United States of America

Nasdaq pours gasoline on Facebook fire

7 Jun 2012

The exchange offered brokers a measly and controversial $40 mln to compensate them for over $120 mln of losses derived from the badly botched IPO of the social network. That has galvanized customers and rivals against Nasdaq. Boss Bob Greifeld is starting to look more exposed.

Google’s antitrust problem is all about privacy

7 Jun 2012

They seem like separate issues, but the internet search giant’s market power is largely fueled by its access to personal data. Limiting that could give competition a useful jolt. U.S. and European regulators need to keep that in mind as they move closer to legal action.

Bankia shows why U.S. Sifis must be ready to die

6 Jun 2012

Uncle Sam might easily wind down a firm the size of the sick Spanish bank. But coping with systemic institutions is different. A looming deadline for U.S. giants to draft living wills is a chance to prove they’re not too big or complex to fail. Otherwise, breakups could beckon.

Wisconsin puts proactive policies back on the map

6 Jun 2012

Governor Scott Walker’s victory in the Badger State’s recall election doesn’t just affirm his 2011 union-curbing budget reforms. It also suggests well-designed controversial policies are far from doomed. That’s good news for politicians of all hues battling Washington’s gridlock.

Party City celebrates embattled private equity

5 Jun 2012

A $2.7 bln deal for the costume and streamer chain wraps together the mixed feelings U.S. voters have for the buyout industry. Revel in the huge jobs and profit growth created by three Boston-based owners. But a dividend recap and growing debt leave the affair somewhat subdued.

Newest bank sheriff can’t let JPMorgan moment pass

5 Jun 2012

Just two months into the job, Thomas Curry got a swift reminder about the shortcomings he confronts running the OCC. Despite being JPMorgan’s primary U.S. regulator, it missed the whopping trading loss. Curry now has a chance to show if he’s ready to toughen up the agency.

Record low rates encourage fat and lazy Uncle Sam

5 Jun 2012

Rock-bottom borrowing costs make future attempts by the Federal Reserve to boost growth largely irrelevant while giving Washington a free pass to do squat on the nation’s long-term fiscal problems. The U.S. needs a reality check, but markets continue to conspire against one.

Facebook’s short-term greed carries long-term harm

5 Jun 2012

Going public is more than just a one-time money-raising event. Facebook is a case in point. Debuting at a lofty valuation helped insiders. But the 30 pct stock plunge has hurt the social network’s reputation, a new Reuters poll shows. That’s bad for a consumer brand.

Chesapeake board ups governance; now to govern CEO

4 Jun 2012

Finally, investors including Carl Icahn will get to pick four directors at the beleaguered U.S. gas firm, and all board seats will be less secure than before. But even vigorous directors have their work cut out reining in Aubrey McClendon, the company’s founder and 23-year boss.

Salesforce.com enlists Buddy to help defy gravity

4 Jun 2012

One after another, über-trendy stocks have fallen to earth - think Netflix or Green Mountain. The $18 bln Salesforce.com has held up better than some. To help it stay aloft, it is spending $689 mln on Buddy Media. Social media is still a sweet spot, but it’s an expensive gambit.

Arctic “Great Game” needs careful management

4 Jun 2012

The U.S., Russia and Canada are among the governments limbering up. Boundary rights in the Arctic are fuzzy, and potential benefits huge. Future conflicts over energy and other resources could turn nasty. An international effort to set firm rules is needed before it’s too late.

Douwe Egberts listing has to create its own buzz

4 Jun 2012

Sara Lee’s $5 bln-plus coffee spin-off is percolating towards the Amsterdam exchange. The maker of Douwe Egberts is uncomfortably big in sleepy bits of the coffee market. But the cast-off could thrive if its top team capitalises on lessons learned in beer and baby food.

Activist flushes out Nomura and investor weakness

4 Jun 2012

An anonymous shareholder has filed all 18 independent proposals for the Japanese firm’s annual meeting. Some are peculiar, like suggesting workers squat on the toilet. Others are more mainstream. If nothing else, the secret scribe exposes the supine nature of Japan’s investors.

Wal-Mart jamboree missing one thing – a vote count

1 Jun 2012

The under-fire mega-retailer pulled out all the stops for its shareholder meeting, inviting Justin Timberlake and Lionel Richie to the party. But its organizational skills don’t extend to the basics, like providing more timely color on the controversial re-election of its board.

Exxon tweaks chemistry to hedge U.S. gas exposure

1 Jun 2012

The energy giant bet heavily on gas with its $31 bln purchase of XTO. With domestic prices still sagging two years on, the company is set to turn some of its gas into more lucrative chemicals for export. Exxon’s new plant may even do rivals a favor by shrinking the glut of gas.

Soft U.S. jobs data test battling economic ideas

1 Jun 2012

With only 69,000 jobs created in May on top of weaker growth than thought, the dismal science is on trial. Keynesian and monetary stimulus theories, for instance, are losing credibility. The winner for now is Reinhart and Rogoff’s thesis that excessive debt stunts growth.

Fake exclusive: Zuckerberg memo to Facebook staff

1 Jun 2012

The social network’s CEO will soon return from an Italian honeymoon to find his troops coping with the busted IPO. His message to them should be humble, yet ambitious: ignore the market, focus on the job and deliver. Breakingviews pens a first draft using Zuckerberg’s own words.

RIM doesn’t need to remain Canadian

31 May 2012

The struggling BlackBerry maker is weighing its options, from joint ventures to a sale. Despite past form, some officials’ preference to keep the company Canadian shouldn’t worry would-be foreign buyers too much. RIM’s declining sales and significance present a bigger challenge.

Less to Wells Fargo lending deal than meets eye

31 May 2012

The U.S. bank aims to lend $425 mln to end a Memphis discriminatory lending lawsuit and is adding other sweeteners like down-payment grants. It’s good PR, but Wells already offers similar aid in areas where it’s not being sued. And it still faces a bigger test from the feds.

John Malone again proves fickle media friend

31 May 2012

The U.S. cable magnate has escalated his fight for control of Sirius XM, the satellite radio company he bailed out in 2009. Malone is known for clever, aggressive tactics, even against Rupert Murdoch. Sirius is another cautionary tale for rival moguls and investors alike.