Tech Startups Feel an IPO Chill (WSJ)
Dropbox Inc. had no trouble boosting its valuation to $10 billion from $4 billion early last year, turning the online storage provider’s chief executive into one of Silicon Valley’s newest paper billionaires. But the euphoria has begun to fade. Investment bankers caution that the San Francisco company might be unable to go public at $10 billion, much less deliver a big pop to recent investors and employees who hoped to strike it rich, according to people familiar with the matter.
Hedge Funds are Bringing Back Everyone's Least Favorite Toxic Investment (Bloomberg)
Joshua Siegel is bringing back a version of one of the most toxic financial vehicles ever devised and arguing that this time it’s going to be different. His StoneCastle Financial is among the funds that are reviving the collateralized debt obligation, or CDO. CDOs stuffed with mortgages and their derivatives caused billions in losses around the world during the 2008 crisis. The CDO that StoneCastle put together is another kind. It’s backed by subordinated debt issued by about 35 community banks, some of them so small they don’t have credit ratings. Subordinated debt is paid off last in a bankruptcy, so issuers typically compensate buyers with higher yields than on other borrowings.
JPMorgan Plans Africa Expansion Even as Regulators Block Entry (Bloomberg)
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., which has offices in South Africa and Nigeria, said the bank wants a presence in more African countries to spur growth, even after regulators in Ghana and Kenya refused the lender entry.
Elderly Driver Takes Curve On 2 Wheels (HP)
The Aberdeen Press and Journal reports that the amateur stunt driver -- a.k.a. an elderly lady -- took this curve like a champ while leaving a gas station somewhere near Newport in Wales. If two wheels are good enough for a bicycle, why not for a car? Right? Facebook user Sian Jones, who is credited with first sharing the video, posted a message to say that "The Old Woman was fine, thats the reason I shared it."
It’s Not All Bad Economic News Coming Out of China (WSJ)
There is robust growth in China if you know where to look, some contrarian investors believe. Monday’s gross-domestic-product report offered the latest sign that the world’s second-largest economy is slowing. But the gloom is overdone, said some portfolio managers who are focusing on the nation’s booming service sector.
BNY Mellon's cost-cutting drive hit by software outage (Reuters)
Bank of New York Mellon Corp (BK.N) on Tuesday reported third-quarter results that beat expectations, but said its cost-cutting drive was interrupted by a summertime software outage that forced it to compensate clients. The large custody bank roiled much of the U.S. mutual fund industry in August when one of the accounting systems it uses to generate prices for funds collapsed. The problems lasted more than a week and affected about $400 billion in assets.
Pimco Sues Brazil’s Petrobras for Fraud (WSJ)
Add giant investment firm Pacific Investment Management Co. to the list of entities suing Brazil’s troubled state-run oil company Petroleo Brasileiro SA. California-based Pimco claims in its lawsuit that Petrobras misled investors about the scope and scale of a vast corruption scandal that has wiped billions of dollars in value from Petrobras’ books.
Cops: Guy Uses Summons to Wipe Butt, Then Throws It...AT A COP (Newser)
Authorities say the 45-year-old New Jersey man received a summons after being released on a municipal court charge of threatening to assault someone, and he allegedly placed it between his "butt cheeks," per the indictment, wiped it up and down, and threw it at a cop. The alleged incident took place back in June, MyCentralJersey.com reports. Greenwood was indicted on charges of throwing bodily fluids; the fourth-degree crime could put him behind bars for as many as 18 months.