Opening Bell: 7.28.16

U.S. says fund lawyer holds 1MDB clues; Fed looks to December; Sword pulled in pizza roll dispute; and more.
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Fund Lawyer Who Worked With Goldman Holds 1MDB Clues, U.S. Says (Bloomberg)
She was the general counsel for Malaysia’s 1MDB investment fund. She was also 1MDB’s liaison to Goldman Sachs Group Inc., the global bank that helped it raise $6 billion. After one of the big sales led by Goldman Sachs, $5 million of the cash raised for 1MDB traveled through shell companies and ended up in her Swiss bank account, the U.S. said in complaints filed last week. The U.S. government refers to the official only as “1MDB Officer 3.” According to people familiar with the matter, she is Jasmine Loo Ai Swan -- a Malaysian who studied law in the U.K. and worked for a Malaysian developer and an oil firm before joining 1MDB...While the amount is modest compared with others in the sweeping multiyear scheme, the alleged $5 million transfer is notable. The recipient was not only a lawyer and the fund’s point person with Goldman Sachs, but is also the only person at 1MDB whom the Justice Department singled out as having received a payment. That money transfer, the U.S. government says, was one of dozens of illicit payments in a scheme controlled by a Malaysian man that ultimately drained as much as $3.5 billion from the fund, formally known as 1Malaysia Development Berhad.

Fed leaves markets guessing on rate hike timing, but December looks possible (CNBC)
"They upgraded the economy a little bit, which they should have because the data is better. They maintain that they're monitoring global economic and financial conditions. They didn't hint at September at all. I think that gets everyone focused on Jackson Hole to see what's next," said John Canally, market strategist and economist at LPL Financial. The Fed's annual symposium in Jackson Hole, Wyoming, on Aug. 26 is seen as the next chance for it to deliver a message about policy. The central bank's chair, Janet Yellen, is scheduled to speak and Fed chairs have been known to make important policy comments at that gathering of U.S. and international bankers.

Capitalism can’t thrive on near-zero rates, Bill Gross says (CNBC)
Near-zero interest rates aren't good for the economy in the long run, bond guru Bill Gross said Wednesday. That's because low rates hinder the ability of savers to earn a return on their money, and that impedes investment, he said. "Capitalism can't really thrive," the manager of the Janus Global Unconstrained Bond Fund said in an interview with CNBC's "Power Lunch." "Ultimately in terms of real economic growth, an economy needs certainly a positive interest rate and maybe even a close to positive real interest rate in order to function normally," he said.

George Soros returns to politics with $25 million splash: Report (CNBC)
Billionaire investor George Soros has re-emerged this election cycle as a major Democratic donor, committing more than $25 million to Hillary Clinton and other party candidates and causes, according to Politico. Soros spent roughly $27 million in a bid to unseat then-President George W. Bush in 2004 but later scaled back his giving, the website reported. Some associates of the Soros Fund Management chairman told Politico they expect him to give even more as Election Day approaches.

Prosecutors: $3 million lottery winner bought, sold meth (AP)
Court records show that Ronnie Music of Waycross pleaded guilty on July 22 to charges of conspiracy to distribute methamphetamine and being a felon in possession of firearms. Federal prosecutors said Tuesday that Music, who won $3 million in the Georgia lottery, used the money to buy methamphetamine to sell. Prosecutors say the case began when several people were caught trying to sell 11 pounds of methamphetamine worth $500,000. U.S. Attorney Ed Tarver said in a statement that Music tried to test his luck by using lottery winnings to deal drugs and now faces decades in prison because of his "unsound investment strategy."

Europe Decides Against Fines for Spain and Portugal (Dealbook)
European Union officials, facing the rise of populist movements across the region, opted against hitting Spain and Portugal with sanctions on Wednesday for breaking the bloc’s rules on government spending. The refusal to impose fines highlights how the 28-nation bloc is struggling with divergent strains of populist and anti-European forces across a region where one member state, Britain, has already voted to leave. The failure to issue penalties will also raise new questions about whether the European Commission, the executive arm of the European Union, has the political will to enforce its own rules. Many economists have called on Brussels to ease the fiscal straitjacket, whereby countries face punishment if they run budget deficits beyond 3 percent of gross domestic product, to stimulate spending and to accelerate anemic economic growth across the region.

