Two backers of the alternative crypto-currency bitcoin, Cameron and Tyler Winklevoss, the twins best known for their part in the history of Facebook, are trying to bring bitcoin to a broader investing public, pending approval of the United States government, Nathaniel Popper and Peter Lattman report in DealBook.
The brothers filed a proposal with securities regulators on Monday that would allow any investor to trade bitcoins through an exchange-traded fund. “It is part of a broader effort to remove the stigma hovering over bitcoin and other online money endeavors, which have faced a barrage of regulatory questions and enforcement actions,†DealBook writes. The proposal is an audacious one, and it is far from certain that ecurities regulators will approve it. For background, DealBook has a primer on bitcoin.
The filing set off lively commentary on social media. “The Winklevoss Bitcoin filing must be some sort of peak market absurdity indicator? Perhaps it means there is no value anymore?†Izabella Kaminska of FT Alphaville wrote on Twitter. “Well, at least the Winkelvii Bitcoin trust is consistent with their practice of being parasitic on new innovation,†Epicurean Dealmaker, a pseudonymous Twitter user, wrote. “‘Bitcoin ETF’ is an anagram of ‘Fiction Bet’ which seems pretty apt,†Lorcan Roche Kelly, chief Europe strategist at Trend Macrolytics, said in a post.
LOAN PRACTICES OF CHINA’S BANKS RAISE CONCERN  | Some of China’s largest banks have been sending text messages to the phones of many of the country’s wealthy, trying to raise cash to finance lending outside the scrutiny of bank regulators, David Barboza reports in The New York Times. “The complex way they go about making off-the-balance-sheet loans is at the heart of China’s $6 trillion shadow banking industry, which the government is now trying to tame. Efforts to rein in the dodgy lending practices rattled stock markets worldwide in late June.â€
“China’s regulators â€" and a fair number of economists, policy makers and investors â€" worry that legitimate banks are using lightly regulated wealth management products to repackage old loans and prop up risky companies and projects that might not otherwise be ableto borrow money,†Mr. Barboza writes. “Analysts warn that shadow banking is helping drive the rapid growth of credit in a weakening economy, which could lead to â€" in the worst situation â€" a series of bank failures.†Dong Tao, an economist at Credit Suisse, said of shadow banking: “This is the biggest uncertainty I’ve seen in my 18 years following the China market.â€
SORKIN’S SUMMER READS  | Some of the best business books are so dramatically written they could easily be beach reading. Others provide a grounding in economic and business history. And still others are practical books that help explain the thinking in the corner office. With summer here, Andrew Ross Sorkin has compiled a list (though not an exhaustive one) of some of his favorite business books. They include “Den of Thieves†by Ja! mes B. St! ewart, “Barbarians at the Gate: The Fall of RJR Nabisco†by Bryan Burrough and John Helyar, “The Informant†by Kurt Eichenwald, “Lords of Finance: The Bankers Who Broke the World†by Liaquat Ahamed, “The Art of War†by Sun Tzu and the classic, “The Intelligent Investor: The Definitive Book on Value Investing†by Benjamin Graham.
ON THE AGENDA Â |Â Data on factory orders in May is out at 10 a.m. Constellation Brands reports earnings before the market opens. Sheila C. Bair, former chairwoman of the Federal Deposit Insurance Corporation, is on Bloomberg TV at 7:48 a.m.
A SLOW HALF FOR DEALS  | “A long-awaited rebound in mergers is taking its time to arrive. But for all the hand-wringing by bankers and lawyers, the business of arranging deals has not quite disapeared yet,†DealBook’s Michael J. de la Merced writes. The first half of 2013 was the slowest first six months for mergers in four years, with about $996.8 billion worth of deals announced in the period, down 13 percent from the period a year earlier, according to data from Thomson Reuters. The number of deals announced worldwide in the first half was 16,808, the fewest for the period since 2003. “We’re seeing buyers and sellers talk about deals, only to see them die in the marketplace,†said Scott A. Barshay, the head of the corporate department at the law firm Cravath, Swaine & Moore.
In Europe, the deal environment remained gloomy. The number of announced European deals fell 43 percent, to $221 billion, in the first six months of the year, according to Thomson Reuters, DealBook! ’s Mark! Scott reports. That has left investment bankers scratching their heads over how to get deals done. “At the U.S. Open, the best players in the world couldn’t break par. It’s the same for our industry,†Hernan Cristerna, the new global co-head of JPMorgan Chase’s mergers and acquisitions division.
Rothschild Said to Be Advising on R.B.S.  | The Financial Times reports: “The government has moved quickly to appoint advisers on the potential split of Royal Bank of Scotland into a good bank and bad bank, with Rothschild set to be named to run the assessment.†FINANCIAL TIMES
Icahn Says He Has Secured Financing for Alternative to Dell’s Buyout  | The billionaire Carl C. Icahn pressed his attack on Dell’s $24.4 billion proposed leveraged buyout on Monday, announcing that he had secured the $5.2 billion in debt financing necessary for his alternative plan. DealBook »
Penguin and Random House Complete Merger  | The merged publishing company, Penguin Random House, said change would come slowly. NEW YORK TIMES
Intuit to Sell Financial Services Unit to Thoma Bravo  | With the $1 billion sale, Intuit will retain Mint.com, the popular personal finances tracking service, and its Open Financial Exchange connectivity unit. DealBook »
Tribune to Buy 19 TV Stations
Goldman Appoints a New President in Asia  | Goldman Sachs said on Tuesday that Ken Hitchner would succeed David C. Ryan as president for the Asia-Pacific region, excluding Japan. DealBook »
Bank of America’s Stock Loses Some of Its Luster  | Bank of America’s stock experienced a substantial rise last year, but the shares have lagged behind rivals so far in 2013, The Street writes. THE STREET
2 Managers at Vatican Bank Resign  | The resignations on Mnday followed the arrest of a high-ranking cleric. REUTERS
UBS Begins Singapore Gold-Storage Service  |Â
BLOOMBERG NEWS
Steinway Sold to Private Equity Firm for $438 Million  | Steinway Musical Instruments agreed to be acquired by the private equity firm Kohlberg & Company for $35 a share. DealBook »
Morgan Stanley Attracts $770 Million for Private Equity Fund  | The money management division of Morgan Stanley raised $770 million for a fund to buy interests in private equity funds in the secondary market. BLOOMBERG NEWS
Vestar Capital Falls Short of Target for New Fund  |Â
REUTERS
