Opening Bell: 10.30.14

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The show must go on.

$1.5 Million Sent in Error to Money Manager (Both Are Missing) (Dealbook)
Credit Suisse says it wired a total of $1.5 million in three transactions to the hedge fund’s bank account on one day in January. Two weeks later, according to its lawsuit, the bank realized it had made a mistake: At the time of the wire transfers, the hedge fund, Galbraith Capital Investment Management, was winding down operations and it had no cash left in its account with Credit Suisse. The bank asked for its money back. It is still waiting. The bank sued Galbraith Capital and its manager, Joseph B. Galbraith, seeking to recover the money. Credit Suisse filed a motion in a New York State court in August seeking a default judgment against Mr. Galbraith and the hedge fund. At a hearing this month, a New York State judge orally granted a judgment against the hedge fund but not against Mr. Galbraith, a person briefed on the matter said. Mr. Galbraith has yet to file a legal response in the case or be personally served with court papers. So now Credit Suisse is left to play a different game: Where in the world is Joseph B. Galbraith? People who know Mr. Galbraith, 42, who renounced his United States citizenship in 2011, say they think he is living with his second wife in Europe, possibly in Monaco. Reached by a reporter recently via email, Mr. Galbraith said he had not been aware of the Credit Suisse lawsuit. In an email, he said the accusations against him were “ridiculous, bordering on laughable” and part of an effort to malign and slander his character.

Investor Activism, Already Robust, Expected to Rise in Next Year (Dealbook)
...virtually all the senior corporate executives and activist hedge fund managers surveyed by the law firm Schulte Roth & Zabel and the data provider Mergermarket said they believed that activism would rise over the next 12 months. More than half said the increase would be “substantial.” The results, to be released at an activism conference hosted by Schulte Roth on Wednesday, signal the undiminished confidence in the power of outspoken dissident investors. Over the last year alone, activist shareholders have prompted management changes at Darden Restaurants, helped spur breakups at a slew of companies, and gained seats on numerous corporate boards. Recent data suggests that the success of activism campaigns has more than doubled over the last decade, to more than 70 percent.

Bad Bets Rock Fortress’s Macro Fund (WSJ)
The $3 billion Fortress Macro Fund, which Mr. Novogratz launched in 2002, has lost more than 9% so far this year, with half of that drop coming this month. It is the latest setback for macro funds, which seek to anticipate global economic shifts in various markets. The Fortress loss is worse than most others and stands out following years of market-beating performance. The culprit? A series of bad bets against U.S. government bonds and the Japanese yen, along with a wrong-way wager on Brazil, investors say.

Pimco Brings Back Two Former Executives (WSJ, earlier)
The food truck, called Monsieur Madame, according to its Facebook page, will continue operating, according to a person familiar with the matter.

Barclays bribed Saudi royalty: lawsuit (NYP)
Barclays bribed a member of the Saudi royal family and ignored a defaulted lease payment from the country in order to secure a rare banking license inside Saudi Arabia, a lawsuit against the bank alleges. The giant UK bank should have gone after the lease payment but chose not to because it didn’t want to anger the government and risk losing the lucrative business, according to the lawsuit, filed by a Saudi real estate company in Manhattan state court. “Barclays knew that any such license would be extremely lucrative and that its litigations against the Saudi government made obtaining such a license impossible,” according to the suit. The real estate company, Jadawel International, also claims Barclays paid millions in a “thinly disguised bribe” to a company owned by a Saudi prince for advisory services. Barclays strongly denied the accusations.

Suspected meth dealer turned in by own dog while hiding behind Alabama home: police (NYDN)
The suspected meth head managed to run out the backdoor and down a 25-foot ravine where officers temporarily managed to lose him. It was at that moment they were greeted by Henderson's pit bull-husky mix who came out of the woods where Henderson had fled. "The dog, later identified as Bo, looked at one of the investigators and the investigator pointed at Henderson and said go get him. Bo without hesitation went down the ravine trailed by two Drug Enforcement Investigators," the police department said in a release. While the two investigators weren't immediately successful, Bo apparently was. Upon exiting the brush Bo tipped them off to some tall grass he was now hiding in, all by the swoosh of his tail. There with him they found Henderson lying flat on the ground. "Bo was rewarded with dog biscuits from our K-9 Sergeant," the Prattville Police Department said.

