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Biden to unveil $1.8 trillion plan for children and families — here’s what’s in it [CNBC]
The Biden administration’s new spending plan would hike the top income tax rate to 39.6% for the wealthiest Americans…. The plan would also seek to close a series of so-called tax loopholes, and raise taxes on capital gains to 39.6% for households making more than $1 million.
The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.

Food delivery start-up Zomato files for $1.1 billion IPO in India [Reuters via CNBC]
In February, the company raised $250 million from five investors including hedge fund Tiger Global Management for a post-money valuation of $5.4 billion…. India has been one of the hottest IPO markets so far in 2021, helped by a flood of foreign money and high interest from mom-and-pop investors.

AMC Aims to Sell 43 Million Shares to Bolster Cash Reserves [WSJ]
The company on Tuesday also said it is temporarily canceling its campaign to increase by 500 million the number of shares it would be able to sell, which would nearly double its total share count…. After having shut all of its cinemas because of the coronavirus pandemic, AMC reopened all but five of its 590 locations in the U.S. and 97 of its 354 international locations as of the end of March.

Saudi crown prince says the kingdom’s in talks to sell 1% of Aramco to a ‘leading global energy’ firm [CNBC]
“That will be a great deal to enhance the sales of Aramco in the country where this company (is based),” he said. The prince did not name the company but said it is from a “huge” country./He also said there are discussions with other firms, and some Aramco shares could be transferred to the kingdom’s sovereign wealth fund, the Public Investment Fund. Some shares may be listed on the Saudi market as well.

Dimon Signals to Wall Street It’s Time to Return to the Office [Bloomberg]
JPMorgan Chase & Co. became the first major U.S. bank to mandate a return to offices for its entire U.S. workforce, with staffers being told they’ll need to come back in about two months. The lender’s top decision-making body, led by Chief Executive Officer Dimon, said in a memo to staff Tuesday that it “would fully expect that by early July, all U.S.-based employees will be in the office on a consistent rotational schedule….”
Employee rotations at JPMorgan will be subject to a 50% occupancy cap until U.S. authorities revise their social-distancing guidelines, according to Tuesday’s memo. The bank advised workers that “with this time frame in mind you should start making any needed arrangements to help with your successful return.”

MoMA replaces Leon Black, calls him ‘outstanding’ [N.Y. Post]
MoMA Director Glenn Lowry in a Tuesday afternoon email to trustees announced the election of Marie-Josée Kravis — the wife of Black’s rival, leveraged buyout baron Henry Kravis — to replace Black…. In naming Black’s replacement, Lowry praised the museum’s chair since 2018 for having provided “outstanding leadership and dedication to MoMA….”

Related

By joho345 (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 3.10.21

Jamie Dimon punks Leon Black; GE sells something to get rid of something else; more corrupt Congressional stock trading; and more!

biden debate

Opening Bell: 9.30.20

JPMorgan strikes a deal; Steve Mnuchin pretends to be trying; the Mooch says the debate was embarrassing, and he would know; and more!

warby parker

Opening Bell: 9.29.21

Jamie Dimon’s disappointed; on second thought, Ozy will look into the whole ‘impersonating a YouTube exec in a fundraising call with Goldman Sachs,’ and more!

chinese flag

Opening Bell: 10.4.21

Evergrande grinds to a halt; Schrödinger’s digital media company; Jamie Dimon wants a f**cking standing O; and more!

