Opening Bell: 2.23.15

Morgan Stanley FBI informant fired; Greece reform; iCar; Tech sexual harassment trial; Guy who ate 6 lbs of bacon in 5 minutes felt fine; AND MORE.
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Ex-Morgan Stanley Broker Fired for Helping Feds Investigate Fraud, Suit Says (WSJ)
A former Morgan Stanley broker has filed a suit accusing the firm of firing him for being a whistleblower who had raised allegations of insider trading involving its Knoxville, Tenn., branch and had helped federal authorities uncover fraud at a truck-stop chain. The broker, John Verble, says in his filing that he wore a wire to help the Federal Bureau of Investigation investigate the fraud case, and that a superior at the Morgan Stanley office physically threatened him when his efforts became known. “As a direct result of plaintiff’s involvement in assisting the FBI to investigate violations...plaintiff was retaliated against, discriminated against and illegally discharged from his position in violation of numerous federal statutes,” the complaint said. Mr. Verble, now a financial adviser at Raymond James Financial Inc., wants either to return to his old job or damages equal to double his roughly $360,000 salary until he reaches 68 years of age, according to the complaint. He is now in his mid-50s, his lawyer’s office says.

Greece readies reform promises (Reuters)
Greece's government prepared reform measures on Sunday to secure a financial lifeline from the euro zone, but was attacked for selling "illusions" to voters after failing to keep a promise to extract the country from its international bailout. Leftist Prime Minister Alexis Tsipras has insisted Greece achieved a negotiating success when euro zone finance ministers agreed to extend the bailout deal for four months, provided it came up with a list of reforms by Monday.

Apple’s ‘Project Titan’ could reshape the auto world (NYP)
With reports last week that Apple hopes to bring a car to market in five years, every motorist who remembers the pre-iPhone era of smartphones must be feeling like their new car will go the way of BlackBerry, Nokia or Palm Pilot. Currently, at a secret location near its Cupertino, Calif., headquarters, Apple is said to be working on a car design — code-named “Project Titan” — at breakneck speed. While auto companies can take as long as seven years to develop a car, Apple is said to be hoping to start shipping its vehicles in five years — or as early as 2020.

Ellen Pao Suit Against Kleiner Perkins Heads to Trial, With Big Potential Implications (NYT)
...in a high-profile suit set to go to trial this week, a jury will pass judgment about whether one woman suffered discrimination. The proceedings could resonate widely: A guilty verdict will be billed as a sweeping indictment of the high-tech world, while a dismissal might supply ammunition to those who feel gender issues are being overplayed. The accuser is Ellen Pao, who worked at one of the valley’s most prominent venture capital firms, Kleiner Perkins Caufield & Byers. At the center of the suit is John Doerr, a legendary investor who was Ms. Pao’s boss and, according to court papers, practically a father to her. How the man with the Midas touch let his very proud, very image-conscious shop become embroiled in scandal is a question lurking behind the suit. Ms. Pao says a married colleague pressured her into an affair and then retaliated against her when she broke it off. When she complained, she says she was discriminated against and got poor reviews, resulting ultimately in her dismissal. She accuses Kleiner of treating her “despicably, maliciously, fraudulently and oppressively” from “an improper and evil motive amounting to malice.”

Man Consumes 182 Slices To Earn Bacon-Eating World Record (WOKV)
Competitive eater Matt 'Megatoad' Stonie set the bacon-eating world record by consuming 182 slices of bacon in five minutes. Stonie, one of Major League Eating's top two eaters in the world, estimated that he ate about six pounds of cooked bacon. That amount contains over 28,000 milligrams of sodium, according to Smithfield, the event's sponsor. Stonie told The Huffington Post that he didn't feel that bad after the competition. The bacon was cooked a bit crispy which is Stonie's preference during competitions because he doesn't like to have to chew. Stonie claims that despite the massive bacon consumption, he will never lose his love of the pork product.

Valeant Pharmaceuticals to Buy Salix for About $10 Billion (WSJ)
Valeant Pharmaceuticals International Inc. said Sunday it would buy Salix Pharmaceuticals Ltd. for about $10 billion, a return to its big deal-making ways after a failed bid for Botox maker Allergan Inc. last year.