Goldman at odds with rivals over Alibaba (FT)
Goldman Sachs is at odds with its fellow Alibaba advisers after it awarded a “neutral” rating to the Chinese ecommerce group’s shares with a price target well below those of the other banks most closely involved in the initial public offering last month. The six banks who led Alibaba’s $25bn flotation published research on Wednesday after observing the research blackout that follows a new listing. Price targets for the shares over the next 12 months ranged between $102 from Goldman to $118 from Citigroup...Alibaba’s other lead advisers – JPMorgan, Deutsche Bank, Citi, Morgan Stanley and Credit Suisse – all rated the company a “buy” or “overweight” with price targets of $112 (two of them), $118, $111 and $114 respectively.

Harassed consumer scores $22.5K from Dish Network (NYP)
In a move that will bring a smile to every person who has had a frustrating run-in with a TV provider, Dish Network has been ordered by a federal judge to pay $22,500 to a West Virginia man after it made 31 calls to his cell phone to pestering him to pay an overdue bill. It turns out the man, Chester Moore, was never a Dish customer and didn’t owe the Charlie Ergen-controlled satellite-TV outfit a dime. Plus, Moore had alerted a Dish representative on two occasions of the screw-up. On both occasions, Dish’s reps assured Moore the calls would stop. But the calls — made by an automatic telephone dialing system (ATDS) — kept coming. It seems the former Dish customer the company was after had the same cell number as Moore.

Blackstone Group is the Barclays Center’s white knight (NYP)
Schwarzman is buying up old team and arena loans. Also, he is considering helping the Barclays Center rework its $511 million in Pilot (payment in lieu of taxes) bonds, enabling Barclays to lower an almost 7 percent interest rate on the bonds. “Blackstone has been approached and is analyzing it,” a source said. Goldman Sachs, which issued the Pilot bonds, is working on the arena’s behalf, sources said. Meanwhile, Blackstone in recent weeks through its GSO arm refinanced $60 million of Brooklyn Nets debt. That piece of the team’s $210 million loan was coming due, and Blackstone had the most enticing offer, sources said. The Nets — likely worth nearly $2 billion but posting $144 million in losses last year — are likely paying about 7.5 percent, a source said. Blackstone, too, has lent the Brooklyn Nets new Sunset Park practice facility $50 million, a source said.

Florida woman busted with 6 ounces of cocaine inside her vagina: cops (NYDN)
A 26-year-old Florida woman flying in from Jamaica was busted with six ounces of cocaine she’d hidden in her vagina, according to authorities. KathyAnn Ferguson was likely working as a “drug mule, for lack of a better term,” a judge said at her court appearance Monday, the South Florida Sun Sentinel reported. Ferguson arrived in Florida on a JetBlue plane like this one that left from Montego Bay, Jamaica. The Hollywood, Fla., woman arrived on a JetBlue flight from Montego Bay, Jamaica, to the Fort Lauderdale-Hollywood International Airport on Sunday afternoon and was pulled aside for a secondary search, according to an arrest affidavit obtained by the newspaper. At that point she admitted she had a package of coke stuffed inside her privates. After her arrest, Ferguson voluntarily pulled some 175 grams, or about six ounces, of the drug from her vagina, the Sun Sentinel reported.