Opening Bell: 11.19.12

Geithner: Deal To Avoid 'Fiscal Cliff' Can Be Made In Weeks (Bloomberg) Treasury Secretary Timothy F. Geithner said he’s confident an agreement on averting the fiscal cliff can be concluded within weeks after White House talks between President Barack Obama and congressional leaders. “It was a good meeting, and the tone was very good,” Geithner said in an interview in Washington. “I think this is doable within several weeks.” Geithner said a deal must be reached soon to prevent further damaging consumer confidence. The lack of agreement is “this huge cloud of uncertainty hanging over the economy,” he said. As the peak of holiday shopping season approaches, “You’d want to do it as soon as you can.” “This is within our grasp, within our reach,” Geithner said. “It’s not that complicated.” Geithner repeated the administration’s calls for an immediate extension of middle-class tax cuts, and said a deal on high-end tax cuts shouldn’t be delayed. “I think deferring things doesn’t work,” he said. “You know, we’ve had several periods now where there was a choice made to defer.” Obama Calls CEOs, Including Buffett, Dimon (Politico) President Obama made calls to a handful of top business leaders over the weekend, a White House official said Sunday, as part of effort to build support for his approach to averting the fiscal cliff. In conversations that came during his weekend of travel to and in Asia, Obama stressed "the need to find a balanced deficit reduction solution that protects the middle class and continues to move our economy forward," the official said. Obama spoke to Berkshire Hathaway CEO Warren Buffett, Apple CEO Tim Cook, JPMorgan Chase CEO Jamie Dimon, Boeing CEO Jim McNerney and Costco CEO Craig Jelinek, the official said. Lagarde: Reality' Not 'Wishful Thinking' Needed on Greece (Reuters) "I am always trying to be constructive but I am driven by two objectives," Lagarde said in an interview, "to build and approve a program for Greece that is solid, that is convincing today, that will be sustainable tomorrow, that is rooted in reality and not in wishful thinking. Investment Falls Off A Cliff (WSJ) U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery. Half of the nation's 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls. Sahara Feeling Heat Over Bond Sales (WSJ) India's Sahara Group has built an empire by offering financial products to tens of millions of rural Indians who typically stashed their meager savings under the mattress. Business was so good that Sahara, using fees and investments from its customers' deposits, grew into a multi-billion-dollar conglomerate that includes a 10,000-acre township, New York's Plaza Hotel building and a Formula-1 racing team. Today, the company's practices are coming under intense public scrutiny, the product of years of tussle between Sahara and regulators who worry India's informal financial sector has grown dangerously fast and without oversight. Many savers who scraped together money to put with Sahara now fear they could face lengthy delays in getting their money back. Opportunists Stockpile Twinkies for Big Payday (AP) Hours after the maker of Twinkies, Hostess Brands, announced its plans to close forever, people flocked to stores to fill their shopping baskets with boxes of Twinkies, which are cream-filled sponge cakes, and other snacks made by the company — Ding Dongs, Ho Hos and Zingers. Late Friday and Saturday, the opportunists took to the Web sites eBay and Craigslist. They began marketing their hoards to whimsical collectors and junk-food lovers for hundreds, in some cases thousands, of dollars. That is a fat profit margin, considering the retail price for a box of 10 Twinkies is about $5. Bond Investor Takes Big Punt On Ireland (FT) Franklin Templeton funds increased their holdings of Irish bonds by more than a third to at least €8.4 billion in the third quarter. This means that the San Francisco-based US asset manager now controls almost a 10th of Ireland’s entire government bond market. Most of the bonds have been snapped up by funds controlled by Michael Hasenstab, co-director of Franklin Templeton’s international bond department, and particularly by the $64 billion Templeton Global Bond Fund he manages. Kim