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Tuesday, August 31, 2010

The New York Times DealBook: Edited by Andrew Ross Sorkin: Why Wall St. Is Deserting Obama

 DealBook: Edited by Andrew Ross Sorkin
 The New York Times
 Tuesday, August 31, 2010
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For updates throughout the day, visit:
http://dealbook.blogs.nytimes.com/
----------------------------------------
To view the latest DealBook headlines on
your mobile device, go to:
http://mobile.nytimes.com/blogs/dealbook
----------------------------------------
For tips, feedback: e-mail 
dealbook@nytimes.com;


1. Top Story: Sorkin: Why Wall St. Is Deserting Obama
2. M & A: Taiwan Blocks Sale of A.I.G.'s Nan Shan
3. Banking: Lenders Back Off of Environmental Risks
4. Private Equity: Candover to Wind Up Funds
5. Hedge Funds: Funds Move to Halt Ambac Asset Grab
6. Offerings: A Year of Disappointing I.P.O.'s Angers Investors
7. Venture Capital: The Google Deal Machine
8. Legal: Warren's Fate Is Gauge of Wall St. Overhaul


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1. Top Story: Sorkin: Why Wall St. Is Deserting Obama
----------------------------------------

A letter from a hedge fund manager to his investors about Washington's
policies is stirring up controversy on a sensitive topic among the
moneyed elite, The New York Times's Andrew Ross Sorkin writes in his
latest DealBook column.

The poison pen of Daniel S. Loeb took a jab recently at one of his
former allies, the Obama administration, deploring the redistribution
of resources and power that Wall Street has come to fear with the
passage of the financial regulation overhaul.

Some say that they knew Obama would seek higher taxes and tighter
regulation; that was O.K. What they say they did not realize was that
they were going to be painted as villains. And as they grow to distrust
government, they threaten to cut off investment in the United States.

Go to Column from The New York Times:
http://www.nytimes.com/2010/08/31/business/31sorkin.html?dbk

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http://dealbook.blogs.nytimes.com/?p=279975&dlbk&emc=dlbk

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2. M & A: Taiwan Blocks Sale of A.I.G.'s Nan Shan
----------------------------------------

The Taiwan financial regulator said  Tuesday that it would block the
$2.15 billion sale of Nan Shan -- American International Group's life
insurance unit on  the island -- to a group of buyers tied to  China,
citing laws that limit investment  from the mainland.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/31/taiwan-blocks-sale-of-a-i-g-s-nan-shan/

Read More
http://dealbook.blogs.nytimes.com/?p=280137&dlbk&emc=dlbk

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-----

The American power producer Exelon said Tuesday that it had agreed to
buy John Deere Renewables, a wind power company, in a deal that may be
worth up to $900 million.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/31/exelon-to-buy-wind-firm-john-deere-renewables/

Go to Exelon Statement:
http://www.businesswire.com/news/home/20100831005745/en/Exelon-Expanding-Wind-Generation-Acquisition-John-Deere

Go to Previous Item from Bloomberg News:
http://www.nytimes.com/2009/07/22/business/22exelon.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280165&dlbk&emc=dlbk

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-----

"Let me in, and I might go higher." That, in a nutshell, is the message
Chris Viehbacher, the chief executive of Sanofi-Aventis, is sending the
management of the biotech company Genzyme in making public his $18.5
billion offer to buy it.

Go to Article from Reuters Breakingviews:
http://www.nytimes.com/2010/08/31/business/31views.html?dbk

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http://dealbook.blogs.nytimes.com/?p=280145&dlbk&emc=dlbk

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-----

BHP Billiton denied speculation on Monday that it planned to sell any
of Potash Corp.'s assets if it succeeds with its $38.6 billion hostile
bid for the world's largest fertilizer producer.

Go to Article from Reuters:
http://www.reuters.com/article/idUSTRE67G1R620100830

Read More
http://dealbook.blogs.nytimes.com/?p=280099&dlbk&emc=dlbk

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-----

The days of being able to pick up failed financial institutions on the
cheap are coming to an end, despite a high number of bank failures this
year.

Go to Article from The Wall Street Journal (Subscription Required):
http://online.wsj.com/article/SB10001424052748704323704575461681180655898.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280097&dlbk&emc=dlbk

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-----

Newcrest Mining's $8 billion-plus acquisition of Lihir Gold is creating
a new top-tier of Australian gold producers, which are already being
sized up for takeovers, Reuters reported.

Go to Article from Reuters:
http://www.reuters.com/article/idUSTRE67U0F920100831?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280029&dlbk&emc=dlbk

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3. Investment Banking: Lenders Back Off of Environmental Risks
----------------------------------------

Some large lenders are taking a stand on industry practices -- like
mining and deforestation -- that they regard as risky to their
reputations.

