US Not Seeking Goldman Charges (WSJ)
After a yearlong investigation, the Justice Department said Thursday that it won't bring charges against Goldman Sachs or any of its employees for financial fraud related to the mortgage crisis. In a statement, the Justice Department said "the burden of proof" couldn't be met to prosecute Goldman criminally based on claims made in an extensive report prepared by a U.S. Senate panel that investigated the financial crisis.
Carlyle Lands Money Firm (WSJ)
Carlyle Group plans to acquire asset manager TCW Group Inc. from French bank Société Générale SA, in the latest example of a U.S. financial firm seeing value in assets that European banks are shedding under regulatory pressure.
School Bonds Could Trigger Fiscal Shock (FT)
The issue at stake revolves around some exotic bonds issued by San Diego educational authorities in recent years. Once upon a time (think six long decades ago), US school authorities used to finance themselves primarily by using taxes. Then they started to issue a swelling volume of bonds to supplement those taxes. But as the fiscal situation in California has deteriorated, voters have become so upset they have imposed various fiscal straitjackets on educational boards. Worse, property tax revenues, which have been used to fund schools, have declined as the housing market has crashed. That has left schools in a bind. So, local financial advisers have offered some “innovative” solutions. Last year, Poway Unified, one San Diego educational district, issued some $105m worth of “capital appreciation” bonds to finance previously planned investment projects. These are similar to zero-coupon bonds, meaning the district does not need to start repaying interest or capital until 2033. As a result, Poway’s local authority has been able to promise to keep local taxes unchanged while completing previously promised investments (building projects, computers and so on). But, there is a big catch: to compensate for this payment deferral, these bonds are paying double-digit interest rates and cannot be redeemed early. When the bond is repaid in 2051, the total bill will be more than 10 times the initial loan.
US banks told to make plans for preventing collapse (Reuters)
US regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help. The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
A Rejected Jobseeker Sends The Padres The Best Letter Ever (Deadspin)
"After careful review I must decline. I realize I may be burning a bridge here, but in the spirit of reciprocity, I would like to extend you a counter-offer to suck my dick. Clearly, I don't have one of these, so my offer makes about as much sense as yours. But for the price you're charging to attend the event, I'm sure I would have no problem borrowing one."
Manchester United IPO Sold Below Bottom Of Forecast Range (Bloomberg)
The 134-year-old team and the Glazer family that bought it in 2005 sold 16.7 million shares for $14 each, according to a statement yesterday. They had offered the shares, equivalent to a 10 percent stake, for $16 to $20 apiece. The club will start trading today, listing on the New York Stock Exchange under the symbol MANU.
Struggling Euro Members Should Be Removed: Euro Architect (CNBC)
Otmar Issing, the respected German economist and former member of the Bundesbank, said: “We should have started with a smaller number, no doubt about that, with stricter rules. But this is spilled milk. Now we have this composition, and the idea that we should have a policy that no country ever should leave is something which is an invitation to blackmail.”
Regulators Seek Unity In UK Bank Talks (WSJ)
U.S. authorities are forming a group with New York's top financial regulator to negotiate a settlement with Standard Chartered over allegations it illegally hid financial dealings with Iran. The U.S. Treasury Department, Federal Reserve, U.S. Department of Justice and Manhattan district attorney's office are scrambling to reach an understanding with the New York State Department of Financial Services over the ground rules for negotiations with the U.K.'s fifth-largest bank by assets, according to people familiar with the talks.
Norwegian tourist falls asleep on airport baggage belt (Telegraph)
The 36-year-old, who has not been named, arrived at the international terminal of Italy's busiest airport at the end of last month with a backpack and a can of beer in his hand. The Norwegian was due to check in for a flight to Oslo and when he found no one on duty at the airline desk he leapt across the counter and fell into a deep asleep on the baggage belt with his bag beside him. As the belt began to move the unsuspecting tourist reportedly travelled for 15 minutes through the secure baggage area in Terminal 3 before officials spotted his body curled up in a fetal position in an X-ray image on their monitors. He slept through the whole episode and airport police had trouble waking him when they were called to the scene to investigate what had happened. A senior officer with Fiumicino airport police said on Thursday the incident exposed no weaknesses in the terminal's security and it was not the first kind of incident involving "drunks or people with psychological problems."