Opening Bell: 03.25.14

Author:
Updated:
Original:

Loneliness of Kiev Bond Trader Shows Market Was Wiped Out (Bloomberg)
Not long ago, Ukraine was one of the hottest spots in emerging markets, posting returns of 24 percent on its dollar-denominated notes in 2012 and luring foreign firms led by Franklin Resources Inc. Those returns turned negative last year as the tug of war between Russian President Vladimir Putin and the West for control of Ukraine began to take shape amid the protests. The value of stocks traded on the Ukrainian Exchange has dropped 27 percent this year to 970 million hryvnia ($91 million), according to data on the bourse’s website. The benchmark equity gauge is up 9.3 percent over the past year after tumbling 69 percent the previous two years.

Morgan Stanley investors await Fed's buyback blessing (Reuters)
Morgan Stanley shareholders will find out this week whether the U.S. Federal Reserve will allow the bank to start returning capital to shareholders in a meaningful way for the first time since the financial crisis. But even if the Wall Street bank gets the Fed's blessing to buy back more shares and potentially raise its dividend, it is unlikely to hit a shareholder return target Chief Executive James Gorman set out for this year, analysts and investors said.

S&P Downgrades Brazil Credit Rating, Citing Weak Growth (WSJ)
The downgrade marks a turnaround from 2008, when Brazil's bonds were awarded investment-grade status amid the global financial crisis. The South American nation seemed to shrug off much of the global downturn, spurring an investor frenzy for Brazilian securities. Brazil soared to 7.5% growth in 2010.

SEC Is Probing Dealings by Banks and Companies in Loan Securities (WSJ)
The Securities and Exchange Commission is investigating whether a Wall Street boom in complicated bond deals is creating new avenues for fraud, according to people close to the probes. SEC investigators are looking at whether banks and companies are using the bond deals to hide certain risks illegally, said the people close to the probes. A number of likely cases in that area are in the pipeline, one of the people said. Separately, the government has expanded an inquiry into how Wall Street banks sell the deals, the people added. The securities being examined aren't traded on any exchanges or open platforms, and their prices are negotiated privately between buyers and sellers.

For Power Suits in Executive Suites, the Latest Accessory Is Rainbow Loom (WSJ)
Until his grandchildren got Rainbow Loom kits, Ralph Fatigate had never owned a bracelet. Now he has nine, all made of tiny colored rubber bands. He wears them to meetings with bankers around the world. Still, enough is enough. "I will wear no more than four at a time," said Mr. Fatigate, a former New York state banking regulator. Rainbow Loom bracelets are all the rage among the tween set, and now they are gaining favor among businessmen who can't say no to a handmade gift from their kids—or their grandchildren...Attorney Greg Keating has an even larger bracelet collection, with about 20 pieces he can choose from when getting dressed for work. Mr. Keating represents companies in employment litigation as a shareholder at law firm Littler Mendelson PC in Boston. His 11-year-old daughter Caroline started working with a looming kit last August. Now Mr. Keating said "she's probably approaching a black belt in Rainbow Loom" and recently made her dad a bracelet of glow-in-the-dark bands. Now he's noticing that other men in the workplace are wearing these bracelets, too: He's spotted them in his office elevator, at business meetings and even in the courtroom...During trials, lawyer Donald Migliori, a member at firm Motley Rice, wears two Rainbow Loom bracelets made by his children. He said he is reluctant to wear other kinds of jewelry that might distract jurors, but the loom bracelets are a welcome reminder of his kids during the more than half of the year he spends on the road for work. His 7-year-old daughter, Gloria, made him a purple, yellow and red Rainbow Loom ring recently. That's where Mr. Migliori, who has been involved in major litigation involving terrorism and tobacco, had to draw the line. The rubber accessories "are beautiful and meaningful," Mr. Migliori said. "But the ring is so thick that I can't even close my hand with it on." Still, he added, "it makes a nice little keychain."

