Fed to Give Panel Names of Staffers (WSJ)
The Federal Reserve is providing a congressional panel with the names of its staffers who had contact with a consulting firm that published details of market-sensitive policy deliberations in October 2012, “with the understanding that the names will be kept confidential,” Fed Chairwoman Janet Yellen said...In October 2012, the day before the Fed released the minutes of its September 2012 policy meeting, Medley Global Advisors sent a report to its clients with several sensitive details that subsequently appeared in the minutes. A central bank probe into the matter found no major breaches of its communications policies. The Fed’s investigation found a “few” Fed staffers had contact with Medley before the report but didn’t identify them.
Credit Suisse dropped SEC waiver request amid opposition (Reuters)
Credit Suisse has quietly withdrawn a request for a waiver to raise capital more easily, after U.S. Securities and Exchange Commission staffers told the bank in recent weeks it would not win approval, people familiar with the matter told Reuters. The bank had applied for the waiver following its agreement last year to pay $2.5 billion to resolve criminal charges that it helped wealthy Americans evade U.S taxes. The criminal charges automatically triggered a federal law that deprives the bank for three years of the privilege of being known in the market as a "well-known seasoned issuer," or WKSI. The designation lets public companies bypass SEC approval and raise capital "off the shelf" - a process that is speedier and more convenient.
Greenlight’s Einhorn Attacks Frackers, Says Pioneer Burns Cash (Bloomberg, earlier)
David Einhorn, who runs hedge fund Greenlight Capital, criticized Pioneer Natural Resources Co. for spending too much money without returns and called it the “motherfracker.” “We think Pioneer generates a negative equity returns on capex” he said at the Sohn Investment Conference in New York on Monday. Pioneer shares fell 2.6 percent to $167.13 at 12:23 p.m. in New York. Einhorn spoke negatively about fracking companies and listed several in his slide presentation, including Concho Resources Inc., EOG Resources Inc., Whiting Petroleum Corp. and Continental Resources Inc.
EU Cuts Greek Outlook as Officials Press Case on Bailout (Bloomberg)
In its spring forecasts, published in Brussels on Tuesday, the commission sees the Greek economy growing just 0.5 percent this year, down from 2.5 percent in February. The projections come as Greek officials fan out to press their case to European policy makers on a deal on the country’s failing finances.
New York customs officers find cocaine in crotch of man's underwear (UPI)
U. S. Customs and Border Protection said officers at the airport searched Romario Lewis, a Jamaican citizen who flew April 16 to New York from Kingston, Jamaica, and discovered he was hiding two packages of cocaine in the groin area of his underwear. Investigators said the packages totaled 1 pound -- approximately $19,000 worth of cocaine.
Berkshire’s Warren Buffett Shows His Teddy Bear Image Has Tough Side (Dealbook)
Some in Mr. Buffett’s audience questioned his recent embrace of the Brazilian investment firm 3G, which Berkshire has supported by investing alongside it in deals for Burger King and the recent merger of H. J. Heinz with Kraft Foods. One shareholder expressed concern that 3G’s zero-based budgeting approach — which looks at every cost as something to consider cutting — is out of sync with Mr. Buffett’s aspiration to “balance capitalism with compassion,” as the questioner put it. But that disconnect may be misplaced. Mr. Buffett’s avuncular ways often disguise another truth: He isn’t always a cuddly teddy bear. While he says he prefers a hands-off management approach, he runs a pretty lean organization. “We do have some businesses where we probably have more people than we need, and I don’t do anything about it,” he said. “But that doesn’t mean that I endorse it. I basically tolerate it.” At another point, Mr. Buffett said: “Efficiency is required over time in capitalism.”
BofA moves to head off investor rebellion (FT)
Last month Glass Lewis, the influential proxy advisory firm, recommended that shareholders vote against the reappointment of the chair of the bank’s governance committee at this year’s annual meeting, to be held in Charlotte on Wednesday. ISS went one step further, saying that the entire governance committee — 4 of 13 board members — should be kicked out. “Instead of trusting shareholders to approve its change, the board acted alone,” ISS wrote. “The old adage — it is easier to ask forgiveness than it is to seek permission — is not a principle of good governance.”
Latest Victim of California’s Drought: Water Bonds (WSJ)
Some investors are steering clear of the bonds from hard-hit areas of the U.S. west, amid concerns that restrictions on water use will drive down water-authority revenue. Some authorities may have a tough time raising rates to offset that lost income. If shortages persist, credit ratings may weaken and prices for outstanding bonds fall, according to analysts and rating firms.
College Student Spits, Sprays Windex On Roommate's Food, Cops Say (HP)
Surveillance video shows King spitting in containers of food stored in a fridge in the home she shared with two other women. All three women attend the University of South Carolina. King's roommates told Columbia Police that they set up cameras in the apartment because they had recently argued and tried unsuccessfully to get the suspect to move out. The roommates said they were worried about how the suspect might retaliate, according to the State newspaper.