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May 22, 2012

ADVFN III World Daily Markets Bulletin

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ADVFN III World Daily Markets Bulletin  

US Market Reports
Stocks Moving Mostly Higher Following Housing Data
Stocks have moved mostly higher over the course of morning trading on Tuesday, adding to the strong gains posted in the previous session. The major averages have climbed more firmly into positive territory after showing a lack of direction earlier in the session.
The markets have benefited from a positive reaction to a report from the National Association of Realtors showing an increase in existing home sales. Traders also continue to pick up stocks at reduced levels following the sell-off seen in recent weeks.
Banking stocks are posting particularly strong gains in late morning trading, resulting in a 2.6 percent jump by the KBW Bank Index. Financial giants JP Morgan , Citigroup (C) and Bank of America are turning in some of the sector's best performances.
Significant strength has also emerged among housing stocks, which have moved sharply higher on the heels of the existing home sales data. The Philadelphia Housing Sector Index is up by 2.5 percent, climbing further off last Friday's one-month closing low.
Brokerage, railroad, natural gas, and health insurance stocks have also shown strong moves to the upside, while some electronic storage stocks are bucking the uptrend.
The major averages have moved roughly sideways in recent trading, hovering near their highs for the session. The Dow is up 60.74 points or 0.5 percent at 12,565.21, the Nasdaq is up 17.38 points or 0.6 percent at 2,864.59 and the S&P 500 is up 11.30 points or 0.9 percent at 1,327.29.

Canadian Market Report
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TSX Jumps On Value Buying, Catch-up Play - Canadian Commentary
Canadian stocks were moving sharply higher Tuesday morning as traders resorted to bargain hunting and catch-up play as the Canadian market remained closed on Monday for Victoria Day, when most other global markets ended as gainers on hopes that European leaders will tackle the Greece crisis.
The S&P/TSX Composite Index surged 232.47 points or 2.06 percent to 11,513.11.
The Diversified Materials Index was the major gainer, adding over 5 percent. Teck Resources and First Quantum Minerals advanced close to 6 percent each. Ivanhoe Mines rose over 7 percent.
The price of gold was trading flat as the euro shed recent gains amid anxiety over the developments in the euro zone. gold for June eased $0.20 to $1,588.50 an ounce.
Among gold plays, Royal gold and Allied Nevada Gold rose around 8 percent each. Agnico-Eagle Mines gained 5 percent, while Barrick gold was adding nearly 4 percent.
After a brief pause in the previous session, the price of Crude oil was extending its southward journey Tuesday morning amid a steady U.S. dollar. Crude for June slipped $0.39 to $92.18 a barrel.
In the oil patch, Suncor Energy and ARC Resources (ARX.TO) moved up over 5 percent each.
Meanwhile, Niko Resources dived almost 10 percent after relinquishing its interest in the D4 block in India.
Kurdistan focused oil development and exploration company ShaMaran Petroleum (SNM.V) lost 5 percent after slipping into the red in first quarter, reporting net loss of $26.11 million compared to profit of $540,000 last year.
Sears Canada Inc. was extended losses, dipping over 8 percent. Last week, the stock plunged over 15 percent after Sears Holdings Corp. announced plans to spin off a minority stake in Sears Canada Inc.
In economic news from south of the border, the national Association of Realtors said existing home sales rose 3.4 percent to an annual rate of 4.62 million in April from a downwardly revised 4.47 million in March. Economists had expected sales to climb to an annual rate of 4.66 million from the 4.48 million originally reported for the previous month.
From the euro zone, U.K. annual inflation slowed more than expected in April and reached the lowest since February 2010, data from the Office for National Statistics showed. Consumer price inflation fell to 3 percent from 3.5 percent in March. The figure was slightly below the expected rate of 3.1 percent. Nonetheless, inflation continues to stay above the 2 percent target.
Meanwhile, the Organization for Economic Co-operation and Development (OECD) warned that the global economic recovery is fragile and could be derailed by the ongoing euro zone debt crisis. The Paris-based think-tank, in its latest economic outlook report, released Tuesday, downgraded the outlook for the euro area economy. It now sees a 0.1 percent contraction in economic activity in 2012, compared to 0.2 percent growth projected in the November report. The group expects euro zone to return to growth in 2013. Gross domestic product is forecast to rise 0.9 percent next year, weaker than the 1.4 percent growth projected in November.