Hurt in Crisis, TPG Pursues Smaller Deals (Dealbook)
For TPG, which still has several soured deals from the pre-crisis era in its portfolio, including huge losses on a troubled energy utility, the new approach involves moving beyond the gigantic acquisitions. Instead, it is looking more at buying minority stakes — common in the world of venture capital but rarer in the realm of buyout titans. None of TPG’s transactions since the financial crisis have topped the $5.2 billion that TPG and two partners spent in 2009 for IMS Health, which on Monday disclosed more information about its coming initial public offering.

Delaware judge calls for end to ‘deluge’ of activist votes (FT)
The chief justice’s proposals, in an article in the latest issue of the Columbia Law Review, include limiting the frequency of say-on-pay votes and charging investors to submit proposals to a company’s annual shareholder meeting. Without such curbs, Mr Strine says, investors could “turn the corporate governance process into a constant ‘Model United Nations’ where managers are repeatedly distracted by referenda on a variety of topics proposed by investors with trifling stakes”.

Adam McKay to direct finance drama 'The Big Short' (AP)
In a shift to drama, Adam McKay will write and direct an adaptation of Michael Lewis' financial crisis best-seller "The Big Short:The Doomsday Machine." Paramount Pictures announced Monday it will produce"The Big Short" along with Plan B, Brad Pitt's production company. McKay is best known as the director of comedies, including the two "Anchorman" films, "Talladega Nights" and "Step Brothers."

Kim Dotcom to list online venture in NZ$210m reverse takeover (FT)
Kim Dotcom, the flamboyant internet entrepreneur accused of masterminding the largest copyright infringement in US history, is planning to list his latest online venture on the New Zealand stock exchange. Mega Limited said on Tuesday that it had agreed to acquire TRS Investments, a shell company listed on the New Zealand stock exchange, in a reverse takeover. The all-share deal would value Mega at NZ$210m (US$180m). It remains conditional upon TRS obtaining shareholder approval. “A lot of people and other companies have expressed a desire to invest in Mega or even buy the company, so a listing is a natural step. It creates a currency,” said Mr Dotcom. He said Mega had sufficient funding to operate regardless, but that listing would enable investors to participate in the growth of a company that provided unique technology to combat “mass surveillance” by governments and corporations.

For sale: Warren Buffett's head, only $29.99 (CNBC)
Fathead.com, which sells oversized stick-on decals—usually of popular athletes—said on Monday it would launch a "Warren Buffett Big Head." The proceeds of the $29.99 decal, which measures 1'7" by 2', go two Detroit charities. "I was flattered, and frankly surprised, that anyone would want to purchase a Big Head with my face on it," Buffett said in a statement.

Oklahoma Girl Breaks Girl Scout Cookie Sales Mark (AP)
Katie Francis of Oklahoma City sold 18,107 boxes in the seven-week sales period that ended Sunday night. The previous mark was set by Elizabeth Brinton, who sold approximately 18,000 one year in the 1980s. The sixth-grade student told The Oklahoman newspaper last month that there were only three ingredients needed to rack up large sales: a lot of time, a lot of commitment and asking everyone she met to buy.

