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Jun 27, 2014

DealBook P.M. Edition on June 27, 2014. Weekend Reading: Advancing on Bank Penalties.

For the latest updates, go to dealbook.nytimes.com »
Friday, June 27, 2014
TOP STORY
Weekend Reading: Advancing on Bank Penalties Following DealBook's report that BNP Paribas is expected to plead guilty to criminal charges and pay an $8.9 billion fine, Wall Street's attention will soon turn to two civil investigations into the mortgage crisis.

Talks over Bank of America's mortgage settlement are said have stalled and the Justice Department is finalizing a complaint. The bank could still raise its latest offer of more than $12 billion to avert a lawsuit.

Before that case moves forward, the Justice Department may file a lawsuit over Citigroup's mortgage investments.

Tracking Criminal Inquiries of Wall St. Giants

Some prosecutors say that guilty pleas and billion dollar fines are not enough to deter bad behavior. Senior bank employees keep their jobs and investors have largely shrugged off pleas and fines.

In the chart below, you can see how prosecutors have slowly moved away from so-called deferred prosecution agreements toward guilty pleas by foreign units, guilty pleas by the bank and ever increasing cash penalties.

If the trend towards bigger fines continues, we may see more banks willing to challenge the Justice Department in court.

For the latest updates, go to dealbook.nytimes.com »

