Opening Bell: 5.25.16

Deal reached on Greek debt; BofA tipster gets to keep his reward; Motorist throws golf balls in romantic rejection road rage attack; and more.
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Deal Reached On Greek Debt (WSJ)
Eurozone finance ministers and the International Monetary Fund patched together a deal in the early hours of Wednesday that clears the way for fresh loans for Greece and sets out how the country could get debt relief in the future. The ministers, who held an 11-hour meeting in Brussels, said Greece had done what was necessary to unlock the next slice of financial aid, concluding a review of its bailout that was delayed for months. The new payouts will save Greece from defaulting on big debt redemptions to the IMF and European Central Bank in July.

Big Banks Ladle On The Risk (WSJ)
Banks generally do block deals for their most-favored customers, such as private-equity firms, in an effort to curry favor for future business. But lately, with few initial public offerings or subsequent corporate sales of new shares by U.S.-listed companies, banks have been doing a higher percentage of block-trade deals, exposing them to more risk.

Bank of America Tipster Gets to Keep His Reward (WSJ)
Edward O’Donnell blew the whistle on “the Hustle,” a high-speed mortgage-selling scheme that led to a $1.27 billion fine against Bank of America in 2014. On Monday, an appeals court threw out the penalty—but Mr. O’Donnell still gets to keep a $58 million reward.

Who Gets Venture Capital Funding? (Bloomberg)
The vast majority of venture capital goes to companies founded by men. Just 7% of the 2,005 founders on our list are women. Companies founded by women also get less money—an average of $77 million compared with $100 million for male-led startups. That shortfall parallels the overall U.S. pay gap, where women are paid an average of 79 cents for every dollar earned by men. Among cities with at least 20 founders, South San Francisco startups have the highest ratio of women founders at 16.1% while Santa Monica is second at 15%.

Customs officers find burritos contain meth, no guac (UPI)
U.S. Customs and Border Protection officers said an Arizona woman was arrested with two packages of meth that had been disguised as burritos. The agency said officers at the Morley Pedestrian Gate referred the 23-year-old Nogales woman for further inspection May 20 when attempting to return to the United States. A narcotics-detecting canine alerted officers to the presence of drugs and a search determined the woman was carrying more than a pound of methamphetamine in two packages that had been wrapped in tortilla shells to make them look like burritos.

SEC investigating Alibaba's accounting practices (Reuters)
Alibaba Group Holding Ltd (BABA.N) said it was being investigated by the U.S. Securities and Exchange Commission over whether the Chinese e-commerce company's accounting practices violated any federal laws.

These Are the Countries Where Millennials Will Work Themselves to Death (Bloomberg)
...12 percent of millennials around the world expect they won't ever retire. In Japan, a whopping 37 percent said they think they'll work until they reach the grave, compared to 18 percent in China, 12 percent in the United States and United Kingdom, and just 3 percent in Spain.

Panama Canal Fever Sweeps Globe Again as New Era in Trade Nears (Bloomberg)
A century after transforming global markets, the Panama Canal is about to redraw world trade once again. Nine years of construction work, at a cost of more than $5 billion, have equipped the canal with a third set of locks and deeper navigation channels, crucial improvements that will double the isthmus’s capacity for carrying cargo between the Atlantic and Pacific oceans.

Motorist throws golf balls in romantic rejection road rage attack (UPI)
A woman who rejected a fellow motorist's flirtatious advances recorded the man hurling golf balls at her car while traveling more than 60 mph. The 25-year-old woman, who asked not to be named, turned her dashboard camera to the side Saturday while driving on the M1 in Nerang, Queensland. The video shows a male driver in a blue car throwing golf balls at the woman's car as she films. "Are you actually kidding me?" the woman can be heard yelling. "This is what happens when you don't let men flirt with you," the woman says in a voiceover recorded after the incident. "They're golf balls."

