Opening Bell: 4.20.15

Jon Corzine wants to be your hedge fund manager; Greece is still screwed; Short-sellers aren't doing so hot; "Chiropractor Performs Exorcisms And Barters For Sex With Patients"; and more.
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Jon Corzine Considers Launching Hedge Fund (WSJ)
Jon S. Corzine, the embattled former MF Global Holdings Ltd. chief executive and ex-chairman of Goldman Sachs Group Inc., has discussed plans to start his own hedge fund in recent months, according to people familiar with the matter. The fund would start with cash from Mr. Corzine’s personal wealth and a handful of outside investors. Mr. Corzine said he had been speaking with about a half-dozen potential investors, and projected around $150 million in assets under management, one of the people said...Mr. Corzine most likely wouldn’t be able to launch a fund until legal proceedings against him over MF Global have been resolved. Pretrial motions are expected to go at least until February of next year. The Commodity Futures Trading Commission in June 2013 filed civil charges against him and is still collecting evidence for a possible trial. “Jon Corzine is not managing anybody’s money and has not asked a single investor to put money into a fund,” said Andrew Levander, a lawyer for Mr. Corzine.

Greece Flashes Warning Signals About Its Debt (Dealbook)
Over the weekend, senior European officials said that while the Greek debt situation was dire, they still believed an agreement would be reached. And the United States, starting at the top with Mr. Obama, is actively engaged in pushing both sides to come together to prevent a market-rattling default. After two international bailouts for Greece since 2010, about 90 percent of its debt is owed to its eurozone neighbors, the I.M.F. and the European Central Bank. At the moment, not one of those lenders is showing a willingness to give any additional payback relief to Mr. Varoufakis and the new left-leaning government in Athens. Mr. Varoufakis’s next formal meeting with his country’s creditors is set for Friday in Riga, Latvia, where eurozone finance ministers are to assemble for their monthly gathering. Wolfgang Schäuble, the powerful German finance minister, said here last week that no one should expect the meeting on April 24 to resolve anything.

Swiss Franc Antics Threaten Banks’ Grip on Currency Trading (Bloomberg)
After the Swiss National Bank stunned the world in January by abandoning its price cap on the franc, some banks sought to reduce their losses by trying to renege on transactions. Dealers including Bank of America Corp., Barclays Plc and Goldman Sachs Group Inc. approached customers about changing some trades, according to people familiar with the discussions. The banks’ attempts to reopen deals present their rivals -- electronic trading venues and established exchanges -- with a new argument in their battle for market share. From Chicago to Stockholm, foreign-exchange operators are making an invigorated sales pitch: Do business through us rather than dealers who can cancel or alter your trades after they’ve been executed.

Gundlach Says Market Hasn’t Seen Full Impact of Fed Moves (Bloomberg)
The central bank has kept rates in the U.S. near zero and embarked on unprecedented monetary stimulus since the 2008 financial crisis. Known for his contrarian views and top returns, Gundlach said rating the Fed very highly at this point is “sort of like a man who jumps out of a 20-story building, and after falling 18 stories, says, ‘So far, so good.’”

Chiropractor Performs Exorcisms And Barters For Sex With Patients (HP)
An Iowa chiropractor is out of business after authorities busted him for performing exorcisms and treating patients in exchange for sex. Charles Manuel surrendered his license but could apply to get it back in 10 years as part of a settlement reached with the Iowa Board of Chiropractors reached in March. The board had accused the southern Iowa-based chiropractor of "unethical conduct…engaging in practice harmful or detrimental to the public," and "practicing outside the scope of the profession" in the settlement obtained on April 15 by The Des Moines Register.

Hedgies whose convictions were overturned are set free — for now (NYP)
After months in legal limbo, two hedge fund managers whose convictions were overturned in December are officially free men — at least for now. The convictions of Todd Newman and Anthony Chiasson were vacated and the indictment against them was dismissed with prejudice Thursday by federal judge Richard Sullivan, who presided over their trial.