Post-Brexit, London’s Financial Center Has English Law on Its Side (WSJ)
Britain’s vote to leave the European Union has sparked fears in the U.K. that competing financial centers, such as Frankfurt and Dublin, could siphon banks, funds and related industries away from London. The majority of international financial contracts, however, are written in English law and disputes are often settled in the country’s courts. This provides London’s financial district with a gravitational pull for financial companies. “The contracts will still be done under English law in an English court,” said Kamel Alzarka, chief executive of Falcon Group, a Dubai-based trade-finance company with a large presence in London. “I’m French. Who the hell’s gonna use French law for this?”

Facebook revenue jumps on blistering ad sales growth (Reuters)
Facebook Inc's (FB.O) quarterly revenue jumped 59.2 percent as its hugely popular mobile app attracted new advertisers and encouraged existing ones to spend more. The net income attributable to Facebook's stockholders rose to $2.05 billion, or 71 cents per share, in the second quarter ended June 30, from $715 million, or 25 cents per share, a year earlier. Revenue rose to $6.44 billion from $4.04 billion.

Cops: Sword Pulled In Pizza Roll Dispute (TSG)
According to a Norwalk Police Department report, Travis Vartorella “pulled a sword” on Trystan Mesenburg, 20, a former roommate who had returned to the residence to retrieve some of his belongings. Mesenburg told cops that after arriving at the darkened apartment with his girlfriend, they began gathering up his items. “As soon as I grabbed my bag of pizza rolls,” Mesenburg told cops, Vartorella “came out from around the corner” with a three-foot sword. With the weapon in his hands, Vartorella claimed ownership of the frozen treats and demanded that Mesenburg “leave his fucking pizza rolls alone” before things got stabby, police report. Mesenburg and his girlfriend fled the apartment and dialed 911. Responding officers noted that the couple was “visibly shaken” as they recounted their confrontation with Vartorella. Officers subsequently arrested Vartorella and seized four “edged weapons” from his bedroom closet, including a six-foot samurai sword, a machete, and the sword he was holding when he confronted Mesenburg.

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Opening Bell: 9.13.16

Wells Fargo CEO will face senate panel; Fed probably going to hold steady; Hank Greenberg gets his day in court; Catfish Falls From The Sky, Hits Woman In The Face; and more.

