U.S. Shutdown Idles 800,000 as Congress Deadlocked (Bloomberg)
Congressional leaders have scheduled no further negotiations on spending legislation, raising concerns among some lawmakers that the shutdown could bleed into the more consequential fight over how to raise the U.S. debt limit to avoid a first-ever default after Oct. 17. Chances of a last-minute deal -- seen so often in past fiscal fights -- evaporated shortly before midnight as the House stood firm on its call to delay major parts of President Barack Obama’s health-care law for a year. Senate Democrats were equally firm in refusing to concede and planned a morning vote to reject the House’s call for formal talks. “It is embarrassing that these people who were elected to represent the country are representing the Tea Party,” Senate Majority Leader Harry Reid, a Nevada Democrat, said after midnight. “This is an unnecessary blow to America.”
Americans by 72% Oppose Shutdown Tied to Health Care Cuts (Bloomberg)
In a rejection of congressional Republicans’ strategy, Americans overwhelmingly oppose undermining President Barack Obama’s health-care law by shutting down the federal government or resisting an increase in the nation’s debt limit, according to a poll released today. By 72 percent to 22 percent, Americans oppose Congress “shutting down major activities of the federal government” as a way to stop the Affordable Care Act from going into effect, the national survey from Quinnipiac University found.
In Government Shutdown, Few Parallels With Most Recent One (WSJ)
"The biggest difference by far is that the last one was all about spending, and this one is not. It's about policy," said former North Dakota Sen. Byron Dorgan, who was in the Democratic leadership at the time. The budget fight in late 1995 and early 1996 between GOP House Speaker Newt Gingrich and Mr. Clinton was bitter and at times dramatic. But it was at heart a fight over taxes and spending, and it began and ended with protracted negotiations between the two sides. Neither is the case today. As the price of a budget deal, congressional Republicans demanded a delay in the implementation of President Barack Obama's health-care law, a position that Mr. Obama and Democrats have said was nonnegotiable. "The difficulty here is that Republicans have no achievable endgame," said Daniel Meyer, a former Gingrich chief of staff who went on to serve as White House liaison to the House for President George W. Bush.
RBS's new CEO takes reins with break-up decision looming (Reuters)
Royal Bank of Scotland's new chief executive, Ross McEwan, took up his role on Tuesday with Britain's finance ministry close to deciding whether to make the part-nationalized lender break itself up. The ministry is considering forcing RBS to hive off its problem loans into a separate legal entity, in a move designed to leave the rest of the bank better placed to lend. It is expected to make a decision this month, according to government sources.
Bank Secrets Exposed in EU’s Credit Derivatives Antitrust Probe (Bloomberg)
European Union regulators inadvertently sent confidential data to 13 of the world’s biggest lenders as part of an antitrust complaint in an investigation of the credit derivatives industry. The European Commission said sensitive information was accidentally left in the documents by law firms representing companies in the probe. After the revelation was discovered, recipients including Goldman Sachs Group and JPMorgan Chase were told they must promise to destroy the information without reading it.
JCPenney stake takes big bite out of NY billionaire (NYP)
New York billionaire Richard Perry disclosed late Monday he dumped nearly half his Penney stake following a slew of surprises from the retailer last week that hammered its stock. Hedge fund Perry Capital sold 9 million shares Friday in open-market trades at prices ranging from $9.02 to $9.59, according to a Monday filing with the Securities and Exchange Commission. Those prices are off nearly 50 percent from what Perry paid when he began to accumulate a 19-million share Penney stake this summer, filings show...Perry’s big sale came just a month after raising his ownership stake to 8.6 percent by acquiring 3 million shares from activist investor Bill Ackman — who exited as Penney’s largest shareholder following a bruising battle with the retailer’s board.
Buffett Feasts On Goldman Sachs' Famine (NYP)
The Oracle of Omaha extended a helping hand to the bank run by CEO Lloyd Blankfein during the depths of the financial implosion five years ago. Today, it continues to pay dividends — literally. Buffett stands to make a paper profit of $2.15 billion in Goldman after the investment bank hands him 13.6 million shares — without the savvy investor having had to pony up a red cent, based on a special arrangement with the bank.
CFTC Enforcement Chief To Leave (WSJ)
Mr. Meister's departure comes as the agency's enforcement division is still juggling two big cases: civil charges against former MF Global Holdings Ltd. Chief Executive Jon Corzine and potential charges against J.P. Morgan Chase for market manipulation in its "London whale" trading fiasco.
BOE Warns Of Cyberattacks (WSJ)
The Bank of England said it is reviewing whether its systems can withstand a cyberattack and is pushing banks to do the same, amid heightened international concern over online threats. The U.K. central bank's Financial Policy Committee concluded in September the threat to the financial system from attackers in cyberspace "had many dimensions and was growing," according to a record of the panel's Sept. 18 policy meeting. The FPC is tasked with safeguarding financial stability.
Man named Fudge accused of stealing from Coldstone Creamery (DMR)
Iowa City Police say security footage showed Conor P. Fudge, 25, entering the 39 S. Dubuque St. Cold Stone Creamery after business hours on Sept. 11 and 12 and taking money from a safe. Fudge was also witnessed on security footage taking cakes and containers of ice cream, police say. The owner of the business told officers that Fudge used an unauthorized key to enter the business, according to a police complaint. Fudge hadn’t worked at the ice cream shop since Aug. 27, according to police. The value of stolen money and property was worth $501, according to police. Fudge has been charged with third degree burglary, a class D felony, and an aggravated misdemeanor count of third degree theft.