Investors Who See ‘Froth’ in Market Go All In for Oil (Bloomberg)
As industry luminaries gather at the IHS CeraWeek Energy Conference in Houston this week to ponder the implications of $50-a-barrel crude, the money keeps piling into oil, with hedge funds, buyout firms and asset managers rushing to claim a spot at the table. “There is just so much money,” said Gladbach, who noted that more than $100 billion has been raised and set aside for energy investments by the likes of Blackstone Group LP and Carlyle Group LP.

For short-sellers in U.S. stocks, the agony just piles on (Reuters)
Through the end of March, Credit Suisse's index that measures the performance of short-biased funds is down 4.4 percent, while its market-neutral index - measuring funds that match long and short bets - is off by 1.6 percent. In comparison, CSFB's broad index of all hedge funds is up 2.6 percent.

Former Tullett Prebon Employee Pleads Not Guilty in Libor Case in Britain (Dealbook)
A former employee of the British brokerage firm Tullett Prebon Group pleaded not guilty on Friday in a criminal inquiry into the manipulation of a global benchmark interest rate. In October, the Serious Fraud Office of Britain charged the former employee, Noel Cryan, who worked at Tullett Prebon until 2013, with conspiracy to defraud in connection with the manipulation of the London interbank offered rate, or Libor. The fraud office has said the conspiracy took place from February to December 2009.

Firefighters discover parrots made calls for help in burning home (UPI)
Firefighters responding to screams for assistance in a burning Idaho home said they thought they were saving people but instead rescued a group of parrots. Emergency crews first heard the pleas for help as they approached the outside of the residence in Boise. "What was actually recorded was them saying 'fire, fire,' " Victor Islas with the Middleton Fire Department told KBOI. "That's what we got. 'Help. Fire.' Yeah. It's a smart bird, smart bird. So there was actually nobody besides the birds inside the house." The birds were removed and given oxygen. The cause of the fire is under investigation.