A look back on our reporting of the past week's highs and lows in finance.
Janet Yellen, the Federal Reserve chairwoman, said the Fed's balance sheet would remain
Street Scene: Fed's Balance Sheet Punctuated by a Big Question Mark The central bank's balance sheet has ballooned to nearly $4.3 trillion in assets, and how the Fed decides to handle it will have significant consequences, William D. Cohan writes in the Street Scene column.
The most powerful short-term solution for insufficient sleep isn't caffeine. It's a brief nap. 
Life@Work: Sleep as a Competitive Advantage Too many of us live by the myth that one less hour of sleep gives us one more hour of productivity, Tony Schwartz writes in the Life@Work column. In reality, lost sleep not only leaves us more fatigued, but also takes a toll on our cognitive capacity.
AT&T Names Silver Lake Co-Founder to Its Board Glenn Hutchins of Silver Lake, which has made a number of prominent investments in technology, will become a director of the telecommunications giant.
TUI of Germany Reaches Agreement to Acquire British TUI Travel The deal, if consummated, would create the world's largest integrated leisure travel business, worth 4.5 billion pounds, or about $7.7 billion.
The Dollar General store in Springfield, Vt.
Head of Dollar General to Retire The announcement by Richard W. Dreiling, the chairman and chief executive of the discount retailer, comes as a smaller competitor, Family Dollar, is under pressure from the activist investor Carl C. Icahn.
Carmine D. Boccuzzi Jr., right, a lawyer for Argentina, said the country
U.S. Judge Says Payment Should Be Returned to Argentina Judge says that the $539 million deposited with the Bank of New York Mellon for the purpose of paying Argentina's main class of bondholders "is illegal and will not be made."
Botox is one of Allergan's best-known products.
Allergan, Maker of Botox, Acquiesces to Special Shareholder Meeting An agreement with Pershing Square Capital Management makes it clear that the calling of a special meeting will not activate Allergan's poison pill.
Customers outside a Michaels store in Colma, Calif.
Shares of Michaels, Arts and Crafts Retailer, Open Flat on Debut The arts and crafts retailer raised about $472 million in its initial public offering.
The Royal Bank of Scotland's headquarters in London.
R.B.S. to Spend $1.7 Billion on Mobile Banking Growth The bank said it planned to add nearly 100 automated teller machines and transform its branches to centers for financial advice and education. It will also upgrade its mobile platforms.
UniCredit's online banking and brokerage arm, FinecoBank, operates as a separate business.
UniCredit's Online Unit Raises at Least $916 Million in I.P.O. FinecoBank priced its offering of 181.9 million shares at 3.70 euros a share, on the low end of its expected range. The pricing values the company at €2.24 billion, or about $3.05 billion.
Lawsuit Adds to Concern Over China Commodities Fraud A coal producer in China has filed a lawsuit to reclaim $170 million, naming among the defendants the Chinese company at the center of an investigation into aluminum and copper financing fraud.
Shareholder activism has not been the usual strategy of George Soros.
Reuters Breakingviews: Soros Dabbles in Shareholder Activism George Soros's first foray into activism gives underperforming companies a reason to be nervous, Christopher Swann writes for Reuters Breakingviews.
The Barclays building in New York.
Reuters Breakingviews: Barclays Investors Express Investment Bank Fears The drop in the share price of Barclays after it was accused of favoring high-frequency traders over other investors in its dark pool reflects more general fears of investment banking, Dominic Elliott writes for Reuters Breakingviews.
Thursday
BNP Paribas in Geneva. The deal would prevent some of the bank's international locations from clearing dollar transactions for at least six months.
BNP Paribas Expected to Plead Guilty and Pay $8.9 Billion Fine New York has promised not to pull the bank's license, but certain parts of its business will be suspended.
Barry Silbert of SecondMarket, who runs a Bitcoin investment fund, will be bidding on the Bitcoin lots in the online auction.
U.S. Prepares for Sale of Bitcoins Seized in Its Raid on Silk Road The United States Marshals Service has arranged an online auction for nearly 30,000 of the Bitcoins it took from the now-defunct Silk Road market.
Eric T. Schneiderman, New York's attorney general, said Barclays had misled investors.
Brokerage Firms Shun Barclays Trading Pool After Suit; Brief Shutdown Is Reported Barclays investors and clients appeared to be spooked on Thursday by a lawsuit accusing the bank of fraud in how it marketed its private stock trading platform.
A tea estate in the Darjeeling region of India. The online retailer Teabox is seeking to bring the country's centuries-old traditions into the modern era.
Teabox Seeks to Bring India's Teas Into Modern Era With the backing of venture capital, an entrepreneur is seeking to bring high-quality Indian teas rapidly to global consumers via his retail website, Teabox.
Argentina's president, Cristina Fernández de Kirchner, has called hedge funds
