Opening Bell: 9.22.15

Blankfein has lymphoma; UBS sued over Puerto Rico; Greece closes in on $3.4 billion; "Woman, 27, Arrested For Pooper Scooper Attack On Her Live-In Boyfriend": AND MORE.
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Goldman Sachs’s Blankfein Says He Has ‘Highly Curable’ Lymphoma (Bloomberg)
“My doctors have advised me that during the treatment, I will be able to work substantially as normal, leading the firm,” Blankfein, 61, said Tuesday in a statement. “My own expectation is that I will be cured.” Blankfein, who has been CEO of the New York-based firm since 2006, said he underwent a series of tests late this summer after not feeling well. A biopsy last week confirmed lymphoma, he said, adding that he will reduce some previously planned travel during the treatment period.

Greek Bank Review Holds Key to 3 Billion-Euro Payment (Bloomberg)
Greek Prime Minister Alexis Tsipras will need to enact banking-sector reforms to unlock 3 billion euros ($3.4 billion) in bailout funds set aside for Europe’s most indebted nation, according to Thomas Wieser, head of the Euro Working Group. The money is slated to be paid out in two installments if Tsipras and euro-area nations can reach a deal on specific conditions for release, Wieser, who prepares euro-area finance ministers’ meetings, said in an interview on Monday in Brussels.

How UBS Spread the Pain of Puerto Rico's Debt Crisis to Clients (Bloomberg)
Angry customers have filed hundreds of arbitration claims with the Financial Industry Regulatory Authority. They’re seeking more than $1.1 billion in damages from UBS after huge losses in the tax-free bond funds, sold as high-income investments that would preserve their capital, and in the bonds themselves. Three of UBS Puerto Rico’s five offices have closed since 2010, and nearly 60 of the unit’s 140 financial advisers have departed. The bank’s retail brokerage market share on the island has dropped to 33 percent from 48 percent over that period.

Celeb finance firm accused of racist digs toward client Rihanna (NYP)
Flynn Family Office partner Alan Kufeld regularly made obscene comments and once described his hopes that a new intern had a body like her mom, who he said “is banging the drummer from [heavy metal band] Skid Row,” according to the Manhattan federal court lawsuit...Kufeld would regularly comment on how hot FFO’s female clients in the entertainment sector were, making the “not too dark” comment about Rihanna before giving a “monologue on what Caribbean nationalities were the most attractive based on skin tone” and discussing “sex tourism and the relative hotness of Asian women,” the suit states.

Domino's Accidentally Delivers $1,300 In Cash Instead Of Chicken Wings (HP)
Mike Vegas, a bartender at AT&T Park in San Francisco, told NBC Bay Area he thought he was going to have the night off so he ordered some pizza and wings. But when he got called into work, he stuck the box of wings in the fridge unopened. "I got off work really late, and when I came back home I found the cash in the delivery box -- a refrigerated deposit," Vegas told the station. "I was rubbing my eyes at 5 a.m., laughing at myself." Vegas said the driver had called looking for the missing money, but since he had been at work, he ignored the calls.

SEC Takes Aim at Risk in Asset Management (WSJ)
The agency is scheduled to vote on proposed rules requiring mutual funds and exchange-traded funds to get a better handle on how they would survive periods of large investor withdrawals. The measure is the second in a series of five initiatives the SEC is developing to address ongoing concerns that oversight of firms like BlackRock Inc. and Fidelity Investments has not kept pace with potential risks their funds may pose to the financial system.

Fed Decision to Hold Steady Was a ‘Close Call’ (WSJ)
In fact, central bankers say they weren’t far from taking that first step to start raising short-term interest rates.

Judge Proves Ally to Government on Insider-Trading Ruling (WSJ)
At issue is a decision last year by the Second U.S. Circuit Court of Appeals in New York that overturned two insider-trading convictions and said the government had stretched the limits of the law too far. Since then, U.S. District Judge Jed Rakoff, who has long had a reputation for being a burr in the side of lawyers for the Justice Department and Securities and Exchange Commission, has issued several rulings playing down the appellate-court decision’s impact and construing it narrowly.

Industry warns over failure to reach EU-U.S. deal on derivatives (Reuters)
Failure by European Union and U.S. regulators to iron out differences in their derivatives rules would prompt "catastrophic" attempts by market users to pull out from American clearing houses, a senior industry official has warned...Brussels and Washington have been locked in talks over smoothing out rule clashes to avoid the global $630 trillion market for interest rate, credit default and other swaps from fragmenting permanently and bumping up costs.

