A company tries to win over investors for a huge merger in the natural resources business. We visited multinationals staking a claim in venture capital. And Andrew Ross Sorkin pointed to the man behind Facebook's initial public offering debacle.
A look back on our reporting of the past week's highs and lows in finance.
Glencore Increases Offer in Bid to Secure Deal | The world's biggest commodities-trading company tries to save its merger with the mining company Xstrata by sweetening the terms of the all-share deal as it seeks to gain shareholder support, William MacNamara reported. Glencore International is trying to win over investors, including Qatar Holding, Xstrata's second-largest shareholder, which had threatened to block the deal. DealBook '
A banker who spoke on the condition of anonymity because he was not authorized to speak publicly says:
“This is all about face-saving,†the banker said. The higher offer “was always there as a possibility,†he added. But Qatar and Glencore's hardening public opposition had blocked all lines of communication and potential compromise.
JPMorgan Names Investment Executive | As it works to move past a multibillion-dollar trading loss tied to a complex credit bet, the bank has been reshuffling its management ranks - focusing specifically on the chief investment office, the powerful unit at the center of the soured trade, Jessica Silver-Greenberg reported. Craig Delany is taking the helm of the chief investment office, joining a stable of younger executives, including Matthew E. Zames. DealBook '
The promotion of Mr. Delany, who will report to Mr. Zames, has already spawned speculation about who may succeed Mr. Dimon one day. People close to the bank say that Mr. Dimon, who is 56, does not plan to hand over the reins for at least five years.
Nomura Seeks to Save $1 Billion by Scaling Back Mainly in Europe | The scandal-hit Japanese investment bank outlined a broad reorganization plan that would pare back its business to a shadow of what it held after acquiring parts of Lehman Brothers in 2008, Hiroko Tabuchi reported. Koji Nagai, Nomura's new chief, told analysts that the cuts were driven by a grim outlook for the global economy. DealBook '
Under Mr. Nagai, the bank is narrowing its global aspirations and will focus closer to home in Asia, where it can better leverage its dominant position in Japan, senior executives said.
The Trade: Pruning Hedge Fund Regulation Without Cultivating Better Rules | The Securities and Exchange Commission has proposed rules to lift advertising restrictions, but Jesse Eisinger of ProPublica says that the way this looks on paper and the way it will play out in the real world are a tad different. DealBook '
If Groucho Marx were alive today, he'd say that he would never want to invest in a hedge fund that would have him as a limited partner. One doesn't see Le Bernardin and Château Lafite filling the airwaves during N.F.L. games. The ban on law firms advertising was lifted in the 1970s. Today, Jacoby & Meyers advertises on television; Sullivan & Cromwell does not. Drug ads have wrought a parade of patients demanding new (high-margin) medicines from their doctors that often offer few benefits over the old (off-patent) ones.
Deal Professor: With Lax Regulation, a Risky Industry Flourishes Offshore | Steven M. Davidoff says that reinsurance, already something of a murky business, may become even more complicated as hedge funds rush to open their own firms in Bermuda. DealBook '
Yet the concern is not that so much of the business is offshore, but that the growing role of hedge funds may push the main reinsurers to be more aggressive with their own investing. The result would be to push the reinsurance market into becoming a giant hedge fund industry.
DealBook Column: The Man Behind Facebook's I.P.O. Debacle | Andrew Ross Sorkin says that if there is one single individual more responsible than any other for the staggering mispricing, it is David Ebersman, Facebook's chief financial officer. DealBook '
At a time when investors are looking for some semblance of accountability on Wall Street and in corporate America, it is remarkable that nobody - no bankers, no one at Nasdaq, no one at Facebook - has been fired for botching the offering.
Mr. Zuckerberg reportedly told his employees after the I.P.O., “So, you've heard we're firing David?†But it was only a joke.
Multinationals Stake a Claim in Venture Capital | Huge companies like American Express and G.M. have opened offices in Silicon Valley to invest in innovation, Evelyn M. Rusli reported.DealBook '
“We invest with the idea that we're a potential customer for a company,†Jon Lauckner, G.M.'s chief technology officer said. “We're not looking to make several $5 million investments and make $10 million on each. That would be nice, but it's not important.â€
A Decade-Old Insider Trading Case Is Revived | A federal appeals court revived a lawsuit brought by the Securities and Exchange Commission against Nelson J. Obus, a New York hedge fund manager, Peter Lattman reported. DealBook '
For more than 10 years, Mr. Obus has refused to settle the lawsuit as a matter of principle, according to his lawyer. His battle with the S.E.C. is a rare one. Most insider trading defendants settle lawsuits brought by regulators, agreeing to forfeit ill-gotten gains and pay a fine, without admitting or deny ing wrongdoing.
Visas-for-Dollars Program a Boon to Hotel Developers | “A government program, which grants so-called EB-5 visas to foreigners who invest at least $500,000 in an American business, is now a popular source of financing for new Marriott hotels,†Janet Morrissey reported. DealBook '
“Foreigners are buying visas and are much less concerned about the rate of return they earn on their investment,†said David Loeb, a senior analyst at Robert W. Baird.
Citi Hid Dewey's Finances, Ex-Partner at Firm Says | In a recent court filing, Steven P. Otillar says Citibank conspired with Dewey's management to hide the law firm's true financial condition in the months before its collapse, Mr. Lattman reported. DealBook '