Go to Article from The New York Times:
http://www.nytimes.com/2010/08/31/business/energy-environment/31coal.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=279981&dlbk&emc=dlbk

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-----

No client is too small for Goldman Sachs Group these days, even a
company with no revenue that's owned by a hedge fund specializing in
penny stocks.

Go to Article from Reuters:
http://www.reuters.com/article/idUSTRE67U1LZ20100831?dbk

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http://dealbook.blogs.nytimes.com/?p=280151&dlbk&emc=dlbk

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-----

Marketing campaigns aimed at reminding the world's 1.6 billion Muslims
to follow the teachings of Prophet Muhammad that supposedly ban
receiving interest have increased as the global economy recovers this
year.

Go to Article from Bloomberg News:
http://www.bloomberg.com/news/2010-08-30/banks-step-up-ramadan-marketing-campaigns-to-spur-growth-islamic-finance.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280081&dlbk&emc=dlbk

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-----

HSBC said Tuesday that it has sold its last United States auto finance
businesses to Santander for about $3.56 billion in cash, completing its
exit from a market that cost it billions during the financial crisis,
The Associated Press reported.

Go to Article from The Associated Press via The New York Times:
http://www.nytimes.com/aponline/2010/08/31/business/AP-EU-Britain-HSBC-Santander.html?dbk

Go to Santander Press Release:
http://www.santander.com/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1265282266427&cachecontrol=immediate&ssbinary=true&maxage=3600

Read More
http://dealbook.blogs.nytimes.com/?p=280011&dlbk&emc=dlbk

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4. Private Equity: Candover to Wind Up Funds
----------------------------------------

Candover Investments said it will wind itself up, sealing the fate of
one of the buyout industry's highest-profile victims of the credit
crunch, Reuters reported.

Go to Article from Reuters:
http://www.reuters.com/article/idUSLDE67Q0PZ20100831?dbk

Go to Candover Statement:
http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10630011

Read More
http://dealbook.blogs.nytimes.com/?p=280161&dlbk&emc=dlbk

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-----

Wilbur Ross's Assured Guaranty is alone in the municipal bond insurance
market, since Warren Buffett stopped Berkshire Hathaway from backing
new issues. But Mr. Ross's monopoly won't guarantee higher profits.

Go to Article from Bloomberg News:
http://www.bloomberg.com/news/2010-08-31/ross-may-find-profit-elusive-pursuing-muni-bond-insurance-buffett-avoids.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280067&dlbk&emc=dlbk

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-----

Acquisitions in the United States power industry surged more than
20-fold by value in the first eight months of the year. Advisers say to
expect more deals as buyers like Blackstone Group bet that electricity
prices will rise with economic recovery.

Go to Article from Bloomberg News:
http://www.bloomberg.com/news/2010-08-31/u-s-power-company-acquisitions-surge-as-blackstone-nrg-hunt-for-bargains.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280041&dlbk&emc=dlbk

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-----

Ronald W. Burkle has responded in a sharply worded letter to Barnes &
Noble's criticism of his investing record and his slate of candidates
for the company's board.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/30/burkle-no-plan-to-take-control-of-chain/

Go to Yucaipa Statement:
http://www.businesswire.com/news/home/20100830005565/en/Barnes-Nobles-Misstatements-Yucaipa-Attempt-Deflect-Attention

Read More
http://dealbook.blogs.nytimes.com/?p=279835&dlbk&emc=dlbk

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5. Hedge Funds: Funds Move to Halt Ambac Asset Grab
----------------------------------------

Hedge funds including King Street Capital and Stonehill Capital
Management filed a motion seeking to prevent Ambac Financial Group from
taking assets out of a bond-insurance unit.

Go to Article from Bloomberg News:
http://www.bloomberg.com/news/2010-08-31/hedge-funds-seek-to-block-payments-in-court-from-ambac-s-insurance-unit.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280121&dlbk&emc=dlbk

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-----

Even some of the savviest hedge fund managers got burned in 2008 by
sticking with their hot stocks for too long as the market tumbled,
Reuters writes.

Go to Article from Reuters:
http://www.reuters.com/article/idUSTRE67T3OL20100830?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280017&dlbk&emc=dlbk

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6. I.P.O.s/Offerings: A Year of Disappointing I.P.O.'s Angers Investors ----------------------------------------

The woeful state of this year's market for initial public offerings is
provoking anger among investors and calls that companies' stock is
being issued with unrealistic valuations, The Financial Times reported.
Go to Article from The Financial Times (Subscription Required):
http://www.ft.com/cms/s/0/3c6cc16c-b46b-11df-8208-00144feabdc0.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280157&dlbk&emc=dlbk

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-----

In its first implementation of the Dodd-Frank law, the Commodity
Futures Trading Commission said Monday that it had published a new set
of so-called final rules to regulate the retail foreign exchange
market.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/31/c-f-t-c-issues-new-forex-trading-rules/

Go to C.F.T.C. Statement:
http://www.cftc.gov/PressRoom/PressReleases/pr5883-10.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280073&dlbk&emc=dlbk

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-----

Stocks fell Tuesday in Europe and Asia, led by a 3.6 percent decline in
Tokyo, as worries about the global economy weighed on banks and a
strengthening yen hit manufacturers in Japan.