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Opening Bell: 06.07.12

French, Greek Unemployment Rise (WSJ) The unemployment rate in France rose to 9.6% in the three months through March, the highest rate since 1999 and up from 9.3% in the final quarter of last year, national statistics agency Insee said Thursday...Data for Greece showed unemployment in the crisis-stricken country rose to a record high in March, with the proportion of young people without jobs topping 50% and women facing a higher rate of joblessness than men, Elstat, the country's statistics agency, said Thursday. The number of people without jobs climbed to 1.075 million, or 21.9% of the workforce Finnish Leader Says U.S. Worried About Europe Banks (Bloomberg) FYI: U.S. Treasury Secretary Timothy F. Geithner and Federal Reserve Chairman Ben S. Bernanke are concerned about the European banking industry, Finnish Prime Minister Jyrki Katainen said after meeting the two U.S. officials. Euro Co-Creator: We Made Mistakes (CNBC) Thygesen told "Squawk Box Europe" that the problems only became obvious after the euro had been introduced. "And there the efforts to continue consolidation, to make structural reforms, petered out," he said. He nevertheless admitted there was possible "some naivety" when the euro was created. “It’s possible there was an over-estimation of the positive effects of the single market on economies," he said. "In that sense there was possibly some naivety." Nasdaq CEO 'can't wait for [his] life to get back to normal' after Facebook IPO disaster (NYP, related) Nasdaq chief Robert Greifeld is pretty confident he will keep his job following the botched Facebook IPO, but he concedes the episode has come at a tremendous personal and professional cost. "I can't wait for my life to get back to normal," Greifeld conceded to a friend during a golf tournament this weekend. Greek Far Right Politician Attacks 2 Women on Live TV (CNBC) Tensions ahead of fresh elections in Greece on June 17 spilled over in a televised political debate on Thursday when a spokesman for the far right Golden Dawn party physically attacked two female members of parliament from opposing political parties throwing water at one and punches at another. Video of the incident, posted on Youtube but since removed, shows Ilias Kasidiaris in heated exchanges with Syriza party deputy Rena Dourou. The video shows both politicians shouting over the other. Communist party member of parliament Liana Kanellis is also involved. Toward the end of the footage, Kasidiaris picks up a glass of water and throws it across the table at Dourou. Kanellis then jumps back out of her seat next to him and throws a number of papers at him. His reacts by pushing Kanellis and then striking her multiple times. Officials Grilled On JPMorgan (WSJ) A proposed regulation barring banks from trading with their own money would have forced J.P. Morgan Chase to document and more carefully evaluate the risks it took in its trading activities that have led to a multibillion-dollar loss, a top Federal Reserve official said. The comments from Fed governor Daniel Tarullo is the latest evidence of how the bank's big loss is shaping the debate on banking regulation. Senators grilled top banking officials Wednesday on how J.P. Morgan was able to place large, risky bets without raising the alarm among regulators or members of top management...Republicans on the panel, who in years past might have come more firmly to the bank's defense, instead used the high-profile hearing to praise Mr. Tarullo's opening remarks, in which he said that the J.P. Morgan loss was a reminder of the importance of thicker, higher-quality capital cushions, especially at the biggest, most complex banks Officials Say Fed May Need To Act (WSJ) A trio of Federal Reserve officials warned of risks to the health of the U.S. recovery and said the central bank might need to take new actions to support economic growth. Most notable among them, Fed Vice Chairwoman Janet Yellen cited risks that the rate of inflation could drop below the Fed's 2% goal or economic growth would slow. Fed action might be justified merely "to insure against adverse shocks" that might derail the recovery, she said, adding it could also be needed if the Fed concludes the recovery "is unlikely to proceed at a satisfactory pace." NYSE rips Nasdaq’s ‘cheap’ FB trick (NYP) NYSE Chief Duncan Niederauer, already irked at Greifeld because of his failed attempt to take over the Big Board, got overheated again yesterday after Nasdaq announced a plan to discount trading fees as part of a make-nice offering to its clients. “This is tantamount to forcing the industry to subsidize Nasdaq’s missteps and would establish a harmful precedent that could have far-reaching implications for the markets, investors and the public interest,” NYSE wrote in a terse statement. Zach Morris: ‘Saved By the Bell’ was NOT a ‘great’ show (NYDN) "It's not a great show," Mark-Paul Gosselaar said yesterday. "The writing is kind of hokey ... it's very much a piece of that time." But though he felt the show lacked substance, he says it definitely taught him and his castmates a great deal about working hard in the industry. "It taught me to have a strong work ethic, and to take it very seriously," he said. "Even though we had fun, the one thing the producers instilled in us is that this is a business. "You can still have all your fun, but you have to do your job, and then you can reap all the benefits at the end."

