span virtually took in the entire wildebeest's body as the victim attempted in vain to escape the attack.