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Markets Await 'Helicopter Ben,' But May Be Disap

Thu, 07 Jun 2012 12:16:38 +0900

Markets Await 'Helicopter Ben,' But May Be Disappointed
gucci outletThe expectations are so high for Fed Chairman Ben Bernanke Thursday to say something revealing about more Fed easing that he can probably only disappoint markets.Bernanke's 10 a.m. testimony before the Congressional Joint Economic Committee, comes on the heels of a major stock market rally, inspired in part by optimism for more Fed easing.Stocks had their best day of the year, rising 286 points to 12,414, and the S&P 500 rose 29 to 1,315."What's he (Bernanke) going to say? Is he really going to get in a helicopter and dump money?" said Steve Massocca of Wedbush Securities.Developments in Europe could also be key Thursday, after a Reuters story Wednesday quoting German officials said a deal is in the works that would enable Spain to recapitalize its banks with aid from euro zone countries, but without strict new reforms. Markets will be watching as Spain conducts a bond auction, ahead of the New York market open."Anything out of Europe that would suggest they put an even stronger band-aid on their issues, and if you also get some support from the Fed, then I do think there's a possibility we continue this rally, but I think we're increasingly dependant on monetary policy to keep things going," said Gina Martin Adams, institutional equities strategist at Wells Fargo Securities.Adams said the market's outsized move Wednesday was a concern. "Any time you get these gigantic moves it actually gives me a little bit of pause with respect to a bear market trend," she said.Even though some analysts see little impact from further Fed easing with already historic low yields, all types of risk assets roared ahead Wednesday while Treasurys and bunds yields snapped higher as investors unloaded securities that were the safe havens of choice just a week ago.
gucci handbags outletBernanke's tone on the economy will be key, as it was the poor May jobs report last Friday that turned the market view from a Fed on hold to a Fed that may take action at the June meeting or later."He does need to very specifically reaffirm his commitment to easing and his willingness to ease, and probably acknowledge a lighter economic scenario. I don't know that the market is so keyed up on his speech that there will be a reaction. I would be a little more worried about Spain then I would Bernanke to move the market," Adams said.Bernanke got the nickname "Helicopter Ben" after he referred to a statement by Nobel economist Milton Friedman about fighting deflation by using a helicopter drop of money. “There’s just been, for the last 48, 72 hours a growing feeling that a 10 percent decline in the stock market is as deep a decline as you would get with Ben Bernanke lurking tomorrow,” said Dan Greenhaus, global strategist with BTIG. Besides Bernanke, there is a group of Fed speakers during the day, and there is some key datas, including the 8:30 a.m. weekly jobless claims. Consumer credit is reported at 3 p.m.San Francisco Fed President John Williams reiterated just before the market close Wednesday that the Fed must be ready to do more to achieve its goals of maximum employment and price stability.Thursday's Fed speakers include Boston Fed President Eric Rosengren who is on a panel in Denmark at 5:45 a.m. ET; Atlanta Fed President Dennis Lockhart, who speaks on the economy and policy at 12:10 p.m., and Minneapolis Fed President Narayana Kocherlakota who spekas on monetary policy at 1:15 p.m.Dallas Fed President Richard Fisher speaks on the Chinese currency at 3:30 p.m., and Chicago Fed President Charles Evvans will be interviewed by Maria Bartiromo on "Closing Bell" at 4:10 p.m.The Fed also meets on Basel III recommendation on banks at 3:10 p.m. ET.
