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Opening Bell: 10.17.17

RBR wants to take the First Boston out of Credit Suisse; Europe doesn't want your tired, your hungry, your bankers; how a real football fan respects the flag; and more.
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Credit Suisse targeted for break-up by activist hedge fund (FT)
According to people briefed on Mr Bohli’s plan, he will argue for a three-way split of Credit Suisse into a Wall Street investment bank that revives the old First Boston brand; an asset manager; and a wealth management group that also encompasses Credit Suisse’s retail and business banking operations. RBR will attack the “dis-synergies” in the bank’s conglomerate structure and suggest the split could double the group’s current SFr40bn ($40.9bn) valuation, according to a copy of the plan seen by the Financial Times. SEE ALSO: Credit Suisse's Biggest Shareholder Dismisses Activist's Plan

Frankfurt Doesn’t Want London’s Bankers (Businessweek)
“Brexit will be very bad for people with a normal income,” says Hintz, an owner of the 37-year-old Karl Marx bookshop, echoing local activists seeking to protect what they say is a cozy, comfortable city with little need for the cash and glitz that legions of wealthy newcomers might bring. “It may be good for the city’s international competitiveness,” Hintz, 61, says from behind his impressively Marxian beard. “But what we need is affordable housing. And the population has no voice in this.”

A Shunned Industry Makes a Comeback in Ireland—Banking (WSJ)
John Cronin, a partner at Irish law firm McCann Fitzgerald, says there was an initial feeling among some finance companies that the central bank wasn’t as welcoming to their business. At meetings, if “the good biscuits aren’t put out, some people may feel they aren’t getting the right reception,” he says.

Why, Oh Why, Can’t We Have a Decent Stock Bubble? (WSJ)
After an eight-year bull market and the cheapest borrowing costs in history, the big surprise isn’t that the stock market’s high, but that it isn’t higher still. Where’s the irrational exuberance? Why are taxi—-well, Uber—-drivers still talking about politics and sports, when they should be offering stock tips and thinking about packing it all in and day trading? The simple answer is that after the dot-com bubble of 2000 and the housing and credit bubble of 2007, it’s hard to tempt the wider public into believing in market magic.

The Money-Losing Volatility Trade That Hedge Funds Can't Resist (BBG)
Brevan Howard Asset Management, 36 South Capital Advisors, One River Asset Management and at least three other firms are rolling out new funds designed to protect investors from rising market turbulence. While so-called long volatility strategies have been some of this year’s worst performers, everyone from Nobel laureate Richard Thaler to Larry Fink has warned that the unusual state of calm in markets may not last. “This is a multi-decade opportunity to buy volatility,” said Richard “Jerry” Haworth, who co-founded 36 South in 2001 and more than tripled investors’ money in the firm’s Black Swan Fund during the crisis.

Authoritarian Cryptocurrencies Are Coming (BBG)
The Russian and Chinese ideas are distinct from these projects. They are openly about central control rather than libertarian anarchy. The distributed ledger technology provides a tool that's fit for their purposes, too -- just like nuclear energy can be used to power a city or to blow it up.

Can We have an ETF Meltdown? (Rick Bookstaber)
Suppose there is a sudden rush for the exits in the high yield bond market. Those in the cash bonds know the drill. They will put in orders with the bank/dealer market makers. For a while those high yield bond trading desks will buy the bonds and hold them in inventory. But it won't take long for the trading desks to reach their capacity. After that point, they won't be buyers. They will act as agent -- also knows as riskless principal -- and look for someone on the other side of the trade. In the meantime the seller has to bide its time. The point is that on the cash bond side, it is not an intraday sort of a transaction. It can take days to find the other side for the trade. And anyone who is active in the high yield bond market knows that, so they structure their leverage and liquidity accordingly.

Daphne Caruana Galizia: Top investigative reporter killed by car bomb in Malta (Independent)
Galizia is believed to have just published the last post on her widely read blog, Running Commentary, just before leaving her house outside the capital Valletta. "There are crooks everywhere you look now,” she had written, “the situation is desperate." Soon after driving away in her Peugeot 108, Galizia’s vehicle exploded with such force it was sent flying over a wall and into a field.

Jets Fan Who Stands For National Anthem Sits On American Flag (Deadspin)
This man at Sunday’s Patriots-Jets game respects the United States and its national anthem so much that he turned the country’s flag into a picnic blanket.

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By Thomas Wolf (Der Wolf im Wald) (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 8.16.17

Frankfurt doesn't want your tired, your hungry, your Brexit bankers; Rajat Gupta just wants to be normal, unassuming captain of industry again; Cheetos-only restaurant signals the end of western civilization as we know it; and more.

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Opening Bell: 2.14.17

Credit Suisse piles on more job cuts; Morgan Stanley goes all-in on China; Playboy prints nudes again; and more.

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Opening Bell: 6.20.16

Visium to shut funds amid probe; Gundlach fears Trump; Credit Suisse puts 5 on leave; Colorado company releases wine for cats; and more.

