Congressional Republicans Are Close to Revolt Over Stimulus Aid [NYT]
Even as Senator Mitch McConnell of Kentucky, the majority leader, divulged details of his emerging plan, expected to total roughly $1 trillion, President Trump had yet to sign on and Republicans remained deeply divided over several key elements…. It was an inauspicious start to talks on the measure, and top Republican officials privately cautioned on Tuesday that the coming negotiation, a wide-ranging election-year brawl, was likely to stretch into August, leaving tens of millions of unemployed Americans without extra help as Congress hammers out the latest recovery plan and the virus surges….
“I just walked out of a meeting that could be sort of a Bernie bros, progressive caucus,” Senator Rand Paul, Republican of Kentucky, told reporters after the lunch. “I’m alarmed that we’re talking about spending another trillion dollars we don’t have.”

Wells Fargo CFO, who survived accounts scandal, to retire. BNY Mellon exec to replace him [Charlotte Observer]
The departure of Shrewsberry and replacement with another former colleague of Scharf’s nearly completes the new CEO’s revision of the senior management at the bank. Since he took over, he has consistently added scores of former colleagues, with a particular focus on JPMorgan.
[Mike] Santomassimo worked at JPMorgan from 2005 to 2016. He will be based in New York, like Scharf and many of his hires.

Former Morgan Stanley financial adviser charged with stealing $6 million from clients [CNN Business]
[Michael] Carter, 47, allegedly stole from victims including an elderly investment advisory client who had been saving a college fund for her grandchildren and from people he knew "through familial ties and friendship," according to a complaint brought by the Securities and Exchange Commission. The complaint alleges he used the money to fund an expensive lifestyle that included a luxury car and large home mortgage.

Bill Ackman: Pershing Square ‘taking no compensation’ for new SPAC investment vehicle [CNBC]
“What’s new in our structure is it’s the first SPAC where we’re taking no compensation: no management fees, incentive fees ... we’re not buying cheap stock. There’s literally no compensation to the sponsors,” he said Wednesday on CNBC’s “Squawk Box”.
The fund, called Pershing Square Tontine Holdings is poised to become the largest special purpose acquisition company, or SPAC, on record when it begins trading on Wednesday.

Merkel Lobbied for Wirecard Despite German Probe [WSJ]
Ms. Merkel brought up Wirecard’s plans to acquire Beijing-based AllScore Payments Systems during a state visit to China in early September 2019, according to her spokesman….
The spokesman said the chancellor didn’t know of any possible serious irregularities at Wirecard at the time…. Yet two weeks before the trip, the German Finance Ministry had informed the chancellery that Wirecard was being investigated by the German market watchdog and flagged recent press reports, including one about the Financial Times defending its reporting on Wirecard’s accounting practices and potential financial misconduct, according to spokesmen for the chancellor and the finance ministry.

Credit Suisse Set to Score a Smaller Role on Ant’s Mega IPO [Bloomberg Quint]
Credit Suisse Group AG has been fighting for a major role in the offering and Ant is leaning toward naming them as a joint global coordinator for its Hong Kong listing, which could raise about $10 billion…. Ant has picked four sponsors for its Hong Kong share sale, Bloomberg News has reported. The banks include China International Capital Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley, people familiar have said.

Tesla Knocks on S&P 500’s Door [WSJ]
To be considered for the index, companies must report an accumulated profit over four consecutive quarters, including the most recent. Tesla has yet to accomplish the feat. The consensus estimate of analysts polled by FactSet is for a modest loss. Some analysts are more optimistic because of the company’s recent history of earnings beats…. “It’s unusual to see a stock get to the market cap that Tesla has without being in the benchmark,” said John Porter, head of equities at Mellon Investments Corp., overseeing about $35 billion in stock, including a position in Tesla. “Normally, you wouldn’t get to an outsize market cap before you’re already generating a profit.”