Related

Opening Bell: 02.05.13

Barclays CEO Vows To Improve Bank's Ethics (WSJ) Chief Executive Antony Jenkins said Tuesday he is "shredding" the legacy of the bank's self-serving culture by improving its ethics and moving beyond the misconduct issues that have cost it billions of pounds. Mr. Jenkins told a U.K. parliamentary group that his efforts so far include changing the way employee bonuses are calculated and abolishing commissions on financial-product sales. He said the changes would take time to produce results, but that ultimately he wants to eliminate a culture that at times has been "too short-term focused, too aggressive and on occasions, too self-serving." "Our resolve and intent behind this is absolute," Mr. Jenkins said. McGraw-Hill, S&P Sued by U.S. Over Mortgage-Bond Ratings (Bloomberg) The U.S. Justice Department filed a complaint Monday in federal court in Los Angeles, accusing McGraw-Hill and S&P of mail fraud, wire fraud and financial institutions fraud. Under the Financial Institutions Reform, Recovery and Enforcement Act of 1989, the U.S. seeks civil penalties that can be as high as $1.1 million for each violation. Earlier today, the company’s shares tumbled the most in 25 years when it said it expected the lawsuit, the first federal case against a ratings firm for grades related to the credit crisis. “It’s a new use of this statute,” Claire Hill, a law professor at the University of Minnesota who has written about the ratings firms, said in a phone interview today from Minneapolis. “This is not a line to my knowledge that has been taken before.” Dell Nears $25 Billion Deal To Go Private (WSJ) Late Monday, Mr. Dell was in talks with Microsoft Corp and private-equity firm Silver Lake Partners to offer shareholders between $13.50 and $13.75 a share, said people familiar with the matter, about a 25% premium to Dell's stock price in January before the possibility of a deal became public. The buyout, if approved by shareholders, would be the largest such deal since the financial crisis. It also would be an admission by Mr. Dell that he wasn't able to pull off the changes needed to improve his company's revenue and profit under Wall Street's glare. The buyout would give Mr. Dell the largest stake in the company, ensuring that the 47-year-old is the one who gets to oversee any changes. Gross: Beware 'Credit Supernova' Looming Ahead (CNBC) The head of the Pacific Investment Management bond giant has issued an ominous forecast in which he worries that the global central bank-induced credit bubble "is running out of energy and time." As a result, investors will have to get used to an atmosphere of diminishing returns and portfolios that will hold more hard assets like commodities and fewer less-tangible financial assets like stocks. "Our credit-based financial markets and the economy it supports are levered, fragile and increasingly entropic," Gross said in his February newsletter. Obama to Meet With CEOs of Goldman, Yahoo, Other Firms (Reuters) President Barack Obama will meet with chief executives from 12 companies including Goldman Sachs Group's Lloyd Blankfein and Yahoo's Marissa Mayer on Tuesday to discuss immigration and deficit reduction, according to a White House official. "The president will continue his engagement with outside leaders on a number of issues, including immigration reform and how it fits into his broader economic agenda, and his efforts to achieve balanced deficit reduction," the official said Monday. Other chief executives include Arne Sorenson of Marriott International, Jeff Smisek of United Continental Holdings, and Klaus Kleinfeld of Alcoa. A Billion-Dollar Club And Not So Exclusive (NYT) an unprecedented number of high technology start-ups, easily 25 and possibly exceeding 40, are valued at $1 billion or more. Many employees are quietly getting rich, or at least building a big cushion against a crash, as they sell shares to outside investors. Airbnb, Pinterest, SurveyMonkey and Spotify are among the better-known privately held companies that have reached $1 billion. But many more with less familiar names, including Box, Violin Memory and Zscaler, are selling services to other companies. “A year from now that might be 100,” said Jim Goetz, a partner at Sequoia Capital, a venture capital business. Sequoia counts a dozen such companies in its portfolio. It is part of what he calls “a permanent change” in the way people are building their companies and financers are pushing up values. The owners of these companies say the valuations make them giddy, but also create unease. Once $1 billion was a milestone, now it is also a millstone. Bigger expectations must be managed and greater uncertainty looms. Donald Trump to sue Bill Maher after bet feud (Politico) Donald Trump filed a lawsuit Monday in California against liberal comic Bill Maher, suing him for $5 million after Trump says Maher did not follow through on a $5 million public bet he made on “The Tonight Show.” “I don’t know whether this case will be won or lost, but I felt a major obligation to bring it on behalf of the charities,” Trump said in a public