Opening Bell: 04.02.12

Greece Faces Bond-Swap Holdouts (WSJ) The majority of investors holding foreign law Greek bonds haven't yet been included in the country's debt-swap deal as they have rejected or failed to agree to the exchange, said the country's debt agency Monday, setting a new deadline for the offer. Financiers and Sex Trafficking (NYT) "THE biggest forum for sex trafficking of under-age girls in the United States appears to be a Web site called Backpage.com. This emporium for girls and women — some under age or forced into prostitution — is in turn owned by an opaque private company called Village Voice Media. Until now it has been unclear who the ultimate owners are. That mystery is solved. The owners turn out to include private equity financiers, including Goldman Sachs with a 16 percent stake. Goldman Sachs was mortified when I began inquiring last week about its stake in America’s leading Web site for prostitution ads. It began working frantically to unload its shares, and on Friday afternoon it called to say that it had just signed an agreement to sell its stake to management. 'We had no influence over operations,' Andrea Raphael, a Goldman Sachs spokeswoman, told me." Bond King's Trade Pays Off (WSJ) After suffering one of his worst performances ever in 2011, over the past three months, Bill Gross, manager of Pacific Investment Management Co.'s Total Return Fund, rode an aggressive bet on mortgage bonds to beat most of the fund's rivals and the index against which bond-fund managers measure themselves. Mr. Gross's fund, the world's biggest bond fund with $252 billion in assets, recorded a 2.88% return in the three months through March. The performance beat the benchmark Barclays Capital Aggregate Bond Index by 2.58 percentage points, ranking in the top 11% of all bond mutual funds for the quarter, according to investment-research firm Morningstar Inc. In Wake of Groupon Issues, Critics Wary of JOBS Act (WSJ) A little-noticed provision in the new JOBS Act would allow companies to iron out disagreements with regulators behind closed doors before they go public—a provision that might have prevented investors from finding out about Groupon Inc.'s early accounting questions until after they had been resolved...Critics say that measure would allow a company like Groupon, which had well-publicized disagreements with the SEC over its accounting last year, to resolve such issues under the radar, without investors learning of them until later although still before any IPO. Goldman Eyes $3 Billion Property Debt Fund (Reuters) A private equity arm of Goldman Sachs is looking to launch a $3 billion property debt fund in a bid to take advantage of a growing shortage of real estate financing across the UK and Europe...Real Estate Principal Investment Area (REPIA) is exploring options to create a fund that would provide senior and mezzanine loans to property investors, and will target property lending that is riskier but which would offer higher potential returns. Md. woman won't share $105M lotto jackpot with McD's co-workers (NYP) Workers at the fast-food joint who pooled their cash for tickets are furious at a colleague who claims she won with a ticket she bought for herself and has no intention of sharing. “We had a group plan, but I went and played by myself. [The ‘winning’ ticket] wasn’t on the group plan,” McDonald’s “winner’’ Mirlande Wilson 37, told The Post yesterday, insisting she alone bought one of the three tickets nationwide that will split a record $656 million payout...[On Saturday], a delirious Wilson had called co-workers to break the news — tellingly used the first-person singular. “I won! I won!” she cried, Allen said. Another colleague, Davon Wilson, no relation, said he was there when Mirlande Wilson called. “She said, ‘Turn on the news.’ She said she had won. I thought it was a joke or something. She doesn’t seem like a person who’d do this,” he said. Allan said he and Layla went to Wilson’s home and pounded on the door for 20 minutes until she finally came out. “These people are going to kill you. It’s not worth your life!” Allen said he told her. “All right! All right! I’ll share, but I can’t find the ticket right now,” she finally said, according to Allen. Resistance to austerity stirs in southern Europe (Reuters) An unexpectedly broad general strike in Spain on Thursday and mounting opposition to Prime Minister Mario Monti in Italy are among indicators that resistance is growing in a region at the center of concerns about a resurgence of the euro zone debt crisis. Biggest Bond Traders See Worst Over for Treasuries (Bloomberg) Signs of strength in the economy, which caused a 5.56 percent loss in bonds maturing in 10 years or more last quarter, may fade in the second half of 2012, the dealers say. Tax cuts are expiring, $1 trillion of mandatory federal budget cuts are due to kick in and $100-a-barrel oil is eating into consumer spending. With inflation in check, Fed Chairman Ben S. Bernanke said last week that the central bank will consider further stimulus, even after upgrading its economic outlook March 13. Marc Faber: "Massive Wealth Destruction Is About To Hit Investors" (CNBC) FYI. Twitter takes Connecticut official's April Fools' Day joke to the public (NHR) It all started with a tweet at 5:30 a.m. Sunday, from state government official Mike Lawlor: “Rep. Dargan in hospital following accident.” By 11 a.m., news organizations statewide, including the NewHaven Register, were retweeting the “news” and calling officials to confirm details of the accident. After all, it was assumed, it must be accurate if the tweet came from the highly respected Lawlor, a former longtime state representative and now the state’s undersecretary for Criminal Justice Policy and Planning. But no... Dargan was reached by phone and confirmed he was fine and did not have an accident. “I am fine. Lawlor must have tweeted it.

