Opening Bell: 12.3.15 - Dealbreaker

Opening Bell: 12.3.15

Yahoo; Rate hike; Barclays wanted Blythe Masters to run its investment bank; "Mom Took Daughter Out On Egging Rampage, Police Say"; and more.
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Exclusive: Barclays' boss wants Blythe Masters to run investment bank (Reuters)
New Barclays Plc Chief Executive Jes Staley approached his former JPMorgan colleague Blythe Masters about running the British bank's investment bank division, a person familiar with the matter said on Wednesday. But Masters told Reuters she was fully committed to running her company, Digital Asset Holdings - a startup designed to speed the trading of derivatives by using technology associated with bitcoin. She joined the company as chief executive in March.

Yahoo’s Internet Business Draws Interest (WSJ)
Among the companies that would likely explore a purchase are Verizon Communications Inc. and Barry Diller’s IAC/InterActive Corp., people familiar with the matter say. Others might be interested in pieces of Yahoo, if they become available, including News Corp, owner of The Wall Street Journal, and magazine publisher Time Inc., according to executives familiar with the situation. Private-equity firm TPG Capital has looked at buying media properties within Yahoo, according to a person familiar with the matter.

Janet Yellen Says Economy Is Ripe for Fed Interest Rate Increase (Dealbook)
While insisting the Fed’s policy-making committee would not make a final decision until its meeting Dec. 15 and 16, Ms. Yellen said raising rates would be “a testament, also, to how far our economy has come in recovering from the effects of the financial crisis and the Great Recession.”

E.C.B. Expected to Expand Stimulus, as Questions of Effects Remain (Dealbook)
New official data showed that the region’s dangerously low inflation rate remained at an annual pace of 0.1 percent in November. That was unchanged from October’s reading, and still far below the central bank’s target of just below 2 percent.

Mom Took Daughter Out On Egging Rampage, Police Say (UPI)
Investigators said Jennifer Terry, 44, drove her daughter and several other teens around Weber County on Aug. 20 so they could throw eggs at as many as 20 homes, and cause several thousand dollars in damage, according to KSL.com. Terry was arrested Monday and charged with a Class A misdemeanor. The egg tossers allegedly threw an estimated 15 dozen eggs at various homes and people. The estimated damage includes a $2,343 bill to repair one home’s stucco and a $3,000 bill for damage to a car’s ignition, along broken screens, windows and furniture...Police said Terry confessed to the eggings and said she did it "because of certain familial problems she was having and because she simply did not care,” according to a criminal report obtained by KSL.com.

Wall Street Goes Short on Bond Traders (WSJ)
The numbers confirm a sea change in the $39 trillion U.S. bond market. Since 2011, overall bonds outstanding have risen 11%, according to the Securities Industry and Financial Markets Association, while big banks’ revenue from trading bonds, currencies and commodities has declined about 24%, according to research from CLSA. Staff levels at banks also show a shift. The number of bond traders on Wall Street has declined about 17% from 2010 to 2014, according to recruiting firm Options Group.

Some Merrill Brokers Could See Cut in Base Pay (WSJ)
Some Merrill Lynch brokers will see their base pay trimmed by 2% to 8% next year unless they increase the fees and commissions they generate. The cuts are included in 2016 compensation formulas that the Bank of America Corp. brokerage unit presented to its more than 14,000 advisers on Wednesday afternoon, Merrill executives said.

Top RBS trader to be charged with manipulating price of debt securities (NYP)
Deirdre M. Daly, Connecticut’s top federal prosecutor, is building a case against Adam Siegel and RBS, which used to house its bond trading unit in Stamford, for lying to purchasers — such as hedge funds — about how much the bank paid for bundles of debt, two sources familiar with the investigation told The Post.

Canadian police encourage road safety using rap lyrics (UPI)
One Canadian police department's attempt to encourage road safety during the icy winter months turned into a viral trend that wound up spreading across the country. On Nov. 24, Kindersley Royal Canadian Mounted Police in Saskatchewan posted a message to their Facebook page parodying Vanilla Ice's "Ice Ice Baby" to encourage residents to be mindful of icy conditions on local roads. "To the extreme I rock winter tires like a toboggan. Put your seatbelt on so you don't hit your noggin," an excerpt from the post read. The post then went on to encourage drivers to slow down to accommodate the weather conditions. The post quickly incited responses from police departments in Alberta and Prince Albert among others, who created their own parodies of Flo-Rida's "Low" and Jay Z's "99 Problems" respectively.

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Opening Bell: 2.10.16

Morgan Stanley trading exec says run for lives; Big firms raise debt funds; Yellen to talk rate hikes with congress; Man Accused Of Tossing Gator Into Wendy's Drive-Thru Window; and more.

