Opening Bell: 10.11.13

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JPMorgan’s Dimon Posts First Loss on $7.2 Billion Legal Cost (Bloomberg)
The third-quarter loss was $380 million, or 17 cents a share, compared with a profit of $5.71 billion, or $1.40, a year earlier, the New York-based company said today in a statement. Shares of the company rose 2.6 percent at 7:50 a.m. after profit adjusted for one-time items beat analysts’ estimates. Dimon, 57, who led JPMorgan to record earnings in each of the past three years, is grappling with regulatory investigations and tightening internal controls following its more than $6.2 billion trading loss last year. The legal costs contributed to a 54 percent surge in non-interest expenses to $23.6 billion, as revenue dropped 8 percent from a year earlier. “In this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen” the bank’s legal reserves, Dimon said in the statement. “While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters.”

Dimon Admits To 'Painful' Quarter (NYP)
“It’s painful for me personally,” Dimon said during a conference call with analysts. “I don’t like losing money for my shareholders.”

Wells Fargo profit rises but mortgage banking income falls (Reuters)
Net income applicable to common shareholders rose to $5.32 billion, or 99 cents per share, from $4.72 billion, or 88 cents per share, a year earlier. Analysts, on average, estimated Wells Fargo would earn 97 cents per share, according to Thomson Reuters I/B/E/S. The bank made $80 billion in home loans, down from $139 billion a year earlier. That marked the smallest amount of mortgages that Wells Fargo extended since the second quarter of 2011, when it made $64 billion. It also ended a streak of seven consecutive quarters making over $100 billion in home loans.

Draghi: ECB ready to act if market rates rise too high (Reuters)
"With regard to money market conditions, the ECB will remain particularly attentive to developments which may have implications for the stance of monetary policy and is ready to consider all available instruments," Draghi added in a statement dated Saturday, but made available on Friday.

Man who had sex with over 1,000 cars has now settled down with a Volkswagen Beetle (Mirror)
Over the last 45 years Edward Smith has bedded nearly 1,000 lovers, but only one has been a person - the rest have been cars. The 62-year-old from Yelm, Washington, United States is a mechaphile - meaning he is sexually attracted to machines. His unusual conquests have included roaring Mustangs, luxury Jaguars and even attack helicopters. He said: "Some guys look at boobs and bums on beautiful women. I look at the front and rear on beautiful cars." Edward, who first became attracted to machines in his teens, went on to bonk hundreds of vehicles and at his peak was having sex with one a week. But his joyriding days are now over and he has committed himself to long-term lover, Vanilla, a second-hand Volkswagen Beetle he bought 30 years ago. It's is an open relationship and Edward also makes love to his 1973 Opal GT called Cinnamon and a 1193 Ford Ranger called Splash. But Vanilla is 'the one' and Edward likes to woo the white-coloured hatchback with picnics and wine-fuelled dates. He added: "When I hold Vanilla in my arms there's a powerful energy that comes from her. "I would say it is extremely satisfying but at times a little melancholy because I know she cannot talk to me. But overall I know she feels what I feel and its intense."

Blackberry Founders Consider Buying Back Company (NYP)
Mike Lazaridis and Douglas Fregin will have to battle both an existing $4.9 billion bid from Fairfax Financial and the fact that the now money-losing company is fast crumbling. One company they won’t have to fight is Google — which had been rumored to have some interest in BlackBerry but, The Post has learned, has shown minimal desire. Lazaridis and Fregin have a combined 10 percent-plus stake in the company. They have retained Goldman Sachs and Centerview Partners to pursue the deal.

Exclusive: U.S. CFTC finishing new, tougher commodity limits rule - sources (Reuters)
The U.S. derivatives market regulator is nearing completion of a new rule for position limits in commodity markets that is in parts tougher than the previous proposal, two sources with direct knowledge of the plan said.

