HSBC To Pay Record Penalty (WSJ)
HSBC on Tuesday plans to acknowledge that for years it ignored possible money laundering, part of a record $1.9 billion settlement with U.S. authorities that caps the bank's disastrous foray into the U.S. market. The U.K.-based banking company is expected to forfeit nearly $1.3 billion as part of a deferred prosecution agreement, the largest-ever U.S. forfeiture for a bank, according to people briefed on the agreement between HSBC and multiple U.S. agencies. The deal includes a civil fine of more than $650 million, according to these people. As part of the agreement, the bank will admit to violating the Bank Secrecy Act, the Trading with the Enemy Act and other U.S. laws intended to prohibit money laundering, a government official said.
Three Arrested In Libor Probe (WSJ)
Three British men have been arrested as part of an investigation into the rigging of interest rates, the U.K. Serious Fraud Office said Tuesday. The SFO said the men, aged 33, 41 and 47, are being questioned at a London police station, and that it and the City of London Police executed search warrants on a home in Surrey and two homes in Essex. The arrests are the first by authorities amid a global probe into alleged rigging by bank personnel of the London interbank offered rate over several years.
Morgan Stanley Weighs Share Buyback (WSJ)
Morgan Stanley might soon ask U.S. regulators to let the securities firm buy back shares for the first time in more than four years, according to people familiar with the firm's thinking. The Wall Street bank could make its request to the Federal Reserve as soon as January as part of the annual "stress-test" process, these people said. The stress tests started in 2009 as a way to convince investors that the largest banks could survive a financial crisis. They have been used to determine banks' ability to pay dividends or buy back shares. Share-repurchase and dividend plans are due from 19 large financial firms by Jan. 7.
"Fiscal cliff" outcome still uncertain; talks continue (Reuters)
As the pace of talks quickened to avert the "fiscal cliff" of steep tax hikes and spending cuts set for the end of the year, senior members of the U.S. House of Representatives of both parties cautioned that an agreement on all the outstanding issues remained uncertain. Republicans and Democrats are not close to "finishing anything," California Representative Kevin McCarthy, the Republican whip in the House, told Fox News Monday night. "There's nothing agreed to. They are just beginning to talk," he said of House Speaker John Boehner and President Barack Obama. Meanwhile, Representative Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, said on MSNBC Monday he thought Congress could resolve some of the issues by the December 31 deadline -- among them the hikes in tax rates-but might have to leave others for the new Congress that takes office in January.
Europe in Better Shape Than US: Strategists (CNBC)
"The 'fiscal cliff' in the U.S. is a worry," Garry Evans,Global Head of Equity Strategy at HSBC told CNBC on Tuesday. "And that's one of the reasons that I'm underweight the U.S. and I prefer Europe - it's a bit of an unusual place to be."
Insider Trading Probe Widens (WSJ)
Federal prosecutors and securities regulators are taking a deeper look into how executives use prearranged trading plans to buy and sell shares of their company stock. The Manhattan U.S. attorney's office has launched a broad criminal investigation into whether seven corporate executives cited in a recent Wall Street Journal article traded improperly in shares of their own company's stock, according to a person familiar with the matter. These executives lead companies in industries ranging from retailing to energy to data processing.
Stephen Baldwin Wants Tax Truce (NYP)
Stephen Baldwin is hoping to set things right after he was arrested Thursday and charged with failure to file state income taxes for three years. “I went myself [to the police] in a pre-arranged kind of way, but that won’t stop the process of the powers that be being upset about it,” Baldwin told Page Six at the Plaza Hotel’s Oak Room on Sunday. “I had this pretty serious issue with filings that weren’t handled appropriately. To be honest with you, it’s a situation right now where my lawyers are in a conversation now with New York state and the district attorney’s office, and I’m very hopeful that everything should be fine,” he said. According to reports, the “Usual Suspects” star was arraigned for failure to file tax returns from 2008 to 2010. He owes more than $350,000 in taxes and penalties, and could face jail time. “You have to pay your taxes . . . I just got caught up in a situation that I’m hoping we’re gonna work out,” he said.
U.S. Profit on AIG Climbs to $22.7 Billion on Share Sale (Bloomberg)
The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, the Treasury said in an e-mailed statement.
Fed Seen Pumping Up Assets to $4 Trillion in New Buying (Bloomberg)
“It’s going to be massive and open-ended in size,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York and a former New York Fed economist.
In EU, A Test Of Wills (WSJ)
Among the concerns of EU officials are moves by regulators in countries such as Germany and the U.K. to discourage European banks from moving funds back to their home countries, these officials said. EU officials are considering taking legal action against governments that they view as having adopted overzealous policies that violate the single-market rules, these officials said. The first step would be a formal warning to national authorities. The dispute could eventually land before the European Court of Justice if there is no policy change. The officials' hope, though, is that they can resolve the dispute without resorting to legal action.
Celtics’ Chris Wilcox fined $25K for flipping off ‘Kiss Cam’ during loss to 76ers (YS)
...The gag concludes when the camera pans to the opposing bench, where players usually laugh, fake kiss or just ignore the camera. Boston's Chris Wilcox had a slightly different and less appropriate reaction. Wilcox greeted the 17,921 Wells Fargo Center fans with his middle finger. He was serenaded by boos and received an earful from an assistant coach moments later.