Opening Bell: 01.30.13

MF Global's Bankruptcy Nears Happy Conclusion (NYT) On Thursday, a bankruptcy court will review a proposal that would return 93 percent of the missing money to customers like Mr. Desai, who lost his $580,000 nest egg in the brokerage firm's chaotic final days. And the trustee who has submitted the proposal, James W. Giddens, has quietly identified a way that, if sent to the judge and approved, could plug the remaining shortfall for customers in the United States, according to people involved in the case. The broad push to make MF Global customers nearly whole, a goal now surprisingly within reach, is a remarkable turnaround from the firm's 2011 bankruptcy filing when such a recovery seemed impossible. "I'm surprised that, magically, the money has shown up," said Mr. Desai, a software account executive who, like most customers in the United States, has only 80 percent of his money. "I feel very relieved." Deutsche Bank Seen Missing Goldman-Led Gains on Cost Rise (Bloomberg) Europe’s biggest bank by assets may post a loss of 210 million euros ($282 million) compared with a profit of 147 million euros in the fourth quarter of 2011, when it reports earnings tomorrow, according to the average estimate of nine analysts surveyed by Bloomberg. Goldman Sachs and three other leading U.S. investment banks saw their combined net income jump 92 percent annually to $9.73 billion in the period. Co-Chief Executive Officers Juergen Fitschen and Anshu Jain are eliminating staff and bolstering capital levels, the lowest among Europe’s biggest investment banks, in their first year in charge to help meet stricter capital rules. The costs countered a surge in trading revenue, spurred by the European Central Bank’s measures to stem Europe’s sovereign debt crisis. “Deutsche Bank is trying to look forward and hoping no one can really blame fourth-quarter losses on the new management as they only took over mid-year,” Andreas Plaesier, an M.M. Warburg analyst who recommends investors buy the shares, said by telephone from Hamburg. “It would rather see its earnings wrecked in one quarter and show it’s making progress on building capital.” Chesapeake CEO To Exit (WSJ) Chesapeake Energy Corp. Chief Executive Aubrey K. McClendon is leaving the company he built into the country's second-biggest natural-gas producer, citing "philosophical differences" with a board of directors largely installed by shareholders to curb his risk-taking and free-spending ways. Paul Singer Is a Backer of 'Les Miserables' (CNBC) Singer writes in his investor note: "December marked the end of the 'Beverly Boulevard II' film slate submission period. We accepted the final two additional film submissions during the quarter, bringing our remaining funding commitment to seven films set for release in 2013 and 2014. One film in the slate, 'Les Miserables,' was released during the quarter. It will be several more weeks before we begin to have any reliable idea of the ultimate economic performance and value of the big-screen version of this huge stage hit, but early indications are promising and the film just garnered three major awards at this year's Golden Globe Awards." "Beverly Boulevard II" is run by Relativity Media and Elliott Management appears to be a large investor in the company, at least according to this 2010 article from Institutional Investor. JPMorgan Bet Against Itself In 'Whale' Trade (Reuters) It was widely known that a group of about eight credit-focused hedge funds, such as BlueMountain Capital Management and Saba Capital Management, were on the other side of the trades that JPMorgan's London-based Whale team made on an index tied to corporate default rates. But the role JPMorgan's own investment bank may have played in the messy unwinding of the derivatives trade has not come out until now. One of the three people familiar with the matter claimed that JPMorgan managers discussed merging the two sets of trades in an attempt to offset some of the CIO's losses. Those talks ended about a month before Bloomberg News first reported the CIO trades on April 5 last year, the source said. JPMorgan's Kristin Lemkau said that this "never came up in our exhaustive internal investigation." Police Say Man Steals Ambulance, Then Tries to Steal Horses (WHNT) Police say it all began when Todd was arrested for DUI after a car crash. He was taken to Marshall Medical Center South for treatment. Police say while at the hospital, he walked out, got into a running ambulance and drove away. They say he later got the ambulance stuck on Barnard Street, but that was just the beginning. “He walked across a pasture and got into a barn where he tried to saddle up two horses,” says Boaz Assistant Chief Todd Adams. “One was two wild for him and the other he appeared to be too intoxicated to properly saddle the horse.” Police say Anderson then stole a car, which he crashed. They say he then stole another car and got away. However, on Saturday police say Anderson started bleeding from his original injuries. He sought treatment back at the hospital, was recognized and then arrested. Fed Risks Losses From Bonds (WSJ) The Federal Reserve could be charting a course that leaves the highly profitable central bank with no extra income to hand over to the U.S. Treasury for several years. That is the conclusion of five Fed staff economists who examined how the central bank's bond-buying programs will affect its profitability over the long run. Right now the Fed is earning large returns on its bond portfolio and sending most of its profits to the Treasury. Several years from now, when the economy is stronger, the Fed is expected to sell bonds and raise short-term interest rates to tighten credit and restrain inflation. The group found the Fed might have to sell bonds at a loss and incur higher expenses on interest it pays to banks on the reserves they hold at the Fed. Italy Scours Deals Abroad for Elusive Tax Revenue (WSJ) Italy, which has one of the biggest tax-cheating problems in the developed world, is cracking down on suspect offshore investments as part of an unprecedented drive to find new sources of tax revenue and ease concerns about its €2 trillion ($2.69 trillion) in debt. The country just added a new property tax and is boosting its sales taxes to narrow its fiscal gap. In an effort to claw back an estimated €120 billion a year in unpaid taxes, it has limited cash payments to €1,000 so that untaxed money can't slosh around the economy without leaving a paper trail and is hunting down people who buy luxury yachts yet report little income. One of the brightest spotlights is on companies suspected of earning money or shifting it abroad to avoid paying Italian taxes. Italy netted €600 million in additional taxes last year after prosecutors pursued two cases involving money stored illicitly to Switzerland. NBA Union Chief Hunter Fires Family After Nepotism Report (Bloomberg) Billy Hunter purged family members from roles in the National Basketball Association players union that he runs after a report that criticized nepotism at the organization. The moves dismissing personnel including his daughter and daughter-in-law were disclosed in a letter from Hunter to members of a special committee of players established prior to the investigation by the law firm Paul, Weiss, Rifkind, Wharton & Garrison. A copy of the letter, dated Jan. 23, was obtained by Bloomberg News. No Twinkies 'Til September? (NYP) While bankrupt Hostess Brands is expected to select a preferred bidder for its snacks business today, regulatory approval, time needed to close the deal and then the firing up of the Twinkies manufacturing process means it’ll be early September before the spongecake treats are available at retailers, experts said. Leon Black’s Apollo Global Management and co-bidder C. Dean Metropoulos, a veteran food exec, are expected to be named the preferred bidder for Twinkies, Ding Dongs, Donettes and other Hostess snacks. Zimbabwe has $217 in the bank: finance minister (AFP) After paying public workers’ salaries last week, the balance in cash-strapped Zimbabwe’s government public account stood at just $217, Finance Minister Tendai Biti said Tuesday. “Last week when we paid civil servants there was $217 (left) in government coffers,” Biti told journalists in the capital Harare, claiming some of them had healthier bank balances than the state. “The government finances are in paralysis state at the present moment. We are failing to meet our targets.” Biti said that left no choice but to ask the donors for cash. “We will be approaching the international community,” he said.