statement first obtained by POLITICO. Last month, Maher said on NBC to Jay Leno that he would pay $5 million to Trump’s charity of choice if he provided a birth certificate proving that he’s not “spawn of his mother having sex with orangutan.” It was similar to an offer Trump made to President Barack Obama during the presidential campaign season, in which Trump wanted Obama to release his college records. Trump’s statement continued: “Bill Maher made an unconditional offer while offer while on The Jay Leno Show and I, without hesitation, accepted his offer and provided him with the appropriate documentation. Money-Market Funds Best By Excess Cash (WSJ) Money-market funds have a high-quality problem: investors are entrusting them with too much cash. The flood of money is prompting the funds, which buy short-term, top-rated debt, to seek higher returns in investments that until recently were seen as too risky, including French bank debt. Investors plowed $149 billion into U.S.-based money-market funds between the start of November and Jan. 30, bringing total assets under management to $2.695 trillion, close to the most since mid-2011, according to the Investment Company Institute. Knight Capital Group to Cut Workforce by 5 Percent (Reuters) Knight Capital, which recently agreed to be bought for $1.4 billion by Getco, will lay off 5 percent of its global workforce as part of efforts to restructure the automated trading firm, according to a regulatory filing released on Monday. FTC Corrects Language On Herbalife (NYP) The Federal Trade Commission yesterday corrected an earlier statement regarding a “law enforcement investigation” into Herbalife. In response to a Freedom of Information Act request by The Post, the FTC said some complaints against the company were withheld because the information was “obtained through a law enforcement investigation.” The agency said yesterday that the language in its letter accompanying the FOIA request was incorrect and it should have said that the exemption from disclosure was related to “foreign sources.” FTC spokesman Frank Dorman defined “foreign sources” as government entities, including law enforcement agencies, and the exemption relates to information-sharing between the FTC and these foreign government agencies. The FTC said that it “may not disclose any material reflecting a consumer complaint obtained from a foreign source if that foreign source has requested confidential information.” The agency said it could not confirm, or deny, an investigation into the nutritional supplements company. Hedge Fund Mogul, Swiss Villagers Clash Over Ski Slopes (Bloomberg) Since hotelier Tobias Zurbriggen can remember, the business of running Saas-Fee has been a local affair. Now, the Swiss ski resort neighboring the Matterhorn is feeling the heat from a New York-based financier. Edmond Offermann, a nuclear scientist turned millionaire working for hedge fund Renaissance Technologies LLC, invested 15 million Swiss francs ($16.4 million) in 2010 to revive Saas- Fee’s struggling ski-lift company. “It’s like a hobby, which completely got out of control,” Offermann, 53, said in an interview from Long Island, New York. He wants to shake things up by managing hotels and the ski-lift operator in one company controlled by a single chief executive. JPMorgan Joins Rental Rush For Wealthy Clients (Bloomberg) The firm’s unit that caters to individuals and families with more than $5 million, put client money in a partnership that bought more than 5,000 single family homes to rent in Florida, Arizona, Nevada and California, said David Lyon, a managing director and investment specialist at J.P. Morgan Private Bank. Investors can expect returns of as much as 8 percent annually from rental incomeas well as part of the profits when the homes are sold, he said. Man Allegedly Tries To Walk Out Of Costco With 24 Quarts Of Oil — Strapped To His Body (CBS) Jorge Sanchez, 35, was spotted about 4:30 p.m. trying to leave a Burbank Costco without paying for the oil. Store employees gave chase and officials said they lost Sanchez after he jumped a fence at the west side of the Costco parking lot. Burbank Police Sgt. Darin Ryburn told CBS2/KCAL9 reporter Andrea Fujii that nine of the 24 quarts were recovered during the foot chase. Authorities said Sanchez walked into the Costco and went straight to the oil aisle. He allegedly grabbed a couple of cases and emptied them. Said Ryburn, “He proceeded to hide the quarts of oil in his pants, socks, and in his shirt.” Sanchez was later apprehended near Beachwood Drive and Monterey Avenue, about eight blocks from the store. Officials said he was arrested on suspicion of burglary charges. Margo Martin was a witness to the apprehension. “All of a sudden, I hear ‘Get down on the ground’ and there is this man laying in our driveway.” Witnesses thought the man was running funny and weren’t sure why. Witness Manuel Atlas said, “He looked kind of heavy and out of shape.” Police said Sanchez was also running funny because he still had 15 quarts of oil strapped to him. Police said he used a bungee cord to strap the bottles down.

