Screen Survivors

Disney plans major expansion of Hong Kong theme park The $450-billion, five-year project in association with the Hong Kong government will add three new theme areas and boost the total park area by 23% in a bid to jolt sagging performance. The Walt Disney Co. and the Hong Kong government said today that they have agreed to a major expansion of the Hong Kong Disneyland theme park, a move that would boost an attraction that has struggled to meet expectations since it was opened in 2005. Source: L.A. Times - Business | 1 Jul 2009 | 7:00 am Consumer confidence falls in June NEW YORK -- A private research group is reporting this morning that consumers' confidence in the economy has fallen unexpectedly in June as shoppers fret about job security. Source: L.A. Times - Business | 1 Jul 2009 | 7:00 am Queen faces Treasury showdown over plan to keep spending The Queen will have to ask for a 150 per cent increase in the Civil List to fulfil the Palace’s intentions of keeping spending at current levels. Source: Latest Business News from Times Online | 30 Jun 2009 | 11:58 pm Bernard Madoff gets 150 years in prison A judge yesterday sentenced Bernard Madoff to the maximum term of 150 years in prison for the biggest swindle in the history of Wall Street. Source: Latest Business News from Times Online | 30 Jun 2009 | 11:53 pm Flamboyant Financial Felons Even after he scammed millions from investors, some people still heart Conrad Black. gordasm/flickr   Bernie Madoff, who was sentenced to 150 years in prison yesterday, may be the mastermind behind America's biggest Ponzi scheme, but he's certainly not the only person to run a scam for millions of dollars. Financial corruption has been around as long as people have been making money. And some of the corrupt have had some pretty quirky personalities. Lord Conrad Moffat Black, Baron of Crossharbor This flamboyant formerly-Canadian newspaper baron got his start by selling stolen exam papers at his upper-class private school. He eventually gained control of Hollinger International, a company that published London's Daily Telegraph, the Chicago Sun-Times, the Jerusalem Post, the National Post, and hundreds of community newspapers. At one point, he gave up his Canadian citizenship to become a British lord, and was known for excessive rants about how the rich were better and smarter than the poor. Richard Nixon is one of his lifelong heroes. Black used Hollinger as his own personal bank account for extravagant purchases and travel--he owned houses and apartments in Palm Beach, Toronto, on Park Avenue in New York, and in Kensington in London. His company leased a corporate jet for $3 million a year, which he used for personal travel. His wife, Barbara Amiel, billed $2,463 in handbags and $2,785 in opera tickets to the company. Once investors and the SEC found out, they weren't very happy. After a press-heavy trial in 2007, he was found guilty of three counts of mail and wire fraud and one count of obstruction of justice. Memorable Quote: "I have no doubt that mothers in America use my name to frighten their children into finishing their vegetables." Where He Ended Up: Black was sentenced to 78 months in jail and is currently incarcerated at the Coleman Federal Correctional Complex in Florida. He's since appealed to the Supreme Court, but a decision isn't expected until 2010. Rene Rivkin An Australian businessman and stockbroker who was obsessed with the market, he got into the industry when he was 14 and was accidentally allocated shares in the float of a broadcasting company. Rivkin became famous for the Rivkin Report, a publication that would advise what stocks to buy and sell. At his height, he bragged that all of his employees were jealous of one another -- because they were all in love with him. In April 2003, he was found guilty of insider trading after buying 50,000 shares in the airline Qantas after finding out about an impeding merger between Qantas and Impulse Airlines. During his time in jail, a fellow detainee was paid by The Sun-Herald to smuggle in a cellphone camera and take photos of Rivkin while he was sick. After his sentence, he was banned from stockbroking for life. Memorable Quote: On getting a tumor: "It's not that I thought I was immortal but that I could never imagine the world without me." Where he ended up: The stockbroking ban took a heavy toll on Rivkin, and he committed suicide at his mother's home in May of 2005. Horatio Bottomley This British financier founded the Financial Times and eventually became a member of parliament -- but he scammed with the best of them. In the mid-1800s, he made a name for himself by promoting Australian gold mining projects, some of which didn't actually have any gold. He later invested in the stock market, and founded FT in 1888. He was elected to parliament in 1906, but was thrown out in 1912 after being charged of conspiracy to defraud, leading to his bankruptcy. From there, he founded a patriotic, anti-German, journal called the John Bull. He used it to create the John Bull Victory Bond Club, which was supposed to be a way for small savers to lend money to the government, getting prizes instead of interest. He made about 900,000 British Pounds (about 160 million Pounds today), and spent that on expensive living, horse racing, and women. But when the scam went bust after World War I ended and all of his bondholders wanted their loans back. Bottomley was sentenced to seven years in prison in 1921. After getting out, he tried to start a new newspaper, but it went bust -- and he went bankrupt again. He spent the early 1930s travelling the UK as a one man show, where he rambled about how great the old days were. It flopped, and he went bankrupt a third time. Memorable Quote: "Gentlemen: I have not had your advantages. What poor education I have received has been gained in the University of Life." Where he ended up: After his last bankruptcy, a destitute Bottomley turned to charity to survive. He died in 1933 » E-Mail This     » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Jun 2009 | 3:30 pm It's Quiet. Too Quiet. As you're aware, today is AIG's annual shareholder meeting. It's being held at the 72 Wall Street building, adjacent to the insurer's 70 Pine Street headquarters and as of just past ten, we're told there's been nary a peep or sighting of protesters in the area. The only people camped outside are reporters, looking lost. Does no one care anymore? Not even the Pink Ladies? We don't blame them, and this isn't the first time they've failed to bring their A-game, but we'd think today of all days would've been identified as the Big Moment. And yet, it's looking like even the PL's can't get it to raise a stink or poster board. We're told Hank Greenberg does have something planned, but it will require the assistance of able-bodied men to rig him up in a harness with the intention of flying across the stage, Snowflake in tow, and so far he's got no volunteers and the damn dog won't get into his matching latex costume. Earlier: See You At The Guillotine Source: Dealbreaker | 30 Jun 2009 | 3:19 pm UPS and Ford extend logistics contract UPS Inc., the world's largest shipping carrier, said Tuesday it has extended a contract to deliver new Ford Motor Co. vehicles from assembly plants to dealerships in the U.S., Canada and... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:57 pm Stock selloff speeds up The stock selloff accelerated Tuesday morning as a weak consumer confidence report -- and falling oil prices and equities -- gave investors a reason to retreat on the last day of the quarter. Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:54 pm Protesters demand mortgage help from loan firms Protests are planned in more than a dozen cities across the country to demand that a group of mortgage companies who benefited from federal bailout money participate in a government program Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:51 pm Protesters demand mortgage help from loan firms (AP) AP - Protests are planned in more than a dozen cities across the country to demand that a group of mortgage companies who benefited from federal bailout money participate in a government program designed to prevent foreclosures. Source: Yahoo! News: Business | 30 Jun 2009 | 2:51 pm Tech Stocks: Techs retreat led by Nvidia, Yahoo Technology stocks were modestly higher Tuesday morning on gains from the chip sector. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:51 pm Ten could be charged in Madoff fraud: source (Reuters) Reuters - Ten or more people associated with multibillion dollar swindler Bernard Madoff could face criminal charges in investigations in the coming months or beyond, a law enforcement source said on Tuesday. Source: Yahoo! News: Business | 30 Jun 2009 | 2:50 pm Stocks down on dip in consumer confidence (AP) AP - Investors are adding consumer confidence to their growing list of things to worry about. Source: Yahoo! News: Stock Markets News | 30 Jun 2009 | 2:49 pm The Ratings Game: Barclays boosts FedEx on valuation, cost cutting Analyst warns investors on the 'sidelines' they are underestimating the shipping giant's potential to profit from its effort to make the company leaner. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:49 pm London Markets: British stocks decline on quarter's final day British shares are steady on Tuesday, the last day of the second quarter. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:49 pm Airline Stocks: Airline stocks dip; analyst lowers '09 outlook Airline stocks are in the red in early activity after a Wall Street brokerage firm lowers its industry forecast for the year, led by the parent companies for American and United airlines. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:49 pm Stone Mountain Georgia Summer Escape Packages Starting at $179 ATLANTA, June 30 /PRNewswire/ -- Discover great value and adventure with a Stone Mountain Escape Package offered by the Evergreen Marriott Conference Resort near Atlanta. Simply... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:49 pm Consumer confidence falls in June Read full story for latest details. Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:48 pm Gloomy U.S. consumers clip housing recovery hopes (Reuters) Reuters - U.S. consumer confidence took an unexpectedly steep slide in June, figures released on Tuesday showed, suggesting the 18-month-long recession had yet to loosen its grip on the economy. Source: Yahoo! News: Business | 30 Jun 2009 | 2:48 pm Small crowd gathers for AIG annual meeting Shareholders are getting a chance to voice their opinions on American International Group Inc.'s future at the embattled insurer's annual meeting. CEO Edward Liddy began the meeting at... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:48 pm Madoff Victims Called Out With the flood of tales of heartbreak and financial ruin from King Ponz still coming in, less than 24 hours after Bernie learned what sentence he will be appealing, someone stepped up to the plate and called the Madoff victims "greedy". In a Squawk Box Europe interview, Hugh Hendry, chief investment officer at Eclectica, fought the urge to call Madoff investors flat out stupid in favor of greedy sheep who didn't do their homework. "I'm sympathetic for people losing money but I think this pejorative term of being greedy still applies. There was an implicit greed in not questioning and just accepting unnatural returns." No pity parties at the Hendry estate any time soon. Sponsored Topics: Bernard Madoff - Business - Squawk Box Europe - Investment - Sheep Source: Dealbreaker | 30 Jun 2009 | 2:48 pm Hyundai offers $1.49 gas guarantee for buyers Hyundai said Tuesday that customers in the U.S. who buy or lease its vehicles by Aug. 31 will receive a gas card that lets them buy fuel at $1.49 a gallon for a year, a promotion to win... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:47 pm GM makes case for 'new GM' Troubled automaker General Motors was set Tuesday to press a bankruptcy judge to approve its plan to leave its debt behind as it sells its preferred assets to a "new GM." Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:45 pm Dow, S&P off 1 percent after confidence data (Reuters) Reuters - Stocks extended losses on Tuesday, with the Dow industrials and the S&P 500 down more than 1 percent after data showed consumer confidence fell in June following a sharp increase in May. Source: Yahoo! News: Stock Markets News | 30 Jun 2009 | 2:45 pm Dow, S&P off 1 percent after confidence data (Reuters) Reuters - Stocks extended losses on Tuesday, with the Dow industrials and the S&P 500 down more than 1 percent after data showed consumer confidence fell in June following a sharp increase in May. Source: Yahoo! News: Business | 30 Jun 2009 | 2:45 pm Europe Markets: Europe shares drop on last day of strong quarter European shares lack bite on the last day of a strong quarter. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:44 pm CORRECT: Jet crashes into Indian Ocean A Yemen Airways jet carrying 153 passengers crashes in the Indian Ocean near the Comoros islands overnight, marking the second major crash involving Airbus-manufactured aircraft in a month. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:43 pm Economic Report: U.S. home prices down in April: Case-Shiller U.S. home prices fell in April, but overall annual declines are slowing, according to the latest national Case-Shiller home price index. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:43 pm Futures Movers: Crude falls on last day of strong quarter Crude-oil futures pull back toward the $71-a-barrel mark, moderating after earlier touching an eight-month high above $73. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:43 pm Pirate Bay site sold to game firm Popular file-sharing site The Pirate Bay has been sold to a Swedish gaming company GGF. Source: BBC News | Business | World Edition | 30 Jun 2009 | 2:41 pm Bernie's Not Alone In the wake of Bernard Madoff's sentencing yesterday, the AP reports that federal authorities have begun an investigation into ten of Madoff's associates. Up until now, only two people have faced criminal charges -- Madoff himself, and an accountant, David G. Friehling, who is accused of aiding in the fraud. There are no details on who the ten are, but it appears the circle of blame for the massive Ponzi scheme is about to get wider. » E-Mail This     » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Jun 2009 | 2:41 pm Energy Stocks: Energy shares on the rise to close out a down June Shares of natural-gas producers and oil-service set the pace for gains in the final trading day of June and the first half, with the gains coming on the heels of a rash of deal making in the energy sector. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:40 pm Iraq oil auction fizzles The first international bidding process in more than 30 years for development rights to some of Iraq's oil fields has finished, with only one field being awarded. Iraq had offered six... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:38 pm Sharp contraction for UK economy The UK economy contracted 2.4% in the first quarter of 2009, its biggest decline in 51 years, the latest data shows. Source: BBC News | Business | World Edition | 30 Jun 2009 | 2:35 pm How Natori became a lingerie powerhouse Josie Natori followed her business dreams from the Philippines to Wall Street. But after nine years as a banker, she needed a more creative outlet. In 1977 she launched a lingerie company with an East-meets-West flair. Today her brand includes four intimate-apparel lines, as well as a ready-to-wear clothing collection, home and bath products, eyewear and fragrance. Natori, 62, shared her story with Fortune Small Business in her Manhattan showroom. Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:35 pm Oil companies reject Iraq's terms Several of the companies bidding for contracts to operate Iraq's oil and gas fields reject the oil ministry's terms. Source: BBC News | Business | World Edition | 30 Jun 2009 | 2:34 pm Bond Report: Treasurys down after trio of economic reports Treasury prices fall, pushing 10-year yields up for the first time in four days, after reports show the pace of home-price declines may be slowing and manufacturing data comes in surpisingly strong. Source: MarketWatch.com - Top Stories | 30 Jun 2009 | 2:34 pm Newbury Piret & Co. Announces Peter Murphy of Elite Storage Systems Wins Ernst & Young Entrepreneur Of The Year(R) Award BOSTON, June 30 /PRNewswire/ -- Newbury Piret & Co., Inc. is pleased to announce that its client, Peter Murphy, Chairman and CEO of Elite Storage Solutions, Inc. has been... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:33 pm Consumer confidence slides in June NEW YORK (Reuters) - U.S. consumer confidence fell in June after two straight months of gains. Source: Reuters: Business News | 30 Jun 2009 | 2:32 pm TBCToday.com Issues Hot Stocks In The Market Today: HD, NVDA, XLE, URE, BSX, F ROCHESTER, N.Y., June 30 /PRNewswire/ -- href="http://www.tbctoday.com/">TBCToday.com is pleased to offer its stock alerts service to the investing community. Investors... Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:32 pm Oil falls to around $70 as dollar gains LONDON (Reuters) - Oil fell to around $70 a barrel on Tuesday, pressured by a stronger U.S. dollar and falling equities after weak U.S. consumer confidence data. Source: Reuters: Business News | 30 Jun 2009 | 2:31 pm Parents are Considering Holding “Swine Flu Parties” CNN reports on how experts are telling moms not to hold “swine flu parties”: Health experts are warning parents against holding “swine flu parties” in the hope of infecting their children with the H1N1 virus. Talk of swine flu parties has emerged on Internet forums. The idea is that exposing a child to the H1N1 virus while it remains relatively mild will give the child immunity if the virus returns in a more virulent form later on. The idea is an extension of chicken pox and measles parties that were once a popular way of exposing children to those diseases so that they might acquire resistance to subsequent infections. But health officials have been quick to condemn the idea. Speaking at a conference, Dr Richard Jarvis, chairman of the British Medical Association’s public health committee, said “I have heard of reports of people throwing swine flu parties. I don’t think it is a good idea.” This reminds me of chicken pox parties, where parents send their children to catch to the virus. The idea is that a) the virus is relatively harmless when kids are young, so why not expose them to it early?, and b) children can avoid potentially harmful chicken pox vaccinations. The swine flu party idea, on the other hand, doesn’t make much sense at all. How do parents know that it will become enough of a standard illness that it’s worth exposing kids to it? Plus, there’s no vaccination yet. I feel bad for the kids. Source: Business Pundit | 30 Jun 2009 | 2:29 pm Magna-Opel deal in doubt BRUSSELS/FRANKFURT (Reuters) - Efforts to save two leading European carmakers took a twist on Tuesday that could change the ownership of both crisis-hit General Motors Corp's Opel and German sportscar maker Porsche. Source: Reuters: Business News | 30 Jun 2009 | 2:29 pm Stocks down on dip in consumer confidence NEW YORK -- Stocks are reversing early gains and heading lower after a report that consumer confidence fell unexpectedly in June. Source: L.A. Times - Business | 30 Jun 2009 | 2:29 pm Ahrens Sees 10-Year Treasury Yield at 3.7% by Year's End Source: Bloomberg - All Podcasts | 30 Jun 2009 | 2:27 pm Home prices drop, but at a slower rate Home prices continued to tumble in April, falling 18.1% from a year earlier -- but the change from March narrowed sharply, indicating that housing markets may be starting to turn. Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:25 pm Wall Street falls on consumer confidence data NEW YORK (Reuters) - Stocks turned negative on Tuesday after data showed consumer confidence fell in June after a sharp rise in May. Source: Reuters: Business News | 30 Jun 2009 | 2:25 pm Jobless rates rise in all US metro areas in May Unemployment rates rose in all the largest U.S. metropolitan areas for the fifth straight month in May. The Labor Department says jobless rates in May rose from a year earlier in all 372 Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:25 pm Aberdeen Global Income Fund, Inc. Announces Performance Data and Portfolio Composition PHILADELPHIA, June 30 /PRNewswire-FirstCall/ -- Aberdeen Global Income Fund, Inc. (the "Fund") (NYSE AMEX: FCO), a closed-end bond fund, announced today its performance Source: RSS feed - channel BNewsBusiness | 30 Jun 2009 | 2:21 pm Melissa Francis Is Looking For A 'Pool Boy' Type Melissa Francis has put the call out (13:30) that she wants a young, hot, not so smart co-host. A "pool boy," basically. Sort of unclear to us is why current gal-pal Larry Kudlow doesn't fit this description, or why Mel couldn't dip into the veritable treasure trove of pool boys at CNBC, such as Mark Haines, but no matter. If you've got a headshot and an interest in getting paid to be a piece of meat alongside MF, let us know and we'll put you in touch. Whether you're an out of work CEO, down on his luck fund manager, or gainfully employed financial services hack, this is a dream gig not to be passed up. For those not willing to don a thong on camera, Charlie Gasparino is also said to be looking for a PB to fill a vacancy left by his last assistant. Pretty solid gig, though you'll have to be comfortable getting your man parts near a meat slicer. Not to worry, there will be an intensive two-week training period that will get your skills up to snuff and probably haunt you for all eternity (think having flaming hot sticks of sopressat' thrown at you by a chain smoking Maude Gasparino, seated in a dark corner, shouting "dodge it! dodge that shit!"). Sponsored Topics: CNBC - Mark Haines - Melissa Francis - Lawrence Kudlow - Larry Kudlow Source: Dealbreaker | 30 Jun 2009 | 2:20 pm Dumas Sees `Significant' Headwinds in U.K. Recovery Source: Bloomberg - All Podcasts | 30 Jun 2009 | 2:17 pm GE Taking Decisive Step Into Stem Cells (GE, GERN, STEM, ASTM) General Electric Company (NYSE: GE) is taking a bold and controversial new step into the field of embryonic stem cell research.  The company has signed an exclusive license and alliance pact with Geron Corporation (NASDAQ: GERN).  The aim here is to develop and commercialize cellular assay products derived from human embryonic stem cells for use [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 2:17 pm Dumbest moments in business (so far!) Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:16 pm Shell should end Nigeria 'abuse' Amnesty International urges the new head of oil firm Shell to end years of pollution and environmental damage in Nigeria. Source: BBC News | Business | World Edition | 30 Jun 2009 | 2:11 pm Honda's new hybrid disappoints Honda's new hybrid-only Insight, touted as a low-cost competitor to the Toyota Prius was dealt a major blow Monday after it failed to get a thumbs up from the influential magazine Consumer Reports. Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 2:04 pm Pace of home price declines slows in April NEW YORK (Reuters) - Prices of U.S. single-family homes fell in April from March but the pace of the decline moderated, suggesting stability is emerging in some regions, according to Standard & Poor's/Case Shiller home price indexes released on Tuesday. Source: Reuters: Business News | 30 Jun 2009 | 1:57 pm Chicago Purchasing Managers, Prelude to a Quiet ISM? Chicago Purchasing managers is frequently used as a preliminary vote for the national report from the Institute of Supply Management.  This morning we saw the Chicago Purchasing Managers come in at 39.9.  That is higher than the 34.9 reading in May, and it is very close to 40.0 that Bloomberg listed as its consensus estimate.  [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 1:54 pm Home prices post 18.1% annual drop, but market appears to be stabilizing It is the third straight month the decline was not a record. There is a clear trend home prices declines are moderating... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 1:53 pm Home prices post 18.1% annual drop, but market appears to be stabilizing It is the third straight month the decline was not a record. There is a clear trend home prices declines are moderating -- another sign the beleaguered housing market is stabilizing, according to data released today. Source: L.A. Times - Business | 30 Jun 2009 | 1:53 pm Emulex Still May Refuse Higher Offer (ELX, BRCM) Emulex Corporation (NYSE: ELX) has already given an initial response to the higher $11.00 revised offer from Broadcom Corporation (NASDAQ: BRCM).  This is not an outright rebuff, but the company said that its board of directors is following fiduciary duties with the assistance of its financial and legal advisors.  