gucci shoes outletTraders also said the victory of Republican Gov. Scott Walker in the Wisconsin recall election is a good sign for GOP presidential candidate Mitt Romney, and a negative for President Barack Obama. "I think that's resonating with people," said Massocca. "We're no longer killing politicians that make moves to reduce deficit spending. It sounds like the public is fully supporting it."The stock market Wednesday continued to gain after the Fed released its beige book at 2 p.m. which said the U.S. economy expanded at a “moderate rate” in March and April, better than its previous modest to moderate rate. The Fed, however, also noted that its contacts were less optimistic."It's a little bit more upbeat than I might have thought—a little less subdued," said David Ader, chief Treasury strategist at CRT Capital. "This is marginal stuff. It was before the nonfarm payrolls and other things. So in context, it sort of comes across as old news."Earlier Wednesday, the European Central Bank kept rates unchanged, initially disappointing markets. The Bank of England meets Thursday morning, and there’s speculation it will carry out another round of easing. The type and timing of Fed easing has become the new debate on Wall Street, replacing expectations that the Fed was not ready to do more quantitative easing. But a weak series of economic reports and the dismal jobs report for May, showing just 69,000 jobs created, sparked new expectations the Fed would take action. One theory is that the Fed extends its Operation Twist, which is scheduled to expire at the end of the month. That program differs from quantitative easing in that the Fed buys longer duration Treasurys and sells an equal number of shorter duration notes, without expanding its balance sheet. If the Fed decides to do a “QE3,” that could involve the outright purchase of more securities—mortgages or Treasurys.

Europe bank reforms proposed by European Commiss

Thu, 07 Jun 2012 12:15:59 +0900

Europe bank reforms proposed by European Commission
Gucci Zip Wallet with Tassel and Bamboo Detail Light BrownEuropean banks should come under greater central oversight and taxpayers should be shielded if the banks collapse, according to new proposals Wednesday that aim to prevent future financial crises in Europe but that do little to address its current one.With weak banks in Greece and especially Spain setting off alarm bells, officials and investors are pushing for strong, coordinated European action to prop up the region's financial sector and head off devastating bank runs that could unleash pandemonium in global markets.The proposals unveiled Wednesday by the European Commission, the executive arm of the European Union, suggest steps toward a common banking policy.National banking authorities would have the power to step in when banks appear shaky and compel them to develop recovery plans.In addition, financial institutions on the verge of failing would be allowed to do so, rather than be rescued by the state at taxpayer cost. Private investors in the banks would have to swallow their losses. This would help avoid the catastrophic experience of Ireland, whose government agreed to take on the bad debts of Irish banks and eventually found itself in the humiliating position of having to ask for international aid."We don't want taxpayers to have to pay," Michel Barnier, the commissioner in charge of the EU's internal market, told reporters in Brussels. "Banks should pay for banks. We're going to break the link between banking crises and public budgets."But the proposals fall short of more radical measures being floated and wouldn't come into effect for several years."We're not dealing with the present crisis," Barnier said. "This is for the future."Many analysts are calling for more drastic, and more rapid, action to deal with the current crisis, a "banking union" that would set up a powerful European banking authority and a region-wide deposit insurance scheme to convince customers that their money is as safe in a Greek bank as in a German bank.
Gucci Continental Wallet with Engraved Logo and Studs Light BrownSuch ideas are due to be discussed at a summit of EU leaders at the end of the month, if the markets have not forced the issue before then.Investors are concerned with the health of Spanish banks, which are sagging under the weight of billions of dollars of bad property loans left over from the country's real-estate boom-gone-bust. Madrid has scrambled to respond to the problem, whose scope it has consistently underestimated; independent auditors are to report this month on how dire the situation is.Spanish Prime Minister Mariano Rajoy is lobbying European leaders to allow his country's banks to draw rescue funds directly from Europe's bailout program, without the aid being channeled through his government.That would allow Spain to avoid the stigma of having to follow Greece, Ireland and Portugal in requesting a bailout and accepting the foreign-imposed conditions and obligations that come with it. But Germany, Europe's paymaster, has so far rejected the idea.On Thursday, Madrid is to hold a crucial bond auction that will test investors' confidence in its ability to pay its debts. Borrowing costs for Spain have climbed to uncomfortably high levels, though they eased a bit Wednesday.The ripple effect of the debt and banking problems plaguing countries such as Spain and Ireland has begun touching their financially sound neighbors. TheMoody'sratings agency downgraded the status of seven German banks late Tuesday, including Commerzbank, the country's second-largest.This apartment is in a century-old converted grain silo in the heart of Puerto Madero, a gentrifying neighborhood near the old port of Buenos Aires. The main entrance is on the sixth floor; the building has an elevator.