U.S. Said to Open Criminal Probe of Currency Market Rigging (Bloomberg)
The U.S. Justice Department has opened a criminal investigation of possible manipulation of the $5.3 trillion-a-day foreign exchange market, a person familiar with the matter said. The Federal Bureau of Investigation, which is also looking into alleged rigging of interest rates associated with the London interbank offered rate, or Libor, is in the early stages of its currency market probe, said the person, who asked not to be identified because the inquiry is confidential.

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Opening Bell: 02.01.13

Barclays CEO Gives Up Bonus For 2012 (WSJ) Mr. Jenkins, who was named Barclays CEO last year, said in a statement that it was "only right" he give up his pay in light of the various problems that have beset the U.K. bank in recent months. Mr. Jenkins's predecessor, Robert Diamond, quit the bank following allegations that the bank tried to rig interbank lending rates. Barclays is wrestling with other industrywide issues, including the misselling of payment-protection insurance and interest-rate hedging products. "I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances," Mr. Jenkins said. Worst Not Over for Spain Banks After Big Writedowns (CNBC) "The problems for Spanish banking are far from over," Ashok Shah, chief investment officer at wealth management firm London & Capital, told CNBC on Friday. "The underlying real estate market is only half-corrected,so when it fully corrects over the next year of two, the non-performing loans are going to keep spiking up which will keep eating into the tier-one capital so the need to raise more equity is going to be enormous and very, very pressing indeed." 'London Whale' Sounded an Alarm on Risky Bets (WSJ) In one instance, Mr. Iksil told another trader that the size of his bets was getting "scary," according to emails in a Jan. 16 report by J.P. Morgan and to the people familiar with the emails. Mr. Iksil's emails, according to people familiar with them, show there was concern within J.P. Morgan's chief investment office before Chief Executive James Dimon dismissed as a "tempest in a teapot" reports on the whale trades, including an April 6 article in The Wall Street Journal. The New York company first disclosed the trading losses in May, and Mr. Dimon subsequently said he was wrong to have played down concerns raised by the news report. $3.8 Million Bonus For Gorman (NYP) Morgan Stanley reduced pay by 7.1 percent for Chairman and CEO James Gorman, giving him a $9.75 million package that included a $3.75 million long-term incentive award. The bank almost doubled Gorman’s base salary to $1.5 million from $800,000, according to a regulatory filing yesterday. Edward Koch, Brash New York Mayor in 1980s Boom, Dies at 88 (Bloomberg) Serving from 1978 through 1989, Koch presided over the Wall Street-fueled economic boom of the 1980s, turning a $1 billion budget deficit into a $500 million surplus in five years. He restored the city’s credit, doubled the annual budget to $26 billion and oversaw $19 billion in capital improvements. His subsidized housing plan produced more than 156,000 new and renovated units. “Through his tough, determined leadership and responsible fiscal stewardship, Ed helped lift the city out of its darkest days and set it on course for an incredible comeback,” Mayor Michael Bloomberg said today in a statement. He called