Fabrice P. Tourre is best known as Fabulous Fab, the former Goldman Sachs trader whose e-mails about the mortgage crisis became a symbol of Wall Street hubris and will now highlight the government’s case against him, Susanne Craig and Ben Protess write in DealBook. Mr. Tourre’s trial opens on Monday in a federal courtroom in Lower Manhattan.
But an inner circle of friends knows Mr. Tourre from a different set of dispatches â€" e-mail updates he sent from Africa during a stint as a volunteer. It was in Rwanda that Mr. Tourre became known simply by the nickname Breezy. “Rwandan coffee yields have significant room for improvements,†he wrote in a March 2011 message to friends, describing his adventure a world away from Wall Street. “Plenty of ideas and projects to focus on, with the ultimate goal to improve coffee farmers’ income and living conditions!â€
The e-mail provides a rare glimpse into Mr. Tourre’s life after Goldman, and after the Securities and Exchange Commission accused him of misleading investors about a mortgage security that ultimately failed, Ms. Craig and Mr. Protess write. After going to Africa, Mr. Tourre enrolled in an economics doctoral program at the University of Chicago, where professors described him as a “standout.†Mr. Tourre’s character will come into focus in the trial; the human elements of the case might sway a jury bogged down in the minutiae of high finance.
QUESTIONS ON JPMORGAN’S CAPITAL  | On a conference call on Friday, there was one number that JPMorgan Chase’s chief financial officer, Marianne Lake, seemed to not want to reveal, DealBook’s Peter Eavis writes. The call came after regulators proposed a new leverage ratio rule, in an effort to get large banks to hold capital that meets a certain percentage of assets, plus other risks embedded in their balance sheets. At the JPMorgan parent company, the leverage ratio would effectively have to be 5 percent, while regulators want the ratio to be 6 percent at the banking subsidiaries that are covered by federal deposit insurance, Mr. Eavis writes.
JPMorgan Chase estimated on Friday that it was already close to meeting the 5 percent requirement at its holding company, saying it had enough capital to get to a 4.7 percent leverage ratio there. “Naturally, analysts also wanted to know whether JPMorgan Chase’s deposit-gathering subsidiaries, which are far larger than the holding company, were close to meeting the 6 percent requirement,†Mr. Eavis writes. But Ms. Lake said she would not disclose the bank leverage ratio, adding that it was lower than at the holding company.
AT&T’S DEAL FOR LEAP WIRELESS  | AT&T, thwarted by regulators nearly two years ago on a planned $39 billion acquisition of T-Mobile USA, is back in the merger hunt, albeit with a much smaller target. The company said on Friday that it had agreed to acquire a smaller rival, Leap Wireless International, for nearly $1.2 billion, the latest sign of consolidation in the telecommunications industry. AT&T is paying $15 a share in cash for Leap, a prepaid cellphone service provider, about 88 percent above Leap’s closing price on Friday. Under the terms of the deal, AT&T would gain five million new customers and acquire Leap’s network, licenses and retail stores. Leap had $2.8 billion of net debt on April 15.
The deal comes after months of speculation about the future of AT&T and other wireless companies. But it is unlikely to solve AT&T’s challenges, said Craig Moffett, a telecommunications analyst who recently started his own firm. “It does not really change the trajectory of AT&T or its deal-making,†Mr. Moffett said. “There’s not much that AT&T can do anymore in the United States. The rest of the wireless business is probably off limits for regulatory reasons.â€
ON THE AGENDA Â |Â Citigroup reports earnings before the market opens. Data on June retail sales is out at 8:30 a.m. C. Dean Metropoulos, chief of Hostess Brands, is expected to appear on CNBC.
MICHAEL DELL’S FIGHT TO RECLAIM HIS LEGACY  | Dell shareholders are set to vote on Thursday on whether to accept Michael S. Dell’s offer of $13.65 a share, or $24.4 billion, for the company. For Mr. Dell, the founder, the fight to take the business private is, in a sense, an effort to turn back the clock, Quentin Hardy writes in The New York Times. Dell is a company that many say is doomed, having missed the consumer shift to smartphones and tablets, and also missed the move of corporate computing to data centers and cloud-based networks.
Still, Mr. Dell’s friends and advisers say he is trying to protect his legacy. “This guy has no desire to see his name on a company people think is irrelevant,†said Marius A. Haas, who runs Dell’s sales to big business.