So far it has merely said [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 1:32 pm How does your net worth stack up? Question: Where can I see how my net worth compares to that of other people my age? --Luke, Fort Worth, Texas Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 1:21 pm Lloyds to cut 2,100 banking jobs A union says it is "astonished" by the scale of job losses at Lloyds as the banking group cuts a further 2,100 jobs. Source: BBC News | Business | World Edition | 30 Jun 2009 | 1:20 pm Deere says 800 employees take buyout offer BOSTON (Reuters) - Deere & Co said on Tuesday that roughly 800 employees -- more than it had expected -- took a buyout from the world's largest maker of agricultural machinery and raised the amount of the charge associated with those departures. Source: Reuters: Business News | 30 Jun 2009 | 1:18 pm 5 steps to a quick home sale 1. You have to seriously undercut the competition Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 1:10 pm Bankruptcy court to rule on "New GM" plan (Reuters) Reuters - General Motors Corp is heading to bankruptcy court on Tuesday to seek approval to sell its assets to a "New GM" in a plan to reinvigorate the automaker under U.S. government ownership. Source: Yahoo! News: Business | 30 Jun 2009 | 1:08 pm Bankruptcy court to rule on "New GM" plan NEW YORK (Reuters) - General Motors Corp is heading to bankruptcy court on Tuesday to seek approval to sell its assets to a "New GM" in a plan to reinvigorate the automaker under U.S. government ownership. Source: Reuters: Business News | 30 Jun 2009 | 1:08 pm China 'agrees huge Zimbabwe loan' China agrees to give Zimbabwe a loan of $950m (£573m) to help revive its wrecked economy, says Prime Minister Tsvangirai. Source: BBC News | Business | World Edition | 30 Jun 2009 | 12:58 pm Opening Bell: 06.30.09 Dimon Still Polishing JPMorgan Pay Packages (NYP) 1. Nothing to write home about here-- same raising of base pay everyone else is doing. 2. Bless the headline writers at the Post. Someone came to work today. 10 more could be charged in Madoff scam (AP) No names specified but surely you can come up with some. UBS Selling Park Avenue Stake (NYP) "This could be the one that pries open the market again. After the peanuts paid for 1540 Broadway and the fact that Deutsche Bank doesn't seem able or willing to unload Worldwide Plaza, a decent number for a big piece of 299 Park would help restore a sense of value." AIG Discloses New Risk on Derivatives Sold to European Banks (Bloomberg) An FYI out of the insurer yesterday "that valuation declines on credit-default swaps sold to European banks could have a "material adverse effect" on the company's results." Putin Urges Russian Banks To Boost Lending (Globe And Mail) And suggested no vacations for Russkie CEOs 'til it gets done. Swiss Bank Shuns Americans As US Compels Disclosure (Bloomberg) UBS, Credit Suisse, etc have told American clients to move their money into "specially created units registered in the U.S., or lose their accounts," hopefully just 'til this whole IRS situation blows over. Ivy League Endowments Finally 'Dumb' (WSJ) "A lesson from this crisis is that following what the larger guys have done is not necessarily road map to success," says Daniel Jick, head of HighVista Strategies, a Boston-based firm that manages endowment money for small schools. Harvard, Yale, Stanford, Princeton, and MIT all getting ready for declines of 25% to 30% for the fiscal year. A Little Recognition For The Buse's Big Day (MelissaCNBC) If Kudlow were on Twitter he'd do the same. Sponsored Topics: Credit Suisse - Deutsche Bank - Business - UBS AG - Globe And Mail Source: Dealbreaker | 30 Jun 2009 | 12:45 pm World stocks awaiting economic recovery clues (AP) AP - European stock markets fell modestly Tuesday ahead of an expected subdued open on Wall Street as investors awaited key data later this week for more clues about the speed of any potential recovery. Source: Yahoo! News: Stock Markets News | 30 Jun 2009 | 12:39 pm Analyst Looks More Positive on Utilities (AEP, DUK, EXC, PCG, PEG, UTL, XEL, ED, FPL, PNW, PGN, SCG, SO, IDU) Oppenheimer is making a new call in the utility sector.  It looks a bit mixed between positive and somewhat cautious calls this morning, but it is important to note that many of these utilities are still in the lower half of the trading range of their last 52-weeks and some are significantly off of highs. The [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 12:39 pm Pension closures 'save billions' Employers in the UK have saved themselves £4.5bn a year by closing their final-salary pension schemes. Source: BBC News | Business | World Edition | 30 Jun 2009 | 12:36 pm Top Analyst Downgrades (ACLI, AMR, GPS, NOK, SO, HOT) These are some of the top analyst downgrades or cautious calls we have seen early this Tuesday morning: American Commercial Lines (ACLI) Cut to Market Perform at Morgan Keegan. AMR Corp. (AMR) Cut to Sell at Argus. Gap Inc. (GPS) Started as Neutral at Robert W. Baird. Nokia (NOK) Started as Underperform at BMO Capital Markets. Southern Co. (SO) Cut [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 12:34 pm Canadian mint calls in the Mounties over missing gold An external audit of the Royal Canadian Mint (RCM) has failed to find millions of dollars' worth of "missing" gold. Source: BBC News | Business | World Edition | 30 Jun 2009 | 12:31 pm Chinese deal for GM's Hummer 'still on' GM has insisted that a Chinese takeover of Hummer is continuing despite speculation that the Chinese government will block the deal. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 12:24 pm Amazon.com ends commission program in RI (AP) AP - Amazon.com has cut ties with Rhode Island Web sites that make referrals to the online retailer because a law designed to collect sales taxes on these transactions will soon come into force, the Providence Journal reported Tuesday. Source: Yahoo! News: Business | 30 Jun 2009 | 12:19 pm Magna-Opel deal in doubt (Reuters) Reuters - Efforts to save two leading European carmakers took a twist on Tuesday that could change the ownership of both crisis-hit General Motors Corp's Opel and German sportscar maker Porsche (PSHG_p.DE). Source: Yahoo! News: Business | 30 Jun 2009 | 12:17 pm Iraq drives hard bargain at historic oil sale BAGHDAD (Reuters) - Iraq auctioned contracts to run eight giant oil and gas fields Tuesday as it sought to take charge of its own reconstruction after six years of war, but oil companies were reluctant to pay what it asked. Source: Reuters: Business News | 30 Jun 2009 | 12:15 pm Obama’s Volunteer Initiatives Are Economically Bankrupt By John Tamny of RealClearMarkets   Responding to the almost monolithically positive coverage of the Obama administration by the national press, Phil Bronstein, editor-at-large for the Hearst Newspapers, observed recently that the Administration and the reporters covering it should “get a room.” And while USA Today’s account of Barack and Michelle Obama’s “United We Serve” initiative appeared [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 12:12 pm Thinking of Switching Financial Planners? (BusinessWeek Online) BusinessWeek Online - You've got a dirty little secret. During long lunch breaks, or after work when everyone else heads home to their families, you're sneaking out to a secret rendezvous. You know what you're doing is perfectly justified, but you still feel a little bad afterwards. You never thought it would come to this. But here you are -- cheating on your financial planner. Source: Yahoo! News: Business | 30 Jun 2009 | 12:08 pm Lloyds cuts 2100 more UK jobs Unions attack job cuts that bring total to 7000 since Lloyds TSB's controversial takeover of HBOS. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 12:01 pm Beware the reverse-mortgage ripoff Source: Business and financial news - CNNMoney.com | 30 Jun 2009 | 11:53 am The Best Lawyers in Town Source: Business Pundit | 30 Jun 2009 | 11:51 am UK economy shrank at fastest rate in 50 years The British recession was much more severe than first thought in the first three months of the year official figures showed on Tuesday. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 11:40 am Top Analyst Upgrades (AMZN, COH, FDX, IPI, JWN, QCOM, RIMM, URBN) These are Tuesday’s top analyst upgrades and positive research calls we have seen early this morning with more than two hours until the market opens: Amazon.com (AMZN) Raised to Outperform at Cowen. Coach (COH) Started as Outperform at Robert W. Baird. FedEx (FDX) Raised to Overweight at Barclays. Intrepid Potash (IPI) Started as Outperform at RBC. [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 11:33 am House prices rise for second month finds Nationwide The latest survey from Nationwide shows a rise but experts warn market still faces heavy headwinds. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 11:26 am Disney to pump new funds into HK park Walt Disney has agreed to finance a $467m expansion of its struggling theme park in Hong Kong to lure more visitors, following two years of "challenging" negotiations with the territory's government Source: Financial Times - US homepage | 30 Jun 2009 | 11:24 am 'Raising tax is economic madness. Slash the public sector instead' Fundamentalist view: A 50pc rate will not increase the tax take but will drive wealth creators abroad says one of the City's most successful entrepreneurs. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 11:24 am SFO freezes 100m of UK assets in Sir Allen Stanford fraud investigation Serious Fraud Office acts after request from US officials investigating alleged 7bn fraud by the Texan billionaire. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 11:22 am Porsche's state aid bid rejected German carmaker Porsche has its request for a loan from the government turned down. Source: BBC News | Business | World Edition | 30 Jun 2009 | 11:21 am Ailing maharajah Why India's biggest airline is in serious trouble Source: BBC News | Business | World Edition | 30 Jun 2009 | 11:12 am Disney to pay about $450 million to expand Hong Kong Disneyland The park has been criticized for not offering enough, and Shanghai may open a larger competitor. The Walt Disney... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 10:58 am Eurozone suffers deflation for first time Inflation in the 16 countries using the euro turned negative in June for the first time on record with prices falling 0.1pc over 12 months according to an official estimate on Tuesday. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 10:49 am BP and CNPC win Iraqi oil contract The UK and Chinese companies beat ExxonMobil, the US oil company, which had partnered with Petronas, the Malaysian oil company. BP clinched the contract when it agreed to reduce its fee per barrel from $3.99 to $2 Source: Financial Times - US homepage | 30 Jun 2009 | 10:48 am PPI: raising premiums or reducing cover may be unfair FSA warns The City watchdog has expressed concern that consumers with unemployment insurance are not being treated fairly. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 10:18 am The Pirate Bay sold for £4.7m The Pirate Bay's founders are set for a multimillion windfall after selling the controversial filesharing website for 60m Swedish crowns £4.7m. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 10:16 am Comcast (CMCSA) Launches Threat To Wireless Telecom Services Cellular providers including Sprint (S), AT&T (T), and Verizon Wireless (VZ)(VOD) have had the broadband wireless market all to themselves. WiFi offered some modest competition, but its service only works within a few hundred feet of a base station. The 3G broadband wireless systems created by the telephone companies cover entire cities and most major roadways. Comcast (CMCSA), [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 10:10 am Eurozone inflation turns negative Eurozone annual inflation has turned negative for the first time, complicating the job of the European Central Bank as draws a line under emergency measures to tackle continental Europe's recession Source: Financial Times - US homepage | 30 Jun 2009 | 10:03 am Investors put record amount into funds Sales of investment funds rose for the fourth month in a row during May as consumers hunted for higher returns on their cash new figures show. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Jun 2009 | 9:59 am California’s IOU Fever Is Likely To Spread To Other States California has begun to issue IOUs to many state vendors as it grows low on cash. The largest state in America as measured by GDP is up against a $24 billion deficit. According to the FT, “Once the US’s richest state, California now has the dubious distinction of having the worst credit rating in the country.” [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 9:55 am Madoff victims tell how he 'killed our dreams' Miriam Siegman is now reduced to scavenging for food in skips. Source: Latest Business News from Times Online | 30 Jun 2009 | 9:44 am UK economy shrinks at fastest rate for 50 years The UK economy shrank by 2.4 per cent in the first quarter, its fastest rate in more than 50 years and far worse than expected, according to official figures today. Source: Latest Business News from Times Online | 30 Jun 2009 | 9:41 am Another Achilles Heel For Social Networks, Cybercrime On Facebook Facebook is becoming one of the most dangerous places on the internet. According to Reuters, “Scammers break into accounts posing as friends of users, sending spam that directs them to websites that steal personal information and spread viruses.” Since Facebook has, by some measures, more than 200 million members, the problem is extremely serious and could [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 30 Jun 2009 | 9:33 am UK economy shrinks most in 50 years The UK economy shrank by 2.4 per cent and the most in more than half a century in the first quarter, according to revised figures which were much weaker than originally estimated Source: Financial Times - US homepage | 30 Jun 2009 | 9:21 am Wolseley shares rise as chief executive quits Chip Hornsby today quit as chief executive of Wolseley, the struggling building materials group, with immediate effect in the wake of an 80 per cent fall in annual profits and a forced £1 billion rights issue. Source: Latest Business News from Times Online | 30 Jun 2009 | 8:43 am Berlin agrees aid for Arcandor's Quelle BERLIN, June 30 (Reuters) - Shares in insolvent German retailer Arcandor jumped more than 11 per cent on Tuesday after the government agreed to give state aid to Arcandor's stricken mail-order unit Quelle... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 8:32 am HMV soars on market share snatch from rivals HMV, the reinvigorated music store chain and owner of Waterstone's, today reported an 11.5 per cent rise in annual pre-tax profits following the collapse of some of its smaller rivals during the year. Source: Latest Business News from Times Online | 30 Jun 2009 | 8:24 am Slowing UK rail growth hits Arriva shares Passenger growth on Arriva's UK train franchise continued to weaken in the first five months of the year, the bus and rail operator revealed on Tuesday, sending the the shares lower in early trading.However,... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 8:20 am Australian stocks: Market higher on US lead MELBOURNE - The Australian share market ended the financial year by closing higher on Tuesday, driven up by the energy and retail sectors and a positive lead from United States markets. At the 1615 AEST close, the benchmark S&P/ASX200... Source: New Zealand Herald - Business | 30 Jun 2009 | 7:39 am FTSE holds steady after robust house price data London equities held steady on Tuesday, helped by more optimistic data from the UK housing market and support from the resource stocks in line with firmer commodities markets.The FTSE 100 inched 6 points... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:32 am House market stabilises with 0.9% price rise House prices rose by 0.9 per cent in June, the Nationwide Building Society said today, fuelling hopes the property market is beginning to stabilise. Source: Latest Business News from Times Online | 30 Jun 2009 | 7:30 am SEC wants financier's assets frozen before trial (AP) AP - The Securities and Exchange Commission is seeking to permanently freeze the assets of a California financier accused of bilking investors until his fraud trial is over. Source: Yahoo! News: Stock Markets News | 30 Jun 2009 | 7:20 am Shinsei and Aozora set to unveil merger plans Shinsei and Aozora are expected to announce on Wednesday that they plan to merge to create Japan's sixth largest banking group with Y18,000bn ($188bn) in assets.A merger of the two banks would bring together... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:08 am Organic nursery in Silver Lake has a growing clientele Jimmy Williams' Hayground Organic Gardening is catering to recession-weary Angelenos who find savings and solace in planting their own gardens as well as to restaurateurs seeking the best produce. Jimmy Williams planted his first seeds when he was 4 years old. Fifty-three years later, he's still playing in the dirt. Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am Organic nursery in Silver Lake has a growing clientele Jimmy Williams' Hayground Organic Gardening is catering to recession-weary Angelenos who find savings and solace in planting their own gardens as well as to restaurateurs seeking the best produce. ... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:00 am GM to pull out of joint venture with Toyota at California plant General Motors says it and Toyota can't agree on what vehicle to build at the NUMMI plant in Fremont. The move jeopardizes the future of the last vehicle assembly plant in California. America's auto crisis has stretched beyond the Midwest all the way to California. Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am Bernard Madoff gets 150 years in prison Judge Denny Chin imposes the maximum sentence on the financier, saying the multibillion-dollar fraud was 'staggering.' With Bernard L. Madoff sentenced Monday to 150 years in prison, his massive Ponzi scheme is likely to be felt for years as victims struggle to recoup their money, investors treat Wall Street with new suspicion and regulators scramble to crack down on all manner of financial wrongdoing. Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am Amazon.com fights sales-tax plans The Internet retailer jettisons advertising affiliates in two states to avoid taxing its customers there. Overstock.com plans to follow suit. As revenue-hungry states eye Internet retailers as possible sources of new taxes, Amazon.com Inc. is firing back. Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am Bank of America is accused of exploiting Latino immigrant customers Ex-employees, backed by SEIU, say working-class and immigrant clients are urged to sign up for multiple services that carry high interest rates and fees. BofA denies any wrongdoing. Gabby Ornelas, a former teller at the giant Bank of America Corp., remembers the training sessions. And she remembers her marching orders: "Sell, sell, sell." Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am ACE Metrix gauges audience reception of TV ads The company tells companies whether their commercials are good enough, smart enough -- and whether, in fact, people like them. And in real time, too. There's an old saying that half of all money spent on advertising is wasted. The eternal, career-wrecking dilemma for advertisers is that nobody knows which half. Source: L.A. Times - Business | 30 Jun 2009 | 7:00 am Gas prices drop, but Fourth of July driving is expected to as well Retail gasoline prices fall in California and the U.S. for the first time in several weeks. New violence in Nigeria could reverse that quickly. ... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:00 am GM to pull out of joint venture with Toyota at California plant General Motors says it and Toyota can't agree on what vehicle to build at the NUMMI plant in Fremont. The move jeopardizes the future of the last vehicle assembly plant in California. ... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:00 am Amazon.com fights sales-tax plans The Internet retailer jettisons advertising affiliates in two states to avoid taxing its customers there. Overstock.com plans to follow suit. ... Source: RSS feed - channel BNPaperBusiness | 30 Jun 2009 | 7:00 am Jury returns $1.67 billion drug verdict against Abbott NEW YORK (Reuters) - A U.S. federal jury returned a $1.67 billion verdict against Abbott Laboratories in a patent suit brought by Johnson & Johnson related to arthritis treatments, the drug companies said on Monday. Source: Reuters: Business News | 30 Jun 2009 | 6:35 am NZ stocks: Market closes slightly higher Shares limped to a quiet close to mark the end of the financial quarter, despite signs of life on Wall Street and solid gains across the Tasman. A hefty fall in top stock Telecom following announcements on mobile regulation by... Source: New Zealand Herald - Business | 30 Jun 2009 | 6:17 am Currency: Dollar treads water around US65c The New Zealand dollar spent the last day of June treading water around US65c, having regained much of the ground lost during the month. A solid rise in equities on Wall Street, and demand for the euro and Australian dollar, helped... Source: New Zealand Herald - Business | 30 Jun 2009 | 5:35 am Carlyle raises $1bn for Asia growth fund Carlyle Group, the US private equity firm, has raised $1bn for its new growth fund targeting smaller Asian companies, reflecting continuing investor demand for exposure to China and India Source: Financial Times - US homepage | 30 Jun 2009 | 5:22 am 5 Stocks Yielding 4% -- or More (Screens) Dividends are in the dumps. For 11 years ended 2007, the S&P 500 carried a yield of less than 2% compared with a historic average for stocks of closer to 5%. Share prices have plunged since 2007, so the index’s yield should have fattened to 3% or so. Instead, it's on its way to dipping below 2% thanks to financially distressed companies that have slashed payments. S&P reckons dividends this year will hit their lowest percentage of profits since 1938. That said, hundreds of companies pay at least 4% at the moment. That’s about double the average rate offered by banks on one-year certificates of deposit. Of course, CDs offer a guarantee of principal protection, but they come with some unwanted guarantees, too. They are guaranteed not to increase in value beyond their interest payments. The payments themselves are guaranteed not to grow during the life of the CD. If inflation picks up, long-term CDs are almost guaranteed to fall behind in their ability to protect investors’ buying power. A 4% dividend yield, by contrast, can grow over time, offers the potential of capital gains on the side and can help protect against inflation. Of course, all of this depends on the company paying the dividend, and its prospects for prosperity in coming years. Below are five financially strong companies paying more than 4%. Each has a modest valuation and relatively stable sales. Philip Morris International (PM) sells Marlboro and other top cigarette brands in 160 countries outside the U.S. The stock is more expensive than its domestic sibling, Altria (MO), at 14 times forward earnings versus 9. The International company also comes with a smaller dividend: 5.1%, compared with 7.8% for the American company. But those numbers still compare favorably with the broad stock market, and Philip Morris International has limited exposure to lawsuits and better growth prospects than the U.S. tobacco industry. ConocoPhilips (COP) stock trades at less than half its price of a year ago, when Warren Buffett was loading up on shares for his investment vehicle, Berkshire Hathaway (BRK.B). It’s by no means the top performer in the oil and gas industry. Analysts expect the company’s production to flatten for the next few years after an increase of 3% or so this year. To help make up for its weak production outlook, Conoco has been an aggressive acquirer. As a result its debt since 2005 has increased from 19% of capital to 34%. That’s a manageable sum, but it reduces the portion of the company’s cash flow that’s free to be put toward new drilling. All that said, Conoco sells for less than 13 times this year’s pitiful earnings forecast and less than 7 times what Wall Street figures the company might earn next year. Relative to the company’s profits, its 4.5% dividend yield looks plenty affordable. Will Verizon (VZ) get the iPhone next year, once Apple’s exclusivity pact with AT&T (T) runs out? There’s a good chance, judging by Apple's recent announcement that long-awaited data features for its iPhone are now available through most carriers world-wide, but won't be available until later this year through AT&T. The real reason to like Verizon isn’t just that it provides the least-bad cellphone service of a sloppy bunch, but that its stock comes with one of the biggest, affordable dividend yields around: almost 6%. Sales are expected to increase 11% this year, as its flourishing wireless business more than makes up for withering landline accounts. Have a look if you like at details on these and the other two high-yielders below.
Company	Ticker	Industry	Share Price	Price Change YTD (%)	Forward P/E	Yield (%)
Verizon Communications	VZ	Telecom Services	$30.99	-8.6	12.25	5.9
Philip Morris International	PM	Cigarettes	42.61	-2.1	13.79	5.1
Bristol-Myers Squibb	BMY	Drugs	20.96	-9.9	10.92	5.9
H.J. Heinz	HNZ	Food	35.72	-5.0	13.38	4.7
ConocoPhilips	COP	Oil & Gas	41.62	-19.0	13.00	4.5