European Market Report
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European Markets Extended Their Gains Ahead Of EU Summit
The European markets finished to the upside again Tuesday, extending their gains from the previous trading session. The markets extended their gains following the U.S. existing home sales report. Investors were optimistic ahead of the EU summit, which will be held on Wednesday.
Shares of major banks were up again, continuing to recover from the losses from the prior week of trade. Mining stocks were up on news that China has fast tracked approvals of infrastructure projects. Automakers were also among the session's positive performers.
The global economic recovery is fragile and could be derailed by the ongoing Eurozone debt crisis, the Organization for Economic Co-operation and Development (OECD) warned in its latest economic outlook report, released Tuesday.
The Paris-based think-tank downgraded the outlook for the euro area economy. It now sees a 0.1 percent contraction in economic activity in 2012, compared to 0.2 percent growth projected in the November report.
Spain's borrowing costs continued to climb higher in the latest debt auction on Tuesday as markets remain concerned over the economic prospects of the country. The Treasury sold a total EUR 2.5 billion of 3 and 6 - month bills, slightly higher than the top target of EUR 2.5 billion set for the auction.
The country raised EUR 1.50 billion from the sale of 3-month Treasury bills. The yield on the debt rose to 0.846 percent from 0.634 percent in the previous auction on April 24. The bid-to-cover ratio, which suggests demand, fell to 3.95 from 7.61.
The Euro Stoxx 50 index of eurozone bluechip stocks gained 2.13 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.83 percent.
The CAC 40 of France climbed by 1.88 percent and the DAX of Germany increased by 1.65 percent. The FTSE 100 of the U.K. finished higher by 1.87 percent and the SMI of Switzerland rose by 1.64 percent.
In Frankfurt, Bayer finished up by 0.42 percent. Nexavar, a drug co-developed by Bayer HealthCare Pharmaceuticals Inc. and U.S. drug-maker Onyx Pharmaceuticals, failed to meet its primary endpoint in a late-stage study evaluating patients with advanced relapsed or refractory non-squamous non-small cell lung cancer.
SHW closed up by 1.38 percent. Berenberg initiated the auto dealer with a "Buy" rating.
Shares of Daimler increased by 3.20 percent. BMW climbed by 2.96 percent and Volkswagen gained 2.63 percent.
Commerzbank rose by 0.77 percent and Deutsche Bank gained 2.61 percent.
In Paris, Accor rose by 6.02 percent. The company agreed to sell its U.S. budget hotel chain Motel 6 to investment firm Blackstone Group LP for $1.9 billion.
Credit Suisse upgraded its rating on Lafarge to "Neutral" from "Outperform." The stock finished higher by 5.34 percent.
Renault increased by 6.12 percent and Peugeot climbed by 3.50 percent.
Shares of Societe Generale advanced by 4.50 percent. BNP Paribas rose by 3.42 percent and Credit Agricole gained 4.56 percent.
In London, Vodafone finished higher by 4.24 percent after the telecom giant reported better than expected annual results.
Among the miners, BHP Billiton rose by 2.56 percent and Rio Tinto added 4.02 percent. Antofagasta climbed by 4.56 percent and Vedanta Resources gained 3.87 percent.
Marks & Spencer cut its sales target. The stock ended the session higher by 1.80 percent.
Barclays increased by 4.94 percent and Royal Bank of Scotland climbed by 5.53 percent. Lloyds Banking Group finished higher by 4.52 percent and HSBC gained 1.87 percent.
CRH closed up by 4.04 percent. Credit Suisse upgraded the stock to "Neutral" from "Underperform."
HomeServe plunged by 29.24 percent after the Financial Services Authority decided to investigate certain historic issues.
Sonova sank by 9.86 percent in Zurich, after the company reported annual results.
Eurozone consumer confidence unexpectedly improved in May, after declining in the previous month, preliminary data released by the European Commission showed Tuesday. The DG ECFIN flash estimate of the consumer confidence indicator came in at -19.3, up from -19.9 in April. Economists had forecast a lower score of -20.4.
U.K. annual inflation slowed more-than-expected in April relieving the central bank governor from writing an open letter to the chancellor explaining why inflation exceeded the limit. Consumer price inflation fell to 3 percent from 3.5 percent in March, data from the Office for National Statistics showed Tuesday.
The Conference Board's leading indicator for China's economic activity increased at a steady pace in April, suggesting a modest growth ahead. Meanwhile, the underlying indicators showed some degree of weakness, sending a mixed message over the prospects of the economy. The Conference Board said its leading economic indicator increased 0.8 percent from a month earlier to 232.4 in April, following a 0.8 percent rise in March and a 1 percent gain in February.
While the National Association of Realtors released a report on Tuesday showing a rebound in U.S. existing home sales in the month of April following a decrease in the previous month, sales rose by less than economists had anticipated.
NAR said existing home sales rose 3.4 percent to an annual rate of 4.62 million in April from a downwardly revised 4.47 million in March. Economists had expected sales to climb to an annual rate of 4.66 million from the 4.48 million originally reported for the previous month.

