ByteDance Chief Reconsiders TikTok Options After New China Rules [Bloomberg]
The company’s regulatory team and deal negotiators are huddling to discuss whether it’s still possible to craft a sale that can win approval from both governments, an acquirer, venture investors and ByteDance itself, said one of the people…. “I’m not sure price matters as much as pride,” said Rebecca Fannin, author of Tech Titans of China, and founder of Silicon Dragon Ventures. “From the start, Zhang wanted to build a global company. Without the U.S. market, he can’t fulfill those ambitions. He’s a maverick, fiercely independent-minded entrepreneur. He may just decide not to do the deal at all.”

Mnuchin Says Economy Is Recovering but ‘More Work’ Is Needed to Alleviate Pain [NYT]
“Whether it is $1 trillion or $1.5 trillion, again, let’s not get caught on a number,” Mr. Mnuchin told the House Select Subcommittee on the Coronavirus Crisis. “Let’s move forward on a bipartisan basis now. I do not think the right outcome is zero. Nobody does….” Mr. Mnuchin reiterated his support for at least some version of two of Democrats’ top priorities in negotiations: enhanced benefits for the unemployed and additional money for revenue-constrained state and local governments, albeit at lower levels than Democrats support. But Senate Republicans appeared to be coalescing around a scaled-back stimulus plan that they could vote on as soon as next week but will not win Democrat support.

Ackman’s Big Year Continues With August Gains [II]
Bill Ackman’s Pershing Square Holdings is continuing its spectacular 2020 run, gaining 8 percent in August for a year to date return of 45.6 percent in the publicly traded hedge fund, according to an investor report. This month’s gain puts Ackman in striking distance of his 58.1 percent gain for all [of 2019]….

David Einhorn’s Hedge Funds Gain 0.5% in August With Markets Rallying [Bloomberg]
The gains weren’t enough to erase losses for the year, with the funds still down 17%.... Even though most of Greenlight’s largest disclosed long positions at the end of the second quarter rose in August, the VanEck Vectors Gold Miners ETF slipped 1.6%. Tesla Inc., a stock Greenlight has bet against, surged 74% during the month.

Billionaire investor Daniel Loeb reverses losses with bets on Amazon, Disney and Alibaba [FN]
Loeb's Third Point Offshore Fund posted gains of 4.4% for the year, after a jump of 8.4% last month, according to a performance update sent to clients on 31 August…. "Driving the equity portfolio’s gains were a series of well‐timed entries into new positions since the market bottom including in Alibaba and JD.com, Amazon, and Disney, as well as by bounce backs in several core positions including S&P Global and Prudential.”

Swiss regulator starts enforcement proceedings against Credit Suisse over spying scandal [CNBC]
“FINMA has opened enforcement proceedings against the bank, in which it will pursue indications of violations of supervisory law in the context of the bank’s observation and security activities and in particular the question of how these activities were documented and controlled,” the regulator said in statement.
“Typically such proceedings can be expected to take several months,” it added.

Mick Mulvaney is starting a hedge fund. Ethics experts have questions. [NBC News]
“The question is — if he’s going to use information he’s learned when he was in the government and it’s nonpublic information, then we’re in direct violation of securities law,” Painter said…. “They could be betting against financial services companies if they think regulators are going to move in on them,” Painter said. “That’s a big factor because if you know the regulators are going to start clamping down, if you short that stock in advance, you have a huge advantage.”

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jcrew

Opening Bell: 5.4.20

The chino-virus strikes; Fed follies; the Ackmanaissance accelerates; sad trombones for Michael Cohen; and more!

sofi-bacchanalia

Opening Bell: 1.8.21

SoFi SPACs; Wilbur Ross’ replacement; Credit Suisse undershot a bit; and more!

Photo: Getty Images.

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.

gamestop 3

Opening Bell: 9.8.21

GameStop earnings (as if they matter); Elliott has more helpful advice for Citrix; Credit Suisse steps in it again; and more!

(Getty Images)

Holiday Bell: 12.23.16

Deutsche and Credit Suisse settle; Italy rolls out the bailout; Tiger Woods is "Mac Daddy Santa"; and more.

