Opening Bell: 12.17.15

Martin Shkreli arrested; Beijing stock-market rescue probed; Iranian bonds are coming; Putin loves Trump; and more.
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Shkreli, CEO Reviled for Drug Price Gouging, Arrested on Securities Fraud Charges (Bloomberg)
Martin Shkreli, the boyish drug company entrepreneur, who rocketed to infamy by jacking up the price of a life-saving pill from $13.50 to $750, was arrested by federal agents at his Manhattan home early Thursday morning on securities fraud related to a firm he founded.

KaloBios Plunges 50 Percent After CEO Martin Shkreli's Arrest (Bloomberg)
KaloBios Pharmaceuticals Inc. plummeted 50 percent Thursday in early trading after the drug company’s Chief Executive Officer Martin Shkreli was arrested in New York Thursday morning on securities fraud charges related to one of his prior companies.

Beijing Probes Architects of Stock-Market Rescue (WSJ)
Communist Party graft busters are investigating whether officials inside the China Securities Regulatory Commission used their knowledge of the rescue effort to enrich their friends or themselves, say agency officials familiar with the probe. In recent weeks, they have been taking officials, one by one, to a hotel close to the agency’s headquarters to press them to come clean or report on others, the officials say.

Putin Praises `Absolute Leader' Trump as Colorful, Talented Guy (Bloomberg)
The Republican candidate is “a very colorful character and talented,” Putin said after concluding his three-hour annual press conference in Moscow. “He’s the absolute leader in the presidential race,” Putin said Thursday, in remarks first reported by the Interfax news service. “He’s said that he wants to move to a new level of ties, closer and deeper ties with Russia. How couldn’t we welcome that? Of course we welcome it."

Confident and clear, Yellen says rate path will be well signaled (Reuters)
The unanimous backing Federal Reserve Chair Janet Yellen got for the Fed's first rate hike since the financial crisis let her deliver a clear message: Don't expect further rate hikes for a while, and when we are ready, we'll tell you.

Are You Ready to Buy Bonds From Iran? (WSJ)
The Iranian government will likely offer at least $500 million in foreign-currency-denominated bonds to international investors in 2016, deputy economy and finance minister Mohammad Khazaee told The Wall Street Journal in a recent interview. The sale would be intended as a litmus test of interest in Iranian debt, he said—a crucial step if the country is to attract the investment it needs in infrastructure and energy to boost economic growth. "I think in 2016 we have to pull the trigger,” Mr. Khazaee said. “We have to test the market outside Iran.”

Court order to bring Lagarde to trial 'incomprehensible': lawyer (Reuters)
The lawyer of International Monetary Fund (IMF) boss Christine Lagarde said on Thursday he would recommend his client appeal a French court's decision to bring her to trial over her role in the Bernard Tapie/Credit Lyonnais affair. "It's incomprehensible," Lagarde's lawyer Yves Repiquet said on French TV channel iTele. "I will recommend Mrs Lagarde appeal this decision."

12-year-old with 20 prior arrests steals 89-year-old's car (UPI)
When police were able to apprehend the boy they were less surprised by his actions, as he had been arrested over 20 times since the age of nine. Police say no one was hurt, but Raferty's car was damaged during the incident. "I think he got into a car accident," Raferty told the Tampa Bay Times. "He probably couldn't even reach the pedals."

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Opening Bell: 12.18.15

Hedge fund carnage; More Martin Shkreli; Dominique Strauss-Kahn has a 5 year-old love child; Large snake takes weekend ride on MTA bus; and more.