Opening Bell: 5.27.16

Judge tells accused Libor manipulator to STFU; Short sellers circle Alibaba; Man proposes to girlfriend using custom Mario level; and more.

Opening Bell: 05.09.12

Greek Turmoil Raises Euro Risk (WSJ) "The market is really working out what the risks are," said Justin Knight of UBS. "It is a bit of a slow burner, but it is gathering pace." Whether investors are right depends on a messy drama under way in Athens, in which the leading parties have been sidelined in favor of a collection of radicals bent on upsetting the painful measures that are Europe's price for Greece's bailout. On Tuesday, the head of Greece's leading left-wing party, Alexis Tsipras of Syriza, took a turn at trying to form a government. His conservative counterpart, whose party won slightly more votes on Sunday, tried and failed Monday. Mr. Tsipras demanded that Greece renounce the bailout's required Greek budget cuts, saying they were nullified by the "people's verdict" of the election. But Mr. Tsipras's party won just 52 of the 300 seats in parliament, and chances he could form a governing coalition appeared slim. Roubini: Situation In Europe Is A 'Slow Motion Trainwreck' (CNBC) Roubini, who warned last year that a perfect storm was coming for the global economy in 2013, said the euro zone will “eventually break up,” and expects two or three euro zone members to exit the bloc over the next few years. “Europe will be lucky if it ends up in stagnation like Japan for the next 10 years,” he added. German Patience With Greece on the Euro Wears Thin (NYT) “Germans are now predominantly of the opinion that they would be better off if Greece left the euro zone,” said Carsten Hefeker, a professor of economics and an expert on the euro at the University of Siegen. “If the country really is continuing on the path they are taking now, it would be hard to justify keeping them in. How do you deal with a country that says we don’t want to keep any of the commitments we have made?” Chesapeake CEO arranged new $450 million loan from financier (Reuters) In the weeks before Chesapeake Energy CEO Aubrey McClendon was stripped of his chairmanship over his personal financial dealings, he arranged an additional $450 million loan from a longtime backer, according to a person familiar with the transaction. That loan, previously undisclosed, was made by investment-management firm EIG Global Energy Partners, which was at the same time helping arrange a major $1.25 billion round of financing for Chesapeake itself. The new loan brings the energy executive's total financing from EIG since 2010 to $1.33 billion and his current balance due to $1.1 billion, this person said. It was secured by McClendon's personal stakes in wells that have yet to be drilled by Chesapeake - and by his own life-insurance policy. Remaking Yahoo's Board, Again (WSJ) "Mr. Loeb has launched a proxy fight to put himself and three other new directors onto the board. It isn't clear the Loeb team can fix the company. But at this point, shareholders should vote for his slate, given the repeated lapses in judgment by existing company leadership." Hot Dog Hooker ‘relishes’ her return (NYP) Long Island’s Hot Dog Hooker was sprung from jail yesterday, and said she’ll be serving up Sabretts and stripteases from her mobile wiener wagon this morning. “I’ll be out there in my bikini top selling my hot dogs!” Catherine Scalia boasted as she strutted out of a Nassau County jail after a court appearance. Scalia was busted for prostitution last Friday for allegedly agreeing to pleasure an undercover cop for $50 after he purchased a hot dog. Judge Anthony Paradiso sentenced Scalia to seven days in prison and ordered her to undergo a psychiatric evaluation. Green Mountain Roasted (Bloomberg) Green Mountain Coffee Roasters said Robert P. Stiller will no longer serve as chairman after he sold shares to make a margin call. Michael J. Mardy, chairman of the company’s audit and finance committee, will serve as interim chairman. Fannie Mae Won’t Seek Aid After Reporting $2.7 Billion Profit (Bloomberg) FYI. Wells Fargo Says DOJ May Seek Penalties in Fair-Lending Case (SFG) Wells Fargo & Co., the largest U.S. mortgage lender, said federal prosecutors may seek damages and penalties after investigating whether it violated anti- discrimination laws while financing homeowners. “The Department of Justice has advised Wells Fargo that it believes it can bring claims,” the bank said today in a regulatory filing, without elaborating on potential allegations. “We believe such claims should not be brought and continue seeking to demonstrate to the Department of Justice our compliance with fair-lending laws.” U.S. Millionaires Told Go Away as Tax Evasion Rule Looms (Bloomberg) The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.

