Bank of America shares jump after lender tops analysts’ estimates on better-than-expected credit [CNBC]
The bank said that profit declined 12% to $7.07 billion, or 80 cents per share, exceeding the 75 cent estimate of analysts surveyed by Refinitiv. Revenue climbed 1.8% to $23.33 billion, roughly matching expectations…. The bank posted a mere $30 million provision for credit losses, which is tied to management’s view of potential future losses, far less than the $468 million expected by analysts. It also released $362 million in reserves the bank had previously set aside for expected defaults.
Gary Gensler Reflects on His First Year as S.E.C. Chair [DealBook]
“A year in, there are times that I still pinch myself and think, Wow, I’ve been asked to do this job,” Mr. Gensler said, reflecting on what he has accomplished so far and explaining his regulatory agenda for the years ahead…. “Congress mandated that we have more disclosure around short selling 12 years ago in Dodd-Frank, and my predecessors had busy schedules and didn’t get to it,” Mr. Gensler said. “So we’re doing that….”
Mr. Gensler’s recurring theme, the story he is sticking to — fairness through information parity — is a principle that he believes applies to everything, including cryptocurrency…. “This is what F.D.R. and Congress addressed some 90 years ago,” he insisted. “You want to raise money from the public and the public wants to take risk, that’s fine, as long as you register with the S.E.C. and you give them full and fair disclosure and don’t lie to them.”
Piano Maker Steinway Plans IPO on New York Stock Exchange [WSJ]
The New York-based company hasn’t been listed on a stock exchange since 2013, when it was bought for about $512 million and taken private by Paulson & Co., the hedge fund founded by billionaire John Paulson…. This time it plans to use the stock symbol STWY, a departure from last time around when it used LVB as a tribute to Ludwig van Beethoven.
A Russian Default Is Looming. A Bitter Fight Is Likely to Follow. [NYT]
“This points to the squishiness and patchwork nature of sovereign debt markets,” said Tim Samples, a legal studies professor at the University of Georgia’s Terry College of Business and an expert on sovereign debt. “I think this is set to be convoluted and disputed for a variety of reasons….”
“If Russia doesn't pay on time, doesn't pay in the currency in the contract, that’s a default — it’s crystal clear,” said Timothy Ash, a senior sovereign strategist at BlueBay Asset Management. “For all intents and purposes, Russia is already in default….”
Ultimately, the market will determine whether Russia is worthy of credit, and its actions in Ukraine and future sanctions will determine the fate of its economy.
Activision tells regulators it will cooperate with insider trading investigation. [NYT]
The company said it had received a request for information from the Securities and Exchange Commission, which enforces securities rules, and a grand jury subpoena from the Justice Department. The requests appeared to relate to investigations into whether investors who knew Bobby Kotick, Activision’s chief executive, engaged in insider trading of Activision stock before the Microsoft deal was made public.
AC Milan is the target of sale talks with Bahrain-based Investcorp [Reuters]
One source close to the talks told Reuters the deal to buy the seven-times European champions from current owner Elliott Management Corporation was near to completion.
A potential valuation for the club would be in the region of 1 billion euros ($1.08 billion) including debt, the sources said.