Koch “an irrepressible icon, our most charismatic cheerleader and champion.” Koch’s in-your-face style, straight talk and catchphrase “How’m I doing?” endeared him to New Yorkers wracked by the lingering fiscal crisis, the Son of Sam serial killings and the arson and looting that erupted after a blackout in July 1977. Geraldo Rivera considering run for U.S. Senate (NYDN) "Fasten your seatbelt," the mustachioed Fox News host said on his radio show Thursday. "I've been in touch with some people in the Republican Party in New Jersey. I am truly contemplating running." The Brooklyn native is eyeing a 2014 bid for the seat currently held by aging Democrat Sen. Frank Lautenberg, who may not seek reelection. Newark’s Democrat mayor, Cory Booker, is exploring a run. Stifel Stalks Faltering Firms as Wall Street Retrenches (Bloomberg) Stifel Financial Chief Executive Officer Ron Kruszewski paused in mid-sentence and asked an employee for the list, a chart showing in red which of the St. Louis-based firm’s rivals have closed or sold out. “There’s this huge consolidation,” Kruszewski, 54, said in an interview in his office, referring to the once crowded field of U.S. regional and local brokerages that vied to serve mid-size companies. “What’s left is very few firms that ever were in the middle market. We’re one of them.” About a dozen golf putters lean against a table. Nine floors down, the lobby is being remodeled with glass and white stone, while a bronze bull and bear statue is planned for outside. The way Kruszewski views it, St. Louis is now the No. 2 U.S. brokerage hub after New York... Economy Adds 157,000 Jobs (WSJ) Economists surveyed by Dow Jones Newswires expected nonfarm payrolls to rise by 166,000 and that the unemployment rate would hold steady at 7.8%. U.S. Sues to Block Big Beer Merger (WSJ) The surprise lawsuit seeks to block Bud Light maker Anheuser-Busch InBev NV's deal with the Mexican company that owns the Corona brand, and comes just a day after concession talks with the government broke down. U.S. authorities said they want to prevent any overcharging by the global giants that dominate mass-market brews. Burger King admits it has been selling beef burgers and Whoppers containing horsemeat (DM) The fast food chain, which has more than 500 UKoutlets, had earlier given a series of ‘absolute assurances’ that its products were not involved. However, new tests have revealed these guarantees were incorrect in a revelation that threatens to destroy the trust of customers. The contamination has been going on since at least last May and potentially for up to one year, according to evidence presented earlier this week. Tonight Burger King abandoned its earlier denials, saying: ‘Four samples recently taken from the Silvercrest plant have shown the presence of very small trace levels of equine DNA. Burger King vice president, Diego Beamonte, said: ‘We are deeply troubled by the findings of our investigation and apologise to our guests, who trust us to source only the highest quality 100per cent beef burgers. Our supplier has failed us and in turn we have failed you. We are committed to ensuring that this does not happen again.' He added: ‘We will dedicate ourselves to determining what lessons can be learned and what additional measures, including DNA testing and enhanced traceability controls, can be taken to ensure that we continue to provide you with the quality products you expect from us.'

