Opening Bell: 4.9.21

SEC tells Chamath to shut up; Credit Suisse closes barn doors; SoftBank and Salesforce; I like it, I’m not gonna crack; and more!

Author:
Dealbreaker
Publish date:
Apr 9, 2021

Tomihahndorf at German Wikipedia, Public domain, via Wikimedia Commons

SEC tells Chamath to shut up; Credit Suisse closes barn doors; SoftBank and Salesforce; I like it, I’m not gonna crack; and more!

SEC’s Coates tells investors to ignore billionaire SPAC investor’s legal advice [MarketWatch]
“Some — but far from all — practitioners and commentators have claimed that an advantage of SPACs over traditional IPOs is lesser securities-law liability exposure for targets and the public company itself,” Coates said, citing comments made by Chamath Palihapitiya, the billionaire CEO of the investment firm Social Capital and chairman of Virgin Galactic Holdings Inc…. Coates warned that this advice could be misleading, noting that the safe-harbor provision doesn’t protect any company from enforcement actions brought by the SEC, but only from private litigation. Furthermore, the law doesn’t protect companies that make false or misleading statements, such as giving an incomplete set of projections of company performance.

Credit Suisse Tightens Hedge Fund Limits After Archegos Hit [Bloomberg]
Credit Suisse has been calling clients to change margin requirements in swap agreements so they match the more restrictive terms of its prime-brokerage contracts, people with direct knowledge of the matter said. Specifically, Credit Suisse is shifting from static margining to dynamic margining, which may force clients to post more collateral and could reduce the profitability of some trades.

SoftBank to Invest $500 Million in Mortgage Startup Better [WSJ]
The investment values parent Better Holdco Inc. at about $6 billion, according to people familiar with the matter. SoftBank is buying shares from the company’s existing investors at a sharp jump from the $4 billion at which it raised money in November. Better is expected to go public later this year, some of the people said.

Text-Messaging Platform Community Raises $40 Million From Salesforce [WSJ]
Businesses and celebrities using the platform include the National Hockey League’s Pittsburgh Penguins, People magazine, WW (formerly Weight Watchers), actress Kerry Washington and star football quarterback Tom Brady.
Community shares the names, ages and locations of followers with its clients, which typically pay a monthly fee to use the platform based on usage, follower counts and other factors. Clients can then send messages broadly to all followers; to subgroups organized by attributes like age, location or interests; or to individuals.

Chief of SEC Whistleblower Office, Jane Norberg, Leaving Agency This Month [WSJ]
Emily Pasquinelli, the whistleblower office’s deputy chief, will take over as the unit’s acting chief…. The leadership change comes as the SEC’s bounty program has received a record number of tips during the pandemic and following the agency’s adoption of controversial amendments to its whistleblower-award rules….
Some lawyers representing whistleblowers expect the transition to be seamless. “The office has been left in very capable hands,” said Erika Kelton, a partner at law firm Phillips & Cohen LLP who represents whistleblowers.

CME Seeks to Tap Electric-Car Demand With Lithium Futures [WSJ]
The contract will be for lithium hydroxide delivered to China, South Korea and Japan, where most batteries globally are produced, CME said Thursday. If the futures contract is approved by regulators, it will begin trading on May 3…. Lithium’s role in powering rechargeable batteries has made it a strategically important commodity as governments seek to limit carbon emissions. The U.S. is racing to catch up with China in mining and refining the metal to support its auto industry and tackle climate change.

GameStop's strong stock performance triggered board director's exit [Reuters]
Hestia Capital Partners LP managing director Kurt Wolf…. resigned his directorship this week because his investors fretted the bet on the company, which scored a paper gain of 3,500%, had become too large and risky, three people familiar with the matter said on Thursday…. Hestia currently owns 318,600 GameStop shares valued at roughly $53.8 million. It oversaw $75.6 million in assets as of the end of March, with GameStop being its single largest investment.

Opening Bell

A fight at Neiman Marcus; Credit Suisse, SoftBank slip up again; Izzy Englander on the prowl; Mike Novogratz still sees $20K bitcoin; and more!

Opening Bell

Get out your Fedspeak dictionaries; the kids take over the FTC; Morgan takes from Credit Suisse, Credit Suisse takes from Goldman; and more!

Opening Bell

Behind closed doors in Tarrytown; $240 oil; “tech wreck;” see cyber attacks, say something; and more!

