Warren Buffett trashes Valeant, hedge fund fees; Marissa Mayer gets $55 million if ousted; Now You Can Get Pizza In A Pizza Box Made Out Of Pizza; and more.

Trading Case Embroils KPMG (WSJ) Scott London, the partner in charge of audits of Herbalife Ltd. and Skechers USA Inc. until KPMG fired him last week, told The Wall Street Journal Tuesday that "I regret my actions in leaking nonpublic data to a third party." Mr. London said his leaks "started a few years back," adding that KPMG bore "no responsibility" for his actions. "What I have done was wrong and against everything" he believed in, said Mr. London, who was based in Los Angeles for the accounting firm...Neither KPMG nor Mr. London named the recipient of Mr. London's tips. The recipient isn't associated with a hedge fund or other professional investor, said one person familiar with the matter. Obama Proposes $3.77 Trillion Budget to Revive Debt Talks (Bloomberg) Obama’s budget for fiscal 2014 proposes $50 billion for roads, bridges and other public works, $1 billion to spur manufacturing innovation and $1 billion for an initiative to revamp higher education, according to administration officials who briefed reporters and asked to not be identified. It renews his request to raise $580 billion in revenue by limiting deductions and closing loopholes for top earners. Obama again seeks adoption of the Buffett rule, named for billionaire investor Warren Buffett, to impose a 30 percent minimum tax on households with more than $1 million in annual income. The administration projects the deficit for fiscal 2014 would be $744 billion, or 4.4 percent of the economy. That would mark the first budget shortfall of less than $1 trillion since Obama took office. Soros Tells Germany It Should Leave The Euro (CNBC) "The financial problem is that Germany is imposing the wrong policies on the euro zone. Austerity doesn't work. You can't shrink the debt burden by shrinking the budget deficit," Soros, the founder and chairman of Soros Fund Management,said during a speech in Germany's financial center of Frankfurt on Tuesday. Ackman Expected To Stick With JCPenney (NYP) The New York hedge-fund tycoon is expected to stay put as JCPenney’s biggest investor, with a nearly 18 percent stake, and back the retailer’s scramble to repair the damage done by ousted CEO Ron Johnson, sources told The Post. That’s despite the fact that it was Ackman who installed Johnson at the helm of the company 17 months ago with an ambitious but doomed plan to overhaul the aging department-store chain. “The priority right now is stabilizing the company and finding a permanent CEO,” according to an insider close to the situation, adding that Ackman appeared to be playing a key role in the process. Blackstone Solicits Partners For Dell Bid (WSJ) Blackstone Group LP is talking to several technology companies about potentially joining its bid to take computer maker Dell private, people familiar with the matter said. Any technology firm that joins the private-equity giant's potential bid for Dell would likely be involved in the company's strategic direction as well as having a financial role, the people said. Blackstone has discussed a number of scenarios with prospective partners, including an equity stake, debt financing or a combination of the two, one of the people said. City officials say they're powerless to stop Time Square's growing hoard of costume-wearing hustlers (NYP) The city used to tell the furry fiends where they could set up. But a court decision last year ruled the characters could not be treated like vendors because they are entertainers who work for tips. “Our ability to treat these characters as vendors was eliminated,” said city lawyer Gabriel Taussig. “And, absent of vending laws, there is no other law that comes close to dealing with where they can be located.” The most recent trouble came when Osvaldo Quiroz-Lopez, who was dressed as Cookie Monster, got into a tussle with the toddler son of Bollywood star Parmita Katkar after the mom said she didn’t have the money to tip for a picture. His bust followed a slew of similar cases, including a man dressed as Super Mario who was accused of groping a woman and an Elmo who went on an anti-Semitic rant. Some Fed Members Fear Monetary Policy Effects (CNBC) Minutes from the most recent Fed meeting suggest that members have grown increasingly concerned that things could get messy if it continues its policies too far into the future. Among those concerns are instability to the financial system, a sudden rise in interest rates and inflation. Bill Gross Raises Holdings of Treasuries to Highest Since July (Bloomberg) Gross raised the holdings of Treasuries held in his $289 billion flagship fund at Pacific Investment Management Co. to 33 percent of assets last month, the highest level since July. JPM On A Whale Of A Roll (NYP) Jamie Dimon is hoping another solid performance from his sprawling bank can finally sink the London Whale. JPMorgan Chase will kick off bank earnings as it nears the anniversary of the embarrassing trading scandal, which Dimon famously dismissed back on April 13 of