CFTC Chairman Pushes to Finalize Dodd-Frank Rules [WSJ]
The effort has caused advocates of stricter regulation to accuse Mr. Tarbert of trying to ram through industry-friendly rules without providing sufficient time for public review…. The act has its 10-year anniversary today. Those include rules about how the agency regulates cross-border derivatives transactions and the number of contracts market participants can hold on certain commodities such as oil and wheat….
The agency’s two Democratic commissioners have said the most recent proposal would saddle the U.S. financial system with the risk from deals cut by the affiliates of U.S. banks, while allowing them to operate outside of U.S. regulations.

UK’s first regulated crypto hedge fund set to close down after failing to attract investors [FN]
Prime Factor Capital, the first cryptocurrency-focused hedge fund to be given a licence by UK regulators, has struggled to attract investors since launching in 2018. Its founders are now in the process of dismantling the business, according to people familiar with the matter.

Men’s Wearhouse, Jos. A. Bank Parent Looks to Close More Than Third of Stores [WSJ]
Tailored Brands Inc. also said Tuesday it will lay off 20% of its corporate staff and reduce its supply-chain footprint…. Before the public-health crisis began, the Houston-based retailer was already challenged by a trend away from suits as men’s workplace fashion drifted toward more casual styles. The coronavirus pandemic, which has shifted many white-collar jobs to telecommuting, accelerated that trend, [CEO Dinesh] Lathi said last month.

Related

Opening Bell: 4.16.15

Goldman and Citi beat estimates; Ben Bernanke works for Ken Griffin now; Schwarzman describes Blackstone as "earnings machine"; Stripper School shutdown; and more.