Opening Bell: 03.23.12

Credit Suisse Chief Takes Sharp Pay Cut (WSJ) Mr. Dougan's compensation more than halved to 5.8 million Swiss francs ($6.3 million) from 12.8 million francs a year earlier. Like all of Credit Suisse's top managers, he didn't get a cash bonus. While Mr. Dougan's base salary remained unchanged, his bonus, awarded in the form of deferred stocks, fell 69% to reflect the sharp drop in profits last year and the 41% drop in Credit Suisse's share price in 2011. SEC Probes Rapid Trading (WSJ) Federal securities regulators are examining whether some sophisticated, rapid-fire trading firms have used their close links to computerized stock exchanges to gain an unfair advantage over other investors, people familiar with the matter say. The wide-ranging probe, being handled by the enforcement staff of the Securities and Exchange Commission, is focusing on the computer-driven trading platforms of exchanges, including BATS Global Markets Inc., the people said. Fed’s Bullard Sees Price Threat From G-7 Delaying Tighter Policy (Bloomberg) U.S. monetary policy may be at a “turning point” and the Fed’s first interest-rate increase since the global financial crisis could come as soon as late 2013, Bullard said in a speech earlier today. That view contrasts with a debate among Fed policy makers on whether more stimulus is needed even after the U.S. economy accelerated and the unemployment rate fell. Bales Had Troubled Broker Career Before Allegations (Bloomberg) Robert Bales, the U.S. soldier suspected of shooting Afghan civilians, started selling community-bank stocks in 1996 as a 23-year-old driving a Chevy Cavalier. That may have been the peak of his financial career. Before Bales enlisted in the Army in 2001 after the Sept. 11 terrorist attacks, he worked at five firms in five years. After he left the industry, he was hit with a $1.5 million settlement for his role in swindling a couple out of more than $600,000 from their retirement account. “He wanted to be an investment adviser, and he had a plan as to how he was going to accomplish that,” said Robert K. Cargin, who hired Bales in September 2000 at Quantum Securities Corp. in Westerville, Ohio. “It just didn’t work out.” BofA Tests An Option To Foreclosure (WSJ) Borrowers would agree to a what is known as a "deed-in-lieu" of foreclosure, where they essentially sign over ownership of the property to the lender. This is less costly to the bank and also does less damage to a borrower's credit than a foreclosure. In exchange, former owners would be offered one-year leases with options to renew the leases in each of the following two years at rents that the bank determines are at or below the current market price. Borrowers would have to demonstrate an ability to pay the market rent. ‘Linsanity’ pot nipped in bud (NYP) The Knicks’ new superstar point guard’s legal eagles threw cease-and-desist orders at three California medical-marijuana dispensaries that were offering customers “Linsanity” weed...Two of the dispensaries discontinued the names and the other simply rebranded its grass “Insanity.” Skowron plans to appeal court’s ruling on $10.2M (NYP) Joseph “Chip” Skowron, the former FrontPoint fund manager now jailed for insider trading, plans to fight a judge’s ruling that he pay $10.2 million to his former employer, Morgan Stanley. Skowron’s attorney intends to appeal the ruling handed down Tuesday by Manhattan federal judge Denise Cote, Skowron’s spokesman, Montieth Illingworth, said. Illingworth also blasted Morgan Stanley’s plans to pursue another $33 million, which Cote denied in her decision. The bank, which owned FrontPoint when the scandal hit and clients fled, wanted a total of $45 million in victim’s compensation. UBS Sees ‘Earlier’ Fed Move; Barclays Sees Rates on Hold (Bloomberg) “We regard the trend toward higher yields as a healthy development,” Andrew Cates in Singapore and Larry Hatheway and Christine Li in London wrote in a UBS report yesterday. “It reflects a healing process in the U.S. economy and recognition that the Fed will be able to normalize monetary policy earlier than many envisage.” Investors should buy two-year Treasuries, Ajay Rajadhyaksha and Dean Maki, New York-based analysts at Barclays, wrote in a report yesterday. “We consider the recent rise in Fed hike expectations premature,” they wrote Obama To Tap Kim For World Bank Post (AP) President Barack Obama will nominate Dartmouth College President Jim Yong Kim to head the World Bank, a surprise pick for the international financial institution's top job, senior administration officials said.