Opening Bell: 11.20.12

Former UBS Trader Found Guilty (WSJ) Former trader Kweku Adoboli was found guilty on one count of fraud in connection with a $2.3 billion loss the Swiss bank suffered last year, as the juryin the alleged rogue-trading case continued to deliberate on five other counts he was charged with. The partial verdict comes nearly a week after the jury began deliberating following a roughly eight-week trial. It is unclear when the jury might reach verdicts on the other five counts or when sentencing might take place. Mr. Adoboli pleaded not guilty to all six counts. Shakeup At Credit Suisse (WSJ) Credit Suisse said Tuesday that it will combine the Swiss bank's asset management unit with its private bank, but stopped short of announcing the more drastic revamp analysts expected after crosstown rival UBS decided to fire 10,000 bankers. Robert Shafir, who currently heads the U.S. business of Credit Suisse, will take the helm of a new private banking and wealth management division jointly with Hans-Ulrich Meister, who has run the private banking business, the bank said. At the investment bank, Gael deBoissard is being promoted to co-head of the division, jointly with incumbent Eric Varvel. Following the revamp, Credit Suisse will have only two units—wealth management and investment banking--which are distinctly separate from each other, a move that is "in alignment with the new regulatory reality," Chairman Urs Rohner said. Greece Waits Nervously For Vital Bailout Funds (Reuters) Officials familiar with preparations for the finance ministers' meeting expect a "political endorsement in principle" on unfreezing loans to Athens, after Greece completed almost all the reforms that were required of it in exchange for funding. The final go-ahead from the ministers is likely to come only once the remaining few Greek reforms are in place and once there is agreement in the euro zone on how to reduce the country's huge debt and secure extra financing while it is being done. French Downgrade Widens Gulf With Germany as Talks Loom (Bloomberg) France’s loss of the top credit rating at Moody’s Investors Service may weaken President Francois Hollande’s leverage in European budget talks and deepen concern in Germany over its neighbor’s lagging competitiveness. The downgrade late yesterday of Europe’s second-biggest economy underscores the concern expressed by allies of German Chancellor Angela Merkel that the Socialist Hollande’s failure to recognize the urgency of France’s woes risks a deepening of Europe’s slump. “This downgrade will certainly increase pressure on France big-time,” Jan Techau, director of the Carnegie Endowment for International Peace office in Brussels, said today in a phone interview. “It gives Germany more of an edge over France.” ‘Tide Turning’ Against France, Say Economists (CNBC) “The tide is turning for France. Although the country's bond market is likely to remain resilient — the yield on 10-year paper is little changed [Tuesday] morning and still stands a whisker above its record low of 2.06 percent on July 19 — French debt looks more and more overvalued relative to fundamentals,” Nicholas Spiro, Managing Director of Spiro Sovereign Strategy, said in a note on Tuesday. France has enjoyed low borrowing costs as investors have viewed the country as a safe haven in comparison with its southern European cousins. The downgrade of France to AA1 with a negative outlook by Moody’s has thrown its “deteriorating fundamentals….into sharp relief” Spiro said. China’s Richest Woman Divorces Husband, Fortune Declines (Bloomberg) Longfor Properties Co. Chairwoman Wu Yajun is no longer China’s richest woman after divorcing Cai Kui and transferring about 40 percent of the developer’s shares the couple used to own to her ex-husband. Her stake in Longfor, which Wu co-founded with Cai, dropped from a combined 72 percent to 43 percent, while Cai retains 29 percent, according to filings from Hong Kong’s stock exchange. Wu’s net worth is estimated at $4.2 billion, down from $7.3 billion as of 5:30 p.m. New York time yesterday, according to the Bloomberg Billionaires Index. New York Prepares Lawsuit Against Credit Suisse (Reuters) The New York attorney-general is preparing to file a civil lawsuit against Credit Suisse for misleading investors who lost billions of dollars on mortgage-backed securities, according to a source familiar with the matter. The lawsuit, which is expected to be filed on Wednesday, will allege that Credit Suisse misrepresented the quality of loans packaged in securities, according to the source. Petraeus Mistress Paula Broadwell To Jill Kelley: 'I can make you go away' (NYDN) The notes Paula Broadwell sent to Jill Kelley were far more sinister than previously reported and seemed like the rantings of someone “clearly unhinged,” a close friend of Kelley said Monday. “This wasn’t just a catfight. Any normal person who got emails like that would have immediately called the police,” said the friend. She said Kelley read her the emails when she called, panic-stricken and seeking advice in the days before the scandal became a stunning public spectacle and led to Petraeus’ resignation as CIA director. The friend, who did not want to be identified, said Kelley saw the emails as death threats, specifically one in which Broadwell vowed to “make you go away.” [Meanwhile,] Broadwell...bloodied a female news photographer’s forehead Monday in a confrontation outside the biographer’s Charlotte, N.C., home. Broadwell smacked the photographer with the driver’s-side door of her Nissan Pathfinder SUV. “I had my camera and in all the chaos the door slammed and I got hit in the head with the flash,” said Nell Redmond, a freelancer for The Associated Press. Redmond suffered a small cut and is not pressing charges. Morgan Stanley’s Doom Scenario: Major Recession in 2013 (CNBC) The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent. “More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report. Under the bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff” leading to a contraction in U.S. GDP for the first three quarters of 2013. In Europe, the bank’s pessimistic scenario assumes a failure of the European Central Bank (ECB) in cutting rates and a delay of its bond-buying program. Judge Tosses Suit Over AIG (WSJ) A federal judge in Manhattan dismissed a $25 billion lawsuit by Starr International Co., which Mr. Greenberg runs, against the New York Federal Reserve Bank over claims the Fed breached its fiduciary duty to AIG's shareholders in the rescue during the U.S. financial crisis. It is one of two lawsuits Starr, AIG's largest shareholder at the time of the government takeover, is pursuing over the bailout. Mark Cuban Throws A Tantrum On Facebook Fee (NYP) Facebook used to be a “time suck” — now it just sucks. That’s the view of Dallas Mavericks owner Mark Cuban, who is urging marketers to take their business elsewhere after the social network started charging the tech billionaire to send messages to all the team’s fans. “In the past we put FB first, Twitter second,” Cuban wrote in a roughly 1,700-word blog post calling out the social network. “FB has been moved to the bottom of a longer list.” He added: “FB doesn’t seem to want to accept that its best purpose in life is as a huge time suck.” At issue is Facebook’s filtering of posts that appear in users’ news feeds. The site says it is trying to present users with content that they have shown an interest in while cutting down on spam. But Cuban says it is a pay-to-play move. He argues that Facebook is making it harder for marketers to reach their fans without paying for so-called “promoted posts.” And making the site more targeted and efficient is actually a mistake, according to Cuban. He claims most people go to the site because it’s a “time suck” that they enjoy. Cannibal Cop Pleads Not Guilty (NYDN) “cannibal cop,” accused of conspiring with an online buddy to kidnap, rape and slow-cook women, pleaded “not guilty” Monday to two federal charges. Gilberto Valle, 28, was arraigned in Manhattan Federal Court on charges of conspiracy to commit kidnapping and accessing the federal National Crime Information Center database without authorization. Valle’s public defender, Julia Gatto, made a third attempt at getting bail for her now-infamous client. "You have a hard row to hoe," said Judge Paul Gardephe...Valle — who was suspended after being arrested last month in a joint NYPD and FBI investigation — is accused of chatting last July with a sick online buddy about “kidnapping, cooking and eating body parts” of a woman identified as Victim 1, according to the indictment released Friday.

