JPMORGAN EARNINGS FALL 18.5%  | JPMorgan Chase reported an 18.5 percent slump in first-quarter earnings on Friday, as the nation’s largest bank grappled with dual challenges: sluggish revenue from trading and lackluster mortgage lending, Jessica Silver-Greenberg writes in DealBook. Both issues, broadly buffeting the banking industry, damped profits at JPMorgan.
The net earnings of $5.27 billion, or $1.28 a share, came in slightly below Wall Street analysts’ expectations of $1.40 a share on revenue of $24.53 billion. Revenue dropped to $23.86 billion.
SAC’S FINAL CHAPTER, MAYBE  | “In the span of a week, Steven A. Cohen’s investment firm changed its name, hired a former federal prosecutor and became a felon,†Matthew Goldstein and Ben Protess write in DealBook. On Thursday, a federal judge approved the firm’s plea deal that resolved criminal insider trading charges and required a $1.2 billion penalty. “The defendants committed very serious financial crimes,†the judge told a packed courtroom, adding that “these crimes were clearly motivated by greed.â€
The approval closes a searing chapter in the 22-year history of Mr. Cohen’s once-mighty hedge fund. Now, the 57-year-old investor is hoping for a less litigious transition for his firm, as it becomes a so-called family office, rechristened Point72 Asset Management, that will manage about $9 billion of his own fortune. Federal authorities privately acknowledge that additional charges against SAC Capital Advisor employees are unlikely unless new evidence surfaces.
Mr. Goldstein and Mr. Protess write: “But to shake fully its tainted past â€" and steer clear of the spotlight â€" Mr. Cohen’s firm will have to do more than plead guilty and change its name. And for Mr. Cohen, who has not been criminally charged despite spending the better part of a decade under investigation, a few legal hurdles remain before he can exhale.†Mr. Cohen still faces a civil action from the Securities and Exchange Commission, and, authorities say, the Federal Bureau of Investigation also continues to examine a handful of stocks for signs of insider trading at SAC.
MARKETS HIT BY TECH SELL-OFF  | Investors on Thursday dumped Internet, biotechnology and other fast-growing companies at a staggering pace, dragging down the rest of the stock market and calling to mind painful memories of the dot-com bust in 2000, Hiroko Tabuchi writes in The New York Times. The worry is that a driver of economic growth â€" stock market wealth and the creation of new companies â€" may be losing steam.
The sell-off was sharpest in highflying technology stocks; the Nasdaq composite index plunged 129.79 points, or 3.1 percent, on Thursday, its biggest drop since 2011. Other industries also felt the tumult, with the Dow Jones industrial average slumping 1.62 percent, and the Standard & Poor’s 500-stock index falling 2.09 percent. On Friday, global equities slipped to a two-week low, as the Wall Street sell-off spread to Asia and Europe. The anxiety threatens to put a chill over the market for initial public offerings and has called into question whether the sell-off will be short-lived or translate into a broad-based weakness.
ON THE AGENDA Â |Â Wells Fargo reports first quarter earnings at 8 a.m. The producer price index for final demand is out at 8:30 a.m. The Thomson Reuters/University of Michigan consumer sentiment index for April is released at 9:55 a.m. The International Monetary Fund and World Bank spring meetings begin in Washington. Blake Irving, the chief executive of Go Daddy, is on CNBC at 11:45 a.m.
A PRIVATE EQUITY TITAN’S UNCONVENTIONAL TACTICS  | “One of the best-performing private equity firms of the last 15 years doesn’t have a big name like K.K.R., Blackstone or TPG,†David Gelles writes in DealBook. “But Vista Equity Partners, a firm with $8 billion under management that deals exclusively in the unglamorous business of enterprise software, has managed to beat the titans of private equity at their own game.â€
Much of Vista’s success can be traced to the unconventional tactics of its hands-on chief executive, Robert F. Smith, who has delivered investors a 31 percent average annual rate of return since co-founding Vista in 2000. One person said the firm has acquired more than 110 companies and never lost money on an investment. But despite his impeccable track record, Mr. Smith, one of the few black private equity titans, says he has faced an uphill battle to get some investors on board, which he believes is because of his race.