Asia Market Reports
Asian Shares End Broadly Higher Before EU Summit
Asian shares ended broadly higher on Tuesday, thanks to firmer cues from Wall Street and Europe overnight on growing hopes that European leaders may agree on new measures to address the region's debt crisis.
Investors anticipate that the May 23 EU leaders' summit will see proposals to tackle the region's worsening debt crisis after France's new finance minister and his German counterpart vowed their support for Greece to stay in the 17-nation euro and the monetary union.
In China, a government funded publication said the government will fast-track its approval of infrastructure investments to support growth, underlining a call by Premier Wen Jiabao over the weekend for greater efforts to support a transition in the world's second-largest economy.
Optimism that China and Europe will do more to support economic growth boosted Japanese shares, with the Nikkei average climbing 1.1 percent despite caution ahead of the Bank of Japan's policy-setting meeting through Wednesday. China-related stocks led the gainers, with Fanuc and Komatsu climbing 4-5 percent on speculation Beijing will announce new measures to boost economic growth.
Renesas Electronics soared 7.4 percent following reports that the chipmaker is considering restructuring measures, with plans to cut around 6,000 jobs. Exporters like Kyocera and Nikon rose about 2 percent each, as a pause in the yen's rise against the greenback and the euro alleviated concern over their earnings.
Nissan Motor climbed 4.4 percent following an announcement Monday that it seeks to expand its presence in the fast-growing Russian market. Other automakers also rebounded from recent losses, with Honda Motor gaining 1.7 percent and Toyota Motor climbing 2.5 percent.
China's Shanghai Composite index rose 1.1 percent, with cement stocks pacing the gainers in thin trading, helped by Premier Wen Jiabao's pro-growth policy comments over the weekend. Hong Kong's Hang Seng index added 0.6 percent.
Australian stocks followed Wall Street higher as pressure mounted on German Chancellor Angela Merkel to drop her opposition to bank recapitalization and commonly backed eurozone bonds. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index ended a choppy session up about 1.2 percent each.
Miners gained ground after China, Australia's largest trading partner, said it will accelerate investment in infrastructure projects to combat slowing growth. BHP Billiton rose 0.7 percent, rival Rio Tinto gained 1.7 percent and Fortescue ended up 1.5 percent.
Financials also closed on a firm note, with the big four banks adding between half a percent and 1.3 percent. Qantas advanced 2.8 percent after the airline announced a surprise corporate restructuring and management shuffle that will split its loss-making international operations from its profitable domestic business. Shares of building products maker Boral closed up 1.4 percent after the company's chief executive, Mark Selway, stepped down from the position with immediate effect.
South Korea's Kospi average rallied 1.6 percent, mainly driven by bargain hunting in battered technology stocks following steep declines last week. LG Electronics soared 7.6 percent to snap a five-day losing streak, while Samsung Electronics jumped 2.6 percent and LG Display added 1.7 percent.
New Zealand shares rose, lifting the benchmark NZX-50 index up a percent from a five-week low, after the German and French finance chiefs vowed to take all necessary steps to keep Greece in the euro currency bloc. Telecom, which has a high dividend yield of over 11 percent, jumped 3.5 percent, while Fletcher Building gained 1.8 percent and Chorus, the network company spun off from Telecom last November, added 1.6 percent. Skellerup,Freightways and NZ Refining all closed up about 4 percent higher.
Rural services firm PGG Wrightson ended unchanged after dairy exporter Fonterra Cooperative Group cut its forecast milk payout this season. Sanford, the fishing company, shed 1.2 percent after the government announced that foreign charter fishing vessels operating in New Zealand waters will have until May 2016 to comply with a new policy announced in response to the mistreatment and underpayment of crews working on some boats.
India's benchmark Sensex was last trading down a percent, as the retreat in the rupee despite RBI's latest measures to curb speculation in the currency futures market sparked fears of capital outflows.
Elsewhere, Indonesia's Jakarta Composite was up over 2 percent, Malaysia's KLSE Composite gained half a percent, Singapore's Straits Times index was up 1.2 percent and the Taiwan Weighted average advanced 1.2 percent.
U.S. stocks posted strong gains overnight benefiting from bargain hunting following recent selling, which dragged the major averages down to four-month closing lows on Friday. The Dow rose 1.1 percent, the tech-heavy Nasdaq jumped 2.5 percent and the S&P 500 gained 1.6 percent.