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Opening Bell: 05.22.12

JPMorgan's Losses Are Rival's Boons (WSJ) A group of about a dozen banks, including Goldman Sachs Group and Bank of America have scored profits that collectively could total $500 million to $1 billion on trades that sometimes pit them directly against J.P. Morgan's Chief Investment Office, according to traders and people close to the matter. Facebook 11% Drop Means Morgan Stanley Gets Blame (Bloomberg) Some investors say they felt misled by the underwriters. According to one London-based fund manager who asked not to be named, bankers indicated demand was so strong that he placed a bigger order than he thought he would get, leaving him with 40 percent more Facebook shares than anticipated. He sold most of that stock on the first day of trading. Morgan Stanley Cut Facebook Estimates Just Before IPO (Reuters) In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company. The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion. Deutsche Bank: 'Geuro' an Alternative to Greek Euro Exit (CNBC) Greece’s best chance of survival may be to stay in the euro but opt for its own parallel currency or “Geuro,” according to Deutsche Bank’s head of research, Thomas Mayer. In a research piece, Mayer said the Geuro would help Greece balance its primary budget without financial support from the 'Troika' of international lenders (the International Monetary Fund, the European Union and the European Central Bank). This would allow the incoming Greek government to reject the strict austerity program on which aid is contingent. IMF Chief, OECD Call For More Euro Debt Sharing (WSJ) International Monetary Fund head Christine Lagarde Tuesday called on euro-zone governments to accept more common liability for each other's debts, saying that the region urgently needs to take further steps to contain the crisis. "We consider that more needs to be done, particularly by way of fiscal liability-sharing, and there are multiple ways to do that," Ms. Lagarde told a press conference in London to mark the completion of a regular review of U.K. finances. Greece Needs To Accept Bailout Terms, Says South Korea (CNBC) South Korea’s President Lee Myung-bak says Greece needs to accept the terms of a $130 billion international bailout agreed in March and there will be no disbursement of money from the International Monetary Fund (IMF), unless the country does so. Floating bales of marijuana a mystery (OCG) The floating bundles, weighing a total of 8,068 pounds, were first seen by a boater near the harbor around 12:01 p.m. Sunday, U.S. Coast Guard Petty Officer Seth Johnson said. The bales were reportedly floating at least 15 miles off shore. The Orange County Sheriff's Department sent three Harbor Patrol ships to aid in recovering the marijuana. A Coast Guard cutter was also sent to assist. Michael Jimenez, a Border Patrol spokesman, called Sunday's incident unusual. In most scenarios when marijuana bales are found dumped in the water it is because a vessel is trying to flee from authorities. "At other events, they've dumped the bales to get rid of weight if they're being chased," he said. "Generally in these cases we're aware they're being dumped. What's more unusual is that the bales were floating with no boat in sight." Fitch Downgrades Japan (WSJ) Fitch Ratings downgraded Japan's sovereign rating to A-plus and said it was maintaining a negative outlook due to the "leisurely" pace of the county's efforts to remedy its dire fiscal situation. The firm's long-term foreign-currency rating had been AA and its local currency issuer default rating had been AA-minus. JPMorgan Veered From Hedging Practices At Competing Banks (Bloomberg) JPMorgan's biggest U.S. competitors say their corporate investment offices avoid the use of derivatives that led to the bank’s $2 billion loss and buy fewer bonds exposed to credit risk. Bank of America, Citigroup, and Wells Fargo. say the offices don’t trade credit-default swaps on indexes linked to the health of companies. JPMorgan is said to have amassed positions in such indexes that were so large they drove price moves in the $10 trillion market. The loss has prompted shareholders to join regulators in scrutinizing how banks use their investment offices to hedge risks and manage deposits they aren’t using for loans. JPMorgan’s competitors confine corporate-level trading mostly to interest-rate and currency swaps -- the most common derivatives -- and put a greater percentage of funds into U.S. government- backed securities such as Treasury bonds. Blackstone Moves Into Motel 6 (WSJ) Blackstone Group LP is acquiring discount lodging chain Motel 6 in a deal valued at $1.9 billion, as the private-equity firm continues to invest aggressively through its $10 billion real estate war-chest. Jon Corzine Got $8.4 Million In Year Before MF Global Collapse (NYP) Corzine received a bonus of $1.25 million in addition to his salary of about $1.8 million last year. He also was awarded $5.35 million in now-worthless stock options. Other MF Global insiders, including Chief Operating Officer Bradley Abelow, also saw big pay days. Abelow, who is still working at the firm, was paid $2.7 million in cash, including a $1.25 million bonus, plus restricted stock valued at $1.5 million. Woman Claims She Was Fired For Being "Too Hot" (Reuters) A New Jersey woman said on Monday that she was dismissed from a temporary job at a New York lingerie warehouse because her male employers felt she was too busty and dressed too provocatively for the workplace. Wearing a form-fitting sequined black dress and black leather, sequin-studded boots, Lauren Odes, 29, said her Orthodox Jewish employers at Native Intimates told her that outfit and others like it were "too hot" for the warehouse. "We should not be judged by the size of our breasts or the shape of our body," Odes said. Odes's attorney, celebrity lawyer Gloria Allred, said she filed a gender and religious discrimination complaint with the U.S. Equal Employment Opportunity Commission in New York.