Opening Bell: 11.09.12

RBS, UBS Traders Said to Face Arrest in Libor Probe (Bloomberg) U.K. prosecutors are poised to arrest former traders and rate setters at UBS, Royal Bank of Scotland Group and Barclays within a month for questioning over their role in the Libor scandal, a person with knowledge of the probe said. The arrests will be made by police under the direction of prosecutors at the Serious Fraud Office within the next month, said the person, who declined to be identified because the matter isn’t public. Arrests in the U.K. are made at an early stage of the investigation, allowing police and prosecutors to question people under caution and may not lead to charges. The SFO has 40 people working on the probe into manipulation of the London interbank bank offered rate, a benchmark for financial products valued at $360 trillion worldwide, and has involved the City of London Police, said David Green, the agency’s director. “Significant developments” in the case are coming “in the near future,” Green said yesterday in an interview at his office in London without giving further details and declining to comment on any possible arrests. Pressure Mounts On Fiscal Crisis (WSJ) The CBO on Thursday detailed its view that if Washington policy makers don't act before the end of the year, the economy would contract by 0.5% in 2013. The unemployment rate would jump from 7.9% to 9.1% by the end of 2013, according to the CBO—a nonpartisan arm of Congress. Ex-Goldman Bankers See Crisis Opportunity in Greek Insurance (Bloomberg) Alexis Pantazis and Emilios Markou are on a three-year odyssey to become next-generation car insurance executives in Greece that’s a million miles from their previous incarnation as bankers for Goldman Sachs. “One of our investors says you cannot wipe out a country,” said Pantazis, 36, a consultant at Boston Consulting Group before working as an executive director at Goldman Sachs from 2005 to 2008. “A country like Greece has 11 million people and these people need basic services. They need bread, they need milk, they need car insurance.” As French banks Credit Agricole and Societe Generale sell their Greek units to exit the only euro area country that’s in need of a second rescue package, Pantazis and Markou see an opportunity. After swapping business-class lounges and sushi for budget flights and sandwiches, the pair began pitching their Internet-based vehicle policies to Greeks two months ago. SEC Left Computers Vulnerable to Cyberattacks (Reuters) Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyberattacks, according to people familiar with the matter. While the computers were unprotected, there was no evidence that hacking or spying on the SEC's computers took place, these people said. The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC's Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said...The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC's Interim Inspector General Jon Rymer. The Last Days Of Romneyland (NBC) From the moment Mitt Romney stepped off stage Tuesday night, having just delivered a brief concession speech he wrote only that evening, the massive infrastructure surrounding his campaign quickly began to disassemble itself. Aides taking cabs home late that night got rude awakenings when they found the credit cards linked to the campaign no longer worked. "Fiscally conservative," sighed one aide the next day. In conversations on Wednesday, aides were generally wistful, not angry, at how the campaign ended. Most, like their boss, truly believed the campaign's now almost comically inaccurate models, and that a victory was well within their grasp. (Outside Republicans and donors are another story. Some are angry over what they felt was an overly rosy picture painted by the campaign, and at what amounts to the loss of their investment.) New York Subway Repairs Border ‘on the Edge of Magic’ (NYT) There were some hiccups. At West Fourth Street, unexpected