Opening Bell: 09.17.12 - Dealbreaker

Opening Bell: 09.17.12

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Draghi Euro Humbles Thought Leaders Seeing End of Union (Bloomberg)
“Over the years, global investors have learned that it does not pay to fight the Fed,” Holger Schmieding, chief economist at Berenberg Bank in London, said this month in an interview. “Those betting on the demise of the euro may now have to realize that the ECB is as mighty as the Fed.”

Probe focuses on JPMorgan's monitoring of suspect transactions (Reuters)
A U.S. regulatory probe of JPMorgan Chase & Co's anti-money laundering systems is focusing on potential lapses in how the largest U.S. bank monitors suspect money transactions, according to people familiar with the situation. The probe appears to be focused on the systems and personnel that JPMorgan uses to safeguard against illicit money flows.

QE3 hit by mortgage processing delays (FT)
The Federal Reserve’s attempt to push aid into the heart of the US economy is being blunted by banks struggling to process mortgage applications fast enough, keeping rates on home loans elevated, according to the largest lenders. ... “In the very near term [QE3] has virtually no transfer mechanism whatsoever to the customer,” said one executive at a leading lender, who requested anonymity. “Originators are massively backlogged in terms of origination volumes.”

Occupy Wall Street Kicks Off One-Year Anniversary With Discussions, March, and Arrests (DI)
Occupy Wall Street kicked off its one-year anniversary on Saturday with an afternoon of group discussions in sunny Washington Square and an evening march to Zuccotti Park. To those who have followed the movement, much was familiar: Chants of "Whose street? Our street!" and "We are the 99 percent!"; long talks about ideas and tactics conducted via the People’s Mic; and, eventually, shouts of "Shame! Shame! Shame!" directed at the dozens of NYPD officers assembled around the protest. ... By the end of the night, 18 protesters had been arrested — seemingly at random.

U.S. to File W.T.O. Case Against China Over Cars (NYT)
The Obama administration plans to file a broad trade case at the World Trade Organization in Geneva on Monday accusing China of unfairly subsidizing its exports of autos and auto parts, a senior administration official said late Sunday, in a move with clear political implications for the presidential elections less than two months away. The W.T.O. case accuses China of providing at least $1 billion worth of subsidies from 2009 to 2011 for exports of autos and auto parts.

The Return of Facebook's Winklevoss Twins (WSJ)
"The band is back together," Tyler Winklevoss said over lunch at Manhattan's Ace Hotel with his brother Cameron and Mr. Narendra.

Shoe-loving poker player Beth Shak starting own shoe line (NYP, related)
“My almost-18-year-old daughter wasn’t happy having a mom that traveled and was gambling,” Shak told The Post. “She kept saying, ‘Why don’t you design a shoe line?’ and one day I was like, ‘You know, she’s right.’” Shak, who has competed in the World Series of Poker, has a collection of some 1,200 pairs of shoes that she keeps in password-protected closets in her home in Bryn Mawr, Pa. The collection includes about 700 Christian Louboutin pairs and is valued at nearly $1 million. Her ex-husband, former New York hedge-fund manager Daniel Shak, sued her over the shoes earlier this year, claiming she didn’t disclose their value in their divorce. But the suit was dropped over his laughable claim that he had never noticed her museum-sized collection because it was in a “secret room.” “He is saying he didn’t know the closet in our master bedroom existed,” Beth Shak said at the time.

U.S. Balks at GM Plan (WSJ)
Earlier this summer, GM floated a plan with Treasury officials to repurchase 200 million of the roughly 500 million shares the U.S. holds in the auto maker, according to people familiar with the discussions. Under the plan, Treasury would sell the remaining shares through a public stock offering. But Treasury officials aren't interested in GM's offer at the current price and aren't in a rush to offload shares, according to people familiar with the matter. The biggest reason: A sale now would leave the government with a hefty loss on its investment. At GM's Friday share price of $24.14, the U.S. would lose about $15 billion on the GM bailout if it sold its entire stake. While GM stock would need to reach $53 a share for the U.S. to break even, Treasury officials would consider selling at a price in the $30s, people familiar with the government's thinking have said.

Spanish Banks Bleeding Cash Cloud Bailout Debate: Euro Credit (Bloomberg)
“There are significant outflows of deposits now in Spain and they won’t start coming back until people are sure they’re safe and that Spain is secure,” said Simon Maughan, a financial strategist at Olivetree Securities Ltd. in London.

SEC Keeps Wary Eye on Exchanges (WSJ)
The Securities and Exchange Commission, alarmed at a recent string of high-profile technology mishaps that have roiled stock markets, is homing in on exchanges' ability to monitor their own systems. The SEC is also worried that exchanges, in their rush to introduce new technology, have provided unfair advantages for the computer-driven trading firms that are their biggest customers.

Earnings in United States Are Beginning to Feel a Pinch (NYT)
Giants like FedEx and Intel, two bellwethers of the global economy, are warning of lower quarterly profits because of weakness in worldwide demand. ... In all, Wall Street expects quarterly profits at the typical large American company to decline for the first time since 2009.

Grandmaster of Russia's pyramid cult (Reuters)
The pitch from the pyramid scheme sweeping Russia has undeniable appeal: make money and make the world a better place, it says. ... The MMM website proclaims: "This is, in essence, the most sincere and kind system in this thoroughly dishonest, hypocritical and vicious world."

Parents angry at ban on kids at Brooklyn bar (NYDN)
Parents are foaming mad that Brooklyn teachers who frequent a beer garden near their schools have convinced the proprietors to ban kids after 4 p.m. ... Owner Diane Vasilakos said some of the kids were out of control. She said adult patrons, many of them teachers, were ticked off. “Kids were getting rowdy,” she said. “They expect parents to supervise them a little bit better.”

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Opening Bell: 7.17.17

Nelson Peltz wants a seat at P&G; France isn't being very laissez-faire about Brexit; Ayn Rand might not be the best management guru; and more.