Opening Bell: 06.06.12

Greece Warns of Going Broke as Tax Proceeds Dry Up (NYT) Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals. Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s. Spain Warns It Needs Help (WSJ) Oh, hey, in case it was unclear: "Spain made its most explicit suggestion yet that it would seek help from Europe for its struggling banks, as the country's budget minister said high interest rates on Spanish bonds were a signal the government risks losing access to financial markets." Nobel Winner Stiglitz Sees More Recession Odds In Romney (Bloomberg) History shows that the adoption of fiscal austerity when an economy is weak can have disastrous consequences, as happened in the U.S. in 1929 on the eve of the Great Depression, Stiglitz told Bloomberg editors and reporters in New York Monday. “The Romney plan is going to slow down the economy, worsen the jobs deficit and significantly increase the likelihood of a recession,” said Stiglitz. US Already in 'Recession,' Extend Tax Cuts: Bill Clinton (CNBC) In a taped interview aired with CNBC, the 42nd president called the current economic conditions a "recession" and said overzealous Republican plans to cut the deficit threaten to plunge the country further into the debt abyss. Blanked Bankers Double As Bonuses Disappear, Survey Shows (Bloomberg) The proportion of investment bankers who got no bonuses last year more than doubled to about 14 percent, a poll by executive-search firm Options Group shows. The percentage of employees who weren’t given an annual award rose from 6 percent in 2010, a report yesterday from the New York-based company said. Getting no bonus, or being “blanked” by your employer, isn’t the smear it once was because base salaries increased afterthe 2008 financial crisis, said Michael Karp, managing partner of Options Group. The pizza has ‘sex’tra toppings (NYP) An Italian eatery just steps from Yankee Stadium is charging customers for slices of pizza — and sex with their wait staff, a new lawsuit claims. Yankee fans heading to Stadium Pizza after ball games are treated to a smorgasbord of waitresses and bartenders moonlighting as prostitutes, according to a lawyer for former employee Olga Contreras, who is suing the restaurant’s owners for sexual harassment, said her lawyers, Matthew Blit and Amanda Gudis. Contreras says she has spotted one worker frequently giving oral sex, and customers disappearing into the restroom with the staff. Morgan Stanley May Sell Piece of Commodities Unit (CNBC) Worried about the potential impact of new regulations, Morgan Stanley is considering selling a minority stake in its commodities business, say people familiar with the matter, and has held preliminary conversations with potential suitors in recent months about how a deal could look. Geithner Said To Seek U.S. Bankers’ Dodd-Frank Objections (Bloomberg) Treasury Secretary Timothy F. Geithner has challenged bankers to give him specifics on their longstanding complaint that the Dodd-Frank Act is imposing costly, confusing and burdensome regulations on them, according to four people familiar with the matter...Geithner offered to use his ability to reach across agencies to better coordinate and streamline rules if he found the report convincing, according to the people, who asked not to be identified because they weren’t authorized to discuss the study. The complaints include the handling of so-called stress tests of banks’ ability to weather a crisis, capital requirements and restrictions on mortgage servicing. Feds probing Nasdaq’s $10.7M FB profit (NYP) ...some of the issues the agency is believed to be looking at is whether the exchange made its trades ahead of clients and other participants, sources said. The regulators also is looking into whether the trading systems at other Nasdaq member firms made matters worse. Italy To Push 'Pink Quotas' (WSJ) A new law requires Italian listed and state-owned companies to ensure that one-third of their board members are women by 2015. Currently, only around 6% of the total number of corporate board members in Italy are women—one of the lowest levels in Europe and a number that reflects how few women work here. Gold Bugs Defy Bear-Market Threat With Soros Buying (Bloomberg) Bank of America was joined by Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc in urging investors to buy in December and January. Now, after gold fell 10 percent in a four-month slide through May, they say prices will rebound this year or next as the Federal Reserve shores up the world’s biggest economy by easing monetary policy and devaluing the dollar. Billionaire George Soros bought more in the first quarter and hedge-fund manager John Paulson held on to the biggest stake in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, Securities and Exchange Commission filings show. Some investors are refusing to capitulate even after failed elections in Greece drove the euro to a two-year low against the dollar and gold slumped as much as 21 percent in December from the record $1,923.70 set in September. Oregon woman wins $900K after contracting herpes from sex partner (NYDN) “He was 69, my client was a very attractive 49. My argument to the jury was he just wanted to sink his hooks into her,” the plaintiff’s attorney said. The jury found that the man was 75% at fault, while the woman was 25% responsible. The jurors also decided that by exposing her to the STD, the man committed battery and made her suffer greatly.