Opening Bell: 03.14.13

US Probes Gold Pricing (WSJ) The Commodity Futures Trading Commission is examining the setting of prices in London, in which a handful of banks meet twice daily and set the spot price for a troy ounce of physical gold, the people said. The CFTC is looking at issues including whether the setting of prices for gold—and the smaller silver market—is transparent. No formal investigation has been opened, the people said. US And UK Tussle Over Trader (WSJ) Officials in the U.S. Justice Department and the U.K. Serious Fraud Office clashed late last year in their mutual pursuit of Tom Hayes, the former UBS trader who is viewed by prosecutors in both countries as a ringleader of banks' attempts to rig the London interbank offered rate, or Libor, these people said. While jurisdictional disputes among law enforcement agencies aren't unusual, some U.S. officials worry that the friction on this case will jeopardize trans-Atlantic cooperation on future financial-fraud investigations. The spat revolves around a sequence of events that played out in rapid succession last December. The trouble began, the people said, when the U.K. government unexpectedly blocked a Justice Department request to interview Mr. Hayes, who is British and lives outside London. Then, without notifying the U.S., British fraud prosecutors on Dec. 11 arrested Mr. Hayes and two others in connection with their own probe—infuriating American officials, according to people familiar with the U.S. investigation. The U.S. prosecutors punched back the next day by filing sealed criminal fraud charges against Mr. Hayes. Banks Bow To New York On Clawbacks (WSJ) Three more top banks, including Citigroup, will broaden their clawback policies to cover more executives, increase disclosures or add potential triggers. The moves increase to six the number of leading financial companies that have bowed to pressure from the New York City's Comptroller's Office. Lehman Judge Allows 'London Whale' Subpoena in JP Morgan Fight (Dow Jones) A judge on Wednesday said Lehman Brothers Holdings Inc. creditors can subpoena Bruno Iksil in its lawsuit against J.P. Morgan, ensuring the phrase "London Whale" will stay in the lexicon for at least a bit longer. Judge James Peck of U.S. Bankruptcy Court in Manhattan said Mr. Iksil, who is in France, can be questioned over the alleged mismarking of $273.3 million in derivatives when he worked at J.P. Morgan in the days leading up to Lehman's bankruptcy. "I consider it inappropriate except for in a clear case of abuse to cut off discovery of a witness that has fingerprints all over a transaction," Judge Peck said. "And in this case, Mr. Iksil's fingerprints are on the $273.3 million transaction that took on some significance in the case." Lehman U.K. Wins $1 Billion Appeal on Hedging Contracts (Bloomberg) The ruling may result in London-based Lehman Brothers International Europe and its administrators PricewaterhouseCoopers LLP receiving an extra $1 billion, according to a written decision handed down this morning by Judge Mary Arden in the U.K. Court of Appeals. Jobless Claims Unexpectedly Fall as Labor Market Improves (Bloomberg) First-time jobless claims fell by 10,000 to 332,000 in the week ended March 9, the fewest since mid January, according to data today from the Labor Department in Washington. The median forecast of 49 economists surveyed by Bloomberg called for an increase to 350,000. The four-week average declined to a five- year low. JPMorgan exec sued over 'bullying' behavior (NYP) Plaintiff Walter Suarez, a former financial adviser, was banished to the company’s Delancey Street outpost when he complained about colleague Michael Quach, and the move cost Suarez an $80 million client list, $20 million of which was taken by JPMorgan, his lawyers claim. According to Suarez, Quach was a bully who resorted to physical violence to intimidate colleagues. Suarez, who is Hispanic, says Quach, an Asian-American, got away with the behavior because bosses preferred Asian employees. “Eventually, it got to the point of being ridiculous. This isn’t the corner bodega,” Suarez told The Post. “We’re investment people. This is a professional setting. That’s when I spoke up. “He just wasn’t a very professional person from the get-go, and I don’t think that I was the only person who felt that way.” Suarez told superiors that Quach had manhandled several staffers, including one woman who was “physically assaulted during working hours on the banking floor,” according to the lawsuit filed in Manhattan Supreme Court by attorneys Matthew Blit and Amanda Gudis. Suarez said Quach even threatened to punch him out in front of clients. 'Canada's Warren Buffett' Interested in Greece's Top Bank (Reuters) Greece's biggest lender, National Bank (NBG), said on Wednesday that Canadian investment fund Fairfax Holdings was interested in acquiring a stake in it by taking part in a planned recapitalization. Under the terms of cash-strapped Greece's international bailout, its top four lenders must issue new shares by the end of April to replenish their capital after the losses they suffered in the debt crisis from bad loans and bond writedowns. The European Union and the International Monetary Fund have set aside 27.5 billion euros ($37 billion) in bailout funds to invest in the new bank shares. But private investors must buy at least 10 percent of them or the lenders will be nationalized. NBG said in a bourse filing that Fairfax was among other investors who had expressed an interest, without giving details. Fairfax is controlled by investment guru Prem Watsa, known as the "Warren Buffett of Canada." SandRidge Gives In, Settling Proxy Fight (WSJ) SandRidge Energy agreed to fire its chief executive or give control of its board to an activist shareholder, settling a closely watched proxy battle amid an outbreak of investor unrest in the oil patch. SandRidge, an oil-and-gas producer with a stock-market value of about $3 billion, immediately appointed four directors to its board who were nominated by hedge fund TPG-Axon Capital LP, which owns 7.3% of its shares. Bofa Battles Credit Suisse for 50% Markups on State Loans (Bloomberg) The firms are among at least five lenders in talks to loan five states at least $6.5 billion this year -- more than double last year’s total -- as local governments seek to chop debt costs by replacing loans from a 1997 federal bailout that average 14.4 percent in reais. Credit Suisse is lending Mato Grosso, an agricultural state in western Brazil, $1 billion for 15 years. The loan, with a rate equal to 11.2 percent in reais and guaranteed by Brazil if Mato Grosso defaults, compares with 7.35 percent for yields of similar-maturity government debt. Private Equity Could Trigger Another Crisis: Bank of England (CNBC) The amount of leverage in the U.K. corporate sector poses a risk to the stability of the financial system and could produce the next big financial crisis over the coming years, the U.K.'s central bank has warned. White Rock woman holds 'Lying Cheating Sale' to sell all her husband's stuff while he's 'gone with his floozie' (The Province) A scorned White Rock woman held a yard sale on the weekend to get rid of her husband's stuff while he was "gone with his floozie," according to a Craigslist ad. "Husband left us for a piece of trash, selling everything while he is gone this weekend with his floozie," read the text of the ad, which was posted early Friday afternoon to the free classifieds site. The Province dropped by the yard sale on Saturday and, sure enough, bargain-hunters were sifting through the goods which included office chairs, camping gear and other offerings. The lady in charge of the sale declined to speak on the record. Her colourful Craigslist ad, however, said she was selling everything and moving after 10 years of marriage. The featured items included his favourite red leather reclining theatre-seating sofas, and "lots of tools which he didn't have a clue how to use." "I want the house empty on Monday when he returns because that will be a shock for him to see. So come pick out what you would like Saturday and Sunday at 8 a.m. "Don't come too early (like he did) because I will be thoroughly enjoying some wine with my girlfriends this evening as we clean out all this stuff and likely be nursing hangovers in the morning. So please speak softly to the ladies wearing the sunglasses." The ad discouraged clothes-buyers, "as we will have already burned those in the driveway," but it did offer to let visitors see the pile of ashes.