New Cancer Technology Gives Investors a Shot in the Arm (WSJ)
George Soros , Michael Milken and David Bonderman are among marquee investors benefiting from early bets on a red-hot sector: young companies developing drugs that fight cancer by using the body’s immune system. Interest in the nascent approach, known as immunotherapy, has taken off following the success of Yervoy and Opdivo, a pair of drugs developed by giant Bristol-Myers Squibb Co. The treatments could generate $8.5 billion in annual revenue by 2020, Credit Suisse predicts, or more than half the New York company’s 2014 revenue of $15.9 billion.

Gold Fever Fades: $4 Billion Erased From Funds (Bloomberg)
Judging by the barometer of hedge-fund interest, there’s less to get excited about in gold these days. Even as Greece battled with its creditors to avoid default and keep the euro zone intact, speculators retreated from the metal used as a haven from economic and political upheaval. Money managers cut their net-long wagers by the most in 15 weeks, U.S. government data show.

Lawmakers Clash Over Easing Rules for Smaller Banks (WSJ)
Lawmakers, who have been receptive to arguments from small and midsize banks to reduce the regulatory burden of stress tests, mortgage restrictions and other new rules, are now at odds about how far to take those efforts.

Carlyle Hedge-Fund Unit Has Big Outflow (WSJ)
Investors have pulled about $2.5 billion since October from a hedge-fund firm owned by Carlyle Group LP after an outsize bet on mortgage giants Fannie Mae and Freddie Mac led to steep losses last year, people familiar with the matter said.

Slumping Oil Prices Hit Calgary Housing (WSJ)
Many companies, including some of the region’s largest employers, have slashed budgets, cut wages and frozen hiring, and some have started to announce layoffs. Those jitters are starting to affect the housing market there.

College dean gets box of fake IDs meant for student named Dean (UPI)
Police said an 18-year-old college student named Dean ordered a box of fake IDs and had them shipped to his campus address. What the student probably didn't think about was he shared the same name with a dean at his school. The package was delivered to the administrator, who open the box and found eight realistic looking IDs, one complete with the student's real name. "You can't make this up," Radnor Police Superintendent William Colarulo told the Philadelphia Inquirer. Police linked the fake IDs to four 18 year-old men, but would not identify the men or the college. Local schools include Villanova University, Cabrini College, Eastern University and Valley Forge Military Academy and College. Police tracked the package to Guangzhou, China, and said it is part of a larger problem with fraudulent identification. The cards are easy to get and can be used for far more than sneaking into bars.