Opening Bell: 02.20.13

Regulator set to weigh lifetime futures-trading ban for Corzine (NYP) Two directors of the National Futures Association will move tomorrow to ban Corzine from the multibillion-dollar futures trading industry in light of the scandalous collapse of MF Global — the commodity futures brokerage firm Corzine once headed. If the motion is approved, NFA would hold hearings to determine whether Corzine, MF’s former CEO, deserves a “lifetime ban” from the industry...Corzine, who declined to comment on the proposed ban, is reportedly looking to set up a hedge fund. An NFA ban would limit his ability to trade futures in any fund with outside investors, experts said. It could also hinder his ability to raise money from pension funds and other large investors, experts said. Corzine could also be asked to fork over as much as $250,000 for each violation, according to NFA rules. The proposed ban cites nine rule violations, which could ding the disgraced Corzine for as much as $2.5 million. Rhetoric Turns Harsh As Budget Cuts Loom (WSJ) With less than two weeks to go before the latest fiscal face-off, rhetoric heated up Tuesday as the political parties exchanged fire over whom to blame if looming spending cuts take effect. With Congress in recess this week, Republican and Democratic leaders sent lawmakers home armed with fact sheets about the $85 billion in across-the-board federal spending cuts due to start March 1, and talking points on how to blame the other side. Meantime, the White House and lawmakers are making no progress toward forging a compromise to avoid the reductions, which are known in Washington as the sequester. Thousands of Greeks Rally in Anti-Austerity Strike (Reuters) Tens of thousands of Greeks took to the streets of Athens on Wednesday during a nationwide strike against wage cuts and high taxes that kept ferries stuck in ports, schools shut and hospitals with only emergency staff. Beating drums and chanting "Robbers, robbers!" more than 60,000 people marched to parliament in the biggest anti-austerity protest so far this year. The two biggest labour unions brought much of crisis-hit Greece to a standstill during the 24-hour protest against policies which they say deepen the hardship of people struggling through the country's worst peacetime downturn. Judge Says Einhorn Hedge Fund May Succeed in Apple Case (Reuters) David Einhorn's hedge fund has shown a "likelihood of success" if his legal attack against Apple goes forward, a U.S. judge said, though he made no immediate ruling on fund's request to block a shareholder vote on a proxy proposal next week. U.S. District Judge Richard Sullivan on Tuesday reserved decision on a lawsuit by the fund, Greenlight Capital, to stop a Feb. 27 shareholder vote on an Apple proposal to end the issuance of preferred stock without investor approval. "Candidly I do think the likelihood of success is in favor for Greenlight," Sullivan said at a court hearing in New York. Big Anglo-French Buyout Planned (FT) A British-based private equity consortium is preparing a bid of 3.5 billion euros for French catering company Elior in what would be the biggest buyout in continental Europe since Lehman Brothers collapsed in 2008. CVC Capital Partners and BC Partners have teamed up to launch a buyout of Elior, underlining how confidence is returning to Europe's private equity sector. New York mom charged with child endangerment after hiring strippers to perform lap dances at her 16-year-old son's birthday party (NYDN) Judy Viger, 33, hired the women from a company called Tops in Bottoms and arranged for them to perform in a private room at the Spare Time Bowling Center in South Glens Falls