Go to Article from The New York Times:
http://www.nytimes.com/2010/09/01/business/01markets.html?dbk

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http://dealbook.blogs.nytimes.com/?p=280115&dlbk&emc=dlbk

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-----

Hewlett-Packard said Monday that its board approved the buyback of an
additional $10 billion of shares to boost investor confidence as it
finds itself involved in a bidding war for high-end data storage
company 3Par.

Go to Article from Reuters via The New York Times:
http://www.nytimes.com/reuters/2010/08/30/business/business-us-hewlettpackard-buyback.html?dbk

Go to Hewlett-Packard Press Release:
http://www.hp.com/hpinfo/newsroom/press/2010/100830c.html

Read More
http://dealbook.blogs.nytimes.com/?p=279999&dlbk&emc=dlbk

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7. Venture Capital: The Google Deal Machine
----------------------------------------

Google has now announced acquisitions of 25 companies in the 12 months
since its chief executive, Eric Schmidt, said he expected to do a deal
at least once a month.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/30/the-google-deal-machine/


In its effort to challenge Facebook, Google has become a social
butterfly. The latest proof of that is Google's acquisition of
SocialDeck, a maker of social games for mobile phones.

Go to Article from VentureBeat:
http://games.venturebeat.com/2010/08/30/social-butterfly-google-buys-mobile-game-developer-socialdeck/?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280057&dlbk&emc=dlbk

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-----

IContact, a provider of e-mail marketing services like newsletter
creation and distribution, just raised $40 million in its second round
of funding, which was spearheaded by JMI Equity.

Go to Article from VentureBeat:
http://deals.venturebeat.com/2010/08/30/icontact-funding/?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=280051&dlbk&emc=dlbk

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8. Legal: Warren's Fate Is Gauge of Wall St. Overhaul
----------------------------------------

This autumn, Elizabeth Warren, a contender to become the top U.S.
consumer financial regulator, could become a focal point in a political
debate over how far government should go to rein in the financial
sector and other corporate interests.

Go to Article from Reuters via The New York Times:
http://www.nytimes.com/reuters/2010/08/30/business/business-us-financial-regulation-warren.html?dbk

Read More
http://dealbook.blogs.nytimes.com/?p=279993&dlbk&emc=dlbk

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-----

The Chinese government ran an enormous help-wanted advertisement on
Monday seeking professional managers for some of its biggest
state-controlled companies, a move that apparently reflected
unhappiness with the companies' current performance.

Go to Article from The New York Times:
http://www.nytimes.com/2010/08/31/world/asia/31hire.html?dbk

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http://dealbook.blogs.nytimes.com/?p=280083&dlbk&emc=dlbk

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-----

Donald Kohn, vice chairman of the Federal Reserve, will take his
central banking expertise to the Brookings Institution after he retires
this week from four decades at the Fed, Brookings announced on Monday.

Go to Article from Reuters via The New York Times:
http://www.nytimes.com/reuters/2010/08/30/business/business-us-usa-fed-kohn.html?dbk

Go to Brookings Press Release:
http://www.brookings.edu/media/NewsReleases/2010/0830_kohn.aspx

Read More
http://dealbook.blogs.nytimes.com/?p=280005&dlbk&emc=dlbk

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-----

Hewlett-Packard has agreed to pay $55 million to settle kickback
allegations related to federal government contracts, the U.S. Justice
Department said on Monday.

Go to Article from Reuters via The New York Times:
http://www.nytimes.com/reuters/2010/08/30/business/business-us-hewlettpackard-settlement.html?dbk

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http://dealbook.blogs.nytimes.com/?p=279987&dlbk&emc=dlbk

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-----

Christoper R. Conte, a longtime lawyer in the Securities and Exchange
Commission's enforcement unit, is leaving the agency to join Steptoe &
Johnson.

Go to Item from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/30/s-e-c-lawyer-leaves-for-steptoe/

Read More
http://dealbook.blogs.nytimes.com/?p=279925&dlbk&emc=dlbk

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-----

And in today's Morning Take-Out:

--Immigrants to the rescue
--A beginner's guide to Twitter
--Mike Mayo doesn't trust Citi

Go to Morning Take-Out from DealBook:
http://dealbook.blogs.nytimes.com/2010/08/31/morning-take-out-76/

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http://dealbook.blogs.nytimes.com/?p=280131&dlbk&emc=dlbk

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