Opening Bell: 12.11.12

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

Opening Bell: 12.12.12

Three Questioned In Libor Probe (WSJ) While the SFO didn't identify the men, one of them is Thomas Hayes, a former trader at UBS and Citigroup, according to people familiar with the matter. Authorities in multiple countries have been looking into Mr. Hayes as an alleged coordinator of a group of employees at multiple banks who sought to manipulate the London interbank offered rate, or Libor, according to people familiar with the case. One of the others arrested was Terry Farr, an employee of British brokerage firm R.P. Martin Holdings Ltd. in London who is currently on leave from the firm, according to a person familiar with the case. Mr. Farr has been under investigation for possibly helping bank employees coordinate their efforts to influence Libor, according to people familiar with the case. HSBC Mexican Branches Said to Be Traffickers’ Favorites (Bloomberg) From 2006 to 2010, the Sinaloa cartel in Mexico and the Norte del Valle Cartel in Columbia moved more than $881 million in proceeds through HSBC’s U.S. unit, said Lanny Breuer, assistant attorney general for the U.S. Justice Department’s criminal division. Breuer, along with U.S. Attorney Lorretta Lynch in Brooklyn, New York, announced yesterday the bank had agreed to pay at least $1.9 billion to settle money laundering probes. “These traffickers didn’t have to try very hard,” Breuer said at a press conference in Brooklyn. “They would sometimes deposit hundreds of thousands of dollars in cash in a single day into a single account using boxes designed to fit the precise dimension of the tellers’ windows in HSBC’s Mexico branches.” It Could Get Hairy Before 'Cliff' Deal: Greenspan (CNBC) "The best possible outcome is to take something like Simpson-Bowles as it came out originally and work off that," he said, of a deal to avoid the automatic tax hikes and spending cuts that go into effect at the end of the year. But he said that reaching a final agreement won't be an easy process, since the president believes he has a mandate following the election while House Republicans believe they, too, have a mandate. "I'm not at altogether clear how much control (Speaker) Boehner has over the overall caucus," Greenspan said. "At the end of the day it will all work out but it's going to be a bit hairy before we get there." Buffett Joins Soros in Effort to Raise Taxes on Estates (Bloomberg) Billionaireinvestors Warren Buffett and George Soros are calling on Congress to increase the estate tax as lawmakers near a decision on tax policies that expire Dec. 31. In a joint statement Tuesday, Buffett, Soros and more than 20 other wealthy individuals asked Congress to lower the estate tax’s per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45 percent from 35 percent. An estate tax structured this way will “raise significant revenue to reduce the deficit and fund vital services, will only be paid by the top one percent of estates, will raise more from the wealthiest estates” and will simplify compliance, said the statement. It also was signed by John Bogle, founder of mutual fund company Vanguard Group Inc., and former President Jimmy Carter. U.S. Probe of SAC Trading Said to Be Linked to 2010 Case (Bloomberg) A U.S. investigation of possible insider trading at SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen, is linked to a 2010 regulatory lawsuit over allegedly illegal trades in InterMune Inc, according to a person with knowledge of the matter. The Federal Bureau of Investigation and the Securities and Exchange Commission’s probe of trades that SAC Capital made in the Brisbane, California-based biopharmaceutical company is tied to a December 2010 SEC lawsuit against an investor, said the person, who asked not to be named because the matter isn’t public. The investor bought InterMune options before a European Union regulatory panel urged approval of the company’s drug Esbriet to treat a fatal lung disease, the person said, declining to elaborate. Man says law standing between him and sex acts with donkey is unconstitutional (NYDN) Lawyers representing the frisky farmhand thrown in jail for allegedly masturbating with a donkey are now fighting to have Florida’s statute banning sex with animals declared unconstitutional. “By making sexual conduct with an animal a crime, the statute demeans individuals like Defendant by making his private sexual conduct a crime,” attorneys for 32-year-old Carlos R. Romero wrote in a motion filed last week, the Ocala-Star Banner reported. Romero was cuffed at an Ocala farm back in September