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Jul 12, 2013

CNBC Latest Stories - Evening Brief; July 12, 2013.


Snowden Is Said to Renew Plea for Asylum in Russia: NYT I Global Update; July 12, 2013.

July 12, 2013
Compiled 20:45 GMT

Global Update


Snowden Is Said to Renew Plea for Asylum in Russia

Edward J. Snowden met with representatives of human rights organizations at his temporary Moscow airport refuge on Friday and appealed for their help in seeking asylum status.

Thousands of Morsi Supporters Rally in Egypt

The size of the protests underlined the large section of society that has rejected the military intervention that deposed President Mohamed Morsi.

At Least 7 Killed as Train Derails Outside Paris

Dozens of others were injured when a crowded passenger train went off the track entering a station in France's worst train accident in 25 years.

Slide Show: For Pakistani Girls, Just Going to Class Is a Risk

Months after an attack on a Pakistani girl who campaigned for education rights, the Taliban war on girls' schooling continues unabated.


Confessions From the Cultural Revolution

Some former Red Guards are spontaneously admitting their crimes under Mao - rare admissions in a country that shuns its past.

U.S. Is Pressing Latin Americans to Reject Snowden

The United States is conducting a diplomatic full-court press to try to block Edward J. Snowden from finding refuge in Latin America.

Siege by Taliban Strains Pakistani Girls' Schools

Since a vicious, high-profile attack on several Pakistani schoolgirls in October, the Taliban's violent campaign against girls' education in northwestern Pakistan has continued unabated.

Egypt Calls for New Look at Morsi Prison Escape in 2011

Egypt's rulers gave new credence to a court case against Mohamed Morsi and members of the Muslim Brotherhood, marking another blow to the group by the military-backed government.

Leaner BP Blanches at Bill for Cleanup

The oil company told a federal appeals court that a claims administrator misinterpreted the terms of a multibillion-dollar settlement reached last year.

JPMorgan Quarterly Earnings Surge 31 Percent

The net earnings of $6.5 billion at JPMorgan Chase, which is typically looked to as a bellwether for the broader banking industry, handily exceeded Wall Street's expectations.

Boeing 787 Catches Fire at Heathrow

The incident, on a plane with no passengers aboard, took place about seven weeks after 787s returned to the skies after being grounded because of hazards with a new type of battery.

Microsoft Overhauls, the Apple Way

The giant software company is creating four new divisions and reassigning nearly every senior executive as it tries to create timely products that consumers want.
News Analysis

The Challenge of Creating a Unified Organizational Strategy

Chief executives offer tips for establishing a cohesive team and clear goals.

Potential for Deals Drives a Big Surge in the Biotech Sector

The rise of personalized medicine has spurred giant pharmaceutical companies to home in on small biotechnology firms.

Cavendish Puts Things Right With a Stage Victory

British cyclist Mark Cavendish, who had lost two straight sprint finishes in the Tour de France, took the sprint in resounding fashion on Friday, beating one of his biggest rivals.

Devils' Kovalchuk Retires From N.H.L. to Return Home to Russia

Ilya Kovalchuk stunned the league by announcing his retirement, walking away from the nearly $77 million left on his contract with the Devils.

Belize Players Turned Down Match-Fixing Bribe, Coach Says

A few days before Tuesday's Gold Cup match between Belize and the United States, a man tried to bribe three players from Belize, the team's coach said.

Zimmerman Case Goes to Jury

In closing arguments, the defense emphasized George Zimmerman's fears for his own life and the deadly potential in a slab of concrete.

Texas Democrats, Energized by Abortion Fight, Face Hurdles Trying to Turn a Red State Blue

The recent filibuster against new abortion restrictions has ignited enthusiasm among Democrats about the governor's race in 2014. But Texas is still a very conservative state.