Gucci Continental Wallet with Interlocking G CoffeeThere is a half bathroom just off the entryway, and a windowed alcove to the right is used as a home office. The living room has a double-height ceiling, oak flooring, and a gas-burning fireplace framed with white marble. The adjacent dining room has a crystal chandelier and matching wall sconces. It is separated from the kitchen by a marble-topped island with a stainless steel sink. The kitchen has open shelves, a pantry and a breakfast nook. A door off the kitchen leads to the staff quarters, which has a bedroom, a full bath and a separate entrance. A striking bright-red metal staircase with wooden steps leads to the second floor, where there are three bedrooms. They all have en-suite baths and floor-to-ceiling windows, with sheer curtains to let in light while preserving privacy. The master bedroom has oak flooring and a small sitting area. The master bath has a white ceramic sink atop a white marble vanity, and the ceramic tile floor is also white. One flight up, a small landing with windows on three sides has a door to a private roof deck, with a hot tub and panoramic city views. The industrial building, known as Los Molinos, was renovated in 2009 by the Argentine developer Alan Faena. It is now a modern mixed-use structure with about 90 condominiums on the upper levels and shops and an art gallery below. The building also has exercise facilities for residents, including a lap pool. The artsy neighborhood has a vibrant nightlife that draws people from all over Buenos Aires. Cafes and restaurants are within easy walking distance. The airport is about an hour’s drive, depending on traffic. The real estate market in Buenos Aires is stable but sluggish, said Roberto Guichon, director of the Buenos Aires company Guichon Propiedades. The situation may be improving because the sales volume so far this year has not lagged as far behind as in the past, Mr. Guichon said.
Gucci Continental Wallet with Web Closure in CoffeeOne drag on the market has been the fluctuation of the dollar — because Argentine property is often priced in dollars, said Valerio Valle, the administration adviser of Valle Real Estate, an Italian real estate company that sells property in Argentina. He said the global financial crisis had also taken a toll on foreign homeownership in Argentina. Prices in the popular neighborhood of Palermo range from $2,500 to $3,500 per square meter ($232 to 325 per square foot), according to Mr. Guichon. The neighborhoods of Recoleta and Puerto Madero are more expensive, ranging from $3,000 to $6,000 per square meter. “Rare gems can go higher than that in some cases,” Mr. Guichon said. The apartment profiled here, in Puerto Madero, is listed at $3,226 per square meter. Foreign buyers are mainly American, but West Europeans are also a significant presence, agents said. Buenos Aires is especially known for attracting people who enjoy museums, art and music, said Adriana Massa, the principal of Argentina Properties Sotheby’s International Realty and the listing agent for this apartment. “It has a very important cultural life,” she said. Mr. Guichon said he had also seen a considerable number of buyers from Russia and Brazil. Foreigners will find no barriers to residential purchases in cities, but there are some restrictions on rural transactions. Ms. Massa says foreign buyers must obtain a tax identification number, similar to a social security number. Transaction costs include a real estate agent commission of 6 to 8 percent of the purchase price, shared between the buyer and the seller, she said.
Gucci Continental Wallet with Web Closure in Light Brown The 2.5 percent stamp tax is also split between them. The buyer pays for the notary, whose fees range from 1 to 3 percent. Most high-end properties in Argentina are priced in dollars, not pesos, Mr. Guichon said. Exxon Mobil Corp. is planning a major expansion of its corporate campus under construction near The Woodlands, bringing thousands more workers to the area and deepening the economic impact the complex is expected to have on the region. The oil and gas behemoth said Wednesday that an additional 2,000 employees - many from out of state - will be housed in the new development near Interstate 45 and the Hardy Toll Road.Most of the jobs will come from the company's offices in Fairfax, Va., where Exxon Mobil employs about 2,100 people. Additional positions will relocate from Akron, Ohio, and from around the Houston area. In total, the complex will house a workforce of 10,000 when it opens in 2015. About 8,000 are being consolidated from Houston-area offices.The new jobs will create a "multiplier effect" on the region, said economist Barton Smith, explaining that the area could see twice as many jobs as a result of increased spending from the relocating Exxon Mobil employees."Clearly this is an important step for the northern metropolitan area in terms of solidifying its position as a growth area," said Smith, professor emeritus of economics at the University of Houston.He also notes the planned northern extension of the Grand Parkway, which is making the area more desirable for development.
