Opening Bell: 11.3.2016

Wells Fargo raises reserves in midst of SEC probe; Markets still not pricing in Trump; Lynn Tilton does good in court; Michigan dog freed from death row; something something Cubs win; and more.
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Wells Fargo Raises Reserves After Saying SEC Is Probing Its Sales Practice Disclosures (CNBC)

Wells Fargo.Insane

Wells Fargo on Thursday said in a filing that it is raising its reserves and added the Securities and Exchange Commission to the list of federal and state agencies that are investigating its sales practice disclosures. Wells Fargo said the high end of reasonably possible litigation losses is above reserves at $1.7 billion as of Sept. 30, 2016. The bank previously saw only $1 billion in possible litigation losses above reserves.

Wells Fargo’s Stars Thrived While 5000 Workers Got Fired (Bloomberg)

In interviews, more than a dozen past and current Wells Fargo employees -- many of them senior managers -- chronicled how a generation of executives thrived in its ambitious sales culture, winning accolades and promotions, while being held aloft as examples to colleagues. All the while, people under them were opening legions of unwanted accounts for customers. As Wells Fargo grew, some stars fanned out from Southern California, described by colleagues and in congressional testimony as a focal point of the rampant misconduct, spreading a culture that lionized boosting sales.

Probability Of A Trump Victory Remains Underpriced On Markets (FT)

It looks as though the probability of a Trump victory remains underpriced on markets, and could easily swing wildly in the next few days. University of Iowa research shows that we should expect this in any case. It is a property of betting on a binary outcome; as the event approaches, there is less time for a bet to pay off. That means volatility will rise. If anyone betting on Clinton has doubts now, they only have a few days to sell, and doing so will depress the price further. Big swings in prediction markets in the last few days of a campaign are the norm.

Keeping Kosher: It May Be Bad For Your Economic Health (Reuters)

Since most Israelis prefer knowing their food is prepared according to Jewish custom, hotels, restaurants and manufacturers have little choice but to go along with the arrangement - adjusting their kitchens, modifying ingredients, and paying a fee to get a must-have kosher certificate. But new data shows the system is weighing on the economy, draining productivity, pushing up prices and allowing large cash balances to accumulate off the books, angering tax authorities.

Kentucky Plans to Pull At Least $800 Million From Hedge Funds (WSJ)

Kentucky plans to pull more than half of its investments in hedge funds in the coming three years, a significant retreat for a state that had embraced Wall Street money managers following the last financial crisis. The deeply indebted Kentucky Retirement Systems, or KRS, expects to withdraw at least $800 million out of $1.5 billion committed to hedge funds, David Eager, interim executive director, said Wednesday after a meeting of the committee that oversees investments for the state’s pension and insurance funds.

SEC Fraud Case Starting To Tilt In Lynn Tilton’s Favor (NYP)

It was a good day in court Wednesday for Lynn Tilton, as the investor successfully parried with a Securities and Exchange Commission lawyer bent on showing she was less than honest with her clients.

¡Los Cubs Son Campeones! The Final Out Of The World Series, As Called By Announcers Around The Globe (Deadspin)

The Chicago Cubs are World Series champions after a wait of 108 years, and one very tense extra inning. Here’s how the final out of tonight’s Game 7 sounded on TV and radio around the globe, starting up top with Chicago’s flagship radio broadcaster WSCR.

Credit Suisse Profits Beat Expectations In Q3 (FT)

Credit Suisse boosted profits significantly more than expected in the third quarter as Switzerland’s second largest bank pushed ahead with cost cutting and expansion in Asia. Tidjane Thiam, chief executive, said the results “confirm the positive trends that were visible in our second quarter results.”

Nothing Like a Threat of Treason to Make Turkish Banks Cut Rates (Bloomberg)

For months, President Recep Tayyip Erdogan has been leaning on Turkey’s banks to give the economy a boost with easier credit. In August, he warned that failure to comply could amount to “treason.’’ Two weeks ago, Prime Minister Binali Yildirim joined the push, telling lenders, “You either do this on your own or we make you do it.’’ The message now seems to have gotten through. Monday, two of the country’s biggest banks announced they were cutting lending rates. The next day, Yildirim summoned top executives from the industry for a meeting to discuss what more they could do.

Ruff Justice: Michigan Dog Wins Release From Death Row (AP)

A Michigan dog who spent weeks on death row has returned home after DNA tests cleared him in the death of Vlad, a dog next door. Jeb, a Belgian Malinois, was released to his owner Wednesday. Kenneth Job was emotional, saying his dog looks "awful skinny but he's alive."

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Wells Fargo.Insane

Opening Bell: 6.15.17

Wells Fargo doing Wells Fargo again; Phil Falcone is having fun running a profitless Vietnamese Casino; how to kill a rabid raccoon with you bare hands; and more.

