Opening Bell: 9.9.16

Gundlach Says It’s Time to Get Defensive as Rates May Rise (Bloomberg)
“This is a big, big moment,” Gundlach said during a webcast Thursday. “Interest rates have bottomed. They may not rise in the near term as I’ve talked about for years. But I think it’s the beginning of something and you’re supposed to be defensive.”

Ex-AIG Chairman Greenberg Looks for Vindication in N.Y. Battle (Bloomberg)
Greenberg scrapped with regulators and the Internal Revenue Service and beat the federal government in what some called a no-chance suit. Now, he’s set to march into state court in Manhattan to defend an 11-year-old lawsuit accusing him of using sham transactions at AIG to hide the company’s financial troubles from shareholders. Opening statements are scheduled for Tuesday.

Fed Urges U.S. Ban on Wall Street Buying Stakes in Companies (Bloomberg)
Among several recommendations issued by U.S. banking regulators, one from the Fed urged Congress to prohibit merchant banking, in which firms buy stakes in companies rather than lend them money. In a report released Thursday, the agency also pushed for limits on Wall Street’s ownership of physical commodities after lawmakers accused Goldman Sachs and other banks of seizing unfair advantages in metal and energy markets in recent years.

Investors prefer computer-run hedge funds to traders: study (NYP)
Nearly 80 percent of investors surveyed by Preqin said performance of hedge funds has not lived up to expectations over the last 12 months. Sentiment was the worst among investors in activist-driven funds as 100 percent of respondents said their fund’s performance fell short of expectations. There was one bright spot in Preqin’s findings: 92 percent of investors in so-called “systematic CTAs,” which largely use computer-driven models to trade commodities and currencies, said their fund’s performance met expectations.

Amtrak Asks If Woman Stuck In Elevator Is Still There 7 Months Later (HP)
Conservative political commentator Amanda Carpenter tweeted in February that she was stuck in an “Amtrak elevator” at Baltimore-Washington International Airport. Seven months later, on Sept. 7, Amtrak inquired about Carpenter’s status. “Are you still in the elevator?” some concerned employee asked via Amtrak’s Twitter account. Thankfully, she was not...Amtrak indicated this week’s error came about because someone had recently retweeted Carpenter’s February message. The company copped to its mistake, admitting it was “not our finest hour,” and offered Carpenter an Acela ride free of charge.

NYSE to implement new volatility procedures Monday (Reuters)
The New York Stock Exchange will implement changes Monday to its opening procedures as it seeks to speed up trading and make it more efficient even on volatile days. The new procedures would eliminate "Rule 48," which allows market makers to delay opening a stock when markets are volatile.

Deutsche Bank nearing mortgages settlement with U.S. authorities: sources (Reuters)
German monthly manager magazine earlier reported that Deutsche Bank is expected to receive a demand for more than $2.4 billion from U.S. authorities in settlement of an investigation into past mis-selling of mortgage-backed securities.

Chipotle settles sick customers' claims, avoiding court battles (Reuters)
Chipotle Mexican Grill (CMG.N) has agreed to financial settlements with more than 100 customers who fell ill after eating at its restaurants last year, lawyers for the consumers said, as it attempts to move on from a string of food-safety problems. The burrito chain's strategy of resolving claims out of court, which has not previously been reported, shows it wants to avoid drawn-out public battles over foodborne illnesses that battered the company's stock price and reputation.

Judge cracks food jokes during Chipotle exec’s court appearance (NYP)
A Manhattan judge mocked a top Chipotle executive indicted in a cocaine ring by cracking food jokes during the suspect’s brief court appearance Thursday. Mark Crumpacker, 53, who was leading the Mexican fast-food chain’s efforts to get back on its feet following an e. coli outbreak, sat in Manhattan Supreme Court looking melancholic as Judge Edward McLaughlin cracked jokes at his expense. “I want to put the stupid puns aside, though I realize you may want some food for thought here,” McLaughlin said. In response to Crumpacker’s lawyers’ later request for an Oct. 18 adjournment date, McLaughlin added, “If you want six weeks to chew on this that’s fine.”