Gucci Continental Wallet with Interlocking G detail CoffeeExxon Mobil has not made public exactly how much space will be built on its 385-acre tract, but it will include multiple low-rise office buildings, a laboratory and conference and training centers, as well as employee amenities like a child care facility and wellness center.Construction is well under way, and there are more than 1,000 people working at the site.The company's Irving headquarters is not part of the relocation and consolidation, said spokesman David Eglinton.The impact of thousands of new jobs moving north of town has already seeped into the housing market."It's great news for The Woodlands," said Paul Layne, executive vice president for master-planned communities at the Howard Hughes Corp., which controls development of 28,400-acre master-planned community. "Our sales are up this year and we believe it's not only Exxon, but more specifically the improvement in the overall Houston economy."One of the largest new developments under way in the area is Springwoods Village, an 1,800-acre housing and commercial development adjacent to the Exxon Mobil campus.Keith Simon, senior vice president and director of development for the project's developer, said he's received strong interest from grocery stores, medical providers, hotels and others for commercial tracts in Springwoods Village. Two parcels, he said, are already under contract for new corporate headquarters. "They are companies that are widely recognized," said Simon of CDC Houston, subsidiary of Coventry Development Corp. of New York.Although the Exxon Mobil project is outside Houston's city limits, the Mayor Annise Parker addressed it Wednesday in her weekly press conference.
Gucci Continental Wallet with Interlocking G detail White "We are very happy that Exxon Mobil has expressed this kind of confidence in what's available here in Houston," Parker said.Exxon Mobil announced the project a year ago. It did not release the construction cost, but said the development would be built to high standards of energy efficiency and provide opportunities for more employee collaboration.Indeed, the consolidation is part of a larger trend of combining workers in offices in an effort to improve collaboration amongst workers.The some 8,000 local employees slated to move into the new campus include most of the people who work in the company's upstream and chemical offices, along with various support staff.The campus will also house refining, specialities marketing, research and engineering groups from the Fairfax offices. The Akron office houses chemical operations.In addtion, the company said Wednesday, select local relocations will come from Exxon Mobil Research and Engineering Co. and Exxon Mobil Chemical Company now located at the Baytown refinery complex outside of Houston. "Collocating them should enable greater sharing of expertise," said Eglinton.Ruby Tuesday (NYSE: RT), based in Maryville, Tenn., said the company’s board of directors has formed a search committee to find a successor to Beall, who opened the first Ruby Tuesday restaurant in 1972 in Knoxville, Tenn., near the University of Tennessee campus.The company today owns and operates 740 Ruby Tuesday restaurants and franchises 85 restaurants, include five in Hawaii. “After 40 years with Ruby Tuesday, I look forward to taking some time off and to pursuing personal ventures,” Beall said in a statement.

Saudi Arabia Achieving $100 Oil Signals Output R

Thu, 07 Jun 2012 12:15:36 +0900

Saudi Arabia Achieving $100 Oil Signals Output Reversal
abercrombie outletSaudi Arabia is poised to rein in oil sales after it achieved a $100-a-barrel target by cutting the price of its crude and pumping at the highest rate in at least three decades. The world’s biggest crude exporter started to scale back shipments this month, Vienna-based researcher JBC Energy GmbH said, citing tanker fixtures. Three days ago the desert kingdom raised the July official selling price to Asia of its main crude grade, Arab Light, for the first time in three months, another sign that it is reducing production, according to the Centre for Global Energy Studies in London. Saudi Arabia has been trying to lower the international price of oil to about $100 as slowing global economic growth counters concern of a supply shortage following a ban by western nations on imports from Iran. Brent crude, used to price more than half the world’s oil, fell to a low of $95.63 a barrel on June 4 amid Europe’s debt crisis, brimming supplies and weaker- than-expected Chinese manufacturing. Prices were as high as $128.40 in March. “The downward pressure on prices will continue until they reduce supply,” said Manouchehr Takin, an analyst at CGES, which predicted last month that the Saudis would attain their $100 target. “OPEC’s doves have said $100 is their target, so they have to defend it.” The kingdom has been pumping more than 9.5 million barrels a day since June 2011, the longest stretch for at least 11 years, according to data from the U.S. Energy Department. Output has averaged 10 million barrels a day for the past three months, Oil Minister Ali al-Naimi said. That’s the highest level since at least 1980, according to U.S. government data. Brent should drop to $100 as supply outweighs demand, al-Naimi said on May 13 in Adelaide, Australia, when prices were near $112.