Opening Bell: 05.15.12

In Facebook IPO, Frenzy, Skepticism (WSJ) Michael Belanger, a lawyer from Oklahoma City, invests his personal money in the stock market. But he will be skipping Facebook's IPO because he thinks its valuation is totally "out of whack." Scott Schermerhorn, chief investment officer of investment-management firm Granite Investment Advisors, says the hype around Facebook's IPO is going to keep his firm away. "It's a cult stock," he says. Little of that skepticism is weighing on three investors, tracked by The Wall Street Journal since Facebook announced in February that it would go public. Jim Supple was driving with his daughter Jade last autumn, when she turned to him and said, "Daddy, can I buy some of the Facebook company?" Mr. Supple, 47, had been teaching Jade about investing in the stock market for years. He started putting money for her in stocks like eBay and Disney when she was a baby. But the request still took him aback. "How do you know about buying Facebook?" he asked. "I saw in the news that they were going to be selling parts of the company," she responded. "Can we buy some?" Since then, Mr. Supple has been trying to find a way to take $25,000 he has saved for her college fund and purchase Facebook stock. "She doesn't need this money for another eight years," says Mr. Supple. "If it goes the Google route, I'll be in good shape." JPMorgan Said To Weigh Bonus Clawbacks After Loss (Bloomberg) The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made. The incident, which led to Drew’s retirement yesterday, may test JPMorgan’s claw-back policy amid mounting investor criticism over Wall Street pay practices and as regulators investigate the trades. JPMorgan Moves To Protect Dimon (WSJ) The board backs Mr. Dimon and the way he quickly admitted and sought to fix the bank's mistakes, according to this person. "We made errors, and we are going to take care of it," Mr. Dimon told fellow directors during a conference call last week, the person said. "This was bad thinking. This was stupid." Euro Chiefs May Offer Leniency to Greece (Bloomberg) Calling talk of a Greek pullout from the euro “nonsense” and “propaganda,” Luxembourg Prime Minister Jean-Claude Juncker said only a “fully functioning” Greek government would be entitled to tinker with the conditions attached to 240 billion euros ($308 billion) of rescue aid. Man Spends $60,000 In Custody Battle Over Dog Knuckles (CBS) Dershowitz, 34, said he considers Knuckles to be his son, and that although he’s gone through his life savings, he said it’s worth it. In papers filed earlier this year in Manhattan state Supreme Court, Dershowitz said ex-girlfriend Sarah Brega “kidnapped” Knuckles after they broke up. Brega said Dershowitz gave her the puggle pup — half pug, half beagle. Dershowitz started the website Rescue Knux to raise money for the custody fight. For $250, contributors can play fetch with Knuckles. For $10,000, Legends of Graffiti will do a giant, personalized mural. Dershowitz made an emotional video plea and posted the following on his site: I know it might sound funny and I understand that. If it wasn’t so painful, I would be laughing too (I mean, c’mon – dognapp – really?) but this is very serious to me and I miss him a lot. Enough that I have gone into debt to retrieve him and enough that I am on here asking for your help. I need the money to keep fighting the court battle. She comes from a wealthy family that is backing her. I don’t. She keeps filing crazy, frivolous motions just knowing that I can’t afford to respond even after the judge has ruled in my favor. The courts gave me custody already but, sadly, the system is too complex and expensive to make anything that simple and easy. I need help bringing my boy home…where he belongs…for good.” Dick Bove: No Reason to Break Up Big Banks (CNBC) JPMorgan’s much ballyhooed $2 billion loss is no reason to ramp up regulations, noted bank analyst Dick Bove said Monday. “I don’t think there’s any reason to break up the big banks,” he told CNBC. “Particularly if a bank can earn $18 billion a year and $22 billion the next year, why in heaven’s name would you say it can’t be run?” Sanders Sees Conflict With Dimon on New York Fed Board (Bloomberg) Senator Bernard Sanders said he sees a conflict with JPMorgan Chase Chief Executive Officer Jamie Dimon serving on the board of directors at the Federal Reserve Bank of New York, JPMorgan’s regulator. “It is an obvious conflict of interest,” Sanders, an Independent from Vermont, said today in an e-mail response to a question from Bloomberg News. “This is a clear example of the fox guarding the henhouse.” Chesapeake Loan Jars Bond Investors (WSJ) "This loan was priced very attractively" for lenders, said Sabur Moini, manager of a $2.5 billion high-yield-bond portfolio at Payden & Rygel, adding that turmoil in Chesapeake's bonds was largely "self-inflicted." Investor confidence was shaken by the loan, he said, but it has also been dented by other factors, including controversy over CEO Aubrey McClendon's pledging his stakes in company wells as collateral to secure loans with companies that do business with Chesapeake. Rajat Gupta Opposes U.S. Request to Limit Defense at Trial (Bloomberg) Prosecutors had sought to bar Gupta from speculating before the jury about the government’s motives in bringing the case. They also said evidence of Gupta’s past charitable contributions and the purported damage the case has had on his reputation aren’t relevant. “The government attempts to hamstring the defense,” Gupta’s lawyers said in a court filing today. “Mr. Gupta’s charitable activities are a large component of his background and a critical element of who he is as a person.” Cops bust man smuggling cocaine at JFK (NYP) A drug smuggler packed his stash of cocaine inside sticks of deodorant, ink markers and hundreds of buttons — only to be busted by alert customs officers at JFK Airport who noticed a strong odor coming from his suitcase, authorities said today...The items with cocaine hidden inside included 16 markers, 17 sticks of Dove and Odorex deodorant, 24 bottles of nail polish, and about 684 buttons.