Opening Bell: 04.27.12

LightSquared Lenders Pressure Falcone (WSJ) If Mr. Falcone doesn't agree to eventually leave LightSquared's board and make way for new executives and directors at the wireless communications firm, lenders are likely to balk and the company could end up filing for bankruptcy protection, they said. Shareholders Rebuke Barclays, Credit Suisse on Pay (Reuters) More than a quarter of Barclays shareholders look set to vote against the British bank's controversial pay plan for bosses and Credit Suisse is also facing a backlash as investors seek a greater share of profits. Stormy annual shareholder meetings at both banks got underway on Friday with many attendees complaining executives are getting too big a slice of bank income at their expense...Barclays Chairman Marcus Agius apologized for badly communicating the bank's pay strategy and promised to "materially" increase the dividend shareholders receive, helping to lift the bank's shares more than 4 percent. But he was heckled during his speech to a packed hall of about 2,000 shareholders and his comments about pay were greeted with laughter in some quarters. Renowned short-seller bets against Fortescue (SMH) Hedge fund short-seller Jim Chanos has singled out Fortescue Metals as a "value trap" stock, telling a New York conference that shares in billionaire Andrew Forrest's company will fall "materially." In a presentation this month to Grant's Spring Conference, a private investment forum, Mr Chanos, the boss of Kynikos Associates, told investors he feared iron ore miner Fortescue has "a somewhat promotional management team." Goldman Banker Probed For Alleged Leaks To Galleon (WSJ) U.S. prosecutors and securities regulators are investigating whether a senior Goldman investment banker gave Galleon hedge-fund traders advance word of pending health-care deals, according to people familiar with the matter. The banker, whom the people identified as Matthew Korenberg, is a San Francisco-based managing director for Goldman, a senior post. Among the merger deals being scrutinized by Los Angeles federal prosecutors and the Securities and Exchange Commission is the 2009 acquisition by Abbott Laboratories of Advanced Medical Optics, a Santa Ana, Calif., medical-device maker—a deal in which Mr. Korenberg advised Advanced Medical Optics, the people say. Another is the acquisition of APP Pharmaceuticals Inc. by Fresenius, announced in July 2008, in which Goldman advised APP, they say. Unlikely Allies (NYP) Billionaire hedge-fund mogul and Republican stalwart Paul Singer is in an odd position of late — asking the Obama administration for help to keep troubled mortgage lender ResCap out of bankruptcy. Singer, whose Elliott Associates owns debt in the mortgage lender, a unit of Ally Financial, asked Treasury Secretary Tim Geithner in recent weeks to use the government’s 74-percent stake in Ally to press for an alternative financial cure. An out-of-bankruptcy solution would help Elliott, to be sure, but would also assist the White House by keeping a unit of one of its high-profit bailouts from outright failure. But Singer, so far, hasn’t gotten any satisfaction. Geithner, insiders said, doesn’t want to use Treasury’s muscle to stop the likely Chapter 11 filing because it could be interpreted as the government overstepping its bounds. Spain Urges Focus On Reforms After Downgrade (WSJ) The government has embarked on a plan of far-reaching reforms to overhaul the economy, including new labor laws and a cleanup of the banking sector. Mr. Jiménez Latorre said these reforms will pay dividends in the medium- to long-term. The S&P ratings action "just focuses on the immediate effects," which won't be positive, Mr. Jiménez Latorre said. Dream Stenographer / Lucid Dreaming Partner (Craigslist) "I possess the wonderful gift of regularly occuring and incredibly vivid lucid dreams. In these dreams I have written Pulitzer Prize winning novels, bioengineered the cure for HIV, and brokered a lasting Israeli-Palestinian peace agreement. I have also composed Grammy winning albums. The only problem is humanity hasn't and can't benefit from my accomplishments because I forget how I achieved them shortly after waking. As a modern Renaissance man and philosopher scientist, my conscience cannot be at peace knowing I'm not doing everything possible to save my fellow human beings. Therefore I would like to a hire a dream stenographer to write down my ideas so that I may share them with the world. You, the dream stenographer, will sleep within arm's reach of me on selected nights when I feel my mind is operating at its peak performance level. Sleeping is mandatory as I'm not able to reach my optimum dream state when someone is watching me sleep. Remaining within arm's reach at all times is also mandatory so that I may wake you as quickly as possible to begin recording my stream of consciousness.Qualified applicants will be excellent note takers with unrivaled penmanship." KKR Earnings Beat Expectations (WSJ) Economic net income, a measure of private-equity firms' profitability that analysts follow because it includes both realized and unrealized investment gains, was $727.2 million, or 99 cents a share, compared to $742.5 million, or 96 cents a share, in the year-earlier period. The earnings came in at the top end of analysts' estimates, with a consensus economic net income of $486.6 million, or 74 cents a share, according to Thompson Reuters. NYSE CEO 'very disappointed' to lose out on Facebook listing (DJ) Just so you know. Wells Fargo to Buy Merlin Securities Prime Brokerage (Bloomberg) The purchase is Wells Fargo’s first foray into prime brokerage services and the bank will use the business as a foundation to expand, said Christopher Bartlett, head of equity sales and trading at the San Francisco-based lender. Prime- brokerage includes services such as lending, clearing trades and record-keeping that help hedge fund managers run their firms. Bartlett wouldn’t say how much Wells Fargo paid and a statement set to be released later today didn’t disclose the terms. Bo Xilai's Son Ticketed in Porsche (WSJ) Disputing a notion common in China that he lives a lavish lifestyle, Mr. Bo wrote to the Harvard Crimson on Tuesday saying he wished to address "rumors and allegations about myself." Among other things, "I have never driven a Ferrari," he wrote. The Wall Street Journal reported in November, based on people familiar with the episode, that Mr. Bo, the grandson of an illustrious Communist leader of the Mao era, arrived at the U.S. ambassador's residence in Beijing in a red Ferrari last year to pick up the daughter of the then-ambassador...Massachusetts Department of Transportation records show Mr. Bo was stopped by police for allegedly running stop signs in December 2010 and May 2011, one of them at 2:20 a.m., and for speeding in February 2011. The license plate of the car, which the Journal learned from someone familiar with the matter, showed it was a black 2011 Porsche Panamera registered to someone at his address.