abercrombie and fitch ukBrent closed at $98.84 a barrel on the London-based ICE Futures Europe exchange on June 5. The price of OPEC’s basket of crudes dropped below $100 a barrel on June 4 after more than seven months, ending the longest run in triple digits amid weaker growth. Saudi Arabia raised the premium for Arab Light to $1.35 a barrel over benchmark prices for July delivery. That pares the biggest price cut in the first half of the year the kingdom has made since Bloomberg began compiling the data in 2000. Demand for Saudi crude would drop to 9.5 million barrels a day in the second half, about 500,000 barrels less than what the kingdom produced last month, according to JBC Energy. To balance the oil market, members of the Organization of Petroleum Exporting Countries should cut output, which is at “elevated” levels near 32 million barrels a day, by 1.15 million barrels, Morgan Stanley forecast yesterday. “We think the Saudis have started to cut back already,” David Wech, managing director at JBC, said by phone yesterday. “The economy is struggling, demand is relatively weak, stock builds have taken place in the U.S., China, and by the Saudis themselves. All these factors point to a drop in production.” OPEC agreed in December to an official production ceiling of 30 million barrel-a-day for all 12 of its members, without specifying individual national quotas. The group meets again on June 14 in Vienna. Barclays Plc, Societe Generale SA and the CGES predict that OPEC will keep its formal output quota unchanged next week. OPEC will maintain supply as they’d be “unwilling to do anything that might risk prematurely tightening markets once again at a time of such economic uncertainty,” International Energy Agency Executive Director Maria van der Hoeven said in a June 5 interview in Kuala Lumpur.
abercrombie and fitch outletEurope’s debt crisis, now in its third year, has crimped exports from China, whose manufacturing sector in May grew at the weakest pace since December, according to the country’s Purchasing Managers’ Index. A separate gauge from HSBC Holdings Plc and Markit Economics showed a seventh straight contraction, the longest since the 2008 global financial crisis. European Union governments will go ahead with a ban on Iranian oil imports from July 1 even though some “progress” was made in nuclear talks between major world powers and officials from the Islamic republic, the EU said May 25. Crude exports from Iran were about 300,000 barrels a day lower in the first three months of the year, compared to the last quarter in 2011, according to the Paris-based IEA. OPEC, responsible for about 40 percent of global output, bolstered production by 410,000 barrels a day to 31.85 million barrels in April, IEA data show. That leaves the group’s output at about 2.3 million more than is needed in the second quarter and 6 percent above its quota. Saudi Arabia’s oil storage tanks at home and overseas are full, al-Naimi said in March. China increased its imports in the first quarter to fill stockpiles and not because of growth in domestic demand, China National Petroleum Corp. said May 4 in its online newsletter. U.S. crude inventories rose to 385 million barrels in the week ended May 25, the highest in 22 years, Energy Department data show. “The Saudis had ramped up production because they were very worried about the potential for demand destruction from high prices,” said Roy Jordan, a London-based oil analyst at Facts Global Energy. “If prices fall more precipitously, we would expect Saudi to cut back.”