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Opening Bell: 6.16.15

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Opening Bell

Opening Bell: 09.25.12

RBS Managers Said To Condone Manipulation Of Libor Rates (Bloomberg) In an instant-message conversation in late 2007, Jezri Mohideen, then the bank’s head of yen products in Singapore, instructed colleagues in the U.K. to lower RBS’s submission to the London interbank offered rate that day, according to two people with knowledge of the discussion. No reason was given in the message as to why he wanted a lower bid. The rate-setter agreed, submitting the number Mohideen sought, the people said. Mohideen wasn’t alone. RBS traders and their managers routinely sought to influence the firm’s Libor submissions between 2007 and 2010 to profit from derivatives bets, according to employees, regulators and lawyers interviewed by Bloomberg News. Traders also communicated with counterparts at other firms to discuss where rates should be set, one person said. Gary Gensler Calls For Libor Replacement (WSJ) "It is time for a new or revised benchmark—a healthy benchmark anchored in actual, observable market transactions—to restore the confidence of people around the globe," Mr. Gensler said. "There are no rules requiring controls, firewalls, independent testing, policies and procedures, or a methodology ensuring that submissions are transaction-focused, as the benchmark was originally intended," he said. German Banks Have Big Exposure To Spain (WSJ) German lenders have the highest exposure in Europe to Spain, at $139.9 billion, of which $45.9 billion alone is exposure to banks, according to the Bank for International Settlements. Easier Eton Exits (NYP) Eric Mindich’s $11 billion Eton Park Capital Management has rolled back its complicated lock-up period for most investors by more than a third. Starting in early 2013, those investors will be able to withdraw their cash in 21 months, down from a three-year lock-up period...“It’s an attempt to keep people in by relaxing the terms and conditions,” said Brian Schapiro, president of Simplify, a hedge-fund research provider, of the Mindich move. But the lock-up rollback, aimed to quell investor rage, hasn’t made them all happy. “They’ve gone from a three-year lock to a two-year lock. Big deal,” said one investor who’s been taking as much money out as he could for several years. For Investors, A New Pick Of The Crop (WSJ) Fresh apple consumption in China, which produces more than half of the global supply of the fruit, has soared 80% from the 2007-2008 crop year to the crop year ending in June 2012, according to the U.S. Department of Agriculture. That compares with growth of just 36% world-wide in the same period. The surge is shaking up a small corner of the commodities world, the market for apple-juice concentrate in the U.S., and has led to the first-ever futures contract for the product. LI youth baseball coach spent $50G on ‘revenge’ kids team (NYP) Angered after his own son failed to flourish on the Long Island Infernos traveling baseball team for 10- and 11-year-olds, Robert Sanfilippo used his own money to create and fund the Long Island Vengeance to even the score against his boy’s former squad, a law-enforcement source said. Obsessed with vanquishing the Infernos, Sanfilippo aggressively recruited players in newspaper ads and appealed to kids cut from other teams, sources said. While the players’ parents usually fork out for traveling teams, Sanfilippo — who resides in a pricey Huntington home — footed the entire bill for the Vengeance. “No one could understand why this guy was spending so much money on 10-year-olds,” said another coach. “It was all about revenge.” Sanfilippo faces harassment and stalking charges after he allegedly sent threatening messages to rival coach John Reardon. The pair had argued during a Memorial Day baseball game.While other Long Island teams had modest equipment, Sanfilippo spent like a Suffolk County Steinbrenner. The Vengeance sported top of the line helmets with airbrushed skull and crossbones insignias that cost upwards of $300 each for a team of roughly 20 kids. The squad also provided each player with two uniforms and baseball bags worth hundreds of dollars. Merkel: Europe Must Take ‘Deep Breath’ and Enact Reforms (Reuters) Speaking at a meeting of the Federation of German Industries (BDI), Merkel acknowledged that Germany was "not an island" that could disconnect from economic developments in Europe and the world economy. But she placed the onus on Berlin's struggling euro zone partners to fix their own economies, rejecting the idea that Germany should relax its own productivity drive in order to help its partners. "We need to take a deep breath to overcome this crisis," Merkel said. "We must make the efforts that will allow Europe to come out of this crisis stronger than it went in. Key Galleon Witness Gets Probation (WSJ) U.S. District Judge Barbara Jones sentenced Rajiv Goel to two years of probation, fined him $10,000 and ordered him to forfeit $266,649. She said he had the "good sense" to cooperate once he was caught, and called that type of cooperation "essential" to complicated white-collar-crime investigations. CIT Soars On Target Talk (Bloomberg) Just remember: nothing happens until John Thain gets taken care of. Bacon, pork shortage 'now unavoidable,' industry group says (LA Times) Might want to get your fill of ham this year, because "a world shortage of pork and bacon next year is now unavoidable," according to an industry trade group. Blame the drought conditions that blazed through the corn and soybean crop this year. Less feed led to herds declining across the European Union “at a significant rate,” according to the National Pig Assn. in Britain...In the second half of next year, the number of slaughtered pigs could fall 10%, doubling the price of European pork, according to the release. Click here to sign up for Dealbreaker's Opening Bell daily email. It's the same exact thing as above, but delivered to your inbox, which is moderately exciting.

Opening Bell

Opening Bell: 3.27.15

Morgan Stanley CFO turned Google CFO will make $70 million next year; Goldman tops JP Morgan; "Bacon rage shooting"; and more.

Opening Bell

Opening Bell: 3.25.15

Cybersecurity keeps NY Fed awake at night; Tech poaching Wall Street's top ranks; Invest in a racehorse; "Utah restaurant's well-endowed bull statue irks neighbors"; and more.