Action by Argentina Seems to Defy Judge's Order on Bond Payments Argentina announced Thursday that it had deposited $539 million with the Bank of New York Mellon for the purpose of paying its main bondholders, a move that would defy a federal judge's order.
Many investors may see Alibaba as their best chance yet to buy into China's enormous growth.
Alibaba, Chinese Internet Giant, Picks N.Y.S.E. for Its Listing The choice is a major victory for the exchange, for what is expected to be one of the biggest initial public offerings in years. Alibaba's ticker symbol will be BABA.
Wednesday
The Nook once made up a quarter of the e-reader market, but the company has conceded the contest to the Kindle and the iPad.
Barnes & Noble to Spin Off Nook Unit as Sales Continue to Fall The company said that it planned to spin off its Nook business, once viewed as the company's best hope for surviving in an age of a dominant Amazon.com, as a separate public company.
Mary Jo White, chairwoman of the Securities and Exchange Commission, said the rule was
S.E.C. Limits Derivatives Trading by Foreign Branches of U.S. Banks The rule, stemming from the Dodd-Frank law, identifies which subsidiaries need to register with the Securities and Exchange Commission and fall under more stringent trading standards.
Lorin L. Reisner is leaving the United States attorney's office in Manhattan for a job in the private sector.
Senior U.S. Prosecutor Who Fought Wall St. Is Departing Lorin L. Reisner, who helped overhaul the S.E.C.'s enforcement unit before heading the criminal division of the United States attorney's office in Manhattan, is expected to join a law firm.
The new law would allow public corporations such as the Puerto Rico Electric Power Authority to reduce their debt.
In Puerto Rico, a Proposal for Revamping Debt With fear of financial trouble looming, Puerto Rico's governor proposed a new law meant to regain the confidence of bondholders.
Andrew J. Ceresney, director of the S.E.C.'s enforcement division, said bond frauds
S.E.C. Stops City in Illinois From Selling Municipal Bonds Regulators say the City of Harvey sold $14 million in bonds under false pretenses since 2008 and was planning to bring more to market.
GoPro's I.P.O. Prices at Top of Range, Leading a Wave of Newly Public Companies GoPro is only one of nearly 20 companies looking to make their market debuts this week, a pace unseen since the height of the dot-com boom in 2000.
The Barclays building in New York.
Barclays Faces New York Lawsuit Over Dark Pool and High-Frequency Trading Eric T. Schneiderman filed civil fraud charges against the British bank, contending that it favored high frequency traders over other investors.
Tuesday
Joseph H. Clinard Jr. has been a broker for more than 50 years. The average financial adviser in the United States is older than 50, as relatively few young people are interested in the work.
A Hunt to Find the Next Generation of Financial Advisers The average financial adviser in the United States is older than 50, creating a problem for asset management firms that must figure out how to attract and retain fresh talent.
Monday
Neil Barofsky is a partner at Jenner & Block who oversaw the $700 billion Troubled Asset Relief Program and wrote a book about the experience.
Neil Barofsky, Old Foe of Bank Bailouts, Said to Be a Monitor for Credit Suisse Neil Barofsky was a government gadfly who made a career of needling, and at times pillorying, Wall Street and Washington over the 2008 bank bailouts.
Dov Charney at American Apparel's Los Angeles headquarters in 2011. He was removed as chief executive last week by the company's board.
Realizing the American Apparel Chief, Dov Charney, Isn't Wearing Any Clothes Mr. Charney's dismissal raises all sorts of thorny corporate-governance questions for investors and boards about iconic - and notorious - leaders, especially in creative fields.
William Walters, left, and Phil Mickelson face inquiries over the timing of stock trades.
Dean Foods Receives a Subpoena in an Investigation Into Mickelson's Trades The food company has been asked to supply documents to the investigation involving the golfer Phil Mickelson and the gambler William T. Walters, according to people briefed on the matter.
A Fired Banker and Monroe Capital's Public Suit Monroe Capital claims that Warren Woo, a former executive at the company, stole sensitive information to help start Breakaway Capital, a new private investment firm.
Mark Hurd, an Oracle president, in 2011.
Oracle to Buy a Software Maker Micros Systems for $5.3 Billion The deal for Micros Systems, a maker of software for restaurants and hospitality providers, is Oracle's biggest since the takeover of Sun Microsystems five years ago.
Sunday
Freedom Communications' chief executive, Aaron Kushner, defends the use of life insurance.
An Employee Dies, and the Company Collects the Insurance Many companies insure their employees' lives with themselves as beneficiaries, a practice some deride as immoral. But companies say the policies, for which they get tax breaks, help them bolster pensions and health care.
Arnaud Montebourg, France's economy minister, said the state must buy Alstom shares.
Last Barrier Is Cleared in G.E.'s Deal With Alstom Haggling ended over how much the French government would pay the Buoygues family for a stake in Alstom: a 25 percent premium over Friday's close.
For the latest updates, go to dealbook.nytimes.com »

