MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Today - Thursday, May 24, 2012
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3:50 AM BBVA (BBVA) is considering the sale of its pension businesses in Latin America, calling it an attractive but non-core unit. BBVA is slow-boating it, saying the strategic review will take several quarters and a decision is unlikely to be made this year. Comment!
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Wednesday, May 23, 2012
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9:43 PM Mostly left unsaid about the JPMorgan trading loss is the most crucial point, writes Sallie Krawchek: The size and risk of the trade was identified not by management, but by the press, and then it took weeks for JPM to put a number on the loss. And this from one of the savvier management teams. Regulators need to take note before heaping more complexity on an already incredibly complex business. 6 Comments
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7:14 PM Clobbered over the last week due to Facebook's (FB) less-than-stellar IPO, GSV Capital (GSVC +4.9%) is now trying to downplay its Facebook exposure. Facebook only makes up 4% of GSV's overall holdings, says CEO Michael Moe, and 2013 IPO candidate Twitter is actually the company's largest position. Meanwhile, fellow Facebook owner SVVC has seen its price fall below its net asset value. 1 Comment
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6:00 PM H&R Block (HRB) names Gregory Macfarlane as the tax preparer's new CFO, replacing Jeff Brown. Macfarlane, who starts in the position on June 4, most recently served as chief financial officer of Ceridian from 2007 to 2011. Shares -0.8% AH. Comment!
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1:16 PM Morgan Stanley (MS -2.6%) has offered a price adjustment to Facebook (FB +2.5%) investors in the event they overpaid due to order execution problems, Dow Jones reports. The news comes as lawsuits fly, politicians huff and puff, and sources tell the WSJ MS and other underwriters have made a $100M profit through "greenshoe" short positions on Facebook shares (Felix Salmon recently explained the arrangement in detail). 7 Comments
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1:12 PM Aflac (AFL) is among the names that pop up when DividendChannel screens its top ranked dividend stocks for those which have also seen insider buying over the past 6 months. Insiders sell for a variety of reasons. They buy because they they want to make money. The stock currently yields 3.4%. 12 Comments
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12:48 PM Major brokerage reforms underway in China point to the desire to nurture its own investment banks to compete with the Goldman's and Morgan's of the world. Previously limited to trading and underwriting, brokerages will be allowed to expand into derivatives (CDO squared for Chinese mortgages!), asset management, and private equity. 3 Comments
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11:31 AM CVC Capital Partners is planning to raise as much as $13.5B for a European buyout fund, according to sources, joining a wave of investors (CG, BX, among others) looking to pick up cheap assets on the continent. Comment!
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10:02 AM More on the class-action suit against Facebook and Morgan Stanley: The firm handling the suit previously won $7B from Enron. Its complaint alleges remarks made in Facebook's S-1 about its ad outlook were "untrue statements" in light of reports an exec told analysts to lower their forecasts. Particularly incriminating, if true, are reports institutional demand fell due to the disclosure. That would make Facebook's situation the polar opposite of what may have recently happened with Groupon. 4 Comments
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7:10 AM Annaly (NLY) CEO Mike Farrell has completed his treatment program and his cancer is in remission. "I feel good and have been given an encouraging prognosis," he says. (PR) 7 Comments
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6:40 AM The CFPB plans to announce the first set of rules for reloadable prepaid cards, including standards for fee disclosure and limits on consumer liability if cards are used without authorization. Major banks and companies such as Green Dot (GDOT) have been increasingly pushing the cards on consumers because under the current framework they can charge higher fees. Comment!
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5:19 AM Barclays (BCS) raised a net $5.5B from the divestment of its 19.6% stake in BlackRock (BLK), selling 26.2M shares to money managers for $160 each and 6.38M shares to BlackRock for $156.80. There's also a greenshoe option of 2.6M shares. The sale will increase Barclays' Tier 1 capital ratio by about five basis points as it looks to meet Basel III requirements. Comment!
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4:22 AM BofA (BAC) will buy back $330M of home loans from Freddie Mac (FMCC.OB) after flaws were found in how the loans were created. Though a relatively small re-purchase, the bank's overall costs tied to defective home loans have totaled more than $42B so far. 8 Comments
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3:13 AM Ahead of its investor conference today, MetLife (MET) outlines its strategic value plan. Highlights: By 2016, increase its ROE to 12-14% from 10.3% last year, grow emerging markets business to 20% or more of operating earnings, shift its product mix toward protection products and away from more capital-intensive products, and re-focus its U.S. business. Comment!
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Tuesday, May 22, 2012
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5:17 PM Massachusetts subpoenas Morgan Stanley over the Facebook IPO amid allegations about leaked negative views. MS -1.4% AH. 11 Comments
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3:18 PM Facing growing losses from its exposure to Greece (an ill-fated 2006 purchase of Emporiki Bank), France's Credit Agricole is again applying for assistance from the Greek central bank. There is little reason, however, to think the BoG will change its stance. Credit Agricole -74% Y/Y. Comment!
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2:56 PM The SEC and Finra look set to launch separate investigations of the Facebook IPO. Finra Chief Rick Ketchum calls allegations analysts for the lead underwriters leaked negative views about FB to select clients ahead of the IPO, "a matter of regulatory concern." 6 Comments
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