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The Combined Wendy's and Arby's Looks Appetizing

CONFIDENCE IN THE WENDY'S/ARBY'S GROUP has been shrinking like an overcooked hamburger on a sizzling grill. Declining sales at Arby's, plus the company's reluctance to specify how it will use most of the proceeds from a recent $565 million bond offering, worry investors. Since late April, Wendy's/Arby's stock (WEN) has slid more than 30%, to around $3.70.

But investor Nelson Peltz, who with his partner Peter May owns 22% of the shares, argues that "this is a phenomenal company that is truly misunderstood and was mismanaged for years.... We think the company is significantly undervalued." His assessment isn't based on earnings -- operating net is likely to be just 19 cents a share this year and 28 cents in 2010.

Instead, Peltz's view reflects expected cash flow, measured by earnings before interest, taxes, depreciation and amortization (Ebitda). Based on analysts' forecasts of annual growth, Wendy's/Arby's Ebitda should hit $420 million this year. And, if the company hits its mid-teens growth target, it should generate roughly $555 million in 2011. Historically, the fast-food group's Ebitda multiple is nine to 10 times -- though today, only McDonald's (MCD), which has far outpaced its rivals, rates close to a nine. Wendy's/Arby's fetches almost six.

If investors put a multiple of nine on 2011 Ebitda, as Peltz suggests is reasonable, the company would be valued at $5 billion. After subtracting $1 billion of net debt and dividing by 470 million shares outstanding, the stock theoretically would be worth $8.50. That is a big if. But even a multiple of seven would translate into a $6 stock.

While Peltz's multiple assumption might be aggressive, his operational expectations aren't. They don't include any benefit from putting the company's substantial cash to work or from new products, better marketing or the reintroduction of breakfast slated for late next year.

Peltz and May, both Wendy's/Arby's directors, doubled down on their bet late last year, spending $205 million for 49.4 million shares at $4.15.

This didn't escape the attention of some value investors, including Robert Gebhart, a partner at New York City-based money manager Grisanti Brown & Partners, which owns shares. He contends that, if the stars align, shares could reach $9 in three years.

Wendy's/Arby's was formed last September, when Arby's, then owned by Triarc, an investment company controlled by Peltz and May, merged with Wendy's. When announced, the all-stock deal was valued at $2.86 billion. Wendy's shareholders received 4.25 Triarc shares.

Wendy's was founded 40 years ago in Columbus, Ohio, by Dave Thomas, a food-industry veteran who tried to separate it from the pack by offering better food. Its hamburger patties aren't frozen, and it offered salads before they became a staple at rivals. Wendy's has floundered since Thomas, who had become its public face, died in 2002. Trian, an investment firm run by Peltz and May, bought a 5.5% stake in Wendy's in 2005, when the shares traded mostly in the mid-teens.

Arby's is smaller than Wendy's -- kicking in only about a third of Wendy's/Arby's $3.7 billion of 2008 sales and about 35% of its operating income. Its specialty: roast-beef sandwiches. Last year, Wendy's/Arby's posted a loss of $3.05 a share, in large part on costs related to the merger.

Wendy's/Arby's Chief Executive Roland Smith aims to improve results at the company with $60 million in cost efficiencies and $100 million from boosting the 12% operating margins at Wendy's company-owned stores, which vastly trail franchise stores' 17%. (About 20% of Wendy's are company-operated.) For its part, Arby's should benefit from new products; it's even considering a catering and delivery service for large orders.

Smith hired David Karam as Wendy's president last year. Karam also had bid for Wendy's and was among the larger and more successful franchisees. Pamela Thomas Farber -- daughter of Wendy's founder and the owner of 33 Wendy's in Ohio -- says that she has known Karam all her life, and that now, for the first time since her father died, she has had confidence in corporate management.

The $565 million bond offering, however, is a bone of contention. Out of the proceeds, Wendy's/Arby's will use $132.5 million to repay some of its bank debt. As for the remainder, it has said only that the money will be used for general corporate purposes, meaning anything from working capital to acquisitions to dividends and buybacks.

Some investors fret that the new company didn't need the money. Wendy's/Arby's is expected to generate more than $100 million of free cash flow, and had $137 million of cash and $116 million in investments at the end of the first quarter. Its next payment on notes, $189 million, is not due until 2011; and $250 million of bank loans aren't due until 2012. So Howard Penney, an analyst at Research Edge, calls the bond deal a "head-scratcher."

But Peltz and May stress the importance of financial flexibility in today's environment. "Our philosophy is that when money is available, you take it, and take the risk out of your balance sheet," says Peltz. Losing a few cents per share in earnings from interest expense is worthwhile, he adds, because the extra cash will enable Wendy's/Arby's to do what it wants when it wants.

Smith seems to be focusing on growth. Arby's, he says, could go from 3,500 stores to 5,000, and even Wendy's, with 6,000 stores in the U.S., could add 1,000 without seeing sales cannibalized. The bond deal could help build new stores and refurbish old ones.

Some of the new stores will carry both Arby's and Wendy's under one roof. Several will be open by year end. The company just struck an agreement with a franchisee to build 135 dual-branded stores in nine countries in the Middle East and North Africa during the next 10 years.

The joint stores let the chains leverage their real estate by sharing a parking lot and seating area. In Ohio, one outlet that housed both Wendy's and a Tim Hortons doughnut shop saw sales volume of more than $3 million annually, compared with the $1.4 million at a typical Wendy's or about $1 million at a Hortons. And average margins were three percentage points higher than the average individual operation's, says May.