last year as a “tempest in a teapot.” The bank is expected to benefit from the continuing stabilization of the US economy that could allow it to release capital reserves again — a move that will have the effect of helping boost its overall earnings. Barclays analyst Jason Goldberg estimates that JPMorgan will report earnings of $1.33 a share — 6 cents less than consensus estimates of $1.39 a share. Some analysts believe that the bank will beat the consensus by a few cents after buying back shares and hiking its dividend to 38 cents. Soup heist ends with Tamarac turnpike arrest (Sun Sentinel) A Florida Highway Patrol trooper tracking the rig's GPS signal arrested the driver for the alleged soup heist on Florida's Turnpike in Tamarac about 12:30 a.m. Sunday. Eusebio Diaz Acosta, 51, of Orlando, was charged with two counts of grand theft — one for the tractor trailer and one for the cargo, with a combined value of $350,000. "These are very unusual facts," Broward County Judge John "Jay" Hurley said as he read from Acosta's arrest report Monday morning. "The court has seen many things stolen. … This is the first time the court's ever seen $75,000 worth of soup stolen."

Billions in FX settlements coming; Dan Loeb rips Warren Buffett; Lagarde comes down on banker pay; UBS bankers turned restauranteurs; "Naked Man Threatens Neighbors With AK-47"; and more.

Three Questioned In Libor Probe (WSJ) While the SFO didn't identify the men, one of them is Thomas Hayes, a former trader at UBS and Citigroup, according to people familiar with the matter. Authorities in multiple countries have been looking into Mr. Hayes as an alleged coordinator of a group of employees at multiple banks who sought to manipulate the London interbank offered rate, or Libor, according to people familiar with the case. One of the others arrested was Terry Farr, an employee of British brokerage firm R.P. Martin Holdings Ltd. in London who is currently on leave from the firm, according to a person familiar with the case. Mr. Farr has been under investigation for possibly helping bank employees coordinate their efforts to influence Libor, according to people familiar with the case. HSBC Mexican Branches Said to Be Traffickers’ Favorites (Bloomberg) From 2006 to 2010, the Sinaloa cartel in Mexico and the Norte del Valle Cartel in Columbia moved more than $881 million in proceeds through HSBC’s U.S. unit, said Lanny Breuer, assistant attorney general for the U.S. Justice Department’s criminal division. Breuer, along with U.S. Attorney Lorretta Lynch in Brooklyn, New York, announced yesterday the bank had agreed to pay at least $1.9 billion to settle money laundering probes. “These traffickers didn’t have to try very hard,” Breuer said at a press conference in Brooklyn. “They would sometimes deposit hundreds of thousands of dollars in cash in a single day into a single account using boxes designed to fit the precise dimension of the tellers’ windows in HSBC’s Mexico branches.” It Could Get Hairy Before 'Cliff' Deal: Greenspan (CNBC) "The best possible outcome is to take something like Simpson-Bowles as it came out originally and work off that," he said, of a deal to avoid the automatic tax hikes and spending cuts that go into effect at the end of the year. But he said that reaching a final agreement won't be an easy process, since the president believes he has a mandate following the election while House Republicans believe they, too, have a mandate. "I'm not at altogether clear how much control (Speaker) Boehner has over the overall caucus," Greenspan said. "At the end of the day it will all work out but it's going to be a bit hairy before we get there." Buffett Joins Soros in Effort to Raise Taxes on Estates (Bloomberg) Billionaireinvestors Warren Buffett and George Soros are calling on Congress to increase the estate tax as lawmakers near a decision on tax policies that expire Dec. 31. In a joint statement Tuesday, Buffett, Soros and more than 20 other wealthy individuals asked Congress to lower the estate tax’s per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45 percent from 35 percent. An estate tax structured this way will “raise significant revenue to reduce the deficit and fund vital services, will only be paid by the top one percent of estates, will raise more from the wealthiest estates” and will simplify compliance, said the statement. It also was signed by John Bogle, founder of mutual fund company Vanguard Group Inc., and former President Jimmy Carter. U.S. Probe of SAC Trading Said to Be Linked to 2010 Case (Bloomberg) A U.S. investigation of possible insider trading at SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen, is linked to a 2010 regulatory lawsuit over allegedly illegal trades in InterMune Inc, according to a person with knowledge of the matter. The Federal Bureau of Investigation and the Securities and Exchange Commission’s probe of trades that SAC Capital made in the Brisbane, California-based biopharmaceutical company is tied to a December 2010 SEC lawsuit against an investor, said the person, who asked not to be named because the matter isn’t public. The