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KKR Co-CEOs Henry Kravis and George Roberts Step Down [WSJ]
Joe Bae and Scott Nuttall, who have served as the firm’s co-presidents since July 2017, will become co-CEOs, effective immediately, KKR said Monday, unveiling a plan that has been months in the making…. KKR also announced a corporate reorganization aimed at helping the firm transition to a “one-share, one-vote” structure from the current dual-class setup that gives the two founders extra influence…. The two co-founders have led KKR as it developed into a global investment firm with $429 billion in assets across numerous business lines at the end of the second quarter. In February, the firm closed a deal to buy insurance company Global Atlantic Financial Group Ltd., giving it $90 billion more to manage.

Millennium memo warns staff to log personal crypto trades with compliance [FN]
While one of the people said they thought the memo was a new shift in policy, the other said the fund had required staff to disclose such holdings for the last three years and that the September note was intended as a reminder to employees to alert compliance teams to personal holdings in cryptocurrencies…. Millennium, headed by Israel Englander, is among hedge funds piling into crypto trusts, futures, and ETFs, and is hiring staff to build out its crypto operations….

The Pandemic’s Over for Big Banks. Now Comes the Hard Part. [WSJ]
Analysts expect banks in the S&P 500 to report aggregate profits of about $31 billion, up about 20% from a year ago but down 20% from the second quarter, according to FactSet. Profits are expected to hold steady in the fourth quarter…. Those pandemic blips concealed lackluster growth in banks’ lending business and temporarily swelled trading revenue. Analysts are trying to figure out what the new normal looks like….
"Though loan growth has been slow to recover, we believe that we have reached the inflection point,” Goldman Sachs bank analysts wrote.

SEC Digs Deeper Into Companies’ EPS Manipulation [WSJ]
“Three cases is not a huge amount, but it does show that they’re focused on it,” said David Rosenfeld, associate law professor at Northern Illinois University and former co-head of enforcement for the SEC’s New York office. “It takes a fair amount of time to unravel cases involving accounting issues….”
“Many investors suspect EPS manipulation is more common than the cases suggest,” said Amy Borrus, executive director of the Council of Institutional Investors, which represents pension funds and other large money managers.

SEC Investigating Archegos for Potential Market Manipulation [Bloomberg]
Authorities are reviewing whether Archegos bought multiple stakes in the same companies across several banks in an effort to avoid triggering public disclosure rules…. SEC Chairman Gary Gensler told Congress in May that more stringent disclosure laws may be warranted for investment firms after the Archegos debacle, and he later signaled plans to make more industry data publicly available.

Three U.S.-based experts receive economics Nobel Prize [AP via NBC News]
Canadian-born David Card of the University of California, Berkeley, was awarded half of the prize for his research on how minimum wage, immigration and education affect the labor market.
The other half was shared by Joshua Angrist from the Massachusetts Institute of Technology and Dutch-born Guido Imbens from Stanford University for their framework for studying issues that can’t rely on traditional scientific methods.

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LesMoonves

Opening Bell: 9.10.18

Moonves forced out; Ma stepping down; Crypto crashing hard; Urine therapy is in; and more!

Photo: Getty Images.

Opening Bell: 7.8.21

No more Didis; Archegos exodus; SEC stills Skybridge scheme; Commerzbank should have waited to lay off Wirecard vet; and more!

By Luis Villa del Campo from Madrid, Spain (Times Square - NASDAQ) [CC BY 2.0], via Wikimedia Commons

Opening Bell: 3.11.22

Chinese companies on the chopping block; recession risk rises; crypto-401(k)s checked; Elon Musk is homeless; and more!

Izzy Englander

Opening Bell: 5.18.21

Archegos escapees; Elliott sharpens its knives; failed Cabinet nominee to be failed money manager; and more!

