Humanitarian Effort in Congo Puts Wall St. Regulator in Unintended Role  | War in the Democratic Republic of Congo has been deadly, with millions murdered. So the United States government has taken its most significant step to try to halt the horror: send in the Securities and Exchange Commission. Not surprisingly, having your capital markets regulator engage in foreign policy may not be the best solution to ending a war, the Deal Professor writes.
The problem arises from the noble attempt to stop the sale of conflict minerals, the focus of those who are pushing for a nonmilitary way to curb the fighting in Congo. Co nflict minerals include coltan, cassiterite, gold and wolframite, and while you may not be familiar with some of these, they are widely used in electronics. Your cellphone may very well contain them.
Humanitarian groups say these minerals are being mined by combatants in Congo and neighboring countries and sold to pay for military activities that lead to abuses of human rights. Activists from the Enough Project, a nonprofit group that seeks to end crimes against humanity, have been working to stop the trade in these minerals, seeking to deprive the Congo war of financing.
So where does the S.E.C. come in? The Dodd-Frank Act was intended to overhaul financial regulation, but it was also turned into an aircraft carrier as legislators dumped in almost every financial reform proposal ever dreamed of. The 1,500-some-odd provisions of the Dodd-Frank Act not only enhance the regulation of banks, they also require shareholder advisory votes on executive compensation and require the S.E.C. to explore ending the arbitration of investor claims.
DealBook '
European Central Bank Affirms Commitment to the Euro  | In an essay published in Die Zeit on Wednesday, Mario Draghi, the president of the European Central Bank, writes that tackling the Continent's crisis may require measures “beyond standard monetary policy tools.†He continues: “Those who want to go back to the past misunderstand the significance of the euro. Those who claim only a full federation can be sustainable set the bar too high.â€
EUROPEAN CENTRAL BANK
Spanish Region Asks for Emergency Support  | Catalonia, a region that accounts for almost a fifth of the economic output of Spain, asked the national government for 5 billion euros ($6.3 billion) in emergency financing, saying it had been shut out of the debt markets, The New York Times reports.
NEW YORK TIMES
A Test for Europe's Central Banker  | Mario Draghi steered Europe through August by challenging traders who were betting against the euro. But the European Central Bank president faces a bigger test in September, when he will be under pressure to provide specific details of a plan to support the Continent's weaker countries by buying their bonds, The New York Times reports.
NEW YORK TIMES
Occupy Wall Street Plans an Anniversary Demonstration  | Almost a year after it started, the Occupy movement is facing â €œmore fatigue than fresh thinking,†Bloomberg News writes. But those involved in the movement are planning a demonstration to mark the first anniversary on Sept. 17, with tentative plans to make citizens' arrests of bankers, according to Bloomberg News.
BLOOMBERG NEWS
Progress Shareholders Agree to $6 Billion Buyout  | Shareholders of the Progress Energy Resources Corporation, a Canadian energy giant, have signed off on a takeover by the Malaysian state oil firm Petronas, valuing the company at about $6 billion including debt, Reuters reports.
REUTERS
Daikin of Japan Said to Buy Goodman for $3.7 Billion  | The deal helps the air-con ditioner maker clinch its long quest to buy its American rival.
DealBook '
Clayton, Dubilier & Rice to Buy David's Bridal  | In the latest retail buyout for the private equity industry, Clayton, Dubilier & Rice has agreed to buy David's Bridal, the bridal gown retailer, in a deal that values the company at $1.05 billion.
DealBook '
Societe Generale in Talks to Sell Greek Unit  | Societe Generale said on Wednesday that it was discussing a potential sale of Geniki Bank, its Greek unit, to Piraeus Bank, a Greek lender, with talks at an “advanced stage,†Reuters reports.
REUTERS
Credit Agricole Eyes an Exit From Greece  | The French bank Credit Agricole said on Tuesday it could reach a deal to sell its Greek unit within weeks and was considering three offers, The Wall Street Journal reports.
WALL STREET JOURNAL
ING Said to Consider Separate Sale of Hong Kong Unit  | ING, which had planned to sell its Asian divisions as a group, is now considering a separate sale of its Hong Kong insurance business, valued at about $1 billion, Reuters reports, citing unidentified people.