Opening Bell

Opening Bell: 11.26.12

UBS Stung By Adoboli Case (WSJ) Swiss financial market regulator Finma said it will keep a close eye on UBS's investment bank for the foreseeable future and may ask it to raise fresh capital, following an investigation into failures that allowed London-based trader Kweku Adoboli to make unauthorized trades. At the same time, the U.K. Financial Services Authority fined UBS £29.7 million ($47.6 million). Mr. Adoboli was convicted of fraud last week and sentenced to a seven-year prison term. "The measures ordered by Finma include capital restrictions and an acquisition ban on the investment bank, and any new business initiative it plans must be approved by Finma," the regulator said. Finma will also consider "whether UBS must increase capital backing for its operational risks," will appoint a third party to ensure corrective measures are introduced, and will organize an audit to review the steps taken by UBS. Finma declined to say when the auditing review would be completed or when a decision on a capital increase would be made, though a spokesman said this is likely to be within months rather than years. SAC Fund Manager Faces Choice of Trial or Deal (Bloomberg) Martoma, 38, used illegal tips to help SAC make $276 million on shares of pharmaceutical companies Elan Corp. and Wyeth LLC, according to the Justice Department and the Securities and Exchange Commission. Arrested last week, he is to appear today in Manhattan federal court for masterminding what the U.S. calls the most lucrative insider-trading case ever. Flowers Foods Sizes Up Hostess (WSJ) The Thomasville, Ga., company is considered a likely bidder for some of the assets owned by Hostess, which last week was granted permission by a federal bankruptcy-court judge to begin liquidating. The end came after a contentious bankruptcy that began in January and culminated this month in a strike. Goldman Turns Down Southern Europe Banks as Crisis Lingers (Bloomberg) Goldman Sachs, the No. 1 stock underwriter in Europe, turned down roles in offerings by banks in Spain and Italy this year, the only top U.S. securities firm not to take part in the fundraisings by southern European lenders as the region’s debt crisis stretches to a fourth year. The firm declined a role in Banco Popular Espanol SA’s 2.5 billion-euro ($3.2 billion) rights offering this month because it wanted greater protection to avoid potential losses on the sale, two people familiar with the talks said. JPMorgan and Morgan Stanley are helping to guarantee the deal. Goldman also didn’t underwrite this year’s share sales by Italy’s UniCredit SpA and Portugal’s Banco Espirito Santo SA, which drew Bank of America Corp. and Citigroup. Knight Seen Getting Acquisition Bids This Week (Bloomberg) The company with a market value of about $430 million was bailed out by six financial firms in August after losing $457 million in a trading error. Chicago-based Getco LLC, one of the rescuers, and Virtu Financial LLC in New York are among the likely bidders, said the person, who requested anonymity because the negotiations are private. The Wall Street Journal reported Nov. 23 that Knight expected offers for its market-making unit. Woman who rode manatee charged with violating protection act (Sentinel) A 53-year-old Pinellas County woman was arrested Saturday for violating the Florida Manatee Sanctuary Act by riding a sea cow in the waters near St. Petersburg in September. Ana Gloria Garcia Gutierrez of St. Petersburg was arrested at her place of employment — Sears at Tyrone Square Mall in St. Petersburg — on a warrant issued by the State Attorney's Office. The charge is a second-degree misdemeanor. The punishment could be a $500 fine or up to 60 days in jail, the Tampa Bay Times said. Gutierrez stepped forward after the Pinellas County Sheriff's Office released photos of a then-unknown woman riding a manatee near Fort DeSoto Park in Pinellas County on Sept. 30. "Gutierrez admitted to the offense claiming she is new to the area and did not realize it was against the law to touch