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

Opening Bell

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

Opening Bell

Economy rebounds; fear, too; Apollo, Credit Suisse fall; and more!

Opening Bell

Bracing for Storm, U.S. Stock Markets to Close (Dealbook) All United States stock and options markets will close on Monday as Hurricane Sandy approaches, reversing course as Wall Street braces for the storm to barrel through the heart of the country’s financial center. The decision, made late Sunday night, leaves the American stock markets closed for weather conditions for the first time in nearly three decades. The New York Stock Exchange had previously planned on closing only its physical trading floor, while allowing for trading on its Arca electronic exchange. It has now decided to halt all trading. The Nasdaq and BATS stock markets, which are built on electronic trading, also decided to close. The CME Group, which operates the Nymex commodities exchange, said earlier on Sunday that it would close its physical trading floor on Monday, though trading would continue on its electronic trading platforms. The Securities Industry and Financial Markets Association, or Sifma, said in an e-mailed statement that it was calling for bond trading, which is all done electronically, to close at noon Monday, though it left the final decision to member firms. The N.Y.S.E. last closed trading for weather reasons in 1985, when Hurricane Gloria lashed the metropolitan area. Markets Go Dark Ahead Of Storm (WSJ) Customers had complained to the exchanges and to the Securities and Exchange Commission that partial closures of the market would be too complicated, according to people with knowledge of the matter. US Stock Markets To Possibly Stay Closed Through Tuesday (Reuters) In a statement, the company said that "the dangerous conditions developing as a result of Hurricane Sandy will make it extremely difficult to ensure the safety of our people and communities, and safety must be our first priority." Citigroup, Goldman Sachs Shut Some NYC Offices for Storm (Bloomberg) Citigroup and and Goldman Sachs are among Wall Street firms planning to shift operations to other cities and have staff work from home as Hurricane Sandy’s arrival in New York forces evacuations. Employees at Citigroup, the third-biggest U.S. bank by assets, won’t be able to enter Lower Manhattan offices on Greenwich Street and Wall Street, which include the main trading floor, according to a memo sent to workers and confirmed by Shannon Bell, a spokeswoman. Goldman Sachs, whose corporate headquarters at 200 West St. is also located in an evacuation zone, told the staff in an internal memo that most of them will work from home...European-based firms including Deutsche Bank AG, Credit Suisse Group AG and UBS AG, which have offices outside of the mandatory evacuation zone, are making arrangements to provide transportation and hotels for workers. Christie: "Don't Be Stupid" (AP) A year after telling New Jersey residents to "Get the hell off the beach" as Hurricane Irene approached, Gov. Chris Christie has a new message for people on the coastline: "Don't be stupid — get out," Christie said Sunday afternoon at a news conference, where he updated residents on the status of the huge storm bearing down on the state. Stock Pickers Game The Fiscal Cliff (WSJ) A number of companies are seeking to get ahead of the tax increases by paying out big special dividends before Dec. 31. In the past two weeks, at least four Standard & Poor's 500 companies have announced special payouts, including a $750 million payout by casino operator Wynn Resorts Ltd., a $1.1 billion dividend from hospital operator HCA Holdings Inc. and a $1.6 billion dividend from LyondellBasell Industries NV, a New York-listed chemicals group. The game for investors is to figure out which companies could be next. Jay Wong, a Los Angeles-based portfolio manager for Payden & Rydel, a money manager with $75 billion under management, is on high alert for potential payouts. He increased his stake in Wynn earlier this month in anticipation of a special dividend and is looking for others. He declined to be specific, citing a desire to not give his trades away. Occupy Wall Street's Stacey Hessler Splits From Husband (NYP, earlier) The filing lists Curtiss’ occupation as banker and says he earns $65,000 a year. Her job is listed in court papers as “protester” and her employer as “Occupy Wall Street.” Annual salary: $0. Divorce papers cite “irreconcilable differences” for the split, saying the 19-year marriage “is irretrievably broken.” One OWS protester who knows her says that Stacey’s devotion to the movement caused the divorce but that she was unfazed by the breakup. “She didn’t seem sad about any of it,” the source said. “It was just so matter-of-fact.” As recently as last month, Stacey, 39, was sleeping in front of a Wells Fargo bank branch in the Financial District near Zuccotti Park, but it appears she scrambled back home to