A new store can provide a 20% return on invested capital, which would justify the recent bond's hefty yield of 10.5%.

Breakfast offers another growth opportunity. About two years ago, the company began its latest attempt at serving breakfast -- but not to raves. (It had unsuccessfully tried it before.) Last year, new managers under Smith pulled breakfast from most Wendy's, depressing same-store sales comparisons. Now, they are developing a new breakfast menu that will appear in some markets in late 2010 and roll out across the country in 2011.

Smith notes that breakfast accounts for about 20% of store revenue at Burger King (BKC) and 25% at McDonald's.

Some investors suspect Trian will direct the company to use some bond proceeds to pay a special dividend or buy back stock. The rumors were inflamed by a recent agreement under which Wendy's/Arby's will pay Trian a quarterly $250,000 fee for Trian's advice on acquisitions, financing, investment banking and initiatives to increase shareholder value. Wendy's/Arby's also will pay Trian a $900,000 fee to assist in selling noncore assets, with a bonus if proceeds exceed expectations. In addition, Wendy's/Arby's invested $75 million with Trian. It plans to take out its money before 2010 and will pay Trian a $5.5 million withdrawal fee. These arrangements make some analysts -- Penney among them -- fear Peltz and May are using Wendy's/Arby's as a cash cow.

But early withdrawal fees are standard in the fund industry, and the advisory fees Wendy's/Arby's pays to Trian will replace fees that the company otherwise would have paid to investment bankers. Trian employs four people in addition to Peltz and May that provide financial services to Wendy's/Arby's. "They are getting their money's worth," says Peltz.

As for a dividend, Peltz says paying a special one would be foolish, but he doesn't rule out a buyback, given his view that the shares are cheap. Some analysts worry the company could become overleveraged, particularly if it does a buyback. After the new bond deal was announced, Standard & Poor's revised the outlook on Wendy's/Arby's single-B-plus-rated debt to negative, while Moody's cut the rating on the Wendy's International unit to single-B2.

The company does have an often-overlooked asset: It owns 700 stores without encumbrances, says May. Since land for new stores costs $750,000 to $1 million, the property might be worth more than $1 a share. Back that out, and Wendy's stock is valued around $2.70 -- less than a quarter-pound burger at one of its New York restaurants.

That makes them look appetizing, regardless of what intentions investors ascribe to May and Peltz.

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Financial Planning Gets Personal

Shortly after Andrea and Rick Campbell got married, when Rick was fresh out of graduate school, Andrea’s parents suggested the young couple could benefit from a trip to their financial planner. Before they knew it, the Reading, Mass., couple were being poked and prodded—gently, but still—by a man they’d just met. They had a kid on the way. Any plans for more? Had they considered how they’d want to live if one or the other died? Rick found himself talking about his parents’ divorce, his dad’s death and his childhood messages about money. “Are we going to get Prozac at the end of this?” Rick wondered. He caught Andrea’s eye across the table: Was this financial planning?

Financial advisers have always considered themselves hand-holders and confidantes, and with the economy in flux, it’s no wonder they’re logging extra hours playing crisis counselor. But more and more planners think a sympathetic ear and a pat on the back don’t go far enough, especially with clients nursing weak portfolios, even after the bounceback from the March lows. Instead, thousands of planners and brokers are taking a cue from Dr. Phil, promising to improve your life while they manage your portfolio.

In spite of criticism that this new approach comes dangerously close to therapy, advisers are getting more comfortable asking the kinds of questions that would ruin Thanksgiving dinner. Shame, guilt, embarrassment—it’s all on the table, says James Weiss, a Connecticut-based planner who encourages clients to divulge their childhood money memories and practice meditation to focus on their priorities. Financial goals? Those are lower on the list. “It’s not about the money,” Weiss says. “It’s about how you want to live your life.”

If it sounds touchy-feely, that’s because it is. But it’s not just the domain of ex-Deadheads; recently, it has moved firmly into the mainstream. Merrill Lynch Wealth Management trains its advisers to do “values clarification” exercises and daylong retreats with clients. Wells Fargo and its newly acquired Wachovia unit have hired psychologists and “family dynamics” counselors to detangle the thorny personal issues of their wealthiest clients. The firms say it’s more than just new-age pabulum; it helps them get to know their clients better, which leads to better financial planning. And, of course, it’s a selling point. “Anyone can allocate your portfolio,” says Keith Whitaker, head of the family-dynamics practice at Calibre, Wachovia’s financial-planning practice for its ultrawealthy clients. “We can help you talk to your kids.”

Not everyone thinks that’s a good thing, however. Financial advisers are trained to recommend investments and manage money; for most, probing for deeply personal, sometimes painful details isn’t in the curriculum. It’s a process critics fear can go wrong without warning, making client and adviser uncomfortable. “If you’re going to open a can of worms, you’d better be prepared to do some good,” says Michael Fitzhugh, a principal in the San Francisco office of money-management firm Aspiriant.

The bigger danger, though, may just be the awkward feeling that it’s inappropriate and that sharing all those details effectively tangles the heartstrings with the purse strings. That’s one reason advisers like it so much: The intimacy creates trust, making clients less likely to defect and more willing to ignore the dollars-and-cents minutiae. But it’s possible to trust too much, as the investors who lost their life savings with fraudster Bernard Madoff discovered. And that raises a question: What does all that soul-searching do for the client?

To learn how to unravel clients’ emotional knots, more than a dozen financial planners and a few curious civilians gathered in a ballroom at the San Jose, Calif., Doubletree hotel. Over a day and a half, they discussed parental betrayal and feelings of professional anxiety and inadequacy, practiced empathic listening (“When you said [blank], I felt...”) and, for a brief moment, engaged in a strange ritual called “vigor dancing.”

Advisers in the room say they wanted to learn how to engage their clients in a conversation about their unfulfilled hopes and, eventually, to encourage them to use their money to meet them. True, investment advisers have always talked loftily about meeting clients’ goals. But that conversation is typically dominated by dollars and cents and a retirement timetable—how much will it take to retire, and how soon can you get there? Let a “life planner” steer the process and it’s more like a parent encouraging a wayward college student by asking questions like “What do you want to do with your life?”

For workshop leader George Kinder, founder of the Kinder Institute of Life Planning, that means requiring the client to ponder a series of questions, the last one a showstopper: “If you found out you had one day left to live, what would be your biggest regrets? What did you not get to do, who did you not get to be, what did you miss?”

There are other ways to get deep. At a daylong Merrill Lynch retreat, advisers meet clients outside the office for six hours of conversation that starts with the biggest money issues and challenges but moves quickly to a discussion of the personalities at play in the family. Outside Seattle, an adviser-training program called Money Quotient has developed questionnaires that ask clients to rank their satisfaction with their life, evaluate their life balance and relive money memories. Whatever the method, the goal is to get clients to stop thinking about their money and start talking about their lives.

Of course, all the empathy in the world doesn’t make any more money for clients. Planners tend to have one investment philosophy—and often, stocks and mutual funds they use over and over again—and they stick to it. A psychological gut check might reveal that a couple needs more short-term money for emergencies or that their retirement dreams require life insurance, but when it comes to actual investments, they’re all treated basically the same, says Stacy Allred, director of the wealth-structuring group for Merrill Lynch. “It’s like choosing from a fleet of cars.” All that talk about clarifying values is like a leather interior or a fancy sound system—it’s nice to have, but it doesn’t get you more mileage.

That’s what Martha Nossiff found when her adviser started adding “life planning” techniques to his practice. A Portsmouth, N.H., voice teacher, Nossiff noticed their conversations becoming deeper and more personal. But her planner used the same investments he’d been using for years, and when the market crashed, she and her husband didn’t do any better than anyone else. In fact, after a 38 percent loss, the Nossiffs, who are both self-employed, considered working harder and longer to make up for what they’d lost. They did a long session of soul-searching with their planner and decided instead to work part-time during their retirement and allocate less than they’d planned on college for their children.

To other people, though, the money is far more important than any self-discovery process. Even advisers admit their attempts to connect with their clients don’t always fly. In Marblehead, Mass., Chris Dowley recalled having disagreements with a client over things like how much life insurance the client should have and what Dowley saw as his “mechanical approach” to money. But the relationship really went downhill after Dowley suggested couples counseling for the client and his wife. “He got very angry,” says Dowley. “He thought I was saying he was sick.”

In New York, Lois Braverman, who runs the Ackerman Institute for the Family, says that while money managers are trained and licensed based on their ability to evaluate a client’s tolerance for risk and invest his money accordingly, they’re not trained to treat traumatic childhood memories or adult anxiety. Indeed, many advisers found themselves ill-equipped to handle their clients’ panic and fear after last fall’s crash. In January more than 800 advisers turned to an online seminar called “Volatile Times, Volatile Clients” for help. Offered by the American College, which trains financial planners, empathy was high on the tip sheet. Advisers were encouraged to call their clients and acknowledge their own feelings of anxiety and fear. “Be an empathic sharer,” Larry Barton, the college president, told the audience.Psychologists say all this sharing creates the appearance of closeness, which breeds trust. Sure, investors want to have confidence in their adviser, but critics say that should come from consistent, ethical performance, not tearful self-disclosure. And Sherri Morgan, associate counsel for the National Association of Social Workers, says putting too many emotions on the table can cloud clients’ judgment. An adviser typically has complete access to client accounts; if an adviser also has access to a client’s personal weaknesses, Morgan says, “the consumer is just that much more vulnerable.”

MORE THAN MONEY

As clients fret about the future, advisers are finding new ways to talk to them. A sampling:

Staff Ph.D.s: Wells Fargo employs two psychologists to counsel its wealthiest clients and smooth out family disputes, though a bank spokesperson says they don’t provide therapy. And as Wells Fargo absorbs Wachovia, it will also adopt the “family dynamics” practice at its Calibre unit, which employs a philosopher and a psychologist to work with that bank’s ultrarich families.

