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Opening Bell: 2.29.16...Leap Day Edition!

BofA printing up fat stack of plink slips; "Spotlight" takes home Best Picture; Trump won't disavow the Klan; American Airlines first class seats soaked in urine; and more!
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Bank of America is preparing big layoffs in investment banking and trading [BI]
Bank of America is preparing for significant job cuts across its global banking and markets business, according to people with knowledge of the matter.
Senior executives in the division were tasked with identifying potential job cuts a few weeks ago, and this week were asked to increase their size, according to people familiar with the situation.
The cuts are likely to be over 5% of staff, the people said. Some business lines will face deeper cuts than others, and the details haven't been finalized.

`Spotlight' Wins Oscar Upset in Ceremony Dominated by Race [Bloomberg]
“Spotlight,” the story of the Boston journalists who exposed child abuse in the Catholic Church, was crowned best film of 2015 in an Oscars ceremony that saw host Chris Rock skewer Hollywood for its second-straight year of all-white acting nominees.

Buffett rails against presidential candidates who talk down economy [Reuters]
Warren Buffett bemoaned the "negative drumbeat" on the U.S. economy from presidential candidates in his annual Berkshire Hathaway Inc shareholder letter on Saturday, saying they are misleading Americans into believing their children will be worse off than they are.
"It's an election year, and candidates can't stop speaking about our country's problems (which, of course, only they can solve)," Buffett wrote, italicizing "they" for emphasis.

Impatient Barclays Investors Await CEO’s Plan [WSJ]
In his first three months as Barclays PLC chief executive, Jes Staley has redrawn the bank’s global footprint, reshuffled several top executives and pressed the flesh with everyone from the U.K.’s prime minister to U.S. regulators.
On Tuesday, when Barclays reports full-year earnings, investors will get their first insight into the 59-year-old U.S. banker’s vision for the lender. At stake: salvaging one of the U.K.’s last remaining universal banks.

Citi to Sell 20% Stake in China Guangfa Bank for $3 Billion [WSJ]
The New York-based bank is offloading the 20% stake to China’s biggest life insurance company by premiums. Citigroup purchased its holding in 2006 as part of a consortium of investors brought in to clean up the Chinese lender. Citigroup is exiting its stake because it no longer fits with the bank’s strategic plans for China, where it operates its own branch network, according to a person familiar with the situation.

Valeant Pharmaceuticals Chief Returns From Medical Leave [NYT]
J. Michael Pearson has returned as the chief executive of Valeant Pharmaceuticals International after two months of medical leave, setting him up for the challenge of restoring investor confidence in the embattled company.

Donald Trump Wavers on Disavowing David Duke [NYT]
Facing criticism from his rivals for the Republican presidential nomination, Mr. Trump later moved to distance himself from Mr. Duke. However, the sequence exposed Mr. Trump to questions about his judgment and fitness to be president.
“Well, just so you understand, I don’t know anything about David Duke,” Mr. Trump said in an interview with CNN. “I don’t know anything about what you’re even talking about with white supremacy or white supremacists.”

American Airlines awards $1,500 to passenger who sat in suspected urine [UPI]
An Iowa man was awarded $1,000 compensation -- plus $500 for his clothes -- by American Airlines after he sat in a plane seat soaked in suspected urine.
Mike Feinberg said he boarded a flight from St. Louis, Mo., to Des Moines Jan. 12 and he realized after about an hour that liquid from his first class seat had soaked into his clothes.