after farm proprietor Gerald James told police he saw Romero with his pants down as he was seemingly having sex with a donkey named Doodle in an equipment room on Aug. 15, according to police report obtained by thesmokinggun.com. Romero later pleaded not guilty to a first-degree misdemeanor charge of sexual activities involving animals. He announced last week that he wanted his case to go to trial. His attorneys argue that Florida’s statute violates the farmhand’s rights by stripping him of his “personal liberty and autonomy when it comes to private intimate activities.”They say the statute is unconstitutional because it doesn’t require the state to provide any proof of the animal’s suffering “or any proof of the sexual activity being non-consensual.” Inside The Risky Bets Of Central Banks (WSJ) While many national governments, including the U.S., have failed to agree on fiscal policy—how best to balance tax revenues with spending during slow growth—the central bankers have forged their own path, independent of voters and politicians, bound by frequent conversations and relationships stretching back to university days. If the central bankers are correct, they will help the world economy avoid prolonged stagnation and a repeat of central banking mistakes in the 1930s. If they are wrong, they could kindle inflation or sow the seeds of another financial crisis. Failure also could lead to new restrictions on the power and independence of central banks, tools deemed crucial in such emergencies as the 2008-2009 financial crisis. Freeport's $20 Billion Deal Stirs Backlash (WSJ) Freeport agreed last week to acquire energy explorers McMoRan Exploration Co. MMR +0.85% and Plains Exploration & Production Co. PXP -0.42% in transactions that will cost the Arizona mining giant about $20 billion including assumed debt. The deal will result in six directors with overlapping roles at Freeport and McMoRan Exploration receiving payouts for their shares totaling more than $130 million, according to securities filings. Some Freeport investors and analysts also have questioned the wisdom of a metals miner diving into the oil and gas business. They have taken issue with what they call conflicts of interests among the shared executives and directors at Freeport and McMoRan and the fact that the deal as structured doesn't require a Freeport shareholder vote. Fed Discourages Bank Dealmaking (WSJ) The Federal Reserve is pushing large U.S. banks to forget about all but the smallest acquisitions for a while amid a raging debate over the risk big lenders pose to the financial system. Man Drive 100 MPH To Wedding, Gets Arrested (Again) (NWI) Timothy N. Thompson, 23, of Valparaiso, was supposed to be married in a 7 p.m. ceremony. Instead, Thompson was arrested for resisting law enforcement, criminal recklessness and reckless driving. He was also cited for speeding and improper passing. According to police, an officer spotted Thompson about 6:30 p.m. Saturday speeding north in the center lane of Willowcreek Road. The officer estimated Thompson was driving 100 mph. Thompson allegedly continued to drive erratically, switching lanes abruptly and, according to the report, nearly wrecking. Police reported they followed Thompson as he turned into the parking lot of Nativity of Our Savior Church on Willowcreek Road, where he again nearly tipped over the Jeep Grand Cherokee. Once he entered the church's parking lot, three people -- later identified as relatives -- began flailing their arms and yelling at him. Thompson drove through the parking lot, accelerating and doing a "doughnut," creating a thick blanket of tire smoke, according to the report. When he stopped, Thompson told police he was late for his wedding and estimated he was doing "about 90" mph. He also told police he had his emergency flashers on and was sounding his horn to alert drivers. When an officer walked away from Thompson's vehicle, Thompson reentered his vehicle and drove toward the entrance of the church, where he was stopped by police again. "Oh, I thought you were done and I'm late for a party in Chicago," police reported Thompson saying. "It now means I have to drive really fast to get there." Thompson, who also told police he had just been released from jail that day, didn't make his wedding. He was transported to Porter County Jail and held without bond.

By Sachyn Mital (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 6.15.16

Caspersen's lawyer says fraud was fueled by gambling addiction; Fed expected to hold steady; Billionaire gets approval to build NYC mega-mansion; Sean Penn was going to name his son Steak; and more.