third-rail and switch problems delayed the return of the D, F and M trains. As the authority prepared to bring the G train back this week, a transformer blew, keeping the train offline for the morning rush hour on Wednesday. There were still service gaps on the N train, the A train in Far Rockaway and the R line, among others. On Thursday morning, inside his office, Joseph Lhota, the chairman of the transportation authority, checked his BlackBerry often, hoping for an update on the L train. Moments later, he placed a call to Howard B. Glaser, Mr. Cuomo’s director of state operations, whom he wanted to brief on the Queens-Midtown Tunnel. The tunnel could open Friday, he told Mr. Glaser, remarking that Mr. Bloomberg, “like an idiot,” had predicted publicly that the tunnel might open over the weekend. “He’s making it up,” he said, after a brief hail of profanity in which Mr. Lhota wondered aloud who, exactly, Mr. Bloomberg had been talking to. “It’s wrong,” he told Mr. Glaser. “It’s just wrong.” Mr. Lhota also spoke of the L line’s importance, as if his audience needed convincing. “You know who knows where the L train goes?” he barked into the phone. “All the hipsters in Williamsburg.” The BlackBerry buzzed on the table in front of him. He grabbed it quickly, then put it back. No good news yet on the L, he said. Hours later, that would change. “Ladies and Gentlemen,” he wrote on Twitter. “The L train is back. Enjoy your trip home tonight.” Whistleblower To Get Big Payment In Bank Of New York-Virginia Deal (WSJ) Bank of New York Mellon Corp. has reached an agreement with the state of Virginia to resolve accusations the bank charged hidden markups on currency transactions to Virginia's employee pension fund, in a deal that will also involve a $1.1 million payment to a whistleblower group, according to a person familiar with the negotiations. The whistleblower group includes Grant Wilson, who spent two years as a secret informant while sitting on the bank's Pittsburgh trading desk. Mr. Wilson's identity was disclosed in a page-one article in The Wall Street Journal last year. As part of the agreement, Virginia won't pursue litigation against BNY Mellon, and the bank will offer reduced fees in the future under a new custodial deal, according to people familiar with the negotiations. Nearly Half Of Britons Want EU Exit (Reuters) Nearly half of Britons would vote in a referendum to leave the European Union and less than a third to stay in, according to a poll highlighting divisions facing Prime Minister David Cameron. Polling company YouGov said on Thursday 49 percent favoured leaving the EU, 28 percent would vote to stay in the 27-nation bloc, 17 percent were undecided and the rest would not vote. Crédit Agricole Posts Record Loss After Greek Sale (WSJ) The Paris-based lender, France's third-largest bank by market value, posted a third-quarter net loss of €2.85 billion ($3.63 billion), well below analyst forecasts of a €1.76 billion net loss. The bank reported a €258 million profit in the same quarter a year earlier. Rochdale Traders Await Rescue (NYP) Sixteen days after a rogue trader rocked Stamford, Conn.-based Rochdale Securities, the broker-dealer, still hasn’t reached a deal with a deep-pocketed investor, sources said. Fla. principal resigns after offering promotions for sex (WPBF) A Florida high school principal who offered teachers' promotions in exchange for sex has resigned from his position. Steve Van Gorden's resignation comes after a 300-page investigative report by Pasco County school officials into allegations of sexual harassment. Several teachers claim Van Gorden, who is also the mayor of Zephyrhills, sent text messages offering career boosts in exchange for sex and threatened them if they refused. Van Gorden said he's sorry. "The bottom line is I'm truly sorry for what occurred, and it's not going to happen again," Van Gorden said. Van Gorden has a year and a half left on his term as mayor.