on Nov. 3. At the party, the women performed what police describe as “personal and intimate” dances with the party guests, some of whom were as young as 13. Approximately 80 people attended the party, including a 13-year-old and many adults who later said they were outraged at the sexually charged performances. Police were alerted to the party activities after raunchy photos of the lap dances were posted online. The mother of a 15-year-old boy who attended the party saw some of the photos on her son’s Facebook page and alerted South Glens Falls authorities...The company providing the strippers said that the dancers were unaware that the kids at the party were underage, local CBS affiliate WRGB reported, and that the incident was being “blown out of proportion.” Heinz Deal Feeds Chatter About Food-Industry Consolidation (WSJ) The deal sparked speculation of what Heinz may want to buy and what other food company has the wherewithal to become a consolidator. With the potential for more tie-ups, that may also jar loose some brands or businesses—possibly Heinz's underperforming frozen-foods business—that could make a nice fit in another company's pantry. The speculation makes just about everyone a buyer or a seller. "Most of what food companies discuss at the conference will now be taken in the context of what it may mean for further industry consolidation or portfolio change," Barclays packaged-food analyst Andrew Lazar said. Brink’s Says Brussels Diamond Robbery Will Hurt Quarter’s Profit (Bloomberg) Brink’s Co., a provider of armored cars to transport valuables, said a diamond robbery at Brussels airport will have a “significant impact” on first-quarter earnings. A portion of the gems stolen two days ago was being shipped by Brink’s, the Richmond, Virgina-based company said today in a statement. The Antwerp World Diamond Centre has said about $50 million of rough and polished diamonds were stolen as the gems were being loaded onto a plane bound for Switzerland. Revel Into Chapter 11 (AP) Revel, the casino many people had hoped would turn around Atlantic City’s sagging fortunes, said yesterday that it will file for Chapter 11 bankruptcy protection in March, less than a year after it opened. The voluntary, prepackaged bankruptcy envisioned for late March will wipe away about two-thirds of its $1.5 billion in debt by converting more than $1 billion of it into equity for lenders. JPMorgan Leads U.S. Banks Lending Least Deposits in 5 Years (Bloomberg) The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their deposits in five years as cash floods in from savers and a slow economy damps demand from borrowers. The average loan-to-deposit ratio for the top eight commercial banks fell to 84 percent in the fourth quarter from 87 percent a year earlier and 101 percent in 2007, according to data compiled by Credit Suisse Group AG. Lending as a proportion of deposits dropped at five of the banks and was unchanged at two, the data show. New Grey Poupon 'Pardon Me' ad to air during Oscars (AP) After a 16-year hiatus, the mustard that mocked its own stuffy image in one of TV’s most famous commercials will once again take to the airwaves during the Feb. 24 Academy Awards show. The spot comes as Kraft Foods looks to boost sagging sales of the Dijon mustard, which is facing competition from a growing variety of high-end condiments on supermarket shelves. The new ad begins in the same way as the original — an aristocratic English gentleman is being chauffeured in the countryside, when another car pulls up alongside them at a stop. The back window rolls down and a second man asks in an over-the-top snooty accent, “Pardon me, would you have any Grey Poupon?”