Opening Bell: 04.05.13

U.S. Economy Adds Just 88,000 Jobs (WSJ) U.S. employers added jobs at the slowest pace in nine months in March, suggesting weakening economic growth as higher taxes and government spending cuts start to have an impact. Employers added 88,000 jobs last month, the Labor Department said Friday. The unemployment rate, obtained by a separate survey of U.S. households, fell one-tenth of a percentage point to 7.6%, largely because of people dropping out of the work force. Economists surveyed by Dow Jones Newswires expected nonfarm payrolls to rise by 200,000. Obama Budget to Include Cuts to Programs in Hopes of Deal (NYT) In a significant shift in fiscal strategy, Mr. Obama on Wednesday will send a budget plan to Capitol Hill that departs from the usual presidential wish list that Republicans typically declare dead on arrival. Instead it will embody the final compromise offer that he made to Speaker John A. Boehner late last year, before Mr. Boehner abandoned negotiations in opposition to the president’s demand for higher taxes from wealthy individuals and some corporations. Congressional Republicans have dug in against any new tax revenues after higher taxes for the affluent were approved at the start of the year. Big inflows into bonds undercut the "Great Rotation" (Reuters) Big names like Pacific Investment Management Co (PIMCO), DoubleLine, Loomis Sayles and TCW have seen their main bond funds take in an aggregate total of roughly $5 billion during January and February. Vanguard's indexed Total Bond Market portfolios have received over $5.6 billion for the same period, according to the latest data provided by Morningstar. More broadly, while U.S. funds that invest in stocks have gained $78.88 billion in new cash so far this year amid the U.S. stock market's run-up, taxable bond mutual funds have garnered roughly the same - $76.41 billion, according to data from Thomson Reuters' Lipper service. Finding a Rate That’s Fairer Than Libor (NYT) Mr. Gensler would like to develop an alternative and points to two options. One would essentially be dependent on the Federal Reserve’s setting of the federal funds rate — the rate at which it will lend to banks. The other would be based on rates charged on secured loans. In each case these are real markets, at least in dollar-based transactions. He would like to phase in one of them as a replacement for Libor. Autonomy deal debacle takes toll at HP (FT) Hewlett-Packard’s chairman and its longest-serving directors resigned from their positions on Thursday in a delayed reaction to last year’s disastrous $8.8bn writedown relating to the company’s $11bn acquisition of Autonomy. Ray Lane will be succeeded as chairman temporarily by Ralph Whitworth until a permanent replacement is identified. Mr Whitworth, an activist investor who joined the board as an independent director in 2011, is HP’s fifth chairman in a decade. Argentina's Cristina Kirchner 'is an old hag' (Telegraph) Uruguay's President Jose Mujica has been left red-faced after apparently saying his Argentine counterpart Cristina Kirchner was "an old hag" in remarks picked up by an open microphone. ... "This old hag is worse than the cross-eyed man," Mujica was caught saying at the start of a news conference while speaking quietly with another official. El Observador newspaper, which posted the audio on its website, said Mujica was referencing the Kirchners and did not realise that the microphones were already on. Nestor Kirchner died suddenly of a heart attack in 2010 and had a lazy eye. Millionaires Got $80 Million in Jobless Aid in Recession (Bloomberg) The U.S. government paid almost $80 million in unemployment benefits during the worst of the economic downturn to households that made more than $1 million, including a record $29.9 million in 2010, tax records show. Almost 3,200 households -- about 20 percent of them from New York -- that reported adjusted gross income of more than $1 million received jobless-insurance payments averaging $12,600 in 2010, the latest year for which figures are available, according to IRS data compiled by Bloomberg. Those payments outpaced the total incomes for about 25 million U.S. households. Wells Hit on Pace of Mortgage Relief (WSJ) New York's top prosecutor is raising concerns about the pace of relief provided to the state's mortgage borrowers by Wells Fargo WFC -1.38% & Co. under a landmark $25 billion settlement, in the latest sign of dissatisfaction with the foreclosure-related legal remedies agreed to by banks and state and federal officials. "We are concerned that Wells Fargo is underperforming compared to other banks," said Attorney General Eric Schneiderman. "By identifying this pattern early, there is still time to address this issue and increase activity so that Wells's customers will be afforded meaningful assistance to keep their homes." Stephen Friedman to Retire From Goldman Board (DealBook) A onetime leader of Goldman who worked at the firm for nearly 30 years, Mr. Friedman is stepping down on May 22, the day before Goldman’s annual shareholder meeting. He will be replaced by Adebayo O. Ogunlesi, a well-known figure on Wall Street who joined the board last fall. ... Upon stepping down from the helm of Goldman in 1994, Mr. Friedman dismissed rumors that he was in poor health. “Only on Wall Street,” he told The New York Times at the time, “do people think it bizarre that I don’t want to spend half of my day on the telephone and the other half on an airplane.” Historical Echoes: Central Bank and Paper Money Innovator Given Death Sentence for His Efforts (Liberty Street Economics) In 1668, but still: watch out Bernanke. University of Rhode Island campus gunman scare may have been sparked by 'Humans vs. Zombies' game A police probe revealed that there never was a gun or active shooter on the Kingston campus, and that no one was ever in danger. However, Nerf guns were uncovered during a room-by-room search of Chafee Hall, which is where the incident started. The toy guns, which blast out foam balls or darts, are used in a game called “Humans vs. Zombies,” campus police Major Stephen Baker told WPRI. On Thursday, a student group was in the middle of a week-long round of the game, which is an extreme version of tag popular on college campuses across the country.

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

Opening Bell: 9.21.16

Senators vs Wells Fargo; Hedge funds vs SABMiller deal; DOJ vs former Fed staffer; Son of Chinese billionaire buys eight iPhone 7s for his dog; and more.

Opening Bell: 3.3.16

Lynn Tilton sued by ex-employees; DoubleLine closing stock picking fund; Pressure mounts for Tesla short-sellers; Drive-Thru Sex Lands Couple Behind Bars; and more.

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.

(Getty Images)

Opening Bell: 5.26.17

Steve Schwarzman, Jared Kushner and Mohammed bin Salman walk into a bar; Wells Fargo smells blood in the water; Texas 7th grader wins ‘Most Likely To Become A Terrorist’; and more.

KalanickUberTotalRecall

Opening Bell 8.11.17

Uber board now trying to sue Travis Kalanick away; Wells Fargo board finally reshuffling; Venezuelan bonds are hot potatoes; Dan Loeb says something unfortunate; Fat monkey turns his life around; And more!