Commodities
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Fitch Downgrades Japan On Slow Debt Reduction Efforts
Fitch Ratings lowered Japan's credit ratings on Tuesday citing rising risks to the sovereign credit profile due to higher public debt ratios.
The long-term foreign and local currency Issuer Default Ratings were lowered to 'A+' from 'AA' and 'AA-' respectively. The Negative outlook on ratings was maintained.
"The country's fiscal consolidation plan looks leisurely relative even to other fiscally-challenged high-income countries, and implementation is subject to political risk," Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch.
The agency warned that a lack of new fiscal policy measures aimed at stabilizing public finances amid continued rises in government debt ratios could lead to a further downgrade.
Finance Minister Jun Azumi did not comment on the rating downgrade. He told reporters the government will try to pass tax reforms to improve the nation's finances.
Japan has 'Aa3' rating from Moody's and 'AA-' from S&P.
According to Fitch, gross general government debt of Japan is likely to reach 239 percent of GDP by end-2012, the highest for any Fitch-rated sovereign. Moreover, Japan's Fiscal Management Strategy envisages declines in the government debt/GDP ratio only from fiscal year 2021.
The rating agency viewed this as a slow pace of consolidation given the scale of Japan's debt. Moreover, the government's plan to hike the consumption tax to 10 percent by fiscal 2015 remains highly politically controversial.
Meanwhile, the factor that supports the rating is the ability to retain exceptional financing flexibility, it said. Further, funding flexibility is underpinned by the role of the broader public sector in channeling savings to the sovereign.
Further, Fitch considers that this private sector savings behaviour may itself contribute to the economy's persistent deflationary equilibrium. The economy experienced deflation since 2001 and real GDP growth lags high-income peers. Strong private savings contribute to the country's persistent current account surpluses.

CBS NEWS DAILY NEWS SUMMARY: Dolan: Catholic church strangled by government


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May 22, 2012 | DAILY NEWS SUMMARY

CBS NEWS TOP STORIES
Timothy Cardinal Dolan also hits Georgetown for its decision to invite Kathleen Sebelius to speak at university last week
Read full story
Dolan: Catholic church strangled by government
SpaceX craft blasts off, heads to space station Makes history: First time privately funded ship takes part in space program that had only been handled by governments

Google CEO: Facebook a possible search engine rival Larry Page says Google takes seriously the possibility of Facebook emerging as a competitor in the search engine arena

Hosting 4 playoff games in 2 days, arena swaps back-and-forth between basketball court and hockey rink six times, in rapid order

Judge won't delay Jerry Sandusky sex abuse trial Sandusky's lawyers had asked for delay in case to find and interview new witnesses; Jury selection expected to begin in two weeks

Texas airline exec convicted for child porn Robert L. Hedrick, founder of Pan American Airways, insists enemies set him up; Hedrick had online chats with undercover officers

Man survives Niagara Falls plunge Apparently suicidal man said to be fourth person to survive falls without barrel for protection, in stable condition

Police: Mich. woman shoots grandson 8 times 74-year-old charged with murder in shooting death of teenager

In Bob Schieffer says, thankfully, there are limits to what politicians will say is acceptable when running for office