Mr. Smith’s success has inspired him to take a counterintuitive approach to managing investments and hiring. He usually adds sales and engineering talent instead of stripping out costs from the companies he acquires. He looks for workers who have leadership potential and analytical abilities instead of candidates with Ivy League degrees and impressive internships. And while many buyout shops strive for diverse portfolios, Vista specializes in software and focuses on a diverse work force. “It is all part of Mr. Smith’s push to repair the damaged reputation of his industry,†Mr. Gelles writes.
Investor Group Offers to Buy Bitcoin Exchange Mt. Gox for One Bitcoin  | A group of investors with ties to Hollywood is offering to buy the Bitcoin exchange Mt. Gox for one Bitcoin, or about $400, The Wall Street Journal writes, citing unidentified people familiar with the situation. The purchase must be approved by a Japanese bankruptcy court.
WALL STREET JOURNAL
IBM to Acquire Marketing Tech Firm  | The company said on Thursday that it had agreed to acquire Silverpop, a privately held marketing technology company based in Atlanta.
DealBook »
Former Maker Studios Chief Sues to Block Disney Takeover  | Danny Zappin, the co-founder and former chief executive of Maker Studios, and three other former executives have filed a lawsuit to prevent a shareholder vote to approve a takeover bid by the Walt Disney Company, The Wall Street Journal writes. Disney agreed in March to acquire Maker Studios, an online video company, for $500 million.
WALL STREET JOURNAL
Amazon Buys ComiXology  | Amazon extended its domain over the world of words on Thursday by acquiring ComiXology, the giant digital comics platform, the Bits blog writes. The terms of the deal were not disclosed.
NEW YORK TIMES BITS
Etihad-Alitalia Talks Said to Heat Up  | Etihad Airways, based in Abu Dhabi, is expected to present a letter of intent for its potential investment in the loss-making Italian airline Alitalia within the next few days after negotiations gained traction following a meeting with Italy’s premier, Reuters reports, citing an unidentified person familiar with the situation.
REUTERS
JPMorgan’s Masters Said to Have Angled to Lead Unit in Sale  | When JPMorgan Chase set out to sell its commodities unit, Blythe Masters, who led the group, is said to have made it clear that she wanted to go along with the business and continue as its chief, Bloomberg News writes, citing an unidentified person familiar with the situation. Ms. Masters announced her departure from the bank after a $3.5 billion sale of the unit was announced last month.
BLOOMBERG NEWS
Co-operative Bank Cancels Bonuses as It Posts Steep Loss  | The Co-operative Bank said Friday that it would cancel 4.97 million pounds, or about $8.38 million, in bonuses for current and former executives and other employees as the British lender reported a £1.3 billion pretax annual loss.
DealBook »
Michael Lewis: By the Book  | Michael Lewis’s new book, “Flash Boys,†is a must-read on Wall Street these days, but what’s his favorite book about the financial industry? In The New York Times Book Review, he says it is “Reminiscences of a Stock Operator,†by Edwin Lefèvre, which was first published in the 1920s.
NEW YORK TIMES
Sacrificing Sense for Speed in Markets  | Today’s stock markets operate at blinding speed, using bewilderingly complicated processes untempered by common sense or accountability, Floyd Norris writes in the High & Low Finance column.
NEW YORK TIMES
Taking a Risk, Investors Snap Up Once-Shunned Greek Debt  | After investors flocked to its five-year debt offering, Athens said it was a sign that the country was succeeding in turning its economy around, The New York Times writes.
NEW YORK TIMES
The Cubs of Wall Street  | Chris Hayes reviews Kevin Roose’s new book, “Young Money,†in The New York Times Book Review.
NEW YORK TIMES
Brazil’s Private Equity Fund-Raising Set to Rise  | Fund-raising for private equity investments in Brazil appears ready to pick up after two lean years, The Wall Street Journal reports. A number of major firms, including the Carlyle Group, have begun raising capital to invest in Brazilian companies, according to unidentified people familiar with the situation.
WALL STREET JOURNAL
Deoleo Board Agrees to Sell Company to CVC Capital  | The board of Spain’s Deoleo agreed to sell the company to the private equity firm CVC Capital Partners, ending a monthslong and often politically charged search for a buyer of the world’s biggest olive oil company, The Wall Street Journal reports.