Opening Bell: 06.20.12

Dimon Receives Tougher Treatment (WSJ) The lectures appeared to rankle Mr. Dimon. Certain questions received sharp, defiant retorts. "We lost $2 billion to Chrysler. I assume you'd want us to continue to lend to Chrysler," Mr. Dimon shot back when Rep. Gary Ackerman suggested the bank's hedging amounted to gambling. "We don't gamble," Mr. Dimon said curtly. "We do make mistakes." Dimon gets grief from pols — and cleaning lady (NYP) After taking his lumps during his second grilling on Capitol Hill over the bank’s $2 billion trading blunder, he was confronted by Adriana Vasquez, a 38-year-old janitor who says she earns $10,000 a year cleaning JPMorgan’s tower in Houston. “Despite making billions last year, why do you deny the people cleaning your buildings a living wage?” Vasquez asked the bank chieftain at the end of his two-hour grilling before the House Financial Services Committee. As a member of the Service Employees International Union, Vasquez, who says she cleans 24 bathrooms on 11 floors of the bank building, is putting pressure on JPMorgan. The union put out a press release in advance of the hearing, announcing that it would send Vasquez to confront Dimon over the issue of janitorial pay. A JPMorgan spokeswoman told The Post that the bank is a tenant of the tower but doesn’t set pay for the janitors, who are hired by the building’s management. Dimon, who was expecting to hear from the union, told Vasquez to call his office. BOE Seen Likely To Increase Stimulus (WSJ) The Bank of England looks set to pump more stimulus into the U.K. economy after minutes of its June policy meeting revealed that Governor Mervyn King was narrowly defeated in a knife-edge vote on a fresh bout of bond purchases. Moody's Upgrades Turkey (WSJ) Moody's said the move, which raised Turkey's sovereign-debt rating by one notch to Ba1—just below investment grade—was driven by the fast-growing economy's improvements in its public finances and the shock-absorption capacity of the government's balance sheet. UK Reveals New 'Say On Pay' Laws (WSJ) The British government unveiled legislation Wednesday to give investors more say on the pay packages of senior corporate executives, a key milestone in a shareholder rebellion that has been rippling through the U.K. in recent months. The measures include giving shareholders a binding vote on how much directors are paid and increasing transparency by requiring companies to annually publish a simple figure totaling how much directors received. Falcone’s Harbinger Capital Turns To Dell’s MSD For Loan (Bloomberg) Philip Falcone’s hedge fund, having taken out a loan earlier this year at an effective annual interest rate of 24 percent, has found a new source of financing: the money-management arm of billionaire Michael Dell. Harbinger Capital Partners Master Fund I Ltd. entered into a note purchase agreement on June 14 with a credit fund run by MSDC Management LP, according to a June 18 regulatory filing. MSDC Management is an investment adviser backed by MSD Capital LP, the private investment firm for Dell and his family. Under the financing agreement, the MSD credit fund can swap as much as $50 million of loans extended to Falcone’s Harbinger Capital for part of its stake in Harbinger Group, his publicly traded investment vehicle. Honeybee Swarms Increase In NYC After Mild Spring (NYT) When Happy Miller, the Seaport restaurant manager, saw tourists flailing their arms in a cloud of airborne black specks late last month, he closed the glass door and quietly panicked. “Oh my God, what do I do?” he thought before calling 311, security guards and local news outfits. The television trucks, he said, were first to arrive. It took several hours before Officer Anthony Planakis, the New York Police Department’s unofficial beekeeper in residence, arrived with a metal swarm box and a vacuum to collect the 17,500 or so homeless creatures. Officer Planakis, who has been responding to swarm calls since 1995, said this had been New York’s busiest year of swarming he had ever experienced. Since mid-March, he said, he has tended to 31 jobs in the five boroughs, more than twice the number he handled last season, which is normally mid-April through July. “It’s been pretty hectic,” he said, adding that this week’s warmer temperatures could encourage more bees to take off. Fed Seen Extending Operation Twist And Avoiding Bond Buys (Bloomberg) The Federal Reserve will probably decide today to expand Operation Twist beyond $400 billion to spur growth and buy protection against a deeper crisis in Europe, according to a Bloomberg News survey of economists. Fifty-eight percent of respondents in a June 18 poll said the Fed will prolong the program, which seeks to lower borrowing costs by extending the average maturity of the securities in the central bank’s portfolio. The current program ends this month. US Watchdog Hits At 'Risky' London (FT) US lawmakers and regulators have attacked London as a source of financial crises and promised tougher crossborder rules in the wake of $2 billion of trading losses at the UK unit of JPMorgan Chase. Gary Gensler, chairman of the Commodity Futures Trading Commission, said on Tuesday at a congressional hearing into JPMorgan’s trading losses that the US was vulnerable to risky activity in London. He said AIG had been hit by its financial products unit in London while Citigroup had been harmed by special purpose investment vehicles set up in the UK capital. “So often it comes right back here, crashing to our shores...if the American taxpayer bails out JPMorgan, they’d be bailing out that London entity as well,” he told the House financial services committee. Hedge Funds Hurt In May Commodity Rout As Brevan Drops (Bloomberg) Funds tracked by the Newedge Commodity Trading Index lost an average 3 percent last month, the most since September. Taylor Woods Master Fund Ltd., managing more than $1 billion, retreated 4.2 percent, according to a monthly report obtained by Bloomberg News. Galena Asset Management Ltd.’s metals fund dropped 2.6 percent in May, according to the company, and Brevan Howard Commodities Strategies Master Fund Ltd. fell 2 percent, according to a monthly report to investors obtained by Bloomberg. Ken Starr's pole dancing ex shops book (NYP) ...Passage also describes how another A-list actor and his wife took her and a “massage girl” into a room at Scores. But the couple ignored the hot ladies and started “having sex right in front of us.” After an hour of the sex show, Passage says she “reached into [the star’s] pants pocket...and told him I was taking an extra $200 as a tip...He was clearly too busy to negotiate, so he just waved me off and said, ‘ Thanks.’ ”