Morning Market Briefing

 
Commentary May 22, 2012
Stocks may show a lack of direction in early trading on Tuesday following the notable rebound seen in the previous session. The major index futures are currently pointing to a roughly flat open for the markets, with the Dow futures down by just 3 points. (May 22, 2012) Full Article
Economic News
The Conference Board's leading indicator for China's economic activity increased at a steady pace in April, suggesting a modest growth ahead. Meanwhile, the underlying indicators showed some degree of weakness, sending a mixed message over the prospects of the economy. (May 22, 2012) Full Article
The Conference Board's leading indicator for China's economic activity increased at a steady pace in April, suggesting a modest growth ahead. Meanwhile, the underlying indicators showed some degree of weakness, sending a mixed message over the prospects of the economy. (May 22, 2012) Full Article
The global economic recovery is fragile and could be derailed by the ongoing Eurozone debt crisis, the Organization for Economic Co-operation and Development (OECD) warned in its latest economic outlook report, released Tuesday. The Paris-based think-tank downgraded the outlook for the euro area economy. It now sees a 0.1 percent contraction in economic activity in 2012, compared to 0.2 percent growth projected in the November report. The group expects Eurozone to return to growth in 2013. (May 22, 2012) Full Article
U.K. annual inflation slowed more-than-expected in April relieving the central bank governor from writing an open letter to the chancellor explaining why inflation exceeded the limit. (May 22, 2012) Full Article
Fitch Ratings lowered Japan's credit ratings on Tuesday citing rising risks to the sovereign credit profile due to higher public debt ratios. (May 22, 2012) Full Article
Earnings News
Urban Outfitters Inc. (URBN) reported a 12 percent decline in earnings for the first quarter on Monday, hurt by weaker margins. However, the lifestyle specialty retailer's bottom line topped the consensus, while top line missed estimates. (May 22, 2012) Full Article
Medtronic Inc. (MDT) on Tuesday posted higher profit for the final quarter that beat estimates, on back of a better-than-expected sales. (May 22, 2012) Full Article
Tuesday, Williams-Sonoma Inc. (WSM) reported a slight decline in earnings for the first quarter due to one-time charges. However, both the adjusted earnings and revenue came in above expectations, and the company updated its annual targets. (May 22, 2012) Full Article
Tuesday, Best Buy Co. Inc. (BBY) posted a drop in first-quarter profit, hit by restructuring charges, with results topping the Street view. The electronics retailer maintained its forecast for fiscal 2013. (May 22, 2012) Full Article
Ralph Lauren Corp. (RL) on Tuesday posted higher-than-expected results for the final quarter, reflecting double-digit sales growth at its retail and wholesale segments. (May 22, 2012) Full Article
Tuesday, AutoZone Inc. (AZO) reported higher profit for the third quarter on better margins, beating estimates. Quarterly sales grew 6.7 percent yet came in below consensus. (May 22, 2012) Full Article
Broker Ratings Changes
FBR Capital Markets Lowers Cooper Industries Ltd (CBE) To Market Perform From Outperform With $72 up from $69 Price Target
(May 22, 2012) 
FBR Capital Markets Lowers Redwood Trust, Inc. (RWT) To Underperform From Market Perform With $10 Price Target
(May 22, 2012)
FBR Capital Markets Starts Forum Energy Technologies, Inc. (FET) At Outperform With $28 Price Target
(May 22, 2012) 
Robert W. Baird Starts MRC Global Inc. (MRC) At Outperform With $27 Price Target
(May 22, 2012) 
Todays WS Events
Analog Devices Q2 12 Earnings Conference Call At 5:00 PM ET
Analog Devices Inc. (ADI) will host a conference call at 5:00 PM ET on May 22, 2012 to discuss its Q2 12 earnings results. To access the live webcast, log on at investor.analog.com To hear the live call, dial 706-634-7193. A replay of the call can be heard by dialing 855-859-2056 with ID:79449854 (May 22, 2012
AutoZone Q3 12 Earnings Conference Call At 10:00 AM ET
AutoZone Inc. (AZO) will host a conference call at 10:00 AM ET on May 22, 2012 to discuss its Q3 12 earnings results. To access the live webcast, log on at www.autozoneinc.com To hear the live call, dial (210) 839-8923. A replay of the call can be heard by dialing (203) 369-1211 (May 22, 2012)
Dell Q1 13 Earnings Conference Call At 5:00 PM ET
Dell Inc. (DELL) will host a conference call at 5:00 PM ET on May 22, 2012 to discuss its Q1 13 earnings results. To access the live webcast, log on at www.dell.com/investor (May 22, 2012) 
Halliburton To Present At UBS Global Oil And Gas Conference; Webcast At 8:30 AM
Halliburton Company (HAL) will present at the UBS Global Oil and Gas Conference . The event is scheduled to begin at 8:30 AM ET on May 22, 2012. To access the live webcast, log on at www.halliburton.com (May 22, 2012) 
Juniper Networks 2012 Annual Meeting Of Stockholders At 12:00 PM ET
Juniper Networks (JNPR) will host its 2012 Annual Meeting of Stockholders at its offices located at 1220 N. Mathilda Avenue, Building 3, in Sunnyvale, California. The event is scheduled to begin at 12:00 PM ET, May 22, 2012. To access the live webcast, log on to http://investor.juniper.net (May 22, 2012) 
Lowe''s Cos. To Present At Citi Global Conference; Webcast At 10:45 AM ET
Lowe's Companies, Inc. (LOW) will present at the Citi 2012 Global Consumer Conference in ,New York, NY. The event is scheduled to begin at 10:45 AM ET May 22, 2012 To access the live webcast, log on at http://www.Lowes.com/investor (May 22, 2012)
Medtronic Q4 12 Earnings Conference Call At 8:00 AM ET
Medtronic Inc. (MDT) will host a conference call at 8:00 AM ET on May 22, 2012 to discuss its Q4 12 earnings results. To access the live webcast, log on at www.medtronic.com (May 22, 2012) 
Prudential Financial Investor Day At 1:00 PM ET
Prudential Financial Inc. (PRU) will hold its Investor Day. The event is scheduled to begin at 1:00 PM ET on May 22, 2012. To access the live webcast, log on at www.investor.prudential.com (May 22, 2012) 
Wells Fargo Investor Day At 7:45 AM ET
Wells Fargo & Co. (WFC) will hold an Investor Day on May 22, 2012, at 7:45 AM ET. The event is scheduled to begin at 7:45 AM ET, May 22, 2012. To access the live webcast, log on to www.wellsfargo.com/invest_relations/presents (May 22, 2012)
Williams-Sonoma Q1 12 Earnings Conference Call At 10:00 AM ET
Williams-Sonoma Inc. (WSM) will host a conference call at 10:00 AM ET on May 22, 2012 to discuss its Q1 12 earnings results. To access the live webcast, log on at www.williams-sonomainc.com/webcast (May 22, 2012) 




