Dan Loeb warns Seven‐Eleven Japan; American Psycho is back; Cupcake the cat survives 260-mile, 8-day journey through the mail; and more.

Anger Over Christine Lagarde's Tax-Free Salary (Independent) Lagarde was accused of hypocrisy yesterday after it emerged that she pays no income tax – just days after blaming the Greeks for causing their financial peril by dodging their own bills. The managing director of the International Monetary Fund is paid a salary of $467,940 (£298,675), automatically increased every year according to inflation. On top of that she receives an allowance of $83,760 – payable without "justification" – and additional expenses for entertainment, making her total package worth more than the amount received by US President Barack Obama according to reports last night. Unlike Mr Obama, however, she does not have to pay any tax on this substantial income because of her diplomatic status. EU Proposes 'Banking Union' (WSJ) The 17 countries that use the euro should consider setting up a "banking union" that allows them to share the burden of bank failures, the European Union's executive arm said Wednesday in a report on the currency union's crisis-fighting efforts. To further stop expensive bank bailouts from pulling down governments' own finances, allowing the euro zone's new rescue fund to directly boost the capital of banks "might be envisaged," the European Commission said. Greeks Flock To Germany Even As They Criticize It (CNBC) Germany, Europe's economic powerhouse and a country which has been criticized by many Greeks over its harsh demands for austerity cuts in return for bailout cash, has experienced an influx of young skilled immigrants. Der Spiegel magazine noted that while Greek newspapers "printed cartoons depicting the Germans as Nazis, concentration camp guards and euro zone imperialists who allow their debtors to bleed to death," the Greeks have kept arriving — bringing an "anything is better than Athens" attitude with them. Pissarides Says Euro Exit Would Aid Rich Greeks At Cost To Poor (Bloomberg) Nobel economics laureate Christopher Pissarides said wealthy Greeks would benefit at the expense of poorer citizens were the country to exit the euro. “A lot of Greeks” have withdrawn money and deposited it with banks elswhere in the 17-nation currency zone, Pissarides said in an interview in London today. If the country returned to the drachma, the new currency would be so devalued they could buy it cheaply on international markets with the cash they’d exported, enabling them to buy more assets in Greece. While poorer Greeks are equally able to appreciate the difficulties facing their country, they’re not as able to shield their funds from an exit from the common currency, Pissarides said. They need to preserve quick access to their savings, which isn’t as easy to do if it’s held at a foreign bank, and such lenders may not always accept small deposits. Zuckerberg Drops Off Billionaires Index As Facebook Falls (Bloomberg) The 28-year-old’s fortune fell to $14.7 billion yesterday from $16.2 billion on May 25, as shares of the world’s largest social-networking company dropped 9.6 percent to $28.84. Woman's Boyfriend Took Car Without Permission Before She Slammed It Into House (NYP, earlier) Dan Sajewski, 23, arrived at his family’s Huntington estate last weekend with Anderson, 21, his on-again, off-again waitress girlfriend. While his parents vacationed on Long Island’s North Fork, the duo helped themselves to his mother’s 2003 Mercedes-Benz CLK 320, a birthday gift from Sajewski’s anesthesiologist father, a source said. They took a joyride to the Hamptons, where they had a little too much fun. A field Breathalyzer test revealed that Anderson drove home with a .30 Blood-Alcohol Content — nearly four times the legal limit and the equivalent of about 15 drinks, prosecutors said at her arraignment yesterday. They drove back to Huntington and she was speeding along Southdown Road when she failed to turn at a T-instersection — ramming through the front of Indiere’s house, obliterating her kitchen, and exiting through the back wall, prosecutors said. “We can’t believe he just let this girl drive a car he wasn’t even supposed to have in the first place,” a Sajewski family member said. “He’s done this before; he took his sister’s Jeep and just took off. “He was trying to get the car home before the family got home from their own Memorial Day weekend. He’s not exactly the model son.’’ The relative added that Sajewski didn’t call his father about the accident until two hours later. In the police report, Anderson told cops “her power steering got stuck, causing her to crash,” and that she only drank “three beers.” Housing Market Crawls Back (WSJ) Housing prices across the U.S. fell in March, but not as much as in earlier months, according to a report Tuesday that offered fresh evidence of a real-estate market on the mend. Compared with February, prices fell just 0.03% in March, and after adjusting for seasonal factors, they rose 0.09%, according to the S&P/Case-Shiller 20-city home-price index. "This is the first flat report we've had in quite some time," said David M. Blitzer, chairman of the Index Committee at S&P Indices. Still, "while there has been improvement in some regions, housing prices have not turned" everywhere, he said. Bankers Hired By Blackberry Maker (NYP) Research In Motion said yesterday it hired investment banks JPMorgan and RBC to review its “options,” which most investors took to mean a potential sale, and warned of another quarterly loss. Gold Investors Rush For The Exits (WSJ) Investors in SPDR Gold Shares and iShares Gold Trust, two high-profile exchange-traded funds that hold physical bullion, also have pulled back recently. Through Friday, the two funds had reduced the number of tons of gold they're holding this month. As of May 15, hedge funds, pension funds and other money managers also had slashed their bets that gold prices will rise in the futures market, to the lowest level since January 20, 2009, according to weekly data released by the U.S. Commodity Futures Trading Commission. The bullish bets rose slightly last week, but remain near the low for the year. Police Find Another Human Body Part In Package In Ottawa (OC) Police found a human hand at the Ottawa Postal Terminal Tuesday night, hours after a bloody foot was delivered to the Conservative party's Ottawa headquarters just blocks from Parliament Hill. Ottawa police were still trying to understand what they were dealing with even as detectives in Montreal combed through a crime scene where a torso was found in a suitcase in that city's Snowdon district. Police discovered the second package, sent from the same place as the package sent to Tory headquarters, Tuesday evening. Officers carried it from the huge Riverside Drive terminal in a brown paper bag, which they X-rayed before they opened it to find the hand. The gruesome events began shortly before noon when access to the Conservative party's headquarters was restricted after the fire department's Hazmat team was called in to investigate a suspicious package. A party staffer had started to open a blood-stained box sent to the office at 130 Albert St. before police were called to investigate. At first, it was thought there was a human heart inside, but after the box was X-rayed, police confirmed that it contained a foot.