abercrombie ukAsian shares rose on Thursday on signs European policymakers were seeking a solution for ailing Spanish banks and amid growing expectations for additional monetary stimulus if major economies deteriorate further.Such hopes strengthened after Federal Reserve Vice Chair Janet Yellen on Wednesday laid out the case for the U.S. central bank to ease monetary conditions to shield the U.S. economy as financial turmoil in Europe mounts.MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent and Japan's Nikkei average advanced 1.1 percent. Those gains follow climbs for global stocks on Wednesday with the Dow Jones industrial average and the Standard & Poor's 500 Index up more than 2 percent for their biggest daily percentage increases since December 20. The S&P also staged a major reversal above its 200-day moving average.Although the European Central Bank and U.S. Federal Reserve officials on Wednesday played down the likelihood of any imminent monetary policy stimulus, they noted mounting market tensions and downside risks to their economies."Although there were no overt hints of immediate action from the European Central Bank, investors feel that the overall tone of global policymakers is accommodative of a breakthrough at the U.S. FOMC and EU leaders' summit scheduled later in the month," said Rhoo Yong-suk, an analyst at Hyundai Securities.The ECB kept interest rates steady at 1 percent on Wednesday and President Mario Draghi denied an imminent third round of long-term refinancing operations.In the United States, Atlanta Fed President Dennis Lockhart and John Williams, of the San Francisco Fed bank, on Wednesday noted Europe's brewing crisis was the main threat to the United States and said they are prepared to take even more policy action to boost the erratic U.S. economic recovery.
abercrombie and fitch clearanceThe Fed's Beige Book summary of business activity on Wednesday showed U.S. economic growth picked up over the two prior months and hiring showed signs of a modest increase, but last week's jobs data for May showed employment contracted sharply, sparking a heavy sell-off across the markets.Investors were now turning their focus to Fed Chairman Ben Bernanke, who is due to testify on the U.S. economy before a congressional committee later on Thursday, ahead of a Fed policy meeting later this month.The dollar index , measured against a basket of major currencies, eased 0.2 percent while the euro steadied around $1.2580, moving away from Friday's low of $1.2288, its lowest in nearly two years.The safe-haven yen traded 0.1 percent lower against the dollar at 79.30 yen.U.S. crude rose 0.5 percent at $85.46 a barrel, while Brent crude was up 0.3 percent at $101.92 on Thursday.Investor risk appetite had fallen significantly on concerns about Spain's ability to rescue its banks and refinance the country's huge debts as its borrowing costs soared.Sources said on Wednesday that European officials are urgently exploring ways to rescue Spain's debt-stricken banks, with lawyers examining how Madrid could get money from the euro zone's rescue funds without the stigma of a full economic adjustment program.Spain will test the market on Thursday by issuing between one and two billion euros ($1.3 billion-$2.5 billion), split between three bonds, the lowest target it has set this year.The cost of insuring against corporate and sovereign defaults in Asia eased further on Thursday, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by 4 basis points.

Chesapeake Developed Shopping Centers as Gas Pr

Thu, 07 Jun 2012 12:14:23 +0900

Chesapeake Developed Shopping Centers as Gas Prices Fell
red bottom shoesChesapeake Energy Corp. (CHK), under fire from investor Carl Icahn for focusing on “non-core assets,” has amassed more than $300 million of real estate in its home- town Oklahoma City area, including shopping centers. The exact size of Chesapeake Land Development Co.’s holdings, valued according to county tax records, is unclear from public filings. The empire, which has built at least two retail developments from scratch, has also included a church, houses and a grocery store. The real estate subsidiary is “absolutely” an example of costs that Chesapeake will have to rein in, said Fadel Gheit, an analyst at Oppenheimer & Co. Chesapeake’s home-town development projects illustrate how it can be difficult to distinguish between the personal interests of Chief Executive Officer Aubrey McClendon, who once said he might have been a developer in another life, and those of the company he leads. According to county real estate records, Chesapeake is the landlord for the upscale restaurant Deep Fork Grill, of which McClendon owns 49.7 percent. “I’m really kind of surprised,” said Brian Gibbons, an analyst at Creditsights Inc. in New York who rates Chesapeake bonds a buy. “They should not be involved in real estate development.” Chesapeake, the U.S. energy explorer battered by collapsing natural-gas prices and growing investor mistrust, will report to shareholders at its annual meeting tomorrow about plans to replace almost half its board under pressure from its biggest investors. Icahn, whose newly acquired 7.6 percent stake makes him the second-largest shareholder, is urging “cost savings initiatives” and a more conservative approach to spending, according to a June 4 federal filing. Southeastern Asset Management Inc., the largest shareholder with 13.6 percent of shares, also urged Chesapeake in a May 7 letter to focus more on its oil and gas business and sell assets outside that core. Facing a cash shortage, Chesapeake is in advanced talks to sell virtually all of its pipeline assets in transactions that may raise more than $4 billion, said two people with knowledge of the matter.