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J.P. Morgan’s Investor Day: Cut That Headcount (Deal Journal) JP Morgan is looking to cut another $1 billion out of its expenses this year, including somewhere around 4,000 jobs, according to a new presentation...And that may not be all the cuts. In a separate presentation on the consumer bank and mortgage operations the bank expects to cut costs in mortgage banking by $3 billion over this year and next year and cut headcount there by between 13,000 and 15,000. Banks Face Hurdle In Libor Fight (WSJ) Next week, lawyers for Barclays PLC, Royal Bank of Scotland Group PLC, UBS AG and more than a dozen other banks still under investigation are expected to ask a federal-court judge to throw out many of the suits, which seek class-action status. The suits, filed in civil court in California and New York by plaintiffs ranging from a retired cable-car driver in San Francisco to the city of Baltimore, have been piling up for nearly two years. They seek damages that could reach into the tens of billions of dollars from financial institutions that help determine the London interbank offered rate, or Libor. Barclays, RBS and UBS already have paid about $2.5 billion, and admitted wrongdoing, to settle rate-rigging allegations by U.S. and U.K. regulators. In court filings, lawyers for the 16 banks accused of wrongdoing say the lawsuits have no legal validity. The lawyers say regulatory settlements reached so far don't support the central allegation in most of the civil suits that banks engaged in illegal, anticompetitive behavior. 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A full Senate vote is likely to be scheduled in a couple of days and held sometime next week. Larry Summers: Sequestration 'Meat Cleaver' Is Irresponsible (CNBC) Avoiding the "sequester" is "round three" in the debt-reduction debate, former Clinton Treasury Secretary Lawrence Summers told CNBC Tuesday, arguing for a "balanced approach" because President Barack Obama has agreed to more spending cuts than revenue during the process. In a "Squawk Box" interview, Summers said the funding constraints of the Budget Control Act of 2011 — which resolved that year's debt ceiling crisis — were round one. "You had spending cuts that were far larger from the discretionary side, that were far larger than anything [on revenue] that happened in December. Right now, we're way in balance toward more spending cuts." Dominique Strauss-Kahn seeks to ban 'half-man half-pig' book (Telegraph) The "biographical novel" by Marcela Iacub, a lawyer and journalist, recounts her seven-month affair with the 64-year-old Mr Strauss-Kahn last year. It is due to be published on Wednesday under the title, Belle et Bête, or Beauty and Beast. But the one-time Socialist presidential hopeful will this morning seek to have the book banned for "violation of the intimacy of private life" and the author and her publisher fined 100,000 euros (£88,000) in damages...In the work, she claims Mr Strauss-Kahn would have transformed the Elysée Palace into a "giant swingers' club" had he been elected French president. In fresh accounts by those who have read the book yesterday, the last chapter narrates the pair's final encounter, ending in Miss Iacub receiving treatment in casualty after "the pig" left her with an "eaten ear". 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Spain Vows Reforms As Yields Soar (WSJ) Speaking at a conference, Finance Minister Luis de Guindos defended the need for the €10 billion ($13.11 billion) in cuts his government announced Monday to the country's health and education systems as Madrid struggles to slash its budget deficit to 5.3% of gross domestic product this year from 8.5% of GDP last year. The latest cutbacks come on the heels of the 2012 state budget presented late last month, which calls for €27 billion in spending cuts and tax increases. JPMorgan’s Iksil May Spur Regulators to Dissect Trading (Bloomberg) Market-moving trades by JPMorgan Chase’s chief investment office probably will force regulators to seek more detail on banks’ derivatives positions to help them distinguish risk management from speculation. Bruno Iksil, a London-based trader in the unit, has built derivatives positions linked to corporate credit that are so big he’s moved markets, according to hedge fund managers and dealers. 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Dennis Gartman: S&P 500 Earnings to Surprise on Upside (CNBC) “Are we going to see 5-10 percent growth in earnings by almost all of the S&P 500? Probably,” Gartman, the author of The Gartman Letter, said. Vancouver's Bagpipe Ban Sparks Outcry (Globe) ...the unusually specific ban, which hit a few bagpiping buskers in Vancouver, has run into opposition from one of the city’s top Scots. That would be Vancouver Mayor Gregor Robertson, who was sworn in for a second term wearing a kilt in reflection of his Scottish heritage. The mayor has been known to play the tuba, but is prepared to go the wall for bagpipers. He’s mindful of noise complaints, but says the ban brought about by the city engineering department will face opposition from city council, dominated by Mr. Robertson’s Vision Vancouver party. 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