investor bought InterMune options before a European Union regulatory panel urged approval of the company’s drug Esbriet to treat a fatal lung disease, the person said, declining to elaborate. Man says law standing between him and sex acts with donkey is unconstitutional (NYDN) Lawyers representing the frisky farmhand thrown in jail for allegedly masturbating with a donkey are now fighting to have Florida’s statute banning sex with animals declared unconstitutional. “By making sexual conduct with an animal a crime, the statute demeans individuals like Defendant by making his private sexual conduct a crime,” attorneys for 32-year-old Carlos R. Romero wrote in a motion filed last week, the Ocala-Star Banner reported. Romero was cuffed at an Ocala farm back in September after farm proprietor Gerald James told police he saw Romero with his pants down as he was seemingly having sex with a donkey named Doodle in an equipment room on Aug. 15, according to police report obtained by thesmokinggun.com. Romero later pleaded not guilty to a first-degree misdemeanor charge of sexual activities involving animals. He announced last week that he wanted his case to go to trial. His attorneys argue that Florida’s statute violates the farmhand’s rights by stripping him of his “personal liberty and autonomy when it comes to private intimate activities.”They say the statute is unconstitutional because it doesn’t require the state to provide any proof of the animal’s suffering “or any proof of the sexual activity being non-consensual.” Inside The Risky Bets Of Central Banks (WSJ) While many national governments, including the U.S., have failed to agree on fiscal policy—how best to balance tax revenues with spending during slow growth—the central bankers have forged their own path, independent of voters and politicians, bound by frequent conversations and relationships stretching back to university days. If the central bankers are correct, they will help the world economy avoid prolonged stagnation and a repeat of central banking mistakes in the 1930s. If they are wrong, they could kindle inflation or sow the seeds of another financial crisis. Failure also could lead to new restrictions on the power and independence of central banks, tools deemed crucial in such emergencies as the 2008-2009 financial crisis. Freeport's $20 Billion Deal Stirs Backlash (WSJ) Freeport agreed last week to acquire energy explorers McMoRan Exploration Co. MMR +0.85% and Plains Exploration & Production Co. PXP -0.42% in transactions that will cost the Arizona mining giant about $20 billion including assumed debt. The deal will result in six directors with overlapping roles at Freeport and McMoRan Exploration receiving payouts for their shares totaling more than $130 million, according to securities filings. Some Freeport investors and analysts also have questioned the wisdom of a metals miner diving into the oil and gas business. They have taken issue with what they call conflicts of interests among the shared executives and directors at Freeport and McMoRan and the fact that the deal as structured doesn't require a Freeport shareholder vote. Fed Discourages Bank Dealmaking (WSJ) The Federal Reserve is pushing large U.S. banks to forget about all but the smallest acquisitions for a while amid a raging debate over the risk big lenders pose to the financial system. Man Drive 100 MPH To Wedding, Gets Arrested (Again) (NWI) Timothy N. Thompson, 23, of Valparaiso, was supposed to be married in a 7 p.m. ceremony. Instead, Thompson was arrested for resisting law enforcement, criminal recklessness and reckless driving. He was also cited for speeding and improper passing. According to police, an officer spotted Thompson about 6:30 p.m. Saturday speeding north in the center lane of Willowcreek Road. The officer estimated Thompson was driving 100 mph. Thompson allegedly continued to drive erratically, switching lanes abruptly and, according to the report, nearly wrecking. Police reported they followed Thompson as he turned into the parking lot of Nativity of Our Savior Church on Willowcreek Road, where he again nearly tipped over the Jeep Grand Cherokee. Once he entered the church's parking lot, three people -- later identified as relatives -- began flailing their arms and yelling at him. Thompson drove through the parking lot, accelerating and doing a "doughnut," creating a thick blanket of tire smoke, according to the report. When he stopped, Thompson told police he was late for his wedding and estimated he was doing "about 90" mph. He also told police he had his emergency flashers on and was sounding his horn to alert drivers. When an officer walked away from Thompson's vehicle, Thompson reentered his vehicle and drove toward the entrance of the church, where he was stopped by police again. "Oh, I thought you were done and I'm late for a party in Chicago," police reported Thompson saying. "It now means I have to drive really fast to get there." Thompson, who also told police he had just been released from jail that day, didn't make his wedding. He was transported to Porter County Jail and held without bond.