Software solutions: Independent advisers are experimenting with new software like “myFinancial Reflection,” a program developed by a social-worker-turned-banker in Michigan. Instead of dollars-and-cents calculations, users answer questions like “What do your values say about you?”

Accredited Financial Counselors: Adding to the mix-and-match certifications designed to show an adviser is qualified, an increasing number of brokers, planners and accountants are paying $850 for training that leads to the AFC designation. The self-study program includes sections on “listening skills” and “problem solving and intervention strategies.”

Outside help: Citigroup hired the counselors at the California-based Money, Meaning and Choices Institute to train salespeople who help the well-to-do handle trusts. By teaching advisers how to talk to clients about family relationships and inheritance issues, the idea is to address the emotions often raised by trusts, like “If Mom and Dad loved me, why didn’t they just leave me the money all at once?”

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Futures Rise Ahead of Economic Data (Market Update)

News at a Glance

• Futures Positive: U.S. stocks set for gains ahead of economic data.
• Mixed Abroad: Asian stocks uneven after early advance.
• Crude Rising: Oil prices up on hope of recovery, fears of Nigerian attack.
• Dollar Slumps: Investors abandon greenback as outlook improves.

The Lowdown

The second quarter may end on a high note on Wall Street.

U.S. futures were trading slightly above fair value Tuesday morning, as traders awaited reports on the housing sector and consumer confidence. Stocks ended higher Monday when traders took advantage of the previous week's declines.

Asian stocks were down Tuesday after rising early on a swell of optimism carried over from Monday's gains in U.S. markets. The gains came despite news from the Japanese statistics bureau that the jobless rate rose to 5.2% in May, up from 5% in April. Household spending in Japan rose 0.3% in May, the first gain in 15 months, according to a separate report.

In Europe, stocks rose slighty and then fell again on fleeting hopes that the worst of the recession was over. Traders may have been responding to a revised reading of the U.K.'s gross domestic product, which showed the British economy shrank 2.4% in the first quarter, compared to the previous estimate of 1.9%. The quarterly decline is the country's worst since 1958.

In commodities, oil prices were fairly flat, despite concern over attacks by Nigerian militants. By 7:05 a.m., crude had dipped 4 cents to $71.45

The dollar fell against the yen, as Asian markets advanced. Hopes that the recession is tapering off have quieted some calls for a safety currency.

Corporate News

• Insurance company AIG (AIG) is expected to install a new board Tuesday at the company's first annual shareholder's meeting since taxpayers acquired a majority stake. Three trustees will represent the government's plan to elect six new officers to the 11-member board of directors. Chairman and Chief Executive Edward Liddy, who said in May that he planned to step down, is expected to be among those removed from the board.
• Disney (DIS) and Hong Kong have agreed to a $465 million expansion of the territory's Disneyland theme park, officials said. The planned additions are intended to raise ticket sales. The company is trying to turn the park around after it failed to meet attendance targets.

The Economy

• The April reading of the Standard & Poor's/Case-Shiller home price index is scheduled to be released at 9 a.m.. Economists expect the index to have fallen 18.63%, compared to a drop of 18.79% in March.
• The June reading of the Consumer Confidence index is scheduled to be released at 10 a.m. by the Commerce Department. Economists predict the index, which is based on a survey of 5,000 households, will have reached 55.3, up from 54.9 in May.
• The Institute for Supply Management's June reading of the Chicago Purchasing Managers Index is scheduled to be released at 9:45 a.m. The index, which measures business conditions in the Chicago area, is expected to have reached 40.0, up from 34.9 in May. A reading below 50 suggests business is contracting.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

5 Factors That Determine Your Credit Score (Deal of the Day)

Are you sure you know how good your credit is?

Since September, more credit-card companies have been cracking down on card holders they consider risky -- and even lowering the boom on those good standing -- by reducing their credit lines or increasing their interest rates.

About 65% of banks have lowered the credit limits of new or existing credit-card customers, according to the Federal Reserve’s April survey of senior loan officers, up from 45% in January.

Consumers have taken notice: 19% of customers reported recent interest-rate hikes in June, up from 15% in February, and 14% said their credit limits were recently lowered, up from 8% in February, according to a separate telephone survey of 1,000 credit-card customers conducted by a market research firm for Credit.com.

Recent legislation to prevent credit-card firms from making those kinds of changes won't stop rate hikes and credit limit reductions, as companies may attempt to implement these before a new law takes effect. The Credit Card Accountability Responsibility and Disclosure Act signed by President Obama in May aims to protect consumers and improve transparency associated with sudden changes in their credit-card company policies, but the law will not take effect for another two to eight months. In the meantime, consumers should expect more interest rate or fee hikes or credit line reductions, says Ken Lin, CEO of CreditKarma.com, which offers free credit scores and free tools to help consumers improve their scores. Individuals with credit scores below 700 may see their credit lines reduced, and those with scores below 620 could see some of their credit cards canceled, Lin says. “The idea is to eliminate risky credit card holders before this legislation takes effect,” he says.

Of course, most decisions on interest rates and credit lines are handed down not by MasterCard (MA) or Visa (V) but by the banks that underwrite them.

Bank of America spokeswoman Betty Reiss says the bank has always “closely monitor[ed] accounts for risk and may adjust customers’ lines…depending on their risk profile.” In April, Bank of America notified less than 10% of its customers of a rate increase, which went into effect on their June statement, she says. Some of those increases were the result of the bank’s periodic review of individual credit risk, which looks at how individuals are using all their credit and whether they’ve defaulted on loans to other creditors, she says.

Discover (DFS) says that most of its customers haven’t experienced credit line reductions or interest rate increases, but the firm increased interest rates on a small number of cardholders who were paying late or not paying at all.

American Express (AXP) spokeswoman Desiree Fish says the company has been reducing lines of credit since September but that the majority of its customers haven’t been affected.

Spokespersons for Bank of America (BAC) and American Express say their firms haven’t announced policy changes associated with the credit-card legislation.

For now, consumers would be wise to keep a closer eye on their credit scores. Here are the five most important factors that affect your FICO credit score and a few ways to protect yourself against the credit crackdown.

Do You Pay on Time?

35% of your credit score

Start marking your credit-card bill due dates on your calendar. Paying your bills on time plays the biggest role in determining your credit score.

To stay on top of your charges, consider setting up an automatic bill payment, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. Look over your past bills, estimate your minimum required monthly payment and set up automatic bill payments for that amount, she says. That way, you’ll meet the payment deadlines, dodge late fees or interest-rate hikes, and remain free to pay the remaining balance at your convenience.

The consumer who pays his bills on time every time maintains an average credit score of 706, Lin says, but the drop-off is huge. The average score of a consumer who pays on time 99%: 658.

Making a late payment can also lead to universal default, the condition in which credit-card companies raise your interest rate on their cards for being late with another company’s payment. Once the Credit Card Accountability Responsibility and Disclosure Act goes into effect, that practice will be curtailed, but if card issuers perceive an increase in a cardholder’s risk level through some other means, they could roughly double their rates, Lin says. The annual percentage rate of the average credit-card firm is now 10.9%, according to Bankrate.com.

What Do You Owe?

30% of your credit score

Paying bills on time doesn’t guarantee a high credit score. You’ll also need to keep your balances from surpassing 30% of your total credit line.

Your credit score is based in part on your credit utilization ratio, the amount you owe in proportion to your total credit limit. If your credit-card company reduces your credit limit, your debts make up a larger percentage of your credit line. If your line is cut unexpectedly, call your issuer to try to undo the reduction, especially if you’ve been on time with payments and maintain a low balance.

In some cases a credit line reduction is unavoidable, says Linda Robertson, a certified financial planner with Financial Finesse, a financial education company . In the past year, many retailers like Fortunoff and Linens ‘n Things shut down or went into bankruptcy and canceled their credit cards. When their credit-card holders lost those lines, their scores may have suffered, she says.

How Long Have You Been Borrowing?

15% of your credit score

A middle-aged consumer often fares better in this category than a recent college grad.

The length of your credit history is basically a straight measure of the number of years you’ve had credit. The trick here is to keep your first credit card open, even if it has a high interest rate or a low spending limit. Use it a few times a year so that the credit-card company doesn’t shut it down, Cunningham says.

Is Your Credit Still Expanding?

10% of your credit score

Applying for new credit is often a Catch-22. With new credit, you can prove your ability to handle several payments on a monthly basis. However, applying for too much credit in a few months can slightly harm your credit score, says Cunningham.

“It signals that you’re desperate for credit and don’t have cash available to pay for your needs,” she says.

Opening new accounts over time will raise your credit score in the long term, provided you pay your bills on time, says Craig Watts, spokesman for FICO, the company that calculates and issues the credit score that most lenders use. Requesting and checking your own credit report from FICO or one of the three credit bureaus won’t affect your score, he says.

Is Your Credit Diverse Enough?

10% of your credit score

To maintain credit diversity, opt for a variety of credit, including credit cards, a car loan or a mortgage – but make sure to pay each bill on time and keep the accounts active. Opening a wide variety of new accounts and not using them won’t raise your credit score, Watts says.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

AIG shareholders to elect new directors at meeting

I feel betrayed and confused: Ruth Madoff

Business confidence keeps rising, builders most optimistic

Inflation spectre fading, but may return as economy improves, says Reserve Bank

Fifty jobs to go at clothing factory

Banks still lending strongly to farming sector

Obama junks 'global war on terror' label

Supreme Court overturns ruling by Sotomayor

Cheeky offers and shrewd moves

UK 'must end lending drought' to ease recession

Labour MPs and ministers discuss scheme to avoid Royal Mail sell-off

Hear: Paying It All Back

A crowd gathers for Bernard Madoff's sentencing. Timothy A. Clary/Getty Images

 

On today's Planet Money:

-- Does anyone really pay off a 30-year mortgage? NPR's National Desk Editor Steve Drummond asked Chana Joffe-Walt to find out, and after some digging, Chana found a couple that did just that. Tamar and Chris Pearsol of Seattle share the story of their mortgage.