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DeakBooK | DealB% Today's Top Headlines: Reinstating an Old Rule Is Not a Cure for Crisis





Tuesday, May 22, 2012
TODAY'S TOP HEADLINES
TOP STORIES
Reinstating an Old Rule Is Not a Cure for Crisis
Reinstating an Old Rule Is Not a Cure for Crisis Since JPMorgan Chase announced its surprise $2 billion, and growing, trading loss there have been renewed calls from economists, pundits and politicians to reinstate the Glass-Steagall Act, a Depression-era law that prevented commercial banks from participating in investment banking activities, Andrew Ross Sorkin writes in the DealBook column.

A meme around Glass-Steagall has been created, repeated so often that it has almost become conventional wisdom: the repeal of Glass-Steagall led to the financial crisis of 2008. And, the thinking goes, has become almost religious for some people, that if the law were reinstated, we would avoid the next crisis.

The facts - basic facts - just aren't that convenient. While the repeal of Glass-Steagall has seemingly become the sine qua non of the financial crisis, it is pure historical revisionism.

Glass-Steagall wouldn't have prevented the last financial crisis. And it probably wouldn't have prevented JPMorgan's $2 billion-plus trading loss. The loss occurred on the commercial side of the bank, not at the investment bank. But parts of the bet were made with synthetic credit derivatives - something that George Bailey in "It's a Wonderful Life" would never have touched.
As Facebook's Stock Struggles, Fingers Start Pointing As shares of Facebook tumbled in their second day of trading, bankers, investors and analysts wondered what had gone wrong with the initial public offering of the social network, the most highly anticipated technology debut in years.

Some fingers are pointing at Morgan Stanley, the lead banker on the I.P.O., while others criticize Nasdaq and even Facebook itself. In the aftermath, critics contend that Facebook's offering price was too high and too many shares were sold to the public, hurting the stock's performance out of the gate.