WSJ I Most Actives Closing June 27, 2014.

Most Actives Closing
Most Active Stocks by Volume
4:32 pm ET 06/27/2014
NYSE
Issue Volume Price Chg % Chg
Rite Aid (RAD) 61,587,766 $7.18 -0.11 -1.51
Bank of America (BAC) 50,501,872 15.33 -0.08 -0.52
Twitter (TWTR) 45,516,592 40.93 -0.51 -1.23
Northstar Realty Finance (NRF) 41,047,336 17.64 0.56 3.28
General Electric (GE) 32,519,378 26.43 0.14 0.53
SunEdison (SUNE) 31,045,482 22.87 0.41 1.83
Dollar General (DG) 30,595,167 57.19 -4.49 -7.28
Pfizer (PFE) 27,444,601 29.67 0.08 0.27
Tyco International (TYC) 23,285,725 45.38 -0.25 -0.55
Ford Motor (F) 22,681,979 17.28 0.08 0.47
General Motors (GM) 22,580,334 36.62 -0.28 -0.76
J.C. Penney (JCP) 20,932,970 8.95 0.21 2.40
AT&T (T) 18,866,961 35.41 0.15 0.43
Western Union (WU) 17,956,935 17.25 0.25 1.47
Weyerhaeuser (WY) 17,785,297 32.58 -0.12 -0.37
Coca-Cola (KO) 17,673,578 42.19 0.16 0.38
Alcoa (AA) 17,644,081 14.93 -0.01 -0.07
Citigroup (C) 17,299,194 47.14 -0.09 -0.19
McDermott International (MDR) 16,583,441 8.00 -0.02 -0.25
E.I. DuPont de Nemours (DD) 15,544,002 65.44 -2.26 -3.34
Advanced Micro Devices (AMD) 15,463,363 4.11 0.08 1.99
America Movil ADS (AMX) 15,427,276 20.69 1.00 5.08
Delphi Automotive (DLPH) 15,397,064 68.50 0.34 0.50
NQ Mobile ADS (NQ) 15,206,447 6.07 -0.30 -4.71
Ally Financial (ALLY) 14,934,907 24.19 -0.50 -2.03
 
Nasdaq
Issue Volume Price Chg % Chg
Sirius XM Holdings (SIRI) 50,817,279 $3.43 -0.02 -0.72
GoPro (GPRO) 45,623,890 35.76 4.42 14.10
Apple (AAPL) 40,753,855 91.98 1.08 1.19
Facebook Cl A (FB) 38,165,539 67.60 0.47 0.70
MannKind (MNKD) 33,812,032 10.00 -0.58 -5.48
American Realty Capital Properties (ARCP) 31,737,593 12.50 0.05 0.40
Microsoft (MSFT) 30,731,942 42.25 0.53 1.27
Micron Technology (MU) 30,198,980 31.51 -0.49 -1.53
Intel (INTC) 26,287,198 30.93 0.15 0.49
Cisco Systems (CSCO) 25,696,678 24.70 0.05 0.20
American Airlines Group (AAL) 24,146,827 44.00 -0.55 -1.23
Yahoo! (YHOO) 22,486,191 34.25 0.59 1.75
Zynga (ZNGA) 22,397,751 3.23 0.04 1.25
PowerShares QQQ Trust Series 1 (QQQ) 21,075,120 93.75 0.41 0.44
Investors Bancorp (ISBC) 20,331,748 11.06 0.04 0.36
Michaels Cos. (MIK) 17,943,108 17.02 0.02 0.12
NII Holdings (NIHD) 17,596,135 0.60 -0.05 -7.69
Activision Blizzard (ATVI) 17,503,070 22.01 0.21 0.96
Glu Mobile (GLUU) 16,524,062 4.67 0.22 4.94
Liberty Global Cl A (LBTYA) 16,180,298 43.91 0.38 0.88
Liberty Global Cl C (LBTYK) 14,944,320 42.20 0.26 0.62
Comcast Cl A (CMCSA) 14,372,821 54.13 0.53 0.99
BlackBerry (BBRY) 13,935,273 9.78 -0.14 -1.41
American Realty Capital Healthcare Trust (HCT) 13,303,695 10.81 -0.04 -0.41
Ariad Pharmaceuticals (ARIA) 12,498,519 6.37 -0.01 -0.23
 
