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.”
Asian Millionaires Firing Banks Take Charge Of Own Wealth (Bloomberg)
Clinton Ang, the grandson of a gunny- sack seller who emigrated last century from China to Singapore, oversees a fortune valued at almost $80 million for himself and three siblings. That makes him a target for wealth managers in Singapore, the private-banking capital of Asia. Yet the 39-year-old managing director of Hock Tong Bee Pte, which evolved from his grandfather’s sacks and foodstuff supplier into a purveyor of $6,000 Grand Cru wines, has already fired two bankers and prefers mostly to manage the money himself. “I am very open to private banks for their propositions, but I want them to be relevant,” said Ang, who’s cut the amount of his family’s money managed by professionals to less than 5 percent from 25 percent three years ago. “We felt we could do better ourselves.”
‘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.