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Opening Bell: 04.27.12

LightSquared Lenders Pressure Falcone (WSJ) If Mr. Falcone doesn't agree to eventually leave LightSquared's board and make way for new executives and directors at the wireless communications firm, lenders are likely to balk and the company could end up filing for bankruptcy protection, they said. Shareholders Rebuke Barclays, Credit Suisse on Pay (Reuters) More than a quarter of Barclays shareholders look set to vote against the British bank's controversial pay plan for bosses and Credit Suisse is also facing a backlash as investors seek a greater share of profits. Stormy annual shareholder meetings at both banks got underway on Friday with many attendees complaining executives are getting too big a slice of bank income at their expense...Barclays Chairman Marcus Agius apologized for badly communicating the bank's pay strategy and promised to "materially" increase the dividend shareholders receive, helping to lift the bank's shares more than 4 percent. But he was heckled during his speech to a packed hall of about 2,000 shareholders and his comments about pay were greeted with laughter in some quarters. Renowned short-seller bets against Fortescue (SMH) Hedge fund short-seller Jim Chanos has singled out Fortescue Metals as a "value trap" stock, telling a New York conference that shares in billionaire Andrew Forrest's company will fall "materially." In a presentation this month to Grant's Spring Conference, a private investment forum, Mr Chanos, the boss of Kynikos Associates, told investors he feared iron ore miner Fortescue has "a somewhat promotional management team." Goldman Banker Probed For Alleged Leaks To Galleon (WSJ) U.S. prosecutors and securities regulators are investigating whether a senior Goldman investment banker gave Galleon hedge-fund traders advance word of pending health-care deals, according to people familiar with the matter. The banker, whom the people identified as Matthew Korenberg, is a San Francisco-based managing director for Goldman, a senior post. Among the merger deals being scrutinized by Los Angeles federal prosecutors and the Securities and Exchange Commission is the 2009 acquisition by Abbott Laboratories of Advanced Medical Optics, a Santa Ana, Calif., medical-device maker—a deal in which Mr. Korenberg advised Advanced Medical Optics, the people say. Another is the acquisition of APP Pharmaceuticals Inc. by Fresenius, announced in July 2008, in which Goldman advised APP, they say. Unlikely Allies (NYP) Billionaire hedge-fund mogul and Republican stalwart Paul Singer is in an odd position of late — asking the Obama administration for help to keep troubled mortgage lender ResCap out of bankruptcy. Singer, whose Elliott Associates owns debt in the mortgage lender, a unit of Ally Financial, asked Treasury Secretary Tim Geithner in recent weeks to use the government’s 74-percent stake in Ally to press for an alternative financial cure. An out-of-bankruptcy solution would help Elliott, to be sure, but would also assist the White House by keeping a unit of one of its high-profit bailouts from outright failure. But Singer, so far, hasn’t gotten any satisfaction. Geithner, insiders said, doesn’t want to use Treasury’s muscle to stop the likely Chapter 11 filing because it could be interpreted as the government overstepping its bounds. Spain Urges Focus On Reforms After Downgrade (WSJ) The government has embarked on a plan of far-reaching reforms to overhaul the economy, including new labor laws and a cleanup of the banking sector. Mr. Jiménez Latorre said these reforms will pay dividends in the medium- to long-term. The S&P ratings action "just focuses on the immediate effects," which won't be positive, Mr. Jiménez Latorre said. Dream Stenographer / Lucid Dreaming Partner (Craigslist) "I possess the wonderful gift of regularly occuring and incredibly vivid lucid dreams. In these dreams I have written Pulitzer Prize winning novels, bioengineered the cure for HIV, and brokered a lasting Israeli-Palestinian peace agreement. I have also composed Grammy winning albums. The only problem is humanity hasn't and can't benefit from my accomplishments because I forget how I achieved them shortly after waking. As a modern Renaissance man and philosopher scientist, my conscience cannot be at peace knowing I'm not doing everything possible to save my fellow human beings. Therefore I would like to a hire a dream stenographer to write down my ideas so that I may share them with the world. You, the dream stenographer, will sleep within arm's reach of me on selected nights when I feel my mind is operating at its peak performance level. Sleeping is mandatory as I'm not able to reach my optimum dream state when someone is watching me sleep. Remaining within arm's reach at all times is also mandatory so that I may wake you as quickly as possible to begin recording my stream of consciousness.Qualified applicants will be excellent note takers with unrivaled penmanship." KKR Earnings Beat Expectations (WSJ) Economic net income, a measure of private-equity firms' profitability that analysts follow because it includes both realized and unrealized investment gains, was $727.2 million, or 99 cents a share, compared to $742.5 million, or 96 cents a share, in the year-earlier period. The earnings came in at the top end of analysts' estimates, with a consensus economic net income of $486.6 million, or 74 cents a share, according to Thompson Reuters. NYSE CEO 'very disappointed' to lose out on Facebook listing (DJ) Just so you know. Wells Fargo to Buy Merlin Securities Prime Brokerage (Bloomberg) The purchase is Wells Fargo’s first foray into prime brokerage services and the bank will use the business as a foundation to expand, said Christopher Bartlett, head of equity sales and trading at the San Francisco-based lender. Prime- brokerage includes services such as lending, clearing trades and record-keeping that help hedge fund managers run their firms. Bartlett wouldn’t say how much Wells Fargo paid and a statement set to be released later today didn’t disclose the terms. Bo Xilai's Son Ticketed in Porsche (WSJ) Disputing a notion common in China that he lives a lavish lifestyle, Mr. Bo wrote to the Harvard Crimson on Tuesday saying he wished to address "rumors and allegations about myself." Among other things, "I have never driven a Ferrari," he wrote. The Wall Street Journal reported in November, based on people familiar with the episode, that Mr. Bo, the grandson of an illustrious Communist leader of the Mao era, arrived at the U.S. ambassador's residence in Beijing in a red Ferrari last year to pick up the daughter of the then-ambassador...Massachusetts Department of Transportation records show Mr. Bo was stopped by police for allegedly running stop signs in December 2010 and May 2011, one of them at 2:20 a.m., and for speeding in February 2011. The license plate of the car, which the Journal learned from someone familiar with the matter, showed it was a black 2011 Porsche Panamera registered to someone at his address.

