SAC Capital's Steven Cohen Expected to Avoid Criminal Charges (WSJ)
U.S. prosecutors have concluded that they don't have enough evidence against hedge-fund billionaire Steven A. Cohen to file criminal insider-trading charges against him before a July deadline, people familiar with the situation said. Investigators probing the biggest alleged insider-trading scheme in history have been eyeing the 57-year-old Mr. Cohen and his namesake SAC Capital Advisors LP hedge-fund firm for a decade, suspicious that some of its trading profits were too good to be legitimate, according to people close to the probe. Prosecutors filed criminal charges last November against a portfolio manager at an SAC affiliate who was close to Mr. Cohen—and kept trying to work their way to the top. Federal agents have approached many former SAC employees for information, showing one person a diagram of the investigation's targets, according to people familiar with the matter. Mr. Cohen's picture was in the middle. But this month's deadline is likely to come and go without any action against Mr. Cohen, people familiar with the investigation said. The deadline is tied to a five-year statute of limitations to file criminal charges related to his trading activity with the portfolio manager, Mathew Martoma. Prosecutors hoped to gain information from Mr. Martoma that could be used against his former boss, but Mr. Martoma hasn't implicated Mr. Cohen. When he was approached by two federal agents, Mr. Martoma fainted in the front yard of his Florida home but has refused to cooperate with the government, according to people familiar with the probe.
Detroit Files Suit Against Bond Insurer (WSJ)
The cash-strapped city of Detroit has filed suit against a bond insurer it alleges is standing in the way of an agreement it is trying to strike with some of its largest creditors. The suit, filed in state court on Friday, is part of an ongoing effort by the city's powerful emergency manager to streamline the process for a potential bankruptcy by cutting as many deals as possible before any court filing, which could come in a matter of months. A filing by Detroit would be the nation's largest municipal bankruptcy.
Dell Shares Fall as Founder Rules Out Higher Offer (WSJ)
Michael Dell doesn't plan to raise his bid for the computer maker he founded, according to a person familiar with the matter, sending Dell Inc. shares lower on Friday as investors worried his proposed $24.4 billion deal for the company won't pass a coming shareholder vote.
Ferrari to Employees: Put Brakes on Group Emails (NBC)
Concerned that messages are slowing down its 3,000 employees, the luxury Italian car manufacturer said in a statement that workers will only be able to "send the same email to three people in-house." Stefano Lai, the vice president for communications, said the company was rolling out an application that would block messages when a fourth name was typed in. "It is not a war or a battle against email," he said. "It's more about making people think than punishing them. It is not a question of productivity, more a question of efficiency.
Falcone’s $1B Ergen assault (NYP)
As LightSquared’s founder, Falcone is mulling a reorganization plan that would seek to compensate all creditors — except for satellite mogul Charlie Ergen, The Post has learned. If Falcone moves forward with the plan, LightSquared would argue before a bankruptcy judge that Ergen shouldn’t be compensated as part of the reorganization because his Dish Network is technically a competitor and, therefore, is in violation of LightSquared’s loan agreement that bans strategic buyers from owning its debt. If the judge agrees, Ergen could find himself stuck with $1 billion of LightSquared’s debt without an obvious payoff.
Joey Chestnut does it again: Champ wins Nathan's hot dog eating contest for record seventh straight year (NYDN)
Joey “Jaws” Chestnut again gorged his way into history Thursday, winning his seventh consecutive Nathan’s Hot Dog Eating championship in Coney Island by scarfing 69 hot dogs and buns in 10 minutes — a new world record. The previous record was 68, which was set last year by Chestnut. “I almost started crying for a second. I'm happy as heck!” said Chestnut, 29, basking in his postprandial achievement. "Things came together today. The hot dogs were really good. It wasn't too hot."
Hedge Funds Post June Decline as Bernanke Roils Markets (Bloomberg)
Hedge funds lost 1.4 percent in June, the most since May 2012, paring the gain in the first six months of 2013 to 1.4 percent, according to data compiled by Bloomberg. Hedge funds that use computer models to decide when to buy and sell securities slumped 6.3 percent last month, extending losses for the year to 7.1 percent, and emerging-market stock funds declined 6.6 percent, leaving them down 9.7 percent in 2013.
Wall Street’s Strongest Get Shot at Wheaties-Like Power Bar Fame (Bloomberg)
Wall Street’s strongest man and woman will get to have their images emblazoned on boxes of chia power bars. As part of a partnership with the annual RBC Decathlon, which crowns the top all-around athlete in the financial community, Health Warrior plans to incorporate the likeness of the two competitors with the best overall scores in the strength events on the nutrition product’s packaging. The promotion is similar to that of Wheaties, the General Mills Inc. cereal with the slogan, “Breakfast of Champions.” Wheaties boxes have featured professional or Olympic athletes such as Lou Gehrig, Bruce Jenner, Carl Lewis, Michael Jordan and Wayne Gretzky dating back to 1934.
U.S. Employers Added More Workers in June Than Forecast (Bloomberg)
Payrolls rose by 195,000 workers for a second month, the Labor Department reported today in Washington, exceeding the 165,000 gain projected by economists in a Bloomberg survey.
Fund Manager Ducks Mortgage Trouble- At His Peril (WSJ)
It is one thing for a hedge-fund manager to sell investments. It is quite another to dump everything, close the firm and hand millions back to investors—for the second time in three years. That is the unusual step Nick Krsnich, a mortgage-focused hedge-fund investor who previously was Countrywide Financial Corp.'s chief investment officer, took last month after he concluded that mortgage bonds and other investments were on thin ice. "The opportunity wasn't there anymore," Mr. Krsnich says. "I just couldn't invest money for people at 4% or 5% yields" on mortgage-backed bonds. So far, Mr. Krsnich's move looks prescient. Since he closed his $36 million JMN Structured Strategies Fund on June 7, mortgage-securities prices have tumbled, lifting yields above 6%. Mr. Krsnich predicts market prices will continue to slump as the Federal Reserve becomes less active as a bond buyer, a view at the center of the debt-market selloff of the past month. Nonetheless, Mr. Krsnich's decision carries potential peril. If the market strengthens, his move will look like folly. And some investors say that whatever happens, Mr. Krsnich may be jeopardizing any chance of raising money again.
Bandits swiped $1.1 million worth of vodka (OS)
Bandits with a taste for high-end vodka were caught on camera swiping $1.1 million worth -- that's 752 cases -- of Spirits of the Tsars Golden Vodka at a customs warehouse in Miami-Dade County.
That's it for us today! Enjoy the long weekend and we'll see you back here Monday!