Europe, Central Bank Spar Over Athens Aid (WSJ) Greece faces a key Treasury-bill repayment in less than two weeks, and the money isn't there unless governments provide additional aid or the ECB agrees to lend Greek banks the money to roll over the debt. It is a particularly sensitive issue for the ECB, which is trying to create a credible financial backstop to hold the euro together while governments overhaul their economies and finances. But with each step the ECB takes to help Greece and others, it inches ever closer to rules that prevent it from printing money to help governments out of their debt problems. The bank is already facing accusations in Germany that it is straying from its primary mandate to keep inflation low. Iceland Sees Mortgage Bubble Threat From Foreign Cash (Bloomberg) Iceland’s lawmakers are searching for ways to keep their economy from lurching into another asset bubble as offshore investors forced to keep their money in the country channel it into the housing market. Apartment prices have soared 17 percent since April 2010 and are now just 1.7 percent below the pre-crisis peak in March 2008, Statistics Iceland estimates. The boom stems from currency restrictions imposed in 2008 to prevent the collapse of the Krona after the country’s biggest banks defaulted on $85 billion of debt. While those controls helped cauterize a capital exodus and propel a recovery, it left about $8 billion in offshore kronur that can only flow into Icelandic assets, inflating demand for housing and mortgage bonds. The government is now seeking to correct the imbalances, which risk plunging the island into yet another boom-bust cycle just four years after the banking industry dragged the economy through its worst recession since World War II. FBI Probes Rochdale Securities (NYP) The Stamford, Conn., broker dealer is teetering on the brink of extinction, the result of an unauthorized $1 billion purchase of Apple shares on Oct. 25, sources said. The trade of 1.6 million Apple shares was made — instead of a client’s order of one-tenth that amount, or 160,000 shares — to perpetuate the alleged stock manipulation scam, people familiar with the matter said...The alleged stock manipulation scam was being worked with at least one other unidentified trader not affiliated with Rochdale, sources said. Multiple sources said the alleged scam had already pocketed the traders roughly $20 million, sources said. Drop In Financial Deals Spurs One (WSJ) New York investment bank KBW made it through the Sept. 11, 2001, terrorist attacks, but it couldn't outlast a drought in financial-services deal making. KBW, which struggled in recent years at the hands of a sharp slowdown in its core business—financial-industry merger advice—agreed be acquired by larger rival Stifel Financial for $575 million. Berkshire Cash Nears Record as Buffett Extends Deal Hunt (Bloomberg) Cash surged 17 percent to $47.8 billion in the three months ended Sept. 30, Omaha, Nebraska-based Berkshire said in its quarterly regulatory filing Nov. 2. That’s $115 million less than the record at the end of June 2011. “He’s elephant hunting,” said Jeff Matthews, author of “Secrets in Plain Sight: Business & Investing Secrets of Warren Buffett” and a Berkshire shareholder. “And there aren’t a lot of elephants around.” Did Wall Street Just Give Up On Romney? (NetNet) John Carney says yes: "On the eve of the election, many financial professionals on Wall Street believe that Mitt Romney has lost the election. In phone conversations, email and instant messaging exchanges, and text messages with over 20 people in different jobs on Wall Street today the message I picked up was almost universal: The president will be re-elected." Christie: Hug From Springsteen Made Me Weep (WaPo) New Jersey Gov. Chris Christie told reporters Monday that he had an unexpected — and moving — conversation earlier with his hero, Bruce Springsteen. He also got a hug from the rock legend on Friday, at a benefit concert for victims of Superstorm Sandy. He later cried, calling the moment a highlight in a tough week. “Bruce and I had an opportunity to chat for a while Friday night… we hugged and he told me, ‘it’s official, we’re friends,” Christie said at a news briefing. President Obama was on the phone with the Republican governor Monday, discussing storm damage, when he briefly handed the line over to Springsteen. The rock legend is traveling on Air