Napolitano Stepping Down as Homeland Security Chief

Janet Napolitano, who has overseen an expansive portfolio as President Obama's secretary of homeland security, plans to become president of the University of California system.
Op-Ed Contributors

Boom and Bust at the Same Time

Faulty urban policies, shoddy construction and unchecked real-estate speculation are to blame for recent building collapses in Mumbai.
Op-Ed Columnist

Delusions of Populism

These are tough times for members of the conservative intelligentsia. And their latest idea for regaining power is bunk.
Op-Ed Columnist

Pass the Bill!

The likelihood that House Republicans will block immigration reform counteracts the four biggest conservative objectives.

NFA announces XML upload feature to file Pool Quarterly Reports (PQRs): NFA I Notice to Members; July 12, 2013.

FTC Settles 'Rachel' Robocall Enforcement Case: FTC I Enforcement Actions; July 12, 2013.

The Federal Trade Commission has settled with a set of defendants associated with the A+ Financial Center scheme.  They were charged in last year’s joint law enforcement sweep against five companies that made millions of illegal pre-recorded robocalls claiming to be from “Rachel” and “Cardholder Services” and pitching credit card interest rate reduction services.
In the five complaints announced in November 2012, the FTC charged the companies and their principles with misleading consumers about their services, calling phone numbers on the Do Not Call Registry, illegally collecting up-front fees, and making illegal robocalls. According to the FTC, the A+ Financial Center defendants told consumers that for an up-front fee of between $495 and $1,595, they would lower their credit card interest rate, often promising rates as low as six percent or even zero percent. But after collecting the fee, the defendants did little if anything to help consumers lower their credit card interest rates, or obtain the promised long-term savings.
In settling the FTC’s charges, the defendants are banned from making robocalls, continuing to pitch unsecured debt relief services, misrepresenting the attributes of any financial product or service, and engaging in abusive telemarketing practices such as calling numbers on the Do Not Call Registry. The order also prohibits the defendants from misrepresenting the attributes of any goods or services, and from misrepresenting their relationship with any bank, credit card issuer, credit reporting agency, other lender, or government entity. It also requires them to have reliable evidence to support any claims they make to consumers.
In addition, the proposed order prohibits the A+ defendants from disclosing or benefiting from their customer lists, and prohibits them from collecting or trying to collect money from any consumer who bought their service. Finally, it imposes a judgment of $9,238,155, which will be suspended after defendants transfer all of their assets (except $25,000), including a 2007 Mercedes Benz CL, a 1999 boat valued at approximately $17,000, and a 2002 boat worth about $45,000.
The case against A+ Financial Center, LLC was filed in the U.S. District Court for the Southern District of Florida against the following defendants: A+ Financial Center, LLC, also doing business as Accelerated Financial Centers, LLC; Accelerated Accounting Services LLC; Christopher L. Miano, individually and as the managing member of Accelerated Accounting Services LLC; and Dana M. Miano, individually and as the managing member of A+ Financial Center, LLC.
The Commission vote approving the proposed settlement was 4-0.
Information for Consumers
The FTC has tips for consumers, as well as two new consumer education videos explaining robocalls and describing what consumers should do when they receive one. See for more information.
NOTE: Consent judgments have the force of law when approved and signed by the District Court judge.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Mitchell J. Katz,
Office of Public Affairs
Bikram Bandy,
Bureau of Consumer Protection
(FTC File No. 122-3197, Case No. 2:12-CV-14373-DLG (S.D. Fla.);

Related Items:

More news from the FTC >>

Why Egon von Greyerz expects hyperinflation: GATA I THE GATA DISPATCH; JULY 12, 2013.

Why Egon von Greyerz expects hyperinflation

1:35p ET Friday, July 12, 2013

Writing for King World News, gold fund manager Egon von Greyerz explains why he expects hyperinflation as the West declines, as the Roman empire did, from "a kingdom of gold to one of iron and rust." His commentary is posted at the King World News blog here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

DealBook P.M. Edition; July 12, 2013: Week in Review: Reining in American Banks in London