Kardashian Weighs In On The Israeli-Palestinian Conflict (HP) Kim Kardashian is apparently neutral when it comes to the current Israeli-Palestinian conflict. The reality star first tweeted support for Israel: "Praying for everyone in Israel," she wrote. And after five minutes of backlash, the star tweeted again: "And praying for everyone in Palestine and across the world!" she wrote. Kardashian is clearly the last person anyone wanted to hear from regarding the issue, and the 32-year-old was immediately hit with more backlash over the tweets -- including death threats. The star has since deleted the tweets and explained her reasons for tweeting about the conflict in a blog post on her website. Shadow Banking Grows to $67 Trillion Industry, Regulators Say (Bloomberg) The shadow banking industry has grown to about $67 trillion, $6 trillion bigger than previously thought, leading global regulators to seek more oversight of financial transactions that fall outside traditional oversight. The size of the shadow banking system, which includes the activities of money market funds, monoline insurers and off- balance sheet investment vehicles, “can create systemic risks” and “amplify market reactions when market liquidity is scarce,” the Financial Stability Board said in a report, which utilized more data than last year’s probe into the sector. “Appropriate monitoring and regulatory frameworks for the shadow banking system needs to be in place to mitigate the build-up of risks,” the FSB said in the report published on its website. Lehman Trustee Ends Citigroup Fight (WSJ) The trustee unwinding Lehman Brothers Inc. reached an agreement with Citigroup that ends a long-running legal fight over more than $1 billion that Lehman deposited at the bank the week it filed for bankruptcy protection. The deal puts $435 million in the coffers of Lehman's brokerage unit, LBI, for distribution to customers and other creditors, according to the settlement filed Friday night in U.S. Bankruptcy Court in Manhattan. Europe Seeks More Taxes From US Multinationals (NYT) Google, Amazon, Starbucks and other American companies facing tax scrutiny say they are doing nothing wrong. They use complex accounting strategies to exploit national differences across Europe in corporate tax rates, which range from less than 10 percent to more than 30 percent, and loopholes that can reduce their effective European tax levies to almost nothing. Google, for example, records most of its international revenue at its European headquarters in Ireland, where the corporate tax rate is 12.5 percent. Across Europe, customers who buy advertising, Google’s primary source of revenue, sign contracts with the company’s subsidiary in Ireland, rather than with local branches. Google ends up paying Irish taxes on only a fraction of the billions of euros that course through its Dublin office. That is because the company uses a variety of methods, including royalty payments to a unit in Bermuda, to reduce further the amount of money exposed to tax liability. So, while Google told the Securities and Exchange Commission that it generated more than $4 billion in sales in Britain last year, it reported revenue of only £396 million, or $629 million, in itsofficial filings there. Central New York district attorney Marc Suben admits to '70s porn star past (NYDN) Prior to this year’s election, Marc Suben denied appearing in 1970s skin flicks, telling reporters he was the subject of a campaign by political rivals who wanted to sully his reputation. But Friday, CNYCentral.com published a story highlighting a YouTube video comparing Suben with porn actor Gus Thomas, whose IMDB film credits include “Deep Throat Part 2” and “Doctor’s Teenage Dilemma.” Suben swiftly called a press conference and “humbly” apologized to those he had deceived. He admitted to using “bad judgment” both by appearing in adult films in his youth and by lying about them as a public official. He was first elected in 2008. “I was shocked and embarrassed to be confronted with this so many years later,” said Suben, who has also served as a judge. “I was embarrassed for my family and friends who stood by me. I also denied my actions to my family, my friends and my staff.” He declined to say whether he plans to resign.