or harass manatees,'' the Pinellas County Sheriff's Office said in a statement. Escrowyou too, judge! (NYP) Argentina, bruised and battered after a 10-year battle to sidestep billions of dollars in bond payments, is lashing out at US courts and a Manhattan federal court judge. A high-ranking member of Argentina President Cristina Kirchner’s administration terms “judicial imperialism” the Thanksgiving eve ruling by Judge Thomas Griesa that ordered the South American country to place a $1.3 billion bond payment in escrow pending the end of the legal tussle. Kirchner has repeatedly said she would not pay up. Griesa, frustrated with Argentina’s repeated attempts to stall the legal proceedings, sided with New York hedge fund billionaire Paul Singer, whose Elliott Management owns Argentine bonds that were defaulted on back in 2002. 'Cliff' Threatens Holiday Spending (WSJ) The White House warned in a new report that going off the so-called "fiscal cliff" could slow the growth of real gross domestic product by 1.4% and limit consumer spending during the holiday season. The report comes as lawmakers are returning to Washington with just weeks left to find an agreement to prevent taxes from going up on millions and spending cuts from kicking in. It will likely provide fodder for both political parties as they seek to find a compromise. At Some Firms, Cutting Corporate Rates May Cost Billions (WSJ) President Barack Obama has said, most recently during last month's presidential debates, that the 35% U.S. corporate tax rate should be cut. That would mean lower tax bills for many companies. But it also could prompt large write-downs by Citigroup, AIG, Ford and other companies that hold piles of "deferred tax assets," or DTAs...Citigroup, for instance, acknowledged during its recent third-quarter earnings conference call that a cut in the tax rate could lead to a DTA-related charge of $4 billion to $5 billion against earnings. Cohen's General Counsel Gives SAC Boss Cover (NYP) The sharks of the US Attorney’s office have SAC Capital Advisors surrounded — and owner Steven Cohen is looking a lot like chum. Good thing the billionaire hedgie has a large supply of shark repellent. That would be Peter Nussbaum, SAC’s longtime general counsel who, over his 12 years at the Stamford, Conn., firm, has built up an impressive 30-person compliance department — not including an additional tech compliance team. “Nussbaum is the most respected person at SAC,” said a hedge fund executive not at SAC. “He is going to do what he thinks is best for the firm and not be cowed by anyone.” Nussbaum’s huge compliance department, observers said, was built, in large part, because of the perception that the government was determined to bust Cohen. Confidential Police Docs Found in Macy's Parade Confetti (WPIX) Confidential personal information is what some paradegoers found among confetti tossed during the world's most famous parade. That information included social security numbers and banking information for police employees, some of whom are undercover officers. Ethan Finkelstein, who was home from college on Thanksgiving break, was watching the parade at 65th Street and Central Park West, when he and a friend noticed a strip of confetti stuck onto her coat. "It landed on her shoulder," Finkelstein told PIX11 News, "and it says 'SSN' and it's written like a social security number, and we're like, 'That's really bizarre.' It made the Tufts University freshman concerned, so he and his friends picked up more of the confetti that had fallen around them. "There are phone numbers, addresses, more social security numbers, license plate numbers and then we find all these incident reports from police." One confetti strip indicates that it's from an arrest record, and other strips offer more detail. "This is really shocking," Finkelstein said. "It says, 'At 4:30 A.M. a pipe bomb was thrown at a house in the Kings Grant' area." A closer look shows that the documents are from the Nassau County Police Department. The papers were shredded, but clearly not well enough.