Loblaw to Buy Shoppers Drug Mart in Canada  | The Loblaw Companies, Canada’s largest food retailer, announced on Monday that it would acquire Shoppers Drug Mart, the country’s biggest pharmacy chain, for $11.9 billion in cash and stock. DealBook »
Investor Hires Advisers in Push for Smithfield Breakup  | Starboard Value contends that the pork producer Smithfield Foods is worth more broken up than the $34-a-share offer from Shuanghui International of China. DealBook »
Proxy Advisory Firm Recommends Against 4 Directors of McKesson  | Institutional Shareholder Services recommended that shareholders vote against four directors of the McKesson Corporation, the health care services and information technology company, citing concerns with executive pay, The Wall Street Journal reports. WALL STREET JOURNAL
For Yahoo’s Chief, Fortunate Timing  | Yahoo’s stock has climbed since Marissa Mayer took over as chief executive last year, but “the entirety of the value appreciation is due to the rapid growth of Alibaba and Yahoo Japan,†Brian Wieser, an analyst at Pivotal Research, told The Financial Times. FINANCIAL TIMES
Google Executives Discuss YouTube, the Phone Business and Taxes  | Unlike the usual practice of staying mum at the annual Allen & Company media and technology conference in Idaho, Google executives used a news conference to promote their business. DealBook »
Bid for Invensys Gives Investors Appetite for More  | Schneider Electric’s $5 billion offer for Invensys prompted a jump in the stock price that indicated investors were hoping for a higher offer or even a counterbid from a rival bidder. DealBook »
As Promised, Icahn Adds to His Bid for Dell  | In a letter to Dell shareholders, Carl C. Icahn and his partner, Southeastern Asset Management, proposed giving shareholders a sweetener in his pitch to buy the computer company. DealBook »
Trouble in European Commercial Mortgage Securities  | The Financial Times reports: “Defaults among financial instruments backed by European commercial mortgage payments have more than doubled, highlighting the widespread problems facing the region’s moribund commercial property market.†FINANCIAL TIMES
Finance Industry Is Expected to Surpass Tech as Most Profitable  | If large technology companies report second-quarter results in line with analysts’ expectations, “finance will be well on its way to overtaking tech this year to once again become the U.S. industry that earns the most annual profit,†a columnist writes in USA Today. USA TODAY
A Lifetime at Goldman Sachs  | Having worked at Goldman for 80 years, Alfred Feld was honored as the firm’s longest-serving employee. WALL STREET JOURNAL
What It Takes to Fully Engage Your Employees  | Questions that chief executives â€" and others â€" ought to regularly ask themselves, not just to be good citizens, but as a powerful way to build competitive advantage. DealBook »
When Owning a Home Isn’t a Virtue  | “This is a good time to ask a basic question,†Robert J. Shiller, a professor of economics at Yale, writes in The New York Times. “In today’s world, is it wise for the government to subsidize homeownership?†NEW YORK TIMES
Restoration Hardware May Be a Boon to Private Equity  | The private equity firms that bought Restoration Hardware Holdings in 2008 “are on track to make about eight times their initial investment, when including their remaining stock holdings in the company, according to a Wall Street Journal analysis of securities filings,†the newspaper reports. WALL STREET JOURNAL
Max Azria May Lose Control of Fashion House  | The designer Max Azria is in discussions that are “likely to leave investment firm Guggenheim Partners L.L.C. â€" which holds about $475 million of BCBG Max Azria Group Inc.’s roughly $685 million in debt â€" with a controlling interest in the company, people familiar with the discussions said,†The Wall Street Journal reports. WALL STREET JOURNAL
Funds Betting on Corporate Announcements Find Success  | “The recent burst of activist pressure, coupled with a proliferation of hostile deals, has allowed event-driven funds to outperform,†The Financial Times writes. FINANCIAL TIMES
Hedge Funds Increase Bets on Gold  | The moves came as comments from Ben S. Bernanke, the Federal Reserve chairman, eased fears that the central bank would wind down its stimulus program sooner than hoped, Bloomberg News reports. BLOOMBERG NEWS
Tnuva, Backed by Apax, Said to Consider I.P.O.  | Tnuva Food Industries, an Israeli company that is controlled by private equity fund Apax Partners, is “considering an initial public offering that would value the company at 8 billion shekels ($2.2 billion), according to a person familiar with the plans,†Bloomberg News reports. BLOOMBERG NEWS
A Word of Caution on I.P.O.’s  | “There are lots of I.P.O.’s to pick from. But that doesn’t mean you should,†The Wall Street Journal writes. WALL STREET JOURNAL
With Investment, Advertising Firm Has Eye on Emerging Markets  | On Monday, the Publicis Groupe, one of the world’s largest advertising holding companies, is to announce a $15 million investment in Jana, a mobile technology start-up that rewards users with free airtime if they take a survey, The New York Times reports. NEW YORK TIMES
A Venture Capitalist on Nepotism  | “What could be better than working with your children?†Ken Lerer, an investor and the chairman of BuzzFeed, told The New York Times Magazine. NEW YORK TIMES
Foreign Banks Win New Delay in Tax Evasion Rule  | The latest rollback of the deadline, a six-month extension to July 1, 2014, underscores a struggle by the Treasury Department to enforce the new law, which was approved in 2010 amid heightened scrutiny of offshore private banking services sold to wealthy Americans. It was originally supposed to go into effect last January. DealBook »
A Patent Warrior Puts Corporate America on Edge  | “Once you go thug, though, you can’t unthug,†Erich Spangenberg, the owner of IPNav, told The New York Times. “Actually, you can unthug, but if you do that, you can’t rethug. Then you just seem crazy.†NEW YORK TIMES
The Fairness of a Split-Second Advantage for Traders  | Regulators are taking a second look at media companies that try to generate revenue by charging fees for early access to financial information, says James B. Stewart, the Common Sense columnist for The New York Times. NEW YORK TIMES
A Proposed Rule on Capital Makes Banks Uneasy  | “Last week, when federal financial overseers unveiled a potent new weapon against too-big-to-fail banks, it seemed as if â€" just maybe â€" the winds in Washington were shifting,†Gretchen Morgenson writes in The New York Times. NEW YORK TIMES
Bringing Bank Regulation to the Masses  | “The Bankers’ New Clothes†tries to make topics like risk-weighted assets, leverage ratio and return on equity appealing to ordinary people. It has been unpopular with many bankers. DealBook »