Opening Bell: 01.07.13

Regulators Give Ground To Banks (WSJ) Global banking regulators watered down a key element of their plan for creating a safer financial system, giving ground to banks that argued the rules were unworkable and financially risky. The Basel Committee on Banking Supervision, a group of the world's top regulators and central bankers, said Sunday that it agreed to relax a rule designed to ensure that big banks are able to weather financial crises without running short of cash. Bowing to two years of intense pressure from the banking industry, the regulators made it easier for banks to meet the rule, known as the "liquidity coverage ratio," and delayed its full implementation until 2019. It is the latest instance of regulators chipping away at their landmark 2010 response to the global financial crisis. The regulators argue that the changes make banking rules much stronger than they were before the crisis. Herbalifers Stay Resolute (WSJ) When hedge-fund manager William Ackman unveiled his 334-slide presentation alleging that Herbalife is a pyramid scheme, it did nothing to shake Joanne Clare. The 38-year-old Staten Island mother of three has been selling the company's weight-loss products and supplements since 2004, when she says they helped her drop from 210 to 160 pounds in four months. She now sells as much as $3,500 a month of Herbalife products to her 30 clients and the two distributors in her "down line." "People have always said it's a pyramid scheme, but it's not," Ms. Clare said, adding that the bulk of her earnings come from sales to clients, not her cut of her recruits' take. Mr. Ackman's declaration that he had bet more than $1 billion against Herbalife caused many investors to flee, sending the stock down 38% in four days in late December. But some of the company's 3.1-million-strong army of distributors were unmoved. Eliot Spitzer Ends His Show On Current TV (NYT) The announcement comes a few days after Al Jazeera said it was acquiring Current TV. Later this year, the Qatar-owned broadcaster plans to turn the channel into an Americanized version of the international news channel Al Jazeera English. Mr. Spitzer said he had a “wonderful time” at Current, but emphasized that his relationship was with Al Gore and Joel Hyatt, Current’s co-founders, not with Al Jazeera. “Moving forward, their mission will be different,” he said — more international newscasts, less liberal talk about the news. Citi's Corbat builds bridges (Reuters) Citigroup Inc's Michael Corbat has been meeting with bank regulators in his first months as CEO, as he looks to bolster relationships and finalize the bank's plan to return capital to shareholders, sources familiar with the matter said. Corbat also expects to name his team of top managers within the next week or so, one of the sources said on Sunday. Corbat is expected to play it safe when Citigroup asks the U.S. Federal Reserve for permission for moves such as buying back shares or increasing dividends, analysts and investors said. His predecessor, Vikram Pandit, lost his job in October in part because the bank's request for returning capital was denied in March. The bank, which is due to submit its plan to the Fed on Monday, has not yet done so, the source said. The third-largest U.S. bank will only seek approval to buy back shares and not raise dividends, the Wall Street Journal reported on Friday. Last year, the bank wanted permission to return more than $8 billion to shareholders over two years, the paper said. For Newly Minted MBAs, A Small Paycheck (WSJ) For graduates with minimal experience—three years or less—median pay was $53,900 in 2012, down 4.6% from 2007-08, according to an analysis conducted for The Wall Street Journal by PayScale.com. Pay fell at 62% of the 186 schools examined. Even for more seasoned grads the trend is similar, says Katie Bardaro, lead economist for PayScale.com. "In general, it seems that M.B.A. pay is either stagnant or falling," she says...It is all a far cry from the late 1980s and early 1990s heyday for M.B.A.s, when some companies would hire 100 or more M.B.A.s. It wasn't uncommon to recruit first, and fill actual jobs later. DOJ pledges to respect Swiss law in tax probe (Reuters) Swiss chief finance diplomat Michael Ambuehl was given a verbal pledge from the U.S. Department of Justice to respect Swiss law when asking for bank client data of potential tax dodgers, a newspaper reported on Sunday. Switzerland is in negotiations with U.S. authorities to find a deal that would end tax probes into at least ten Swiss banks suspected of helping clients dodge taxes, including Credit Suisse and Julius Baer. The Alpine country is trying to preserve what is left of its cherished banking secrecy that suffered a severe blow in 2009 when UBS, the first Swiss bank that came under scrutiny in the U.S., was required to disclose client data. Brazilian prison gaurds catch cat that slipped through the gate with escape tools taped to its body (NYDN) Guards at a Brazilian prison nabbed a white cat that slipped through the gate with a cell