Opening Bell: 11.16.12

JPMorgan Faces US Action (WSJ) Regulators are expected to serve J.P. Morgan Chase with a formal action alleging weaknesses in the bank's antimoney-laundering systems, said people close to the situation. The cease-and-desist order from the Office of the Comptroller of the Currency is part of a broader crackdown on the nation's largest banks, the people said. The OCC is expected to require J.P. Morgan to beef up its procedures and examine past transactions, these people said...The unusually blunt tone of the OCC's meetings with large banks on Nov. 8-9 spread quickly among bank executives. Some viewed the meeting as an attempt by the OCC to counter the perception that it had been too cozy with the banking industry and to step out of the shadows of the year-old Consumer Financial Protection Bureau, which has been aggressive about publicizing enforcement actions and fines levied on banks. "It was a spanking," said one senior bank executive who didn't attend the meeting but heard about it from colleagues. "The message was, 'You are living in a world of zero tolerance,'" said another bank executive briefed on the meeting. FHA To Exhaust Capital Reserves (WSJ) The Federal Housing Administration's projected losses hit $16.3 billion at the end of September, according to an independent annual audit to be released Friday, a much larger figure than had been forecast earlier. The report suggests the FHA will require taxpayer funding for the first time in its 78 years, though that won't be decided until early next year. Citigroup Seeing FX Signals of Early End to Stimulus (Bloomberg) “Does the market really believe that the 2015 Fed is going to be constrained by the 2012 Fed?” Steven Englander, Citigroup’s New York-based global head of G-10 strategy, said in a telephone interview from New York. “The answer is ‘no.’” UK Bank Bailout Money ‘May Never Be Recovered’: Report (CNBC) “There is a risk that the 66 billion pounds invested in RBS and Lloyds may never be recovered,” Margaret Hodge, chair of the Committee of Public Accounts, warned in a report into the sale of taxpayer-backed Northern Rock. Banks Seen Shrinking for Good as Layoffs Near 160,000 (Reuters) Major banks have announced some 160,000 job cuts since early last year and with more layoffs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly 2-to-1...Well-paid investment bankers are bearing the brunt of cost cuts as deals dry up and trading income falls. That is particularly the case in some activities such as stock trading, where low volumes and thin margins are squeezing banks. "When I let go tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do," said one top executive at an international bank in London, on condition of anonymity. Twinkies Maker to Liquidate, Lay Off 18,500 (Reuters) Hostess Brands, the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers...Irving, Texas-based Hostess has 565 distribution centers and 570 bakery outlet stores, as well as the 33 bakeries. Its brands include Wonder, Nature's Pride, Dolly Madison, Drake's, Butternut, Home Pride, and Merita, but it is probably best known for Twinkies — basically a cream-filled sponge cake. Lagarde on Greece: 'Not Over Till the Fat Lady Sings' (Reuters) "It is a question of working hard, putting our mind to it, making sure that we focus on the same objective which is that the country in particular, Greece, can operate on a sustainable basis, can recover, can get back on its feet, can reaccess markets as early as possible," Lagarde said when asked about the possibility of a Greek deal next week. "It is not over until the fat lady sings as the saying goes." Alabama secessionist says working people must unite to save America, Bring Back His Topless Carwash (AL) “Derrick B.,” the man who started a petition seeking Alabama’s withdrawal from the U.S., is a truck driving, knife collecting former owner of a topless car wash who describes himself as “an absolute Libertarian.” Derrick Belcher, 45, of Chunchula, said in an interview late Monday that secession may be the only way to save working Americans from crushing debt, burdensome federal regulations and rising taxes. “I don’t want to live in Russia. I don’t believe in socialism,” said Belcher, an operations manager for a Mobile trucking company. “America is supposed to be free.” Belcher blamed the government for shutting down his former business. Belcher said his Euro Details car wash, which featured topless women, was successful for a decade on Halls Mill Road in Mobile. But he said he was arrested and charged with obscenity by city officials in 2001. “The government ripped my business away, and now they’re choking America to death with rules and regulations,” he said. Belcher said he fully expects the petition to reach 25,000 signatures -– in fact, he’s aiming far higher, saying he’d like to double that number to ensure that it is recognized by the White House. He said the petition got a jump start at a gun and knife show held at the Greater Gulf State Fairgrounds last weekend. Tiger Global To Give Investors (Some Of) Their Money Back (NYP) Hedge-fund honchos rarely return capital voluntarily. Recently, Moore Capital’s Louis Bacon gave money back to investors, but it was because the poorly performing fund couldn’t find enough investing opportunities. That’s clearly not the case for Tiger Global, which has gained 25.5 percent so far this year. “We continue to believe that managing a smaller asset base gives us the best chance to generate strong returns over the long-term,” the managers wrote in a Nov. 9 letter to investors Journalist To Be Tried Again Over Swiss Bank List (Reuters) Greek journalist who published the names of more than 2,000 Greeks with Swiss bank accounts will stand trial again after a prosecutor appealed a decision to acquit him of breaking data privacy laws, court officials said on Friday. The speedy arrest, trial and acquittal of magazine editor Costas Vaxevanis for publishing the so-called "Lagarde List" had aroused international concern and captivated recession-weary Greeks angry at the privileges of the elite. The Athens Public Prosecutor's office said the November 1 acquittal was faulty and that Vaxevanis must be tried again by a higher misdemeanor court on the same charges. If found guilty, Vaxevanis could be jailed for up to two years or face a fine. T-Mobile customer stabbed while disputing bill (Philly) A customer who went to an Upper Darby T-Mobile store Tuesday to complain about his bill left with a stab wound to his abdomen that police said had been inflicted by an employee. Upper Darby Police Superintendent Michael Chitwood said the 59-year-old victim went to the store on State Road near Lansdowne Avenue about 1:15 p.m. to complain about being double-billed. What started out as a conversation between the customer and employee Darnell Schoolfield devolved into a physical confrontation, police said. During the fight, the customer ripped Schoolfield's name tag from his shirt and took the tag to the Upper Darby police station to file an assault complaint. "During the course of filing the complaint, he realizes he's bleeding profusely from the left side of the stomach," Chitwood said. "He'd thought he was just punched." The victim was taken to the Hospital of the University of Pennsylvania, where he had surgery and was listed in serious condition. It's unknown what Schoolfield used to allegedly stab the victim or how their interaction went so awry.