Opening Bell: 02.25.13

Current Employees Star In S&P Suit (WSJ) As ammunition against Standard & Poor's Ratings Services, the Justice Department packed its fraud lawsuit with vivid details about more than 25 employees who allegedly put triple-A ratings on shaky bundles of subprime mortgages—or dithered on downgrading the securities as the housing market was collapsing. David Tesher, an S&P managing director in charge of one of the firm's two collateralized-debt-obligation groups, let analysts who reported to him put the highest possible ratings on deals S&P "knew did not accurately reflect the true credit risks," the U.S. government alleged in the suit filed Feb. 4. When a different group of analysts warned that more and more borrowers were falling behind on their payments, Mr. Tesher didn't tell his analysts, federal prosecutors claim. They put his name in the 128-page lawsuit a total of 59 times. Fresh Front In Budget Battle (WSJ) A White House official said the administration wouldn't go along with such a plan to extend the lower spending levels. And Democrats are insisting that the House GOP bill also give new latitude to domestic agencies as well as the Pentagon. But an aide to Senate Democratic leaders said such a measure might be politically difficult for the lawmakers to oppose, lest they bear the blame for shutting down the government. "There's an emerging consensus that it would be a difficult battle to have," said the Senate leadership aide. "I don't think we could force a shutdown." Dimon: Let’s put ‘London Whale’ on ice (NYP) That’s the message Jamie Dimon hopes to deliver at JPMorgan Chase’s annual investor day in New York tomorrow, some nine months after the infamous “London Whale” blew a $6 billion hole in the bank’s balance sheet. Dimon will stress that the nation’s biggest bank has been growing its business and taking market share in a bid to convince investors and analysts that there will be no further whale sightings. JPMorgan, for instance, has boosted its private banker ranks to better cater to wealthy investors, adding some 650 bankers since 2008, according to people familiar with the matter. Dimon is also expected to tout the bank’s ability to ring up record profits in good times and bad. JPMorgan reaped $21.3 billion in profits in 2012, a record year despite rocky markets that shook rivals here and abroad. Knight Capital to Sell Credit Brokerage Unit to Stifel: Report (Reuters) Knight Capital Group, which recently agreed to be bought for $1.4 billion by Getco Holding, has struck a deal to sell its credit-brokerage unit to Stifel Financial, a person familiar with the matter told Reuters. The terms of the deal were not known. But Stifel will be picking up investment-grade, high-yield, asset-backed and mortgage-backed debt brokers in the U.S. and Europe through the deal the source said. Foreign Money Is Revisiting Greece (WSJ) A steady trickle of foreign money pumped €109 million ($143.8 million) into Greek stocks in the last six months of 2012, followed by an additional €27.6 million in January, according to the Athens Stock Exchange. That money helped lift Greece's major stock index 33.4% last year, making it—bizarrely—the best-performing stock market in the European Union. It is up an additional 10.51% this year, to 1003.32, although it remains well off its high of 6355 reached more than 12 years ago. IKEA Meatballs Pulled After Horse-Meat Traces Found (WSJ) IKEA on Monday became the latest company to be drawn into Europe's snowballing horse-meat scandal, as the Swedish furniture giant said it has recalled a batch of meatballs that had been distributed to 13 European countries. The move comes after Czech food inspectors found traces of horse meat in IKEA's meatballs. The company also said it is withdrawing meatball products from sale in Sweden. Japan Picks BOJ Critic to Be Its Next Chief (WSJ) Prime Minister Shinzo Abe plans to nominate former finance-ministry official Haruhiko Kuroda, 68 years old, as the next Bank of Japan governor, according to government officials. Mr. Kuroda, currently chief of the Asian Development Bank, ran the Japanese finance ministry's currency policy for four years in the early 2000s. There, among other things, he oversaw an extended effort to drive down the yen's value in order to make Japanese exports more affordable on the world market. Barnes & Noble Chairman to Bid for Company's Retail Assets (Reuters) Barnes & Noble Chairman Leonard Riggio has told the board he plans to buy all the retail assets of the company. The retail business includes, among other things, Barnes & Noble Booksellers and barnesandnoble.com but excludes Nook Media, Riggio said in a regulatory filing on Monday. Mets Expect To Lose Money And Fans This Year (NYP) The team is expecting to lose more than $10 million this year, after bleeding red the past two seasons, while attendance is projected to fall for a fifth straight year. Monti Gets Investors’ Approval as Bonds Cast Doubt on Berlusconi (Bloomberg) Monti “is the first leader to make it clear you have to look out for future generations and not just tomorrow’s vote,” said Fabrizio Fiorini, chief investment officer at Aletti Gestielle SGR SpA. “This concept of looking out for future generations is absolutely new for Italy.” Angry moms condemn Geico’s cellphone app commercial they claim promotes bestiality (NYDN) One Million Moms wants auto insurance firm Geico to pull its latest TV campaign in which a woman appears to be flirting with a pig. The conservative Christian group that monitors children’s programming issued a statement to condemn the clip. “The Geico marketing team may have thought this would be humorous, but it is disgusting to see how the company takes lightly the act of bestiality,” One Million Moms said in a statement. The press release, which urges members to email their disgust to the firm, added that the advert was “repulsive” and “unnecessary.” It was also a “horrible commercial for families to see,” the group said. The commercial starts with Maxwell the Geico pig and the woman in a parked car on what appears to be a lover’s lane. Not knowing the car has broken down, the woman seems keen to make out with the pig. But he is uninterested and instead shows her the Geico app and the game Fruit Ninjas on his cellphone. Geico has not commented on the complaint.