Opening Bell: 9.2.15

Blythe Masters's next act; Canada's commodities woes; IMF's Asia warning; "Day Care Teachers Encouraged Kids to Brawl, Posted 'Fight Club' Videos to Snapchat: Prosecutors"; and more.

Opening Bell: 01.07.13

Regulators Give Ground To Banks (WSJ) Global banking regulators watered down a key element of their plan for creating a safer financial system, giving ground to banks that argued the rules were unworkable and financially risky. The Basel Committee on Banking Supervision, a group of the world's top regulators and central bankers, said Sunday that it agreed to relax a rule designed to ensure that big banks are able to weather financial crises without running short of cash. Bowing to two years of intense pressure from the banking industry, the regulators made it easier for banks to meet the rule, known as the "liquidity coverage ratio," and delayed its full implementation until 2019. It is the latest instance of regulators chipping away at their landmark 2010 response to the global financial crisis. The regulators argue that the changes make banking rules much stronger than they were before the crisis. Herbalifers Stay Resolute (WSJ) When hedge-fund manager William Ackman unveiled his 334-slide presentation alleging that Herbalife is a pyramid scheme, it did nothing to shake Joanne Clare. The 38-year-old Staten Island mother of three has been selling the company's weight-loss products and supplements since 2004, when she says they helped her drop from 210 to 160 pounds in four months. She now sells as much as $3,500 a month of Herbalife products to her 30 clients and the two distributors in her "down line." "People have always said it's a pyramid scheme, but it's not," Ms. Clare said, adding that the bulk of her earnings come from sales to clients, not her cut of her recruits' take. Mr. Ackman's declaration that he had bet more than $1 billion against Herbalife caused many investors to flee, sending the stock down 38% in four days in late December. But some of the company's 3.1-million-strong army of distributors were unmoved. Eliot Spitzer Ends His Show On Current TV (NYT) The announcement comes a few days after Al Jazeera said it was acquiring Current TV. Later this year, the Qatar-owned broadcaster plans to turn the channel into an Americanized version of the international news channel Al Jazeera English. Mr. Spitzer said he had a “wonderful time” at Current, but emphasized that his relationship was with Al Gore and Joel Hyatt, Current’s co-founders, not with Al Jazeera. “Moving forward, their mission will be different,” he said — more international newscasts, less liberal talk about the news. Citi's Corbat builds bridges (Reuters) Citigroup Inc's Michael Corbat has been meeting with bank regulators in his first months as CEO, as he looks to bolster relationships and finalize the bank's plan to return capital to shareholders, sources familiar with the matter said. Corbat also expects to name his team of top managers within the next week or so, one of the sources said on Sunday. Corbat is expected to play it safe when Citigroup asks the U.S. Federal Reserve for permission for moves such as buying back shares or increasing dividends, analysts and investors said. His predecessor, Vikram Pandit, lost his job in October in part because the bank's request for returning capital was denied in March. The bank, which is due to submit its plan to the Fed on Monday, has not yet done so, the source said. The third-largest U.S. bank will only seek approval to buy back shares and not raise dividends, the Wall Street Journal reported on Friday. Last year, the bank wanted permission to return more than $8 billion to shareholders over two years, the paper said. For Newly Minted MBAs, A Small Paycheck (WSJ) For graduates with minimal experience—three years or less—median pay was $53,900 in 2012, down 4.6% from 2007-08, according to an analysis conducted for The Wall Street Journal by PayScale.com. Pay fell at 62% of the 186 schools examined. Even for more seasoned grads the trend is similar, says Katie Bardaro, lead economist for PayScale.com. "In general, it seems that M.B.A. pay is either stagnant or falling," she says...It is all a far cry from the late 1980s and early 1990s heyday for M.B.A.s, when some companies would hire 100 or more M.B.A.s. It wasn't uncommon to recruit first, and fill actual jobs later. DOJ pledges to respect Swiss law in tax probe (Reuters) Swiss chief finance diplomat Michael Ambuehl was given a verbal pledge from the U.S. Department of Justice to respect Swiss law when asking for bank client data of potential tax dodgers, a newspaper reported on Sunday. Switzerland is in negotiations with U.S. authorities to find a deal that would end tax probes into at least ten Swiss banks suspected of helping clients dodge taxes, including Credit Suisse and Julius Baer. The Alpine country is trying to preserve what is left of its cherished banking secrecy that suffered a severe blow in 2009 when UBS, the first Swiss bank that came under scrutiny in the U.S., was required to disclose client