Opening Bell: 3.3.16

Lynn Tilton sued by ex-employees; DoubleLine closing stock picking fund; Pressure mounts for Tesla short-sellers; Drive-Thru Sex Lands Couple Behind Bars; and more.

Opening Bell: 04.04.13

Bank of Japan Launches Easing Campaign (WSJ) At his inaugural policy board meeting Thursday, Haruhiko Kuroda convinced the nine-member panel to agree to a major expansion of government bond purchases, including buying longer-term debt, which is designed to drive down longer-term rates. The BOJ also broke free from some self-imposed limits that the previous leadership under Masaaki Shirakawa adhered to. "Our stance is to take all the policy measures imaginable at this point to achieve the 2% price stability target in two years," Mr. Kuroda said at a news conference following the two-day meeting, one of the most closely watched in the central bank's recent history. ECB holds fire on rates (FT) The European Central Bank kept its main refinancing rate on hold at 0.75 per cent on Thursday, hours after the Bank of Japan stunned investors with a dramatic easing plan that will see it double its monetary base over two years. ... The ECB has been reluctant to cut its own interest rates further, which might involve moving into negative territory on its 0 per cent deposit rate, and would face difficulty adopting a quantitative easing programme itself. Yet inflation has been falling below the bank’s 2 per cent target, unemployment is at a record high and the 17-nation bloc remains in recession. Weekly Jobless Claims Get Weaker as Outlook Dims (Reuters) Initial claims for state unemployment benefits increased 28,000 to a seasonally adjusted 385,000, the highest level since November, the Labor Department said on Thursday. It was the third straight week of gains in claims. Coming on the heels of data on Wednesday showing private employers added the fewest jobs in five months in March, the report implied some weakening in job growth after hiring accelerated in February. Enron's Jeff Skilling Could Get Early Release From Prison (CNBC) Former Enron CEO Jeffrey Skilling, who is serving a 24-year prison term for his role in the energy giant's epic collapse, could get out of prison early under an agreement being discussed by his attorneys and the Justice Department, CNBC has learned. Skilling, who was convicted in 2006 of conspiracy, fraud and insider trading, has served just over six years. It is not clear how much his sentence would be shortened under the deal. MF Global Trustee's Report Blasts Former CEO Corzine (WSJ) A risky business strategy, failure to improve inadequate systems, as well as "negligent conduct" by former Chief Executive Officer Jon S. Corzine and others contributed to the unraveling of MF Global Holdings Ltd., a new report said Thursday. The report, released by Louis J. Freeh, the trustee for MF Global Holdings—the parent company of the U.S. brokerage firm MF Global Inc. and other units—laid much of the blame at Mr. Corzine's feet, accusing him of implementing trading strategies with minimal oversight and exceeding board-approved limits for some European trades the company made under his stewardship. Nightclub dancer "Ruby" stands up for Berlusconi outside court (Reuters) Carrying a large sign reading "The Ruby case: Are you not interested in the truth any more?", she said she had been used as part of a deliberate campaign against Berlusconi by magistrates and sections of the press. "Today I realize that there is a war under way against him that I do not feel part of, but which has dragged me in and injures me," she said, reading a prepared statement. "I do not want to be a victim of this situation." KKR to Carlyle Target $3.6 Trillion in 401(k)s Accounts (Bloomberg) Carlyle Group LP (CG), Blackstone Group LP (BX) and KKR & Co. (KKR), which usually open their doors only to clients willing to commit at least $5 million, are lowering that threshold or offering investments directly to individuals, an effort to attract fresh cash amid lackluster fundraising. Their ultimate goal: a slice of the $3.57 trillion Americans have accumulated in their 401(k) retirement plans. ... “We definitely would like to be part of 401(k) platforms,” Michael Gaviser, a managing director responsible for individual investor products at KKR, which oversees $76 billion, said in an interview at the firm’s New York headquarters. “We think about it every day because there’s so much demand.” Tiger Cubs Report a Rough Q1 (II Alpha) The first quarter was especially tough for long-short hedge fund managers - and the biggest, most prominent Tiger Cubs were not immune. ... New York-based Tiger Global, for example, was up only 2.5 percent in March and 5 percent for the first three months. Moscow Tries to Reinvent Itself as Financial Hub (NYT) “The idea is to upgrade the position of Moscow in ratings, to become closer to the leaders of innovation and to the big boys of international financial centers,” Andrei V. Sharonov, the deputy mayor for economic affairs, who led a roadshow tour promoting the city in Asia, said in an interview. ... Certainly Moscow has a lot of wooing to do. A city of traffic-clogged highways and sprawling concrete apartment blocks, Moscow is widely known as a singularly difficult place to do business. It did attract the big banking houses from New York and London after the fall of Communism. But cronyism, the lack of transparency and shady accounting gave companies pause. Weak courts and selective enforcement encouraged companies to conduct business outside Russia. North Korea Warns U.S. It’s Authorized Nuclear Attack (Bloomberg) North Korea stepped up threats against the U.S, authorizing its military to conduct a potential “smaller, lighter and diversified nuclear strike” while again restricting South Korean access to a joint industrial zone. Mark Zuckerberg’s Childhood Website Was Slightly Uglier Than Facebook (DI) "The only site where a yellow eye blinks at you." Norwegian schools reschedule exams amid Bieber fever (AFP) Bieber, who is 19, sparked chaos in Oslo in May last year when dozens of teenagers chased the singer's car in the hope of following him to a free concert at a location that was only revealed at the last minute.

Opening Bell: 5.13.15

Democrats not feeling banking bill; Greece still screwed; Robin Hood raises $110 million; Hooters Casino Hotel sold; "Kim Jong Un Purges Defense Chief for Napping"; and more.