Woman, 27, Arrested For Pooper Scooper Attack On Her Live-In Boyfriend (TSG)
Megan Smith, 27, was arrested for battery around 5 AM Monday when an argument about “living arrangements” with victim Alexander Buck allegedly “turned physical.” Police charge that Smith “picked up a pooper scooper and hit the victim in the face with it multiple times.” The pooper scooper strikes knocked Buck’s glasses off his face and left him with “multiple abrasions to his left eyebrow and forehead.” Buck, who fled the couple’s Bradenton home and called 911, subsequently declined treatment from an EMS team dispatched to the residence. During police questioning, Smith reportedly copped to striking Buck with the scooper, which is used to handle cat litter. “She stated she hit him because the victim would not stop arguing with her,” an investigator noted.

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Opening Bell: 11.28.12

Gorman Enlists Morgan Stanley Workforce in Fiscal Cliff Campaign (Bloomberg) Morgan Stanley Chief Executive Officer James Gorman called on the investment bank’s employees to pressure U.S. lawmakers into reaching an agreement that averts the so-called fiscal cliff. “No issue is more critical right now for the U.S. economy, the global financial markets and the financial well-being of our clients, which is why I am asking you to participate in the democratic process and make your voice heard,” Gorman wrote in a memo, a copy of which was obtained by Bloomberg News. The message went to about 30,000 U.S. workers including 16,000 financial advisers, said James Wiggins, a company spokesman. Buffett Expects 'Fiscal Cliff' Fix, But Not By December 31 (CNBC) Buffett didn't outline a specific solution that he prefers, saying he could "go with any number of plans." But he thinks the end result should have U.S. revenues at 18.5 percent of GDP and expenditures at 21 percent. Those levels would be "sustainable" because the ratio of the nation's national debt to GDP wouldn't increase, and might even fall over time. SAC Capital Received a Wells Notice From SEC Last Week, May Be Subject to Civil Charges (CNBC) Story developing. EU Approves Spanish Banks' Restructuring Plans (WSJ) European Union regulators Wednesday gave the green light to nearly €40 billion ($51.78 billion) in euro-zone funding for Spain's stricken bank sector, as it approved the restructuring plans for four lenders. BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia SA BVA.MC will require a total of €37 billion for their recapitalization plans, the regulators said. The European Union's Competition Commissioner, Joaquin Almunia, said bondholders would face losses. Will Italy Need A Bailout In 2013? (CNBC) “We still see as our baseline scenario that Italy will likely be forced to ask for an international bailout at some point in 2013,” said Citi Analyst Giada Giani in a report on the country. “Italian economic fundamentals have not really improved, despite some improvement in market conditions. The negative feedbacks from fiscal austerity on growth have been severe, as the ability of the private sector to absorb fiscal tightening by lowering its saving rate is limited.” EU Agrees New Controls for Credit Rating Agencies (Reuters) European Union countries and the bloc's parliament agreed on Tuesday to introduce limited controls on credit ratings agencies after their judgment was called into question in the debt crisis. Michel Barnier, the European commissioner in charge of regulation who helped broker a deal on the new law, said it aimed to reduce the over-reliance on ratings and establish a civil liability regime. The new rules should make it easier to sue the agencies if they are judged to have made errors when, for example, ranking the creditworthiness of debt. Deutsche Bank Sued Over Home Mortgage-Backed Securities (Bloomberg) Deutsche Bank, Germany’s largest lender, was sued by a trustee over claims that some securities sold by a unit of the bank were backed by home-mortgage loans taken out by fraudulent borrowers. DB Structured Products Inc.’s pool of more than 1,500 mortgages included more than 320 that were defective, HSBC Bank USA (HSBA), acting as trustee, said in a lawsuit filed yesterday in federal court in Manhattan. “Borrowers lied, with or without the knowledge of the loan originators themselves, concerning how much money they owed, how much money they made, whether and where they