data. Brazilian prison gaurds catch cat that slipped through the gate with escape tools taped to its body (NYDN) Guards at a Brazilian prison nabbed a white cat that slipped through the gate with a cell phone, drills, small saws and other contraband taped to its body. Alagoas prison spokeswoman Cinthya Moreno says the cat was caught New Year’s Eve at the medium-security prison in the city of Arapiraca. The O Estado de S. Paulo newspaper reported Saturday that all of the prison’s 263 inmates are suspects in the smuggling attempt, though a spokesperson said, “It will be hard to discover who is responsible since the cat does not speak.” Loeb, Cooperman Stand Out in Horrid Year for Hedge Funds (CNBC) Third Point was the clear hedge fund standout in a horrible year for the industry as almost nine out of 10 managers underperformed the S&P 500. Omega Advisors' Leon Cooperman also scored big. Loeb — once better known for his acerbic letters to CEOs — used an activist position in Yahoo and the contrarian buying of Greek bonds to drive the firm's flagship fund to a 21 percent gain in 2012. The firm's more-leveraged Ultra fund posted an even bigger 34 percent return...Cooperman's fund had a net return of 26 percent in 2012. Banks Zero In On Foreclosure Pact (WSJ) Banks were closing in on a $10 billion foreclosure-abuse settlement with regulators that could be announced as soon as Monday, according to people familiar with the talks. The settlement was nearly complete Sunday afternoon, the people said, after the Federal Reserve backed down on a demand for more compensation for consumers and other changes to the pact. Bankers threatened to walk away from the deal if the Fed's demand for an additional $300 million was included, a person briefed on the talks said. Junk Bonds' Fire Is Poised to Fade (WSJ) Junk bonds started 2013 much like they finished 2012—on fire. In just three trading days this year, bonds of low-rated companies delivered returns of almost three-quarters of a percent, even as most other types of bonds lost value. And junk bonds continued to clock new milestones: Average prices soared to their highest since 2004 and average yields, which decline as prices rise, dropped below 6% for the first time ever, according to Barclays. But the rapid march is making fund managers and analysts wary. Prices are now so high—averaging more than 105 cents on the dollar—that there is little room for them to climb much further, some investors say. These are lofty prices for bonds that usually trade below 100 cents, reflecting the higher default risk for such companies. At the very least, returns will pale in comparison with the 15% achieved in 2012, analysts and investors say. NHL, Players Settle Labor Dispute (AP) On the 113th day of a management lockout and five days before the league's deadline for a deal, the bleary-eyed sides held a 6 a.m. news conference to announce there will be a season, after all. NHL Commissioner Gary Bettman and union head Donald Fehr both appeared drained, wearing sweaters and not neckties, when they stood side by side at the hotel and announced labor peace. "We have reached an agreement on the framework of a new collective bargaining agreement, the details of which need to be put to paper," Bettman said. "We've got to dot a lot of Is, cross a lot of Ts. There's still a lot of work to be done, but the basic framework of the deal has been agreed upon." Hostess in Talks to Sell Off Bread Brands (WSJ) Hostess could disclose Flowers, Grupo Bimbo or others as opening bidders in a looming bankruptcy-court auction for the assets as soon as this week, said people familiar with the matter. Hostess, whose bread brands include Wonder Bread, Nature's Pride, Home Pride, Merita and Butternut, is still determining how to split up assets and package them for buyers, one of the people said. Gérard Depardieu gives up French citizenship after bitter tax fight (GM) In a fit of pique, French movie star Gérard Depardieu announced during the weekend that he would give up his citizenship after politicians and the media took him to task for moving to Belgium and avoiding an impending tax hike for the rich. Mr. Depardieu is not France’s first fiscal refugee but his high-profile door-slamming so monopolized public debate that Prime Minister Jean-Marc Ayrault had on Monday to parse whether or not he had insulted the actor. “I did not call Mr. Depardieu a loser, I said that it was loser-like [to move to Belgium to avoid taxes],” Mr. Ayrault told reporters...The “loser” comment seemed to have been the jab that stung Mr. Depardieu the most. “Loser, did you say loser?” the 63-year–old actor began an open letter to Mr. Ayrault that appeared Sunday in Le Journal du dimanche. Mr. Depardieu wrote that he had paid a total of €145-million in income tax in the last four decades and kept 80 people employed. He added that he had been taxed at a marginal rate of 85 per cent this year. “I am giving you back my passport and my social insurance, which I had never used. We no longer have the same fatherland. I am a true European, a citizen of the world.”

