June’s Top Business Stories

Hi everybody!

I’m Alexandra Ford, the new Sales intern based in New York. Next week, I am going to begin blogging every week about hedge fund news, and every month with top business stories. I’ve written five quick summaries of business news as well as a bullet point compilation of this month’s mergers and acquisitions. The topics I chose to update you all with came up in the news again and again, and I know these events will have far-reaching consequences. In our world today we tend to think in 140 characters or less, so I’ve tried my best to consolidate each story.

Collapse of MF Global

The Oct. collapse of MF Global resulted in a loss of $1.6 billion, and the investigation has revealed that the firm broke many regulatory rules. This matter will affect the current debate about financial regulation.

http://dealbook.nytimes.com/2012/06/05/mf-global-dodged-capital-requirements-study-says/

JPMorgan Chase’s Loss

JPMorgan Chase’s chief investment office lost $3 billion due to a bet that soured after taking larger positions. Dimon has been questioned by Congress, and this case will also affect upcoming potential financial regulation (the Volker Rule specifically).

http://dealbook.nytimes.com/2012/06/18/regulators-join-dimon-at-house-panel-hearing/

NASDAQ & Facebook’s IPO

Multiple system errors led to a delay in the opening price of Facebook stock during its May IPO. NASDAQ has pledged $40 million to cover losses, but that is only a fraction of the $100 million that was said to be lost. This matter shapes other tech IPOs originally planned for later this year.

http://dealbook.nytimes.com/2012/06/06/nasdaq-sets-aside-40-million-to-settle-facebook-trading-claims/

Trial of Rajat Gupta

Rajat K. Gupta was convicted of conspiracy and security fraud this June. Prosecution used circumstantial evidence to prove that Gupta told Rajaratnam (manager of Galleon Group) insider secrets. This case will obviously affect insider trading cases as well as how people conduct themselves on Wall Street.

http://dealbook.nytimes.com/2012/06/15/rajat-gupta-convicted-of-insider-trading/

Spanish Bank Bail Out

The Euro zone bailed out Spanish banks with $125 billion, but due to the subsequent increase in bond yield the bailout seems to be ineffective. Due to the interconnectedness of our world today, the failure of the European Union could mean the failure of our own economy.

http://www.nytimes.com/2012/06/10/business/global/spain-moves-closer-to-bailout-of-banks.html?pagewanted=all

http://dealbook.nytimes.com/2012/06/11/why-the-bailout-in-spain-wont-work/

Mergers and Acquisitions in June 2012:

  • Verizon to buy Hughes Telematics for $612 million
  • Salesforce.com to buy Buddy Media for $689 million
  • Starbucks buys San Francisco based Bay Bread for $100 million
  • Barclays Unit to buy South African retail credit business for $1.2 billion
  • Kenneth Cole takes his company private for $279 million
  • Sherbank of Russia to buy DenizBank for $3.5 billion
  • Telefonica to sell shares back to China Unicom for $1.4 billion
  • Apax and JMI Equity to buy paradigm for $1 billion
  • Asian consortium buy Saab to create an electric vehicle car company
  • Hong Kong Exchange to buy London Metal Exchange for $2.1 billion
  • Walgreen to take stake in Alliance Boots for $6.7 billion