Opening Bell: 6.6.16

Saudi central bank bans use of options against riyal; June rate hike "almost surely off the table"; Murder victim’s parents say parrot witnessed crime; and more.

Opening Bell: 04.24.13

Credit Suisse Profit Rises (WSJ) Zurich-based Credit Suisse said its bottom line was flattered by a favorable comparison with last year's result, when an accounting charge weighed on performance. Revenue at the bank rose 19% following several quarters of reported declines. The report from Switzerland's second-largest bank comes amid a cost-cutting program started in 2011 that has it eliminating thousands of jobs. The program has resulted in 2.5 billion Swiss francs ($2.6 billion) in savings, and is on track to cut costs by 4.4 billion francs by the end of 2015, the bank said. Credit Suisse said its number of full-time employees fell to 46,900 in the first quarter, from 48,700 in the same period last year. Barclays Profit Buoyed By Investment Banking Unit (WSJ) Investment banking, headed by departing executive Rich Ricci, accounted for 74% of Barclays' pretax profit, or £1.32 billion of the £1.79 billion total. The high proportion of profits in part reflected weakness in other areas, such as retail banking in Europe and Africa, but was underpinned by a strong quarter for underwriting stock offerings and servicing hedge fund clients...The bank as a whole posted a £839 million net profit, compared with a £598 million net loss in the first quarter of 2012. Both figures are distorted by accounting charges that reflect the market cost of Barclays' own debt. The £1.79 billion pretax profit was down 25% from £2.4 billion in first-quarter 2012 and slightly lower than analysts had expected. Citigroup Says Debt Beats Peers in Advance of ‘Bail-In’ Rule (Bloomberg) Citigroup, the bank that took the most U.S. aid during the credit crisis, said it’s better- prepared than some rivals to withstand the impact of new anti- bailout rules that could force lenders to sell more debt. Citigroup’s so-called bail-in plan -- a rescue that makes debt investors and stockholders absorb losses instead of taxpayers -- shows the bank already has issued more long-term debt than some of its largest rivals, Treasurer Eric Aboaf said during an April 22 investor presentation. That leaves the New York-based bank in a better position as regulators decide how much more debt lenders should add to their buffers, Aboaf said. Wall Street Jobs Plunge As Profit Soars (Bloomberg) “The desire is to drive the cost of executing a trade to its lowest point -- this means automating the system and getting rid of the traders,” Richard Bove, a bank analyst with Rafferty Capital Markets LLC, said in a telephone interview. “All they do today is hit buttons on computer screens. Twenty-five years ago they would be calling their buddies at different firms. It was a highly labor intensive effort.” New York’s “inhospitable” climate for commercial banks, along with falling demand for financial services and increasing automation is driving the decline in jobs, Bove said. Woman could face death penalty for killing man by crushing testicles (NYDN) A 42-year-old woman is on trial for allegedly grabbing a man's genitals after he told her not to park her electric bike in front of his store. He later died from shock, according to reports. "I'll squeeze it to death, you'll never have children again," witnesses reported her as saying as she called on her brother and husband for back-up. The woman, who could face the death penalty if convicted, got into the row - in the Meilan District of Haikou City, Hainan - more than a year ago on April 19, 2012. IBTimes reports that her 41-year-old victim went into a state of shock and died before paramedics could treat him. The final outcome of the trial, it adds, depends largely on the interpretation of the woman's statement of "squeeze it to death." Dr Irwin Goldstein, urologist and director of San Diego Sexual Medicine, has previously told Gizmodo it is "quite plausible" the squeeze had killed the man. "Yes, the testicles are exquisitely sensitive to touch and there is a huge release of adrenalin when there is excessive force applied to these organs," he told the site. He added that it could have brought on a heart attack. Hazy Future for S.E.C.’s Blossoming Whistle-Blower Effort (NYT) Already, a whistle-blower program has bolstered an investigation into a trading blowup that nearly toppled Knight Capital, the largest stock trading firm on Wall Street, according to lawyers briefed on the case. With help from another whistle-blower, the lawyers said, the government discovered that Oppenheimer & Company had overstated the performance of a private equity fund. And after pursuing a Texas Ponzi scheme for more than a year, a cold trail heated up in 2010 when a tipster emerged. The breakthroughs—previously undisclosed—show the promise of the agency's 20-month-old whistle-blower program. Yet, the program faces challenges on many fronts. Some Wall Street firms are urging employees to report wrongdoing internally before running to the government, and one hedge fund, Paradigm Capital Management, was accused in a lawsuit of punishing an employee who had cooperated with the S.E.C., according to court and internal documents. Another financial firm, the documents show, pressured an employee to forfeit potential "bounties or awards"—a possible violation of S.E.C. rules. Apple’s $145 Billion in Cash Fails to Win AAA Debt Rating (Bloomberg) Apple, which has $145 billion of cash, said yesterday it plans to use debt to help finance a $100 billion capital reward for shareholders after a 42 percent stock plunge. Moody’s Investors Service and Standard & Poor’s responded by ranking the company a level below their top grades, with Gerald Granovsky of Moody’s citing “shifting consumer preferences” in a statement as a risk to Cupertino, California-based Apple’s business. ECB Rate Cut Could Bring Big Disappointment (CNBC) Expectations are rising that the European Central Bank will announce a rate cut when it meets next week. But according to analysts the move is likely to have a limited impact and could in fact end up being a disappointment.

