U.S. Millionaires Told Go Away as Tax Evasion Rule Looms [Bloomberg] Go away, American millionaires. That’s what some of the world’s largest wealth-management firms are saying ahead of Washington’s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc (HSBA), Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. (DBS) all say they have turned away business. “I don’t open U.S. accounts, period,” said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia’s largest lender, who described regulatory attitudes toward U.S. clients as “Draconian.”
Nomura Targets 100 Top Executives in Investment Banking [Bloomberg] Nomura Holdings Inc. (8604), Japan’s largest brokerage, plans to almost triple the number of senior executives in its Americas investment-banking division as competitors retrench. The unit expects to have about 100 managing and executive directors within three to five years, up from 38 now, James DeNaut, head of investment banking for the Americas, said in an interview in New York. The bank wants to become “one of the top 10 globally and one of the few that are Asian centric,” said DeNaut, 49. “We are going to be very focused on the sectors which have good, high-quality fee pools.”
Blackstone Buys London Financial District Complex-Source [Reutors] Private equity company Blackstone Group has expanded its property presence in London, buying the 12-building Devonshire Square office and retail complex from rival Rockpoint and the Abu Dhabi Investment Authority (ADIA), according to a source familiar with the deal. The deal was signed on Friday for just under 340 million pounds ($549 million), according to t he Financial Times, about 17 percent below the 410 million pounds paid by Rockpoint and ADIA for the five-acre Devonshire Square site in 2006 during a peak in the London office-property market.
Exchanges Plan Mini Contracts Amid Record Share Prices [Bloomberg] Exchanges seeking to feed demand for options after trading reached a ninth straight annual record are asking regulators to approve smaller contracts, concerned the highest stock prices on record make some of them too expensive. Apple Inc. (AAPL)’s 40 percent gain this year to $568.18 yesterday meant it cost $2,455 to buy acall expiring in June with a strike price of $565, data compiled by Bloomberg show. Google Inc. (GOOG)’s $612.79 share price required a $2,060 investment for one contract giving the right to buy 100 shares at $610 each.
Flash Crash ‘May Occur Again’ [Financial News] The New York Fed has used the second anniversary of events of May 2010, when the Dow Jones Industrial Average fell by more than 5% in a matter of minutes, to gather together the evidence from academics who have tried to pinpoint the causes. On its Liberty Street Economics blog, the New York Fed has a graph of E-mini futures during the Flash Crash on May 6, 2010 and a summary of the academic papers: [ http://bit.ly/II9KaF ]
German Patience with Greece on the Euro Wears Thin [CNBC] Just weeks ago, the idea that Greece would leave the euro zone was almost unthinkable. Now, with Greece’s newly empowered political parties refusing to abide by the terms of the country’s international loan agreement and Europe’s leaders talking tough, that outcome is looking increasingly likely. Germany’s devotion to the euro and the European Union runs extremely deep and cuts across the political spectrum. But the frustration with Greece here is undeniable. There is a growing conviction that it is up to Greece to follow through on its commitments, that Europe is done negotiating.