worked, and where they lived,” HSBC claimed. “A handful of instances of such inaccuracies is perhaps to be expected. Hundreds of instances of borrower dishonesty is not.” HSBC seeks unspecified damages and said Frankfurt-based Deutsche Bank must buy back the breaching loans under its agreements with the trustee. Woman Jailed For Attacking Beau Over Bad Sex (TSG) A Florida woman was jailed last night for a post-coital assault on her boyfriend, an attack the victim says was prompted when only he climaxed during a sexual encounter in the couple’s residence. Raquel Gonzalez, 24, was arrested Monday afternoon for felony domestic battery and booked into the Manatee County lockup, where bond has been set at $750. According to a Manatee County Sheriff’s Office report, Gonzalez and Esric Davis, 30, are “boyfriend and girlfriend who live in the same home and are involved in a sexual relationship.” Deputies noted that Davis and Gonzalez were “involved in sexual intercourse” when “Esric then climaxed and Raquel did not.” Which reportedly angered Gonzalez, who allegedly “began hitting and scratching [Davis], causing scratches near his eye and nose.” Davis told investigators that Gonzalez “goes off” frequently and that she had previously been physical with him. Be right back, hon ... with a $53M tip (NYP) Anthony Chiasson, the founder of hedge fund Level Global, started getting illegal insider tips in 2008 when the $4 billion firm was going through a rough patch, a key government witness told a jury yesterday. The witness, Sam Adondakis, a former analyst who worked for Chiasson, said he told his boss tips on Dell came straight from the tech giant...The Dell tip that netted the firm millions wasn’t without its drama. On Aug. 27, the day before Dell announced its results, Chiasson, Level Global co-founder David Ganek, and Greg Brenner, fund executive, held a conference call about their Dell position. At the time, Adondakis, on vacation in the Hamptons, was sitting down to breakfast with his girlfriend, he said yesterday. Adondakis said he remembers the conference call well because his girlfriend “was annoyed” by the conversation, which took him away from their meal for a good 40 minutes. Banks Feel Currency Pinch (WSJ) Banks reported sharp drops in currency-trading revenue last quarter, in many cases deepening a slump that began early this year. Even Deutsche Bank AG, the world's biggest foreign-exchange bank, reported revenue "significantly lower than the prior year" even as the volume of transactions it handled hit a record high in the third quarter. Banks are struggling on two fronts. A calm in currency markets relative to the swings of the last few years has reduced overall trading activity. And the explosive growth of electronic trading has brought transparency to a roughly $4 trillion-a-day market, making buyers and sellers less reliant on big banks to pair them up. Executives' Good Luck in Trading Own Stock (WSJ) Among 20,237 executives who traded their own company's stock during the week before their companies made news, 1,418 executives recorded average stock gains of 10% (or avoided 10% losses) within a week after their trades. This was close to double the 786 who saw the stock they traded move against them that much. Most executives have a mix of trades, some that look good in retrospect and others that do not. 'Two and a Half Men' star apologizes for offending cast and crew (CNN) A day after a video posted online showed him describing "Two and a Half Men" as "filth" and advising viewers to stop watching the sitcom, actor Angus T. Jones apologized to the show's cast and crew Tuesday. "I apologize if my remarks reflect me showing indifference to and disrespect of my colleagues and a lack of appreciation of the extraordinary opportunity of which I have been blessed," Jones said in a statement released by his publicist. "I never intended that." The 19-year-old actor -- who plays Jake Harper, the CBS sitcom's "Half" man -- didn't detail what motivated him to make comments...In the video, the actor, who's been on the show since 2003, repeatedly asks viewers not to watch the sitcom. "I'm on 'Two and a Half Men,' and I don't want to be on it," Jones said. "You cannot be a true God-fearing person and be on a television show like that. I know I can't. I'm not OK with what I'm learning, what the Bible says, and being on that television show. You go all or nothing."