-- Bernard Madoff's 150 years prison sentence is the big news of the financial world today, but is there anything new to say about Madoff? Curt Nickisch, of NPR member station WBUR in Boston, says so. The citizens of his hometown view today's events with a particular pride, Nickisch says, since the man who first alerted the world to Madoff's ponzi scheme was their own Harry Markopolos.

Bonus: Comments of the day, from the blog.

Download the podcast; or subscribe. Intro music: The Detroit Cobras'"Bye Bye Baby." Find us: Twitter/ Facebook/ Flickr.

Earlier today, we posted David Kestenbaum's calculation that if you divide the estimated $65 billion of fraud into his 150-year prison sentence, Madoff crimes total about $1.2 million per day in jail. Here are a couple of choice comments from you:

Benjamin Running wrote:

so at $1.2 million a day, i wonder if i could swindle $8.4 million in exchange for one week in prison? that seems like a pretty worthwhile trade-off.

ReneeE wrote:

I'm actually annoyed to hear that Madoff received a long prison sentence. I know prison is a real bummer, but taxpayers are now going to have to support him for the rest of his life. I was hoping the judge would seize all his assets and then require him to get a job to support himself. Of course, he would have needed a job that would not allow him to be responsible for any money. Maybe something like waxing the floors at night in his former office building.

I guess we have a few things left to say, after all.

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Apple chief to work part of week at home

Write-Offs: 06.29.09

$$$ Should a Victim's Tale of Woe Move a Judge? Like In The Case Of You Know Who? [WSJ]

$$$ Allen Stanford will spend at least one more night in jail [Houston Chronicle]

$$$ Madoff Mailbag: Letters have started to arrive at Madoff Investors essentially offering the net capital ($ in less $ out) up to $500K. Discomforting, to me at least, is that it includes a Release letter. Not sure why there needs to be a release. SIPC should pay what is right; not cut some deal a la "here's $x we'll give you now in exchange for not asking for any more."

$$$ Bernie Madoff quietly slipped $2 million into a foundation created by son Mark as the walls started closing in. Was this part of a scheme to divert cash? [TDB]

$$$ State Street Says Regulators May Sue On Mortgage Losses [NYT]

$$$ This what we need more of [YouTube]

GM seeks alternative bids for Opel

Dennis Kneale Has No Idea What Maria Bartiromo Is Talking About

Maria Bartiromo may not be buying into the green shoots theory, but fellow oracle Dennis Kneale is- and jumping in with both feet. In addition to cherry picking a few pieces of optimistic data, Professor Kneale is fired up that the economic super-variable known as 'how we feel' is on the rise. Consequently, DK proclaims that the "horrible Great Recession is over, right here and right now" and "Dow 10000 here we come." Break out the bubbly, we've successfully felt our way out of the recession.

Presented By:

The Dow Jones industrials' moves since Lehman fall (AP)

NZ shares: Regulatory talk drives down Telecom

Recession and low dollar kill Line 7

Stock Fund Inflow Continued In May (Investor's Business Daily)

SEC tells State Street it could face civil charges (AP)

Laettner Trying To Beat the Clock Again

While not quite as staggering as the NFL's 78% bankruptcy rate among ex-players within two years of retirement, Christian Laettner is trying to avoid meeting the NBA benchmark of 60% of ex-players winding up penniless within 5 years of retirement. Laettner, who retired after the 2004-5 season, went into business with former Duke teammate Brian Davis and embarked on a series of real estate development projects whenever and wherever there was somebody foolish enough to lend to them. Now Laettner and Davis (who used to dream about being "the black [Donald] Trump") are being sued for $6 million by lenders and former associates for a variety of payments that slipped their mind.

Among the duo's accomplishments that must make Coach K beam with pride are failure to pay a $1.5 million loan from Chevron, not abiding by the terms of a $3 million loan from a company Shawne Merriman runs, and failing to pay close to $700k to an ex-Lehman guy who left LEH to join their Ball Street Ventures development company. But the black Donald wants people to know that all those unpaid loans are simply labors of love for him and Christian.

"We actually have said 'no' to a lot of things. But we've said 'yes' to things that we love. And we're going to continue doing that. The lesson is, 'keep it simple, and just work.'"

Laettner might as well start filing the Chapter 13 papers now.

Business lawsuits vex ex-hoops stars [Charlotte Observer]

House Oversight Committe Requests The Honor Of Hank Paulson's Presence

To talk Bank of America, Bernanke, and Boone's, on July 16. Interesting--in a mafia way-- that CNBC's Hampton Pearson noted the government had "struck a deal" with Paulson, since we are discussing the possibility that Bald and Beard told Lewis he'd sleep with the fishes if things didn't get done their way. Despite the fact that Congress completely blew this whole thing by not having Lewis, Bernanke, and Paulson all testify at the same time, there's a possibility this last hearing could be somewhat entertaining in that a) we're dealing with the scariest one of the bunch and b) unlike Bernanke and Lewis, Paulson doesn't really have anything (like a job) to lose and would probably have less of an issue answering the question of whether or not he took a crowbar to Lewis's ribs with the indication there'd be more where that came from if the Merrill losses got out in the affirmative (such as: "you're god damn right I did"). Paulson has already admitted he did it, so really we should just be getting the details re: how.

Think Outside The Box

Re: will Bernie be made Bubba's bitch, we personally believe Ponzi Boy will get in to the heads of the biggest guys on the block, break them down mentally and emotionally, and ultimately be seen as the inmate you don't wanna fuck with. The Journal spoke with prison expert Alan Ellis earlier, who thinks that might not be the case:

Just because someone is high-profile doesn't necessarily mean that safety is an issue, right?

Right. I mean, Michael Vick was high profile, but was he in danger? I highly doubt it. He's a sports hero and he's, physically speaking, a big guy. But with Madoff, something else could factor in. There's an expression in prison that gets applied to prisoners -- "mice who want to become rats" -- which essentially refers to wanting to increase your stature in prison, or "making your bones." One way an inmate might "make his bones" is by hurting Bernie Madoff.

How the major stock indexes fared on Monday (AP)

How the major stock indexes fared on Monday (AP)

Greenlaw Sees 10-Year Treasury Yield at 5.5% by End of 2010

Lloyds Banking Raised to `Buy' at Goldman Sachs

Facebook hires ex-Genentech executive as finance chief

Bernie Madoff Sentenced to 150 Years in the Slammer

US Disctrict Judge Denny Chin sentenced Bernie Madoff, 71, to 150 years in prison for his more than $13 million Ponzi scheme. Bloomberg has more:

Madoff has been in jail since his guilty plea. At today’s sentencing, none of his family members appeared in court to lend support. A crowd of hundreds waiting outside the lower Manhattan courthouse as the sentencing was pronounced. Nine of his victims told Chin how their lives had been devastated.

“I know I did a great deal of harm,” Madoff said in a gruff accent of the New York City borough of Queens, where he was raised. “Nothing I can say can correct what I’ve done.”

The courtroom erupted in applause and shouts after Chin imposed the sentence. Several victims brushed away tears, as Madoff, who wasn’t handcuffed, was let out a side door by two U.S. marshals.

According to the Wall Street Journal’s Ashby Jones, “applause broke out in the courtroom when Judge Chin announced the sentence.” However, Judge Chin did not dish the maximum possible sentence, says Jones, citing two recent examples of smaller-scale fraud that landed perpetrators 845 and 330 years in jail, respectively. Judge Chin reportedly claimed that none of the counts “to which Madoff pleaded guilty carried a maximum sentence of life imprisonment.”

It would have been nice to see a life sentence. Remember Junk Bond King Michael Milken, who in the 1980s was sentenced to 10 years in jail on counts of securities fraud and racketeering? He ended up serving less than two years.

Madoff is 71. He will probably die in jail, but you never know what kind of magic expensive lawyers can work.

And, please, no Club Fed.

Ellis Discusses Madoff's Federal Prison Assignment

Bill Singer Says Madoff Co-Conspirators Will Be Uncovered

150 Years

The Times reports that Bernie Madoff has been sentenced to 150 years in prison for being the mastermind behind a giant Ponzi scheme. Federal Judge Denny Chin called his crimes "extraordinarily evil." Our math genius David Kestenbaum says the sentence is about one day in prison for every $1.2 million of fraud in the $65 billion scheme.

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Brusca Sees U.S. Fourth-Quarter Growth Rate Above 3.5%

Michael Lewis on the fall of Wall Street

Debt wasn't always the enemy

The fireworks show must go on

Attack halts Nigeria oil production

Toxic assets still looming in the murk

Madoff victims react to verdict

Fee hikes bounce to debit cards

Herrmann Says Rising U.S. Savings Rate Will Help Restore Growth

Sebelius on Health Care; Albright, Berger on Iran, North Korea

State Street may face SEC charges over mortgages (Reuters)

Reuters - Asset management and servicing giant State Street Corp said it might face civil charges by U.S. securities regulators for exposing investors to losses on subprime mortgages.

Bernie's Big Day

Bernie Madoff, the villain in the nation's largest Ponzi scheme, faces his fate today as he learns his sentence. Federal Judge Denny Chin could sentence the 71-year-old Madoff to as many as 150 years. Last week, Madoff's lawyer told Chin that a prison term of twelve years would be a fitting punishment for the crime, but many of Madoff's victims say they'd like to see him behind bars for the rest of his life.

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Swiss Re's Karl Sees U.S. 10-Year Notes at 3.4%

Billy Mays’ Tombstone

Rest in Peace, Billy.