red bottomsThe real estate unit is putting “the same creativity and innovation” into its industry as the parent company has used in energy, according to the land segment’s Web site. Michael Kehs, a spokesman for Chesapeake, declined to comment on Chesapeake’s real estate holdings. Almost every energy company will have excess land it needs to sell over time and may even develop some of it, Gheit, the Oppenheimer analyst, said. Still, Chesapeake should be paying more attention to its “bread and butter” oil and gas business, he said. “I guess we totally missed this one,” Gheit said of Chesapeake’s real estate subsidiary. “We knew about their fancy campus.” For years the company has been buying land around its corporate headquarters campus in northern Oklahoma City. It has also added numerous amenities to the campus itself, including a soccer field, jogging track and several restaurants. The real estate purchases have stretched far beyond the campus to include several office buildings more than a mile away. Closer to the campus, the company has built two retail developments and bought a third existing shopping center, adding up to an estimated 100,000 to 200,000 square feet of retail space, said Roy Williams, chief executive officer for the Greater Oklahoma City Chamber of Commerce. The real estate moves have improved the neighborhood around the headquarters campus from an area with run-down buildings and “class B” office space, Williams said. “I think they’ve totally reshaped that whole area of town,” he said. “Now, it’s a destination.” Other large oil companies, including Devon Energy Corp. (DVN) and SandRidge Energy Inc. (SD), are also making an impact on the Oklahoma City economy with real estate purchases. In October, Whole Foods Co. began a 20-year lease with Chesapeake for a store across the street from the headquarters campus on land that was formerly home to one of the city’s oldest funeral homes.
red bottom shoes for saleMcClendon, who uses Arcadia Farm LLC as one of his personal investment companies, told Forbes last year that if it weren’t for the oil and gas industry, he would have been an accountant “or a real estate developer, which is something I have found quite enjoyable and useful in oil and gas development, and it has been helpful in leading the development of our large corporate campus in Oklahoma City.” Arcadia Farm and related entities own real estate valued for tax purposes by the Oklahoma County appraiser at more than $24 million. Chesapeake Land Development Co. and other Chesapeake-named subsidiaries own land and buildings valued at more than $300 million, according to the county assessor’s office. That includes the headquarters campus office buildings. The distinction between the publicly traded company and McClendon’s Arcadia is not always clear. In 2002, for example, McClendon and his wife owned real estate that shared the same post office box as Chesapeake Energy and an entity known as Deep Fork Farm LLC, which later changed its named to Arcadia Farm, according to deeds. Chesapeake also owns properties north of its campus that are within a mile of a personal real estate project of McClendon’s that was planned to house his personal wine collection, at one point considered one of the country’s largest. Construction on the $3 million, 31,000-square-foot warehouse stopped around the time McClendon faced financial difficulties in 2008. In four federal filings between April 29, 2008, and May 4, 2009, Chesapeake said it used the catering services of Deep Fork Grill and that McClendon was a 49.7 percent owner in the restaurant. It did not note that it owned Deep Fork Acquisition LLC, the entity listed on the county assessor’s tax rolls now as the owner of the restaurant property. A Sept. 20, 2011, filing with the Oklahoma County Clerk’s office describes Chesapeake as the owner of Deep Fork through a series of mergers between 2006 and 2008. While Williams, of the Chamber of Commerce, has not worked with McClendon personally on any real estate projects, the two have worked together on behalf of several non-profit groups. “Aubrey really likes things that are different; he likes things that are ’first,’ ’best’ or ’only,’” Williams said. “He doesn’t like to have another something that everybody else has.”