biden

Opening Bell: 7.17.20

What do EU leaders want less: a deal or another meeting about a deal?; Wirecard hits banks—and BaFin; Wall Street making peace with President Biden; and more!

Opening Bell: 04.03.13

Barclays High-Pay Culture Brought Disrepute: Report (WSJ) Barclays PLC suffered from "a lack of self-awareness" in recent years as a culture of high pay and short-term incentives brought the bank into disrepute, according to an independent report by lawyer and investment banker Anthony Salz. The Salz Review, which was commissioned by Barclays' former chairman after the bank admitted to trying to rig interbank interest rates last summer, describes how in about 10 years the lender expanded to become a disparate set of businesses, each with its own culture. "The result of this growth was that Barclays became complex to manage," the report published Wednesday said. "Despite some attempts to establish group-wide values, the culture that emerged tended to favor transactions over relationships, the short term over sustainability, and financial over other business purposes." The 235-page report—which cost Barclays about £17 million ($25.7 million) to have produced—recommended a series of reforms aimed at trying to foster a common sense of purpose across the bank. To this end, Barclays' board must play a more active role in overseeing the business and Barclays' human resources department must be given more power to stand up on issues such as pay, the report said. Ex-Goldman Sachs Trader Taylor Said to Surrender to FBI (Bloomberg) Former Goldman Sachs Group Inc. traderMatthew Taylor planned to surrender today to the Federal Bureau of Investigation, a person familiar with the matter said. Taylor was accused Nov. 8 by the U.S. Commodity Futures Trading Commission of concealing an $8.3 billion position in 2007 that caused New York-based Goldman Sachs to lose $118 million. Morgan Stanley hired Taylor in March 2008, less than three months after Goldman Sachs disclosed in a public filing that he had been fired for building an “inappropriately large” proprietary trading position. Cyprus Bailout Details Emerge After IMF Deal (WSJ) The IMF statement set out the tough terms the tiny nation of 800,000 has to meet to get the bailout, calling the task ahead "challenging." Cyprus, an economy of roughly €17 billion in annual output, needs to push through cuts and savings worth 4.5% of gross domestic product by 2018 to hit a primary-surplus target of 4% of GDP outlined in the bailout deal, the IMF statement said. These cuts will come on top of savings worth 5% of GDP the government is already implementing through to 2015. An extra 2% of GDP in extra revenue will come from an increase in the country's corporate tax from 10% to 12.5% and an increase in the tax on interest income from 15% to 30%. The country's corporate-tax rate will remain among the lowest in Europe, on an equal footing with Ireland's, and will allow Cyprus to continue to use its tax regime to attract businesses, but the increase in withholding tax will make it substantially less attractive as a place for individuals to leave their savings. Cyprus Leader Invites Family Firm Probe (FT) Cyprus president Nicos Anastasiades has urged judges investigating the country's banking disaster to examine transactions handled by his family law firm as "a priority" in a bid to defuse public anger over last-minute transfers by well-connected Cypriots, Russians and Ukrainians who thereby avoided a "haircut" on their uninsured deposits. The move followed questions over whether a company managed by the president's son-in-law made use of inside information to transfer more than 20 million euros out of Laiki Bank days before its collapse. Marc Lasry In French Follies (NYP) Lasry, the CEO and co-founder of Avenue Capital, is on his way to getting a plum assignment as the US ambassador to France as a reward for his many years as a big Democratic fundraiser. But the Moroccan-born, French-speaking American could encounter some uncomfortable moments when he lands in Paris, given his views on the land of fine wine, crusty baguettes — and European socialism. “We don’t invest in France,” he said at a New York hedge-fund conference sponsored by French bank BNP in June 2010, even apologizing to his hosts as he made the comment. Lasry, who is a bankruptcy lawyer by training, loves to chide other countries for their creditor-unfriendly ways. His $11.7 billion distressed debt fund buys up beaten-down credits of companies headed towards bankruptcy, with the payout determined by their ranking in the process. That can be dicey in countries like France, he explained at the BNP conference, as “the legal system is very much tilted towards helping unions and workers.” As a result, he said, “you might find your claim disallowed.” 1,000 pot plants seized in Queens in warehouse raid (NYDN) A massive drug operation went up in smoke Tuesday when law enforcement officials raided an indoor marijuana farm in Queens. Authorities seized more than 1,000 pot plants - along with grow lights and other gear - from the 44th Rd. warehouse in Long Island City just after 3 p.m. , police sources said. Officials from the NYPD, state police and the federal Drug Enforcement Agency also rounded up five suspects in the sweep. New York-for-Buenos Aires Swap Theory Spreads: Argentina Credit (Bloomberg) Argentina’s refusal to improve its offer to holders of defaulted debt suing for full payment in the U.S. is deepening speculation that the nation will sever ties with the overseas bond market. The proposal submitted on March 29 mimics the terms of Argentina’s 2005 and 2010 debt exchanges, a move that could lead to a default on the restructured notes unless the country removes them from U.S. jurisdiction. BofA Chief Moynihan Said to Summon Managers for Revenue Push (Bloomberg) Bank of America Corp. Chief Executive Officer Brian T. Moynihan has summoned more than 100 of his regional leaders to a private meeting today where they’ll be pushed to boost the lender’s flagging revenue, said two people with direct knowledge of the project. Managers at the two-day event in Chicago will be judged on how much progress they’ve made in helping to sell more products to the 53 million customers of the second-biggest U.S. lender, said the people, who asked for anonymity because Moynihan’s plan hasn’t been made public. Revenue has dropped every year of Moynihan’s three-year tenure as he sold assets, repaired the firm’s balance sheet and settled more than $40 billion in claims tied to defective mortgages. Private Sector Adds 158,000 Jobs (WSJ) Economists surveyed by Dow Jones Newswires expected ADP to report a gain of 192,000 private jobs. However, the February job gain was revised up to 237,000 from 198,000 reported a month ago. SEC Embraces Social Media (WSJ) In a ruling that portends changes to how companies communicate with investors, the Securities and Exchange Commission said Tuesday that postings on sites such as Facebook and Twitter are just as good as news releases and company websites as long as the companies have told investors which outlets they intend to use. Gray seal pup saved from death on Montauk beach now recovering (NYDN) The three-month-old seal, underweight at 40 pounds, is now resting in one of the foundation's rehabilitation tanks at the Atlantic Marine World aquarium in Riverhead. "She feels very sassy in her tank and doesn't appreciate anything we are doing for her," laughed Kimberly Durham, director of the rescue program, "which is a good sign. A nasty seal is a good sign that she is getting better because they are wild animals.