REUTERS
Appraisal Period of Morgan Stanley Smith Barney Is Extended  | Morgan Stanley and Citigroup have agreed to give a third party more time to appraise the value of their brokerage joint venture and settle a dispute between the two financial firms.
DealBook '
Spanish Banks Experience a Fall in Deposits  | Private sector deposits at Spanish banks fell by almost 5 percent in July, the biggest monthly drop since the data began in 1997, according to the European Central Bank, Reuters reports. The Spanish government attributed the withdrawals to seasonal factors.
REUTERS
Knight Capital Ponders Its Next Move  | Knight appointed three new directors this week from the firms involved in bailing it out after its trading problems this month. Now the brokerage firm is contemplating its strategy going forward, The Wall Street Journal reports.
WALL STREET J OURNAL
Fidelity Investments Promotes Chairman's Daughter  | Abigail P. Johnson, the daughter of Edward C. Johnson III, the chairman and chief executive of Fidelity Investments, has been tapped to run the mutual fund company's core businesses, Reuters reports.
REUTERS
Citigroup Hires a Barclays Executive for Asia  | Alex Schrantz, who joined Barclays last year after 19 years at Goldman Sachs, is headed to Citigroup to run its corporate finance division for the Asia-Pacific region, Reuters reports. He will be based in Hong Kong.
REUTERS
Morgan Stanley's Head of Private Capital Markets to Depart  | David Barrett, who ran a division at Morgan Stanley that raised money for hedge funds and other firms in exchange for fees, is leaving after 22 years and is considering jobs at several hedge funds, Bloomberg News reports, citing two unidentified people with knowledge of the matter.
BLOOMBERG NEWS
K.K.R. in Talks to Invest in Japanese Chip Maker  | K.K.R. is in talks to invest about 100 billion yen ($1.3 billion) in Renesas Electronics in exchange for more than 50 percent of the Japanese chip maker, which recently forecast an annual loss, Reuters reports, citing unidentified people. The deal would be K.K.R.'s largest in Japan.
REUTERS
Private Equity Taxes, Bain Capital Edition  | Dan Primack writes in Fortune that Bain Capital executives pay taxes at capital gains rates on their management fees when deals generate profit. He argues: “Management fees are a fee for service. As such, they should be taxed as ordinary income.â€
FORTUNE
Number of Buyout Deals Rises in Asia  | According to a new report from McKinsey, the number of private equity deals in the Asia-Pacific region more than doubled last year, while the value of deals rose by only 40 percent, Barron's writes.
BARRONS
Basketball Star Gets Into Private Equity  | The former N.B.A. player Yao Ming has bought the Chongqing Yufu Assets Management Group, taking his place among a club of celebrity investors that includes the si nger Bono and the former quarterback Steve Young, The Wall Street Journal reports.
WALL STREET JOURNAL
Paulson Seeks to Reassure Bank of America Investors  | On a conference call on Tuesday, John A. Paulson told Bank of America financial advisers and their clients that withdrawal requests from his hedge fund were not unusually high this year, but acknowledged that his flagship fund had posted disappointing returns, The Wall Street Journal reports, citing unidentified people on the call.
WALL STREET JOURNAL
Bridgewater Clashes With City Over Building Project  | The giant hedge fund Bridgewater Associates, which received financial incentives from t he state of Connecticut to build a new waterfront headquarters, raised the ire of residents and officials in the city of Stamford when the construction resulted in the demolition of a historic boat yard, The New York Post reports.
NEW YORK POST
Hedge Funds Turn a Wary Eye to Madison Avenue  | With regulators expected to propose loosened restrictions on hedge funds' ability to market themselves, some firms are reaching out to advertising experts with questions, The Wall Street Journal reports.
WALL STREET JOURNAL
Fresh Charges for ‘Criminal Club' Traders  | The government filed new securities fraud charges against a co-founder of Level Global Investors and two former employees of Diamondback Capital Management, who e arlier had been accused of being part of a “criminal club†to trade Dell shares, Bloomberg News reports.
