Alibaba Begins Wooing Wall Street (Dealbook)
The day formally began at 6 a.m., when Alibaba executives met with the combined sales teams from its six lead underwriters for a teach-in. Held at Citigroup’s investment banking headquarters in downtown Manhattan, the discussion focused on teaching the sales staff about the company and how to best pitch it to potential investors. But the highlight was the lunch presentation, held on the 18th floor of the Waldorf-Astoria in Midtown Manhattan. Starting midmorning, investors lined up for a half-hour or more simply to take the elevator up to the registration desk. At least one potential buyer criticized the setup — completed last week when company executives finally selected the location — which left a long line of people snaking across the cavernous Waldorf lobby and out the door.
Facebook’s Value Tops $200 Billion on Mobile-Ad OptimismFacebook shares rose 0.8 percent to $77.89 at yesterday’s close in New York, valuing the company at $201.6 billion, according to data compiled by Bloomberg. That made it the 22nd-largest company in the world, behind Verizon Communications Inc. and ahead of Toyota Motor Corp.
S&P Faces Squeeze After $1.3 Billion Countrywide Fine (Bloomberg)
Standard & Poor’s (MHFI)’ chances of settling the government’s lawsuit over mortgage-bond ratings for less than $1 billion may have slipped away after Bank of America Corp.’s Countrywide unit was socked with a $1.3 billion fine. The Countrywide ruling was the first to lay out what penalties financial institutions could face under a 1989 bank-fraud law the Obama administration is using against alleged culprits of the subprime mortgage crisis. It has boosted the government’s hand against McGraw Hill Financial Inc.’s S&P, said Peter Henning, a law professor at Wayne State University. “If the starting negotiation point for the Justice Department to settle was $1 billion before, that number has just gone up,” Henning said in a phone interview.
Dave & Buster's Files for IPO (WSJ)
Dave & Buster's Entertainment Inc., the arcade and restaurant chain that received buyout interest earlier this year, has filed for an initial public offering. Dave & Buster's will use proceeds to repay term-loan debt. The Wall Street Journal reported in May that the company, owned by Oak Hill Capital Partners, received an offer worth nearly $1.1 billion from Roark Capital Group. The Journal reported that an IPO launch after Labor Day was also possible. Wellspring Capital Management took the company private in 2006 and sold it to Oak Hill in 2010. A previous IPO plan was called off in late 2012 due to market conditions. Moody's Investors Service upgraded Dave & Buster's in July, noting improved operating performance and higher earnings, and same-store sales growth that outpaced peers. Jefferies and Piper Jaffray are joint book-running managers. Dave & Buster's plans to raise up to $100 million, but that is a placeholder amount used in deciding registration fees and will likely change.
Jimmy Choo Said Near IPO to Value Shoemaker at $1 Billion (Bloomberg)
Jimmy Choo, the luxury shoemaker owned by JAB Holdings, may begin its initial public offering in London as soon as this month amid rising demand for expensive footwear, according to people with knowledge of the situation. JAB could announce plans to sell a 25 percent stake in the maker of $1,995 Lust peep-toe sandals, said the people, who asked not to be identified because the matter is confidential. The company has hired Bank of America Corp (BAC). to manage the sale and is seeking a valuation of about $1 billion, the people said. HSBC Holdings Plc has also been hired, one of the people said. No final decision has been made and JAB may decide not to proceed with an IPO, they said.
Wall St investor who hoarded designer clothes in a filthy two-bedroom... (DM)
A Wall Street investor who hoarded designer clothes and expensive silverware in his disheveled rent-controlled upper east side apartment left behind a massive $18 million fortune when he died last year. But his widow of 10 years says she still can't find the documents that detail the fortune's whereabouts because they're buried under piles of paperwork and boxes. Lewis David Zagor, who died in December at the age of 77, made millions on Wall Street investing in cash and mutual funds but chose to live modestly in a relatively small, two-bedroom, rent-stabilized apartment on Park Avenue and 96th Street East, for which he paid $1,641 a month...While he saved on flat expenses, Zagor spent the sizable dividend checks he received from his investments going on shopping sprees at Saks Fifth Avenue and traveling around the globe, according to DNAinfo New York. 'You have no idea the amount of wealth that is in the apartment,' Valentina Phillips-Zagor, his third wife who was with him for the last 10 years of his life, told the website. 'The most important are the financial documents.'
Federal Reserve Signals Intent to Pressure Largest Banks to Slim Down (Dealbook)
Daniel K. Tarullo, the Fed governor who oversees regulatory policies, signaled the central bank’s intent in testimony that he is scheduled to give before the Senate Banking Committee on Tuesday. In particular, Mr. Tarullo said that the Fed would propose special capital requirements for the largest banks that will be even higher than those demanded under international banking regulations. “We intend to improve the resiliency of these firms,” Mr. Tarullo said. “This measure might also create incentives for them to reduce their systemic footprint and risk profile.” The speech sets out to update Congress on how much progress regulators have made with the Dodd-Frank Act, which was passed in 2010 to overhaul the financial system. The part of his remarks that could unsettle large Wall Street firms has to do with capital. When regulators increase capital requirements, it forces banks to borrow less money to finance their lending and trading. The theory is that banks that rely less on borrowing are more stable because they are getting more of their financing from shareholder funds, which do not have to be repaid at short notice when turbulence hits.
Inversions Require Congressional Action, Lew Says (WSJ)
Treasury Secretary Jacob Lew urged lawmakers of both parties to pass anti-inversion legislation, warning that many more U.S. companies across a range of industries plan to relocate their headquarters overseas to reduce their taxes. Mr. Lew also reiterated that the Obama administration is weighing regulatory action to limit the economic appeal of inversions if lawmakers don't reach an agreement. Mr. Lew promised a Treasury decision on regulatory steps in the "very near future" but warned that such action "will not be a substitute for meaningful legislation—it can only address part of the economics." "It is imperative that lawmakers get this done," Mr. Lew said in a speech Monday at a Washington think tank.
Morgan Stanley to pay $95 million in U.S. mortgage-debt settlement (Reuters)
Morgan Stanley has agreed to pay $95 million to resolve a lawsuit accusing the Wall Street bank of misleading investors in mortgage-backed securities in the run up to the 2008 financial crisis. The settlement, disclosed in court papers filed Monday in New York federal court, follows years of litigation by investors over allegedly false and misleading statements over the soured securities. The deal stemmed from a lawsuit pursued by the Public Employees' Retirement System of Mississippi (MissPERS) and the West Virginia Investment Management Board. The plaintiffs accused Morgan Stanley of violating U.S. securities law in packaging and selling mortgage backed securities in 13 offerings in 2006 and 16 offerings in 2007.
Durex denies rumors of a ‘pumpkin spice’ flavored condom (NYDN)
The arousal over a purported pumpkin spice-flavored condom made its rounds on the Internet over the weekend, but Durex confirmed that the autumnal-themed birth control product wasn't real. “Durex has heard that people are saying we launched a ‘Pumpkin Spice’ condom. We can’t claim this one, but we do love it when people spice up the bedroom,” a Durex spokesperson told BuzzFeed. Pumpkin spice finds its way into everything — coffee, cupcakes and candles — so it was no surprise that social media was abuzz when the fake photo was released. One user tweeted, "Because safe sex is important, no matter what season it is." The photo appears to be an altered image of Durex's flavored "Taste Me" selection of condoms, which come in apple, banana, strawberry and orange.