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Opening Bell: 1.13.17

Scaramucci finally earns respect; Cowen wants to be your new pot connection; bull market in golden showers; and more.

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Opening Bell: 6.8.22

Credit Suisse’s streak stays alive; Spirit taking its time; no IPOs; Odey above water; and more!

I'm sorry but I just don't recognize him. Source: Getty Images

Opening Bell: 6.8.17

Bill Gross remains less than optimistic; Amazon wants to eat your lunch; Paul Singer is a “pain in the ass”; weed pizza; and more.

Opening Bell: 4.25.16

Ex-Buffett heir now trying hand at activist investing; Glass Lewis tells Credit Suisse investors to reject pay packages; ‘Female Ted Cruz’ is making a p0rno; and more

Opening Bell: 01.04.13

SEC Drops Case Against Ex-Berkshire Exec Sokol (Reuters) The U.S. securities regulator has decided not to take action against David Sokol, once considered a possible candidate for the top job at Warren Buffett's Berkshire Hathaway, Sokol's lawyer told Reuters. In 2011, Buffett said Sokol violated the company's insider trading rules to score a $3 million windfall profit on shares of U.S. chemicals maker Lubrizol, which rose by nearly a third after Berkshire Hathaway announced it would buy the company. The U.S. Securities and Exchange Commission began investigating Sokol's investment in Lubrizol shortly after Sokol resigned from Berkshire Hathaway. Sokol's lawyer Barry Wm. Levine told Reuters late on Thursday that he was informed that the SEC had wrapped up its probe and decided not to take action against Sokol. "SEC has terminated its investigation and has concluded not to bring any proceedings against Sokol," said Levine, a lawyer at legal firm Dickstein Shapiro. Sokol has been "completely cleared" as there was no evidence against his client, Levine said. Cohen’s SAC Tops Most Profitable List Amid Insider Probes (Bloomberg) SAC Capital International, Cohen’s flagship fund, was the world’s most-profitable hedge fund in the first 10 months of 2012, earning $789.5 million for Cohen, 56, and his managers, according to Bloomberg Markets’ annual ranking of hedge funds...SAC Capital International is No. 1 not because of performance; it ties for No. 86 on that measure, with a 10 percent return in the Markets ranking of the 100 top-performing funds. Rather, the fund earned the most money because Cohen charges some of the highest fees on Wall Street. While most funds impose a 1 to 2 percent management fee and then take 15 to 20 percent of the profits, Cohen levies 3 percent and as much as 50 percent, according to investors. Geithner's Planned Departure Puts Obama In A Tough Spot (Reuters) The Treasury Department said Geithner would stick to his previously announced schedule to stay until sometime around the Jan. 21 inauguration. Obama chose Geithner to lead the just-ended negotiations with Congress to avert the Dec. 31 fiscal cliff of spending cuts and tax hikes that threatened to push the economy back into recession. But the deal, which preserved most of the Bush-era tax breaks for Americans, sets up a series of crucial fiscal deadlines by delaying automatic spending cuts until March 1 and not increasing the government's borrowing limit. That puts Obama in the tough spot of nominating another Treasury secretary and asking the Senate to approve his choice when lawmakers are in the middle of another budget battle. Egan Jones Says Further US Downgrades Unlikely (CNBC) "This latest round (of negotiations) indicates a sign of health. You have a major ideological clash going on in Congress and many people uncomfortable with it, but it is part of democracy. The more positive light is that we actually have a deal and can move forward," Sean Egan, managing director of Egan-Jones told CNBC on Friday. "We've gotten a lot more comfortable about the U.S. and we probably won't take additional negative actions for the foreseeable future," he added. Almost All of Wall Street Got 2012 Market Calls Wrong (Bloomberg) From John Paulson’s call for a collapse in Europe to Morgan Stanley’s warning that U.S. stocks would decline, Wall Street got little right in its prognosis for the year just ended. Paulson, who manages $19 billion in hedge funds, said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the Standard & Poor’s 500 Index would lose 7 percent and Credit Suisse foresaw wider swings in equity prices. All of them proved wrong last year and investors would have done better listening to Goldman Sachs Chief Executive Officer Lloyd C. Blankfein, who said the real risk was being too pessimistic. The ill-timed advice shows that even the largest banks and most-successful investors failed to anticipate how government actions would influence markets. Unprecedented central bank stimulus in the U.S. and Europe sparked a 16 percent gain in the S&P 500 including dividends, led to a 23 percent drop in the Chicago Board Options Exchange Volatility Index, paid investors in Greek debt 78 percent and gave Treasuries a 2.2 percent return even after Warren Buffett called bonds “dangerous.” Fed Divided Over Bond Buys (WSJ) A new fault line has opened up at the Federal Reserve over how long to continue bond-buying programs aimed at spurring stronger economic growth. Minutes released Thursday of the Fed's Dec. 11-12 policy meeting showed that officials were divided. Some wanted to continue the programs through the end of 2013, others wanted to end them well before then and a minority wanted to halt the programs right away. Swiss Bank Pleads Guilty In Probe (WSJ) In the latest blow to Switzerland's centuries-old banking practices, the country's oldest bank pleaded guilty to a criminal conspiracy charge in the U.S. on Thursday and admitted that it helped wealthy Americans for years avoid tens of millions of dollars in taxes by hiding their income from secret accounts abroad. Wegelin & Co., founded in 1741, is the latest Swiss bank to reach a deal with U.S. prosecutors as they crack down on Americans who kept their money in secret accounts overseas and the entities which helped them. Three Wegelin bankers also were charged criminally in the U.S. last year. Subway worker tells customer to 'fight me like a man,' during confrontation over ketchup (WFTV) Luis Martinez said he stopped by a Subway shop in a Walmart on South Semoran Boulevard late Tuesday night to get something to eat. He said he ordered a Philly cheese steak the way he always does. "American cheese, onions and ketchup," said Martinez. Lawrence Ordone was working behind the counter. "He wants ketchup on the Philly cheese steak and I have never put -- we don't even have ketchup at Subway -- I've never put ketchup on anybody's sandwich," said Ordone. Martinez said he didn't want the sandwich without the ketchup and that a man next to him in line offered to buy the sandwich. Ordone said that Martinez mouthed off at the man. Martinez denied saying anything, but neither he or Ordone disputed what they said happened next. "That's when I flew off the handle," said Ordone. "He shoved a chair to the side, like knocked it down to come at me, and I said, 'This is going to be serious,'" said Martinez. "I said, 'Let's go, fight me like a man,'" said Ordone. "I was scared. Next thing, I'm thinking a gun's going to come out," said Martinez. Ordone said he blocked the customer so he couldn't get out. "He threatened to kill me in front of my wife," said Martinez. Martinez called 911, but by the time police got there the Subway worker had already left. Ordone said he was fired from his job Wednesday, and that he is baffled the confrontation started over something as simple as ketchup. "There's ketchup three aisles down. You can go buy your own ketchup, and I promise to God, you can put as much as you want on it and nobody's going to say nothing," said Ordone. Economy Adds 155,000 Jobs (WSJ) Rebuilding following superstorm Sandy, which struck the Northeast in late October, likely added to job growth last month. Nationally, employment in the construction sector advanced by 30,000 jobs. Meanwhile, manufacturing payrolls increased by 25,000 and health-care jobs grew by 45,000. JPMorgan Faces Sanction for Refusing to Provide Madoff Documents (Bloomberg) The Treasury Department’s inspector general has threatened to punish JPMorgan Chase for failing to turn over documents to regulators investigating the bank’s ties to Bernard Madoff’s Ponzi scheme. Inspector General Eric Thorson gave the largest U.S. bank a Jan. 11 deadline to cooperate with the Office of the Comptroller of the Currency probe or risk sanctions for impeding the agency’s oversight. JPMorgan, according to the Dec. 21 letter, contends the information is protected by attorney-client privilege. Rich Catch a Break With Budget Deal Providing Deductions (Bloomberg) “The increases in taxes and limits to deductions are more favorable than expected,” said Christopher Zander, partner and head of wealth planning at Evercore Partners Inc. (EVR)’s wealth management unit. “They could have been worse for high net-worth taxpayers.” Regulators to ease up on banks to get credit flowing (Reuters) Banks will get more time to build up cash buffers to protect against market shocks under a rule change that could help free up credit for struggling economies, a European regulatory source said. The Basel Committee, made up of banking supervisors from nearly 30 countries, is expected to announce the revision on Sunday to its "liquidity coverage" ratio or LCR, part of efforts to make banks less likely to need taxpayer help again in a crisis. The change comes after heavy pressure from banks and some regulators, who feared Basel's original version would suck up too much liquidity at a time when ailing economies are badly in need of a ready supply of credit to finance growth. 'Stripper' arrested after performance art leads to ruckus in Hallandale (SS) According to police and witnesses, Mena, 25, was first spotted standing and yelling in the middle of A1A outside her condo building along the 1800 block of South Ocean Drive about 10:45 a.m. on Wednesday. Noel von Kauffman, 40, said he was walking along the street when he noticed Mena trying to direct traffic while wearing a tank-top, cut-off jean shorts and tall boots...At some point, Mena picked up a traffic cone and threw it at a car driven by Dieter Heinrich, 49, of Dania Beach, according to an arrest report. The cone broke the car's side mirror, causing about $300 in damages, the report indicated. When Heinrich got out of his car, Mena allegedly spat in his face. Von Kauffman said he jumped in to help Heinrich, who had children in the back seat of his car. Mena scratched von Kauffman's wrist as the two men tried to restrain her and move her away from the busy roadway, according to the police report. After pinning her to the ground, von Kauffman said the woman first tried to say the incident was part of a television show and that everything was being caught on camera. Then she claimed she was a federal agent. Then she said she was friends with Hallandale Beach Mayor Joy Cooper and everyone involved would be in trouble, von Kauffman said.