NYSE Arca
Issue Volume Price Chg % Chg
SPDR S&P 500 ETF Trust (SPY) 58,441,006 $195.82 0.38 0.19
iShares Russell 2000 ETF (IWM) 33,877,327 118.34 0.79 0.67
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX) 24,929,368 28.86 -0.25 -0.86
iShares MSCI Japan ETF (EWJ) 24,187,304 11.98 -0.03 -0.25
iShares MSCI Emerging Markets ETF (EEM) 20,830,973 43.35 0.10 0.23
Market Vectors ETF Trust Market Vectors Gold Miners (GDX) 17,825,266 25.98 0.03 0.12
Direxion Daily Small Cap Bear 3x Shares (TZA) 17,310,071 14.14 -0.28 -1.94
Select Sector SPDR-Financial (XLF) 13,997,139 22.76 0.09 0.40
VelocityShares 3x Inverse Natural Gas ETN linked to the S&P GSCI Natural Gas Index Excess Return (DGAZ) 13,286,770 3.14 0.05 1.62
Select Sector SPDR-Technology (XLK) 9,255,652 38.34 0.23 0.60
iShares MSCI Brazil Capped ETF (EWZ) 9,218,495 48.11 -0.17 -0.35
iShares MSCI EAFE ETF (EFA) 9,014,843 68.31 0.04 0.06
Select Sector SPDR-Energy (XLE) 8,122,679 100.02 0.00 0.00
Select Sector SPDR-Utilities (XLU) 7,605,003 43.91 0.17 0.39
Vanguard FTSE Emerging Markets ETF (VWO) 7,405,490 43.20 0.11 0.26
Select Sector SPDR-Industrial (XLI) 7,055,394 54.29 0.13 0.24
Direxion Daily Small Cap Bull 3x Shares (TNA) 6,864,541 80.30 1.59 2.02
iShares 20+ Year Treasury Bond ETF (TLT) 6,562,622 113.24 -0.17 -0.15
iShares U.S. Real Estate ETF (IYR) 6,443,256 71.85 0.43 0.60
iShares China Large-Cap ETF (FXI) 5,965,516 37.21 0.08 0.22
Select Sector SPDR-Materials (XLB) 5,950,146 49.47 -0.15 -0.31
iShares Silver Trust (SLV) 5,663,712 20.17 -0.07 -0.35
iShares MSCI Taiwan ETF (EWT) 5,388,889 15.71 0.10 0.64
ProShares UltraShort S&P500 (SDS) 5,053,759 25.41 -0.09 -0.35
iShares MSCI United Kingdom ETF (EWU) 4,903,593 20.85 0.06 0.29
 
Composite
Issue Volume Price Chg % Chg
NewLead Holdings (NEWL) 63,875,991 $0.28 -0.22 -43.49
Rite Aid (RAD) 61,587,766 7.18 -0.11 -1.51
SPDR S&P 500 ETF Trust (SPY) 58,441,217 195.82 0.38 0.19
Sirius XM Holdings (SIRI) 50,817,279 3.43 -0.02 -0.72
Bank of America (BAC) 50,501,872 15.33 -0.08 -0.52
GoPro (GPRO) 45,623,890 35.76 4.42 14.10
Twitter (TWTR) 45,516,592 40.93 -0.51 -1.23
Northstar Realty Finance (NRF) 41,047,336 17.64 0.56 3.28
Apple (AAPL) 40,814,955 91.98 1.08 1.19
Facebook Cl A (FB) 38,165,539 67.60 0.47 0.70
iShares Russell 2000 ETF (IWM) 33,877,355 118.34 0.79 0.67
MannKind (MNKD) 33,812,032 10.00 -0.58 -5.48
General Electric (GE) 32,519,378 26.43 0.14 0.53
American Realty Capital Properties (ARCP) 31,761,493 12.50 0.05 0.40
SunEdison (SUNE) 31,045,482 22.87 0.41 1.83
Microsoft (MSFT) 30,731,942 42.25 0.53 1.27
Dollar General (DG) 30,595,167 57.19 -4.49 -7.28
Micron Technology (MU) 30,198,980 31.51 -0.49 -1.53
Pfizer (PFE) 27,444,601 29.67 0.08 0.27
Intel (INTC) 26,287,198 30.93 0.15 0.49
Cisco Systems (CSCO) 25,696,678 24.70 0.05 0.20
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX) 24,929,368 28.86 -0.25 -0.86
iShares MSCI Japan ETF (EWJ) 24,187,465 11.98 -0.03 -0.25
American Airlines Group (AAL) 24,150,427 44.00 -0.55 -1.23
Tyco International (TYC) 23,285,725 45.38 -0.25 -0.55
 
 
Footnotes
Includes common, closed end funds, ETFs, ETNs and REITS
x - stock is trading ex-dividend
Source: WSJ Market Data Group