Securities and Exchange Commission

• Once a beacon, Obama under fire over civil liberties (Reuters)
• Eurozone in longest recession since birth of currency bloc (FT)
• EU Oil Manipulation Probe Shines Light on Platts Pricing Window (BBG)
• BMWs Cheaper Than Hyundais in Korea as Tariffs Crumble (BBG)
• Stock Boom Isn't a Bubble, Says BOJ's Kuroda (WSJ)
• Struggling France strives to shake off economic gloom (FT)
• JPMorgan investors take heat off Dimon (FT)
• Private-Equity Firms Build Instead of Buy (WSJ)
• Bloomberg Saga Highlights Clash Between Two Worlds (WSJ)
• Bank documents portray Cyprus as Russia's favorite haven (Reuters)
• HSBC Signals 14,000 Jobs Cuts in $3 Billion Savings Plan (BBG)
• Argentines Hold More Than $50 Billion in U.S. Currency (BBG)

• Controversies give Obama new governing headaches (Reuters)
• About that Capex... BHP to Rein In Investment, Chief Says (WSJ), considers returning cash to shareholders (FT)
• Bloomberg users’ messages leaked online (FT)
• Japanese mayor sparks China outrage with sex-slave remarks (Reuters)
• Economists Cut China Forecasts (WSJ)
• U.S. oil boom leaves OPEC sidelined from demand growth (Reuters)
• U.S. banks push back on change in loan loss accounting (Reuters)
• Fed’s Plosser Says Slowing Inflation No Concern for Policy (BBG)
• Watchdog probes 1m US swap contracts (FT)
• Used Gold Supply Heads for ’08 Low as Sellers Balk (BBG)
• Ex-BlackRock Manager Said to Be Arrested in U.K. Probe (BBG)

The Chairman is about to take the lectern to discuss bank structure and competition at the SIFI conference at the Chicago Fed. His prepared remarks are likely to be a little less exciting than the Q&A where the world will be watching for the words "buy, buy, buy", "mission accomplished", or "taper". Charles Evans will be his lead out man. Finally, since Bernanke will be discussing shadow banking, or the source of some $30 trillion in shadow money always ignored by Keynesians, Monetarists and Magic Money Tree (MMT) growers, a topic we have discussed over the past three years, here is the TBAC's own summary on how Modern Money really works.

Moments ago, embattled hedge fund manager Phil Faclone, whose Harbinger Capital seven years ago was more profitable than Federal Reserve Capital Onshore Fund LP, and where every analyst and trader wanted to work, at least until they decided to work for Paulson 3 years later (oops), just settled with the SEC for the plethora of alleged financial wrongdoing that has troubled him in the past four years, and primarily for misuse of client funds such as using client cash to pay his own taxes, in a move that effectively ends his career in not only the hedge fund worlds, but in finance as well. It is unclear if Falcone's prenup-free marriage is also over as a result: we expect a statement from Lisa's PR group shortly.

Just in case conventional wisdom thought there was some limit beyond which financial crime and fraud in the US would or could not cross, here comes the city of Harrisburg, bankrupt for nearly two years, proving everyone wrong as usual. 'The Securities and Exchange Commission today charged the City of Harrisburg, Pa., with securities fraud for its misleading public statements when its financial condition was deteriorating and financial information available to municipal bond investors was either incomplete or outdated." Of course, if one is sinking, might as well take down as many as possible with it, because in the long-run, etc... right Keynesian fanatics?

Mitt Romney's net worth of $250 million is well-known by virtually everyone in America: after all, it was the primary campaign offensive used by the Obama team against his presidential challenger in an election run largely down wealth, and social class lines, and whom "Democrats targeted in ads and speeches as being out of touch with most Americans." What many may not know is that staunch democrat Al Gore's own personal wealth, has soared from virtually nothing in 1999 to a staggering $200 million according to an analysis conducted by Bloomberg.

JPM wasn't satisfied with demonstrating its implicit control over the US bond issuing authority by promoting Matt Zames to the post of COO, the same Matt Zames who courtesy of his Chairmanship of the TBAC, also effectively runs the US Treasury where he "advises" the brand new Treasury Secretary who has no idea what he is doing. Oh no. Just to cover all its bases, Jamie Dimon's firm decided to also take over the SEC as well.

It would appear that (apart from Tesla, for now) that any thing related to electric cars is going up in flames. From Fisker's fubar (and blowing all that hard-earned government funding) and Chevy's Volt dysphoria to A-123 Systems (the Lithium-Ion battery-maker) and now Coda - which Yahoo Finance notes was among an emerging crop of California startups seeking to build emission-free electric cars three years ago. After selling just 100 of its $37,250 five-passenger vehicles, Coda filed Chapter 11 today taking a few well-known investors with it. On the bright side, the government was not involved (from what we can tell), but on the even brighter side, none other than former US Treasury Secretary Hank Paulson was among those burned by the company going up in flames (as was Harbinger's Phil Falcone).