Photo: Getty Images

Opening Bell: 9.22.16

Yellen signals 2016 hike coming; Bill Gross is 'verklempt' after Fed decision; Australian hot dog and hamburger combination 'hamdog' coming to U.S.; and more.

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: 08.31.12

JPMorgan Rankled By Risk (WSJ) JPMorgan is seeking to reduce its risks in a business that provides crucial plumbing for Wall Street's money flows. The nation's largest bank by assets, a major player in providing clearing and settlement services to other financial firms, is reviewing its dealings with dozens of brokerages that use the bank to settle trades, according to people familiar with the bank. Clearing and settlement involves standing between buyers and sellers of securities to help manage financial commitments backing hundreds of billions of dollars in transactions daily. J.P. Morgan's review, which started more than six months ago amid increased regulations, effectively seeks to assess the profits clients generate for the bank versus risks they pose, the people say. Spain Unveils Financial Reforms (WSJ) This reform fulfills the commitments made by Spain as part of a €100 billion European Union bailout for Spanish banks agreed in July. As anticipated in the bailout deal, Spain is creating an asset management company, or "bad bank," that will buy property assets from banks starting later this year at prices below book value. Euro Faces Judgment Days (WSJ) The euro zone has seen many pivotal moments since its debt crisis emerged in Greece in early 2010. But there are reasons to think this fall's events are especially vital. With Spain and Greece on the ropes, European officials face stark choices. Nomura Plans $1 Billion In Cost Cuts (WSJ) The cost cuts were unveiled Friday by Nomura's new chief executive, Koji Nagai, when he presented the blueprint for a revamped business strategy at a meeting of 450 senior branch managers, according to Nomura executives who briefed reporters on what was said. They follow another $1 billion in wholesale cost reductions the broker just finished implementing earlier this year. Shia LaBeouf 'Sent Director Sex Tapes To Get New Film Role' (Entertainment) When Shia LaBeouf took a role in Lars von Trier's latest movie 'Nymphomaniac' eyebrows were raised due to the director's previous experimentation with putting real sex on film. Until now it seemed that LaBeouf took an occupational risk in joining the movie, but if the actor's to be believed then he actively looked out for a sexed up role, and involved girlfriend Karolyn Pho...The 'Lawless' actor told Handler: "I sent him [von Trier] videotapes of me and my girlfriend having sex and that's how I got the job." French Minister: No Contradiction in 75% Tax Rate and Attracting Business (CNBC) Responding to claims that the introduction of higher tax rate could be an obstacle to business and investment in France, Moscovici echoed the French President and Prime Minister who have said that the tax was part of a “shared effort” to lead France back to positive growth. ECB Said To Use Greek Myth For Security On New Euro Banknotes (Bloomberg) The European Central Bank is using an image from Greek mythology to improve security on new euro banknotes, four people familiar with the design said, even as Greece’s near bankruptcy fuels a debt crisis that’s threatening the future of the common currency. Europa, the Phoenician princess abducted by Zeus who gave the continent its name, will replace architectural images as the watermark on the new notes, which the ECB wants to start rolling out next year, said the people, who spoke on condition of anonymity because the plans aren’t public yet. Barclays Marathon Man CEO Everything Bob Diamond Was Not (Bloomberg) “In Jenkins you’ve got the archetypal English CEO who is seen as rather safe, compared with the typically aggressive U.S. investment banker that was Bob Diamond,” said Alan Beaney, who helps manage 200 million pounds ($315 million), including Barclays shares, at RC Brown Investment Management Plc in Bristol, England. “His appointment signals that the bank is not going to be as brazen as it has been in the past.” Garlic knot beating in Vero Beach sends man with 'Fat Boy' tattoo to slammer, report shows (TCP) A man on Aug. 19 told Indian River County Sheriff's deputies he was a pizza delivery person and was taking pizza to an address in the 400 block of 9th Street Southwest in Vero Beach. The pizza deliverer said when he got there, Robert Wheeler, 48, was waiting for him outside. The pizza deliverer said that when he lowered his window, Wheeler asked him who he spoke with on the phone before punching him in the face. The pizza deliverer said Wheeler punched him "because he forgot the garlic knots." Wheeler then instructed him to "give that to the person working on the phone back at the restaurant." Wheeler, who has the word "fat" tattooed on his left arm and "boy" on his right, told investigators he hit the pizza delivery person in the face. But, he said the issue was money he said the restaurant owed him -- not forgotten garlic knots.