Opening Bell: 09.12.12

German court seen okaying EU bailout fund, strings attached (Reuters) Germany's Constitutional Court is expected to give its approval on Wednesday to the euro zone's new bailout fund while insisting on guarantees to safeguard German parliamentary sovereignty and limit Berlin's financial exposure. Exchanges Plot Fixes For Their Glitches (WSJ) One proposal under discussion involves implementing so-called "kill switches" between brokers and exchanges, according to people involved in the discussions. Kill switches, which are common in futures trading but not in the U.S. stock market, allow exchanges to automatically shut off customers from trading once they hit a preset limit, such as one based on the total dollar amount of the firm's trades in a set time frame. Moody's Warns On US Rating (WSJ) Moody's Investors Service, in the latest reminder of the tense fiscal negotiations looming for Congress and the White House, said it could downgrade the U.S. government's credit rating next year if steps aren't taken to tackle the rising debt. Specifically, it said if Congress repeals looming spending cuts and tax increases set to begin next year and doesn't replace them with large-scale deficit-reduction measures, the government would lose its top-notch rating. Deutsche Bank Overhaul Leaves Firm Trailing Peers on Capital (Bloomberg) Deutsche Bank plans to boost core tier 1 capital to at least 8 percent of assets weighted by risk under Basel III rules by the end of March 2013, and to more than 10 percent two years later, co-CEOs Anshu Jain and Juergen Fitschen said in Frankfurt yesterday. Its biggest competitors will reach similar levels months or years sooner, based on forecasts from the banks. Deutsche Bank is winding down assets deemed among its riskiest under rules devised to prevent a repeat of the bank rescues that followed the 2008 collapse of Lehman Brothers Holdings Inc. Jain said yesterday that while capital concerns have had an effect on the stock, tapping shareholders would be “irresponsible” without pursuing other options first. Pittsburgh professor who invented emoticons hates the little yellow icons they have become (Independent via BB) To some, an email isn't complete without the inclusion of :-) or :-(. To others, the very idea of using "emoticons" – communicative graphics – makes the blood boil and represents all that has gone wrong with the English language. Regardless of your view, as emoticons celebrate their 30th anniversary this month, it is accepted that they are here stay. Their birth can be traced to the precise minute: 11:44am on 19 September 1982. At that moment, Professor Scott Fahlman, of Carnegie Mellon University in Pittsburgh, sent an email on an online electronic bulletin board that included the first use of the sideways smiley face: "I propose the following character sequence for joke markers: :-) Read it sideways." This weekend, the professor, a computer science researcher who still works at the university, says he is amazed his smiley face took off: "This was a little bit of silliness that I tossed into a discussion about physics," he says. "It was ten minutes of my life. I expected my note might amuse a few of my friends, and that would be the end of it." But once his initial email had been sent, it wasn't long before it spread to other universities and research labs via the primitive computer networks of the day. Within months, it had gone global. Nowadays dozens of variations are available, mainly as little yellow, computer graphics. There are emoticons that wear sunglasses; some cry, while others don Santa hats. But Professor Fahlman isn't a fan. "I think they are ugly, and they ruin the challenge of trying to come up with a clever way to express emotions using standard keyboard characters. But perhaps that's just because I invented the other kind." Peregrine CEO Enters Plea Deal (WSJ) Under the agreement, Russell Wasendorf Sr. would plead guilty to charges of embezzlement and mail fraud alongside two counts of lying to government regulators, assistant U.S. attorneys said in a Cedar Rapids, Iowa, court Tuesday. The development comes more than two months after Mr. Wasendorf, founder of Peregrine and a business leader in his adopted hometown of Cedar Falls, attempted suicide outside his firm's headquarters, leaving behind what authorities called a confession detailing a yearslong scheme to defraud his investors. Facebook Taking Steps to Address Mistakes in Mobile Products (Bloomberg) “Now we are a mobile company,” Zuckerberg said in an on- stage interview at the TechCrunch Disrupt conference in San Francisco today. “Over the next three to five years I think the biggest question that is on everyone’s minds, that will determine our performance over that period, is really how well we do with mobile.” Zuckerberg, who appeared at ease while trading laughs with his interviewer, for the first time elaborated on technical struggles that have impeded Facebook from creating a user- and advertiser-friendly mobile application. The company spent too long trying to build mobile products using a programming language known as HTML5, Zuckerberg said. Navistar vs. Icahn gets ugly in Illinois (NYP) Embattled truck and diesel engine maker Navistar International yesterday poured gasoline on the fire ignited Sunday when billionaire investor Carl Icahn called the company’s board a “poster child for abysmal business decisions and poor corporate governance.” Less than a day after the billionaire investor blasted the Warrenville, Ill., company for not consulting shareholders on its new CEO hire, Navistar dismissed his complaints as “unproductive tactics of threats, attacks and disruption.” Legg Mason CEO To Step Down (WSJ) Facing pressure from activist investor Nelson Peltz's Trian Fund Management LP and battling investor outflows, Legg Mason Inc. said Chairman and Chief Executive Mark Fetting will step down Oct. 1. The Baltimore-based money manager faces a Nov. 30 deadline after which Trian, Legg Mason's largest shareholder, will be free to raise its 10.5% stake in the firm, potentially giving Mr. Peltz more influence. Man Shot Uncle To Death Over Pork Steaks (STLT) The shooting stemmed from an argument between Lowe and Cunningham over whether the cuts of meat they were planning to cook were pork steaks or pork chops, police say. Cunningham said they were pork steaks, police said. Lowe disagreed. After the argument became physical about 1 a.m. Monday, the two had to be separated by someone else in the home, police say. Cunningham went to another part of the home, grabbed a shotgun and shot Lowe, police said. Lowe died later at Barnes-Jewish Hospital. Cunningham, who was correct about the meat, was taken into custody.