Facebook's troubles could damp enthusiasm for a spate of companies set to go public in the coming months. It could also spur changes in the I.P.O. process. In particular, big institutional investors like Fidelity and Vanguard may demand greater say on pricing, at the expense of companies and their bankers.
  • DEALBOOK »
  • DEAL NOTES
    It's Complicated With Zuckerberg's Property The timing of the wedding between Mark Zuckerberg and his college sweetheart, Priscilla Chan, just a day after Facebook's public debut clarified his net worth, prompted speculation that it may have had something to do with a prenuptial agreement. In any case, matrimonial law experts say that in California, whatever Mr. Zuckerberg earned before the marriage remains solely his property afterward, The New York Times reports.
    Europe's Worst Nightmare Landon Thomas Jr. writes in The New York Times: "In a season of nightmare projections for Europe, this one could be the scariest: Greek leaves the euro currency union at the same time Spain's banking system is collapsing." He continues: "The money available to Europe within its main bailout fund, about €780 billion, or $997 billion, would not be enough to handle the twin calamities of a Greek euro exit and a Spanish banking implosion."
    MERGERS & ACQUISITIONS »
    Accor to Sell Motel 6 to Blackstone for $1.9 Billion Accor of France has agreed to sell its budget hotel business in America, including the Motel 6 brand, to the Blackstone Group, as Accor focuses on fast-growing emerging economies and expansion within Europe.
    KB Financial Bids for a Unit of ING The KB Financial Group said it bid for the South Korean life insurance business of ING, which could be worth as much as $7 billion, Reuters reports.
    Olympus Said to Hesitate Over a Deal The scandal-plagued camera company isn't planning to announce a strategic investment at a briefing next month, as some foreign shareholders have feared such a deal could dilute their holdings, Reuters reports, citing unidentified people familiar with the deliberations.
    AOL Chief Dismisses Talk of a Yahoo Merger Tim Armstrong, the chief executive of AOL, told Fox Business that a tie-up with Yahoo was "probably not in the cards."
    Unipol of Italy Moves Toward a Merger A regulator said Unipol would not be required to make a tender offer for a rival, bringing the Italian insurer a step closer toward a four-way merger with other insurance companies, Reuters reports.
    INVESTMENT BANKING »
    Rival Banks Said to Profit on JPMorgan's Losses The Wall Street Journal, citing unidentified traders and people close to the matter, reports that a group of about a dozen banks, including Goldman Sachs and Bank of America, have earned as much as $1 billion on trades that have sometimes been directly against the chief investment office of JPMorgan Chase.
    JPMorgan's Competitors Say Their Trading Strategies Are Different Bank of America, Citigroup and Wells Fargo said their corporate investment offices didn't trade the kind of derivatives that led to JPMorgan Chase's multibillion-dollar loss, Bloomberg News reports.
    JPMorgan to Suspend Stock Buybacks Jamie Dimon, JPMorgan Chase's chief executive, says the bank intends to keep its dividend of 30 cents a quarter unchanged.
    Wells Fargo to Expand Mutual Fund Business Michael Niedermeyer, who runs Wells Fargo's $444 billion asset management division, said he plans to double the size of the unit within seven years by expanding abroad as European rivals pull back, Bloomberg News reports.
    Dexia Announces Changes to Board The bailed-out European bank added a new board member, Karel de Boeck, a former chief executive of Fortis, who is expected to take over as Dexia's chief in the coming months, The Wall Street Journal reports.
    TCW's Bet on Mortgages Begins to Pay Off The TCW Group's Total Return Bond Fund, which has 37 percent of its holdings in mortgage debt that isn't backed by the government, gained 5.2 percent through May 18, Bloomberg News reports. It edged out one of its main rivals, the DoubleLine Total Return Bond Fund, which is run by the former TCW executive Jeffrey Gundlach.
    Kroll Bond Ratings Looks for an Opening The small credit ratings company run by Jules Kroll is looking to overtake Standard & Poor's in the market for grading bonds backed by commercial mortgages, Bloomberg News reports.
    • BLOOMBERG NEWS 
    •  
      PRIVATE EQUITY »
      Obama Stands By Criticism of Bain Capital President Obama explicitly endorsed his campaign's strategy of attacking Mitt Romney's record at Bain Capital, saying, "This is what this campaign is going to be about," The New York Times reports. Mr. Obama's comments came after a prominent ally, Mayor Cory A. Booker of Newark, said the campaign's focus on Bain was "nauseating."
      K.K.R. Said to Be Raising a Fund for Asia The buyout firm is in the process of attracting $2 billion in a capital-raising round for its second fund targeting Asia, and is ultimately seeking as much as $6 billion, according to Bloomberg News, which cites three unidentified people with knowledge of the matter.
      Warburg Pincus Invests in Online Classifieds The private equity firm led a $32 million financing round in Quickr, an Indian classifieds company, Reuters reports.