Opening Bell: 01.28.13

Davos Money Men Say World Emerges From Doldrums Fretting Relapse (Bloomberg) “Optimism, but with a sober tone,” was how Bank of America Chief Executive Officer Brian T. Moynihan characterized the mood pervading the World Economic Forum’s annual meeting, even as investors were lifting the Standard & Poor’s 500 Index above 1,500 for the first time since 2007. Fed To Keep Money Spigot Open (WSJ) Federal Reserve officials are likely to continue their easy-money policies when they gather this week to weigh a mixed economic outlook and a recent run of low inflation. The Fed has said it would maintain its $85 billion bond-buying programs, aimed at boosting the economy by lowering long-term interest rates, until it sees substantial progress in labor markets. It has also said it would keep short-term interest rates near zero until the jobless rate drops to at least 6.5%, as long as inflation remains steady. Beneath the Calm, SAC Works to Contain Fallout From Inquiry (NYT) "This has always been a stressful place to work," said an SAC employee who requested anonymity because he was unauthorized to speak publicly about the fund. "Now it's just more stressful." Mr. Cohen's fund was dealt a blow last week when a Citigroup unit that manages money for wealthy families disclosed that it was withdrawing its $187 million investment. The move by the bank was the most prominent client departure since November, when the multiyear investigation into SAC's trading practices entered a more serious phase. Citigroup's withdrawal represents a tiny percentage of SAC's $14 billion in assets under management. The fund has said it expects total investor redemptions for the first quarter of up to $1 billion, a number that an SAC spokesman has said will not adversely affect its business...Still, the Citigroup decision stung, say peopleclose to SAC's business, because of the longstanding and lucrative relationship between the bank and the fund. Another concern, said these people, is that the move could influence other large SAC investors currently weighing whether to keep their money at the fund. For Citigroup, its withdrawal of money from SAC carries substantial business risk. The bank has a vast relationship with SAC, earning revenue by providing the fund with financing and trading services. SAC could exact retribution on Citigroup by terminating, or at least scaling back, its broader relationship with the bank. An SAC spokesman declined to comment. Credit Suisse Could Owe $2 Billion Over Fraud (Reuters) Credit Suisse Group faces a potential $2 billion of exposure over fraud that occurred a decade ago at National Century Financial Enterprises, a result of a federal judge's determination on how to apportion responsibility. Friday's decision by U.S. District Judge James Graham could expose the Swiss bank to hundreds of millions of dollars of added liability over the activities of Lance Poulsen, who co-founded National Century in 1990 and was its chief executive. He is now serving a 30-year prison term and is presumed insolvent. Goldman Raising $1 Billion From ICBC Share Sale (WSJ) The Wall Street company is selling the Hong Kong-listed shares in a block trade at 5.77 Hong Kong dollars (US$0.74) each, the people said, without disclosing the number of shares. The price represents a 3.0% discount to ICBC's HK$5.95 closing price Monday. A person familiar with the situation said the sale reflects prudent risk management on Goldman's part to reduce the size of its ICBC investment. MBA's Salary Enhancing Power Slashed (FT) Students on the top US MBA programs in the mid-1990s saw their salaries triple in five years, but those who graduated from the same schools in 2008 and 2009 saw that increase halved, according to data collected for the FT's annual Global MBA rankings. At the same time, MBA fees have risen by 7 percent a year. MBA students who enrolled in 2012 paid 62 percent more in fees - up 44 percent in real terms - than those who began their programs in 2005, even though the increases in post-MBA salaries remained in line with inflation. Beyonce has yet to apologize to Chuck Schumer for lip-syncing at inauguration (NYP) The New York senator angrily admitted yesterday that the pop queen has not called him to say sorry after she turned last week’s inaugural bash into an unexpected Milli Vanilli concert by lip-syncing “The Star-Spangled Banner.” “I have not heard from her before, during or after,” a testy Schumer told The Post after he was asked if Beyoncé had called him to give a musical mea culpa. “She did not talk to me at all. I didn’t say any words to her, period.” Schumer has been credited with drawing the pop diva and her hubby Jay-Z to the inauguration, where many said they stole the show from the president and first lady walking hand-in-hand on the steps of Capitol Hill. Schumer was seen beaming with pride just steps behind Beyoncé while she appeared to be belting out the