Opening Bell: 04.04.13

Bank of Japan Launches Easing Campaign (WSJ) At his inaugural policy board meeting Thursday, Haruhiko Kuroda convinced the nine-member panel to agree to a major expansion of government bond purchases, including buying longer-term debt, which is designed to drive down longer-term rates. The BOJ also broke free from some self-imposed limits that the previous leadership under Masaaki Shirakawa adhered to. "Our stance is to take all the policy measures imaginable at this point to achieve the 2% price stability target in two years," Mr. Kuroda said at a news conference following the two-day meeting, one of the most closely watched in the central bank's recent history. ECB holds fire on rates (FT) The European Central Bank kept its main refinancing rate on hold at 0.75 per cent on Thursday, hours after the Bank of Japan stunned investors with a dramatic easing plan that will see it double its monetary base over two years. ... The ECB has been reluctant to cut its own interest rates further, which might involve moving into negative territory on its 0 per cent deposit rate, and would face difficulty adopting a quantitative easing programme itself. Yet inflation has been falling below the bank’s 2 per cent target, unemployment is at a record high and the 17-nation bloc remains in recession. Weekly Jobless Claims Get Weaker as Outlook Dims (Reuters) Initial claims for state unemployment benefits increased 28,000 to a seasonally adjusted 385,000, the highest level since November, the Labor Department said on Thursday. It was the third straight week of gains in claims. Coming on the heels of data on Wednesday showing private employers added the fewest jobs in five months in March, the report implied some weakening in job growth after hiring accelerated in February. Enron's Jeff Skilling Could Get Early Release From Prison (CNBC) Former Enron CEO Jeffrey Skilling, who is serving a 24-year prison term for his role in the energy giant's epic collapse, could get out of prison early under an agreement being discussed by his attorneys and the Justice Department, CNBC has learned. Skilling, who was convicted in 2006 of conspiracy, fraud and insider trading, has served just over six years. It is not clear how much his sentence would be shortened under the deal. MF Global Trustee's Report Blasts Former CEO Corzine (WSJ) A risky business strategy, failure to improve inadequate systems, as well as "negligent conduct" by former Chief Executive Officer Jon S. Corzine and others contributed to the unraveling of MF Global Holdings Ltd., a new report said Thursday. The report, released by Louis J. Freeh, the trustee for MF Global Holdings—the parent company of the U.S. brokerage firm MF Global Inc. and other units—laid much of the blame at Mr. Corzine's feet, accusing him of implementing trading strategies with minimal oversight and exceeding board-approved limits for some European trades the company made under his stewardship. Nightclub dancer "Ruby" stands up for Berlusconi outside court (Reuters) Carrying a large sign reading "The Ruby case: Are you not interested in the truth any more?", she said she had been used as part of a deliberate campaign against Berlusconi by magistrates and sections of the press. "Today I realize that there is a war under way against him that I do not feel part of, but which has dragged me in and injures me," she said, reading a prepared statement. "I do not want to be a victim of this situation." KKR to Carlyle Target $3.6 Trillion in 401(k)s Accounts (Bloomberg) Carlyle Group LP (CG), Blackstone Group LP (BX) and KKR & Co. (KKR), which usually open their doors only to clients willing to commit at least $5 million, are lowering that threshold or offering investments directly to individuals, an effort to attract fresh cash amid lackluster fundraising. Their ultimate goal: a slice of the $3.57 trillion Americans have accumulated in their 401(k) retirement plans. ... “We definitely would like to be part of 401(k) platforms,” Michael Gaviser, a managing director responsible for individual investor products at KKR, which oversees $76 billion, said in an interview at the firm’s New York headquarters. “We think about it every day because there’s so much demand.” Tiger Cubs Report a Rough Q1 (II Alpha) The first quarter was especially tough for long-short hedge fund managers - and the biggest, most prominent Tiger Cubs were not immune. ... New York-based Tiger Global, for example, was up only 2.5 percent in March and 5 percent for the first three months. 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North Korea Warns U.S. It’s Authorized Nuclear Attack (Bloomberg) North Korea stepped up threats against the U.S, authorizing its military to conduct a potential “smaller, lighter and diversified nuclear strike” while again restricting South Korean access to a joint industrial zone. Mark Zuckerberg’s Childhood Website Was Slightly Uglier Than Facebook (DI) "The only site where a yellow eye blinks at you." Norwegian schools reschedule exams amid Bieber fever (AFP) Bieber, who is 19, sparked chaos in Oslo in May last year when dozens of teenagers chased the singer's car in the hope of following him to a free concert at a location that was only revealed at the last minute.

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Opening Bell: 11.9.21

GE-3; Hertz hauls it in; if you need your money within five years, Izzy Englander isn’t interested; and more!

paris at night

Opening Bell: 1.7.22

GameStop can’t stop; Citi readies the pinkslips; ARK-trocious; Izzy in Paris; and more!

ivanka

Opening Bell: 11.20.20

Izzy Englander will have your money for five years or not at all; a parting gift from Jay Clayton; a subpoena for Ivanka; and more!