Opening Bell: 06.25.12

Soros Pushes EU To Start Joint Debt Fund Or Risk Summit Fiasco (Bloomberg) “There is a disagreement on the fiscal side,” Soros, 81, said in an interview with Bloomberg Television’s Francine Lacqua at his home in London. “Unless that is resolved in the next three days, then I am afraid the summit could turn out to be a fiasco. That could actually be fatal.” Greece Seen Blocked From Debt Markets Until 2017 (Bloomberg) “The challenges facing Greece remain extremely large,” said Jamie Searle, a fixed-income strategist at Citigroup Inc. in London. “It will be a long while before they can get back to the market.” Spain Asks For Help (WSJ) The Spanish government has made its formal request for European Union aid to help finance the cleanup of its ailing banking industry, the finance ministry said in a statement Monday. Nasdaq: 'Arrogance' Contributed To IPO Flop (WSJ) Chief Executive Robert Greifeld said Sunday that "arrogance" and "overconfidence" among Nasdaq staffers contributed to problems with Facebook's initial public offering last month. Addressing a conference of corporate directors at Stanford University's Law School, Mr. Greifeld said Nasdaq had tested its systems extensively before the May 18 IPO, simulating higher trading volumes than actually occurred. But he said Nasdaq was unprepared for increasing numbers of canceled orders in the hours leading up to Facebook's debut. S&P's Method's Under SEC's Lens (WSJ) The scrutiny relates to S&P's decision in July 2011 to pull its ratings on a new $1.5 billion commercial-mortgage-backed security, or CMBS, issued by Goldman Sachs and Citigroup The unusual step sent the commercial mortgage securities market into turmoil and scuttled the deal for weeks, angering investors and issuers. The SEC's inquiry is part of its annual review of S&P and other credit-rating firms. But in S&P's case regulators are looking at whether it used more lenient standards to rate new CMBS than it used on outstanding deals, the current and former employees say. JPMorgan Unit Shifts Operations (WSJ) The CIO, which is charged with investing a portfolio valued at $370 billion, equivalent to about 17% of J.P. Morgan's $2.2 trillion in assets, will avoid trying to protect the bank using infrequently traded derivatives, according to people close to the matter. The CIO unit also will avoid private-equity investments. But those changes will be driven by a judgment that certain losing strategies were poorly conceived and hedged, not by a decision to foreclose investment options. CNBC'S Guy Adami Takes On The Ironman Triathlon (NYT) But he says none of those experiences compare with the rush he felt on a sun-dappled Sunday morning in late May in Red Bank, N.J., when he crossed the finish line of his first triathlon. It was at a so-called sprint distance — a half-mile swim, followed by a 13-mile bike ride and then a 3.2-mile run — which Mr. Adami, 48, completed in just under two hours, finishing 116th in a field of 160. Just signing up for that race was no small accomplishment for Mr. Adami, who, not six months earlier, had been leading the sedentary existence of a trader and carrying a flabby 235 pounds on his 6-foot-3 frame. But as a volunteer placed a medal around his neck, Mr. Adami had little time to celebrate. A far more daunting challenge loomed: on Aug. 11, he will join nearly 3,000 other weekendwarriors as they seek to endure, and complete, the first Ironman-distance triathlon to be staged in the New York metropolitan region. To put the magnitude of that 140.6-mile race in perspective, consider this. It will begin at 7 a.m. with a 2.4-mile swim in the Hudson River — the open-water equivalent of about 170 lengths in a 25-yard swimming pool, or nearly five times the distance Mr. Adami