      Bridgepoint Said to Plan a Sale of Aenova The private equity firm Bridgepoint has chosen Morgan Stanley to handle the sale of the German drug maker Aenova, which could bring in more than $510 million, Reuters reports, citing two unidentified people familiar with the situation.
      HEDGE FUNDS »
      Dueling Portrayals of Former Goldman Director at Insider Trading Trial The trial of Rajat K. Gupta, a former director of Goldman Sachs and Procter & Gamble, began on Monday. Mr. Gutpa is accused of leaking boardroom secrets about those two companies to a friend and business associate.
      Credit Suisse and Bank of America Gain Hedge Fund Business in Asia The Asian prime brokerage units of Credit Suisse and Bank of America gained market share in the last year, as Goldman Sachs and Morgan Stanley lost clients and assets, according to a survey by AsiaHedge, Reuters reports.
      Einhorn Calls a Recovery in Housing David Einhorn of Greenlight Capital told investors in his reinsurance business on Monday that he believed the housing market was improving, Reuters reports.
      Rubicon Fund Sues Former Traders Rubicon Fund Management is seeking as much as 105 million pounds ($166 million) from two former traders, who are accused of trying to overthrow the fund's management and soliciting its clients, Bloomberg News reports.
      I.P.O./OFFERINGS »
      The Facebook Losers There is plenty of blame to go around for the dismal debut of Facebook, including high-frequency traders, Wall Street, Nasdaq, Morgan Stanley and the company itself, writes Floyd Norris on the Economix blog.
      BlackRock Said to Buy a Stake in Formula One The giant asset manager BlackRock was among three investors that bought a $1.6 billion stake in Formula One from CVC Capital, giving the car racing company a valuation of at least $7 billion ahead of its I.P.O., Reuters reports, citing unidentified people.
      In Hong Kong, the Most Popular I.P.O.'s Perform the Worst Since the start of 2010, the Hong Kong I.P.O.'s with the most orders from individuals relative to stock available have fallen an average of 54 percent from their offering prices, trailing the broader I.P.O. market, Bloomberg News reports.
      VENTURE CAPITAL »
      Private Space Travel, Take Three SpaceX, the space exploration company controlled by the serial entrepreneur Elon Musk, launched a rocket bound for the International Space Station after two earlier attempts to show the viability of private sector space travel, The New York Times reports.
      Michael Moritz Reduces Role at Sequoia Michael Moritz, a partner at Sequoia Capital, is scaling back his day-to-day responsibilities because of a "rare medical condition," according to a letter he sent to investors on Monday, which was obtained by DealBook. Mr. Moritz, who will become chairman of Sequoia, is shedding some of his "management responsibilities, including regulatory compliance and recruiting," reports Bloomberg.
      Google to Host Cornell's High-Tech Campus The new applied-sciences school of Cornell University will have a temporary home at Google's offices in New York, while the campus is being built on Roosevelt Island, the City Room blog reports. Google's donation of office space comes even after it supported Stanford University's rival bid to build the campus.
      At Microsoft, Seeking New Uses for Games Among the start-ups at Microsoft's 13-week accelerator program is one called Jintronix, which is trying to find ways to use the Kinect gaming platform for medical rehabilitation, Bloomberg News reports.
      LEGAL/REGULATORY »
      Citing JPMorgan Loss, Regulator Pushes New Oversight The Commodity Futures Trading Commission is circulating a preliminary proposal to apply new rules not only to banks in the United States, but also American banks that have foreign units.
      Jamie Dimon Shows Some Love for Volcker Rule Jamie Dimon, the chief executive of JPMorgan Chase, who has been critical of the Volcker Rule, took a more measured stance on the regulation at an industry conference on Monday.
      With New Firepower, S.E.C. Tracks Bigger Game After missing the warning signs of the financial crisis and the Ponzi scheme of Bernard L. Madoff, the S.E.C. has adopted several new strategies to restore its credibility.
      Former Yahoo Executive Pleads Guilty in Insider Trading Case Robert W. Kwok, who was Yahoo's senior director of business management, and Reema D. Shah, formerly a portfolio manager at a unit Ameriprise Financial, pleaded guilty to a scheme to trade on inside information, Bloomberg News reports.
      Insurer Payments to Banks Are Scrutinized New York State's Department of Financial Services is investigating whether insurance companies effectively bought their dominant positions in the market for insurance for financially troubled homeowners by making improper payments to banks, The New York Times reports.
      Clearinghouses May Be Designated as Systemically Important On Tuesday, regulators may decide some swaps clearinghouses are in need of greater oversight, Bloomberg News reports, citing two unidentified people familiar with the officials' work.
      Google Faces Threat of Antitrust Lawsuit in Europe The European Commission said on Monday that Google may have abused its dominance by promoting its own businesses in Internet search results over those of competitors, The New York Times reports.
     
 

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