suburban DeLand to finalize the divorce. Wearing her professional-protester uniform — a bandana and patchwork clothes — she refused to say what her plans were or when she’d be leaving the house. But she did respond when a Post reporter asked about a YouTube video showing her making out with another protester during an Occupy “Kiss In” on Valentine’s Day. “I actually made out with four guys,” she said, laughing wildly. Governments to debate 50 billion euro cut to EU budget (Reuters) The cut will be proposed in the latest EU negotiating text on the bloc's spending plan for 2014-2020, but is unlikely to be deep enough to satisfy Britain, Germany, France and other net budget contributors. They want strict limits on EU spending to reflect the austerity imposed by national governments to reduce debt, and called for cuts of 100-200 billion euros to the total proposed by the EU's executive, the European Commission. The proposal is also likely to anger Poland and other former communist EU countries who are the major beneficiaries of EU funds, and oppose any cuts to the Commission's blueprint which they argue is vital for their future economic growth. "As I see it now, the reduction from the Commission proposal will be 50 billion euros plus. That will be the basis for negotiations," said the source, who spoke on condition of anonymity. Greek Journalist Held Over List of Swiss-Account Holders (Bloomberg) Kostas Vaxevanis, editor of the Greek magazine Hot Doc, was arrested in Athens today, according to a message posted on his Twitter account at 11 a.m. local time. An arrest warrant was issued yesterday after the magazine published what’s been dubbed the “Lagarde list,” an electronic file given to Greece in 2010 by then-French Finance Minister Christine Lagarde of about 2,000 Greeks with Swiss accounts. Insurers Prepare For Impact Of Hurricane Sandy (Reuters) Had Sandy hit in 2011, it may have been more of a problem for the insurance industry, which dealt with record-breaking losses around the world last year, mostly from U.S. tornadoes and Asia-Pacific earthquakes. But in 2012, most insurers' disaster losses are down substantially, leaving them with more capacity to absorb the billions of dollars in costs some expect from Hurricane Sandy. "In terms of losses, I certainly don't think it's going to be the largest loss of the last 100 years," Tom Larsen, senior vice president of Eqecat, said in an interview late Friday. "It's not an end-of-days scenario." SEC Weighs Bringing Back Fractions in Stock Prices (WSJ) The move would at least partly undo an 11-year-old rule that replaced fractions of a dollar in stock prices, like 1/8 and 1/16, with pennies. The idea of that change was to trim investors' trading costs: One-cent increments can lead to narrower gaps between the prices at which brokers buy and sell shares—potentially reducing their opportunity to shave off profits. Those championing the fraction's return say it would spur securities firms to buy and sell more shares of some companies by making it more profitable for them to do so. Opponents say fractions would increase trading costs for investors with little or no benefit to companies. UBS, RBS Traders Suspended as Rates Probe Goes Beyond Libor (Bloomberg) UBS and Royal Bank of Scotland suspended more than three traders in Singapore as regulators investigating Libor-rigging turn their attention to the rates used to set prices on foreign exchange derivatives. At least two foreign-exchange traders at UBS, Switzerland’s largest bank, have been put on leave as part of an internal probe into the manipulation of non-deliverable forwards, a derivative traders use to speculate on the movement of currencies that are subject to domestic foreign exchange restrictions, according to a person with direct knowledge of the operation. Edinburgh-based RBS also put Ken Choy, a director in its emerging markets foreign exchange trading unit, on leave, a person briefed on the matter said on Oct. 26. Women who knew 'cannibal cop' worried they were on his 'cook list' (NYP) “Freaked-out” female acquaintances of would-be cannibal cop Gilberto “Gil” Valle yesterday wondered whether they were on his alleged list of 100 ladies to kidnap, rape, torture, cook — and eat. “I was so shaken when I found out it was him,” said Beverly Seiger, who knew Valle, 28, from the Forest Hills, Queens, park he visited nightly with his wife and baby daughter. “I used to walk his dog. I’ve been to his house many times. He’s been to my house,” she said of Valle, whom federal prosecutors accuse of plotting with three fiendish pals to kidnap, cook and consume scores of females. “I don’t want to be on his list!” Seiger said. “I’m so thin, he would use me as toothpicks. “The women in this neighborhood now are freaked out,” she said. Another female resident asked a reporter, “Are we on this list? “I fit in an oven,” she said, referring to Valle’s alleged boasting online of having an oven “big enough to fit one of these girls if I folded their legs.”