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Opening Bell: 6.29.16

Moody's downgrades 12 UK banks; Soros bets against Deutsche Bank; Saudi Arabia beating off bankers with a stick; Cops say woman wielded hatchet after her demands for sex were rebuffed; and more.

Opening Bell: 01.14.13

Goldman May Delay UK Bonuses Until Top Tax Rate Falls (Reuters) Goldman Sachs is considering delaying bonus payments in the U.K. until after April 6, when the top rate of income tax in the country will drop to 45 percent, from 50 percent, a person familiar with the bank's operations said on Sunday. The strategy relates to bonuses that were deferred from 2009, 2010 and 2011, the person said. The Financial Times reported the news earlier today. JPMorgan Said to Weigh Disclosing Whale Report Faulting Dimon (Bloomberg) JPMorgan's board will consider releasing an internal report this week that faults Chief Executive Officer Jamie Dimon’s oversight of a division that lost more than $6.2 billion on botched trades, said two people with direct knowledge of the matter. The final report, which builds on a preliminary analysis released in July, is critical of senior managers including Dimon, 56, former Chief Financial Officer Doug Braunstein, 51, and ex-Chief Investment Officer Ina Drew, 56, for inadequately supervising traders in a U.K. unit that amassed an illiquid position in credit derivatives last year, the people said. The report, which isn’t complete, will be presented to the board when it meets tomorrow. The directors will then vote on whether to disclose it when the bank announces fourth-quarter results the following day, said the people, who asked not to be named because the report isn’t yet public. Morgan Stanley to trim Dubai staff amid global cuts (Reuters) "The Dubai cuts are part of the bank's global plan. Obviously, the bank is trying to focus on growth opportunities in the region and there has been little growth on the equities side barring Saudi," one of the sources said, speaking on condition of anonymity as the matter has not been made public. Morgan Stanley's equities business will now focus on Saudi Arabia, the source said, adding that planned cuts at other divisions in the Middle East were minimal. Hedge-Fund Leverage Rises to Most Since 2004 in New Year (Bloomberg) The rising use of borrowed money shows that everyone from the biggest firms to individuals is willing to take more risks after missing the rewards of the bull market that began in 2009. While leverage means bigger losses should stocks decline, investors are betting that record earnings and valuations 9.8 percent below the six-decade average will help push the Standard & Poor’s 500 Index toward the record it set in October 2007. “The first step of increasing risk is just going long, the second part of that is levering up in order to go longer,” James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management, said in a Jan. 8 telephone interview. “Leverage increasing in the hedge-fund area suggests they’re now getting on board.” Goldman: Insurer Knew Paulson Was 'Shorting' (WSJ) Goldman Sachs on Friday fired back at a bond insurer suing it over a soured mortgage-linked deal, arguing in a court filing that ACA Financial Guaranty Corp. "cherry-picked" evidence to bolster its case. ACA in 2011 filed suit against Goldman in New York State Court, alleging Goldman misled it about a 2007 mortgage deal. ACA alleges that Goldman told it that one of Goldman's hedge-fund clients, Paulson & Co., was betting on the deal, when in fact Paulson was betting against it, according to an amended complaint the insurer is seeking to file. Had ACA known Paulson's true position, it never would have insured the deal, according to the amended complaint. Goldman countered in the Friday filing that ACA insured the deal knowing Paulson was betting against residential mortgage-backed securities at the time. ACA analyzed and chose the investments in the deal and should have been alerted by various "red flags" that Paulson wasn't betting on the investment, according to the filing. Primate found to be addicted to porn (NYDN) Gina, a resident of the Seville Zoo in Spain, chose to solely watch adult entertainment