San Bernardino filed for bankruptcy yesterday, joining Stockton and Mammoth Lakes among California cities to seek Chapter 9 protection. On July 24, the San Bernardino City Council voted to suspend debt payments and freeze contributions into a retiree health plan as part of an emergency fiscal plan. The city of Compton has said it could file for bankruptcy by September 1.
A “technical issue” aka “rogue algorithm” at Knight Capital Group flooded markets with millions of trades yesterday morning, calling forth memories of the 2010 flash crash and causing much hand–wringing over the role of computers in capital markets.
AIG wants to buy back a large number of shares from the government, The Wall Street Journal reports citing people familiar, in a move that would make the U.S. a minority shareholder in the company. The government’s stake in the company has shrunk from 92 percent to 61 percent over the last 16 months.
The Glazer family stands to triple the value of its investment in Manchester United, if the British football club achieves the high end of the $16 to $20 a share range the club is seeking in its initial public offering. At $20 a share, the club would be valued at about 26 times adjusted earnings, according to Reuters, well beyond the multiples media companies typically trade at.
BNP Paribas, France’s largest bank, said profit fell 13 percent in the second quarter as the European debt crisis weighed on trading revenue.
Goldman Sachs led firms to cut back on Japan-based brokerage staff, Bloomberg reports.
The former chairman of Kazakhstan’s BTA Bank JSC dropped out of sight earlier this year, after fleeing to London in 2009 amid criminal charges. Meanwhile, a former CEO left the bank in January after being beaten badly by a subordinate, Bloomberg Markets reports.
Germany’s Bild wants European Central Bank chair Mario Draghi to return a Prussian spiked helmet given to him by the newspaper. The helmet was intended to remain Draghi to be “German” in his approach to inflation, according to Business Insider.
A junior banker was struck by an SUV and killed on a trip to Atlantic City to celebrate the beginning of his career, according to The New York Post.