Force One as he campaigns for the president. Before the storm Springsteen refused to acknowledge Christie, whose budget cuts he has criticized. But in the wake of the disaster, which hit the Jersey Shore particularly hard, he has started to embrace his ardent fan. HSBC Dirty Laundry Costs (Bloomberg) HSBC Holdings said it’s likely to face criminal charges from US anti-money-laundering probes, and the cost of a settlement may “significantly” exceed the $1.5 billion the bank has set aside. The lender has made an additional $800 million provision to cover a potential settlement, adding to the $700 million it had earmarked. A Senate committee said in July that failures in HSBC money-laundering controls allowed terrorists and drug cartels access to the US financial system. Bharara insider streak on line (NYP) With a 6-0 record in trial convictions against defendants caught in his insider-trading probe, Wall Street’s top cop Wednesday will kick off his final trial emanating from that investigation. Already the insider-trading probe has resulted in 68 convictions — including guilty pleas, the biggest Wall Street crackdown since the 1980s. Squaring off against Bharara in Manhattan federal court are two well-heeled hedge-fund defendants: Anthony Chiasson, founder of the $4 billion hedge fund Level Global, and Todd Newman, a former money manager with Diamondback Global. The beginning of jury selection was delayed more than a week because of Hurricane Sandy. Chiasson and Newman stand accused of reaping more than $60 million in profits from trading confidential tips about computer maker Dell and graphics firm Nvidia. 13 People Trying To Trade Gas For Sex On Craiglist (BuzzFeed) It was probably inevitable that the gas shortages in New York and New Jersey would lead to ads like "I've got gas from Hess and looking for any sexy woman who may not want to wait in those long lines for hours and hours only to find the station empty when it's their turn. So let me know, I'm sure we could work something out to get your tank filled and empty mine. Call or text."

Goldman conducts company-wide email review (Reuters) Goldman Sachs Group Inc has begun scanning internal emails for the term "muppet" and other evidence that employees referred to clients in derogatory ways, Chief Executive Lloyd Blankfein told partners in a conference call this week, according to people familiar with the call...It was not clear when the search would be completed or what actions, if any, Goldman would take if the search turns up derogatory comments. Jobless Claims in U.S. Fall to Lowest Level in Four Years (Bloomberg) Jobless claims decreased by 5,000 to 348,000 in the week ended March 17, the fewest since February 2008, Labor Department figures showed today in Washington. The median forecast of 46 economists in a Bloomberg News survey projected 350,000. The number of people on unemployment benefit rolls and those getting extended payments also fell. ‘Worst Still to Come’ for Europe Says Citi Economist (CNBC) Despite high-profile measures such as the Greek debt deal and mass pumping of liquidity into the banking system, Europe’s problems have merely been delayed for another day, Willem Buiter, chief economist at Citi, told CNBC. “We have really just paused for breath,” he said. “It (the long-term refinancing operation) really hasn’t solved the problem, and for Europe the worst is still to come.” On Wall St., Keeping a Tight Rein on Twitter (Dealbook) So a cottage industry has emerged. Adept start-ups act as guides on Wall Street’s social media adventure, providing the software that helps firms comply with regulations that date to a sleepier era of communication. “Here they were, these organizations that had never used the social networks because they had completely locked down access,” said Chad Bockius, the chief executive of Socialware, a start-up based in Austin, Tex., that advises financial firms on social media. “This is the same thing we saw when people started to use the Internet for business purposes.” Mr. Bockius, 35, says his company was the first to offer social media compliance products for the financial industry. Socialware sells software that can archive messages, house a library of prewritten content and allow compliance officers to oversee postings. Morgan Stanley Smith Barney, which Mr. Bockius holds up as one of his most enterprising clients, gave about 600 of its 17,800 financial advisers access