National Anthem. Obama administration insiders and inauguration planners were in the dark about Beyoncé’s decision to use a prerecorded tape of her singing with the Marine Band during the swearing in. They were later left fuming over the embarrassment, according to reports. Some on Capitol Hill have even placed the blame on Schumer for the Star-Spangled sham. There’s a Twinkie in the eye of Apollo (NYP) Hostess Brands is expected to name Leon Black’s Apollo Global Management as the preferred bidder for Twinkies and its other snack brands, The Post has learned. The announcement from the bankrupt baker could come as soon as today, sources said. The selection of Apollo would give Manhattan buyout billionaire Leon Black the inside track to buying one of the country’s most well-known consumer brands. Black’s Apollo and co-bidder C. Dean Metropoulos, a veteran food exec, were vying with Grupo Bimbo, the Mexico-based baker, for the right to be the preferred, or stalking horse, bidder for Twinkies, Ho Ho’s, Ding Dongs and other Hostess snacks. Bank of America Moves $50 Billion of Derivatives to UK (FT) Bank of America has begun moving more than $50bn of derivatives business out of its Dublin-based operation and into its UK subsidiary, according to people close to the operation. The move, part of the group's global drive to rationalize its operations, has been encouraged by regulators but will also allow BofA to benefit from tax breaks stemming from the accumulated losses in its UK business. Singer Backs Off Aggressive Stance In Dealings With Buenos Aires (NYP) After a decade of aggressively pursuing $1.44 billion he claims the country owes him and a group of bondholders, including successfully pressing Ghana to seize a locally docked Argentine naval vessel to help pay down the debt, the billionaire New York hedge fund mogul is sounding like Bobby McFerrin in “Don’t Worry, Be Happy.” Singer’s Elliott Management now feels Argentina will do the right thing, according to recent court filings. It’s quite a change from last fall’s legal arguments, in which Singer urged a federal judge to hurry up and force Buenos Aires to put some of the monies owed into escrow, citing the country’s president’s plot to avoid the debt payment. Italians Have a New Tool to Unearth Tax Cheats (NYT) Despite the government's best efforts, tax evasion remains something of a pastime in Italy, where, famously, more than a few of the Ferrari-driving set claim impoverishment when it comes to declaring their incomes. So this month, not without controversy, the National Revenue Agency decided to try a new tack. Rather than attempting to ferret out how much suspected tax cheats earn, the agency began trying to infer it from how much they spend. The new tool, known as the ''redditometro,'' or income measurer, aims to minimize the wiggle room for evasion by examining a taxpayer's expenditures in dozens of categories, like household costs, car ownership, vacations, gym subscriptions, cellphone usage and clothing. If the taxpayer's spending appears to be more than 20 percent greater than the income he or she has declared, the agency will ask for an explanation. Traders Make Peace With Computers (WSJ) On a recent day on Barclays PLC's stock-trading desk in Manhattan, an electronic platform posted a notice that Barclays was selling a large block of Pfizer shares. In recent years, a computer typically would have swiftly matched such an order with a buyer, sidestepping trading floors altogether. But soft trading volume has left many traders unable to move stock as quickly as they might like. That is one reason why Barclays connected its recently launched DirectEx platform to its trading floor. The move paid off when a client who was buying 150,000 shares on the electronic network decided, after chatting with a Barclays salesman, to take an additional 150,000 shares. Woman Found with 92 Pounds of Marijuana in N. Bellmore (Patch) According to detectives, around 6 p.m., an unmarked First Precinct police car observed Mizzie Artis, 27, of Bellport, operating a 1999 Hyundai eastbound on Columbus Avenue while talking on a cell phone and not wearing a seat belt. Police then observed Artis drive to Armand Street where she met with a male subject in a minivan. As officers drove by both vehicles to further observe, the male subject fled the scene in the van, police said. Artis drove away and failed to stop at a stop sign and did not signal when turning, police said. Officers stopped Artis and, upon approaching the car, observed two large cardboard boxes in the auto. Officers also detected an odor of marijuana emanating from the vehicle. K-9 officers responded to the scene and performed a narcotic search of the vehicle. The cardboard boxes in the front seat had a positive alert for narcotics, police said. Two additional boxes were recovered from the trunk containing marijuana, bringing the total approximate weight to 92 pounds.