Week in Review: Reining in American Banks in London Deal reached to rein in overseas trading. | Kroger buys rival grocer Harris Teeter, citing potential for growth. | U.S. vows to battle abusive bill collectors. | S.E.C. hopes for validation in a Goldman Sachs trader case. Andrew Ross Sorkin says Fabrice Tourre's day in court may lack some details. | Regulators seek stiffer bank rules on capital. | Ronald Perelman sues old friend Michael Milken (Not to worry. It isn't personal.). | Regulators examining sales of early financial data. | Many paths remain for a case against SAC.
A look back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Senators Question Chinese Takeover of Smithfield The Senate Agriculture Committee was advised that the acquisition of America's largest pork producer by Shuanghui International could have implications for both the economy and national security.
A Kroger in Dearborn, Mich. Kroger is paying $2.44 billion for 212 Harris Teeter stores, and intends to learn the freshness techniques for which Harris Teeter is known.
Kroger Buys Rival Grocer Harris Teeter, Citing Potential for Growth The acquisition of the supermarket chain will help Kroger expand in the Southeast and mid-Atlantic region.
A Dell factory in India. Institutional Shareholder Services endorsed Michael S. Dell's $24.4 billion takeover offer for the company.
Big Seal of Approval for Dell Founder's Buyout Bid Institutional Shareholder Services recommended that Dell investors accept the $24.4 billion offer made by the company's founder and chief executive, Michael S. Dell.
Shopping for Loro Piana in Rome.
LVMH Buying the Luxury Clothier Loro Piana LVMH Moët Hennessy Louis Vuitton, the French luxury goods giant, has agreed to pay 2 billion euros, or about $2.6 billion, for an 80 percent stake in Loro Piana.
Hedge Funds
Deal Professor: A Label for Activist Investors That No Longer Fits Studies have shown that "short-term" hedge funds can actually create long-term value for a company, says Steven M. Davidoff.
Venture Capital
Michael Thomenius of Epizyme, a new biopharmaceutical company in Cambridge, Mass., thought to be a prime takeover target.
Potential for Deals Drives a Big Surge in the Biotech Sector The rise of personalized medicine has spurred giant pharmaceutical companies to home in on small biotechnology firms.
Senators Introduce Bill to Separate Trading Activities From Big Banks Senator Elizabeth Warren and Senator John McCain are sponsoring a 21st-century version of the Glass-Steagall Act from the 1930s, to break up large banks.
16 Senators Seek Inquiry of A.T.M.-Style Pay Cards Instead of paper checks or direct deposit, employers are issuing A.T.M.-style cards that can have large fees associated with them.
President Obama, with Senator Christopher Dodd, center, and Representative Barney Frank, signed an overhaul of financial regulation in 2010.
Deal Reached to Rein In Overseas Trading After a rift, members of the Commodity Futures Trading Commission have agreed on a plan to curb risky overseas trading. The agency and European regulators also announced a plan for how to jointly approach cross-border trades.
S.E.C. Lifts Advertising Ban on Private Investments The new rule will fundamentally change the way that hedge funds, buyout firms and start-up companies raise money in the private marketplace.
Massachusetts Regulator Opens Inquiry Into Products Sold to Older Investors The top financial regulator in Massachusetts has asked 15 brokerage firms, including Merrill Lynch and LPL Financial, about the way they have marketed "high-risk, esoteric products" to older investors.
Richard Cordray, director of the Consumer Financial Protection Bureau, wants to crack down on abusive debt-collection practices by lenders.
U.S. Vows to Battle Abusive Debt Collectors Federal regulators are cracking down on some of the nation's biggest banks and other lenders, accusing them of aggressive practices like hounding debtors with repeated phone calls.
Fabrice Tourre, formerly of Goldman, faces claims that he was part of a conspiracy to mislead investors on a mortgage security.
S.E.C. Hopes for Validation in Goldman Sachs Trader Case For Fabrice Tourre, an unfavorable verdict could yield a fine, or a ban from the securities industry. For the S.E.C., the trial is a defining moment that follows one courtroom disappointment after another.
Andrew Ross Sorkin.
DealBook Column: Trader's Day in Court May Lack Some Details A case is seen within the S.E.C. and on Wall Street as a referendum on Goldman Sachs. But all of the details might not be presented, says Andrew Ross Sorkin.