Opening Bell: 11.06.12

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."

Opening Bell: 03.12.12

Greek Bailout Payment Set to Be Approved by Euro Ministers After Debt Deal (Bloomberg) Ministers from the 17 nations that share the euro will gather in Brussels today to sign off on the 130 billion-euro ($170 billion) second package for Greece after bondholders agreed last week to take a loss on the country’s debt. They’ll also focus on Spain’s budget-cutting efforts and Portugal’s aid program, underscoring their desire to prevent contagion. MF Global Bonuses Under Fire (WSJ) In a letter to former Federal Bureau of Investigation Director Louis Freeh, Sen. Jon Tester (D., Mont.) said it would be "outrageous" to proceed with a proposal to a bankruptcy judge that could result in payouts of several hundred thousand dollars each for MF Global's chief operating officer, finance chief and general counsel. The size of the bonuses would depend on their job performance in helping Mr. Freeh maximize value for creditors of the company. Pandit Pay Climbs as Citigroup Revenue Slumps (Bloomberg) Pandit’s $15 million pay package for 2011 and a multi-year retention package announced in May could total $53 million, based on regulatory filings and an analyst’s estimate. The CEO also received $80 million last year from the New York-based firm’s purchase of his Old Lane Partners LP hedge fund in 2007. Latest Stress Tests Are Expected to Show Progress at Most Banks (NYT) In another milestone in the banking industry’s recovery from the financial crisis, the Federal Reserve this week will release the results of its latest stress tests, which are expected to show broadly improved balance sheets at most institutions...The examination is not merely an intellectual exercise. If institutions fall short, they could be required to raise billions in new capital, depressing their shares. If they pass, dividend increases and stock buybacks by the strongest institutions will follow as they did after the second round of tests a year ago, pleasing investors whose banks’ stocks still trade at levels far below where they where before the collapse of Lehman Brothers in September 2008. Mortgage Deal Is Built On Tradeoffs (WSJ) Banks agreed to cut loan balances, a step they had long resisted, but they won't only get credit against their shares of the $25 billion settlement for reducing balances of loans they own. In some cases, they can receive partial credit if investors shoulder the cost of writing down loans the banks service. The banks also will receive credit for some steps they are already taking, such as approving short sales, where a home is sold for less than the amount owed, according to draft settlement documents reviewed by The Wall Street Journal. The Unravelling Of A Casino Marriage (WSJ) Messrs. Wynn and Okada, both known for their big, demanding egos, were something of an odd couple. Mr. Wynn is famous for a Cheshire-cat grin and smooth, grandiose soliloquies. Mr. Okada, a former engineer who had specialized in vacuum tubes, was sometimes seen as sullen and withdrawn by company outsiders. Born the same year, 1942, Mr. Wynn and Mr. Okada became "completely and totally bonded," Mr. Wynn said after they were introduced by a mutual friend. Mr. Wynn was hunting for investors who would give him leeway to create resorts that might take years to design and build. Mr. Wynn came of age during an era when casino operators were emerging from the industry's mob-infested roots. He hobnobbed with such celebrities as Steven Spielberg and Clint Eastwood. Mr. Okada, though often ranked among the richest people in Japan, largely stayed out of the spotlight. Missing Hiker Cuddled With Cat (AP) Snuggling in a blue sleeping bag, Margaret Page and her cat survived 3 1/2 weeks in a rugged New Mexico national forest, even though temperatures dropped below freezing nearly every night...The area had seen average highs reach around 60 degrees with evening lows in the 20s. It didn’t see much rain or snow, but there were some high winds...Relying on a creek for drinking water, Page and her cat named Miya lived on just a handful of supplies, rescue workers said Friday. Wells Fargo Poised to Lead Payouts Higher (Bloomberg) Wells Fargo and Citigroup may join banks unleashing more than $9 billion in dividend increases and share buybacks if they get passing grades this week on the Federal Reserve’s annual stress test. Thirteen of the 19 largest U.S. lenders may say they’ll pay out $3.79 billion in extra dividends this year and buy $5.52 billion of additional shares, according to estimates of six analysts compiled by Bloomberg. That’s 30 percent more than they spent last year. San Francisco-based Wells Fargo probably will offer the biggest difference at a combined $4.16 billion, followed by Citigroup with $2.92 billion. SEC Probes Operators’ Use of Multiple Markets (FT) According to people familiar with the probe, SEC officials are focusing on whether operators use multiple exchanges to appease customers which provide large order flows. At Lunch, Bloomberg And Obama Discuss Future (NYT) Mr. Bloomberg’s precise response is unknown. But their meeting a few weeks ago, confirmed by aides to both leaders and previously undisclosed, was potentially significant for both men, as Mr. Obama seeks support for his presidential campaign and Mr. Bloomberg ponders his post-mayoral career. Soros-led hookup may save American Apparel (NYP) George Soros has found a new financial disaster from which to profit: American Apparel. The billionaire octogenarian — who, like American Apparel’s controversial CEO Dov Charney, has lately been entangled in lawsuits with young, beautiful women — is backing a firm that’s in talks to extend a credit line worth as much as $80 million to the cash-strapped clothing chain, The Post has learned. The credit facility from Crystal Financial, a Boston-based firm that boasts Soros’ hedge fund as its lead investor, will immediately replace and expand a $75 million revolving credit line from Bank of America that matures in July, sources said. How To Become A Skeeball Master (YG) Not all skeeball machines are created equal. Between the shape of the ramp, the geometry of the backboard, and the precise characteristics of the rolling surfaces, each skeeball machine plays slightly differently -- and those variations can throw you off your game. If you're getting settled into a serious practice session, stock up with plenty of tokens and don't step away from your chosen spot....many skeeball aficionados prefer to kneel down to play. Maybe the lower stance helps them line up their shot, or perhaps being closer to the action helps them judge their throwing power a little more accurately. Whatever the reason, it's a tried and true technique for expert skeeball players -- and it might work for you, too. If you're struggling to settle into a comfortable throw, give it a try.