Regulator unaware of JPMorgan loss until weeks b

Thu, 07 Jun 2012 12:13:09 +0900

Regulator unaware of JPMorgan loss until weeks before disclosure
red sole shoesThe top U.S. bank regulator had no inkling of JPMorgan Chase & Co.'s more than $2-billion trading loss until just weeks before it became public — even though the agency had 65 examiners working full-time at the firm's Manhattan headquarters and other company offices.To some lawmakers, the acknowledgment was another black mark for the Office of the Comptroller of the Currency, which has been criticized for not being more aggressive in its oversight of major financial institutions in the years before the financial crisis."The OCC has a well-deserved reputation for being too cozy with the banks it regulates," Sen. Robert Menendez (D-N.J.) told Thomas J. Curry, the agency's new chief, at a congressional hearing Wednesday. "Did the OCC screw up in allowing these JPMorgan trades to happen?"Curry, who took over as comptroller in April, told the Senate Banking Committee that he was trying to determine that.The OCC is conducting a "critical self-review," Curry said, to figure out where its oversight went awry, even as it works daily with JPMorgan executives to reduce the risks in the complex trading portfolio that caused the losses.Besides looking at those trades by JPMorgan's chief investment office in London, the unit responsible for the loss, the OCC is assessing the bank's overall risk management, Curry said."Part of my goal in reviewing what happened at JPMorgan Chase is not just to see what the bank itself did or did wrong, but also how we can improve our supervisory processes at the OCC," Curry said.Last month's trading loss shook Wall Street, damaged the glittering reputation of JPMorgan Chairman Jamie Dimon and raised the prospects of stiffer federal regulations being enacted to prevent banks from making huge bets on complex securities.
red bottom heelsThe committee is examining the JPMorgan trading loss as part of its oversight of the 2010 financial reform law, which was designed to prevent excessive risk-taking by banks. Many provisions are still being implemented by regulators, including the so-called Volcker Rule to limit trading that banks do with their own funds.Dimon will testify before the committee next week and before the House Financial Services Committee the following week."When a bank with JPMorgan's solid reputation announces that it lost billions of dollars on a large trade reportedly designed to reduce the firm's risks, it reminds us that no financial institution is immune from bad judgment," said Banking Committee Chairman Tim Johnson (D-S.D.)"While the JPMorgan trading loss does not appear to have caused systemic problems, it is a clear reminder that Wall Street continues to need better risk management, vigorous oversight and, if the rules are broken, unyielding enforcement," he said.But the focus at Wednesday's hearing was squarely on banking regulators.Although JPMorgan's chief investment office created the complex trading portfolio in 2007, the OCC did not begin focusing on the potential problems until early April — just weeks before Dimon announced the huge losses May 10."Our interest and concern intensified during the month as losses increased within the portfolio, up to the point that the institution itself announced the significance of the losses that occurred," Curry said.The Federal Reserve, which regulates JPMorgan's bank holding company, has been working with the OCC to help the firm remove the risk from the portfolio.It's still unclear exactly what happened with the portfolio, which was supposed to help offset the credit risks of the bank, Curry said.
red bottom shoes"It's a very complicated investment strategy, both in terms of its size and complexity," Curry said. "We are looking to determine what the actual strategy behind that investment scheme was and also if there were any other factors driving that strategy other than attempting to mitigate known risks in that portfolio."Sen. Jeff Merkley (D-Ore.) asked Curry whether Bruno Iksil, the JPMorgan trader known as the "London Whale" for the giant bets he placed as part of the portfolio strategy, was trying to mitigate risk."Not necessarily," Curry said.Merkley agreed, saying Iksil "woke up each day … trying to make money for the bank."Menendez warned regulators that if similar trading losses continue at banks after new financial rules are implemented, then "blood will be on all of your hands if the 'London Whale' ultimately goes belly up next time."Sen. Richard Shelby (R-Ala.) said that banks need to take risks, but that regulators need to make sure the firms don't go too far."Job creation and economic growth depend on banks taking such risks," Shelby said. "It is the job of regulators, however, to prevent banks from taking risks that expose taxpayers."But Sen. Bob Corker (R-Tenn.) said it was not realistic to think banking regulators could prevent complex trades like the ones that caused JPMorgan's loss."I think it's a fool's errand to think regulators are going to be ahead of bankers," he said.