WALL STREET JOURNAL
Private Equity Helps Drive Subprime Car Loans  | Private equity firms and hedge funds have backed a number of new car finance companies in the last three years, contributing to an increase in subprime car loans, The Financial Times writes.
FINANCIAL TIMES
Ending Vitriol, Icahn and eBay Reach a Deal  | Under the terms of their deal, Carl C. Icahn will withdraw his bid for two seats on the company’s board and end his demand that it sell a minority stake in its PayPal unit to shareholders.
DEALBOOK
Icahn’s Feud With eBay Generated Noise, but Slight Bump for Shares  | In his monthslong battle with eBay, Carl C. Icahn accused the company of failing to generate bigger returns for shareholders. But since the day before eBay announced that Mr. Icahn had acquired a stake, its stock has risen about 2 percent.
DealBook »
Icahn May Someday Win, and eBay Will Spin Off PayPal  | EBay has not ruled out a spinoff forever. More talk from Carl Icahn â€" albeit behind closed doors â€" and heightened scrutiny from independent board members and shareholders could bring the day closer, Robert Cyran of Reuters Breakingviews writes.
DealBook »
One Way to Wage a Proxy Fight  | An activist investor used a photo of a bank’s chairman napping at a shareholder meeting in an attempt to influence an election for board members.
DealBook »
Qatar Investment Executive Said to Start Hedge Fund  | Kamel Maamria’s new fund will be one of relatively few based and focused on the Middle East, with offices in both Qatar and Dubai.
DealBook »
Shares in Ally Dip in Their Debut  | Shares in Ally ended 4 percent below the company’s initial public offering price. Underwriters had already priced the stock sale at the low end of an expected range.
DealBook »
ADP to Spin Off Dealer Services Business  | Automatic Data Processing said on Thursday that it planned to spin off its dealer services business, which focused on marketing for auto dealers and manufacturers, into an independent, publicly traded company, The Wall Street Journal writes. The company said that the separation would occur in the form of a tax-free spinoff to shareholders and that it expected to receive at least $700 million in proceeds.
WALL STREET JOURNAL
Zendesk Files for $150 Million I.P.O. Â |Â Zendesk, the start-up cloud services company, has filed to raise about $150 million in an initial public offering on the New York Stock Exchange, ReCode writes.
RECODE
Tachyus, a Data Start-Up for Oil Industry, Raises $6 Million From Founders Fund  | The start-up is an anomaly of sorts in Silicon Valley because it aims to create an array of sensors and applications to help oil and gas producers better record and analyze their wells. Many new businesses focus on high-technology products for the Internet or green technology.
DealBook »
Food Delivery Start-Up Munchery Raises $28 Million  | Munchery, a food delivery start-up, has raised $28 million in Series B funding led by Sherpa Ventures, The Wall Street Journal reports.
WALL STREET JOURNAL
Jafco Ventures Raises Largest Fund Yet  | Jafco Ventures has raised an oversubscribed fifth fund at $260 million, its largest fund yet, The Wall Street Journal reports.
WALL STREET JOURNAL
Federal Regulators Advise Banks to Protect Their Systems From Internet Security Flaw  | A group of regulators including the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency say banks should upgrade their systems to protect customer information.
DealBook »
R.B.S. Agreement Opens Door for Future Dividends  | The Royal Bank of Scotland, which is 81 percent owned by the British government, has agreed to retire a financial structure that entitled the government to preferred dividends.
DealBook »
G.M. Suspends 2 Engineers in Switch Inquiry  | The company said the two were placed on paid leave as an “interim step†in its investigation of ignition problems that persisted for years, The New York Times reports.
NEW YORK TIMES
Bank of England Holds Key Rate at 0.5%  | The Bank of England on Thursday left a key interest rate unchanged at a record low, as Britain’s economy continues to recover and inflation remains in decline, The New York Times reports.
NEW YORK TIMES
A Delaware Court Flexes a Never-Tested Muscle  | The Delaware Court of Chancery, known as the nation’s business court, has now done something it had apparently never done before in its 222 years â€" issue an arrest warrant.
DealBook »