Opening Bell: 9.3.15

Private equity eyes Petco; Hedge fund losses; "Who Wants to Ring the Closing Bell on Bad Days?"; Puerto Rico still not doing so hot; "Hawaii woman announces plan to use dolphin as a midwife"; and more.

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Opening Bell: 12.19.17

UBS has some 'splaining to do in Puerto Rico; hedge funders may get a nasty surprise come bonus season; money markets are going haywire; the returns on everything; Bob Dylan's Christmas lights; and more.

Opening Bell: 4.19.16

Puerto Rico's bondholders feud over rescue; The top undergrad business schools will surprise you; Dad uses Millennium Falcon drone to remove daughter's tooth; and more.

Opening Bell: 7.29.15

Puerto Rico sitch not great for US; Hedge funds like London; Disneyland Paris probe; Twitter; Yelp; Brazil; "Fugitive-turned-actor arrested after U.S. Marshals read film write-up"; and more.

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Opening Bell: 7.21.16

Dimon, Buffett, other CEOs meet in secret; Hedge funds sue Puerto Rico's governor; Platinum Partners to liquidate main funds; Woman stabs husband during doughnut dispute; and more.

Opening Bell: 06.08.12

Capital Rule Is One Size Fits All (WSJ) The Federal Reserve shocked bankers Thursday by approving a proposal that would force even the smallest lenders to comply with the elaborate international bank-capital standards known as Basel III. The draft requirements would apply to all 7,307 U.S. banks, according to a proposal circulated by the Fed. Many bankers had expected regulators to exempt some small lenders from the new rules, which are aimed at shoring up the biggest global banks whose troubles fueled the financial crisis. While the core Basel III rules will apply to all banks, other aspects of the new regime single out the biggest, most complex banks for tougher treatment than their smaller peers. The Fed, for instance, has embraced slapping a handful of the biggest U.S. banks with a capital surcharge of between 1% and 2.5%. The Fed has yet to introduce the specific proposal. Europe's Vulnerable East Braces for Possible Greek Exit (WSJ) Government officials and central bankers in the European Union's eastern wing say they are in better shape to weather any storm than they were four years ago when the collapse of U.S. investment bank Lehman Brothers sparked a global financial crisis. But they are still vulnerable. Investors fearful that Greek elections next week will spark Athens's disorderly departure from the euro have already been selling Polish, Hungarian, Romanian and Czech assets, hitting local currencies and stock markets. Hungarian Prime Minister Viktor Orban, whose heavily indebted country is considered especially at risk, said "work has begun" on strengthening defenses "so that such a quake doesn't bring Hungary down on one knee." Euro Breakup Precedent Seen When 15 State-Ruble Zone Fell Apart (Bloomberg) The 1992 Soviet experience tells us “an exit like this is messy and leads to loss of income and inflation, and people are right to be scared of it,” said Harold James, a professor of history at Princeton University. 'Bargain' Bid as Warren Buffett Lunch Auction Goes Into Final Day (CNBC) With just over 24 hours to go, the high bid for lunch with Warren Buffett is just over $200,000. That's around 8 percent of last year's record $2,626,411 winning bid by Ted Weschler, who is now working for Buffett as a Berkshire Hathaway portfolio manager. Ted also won the previous year's auction with a bid of $2,626,311. Bear Stearns Accord Turns Another Page (WSJ) Former top executives at Bear Stearns Cos., including James E. Cayne and Alan "Ace" Greenberg, have agreed to a $275 million settlement of a shareholder lawsuit over the demise of the Wall Street firm four years ago. The deal with investors led by the State of Michigan Retirement Systems puts to an end the last major dispute surrounding the demise of Bear Stearns, whose near-collapse in March 2008 marked the beginning of the worst period of the financial crisis. Mr. Cayne, a former CEO, and Mr. Greenberg, who was Mr. Cayne's mentor and predecessor, and the other former top executives named in the lawsuit won't have to pay any of the settlement, according to people close to them. The money will come from a $9 billion fund set aside by J.P. Morgan Chase. for litigation and other expenses in 2008, when it bought Bear Stearns in a cut-price deal blessed by the government. Woman who allegedly ran down boyfriend after he damaged her iPhone says she still loves him (NYP) Jasmine Diaz told her Bronx Central Booking cellmate that she is still in love with Franklyn Hernandez, her 17-year old boyfriend who she's accused of running down with an SUV after he accidentally damaged her iPhone. “She says she loves him and she feels like s ---t, ” the 21-year-old cellmate, Michelle Rodriguez, said after being released on a shoplifting charge. Diaz, 25, was held without bail after her arraignment on manslaughter and leaving the scene of an accident for allegedly mowing down Hernandez early Wednesday morning a block away from his home on Morris Ave and E. 165th St. “Franklyn jumped in front of the vehicle and I just kept going,” she told investigators, a prosecutor said in court. Wearing a matching blue jean jacket and pants, Rodriguez said Diaz was pensive while awaiting her turn to see the judge. Bernanke Sees Risks To Economy From Europe To U.S. Budget (Bloomberg) Bernanke also warned lawmakers that “a severe tightening of fiscal policy at the beginning of next year that is built into current law -- the so-called fiscal cliff -- would, if allowed to occur, pose a significant threat to the recovery.” Prosecutors Hone Gupta Case (WSJ) Using a variety of charts and graphs, Mr. Barnacle described a repetitive, and potentially damning, pattern: Mr. Gupta would call into meetings by the boards or committees at Goldman or Procter & Gamble Co, where he was also a director, and shortly thereafter a call from one of his associated phone lines would reach out to Mr. Rajaratnam. Harvard Professor: 'Greece Is Beyond Repair' (CNBC) “The best situation for Greece is to leave the euro zone, devalue a new currency, and be able therefore to grow again,” he said. “Letting Greece go will be painful in the short run but will be better for Greece, and for Europe, in the long-run,” said Feldstein, who is also president emeritus of the U.S. National Bureau of Economic Research, and also served as chief economic advisor to President Ronald Reagan. Lightbulb eating record holder charged in string of bank robberies (NYP) R.J. Williams, 22, who holds the world record for wolfing down a light bulb in 33 seconds, was busted yesterday after a failed bank robbery attempt in Brooklyn, cops said. Williams, who lives on the Upper West Side, allegedly scored nearly $14,000 after knocking off seven branches in Manhattan, Brooklyn, Queens and the Bronx. He was nabbed when he fled an Apple Bank yesterday in Midwood. Williams had begun to write a note to a teller on a deposit slip at one of the counters when employees started staring at him, police said, because he previously tried to rob the bank on Friday.