Opening Bell

Opening Bell: 5.27.15

Greece not getting money any time soon; RBS will (probably) pay another $4.5 billion fine; FIFA arrests; Hank Greenberg; Activists v. Tech; "NYPD boss spent $60K on dance studio for cops"; and more.

Opening Bell

Opening Bell: 09.26.12

Spain Prepares More Austerity, Protesters Battle Police (Reuters) Protesters clashed with police in Spain's capital on Tuesday as the government prepared a new round of unpopular austerity measures for the 2013 budget to be announced on Thursday. Thousands gathered in Neptune plaza, a few metres from El Prado museum in central Madrid, where they formed a human chain around parliament, surrounded by barricades, police trucks and more than 1,500 police in riot gear. Police fired rubber bullets and beat protesters with truncheons, first as protesters were trying to tear down barriers and later to clear the square. The police said at least 22 people had been arrested and at least 32 injured, including four policemen. Facebook's Next Fight: Suits And More Suits (WSJ) About 50 lawsuits have been filed against Facebook, Nasdaq OMX Group Inc. and underwriters of Facebook's May IPO, according to lawyers involved in the cases. In addition, securities lawyers who represent Facebook investors say they expect hundreds of arbitration claims to be launched against brokers and securities firms that pitched the company's shares. Credit Suisse Said to Consider Merging Its Asset-Management Unit (Bloomberg) The bank is considering combining its asset-management unit with the private and investment banking divisions, a person familiar with the matter said. SAC Capital Fund Manager Said To Be Uncharged Conspirator (Bloomberg) The role allegedly played by Michael Steinberg emerged in court papers filed by the U.S. in the securities-fraud case of Jon Horvath, a former technology analyst at Cohen’s $14 billion hedge fund who Steinberg supervised. Steinberg, who hasn’t been charged with a crime, is the fifth person to be tied to insider trading while employed at SAC. Horvath faces trial Oct. 29 in Manhattan federal court along with two other portfolio managers for his part in what Manhattan U.S. Attorney Preet Bharara called a “criminal club:” a conspiracy of hedge fund managers, co-workers and company insiders who reaped millions of dollars on illegal tips about Dell Inc. and Nvidia Corp. “The government added four additional co-conspirators,” prosecutors wrote in a Sept. 6 letter filed with the court, with the names blacked out. One of them, the U.S. said, is “the portfolio manager to whom Jon Horvath reported at his hedge fund.” That person was Steinberg, said the people, who declined to be identified because the matter isn’t public. UK Group To Give Up Libor Oversight (WSJ) The council of the BBA, a private trade association, voted earlier this month to give up management of Libor, according to people familiar with the matter. The move clears the way for what is likely to be the biggest change in Libor's 26-year history, and introduces the possibility that British or international regulators could be in charge of overseeing the rate, which is tied to trillions of dollars of financial contracts. Rent-a-reptile: Florida company adds alligators to kids’ pool parties (NYDN) Bob Barrett gives Florida kids pool parties they’ll never forget — because they get to swim with real live alligators. Jump houses? Pizza parties? Boring, says Barrett. “You jump for a while and that’s it, we’ve had that party before,” he told the Daily News. “Clown party, Chuck E. Cheese party, they’ve all been done.” Barrett,who runs Alligator Attractions in Madeira Beach — where visitors get to hold gators — was already bringing his reptiles around to birthday parties when he was inspired to take the next step. “We would do [an alligator demonstration] at someone’s house and they would have a pool,” he explained. “And I said, you know, ‘Hey, let’s put ‘em in the pool.’” Hedge Fund Skeptics Warn on ‘QE Infinity’ (FT) “A man’s got to know his limitations,” says “Dirty Harry” Callahan, the gun-toting, rule book-ignoring cop immortalized by Clint Eastwood in “Magnum Force.” It is a principle the U.S. Federal Reserve – which earlier this month embarked upon its own, third bout of “unorthodox” enforcement, “QE3” – could learn from, according to Stephen Jen, the former Morgan Stanley foreign-exchange guru turned hedge fund manager. “The Fed officials are some of the smartest economists around,” he wrote in his most recent note to clients. The trouble is, said Mr. Jen, “they know everything except their own limitations.” Irish Bank Offers Properties For 70% Less Than 2007 Value (Bloomberg) RBS's Irish unit offered to sell properties, including 640 apartments and a hotel, for about 70 percent less than their value at the market’s 2007 peak, according to the broker managing the sale. The Gemini portfolio, containing buildings in the Irish cities of Dublin and Cork, has an asking price of 75 million euros ($97 million), according to Domhnaill O’Sullivan, a director at Savills Plc (SVS)’s Dublin office. MIT Miscounts Its New B-School Students (WSJ) After realizing they had a student surplus, school officials emailed the incoming class on Aug. 7, offering "guaranteed admission to the class of 2015 for the first 20 admitted students who request it." The school gave them until Aug. 13 to respond, according to one student's copy of the letter, which was reviewed by The Wall Street Journal. But it didn't get enough takers. So, like an airline offering vouchers to travelers willing to hop off oversold flights, the school put money on the table, offering students who expressed an interest a $15,000 scholarship to be applied to next year's tuition. Students still balked, and on Aug. 21, a day after pre-term refresher courses began, Sloan raised the offer to $20,000 for the first 10 respondents. (Tuition for the 2012-2013 academic year is $58,200, with total expenses—including books, housing and food—estimated at just under $89,000.) NFL replacement referee who blew touchdown call in Green Bay Packers-Seattle Seahawks game is a full-time banker (NYDN) ...fans, particular those in Wisconsin, said the 52-year-old southern California banker with no previous professional or major college refereeing experience should have never left his desk to become a replacement during the NFL’s lockout of unionized refs. Even the Lingerie Football League piled on, revealing that some of the scab refs weren’t qualified to work its games. “Due to several on-field occurrences of incompetent officiating, we chose to part ways with a crew which apparently is now officiating in the NFL,” said Mitch Mortaza, commissioner of the female bra-and-panty league. “We have a lot of respect for our officials, but we felt the officiating was not in line with our expectations.”