Opening Bell: 04.08.13

Portugal Seeks Budget Options (WSJ) Prime Minister Pedro Passos Coelho said he would look for fresh spending cuts to keep Portugal's €78 billion ($101 billion) international bailout program on track following a Constitutional Court decision that threw his government into crisis by striking down some of its planned austerity measures. Hedge Fund Star Gets A Hip-Check (WSJ) Jeffrey Vinik's Tampa Bay Lightning are struggling, but the performance of his National Hockey League team isn't the only worry for the veteran stock-picker. Investors have asked to pull around $1.5 billion from his hedge-fund firm after a period of poor performance, according to people briefed on the matter. The withdrawal requests amount to around 18% of the roughly $8 billion that was run by Vinik Asset Management. The redemption requests have come as Mr. Vinik, who rose to fame in the 1990s as the manager of Fidelity Investments' Magellan fund, has added a new investment team and moved from Boston to Tampa to be closer to the Lightning, the franchise he owns. The moves have raised concerns in some quarters that Mr. Vinik, 54 years old, may have become less focused on investing, according to people familiar with the firm. Lew To Press For Policy Changes (NYT) Jacob J. Lew began his first trip to Europe as Treasury secretary on Sunday, a four-city tour in which he is expected to try to persuade finance ministers to pursue a little more growth and a little less austerity to improve the economic fortunes of the Continent and the world. Rogue Trader Leeson to Advise Irish Borrowers on Bank Debts (Bloomberg) Nick Leeson, the trader whose wrong- way bets on Japanese stocks ruined Barings Plc, is joining a mediation firm to advise Irish borrowers looking to renegotiate debts in the wake of the real estate collapse. Leeson, 46, who has lived in Ireland for more than 10 years, will join GDP Partnership as a principal as it expands into Dublin, the company said in a statement posted on Twitter by Leeson. There is “a lot of fear and stress currently in the country with debt the root of the problem,” it said. Greek Bank Merger Halted (WSJ) Greece's two largest lenders are heading for state control after their merger was halted by the government over the weekend. The unexpected move came after National Bank of Greece and Eurobank came up short in their plans to raise capital and amid fears by the country's international lenders that the combined entity could become too big to be bailed out by the government. Putin Faces Down Topless Protest In Germany (Reuters) Russia urged Germany to punish a group of women who staged a bare-breasted protest against President Vladimir Putin on Monday during a visit to a trade fair in Hanover with German Chancellor Angela Merkel. Three members of the women's rights group Femen, which has staged protests against Russia's detention of the feminist punk band P*ssy Riot around Europe, disrupted a visit by Putin and Merkel to an industry fair focusing on Russian business. They stripped off to the waist and shouted slogans calling the Russian leader a "dictator" before being covered up and bundled away by security men. "This is ordinary hooliganism and unfortunately it happens all over the world, in any city. One needs to punish (them)," said Kremlin spokesman Dmitry Peskov. Investors Bankroll Lawsuits (WSJ) A new generation of investors is plunging into "litigation finance," putting up millions of dollars to fund lawsuits in hopes of collecting when verdicts come down. Established financiers are expanding into new areas, including loans to law firms, and finding clients among the biggest American companies. Meredith Whitney Blasts Critics In Debut Book (NYP) Prominent bank analyst Meredith Whitney comes out swinging at critics in her debut book, “Fate of the States.” The Wall Street financial analyst, who made headlines with her accurate 2007 prediction that Citigroup would cut its dividend amid the unfurling financial crisis, says she was “pilloried in the financial press” after she warned of looming state- and city-bond defaults resulting from budget shortfalls. Whitney, who made her forecasts on CBS’s “60 Minutes” back in December 2009, blasted critics who claim her prediction of municipal-bond defaults suggested they would all happen at once: “For the record, I never said those 50 to 100 defaults would all happen in 2011.” Hedge Funds Cut Bets Most Since ’08 as Prices Slump: Commodities (Bloomberg) Hedge funds reduced bets on a commodity rally by the most since 2008 as rising supplies of everything from copper to sugar and slowing U.S. growth drove prices to the biggest slump in six months. General Electric to Buy Lufkin Industries for $3.38 Billion Cash (Reuters) Lufkin, which sells and services oilfield pumping units and power transmission products, has operations in the U.S., Canada, Latin America, the Middle East, and Europe. Man shot with arrow at gentleman's club (KN) The incident occurred around 3:30 a.m. Sunday at The Ball Gentleman’s Club at 3005 Alcoa Highway. Police responded to a E-911 call that someone had been shot, but upon arrival they discovered it wasn’t with a gun. A member of The Ball Gentleman’s Club security personnel appeared to have been shot with an arrow Powell said. Officers conducted an immediate search of the area, but were unable to locate the suspect. The victim was treated on scene.