BLOOMBERG NEWS
Britain May Revise I.P.O. Rules to Attract More Deals  | Britain may draw inspiration from the JOBS Act passed in the United States. The government there is considering cutting the minimum stake that companies are required to sell when they go public, in an effort to encourage more companies to list in London, Bloomberg News reports.
BLOOMBERG NEWS
Zynga's Creative Chief Heads for the Exit  | Mike Verdu, who was Zynga's chief creative officer for three years, is the latest high-level executive to leave the social games company recently. He plans to start his own mobile games company, which will be backed by Zynga, Reuters reports.
REUTERS
Security Company Aims to Raise $175 Million  | LifeLock, a company backed by Kleiner Perkins and Bessemer Venture Partners that offers theft and fraud protection services, has tapped Goldman Sachs, Bank of America Merrill Lynch and Deutsche Bank Securities to underwrite its United States offering.
REUTERS
Using Facebook to Share Company News  | Two chief executives of prominent tech companies, Rob Glaser of RealNetworks and Reed Hastings of Netflix, have recently taken to Facebook to share news about the company, the Bits blog writes. Mr. Glaser on Tuesday posted a message to his employees discussi ng the emotional impact of layoffs.
NEW YORK TIMES BITS
Manhattan's Tech Firms Seek Cheaper Rents  | Some young tech companies in New York have found office space north of the unofficial boundary of Silicon Alley, as rents rise downtown and start-ups become more cost-conscious, The New York Times reports.
NEW YORK TIMES
Digital Music Service Quietly Builds Up an Audience  | A service called Muve Music has signed up 600,000 users since its introduction in January 2011, putting it in a league with Rhapsody and Spotify, The New York Times reports. It caters to customers who may not own a computer and use a phone for everything.
NEW YORK TIMES
Flipboard Expands Into Video  | Flipboard, the app that allows people to aggregate content into a magazine-like format, began a push into video on Wednesday. The move shows Flipboard “beginning to mature and diversify,†Paid Content writes.
PAID CONTENT
S.E.C. Charges 8 With Insider Trading in Sanofi Deal  | Federal securities regulators charged eight people in Georgia with insider trading on Tuesday, saying they bought stock in a company ahead of a merger announcement after one of them learned about a pending acquisition by Sanofi-Aventis.
DealBook '
S.E.C. Investigates Residential Capital for Potential Mortgage Fraud  | The Securities and Exchange Commission has disclosed that is investigating Residential Capital, the home lending arm of Ally Financial that is now in bankruptcy, for potential instances of mortgage fraud.
DealBook '
Judge Rejects Residential Capital's Bonus Plan  | A federal bankruptcy judge said that a plan by Residential Capital to pay as much as $7 million to 17 senior executives was primarily retentive, rather than linking the pay to job performance, Reuters reports.
REUTERS
Wall Street Granted Another Brief Reprieve  | The Commodity Futures Trading Commission approved rule changes on Monday aimed at bring ing clarity to derivatives trading, one of the foggiest corners of Wall Street. But buried in the 254-page document, the agency also granted an extension for several other rules.
DealBook '
Pepper Hamilton to Acquire Louis Freeh's Firms  | The deal highlights the growing business of internal investigations into possible wrongdoing at corporations and other institutions, an increasingly lucrative area for law firms.
DealBook '
Barclays Said to Face Possible Fraud Investigation Into Qatar Payments  | Bloomberg News reports that B ritish fraud prosecutors “may open a criminal probe as soon as this week into payments Barclays made in 2008 to Qatar's sovereign wealth fund as the bank sought to raise money, according to two people familiar with the case.â€
BLOOMBERG NEWS
HSBC's Rising Legal Liability  | HSBC's legal headaches may not go away anytime soon, and when they do, the resolutions could be costly, Peter J. Henning writes in the White Collar Watch column. The bank is involved in some of the largest American government inquiries in the banking industry.
DealBook '
Mortgage Company Agrees to Settle Bias Case  | GFI Mortgage Bankers agreed to pay more than $3.5 million to resolve allegations by federal prosecutors that it overcharged nonwhite borrowers, with nearly all of the settlement money going to 600 black and Hispanic borrowers, The New York Times reports.
NEW YORK TIMES