completed in that New Jersey sprint. Those participants who manage to complete that swim in 2 hours 20 minutes or less will move on to the bicycle portion — 112 miles in two loops along the deceptively hilly Palisades Interstate Parkway, or the rough equivalent of pedaling from Manhattan to Hartford. Riders who finish the bike ride before 5:30 p.m. — or 10 ½ hours after their odyssey begins — will embark on a 26.2-mile marathon, which will begin in Palisades Interstate Park on the New Jersey side of the Hudson and continue for several loops before concluding with a brisk run (or perhaps a staggering walk, which the rules permit) across the George Washington Bridge and into Riverside Park on the West Side of Manhattan. IPO Market Gets First Post-Facebook Test (WSJ) In the dry spell since the disappointing May 18 debut of the social-network company, plenty of IPOs have been pulled. And for a time it appeared there would be no attempt to test the waters in June. But a quartet of offerings is lined up for the final week of the month: cloud-based computer-services provider ServiceNow Inc., energy partnership EQT Midstream Partners LP; software firm Exa Corp., and biopharmaceutical firm Tesaro Inc. Judge likens Goldman logic to Orwell’s ‘1984’ (NYP) A federal judge blasted Goldman Sachs for its “Orwellian” defense against a lawsuit accusing it of misleading investors in the sale of risky securities, comparing the firm’s logic to the George Orwell classic “Nineteen Eighty-Four.” “Words such as ‘honesty,’ ‘integrity,’ and ‘fair dealing’ apparently do not mean what they say,” Manhattan federal court Judge Paul Crotty said in a 27-page opinion allowing the shareholder suit to proceed against the bank. The harsh words from Crotty relate to allegations that Goldman concealed conflicts of interest in several CDO transactions that were part of the subprime meltdown. $400M+ Tab For Madoff Swindler Ezra Merkin (NYP) The agreement will allow some of Merkin’s clients to recover as much as 40 percent of what they lost, with investors who had been kept in the dark recovering the most. Basel Bank Official Warns On Stimulus Measures (WSJ) Central banks currently find themselves "caught in the middle," Jaime Caruana said, "forced to be the policy makers of last resort." They are providing monetary stimulus on a "massive scale," supplying liquidity to banks unable to fund themselves in markets and easing government financing burdens by keeping interest rates low, said Mr. Caruana, speaking in Basel, Switzerland, at the annual general meeting of the BIS, a consortium of the world's central banks. "These emergency measures could have undesirable side effects if continued for too long," he said. "A worry is that monetary policy would be pressured to do still more because not enough action has been taken in other areas." Rare giant tortoise Lonesome George dies in Galapagos Islands (NYDN) The giant tortoise named Lonesome George — the last of the Pinta Island subspecies and an enduring icon of the Galapagos — died Sunday, the Galapagos National Park said in a statement. George, who was discovered in 1972 in the islands that inspired Charles Darwin’s ideas of evolution, was about 100 years old. Galapagos tortoises have been known to live for 200 years. “This morning the park ranger in charge of looking after the tortoises found Lonesome George, his body was motionless,” park director Edwin Naula told Reuters. “His life cycle came to an end.” Since 1993, various mates had been provided for Lonesome George in failed attempts to keep his subspecies alive. Two females of a different subspecies managed to lay eggs, but they were infertile. George was actually named after American actor George Gobel, a TV star of the 1950s, who called himself “Lonesome George.”