Banks Worry As Breakup Talk Revived After JPMorgan Loss (Bloomberg) “There seems to be growing interest in some type of breakup proposal,” said Sheila Bair, a former chairman of the Federal Deposit Insurance Corp. The concept is expected to arise today as JPMorgan Chief Executive Officer Jamie Dimon testifies before the House Financial Services Committee on the trading debacle. Last week he told the Senate that the losses, which carved about $23 billion from the bank’s market value, were due to a poor investing strategy coupled with management failures. Senator Sherrod Brown seized on that admission. “It appears executives and regulators simply can’t understand what is happening in all these offices at once,” the Ohio Democrat said during the June 13 hearing. “It demonstrates to me that too-big-to-fail banks are, frankly, too-big-to-manage and too-big-to-regulate.” Greece Set For Bailout Reward As EU Sees Tweaked Aid Terms (Bloomberg) Greek voters are likely to get a reward for backing pro-euro parties, with European creditors set to ease bailout terms on the debt-swamped country mired in the fifth year of recession. A first step will be when Greece’s still to-be-formed government requests modifications to the 240 billion-euro ($303 billion) rescue programs, leading to a revision of Greece’s economic-performance targets sometime before September, a European official told reporters in Brussels today. Greek Coalition Needs 'Breathing Room' From Creditors: MP (CNBC) Kyriakos Mitsotakis, an MP for New Democracy, which won most votes in Sunday’s election and was Tuesday locked in negotiations with historic rivals Pasok and the Democratic Left to form a coalition, told CNBC: “Giving a very sick patient nothing but the same medicine when this has not had the required result would be madness.” Austerity Doesn't Pay As Debt Markets Ignore Rating Cuts (Bloomberg) "I don’t think we should be slaves to the ratings agencies,” Mervyn King, governor of the Bank of England, told lawmakers on Feb. 29. “What we’ve seen is, the action they took recently did actually have no impact on the yield that people in the market were willing to lend to the U.K. government at.” Buying Opportunity All Over Europe, Even Greece, Says Donald Trump (CNBC) FYI: "You're getting it for nothing, you're getting the land for nothing, you're getting everything for nothing," he said. "You have to sit with it for a while, but there are a lot of great opportunities in Europe. There's no question about it. I'm actually looking at something — it's so ridiculous, it's laughable — and yet I'm thinking about doing something over there with a group that is very smart, and frankly there is an opportunity." Einhorn's Overlooked Bear Call on US Steel Pans Out (Reuters) The Greenlight Capital manager unveiled his negative critique of U.S. Steel at the Ira Sohn charitable conference on May 16, where more attention was focused on Einhorn's bearish views on industrial goods company Martin Marietta Materials and online retailer Amazon.com . Yet it's Einhorn's U.S. Steel call that has outperformed, after the closely watched hedge fund manager zeroed in on the company's poor earnings, high pension costs and the impact of China's slowing demand for iron ore. As of Monday's close, the steelmaker's stock price was down 23.1 percent since the popular conference, where top hedge fund managers reveal their best investing ideas. Meanwhile, shares of Martin Marietta have lost about 8.5 percent over the same time period and Amazon's stock is down 0.8 percent. Mark Cuban sells Facebook stake, says 'it was gambling money' (DJ) The billionaire investor and Dallas Mavericks owner sold his stake in the social network, less than a month after initially disclosing he had built a position in the company following its bungled initial public offering. "I took my hit, my thesis was wrong," Cuban said in a CNBC interview. "I thought we'd get a quick bounce just with some excitement about the stock. I was wrong, and when you're wrong you don't wait, you just get out. I took a beating and left."...Cuban described the move as "a trade, not an investment" and compared it to trading baseball cards. "It was gambling money, to be honest with you," he said on Monday. "Any time you try to time the market, you get what you deserve. Sometimes you're right. Sometimes you're wrong. This time I was wrong." Goldman: Fed Will Ease Monetary Policy This Week (CNBC) The Federal Open Market Committee will likely say it would buy assets such as mortgage-backed securities and U.S. Treasurys when it meets for a two-day meeting starting Tuesday, Jan Hatzius, the investment bank’s Chief U.S. Economist said in a report on Monday. “We would be quite surprised if we saw no easing this week,” Hatzius wrote in the report. The End Of The Line For Famed Exchange (WSJ) The owner of the Bendigo Stock Exchange, which traces its roots to a time when thousands of prospectors descended on Victoria state after gold was discovered by two women washing clothes in a creek, plans to close the institution at the end of June. Mike Tyson Set For Broadway Debut (NYDN) The last time Mike Tyson was on stage at a Broadway theater, it was four years ago and he nearly wrecked what was left of his boxing career by biting Lennox Lewis on the leg during a press conference at the Hudson Theater. Now Tyson is returning to a Broadway theater to breathe life into his new career - theatrical performer. Tyson was on stage at the Longacre Theater in midtown on Monday afternoon to announce his one-man show, which will begin a limited engagement on July 31. The show, entitled "Mike Tyson-Undisputed Truth'' will be directed by Spike Lee, who also will be making his Broadway debut. "Mike has lifted himself off the canvas,” Lee said. "It's a great story and Mike tells it masterfully.”