• China’s Recovery Falters as Manufacturing Growth Cools (BBG)
• Gloomy eurozone output points to rate cut (FT)
• Limit Austerity, EU appartchik Barroso Says (WSJ)
• Regulators Get Banks to Rein In Bonus Pay (WSJ)
• SEC looks to ease rules for launching ETFs (Reuters)
• Easy come, easy go: U.S. Seizes $21 Million From Electric Car Maker Fisker (WSJ)
• Japan nationalists near disputed isles (Reuters)
• OECD in fresh warning on Japan debt (FT)
• S&P says more than one-third chance of Japan downgrade, cites risks to Abenomics (Reuters)

• Turn to Religion Split Bomb Suspects' Home (WSJ)
• The propaganda is back for the 4th year in a row: Spring Swoon Sequel No Reason for Economic Growth Scare in U.S. (BBG)
• Bernanke Jackson Hole Absence Contrasts With Greenspan Adulation (BBG)
• Large economies promise to boost growth (FT)
• Tata Faces Crisis as $20 Billion Spent on Water (BBG)
• U.S. Eyes Pushback On China Hacking (WSJ)
• Fed's Bernanke sees no U.S. inflation risks: Nowotny (Reuters)
• Austerity on Trial With U.S. Versus Europe Amid New Evidence (BBG)
• Eurozone anti-austerity camp on the rise (FT)
• Spain Aims to Soften Budget Cuts (WSJ)
• Japan's Aso Calls Recovery 'Few Years' Away (WSJ)
• BOJ Said to Consider Price Forecast Upgrade (WSJ)

• Boston bomb probe looking at pressure cooker, backpacks (Reuters), Boston Bomb Clues Surface (WSJ) Forensic Investigators Discover Clues to Boston Bombing (BBG)
• China local authority debt ‘out of control’ (FT)
• Gold Wipes $560 Billion From Central Banks as Equities Rally (BBG)... or the same impact a 2% rise in rates would have on the Fed's balance sheet
• More Wall Street leakage: Stock Surge Linked to Lobbyist (WSJ)
• China's bird flu death toll rises to 16, government warns of spread (Reuters)
• Chinese official endorses monetary easing (FT)
• As global price slumps, "Abenomics" risks drive Japan gold bugs (Reuters)
• North Korea rejects US call for talks (FT)
• IMF Renews Push Against Austerity (WSJ)
• India Gains as Gold Plunge Boosts Scope for Rate Cuts (BBG)
• Germany set to approve Cyprus aid (FT)
• Easing Is an Issue as G-20 Meets (WSJ)

Well-known permabull financial analyst Dick Bove lost his job in November 2012. Not due to his ineptness, but due to his Rochdale Securities colleague David Miller who today plead guilty to wire fraud and conspiracy over an epic Apple trade gone wrong. As Reuters reports, Miller faces a maximum 25 years (though is expected to suffer less) after falsely telling his bosses that he executed a 1,625 share trade for a client, when in fact he bought 1,623,375 shares of the 'never-gonna-fall' stock on the day of its earnings release (October 25th 2012). When the bet backfired, Rochdale was on the hook for the losses which led the firm to cease operations and to provide the market with a brief respite from Bove's 'loan-loss-provision'-ignoring, 'we're-going-to-the-moon-Alice' investment advice on US banks. What a difference a decimal place makes...

• Investigators hunt for clues in marathon bombing (Reuters)
• Investigators scour video, photos for Boston Marathon bomb clues (Reuters)
• 'Act of Terror' Kills at Least Three, Injures About 140 as Bombs Wreak Carnage on Marathon Crowd (WSJ)
• Brent Crude Below $100 (WSJ)
• Slower China Growth Signals Days of Miracles Are Waning (WSJ)
• Central Banks at Ease Limit Risk Political Backlash (BBG)
• Merkel plans to quit midterm, says author (FT)
• Monte Paschi Prosecutors Seize $2.3 Billion of Nomura Assets (Businessweek)
• Treasuries back on investors’ buy lists (FT)
• J.C. Penney Said to Seek Ways to Separate Real Estate for Cash (BBG)
• Climate scientists struggle to explain warming slowdown (Reuters)
• Putin Calls for Stimulus Plan After Recession Alarm (BBG)
• TIPS in Longest Selloff Since ’08 as U.S. Bancorp Cuts (BBG)

Presenting Brian Gross, Special Assistant to the Fed for Congressional Liaison, who as Bloomberg reveals, is the person who released the FOMC minutes at 2 pm yesterday. Amusingly, Brian worked as Chief Ethics Officer while he was a deputy staff direct on the Banking, Housing and Urban Affairs Committee. Just as amusing is that according to his LinkedIn profile, Brian is involved in virtually every governmental organization, up to an including the Securities and Exchange Commission Alumni Association.

• JPMorgan Leads Job Cuts as Banks Seek to Bolster Profit (BBG)
• North Koreans don't show for work at Kaesong factory park (Reuters), as NK urges foreigners to leave South Korea (FT)
• Lisbon Struggles to Close New Budget Gap (WSJ)
• Portugal may face delay to bailout funds (FT)
• Putin Squeezing Out UBS to Deutsche Bank Using Oligarchs (BBG)
• China's Xi Says Fast Growth Over (WSJ)
• Spain’s PM wants more powers for ECB (FT)
• Bernanke Says Interest on Reserves Would Be Main Tightening Tool (BBG)
• Bird Flu Claims 7th Victim in China (WSJ)
• Texting While Flying Linked to Commercial Helicopter Crash (BBG)... No, Bernanke wasn't the pilot