to Twitter and LinkedIn last summer, and now plans to expand those ranks. “We’re trailblazing, so to speak,” said Lauren W. Boyman, who runs social media at Morgan Stanley Smith Barney. “Even with the restrictions that we have, we’ve seen a lot of success.” John Edwards is First Name Uncovered in 'Millionaire Madam' Investigation (DNAI via Daily Intel) Edwards allegedly hooked up with one of Gristina’s high-end hookers in 2007 when the dashing pol from North Carolina brought his then high-flying presidential campaign to the Big Apple. The one-night fling allegedly took place at an Upper East Side hotel suite and was arranged by an aide with help from a New Yorker familiar with Gristina’s prostitution ring, sources said...“Most of the women don’t have any idea about the identities of the men they sleep with,” a source explained. “How would they know a money man from Wall Street or the face of a lawyer or banker who shows up? “But the face of the national politician?” the source rhetorically asked. “She knew.” Volcker Says U.S. Needs Reforms in Finance, Government (Bloomberg) “It is not only our economic prosperity that’s in jeopardy, but our national security and our ability to play a constructive role in a changing world,” said Volcker, 84. Volcker said that progress has been made toward improving financial regulatory oversight, capital and liquidity standards and rules for derivatives. He said more needed to be done to regulate money market mutual funds, which he called “a new systemic risk,” and to rebuild a private market for home mortgages to replace the government-sponsored entities that dominate the business. “The reform report card still reads, ‘Promising but definitely incomplete,’” Volcker said. More Wings, Please — Signs Small Biz Is Improving (AP) Some diners at Hurricane Grill & Wings had been limiting themselves to a small order of the chain's saucy chicken wings and a glass of tap water. These days, many of those people are upgrading to a bigger order of as many as 15 wings and a soda. For Hurricane Grill, which sells its wings in more than 30 varieties of sauces, the larger plates and the sodas are a sign that customers are OK about spending a little more when they go out to eat. The evidence may not be a big economic report like gross domestic product or factory orders in a region, but small businesses have their own indicators that the economy is improving. Rich Would Skirt 'Buffett Rule' Report Shows (WSJ) The administration's proposal to end the Bush-era tax cuts for couples making more than $250,000 would raise about $850 billion over the next decade. Mr. Obama also wants to limit the value of many deductions for families making more than $250,000. That would raise a further $584 billion over the decade. But millionaires likely would find legal ways to avoid paying higher taxes under another of Mr. Obama's new tax proposals, his so-called "Buffett Rule," a separate congressional estimate found. The proposal—spelled out in Mr. Obama's State of the Union address but not included in his budget—would impose a 30% minimum tax rate on those who make more than $1 million a year. It's named for the billionaire investor Warren Buffett, who advocates higher taxes on the very wealthy. Taxpayers' likely efforts to sidestep the rule's impact mean it would raise about $47 billion in extra revenue over the next decade, according to a new estimate by the nonpartisan Joint Committee on Taxation, a congressional advisory body that functions as the official congressional scorekeeper for legislation affecting government tax revenues. The Tax Policy Center had estimated the Buffett rule would raise about $114 billion over the next decade. Monster titanoboa snake invades New York (AP) New York commuters arriving at Grand Central Station will soon be greeted by a monstrous sight: a 48-foot-long, 2,500-pound titanoboa snake. The good news: It's not alive. Anymore. But the full-scale replica of the reptile -- which will make its first appearance at the commuter hub on March 22 -- is intended, as Smithsonian spokesperson Randall Kremer happily admitted, to "scare the daylights out of people" -- actually has a higher calling: to "communicate science to a lot of people." The scientifically scary-accurate model will go a long way toward that: If this snake slithered by you, it would be waist-high and measure the length of a school bus. Think of it as the T-rex of snakes.