Opening Bell

Opening Bell: 07.18.12

BofA Swings To Profit, Topping Analysts' Estimates (WSJ) Bank of America reported a profit of $2.46 billion, compared with a year-earlier loss of $8.83 billion. On a per-share basis, which reflect the payment of preferred dividends, earnings came in at 19 cents from a loss of 90 cents a year earlier. The year-ago quarter's results included a charge of $1.23 a share in mortgage-related and other adjustments. Total revenue surged 66% to $21.97 billion. Analysts polled by Thomson Reuters expected earnings of 14 cents a share on $22.87 billion in revenue. The bank's profit was helped by reduced provisions for loan losses as credit quality continued to improve. Credit-loss provisions totaled $1.77 billion compared with $3.26 billion a year ago and $2.42 billion in the first quarter. HSBC Probe Brings Promises Regulator, Bank Will Clean Up Act (Bloomberg) HSBC executives apologized for opening their U.S. affiliate to a river of Mexican drug lords’ cash, and the U.S. regulator that failed to stem the flow vowed to prevent a repeat. “I deeply regret we did not act sooner and more decisively,” Comptroller of the Currency Thomas Curry said at a day-long hearing yesterday of the Senate Permanent Subcommittee on Investigations. He said his agency, which regulates HSBC’s U.S. arm, is partially responsible for letting Europe’s largest bank give terrorists, drug cartels and criminals access to the U.S. financial system and will take “a much more aggressive posture.” Opinion: Investing In America Produces The Best Returns, By Lloyd Blankfein (Politico) The question I’m most often asked these days is, “Where should I invest?” In recent years, we all know, there has been an unusually high degree of uncertainty. It falls into two broad categories: cyclical concerns that focus on the outlook for near-term economic growth and structural concerns that center on the viability of existing political or economic systems — for example, the European Union. The cyclical and structural challenges are considerable, and in some cases, even daunting. But when I meet with chief executive officers and institutional investors and they ask me where to invest, my response is that the United States remains as attractive as ever. And it would be even more attractive if it can make some short-term progress in a few key areas. Hugh Hendry: ‘Bad Things are Going to Happen’ (FT) Hendry believes that financial markets are single-digit years away from a crash that will present investors with opportunities of a lifetime. “Bad things are going to happen and I still think the closest analogy is the 1930s.” For Yahoo CEO, Two New Roles (WSJ) Just hours after Yahoo named Marissa Mayer as its new chief, the real conversation kicked in: how she will juggle pregnancy and being the CEO charged with saving a foundering Internet giant. The 37 year-old former Google executive is expecting her first child, a son, in early October. On Tuesday, she started her new job at Yahoo, which reported another quarter of lackluster sales growth...No Yahoo directors expressed concern about her pregnancy, according to Ms. Mayer, who told the board in late June, about a week after Yahoo's recruiter contacted her. She says she plans to work during her maternity leave, which will last several weeks...Ms. Mayer's husband, Zachary Bogue, a former attorney, is co-managing partner at Data Collective, an early-stage venture capital fund specializing in tech start-ups. JFK jet in laser scare (NYP) A lunatic aimed a powerful laser beam at an airliner flying over Long Island on its way into JFK — sending the pilot to the hospital and endangering the lives of the 84 people aboard. The first officer on JetBlue Flight 657 from Syracuse was treated for injuries to both eyes after the blinding flash of light lit up the cockpit Sunday night — as the FBI and Suffolk cops hunted for the person responsible, who could face federal prison time. The Embraer E190 jet landed safely, and the injured pilot — identified