Goldman_Sachs-china

Opening Bell: 11.6.17

Goldman goes east; Saudi prince's arrest impacts Citi, Twitter investments; Wilbur Ross has a Putin problem; William Dudley to retire; and more.

Opening Bell: 10.7.15

Fantasy sports probe; Ackman says GE was too expensive; TPG raises real estate fund; Steve Cohen is loving life; "College bro arrested over mac-and-cheese rant at food court"; and more.

Opening Bell: 12.11.12

HSBC To Pay Record Penalty (WSJ) HSBC on Tuesday plans to acknowledge that for years it ignored possible money laundering, part of a record $1.9 billion settlement with U.S. authorities that caps the bank's disastrous foray into the U.S. market. The U.K.-based banking company is expected to forfeit nearly $1.3 billion as part of a deferred prosecution agreement, the largest-ever U.S. forfeiture for a bank, according to people briefed on the agreement between HSBC and multiple U.S. agencies. The deal includes a civil fine of more than $650 million, according to these people. As part of the agreement, the bank will admit to violating the Bank Secrecy Act, the Trading with the Enemy Act and other U.S. laws intended to prohibit money laundering, a government official said. Three Arrested In Libor Probe (WSJ) Three British men have been arrested as part of an investigation into the rigging of interest rates, the U.K. Serious Fraud Office said Tuesday. The SFO said the men, aged 33, 41 and 47, are being questioned at a London police station, and that it and the City of London Police executed search warrants on a home in Surrey and two homes in Essex. The arrests are the first by authorities amid a global probe into alleged rigging by bank personnel of the London interbank offered rate over several years. Morgan Stanley Weighs Share Buyback (WSJ) Morgan Stanley might soon ask U.S. regulators to let the securities firm buy back shares for the first time in more than four years, according to people familiar with the firm's thinking. The Wall Street bank could make its request to the Federal Reserve as soon as January as part of the annual "stress-test" process, these people said. The stress tests started in 2009 as a way to convince investors that the largest banks could survive a financial crisis. They have been used to determine banks' ability to pay dividends or buy back shares. Share-repurchase and dividend plans are due from 19 large financial firms by Jan. 7. "Fiscal cliff" outcome still uncertain; talks continue (Reuters) As the pace of talks quickened to avert the "fiscal cliff" of steep tax hikes and spending cuts set for the end of the year, senior members of the U.S. House of Representatives of both parties cautioned that an agreement on all the outstanding issues remained uncertain. Republicans and Democrats are not close to "finishing anything," California Representative Kevin McCarthy, the Republican whip in the House, told Fox News Monday night. "There's nothing agreed to. They are just beginning to talk," he said of House Speaker John Boehner and President Barack Obama. Meanwhile, Representative Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, said on MSNBC Monday he thought Congress could resolve some of the issues by the December 31 deadline -- among them the hikes in tax rates-but might have to leave others for the new Congress that takes office in January. Europe in Better Shape Than US: Strategists (CNBC) "The 'fiscal cliff' in the U.S. is a worry," Garry Evans,Global Head of Equity Strategy at HSBC told CNBC on Tuesday. "And that's one of the reasons that I'm underweight the U.S. and I prefer Europe - it's a bit of an unusual place to be." Insider Trading Probe Widens (WSJ) Federal prosecutors and securities regulators are taking a deeper look into how executives use prearranged trading plans to buy and sell shares of their company stock. The Manhattan U.S. attorney's office has launched a broad criminal investigation into whether seven corporate executives cited in a recent Wall Street Journal article traded improperly in shares of their own company's stock, according to a person familiar with the matter. These executives lead companies in industries ranging from retailing to energy to data processing. Stephen Baldwin Wants Tax Truce (NYP) Stephen Baldwin is hoping to set things right after he was arrested Thursday and charged with failure to file state income taxes for three years. “I went myself [to the police] in a pre-arranged kind of way, but that won’t stop the process of the powers that be being upset about it,” Baldwin told Page Six at the Plaza Hotel’s Oak Room on Sunday. “I had this pretty serious issue with filings that weren’t handled appropriately. To be honest with you, it’s a situation right now where my lawyers are in a conversation now with New York state and the district attorney’s office, and I’m very hopeful that everything should be fine,” he said. According to reports, the “Usual Suspects” star was arraigned for failure to file tax returns from 2008 to 2010. He owes more than $350,000 in taxes and penalties, and could face jail time. “You have to pay your taxes . . . I just got caught up in a situation that I’m hoping we’re gonna work out,” he said. U.S. Profit on AIG Climbs to $22.7 Billion on Share Sale (Bloomberg) The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, the Treasury said in an e-mailed statement. Fed Seen Pumping Up Assets to $4 Trillion in New Buying (Bloomberg) “It’s going to be massive and open-ended in size,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York and a former New York Fed economist. In EU, A Test Of Wills (WSJ) Among the concerns of EU officials are moves by regulators in countries such as Germany and the U.K. to discourage European banks from moving funds back to their home countries, these officials said. EU officials are considering taking legal action against governments that they view as having adopted overzealous policies that violate the single-market rules, these officials said. The first step would be a formal warning to national authorities. The dispute could eventually land before the European Court of Justice if there is no policy change. The officials' hope, though, is that they can resolve the dispute without resorting to legal action. Celtics’ Chris Wilcox fined $25K for flipping off ‘Kiss Cam’ during loss to 76ers (YS) ...The gag concludes when the camera pans to the opposing bench, where players usually laugh, fake kiss or just ignore the camera. Boston's Chris Wilcox had a slightly different and less appropriate reaction. Wilcox greeted the 17,921 Wells Fargo Center fans with his middle finger. He was serenaded by boos and received an earful from an assistant coach moments later.

Opening Bell: 5.29.15

Dick Fuld tells conference attendee to "bite" him, says mother still loves him; Moody's upgrades banks; "Wall Street’s Young Guns Brace for First Big Test"; Paul Singer says bet against bonds; "Woman Stabbed In BBQ Argument Over Last Rib"; and more.