Opening Bell: 5.2.17
(Getty Images for Yahoo Finance)
When Barclays’s Jes Staley Went to Bat for an In-Law, a Powerful Client Cried Foul (WSJ)
Mr. Staley’s view, according to people familiar with it, is that KKR improperly pressured the CEO and is trying to turn a personal situation for the executive into a business matter for the bank. Mr. Staley has told multiple people that he wasn’t acting in his capacity as Barclays’s CEO when he interceded for his brother-in-law, and that his actions in the dispute were what anyone would do to defend a family member.
JPMorgan's Dimon says biggest fear is bad public policy (BBG)
Dimon shrugged off any aspirations for running for office when asked. He said it was too late for him to live as a civil servant and that he does not want to be a mayor, a senator or governor. "You've got to start early. President Obama wrote two books about himself before he did anything," Dimon said - a line that prompted laughter and applause from the hundreds of business leaders, financiers and government officials packed into the Beverly Hills Hilton ballroom.
Goldman Sachs Embraces Banking’s Bland Side: Lending Money (WSJ)
The firm has been opening its checkbook for the past several years to finance corporate takeovers, lend against mansions and art, and make personal loans for things such as kitchen remodels and fixing broken windshields. It is exploring new credit businesses such as trade finance, equipment leasing and extending credit that consumers use for online purchases, according to people familiar with the discussions.
GMO’s Grantham on what’s driving abnormal profit margins (FT Alphaville)
Interestingly, Grantham links the increase in corporate power over the last 40 years to a somewhat counterintuitive factor: The increasingly weighty regulatory environment which counterintuitively ends up benefitting the larger and more politically savvy corporations. These large corporations, he says, can use their incumbent clout and income streams to navigate and manage the regulatory burden. Smaller companies can’t, hence there’s been a steady drop of net new entrants into the US business world since 1970.
The Michael Milken Project (Institutional Investor)
Someone who met Milken later in life and spent hours with him describes his “burning eyes” and says he was “manipulative to the core” and only seemed truly happy when he believed he had won her over to his way of thinking about things. “Mike Milken was kind of like Jim Jones [of Jonestown massacre infamy] with a billion dollars, a PR man, and a fancy office,” she says.
Citadel's Griffin Urges Breakup of Big Banks, Echoing Trump (BBG)
“Would I argue to break these banks into many, many small banks? No,” Griffin said in an interview Monday with Bloomberg TV. “But should we think about separating the investment banks from the commercial banks, a new Glass-Steagall? I would be really excited to see that. I think it would be great for the economy."”
Mnuchin to Wall Street: U.S. Is Serious About Ultra-Long Bonds (BBG)
David Mericle, an economist at Goldman Sachs, said in a report last week that he doesn’t expect the Treasury to sell ultra-long term debt partly because it’s “likely to again receive skeptical feedback from dealers.” Nomura also said the Treasury needs to do a “deep and comprehensive analysis” before trying such sales because it isn’t clear whether the benefits would outweigh the costs. Morgan Stanley warned in an April 21 report that “investor demand for ultra-long issuance will not be robust enough.”
China’s banking watchdog vows to sort out ‘chaos’ (FT)
“If the banking industry becomes a complete mess, as the chairman of the China Banking Regulatory Commission, I will resign!”
What senior bankers say, and what senior bankers mean (EFC)
When you wear your best tie for the client meeting
What they say: “That’s a great Hermes tie Jim, great choice.”
What they mean: Looks like we are overpaying you, Jim.
Russian artist busted in nude Met Gala stunt after firefighters pry him from clear box (NY Daily News)
Cops quickly descended on the bizarre stunt and demanded the lanky 6-foot-2 performer step out of the box. Pavlov allegedly refused and firefighters were forced to cut open the see-through prop, said Sgt. Brendan Ryan. Once freed, police escorted Pavlov away from the celebrity hot spot, where some stars similarly brandished their most sheer gowns.