by sources as First Officer Robert Pemberton, 52 — was met at the gate and taken to Jamaica Hospital. Authorities believe the beam came from around West Islip, Babylon or Lindenhurst. “You wouldn’t think a pen laser would go that far of a distance,” said shocked West Babylon resident Cindy Konik, 50...A startled co-pilot, who was not identified, immediately took over the controls from his temporarily blinded colleague. “We just got lasered up here — two green flashes into the cockpit,” the captain radioed controllers at Ronkonkoma. Credit Suisse Sets Capital Plan (WSJ) moved Wednesday to stanch recent concerns about its financial strength, saying it is raising capital through the sale of convertible bonds, more divestments and the launch of another cost-savings program. It is a surprise twist in a spat with the country's central bank, which recently warned that Switzerland's number two bank wasn't strong enough to withstand a major crisis. Credit Suisse initially rejected the central bank's criticism, saying it was among the world's best-capitalized banks. This didn't impress investors, who offloaded their shares, wiping out 2 billion Swiss francs ($2.05 billion) in market value. At one point last month the bank even felt compelled to reassure investors that it was profitable in the second quarter, even though profitability over the period was never in doubt. Strong Possibility Of Further Fed Easing By September: Goldman (CNBC) In a testimony before the Senate Banking Committee on Tuesday, Federal Reserve Chairman Ben Bernanke offered no new hints that the central bank is planning more easing, but repeated a pledge that the Fed “is prepared to take further action as appropriate to promote stronger economic recovery.” “While we think that a modest easing step is a strong possibility at the August or September meeting, we suspect that a large move is more likely to come after the election or in early 2013, barring rapid further deterioration in the already-cautious near term Fed economic outlook,” Goldman Sachs conomist Andrew Tilton said in a report. BlackRock's Net Slips 11% (WSJ) BlackRock reported a profit of $554 million, or $3.08 a share, compared with a year-earlier profit of $619 million, or $3.21 a share. Stripping out one-time items, per-share earnings rose to $3.10 from $3. Revenue slipped 5% to $2.23 billion. Analysts expected earnings of $3.01 a share on $2.26 billion in revenue, according to a poll conducted by Thomson Reuters. BNY Mellon profit falls 37 percent on litigation charge (Reuters) Bank of New York Mellon Corp said on Wednesday that second-quarter net income had fallen 37 percent on lower foreign exchange revenue and after it paid $212 million to settle an investor lawsuit. The world's largest custody bank reported net income of $466 million, or 39 cents a share, compared with $735 million, or 59 cents a share, a year earlier. As announced earlier this month, the results included an after-tax charge of $212 million to settle an investor lawsuit accusing the bank of imprudently investing their cash in a risky debt vehicle that collapsed in 2008. Quarterly revenue fell to $3.62 billion from $3.85 billion. Residents warned: 6-foot lizard loose in Colorado (AP) A sheriff has warned residents in a tourist town northwest of Colorado Springs that a strong, aggressive 6-foot lizard that eats small animals — including dogs and cats — is on the loose in the area. Teller County Sheriff Mike Ensinger said Tuesday that a 25-pound pet Nile monitor lizard has gone missing after breaking a mesh leash and crawling away. Ensinger said about 400 homes in the Woodland Park area were warned. He added that the animal, which escaped Monday and is known as Dino, has not bitten any humans — yet. "We have a 6-foot reptile out and about," Ensinger said. "If it gets hungry enough, we don't know what it will do." Ensinger said officers may use a tracking dog if Dino isn't located by Tuesday afternoon. "I'm not going after it," Ensinger said. "I don't do reptiles."