Thomas Hoenig, a Federal Deposit Insurance Corporation official.
Regulators Seek Stiffer Bank Rules on Capital The proposal would increase the financial cushion banks must maintain to protect their assets in a crisis.
NYSE Euronext to Take Over Administration of Libor NYSE Euronext said it won a contract to administer and improve the embattled London interbank offered rate, or Libor.
Eric T. Schneiderman, the New York attorney general, has a darker view of high-speed data services than federal regulators have.
Regulators Examining Sales of Early Financial Data The New York attorney general is looking into early release of data after Thomson Reuters announced that it was suspending the release of a survey to clients who paid extra.
Eric T. Schneiderman, the attorney general of New York.
Thomson Reuters to Suspend Early Peeks at Key Index Yielding to pressure from New York's attorney general, Thomson Reuters is expected to suspend the early release of a closely watched consumer confidence index, which it has delivered two seconds in advance to clients willing to pay extra.
Ronald O. Perelman
Perelman Sues Old Friend Milken (Not to Worry. It Isn't Personal.) The billionaire deal maker Ronald O. Perelman loves to litigate, and one of his companies recently filed a little-noticed lawsuit accusing Michael R. Milken of fraud.
Westport National Bank was a custodial bank for accounts with Bernard L. Madoff's firm.
Madoff Case Puts Focus on Duties of Custodial Banks A lawsuit brought by investors who lost $60 million in Bernie Madoff's Ponzi scheme claims that Westport National Bank failed to protect their money.
Senator Orrin Hatch of Utah said he would introduce a bill to help end what he called the
Pension Proposal Aims to Ease Burden on States and Cities A proposal by Senator Orrin Hatch of Utah would enable governments to turn their pension plans over to life insurers.
Britain Backs New Rules to Jail Bankers Over 'Reckless Misconduct' The British government has backed a set of recommendations to improve standards in the banking industry, including measures that could have bankers in Britain facing jail time for poor business decisions.
Many Paths Remain for a Case Against SAC Capital Advisors Criminal and civil authorities continue to press a long-running investigation into the hedge fund and Steven A. Cohen, who runs it.
Bringing Bank Regulation to the Masses "The Bankers' New Clothes" tries to make topics like risk-weighted assets, leverage ratio and return on equity appealing to ordinary people. It has been unpopular with many bankers.
Google Executives Discuss YouTube, the Phone Business and Taxes Unlike the usual practice of staying mum at the annual Allen & Company media and technology conference in Idaho, Google executives used a news conference to promote their business.
Life@Work: What It Takes to Fully Engage Your Employees Questions that chief executives - and others - ought to regularly ask themselves, not just to be good citizens, but as a powerful way to build competitive advantage, says Tony Schwartz.
Bid for Invensys Gives Investors Appetite for More Schneider Electric's $5 billion offer for Invensys prompted a jump in the stock price that indicates investors are hoping for a higher offer or even a counterbid from a rival suitor.
As Promised, Icahn Adds to His Bid for Dell In a letter to Dell shareholders, Carl C. Icahn and his partner, Southeastern Asset Management, proposed giving shareholders a sweetener in his pitch to buy the computer company.
A Wells Fargo branch in New York.
Wells Fargo Profit Jumps 19 Percent Wells Fargo, the nation's largest home lender, overcame a slowdown in the mortgage market to report record net income of $5.5 billion.
Jamie Dimon, the chief executive of JPMorgan Chase.
JPMorgan Quarterly Earnings Surge 31 Percent The net earnings of $6.5 billion at JPMorgan Chase, which is typically looked to as a bellwether for the broader banking industry, handily exceeded Wall Street's expectations.
Buzz Tracker
The Fairness of a Split-Second Advantage for Traders Regulators are taking a second look at media companies that try to generate revenue by charging fees for early access to financial information, says James B. Stewart, the Common Sense columnist for The New York Times.
Week in Verse
'Stormy Weather' In 1933, Congress passed the Glass-Steagall Act and Ethel Waters topped the charts with a song about a "Sharknado."