Opening Bell: 09.20.12

Regulators Try To Beat Clock In Rate Probe (WSJ) The Justice Department recently asked several banks to sign "tolling" agreements, in which the companies promise they won't challenge any enforcement action on the grounds that the alleged wrongdoing occurred beyond the statute of limitations, people close to the investigation said. The requests were sent to all the major banks under investigation, these people said, including Citigroup, Deutsche Bank, JPMorgan, RBS, and UBS. Libor-Like Manipulation Possible in Other Benchmarks, Iosco Says (Bloomberg) The same lack of oversight that enabled traders to manipulate the London interbank offered rate plagues other benchmarks around the globe, according to a group of international securities regulators. Fewer than half of the benchmark interest rates surveyed in the U.S., Europe and Asia were based on actual transactions, according to a confidential International Organization of Securities Commissions discussion paper obtained by Bloomberg News. Instead, the rates were calculated by methodologies that were unclear, not transparent and only rarely subject to specific regulatory standards or obligations, the group said. Nomura Cuts Up to 30% of Europe Investment Bank Jobs (CNBC, earlier) Nomura is making wide-ranging cuts in its European investment banking division on Thursday, according to sources, with up to 30 percent of jobs likely to go...“Today is D-day, there is a crazy atmosphere, everybody knows it is going to be big,” one source told CNBC. Citigroup Warns Irish Investors to Plan for Losses (Bloomberg) All of the optimism that Ireland can raise money in the markets and avoid a debt restructuring is premature as the nation struggles to emerge from its worst recession in modern history, said Michael Saunders, Citigroup Inc.’s head of European economics in London. “Ireland faces an almost impossible task to get back to fiscal balance,” Saunders said. Visits to the country showed “life is tough, very tough and not getting that much better anytime soon,” he said. Debt Investors Aren't Just Waiting For the Next Downgrades in Europe (WSJ) As many investors brace for possible downgrades of Spain and Italy, some are already positioning themselves for the potential fallout in the countries' €180 billion ($234.9 billion) corporate-debt markets. Even with the prospect of aid from the European Central Bank, Spain and Italy could still face credit downgrades, investors say. The main focus is on Spain and Moody's Investors Service Inc. Moody's has said it may cut Spain to "junk" status, a move that would likely be followed by lockstep cuts of its banks and several companies to junk. Such a move would likely trigger a wave of selling from investors who can only own bonds with investment-grade ratings. Some ratings-sensitive investors are selling ahead of the move. Others are getting ready to buy. Couple Accused Of Selling Neighbor's Puppy On Craigslist (NYDN) Scott and Roxanne Duff accused of calling police when a neighbor’s 6-month-old Rottweiler and a Labrador retriever showed up at their house Sept. 3. They asked what to do with the dogs and were told to contact a local shelter or reach out to the regional dog catcher, police told the Valley News Dispatch. But that didn’t happen. While the couple returned the Labrador to their neighbor, they later told police the Rottweiler puppy had run away. That neighbor didn’t believe this story, and told police the next day that he thought the Duffs still had his puppy. When police asked the couple about the puppy again, they allegedly admitted to selling it on Craigslist for $50 High-Speed Trading In The Spotlight (WSJ) Since rapid-fire trading firms now provide many of the buy and sell orders that support the market, investors are at the mercy of automated systems that can run amok during volatile times, according to Dave Lauer, who last year quit his job as a trader for an elite Chicago high-frequency trading outfit. Mr. Lauer is part of a growing chorus of industry insiders blowing the whistle on approved trading techniques that they say are designed by the traders who derive the most benefit. Mr. Lauer is now a consultant on market-structure issues for Better Markets, a Washington, D.C., advocacy group funded by a hedge fund. He plans to tell senators how he came to believe that high-speed trading has made the market less fair for many investors, according to his advance testimony for a Senate panel on computerized trading. Blankfein Admits Tougher Regulation Needed (Reuters) "You have to go out and you have to take steps. You have to have different regulation, maybe more regulation in certain respects," he said, while addressing a room full of bankers and lawyers on Bay Street — the financial hub of Toronto. Bias Suit Against Deustche (Reuters) Kelley Voelker said she learned of her firing two weeks ago, after having been told on Aug. 21 that no one in her hedge-fund group would lose their jobs in connection with the bank’s global cost-cutting plan. Deutsche Bank had in July announced 1,900 job cuts, but on Sept. 11 said that number would grow. Voelker’s last day at her New York office was Sept. 12, her lawyer said. Voelker first sued Deutsche Bank last September. She claimed to have never been promoted since joining the bank in 1998, and that the bank had tried to demote her after she took maternity leave, which she called being “mommy-tracked.” Monica Lewinsky Set To Reveal Bill Clinton's Sex Secrets In Tell-All (NYP) Lewinsky, who turns 40 next year, is out for “revenge” and ready to air bombshell details from her Oval Office trysts with the former Horndog-in-Chief in a $12 million memoir, according to friends, who say she plans to describe plans to describe Clinton's “insatiable desire for three-way sex, orgies and the use of sex toys of all kinds." In the 14 years since she became a national punch line, Lewinsky has gotten her master’s degree, worked briefly as a news correspondent and launched a failed handbag line. “No one will hire her and she can’t get a job because of Clinton,” a sympathetic friend told The Post yesterday. “She needs to make money somehow.”