phone, drills, small saws and other contraband taped to its body. Alagoas prison spokeswoman Cinthya Moreno says the cat was caught New Year’s Eve at the medium-security prison in the city of Arapiraca. The O Estado de S. Paulo newspaper reported Saturday that all of the prison’s 263 inmates are suspects in the smuggling attempt, though a spokesperson said, “It will be hard to discover who is responsible since the cat does not speak.” Loeb, Cooperman Stand Out in Horrid Year for Hedge Funds (CNBC) Third Point was the clear hedge fund standout in a horrible year for the industry as almost nine out of 10 managers underperformed the S&P 500. Omega Advisors' Leon Cooperman also scored big. Loeb — once better known for his acerbic letters to CEOs — used an activist position in Yahoo and the contrarian buying of Greek bonds to drive the firm's flagship fund to a 21 percent gain in 2012. The firm's more-leveraged Ultra fund posted an even bigger 34 percent return...Cooperman's fund had a net return of 26 percent in 2012. Banks Zero In On Foreclosure Pact (WSJ) Banks were closing in on a $10 billion foreclosure-abuse settlement with regulators that could be announced as soon as Monday, according to people familiar with the talks. The settlement was nearly complete Sunday afternoon, the people said, after the Federal Reserve backed down on a demand for more compensation for consumers and other changes to the pact. Bankers threatened to walk away from the deal if the Fed's demand for an additional $300 million was included, a person briefed on the talks said. Junk Bonds' Fire Is Poised to Fade (WSJ) Junk bonds started 2013 much like they finished 2012—on fire. In just three trading days this year, bonds of low-rated companies delivered returns of almost three-quarters of a percent, even as most other types of bonds lost value. And junk bonds continued to clock new milestones: Average prices soared to their highest since 2004 and average yields, which decline as prices rise, dropped below 6% for the first time ever, according to Barclays. But the rapid march is making fund managers and analysts wary. Prices are now so high—averaging more than 105 cents on the dollar—that there is little room for them to climb much further, some investors say. These are lofty prices for bonds that usually trade below 100 cents, reflecting the higher default risk for such companies. At the very least, returns will pale in comparison with the 15% achieved in 2012, analysts and investors say. NHL, Players Settle Labor Dispute (AP) On the 113th day of a management lockout and five days before the league's deadline for a deal, the bleary-eyed sides held a 6 a.m. news conference to announce there will be a season, after all. NHL Commissioner Gary Bettman and union head Donald Fehr both appeared drained, wearing sweaters and not neckties, when they stood side by side at the hotel and announced labor peace. "We have reached an agreement on the framework of a new collective bargaining agreement, the details of which need to be put to paper," Bettman said. "We've got to dot a lot of Is, cross a lot of Ts. There's still a lot of work to be done, but the basic framework of the deal has been agreed upon." Hostess in Talks to Sell Off Bread Brands (WSJ) Hostess could disclose Flowers, Grupo Bimbo or others as opening bidders in a looming bankruptcy-court auction for the assets as soon as this week, said people familiar with the matter. Hostess, whose bread brands include Wonder Bread, Nature's Pride, Home Pride, Merita and Butternut, is still determining how to split up assets and package them for buyers, one of the people said. Gérard Depardieu gives up French citizenship after bitter tax fight (GM) In a fit of pique, French movie star Gérard Depardieu announced during the weekend that he would give up his citizenship after politicians and the media took him to task for moving to Belgium and avoiding an impending tax hike for the rich. Mr. Depardieu is not France’s first fiscal refugee but his high-profile door-slamming so monopolized public debate that Prime Minister Jean-Marc Ayrault had on Monday to parse whether or not he had insulted the actor. “I did not call Mr. Depardieu a loser, I said that it was loser-like [to move to Belgium to avoid taxes],” Mr. Ayrault told reporters...The “loser” comment seemed to have been the jab that stung Mr. Depardieu the most. “Loser, did you say loser?” the 63-year–old actor began an open letter to Mr. Ayrault that appeared Sunday in Le Journal du dimanche. Mr. Depardieu wrote that he had paid a total of €145-million in income tax in the last four decades and kept 80 people employed. He added that he had been taxed at a marginal rate of 85 per cent this year. “I am giving you back my passport and my social insurance, which I had never used. We no longer have the same fatherland. I am a true European, a citizen of the world.”

By Mike Cauldwell (https://www.casascius.com/photos.aspx) [Public domain], via Wikimedia Commons

Opening Bell: 4.14.21

Coinbase and ConsenSys; Credit Suisse still selling; TP tamp down; and more!