channels when a television and remote control was placed in her enclosure. Primatologist Pablo Herreros, writing in Spanish newspaper El Mundo, claimed he made the discovery some years ago on a tour of the nation's chimpanzee enclosures. During his research trip he conducted surveys on the behavior of the animals. Herreros wrote, “What I could never imagine were the surprises prepared for me by a female of this species called Gina who inhabited Seville Zoo.” To enliven Gina's nights, officials apparently decided to install a television, protected behind glass, and gave her a remote control so she could change the channels herself. And enliven herself she did. “The surprise was when they found that within a few days, Gina was not only using the remote control perfectly well, but that she also used to choose the porn channel for entertainment, as many of us would have done, ” Herreros wrote. “Although a small study estimated that porn films are only watched for about 12 minutes on average, the truth is that human and non-human primates possess an intense sexual life.” AIG Sues New York Fed... To Secure Right To Sue Bank Of America (Reuters) American International Group Inc has filed a lawsuit against a vehicle created by the Federal Reserve Bank of New York to help bail out the insurer, in a bid to preserve its right to sue Bank of America Corp and other issuers of mortgage debt that went sour. The complaint filed in the New York State Supreme Court in Manhattan seeks a declaration that AIG has not transferred billions of dollars of "litigation claims" to Maiden Lane II, including many related to the insurer's $10 billion lawsuit against Bank of America. UK court approves ex-Credit Suisse trader's extradition to U.S. (Reuters) A British court on Monday approved the extradition of a former Credit Suisse trader to the United States, where he is wanted over a $540-million fraud dating back to the subprime mortgage crisis. The case of Kareem Serageldin will now be sent to Home Secretary Theresa May, the interior minister, who under British law has the final say over extraditions to the United States. She is expected to give the green light for the transfer to take place. Serageldin, 39, the Swiss bank's former global head of structured credit, is accused of artificially inflating the prices of mortgage-backed bonds between August 2007 and February 2008, when their real value was plummeting. Equities Bear Brunt of Wall Street Job Cuts on Volume (Bloomberg) Employees on stocks desks fell by 8.5 percent globally in the first nine months of last year, according to a survey by Coalition Ltd., an industry analytics firm. That compares with a 6.6 percent drop in fixed-income workers and a 5.8 percent decrease for origination and advisory functions, the data show. Banks Find Promise Unfulfilled in China Forays (WSJ) Global firms sold about US$44 billion worth of shares in Asian financial institutions in 2012 to institutional investors or other strategic buyers, up from US$32.7 billion in 2011, according to data provider Dealogic. The retreat is gathering pace as a host of new regulations, including the so-called Basel III capital rules, make holding minority stakes in financial institutions more expensive. Thousands Participate In Annual No Pants Subway Ride (CBS) Organizers arranged that starting at 3 p.m., people got on trains at six different stops across the city, took off their pants and put them into their backpack. Participants then acted as if everything was completely normal as they rode on to Union Square. Participants are asked to don typical winter wear such as coats, hats and gloves and act as if they don’t know other pantsless riders, according to organizers. The group said it was just all in good fun. “People are willing to give basically their Sunday afternoon to take off their pants; to do something silly and fun, and you know, a good time,” one participant said. “It makes you feel invincible; superior, because nobody else has any idea what’s going on,” another said. There were no-pants subway rides in dozens of cities in 17 countries Sunday. In New York City, participants were happy it was rather warm. In prior years, the cold has bummed them out.