Receiving Wide Coverage
Atwitter About Twitter: The social-media network that's an unholy hybrid of news, opinions and procrastination priced its much-awaited initial public offering at $26 per share, above its underwriters' estimated range, for an initial valuation of $18 billion. (That's about $129 million per character that you're publishing for free in a typical 140-character Tweet.) Depending on how many shares are sold today in its first day of trading, the IPO is expected to raise up to $2.1 billion, the third biggest U.S. deal of the year and the second-biggest U.S. Internet IPO of all time, according to the Wall Street Journal.
All that and Twitter is still unprofitable but not for the banks underwriting the deal, which are expected to generate at least $56 million in fees for Wall Street, reports the Journal. Goldman Sachs led the deal, which was also underwritten by Morgan Stanley, JP Morgan Chase, Bank of America's Merrill Lynch and Deutsche Bank.
Dealbook is live-blogging the company's first day of public trading, and the Journal also profiled Twitter CFO Mike Gupta, a former Merrill Lynch investment banker and "42-year-old finance whiz [who] helped keep confidential for two months the company's IPO filing, kept the company out of the Securities and Exchange Commission's cross hairs, and helped secure a $1 billion low-interest loan."
Oh, and in case Twitter co-founder Jack Dorsey can't survive on the estimated $700 million his stake in the company became worth last night, his payments startup Square is also in discussions with banks for a 2014 IPO. Wall Street Journal, Financial Times
More Goldman Probes: In less glowing news for the investment bank, Goldman Sachs is bracing for more regulatory problems (and legal payouts) over the mortgage-backed securities it packaged and sold leading up to the financial crisis.
It also "sort of" disclosed that it's involved in a global probe into foreign exchange currency manipulation, says the FT, parsing Goldman's latest filing.
Ray Kelly, the chief of the New York Police Department and the standard-bearer of its much-criticized "stop-and-frisk" policy, needs a new job now that Bill de Blasio has been elected city mayor. Kelly apparently likes courting controversy: he's in talks to take on a senior security-related role at JPMorgan Chase, regulators' current favorite industry target. The job discussions were first reported by the New York Post.
Wells Fargo, long a non-presence in the highly competitive U.S. credit card industry, is rolling out a new rewards program as part of its recent credit card push.
Wall Street Journal
Fannie Mae this morning reported an $8.7 billion profit during the third quarter and will make an $8.6 billion dividend payment to the U.S. Treasury later this year, "leaving the company close to making taxpayers whole on their massive investment in the company over the past five years."
Wells Fargo paid $335 million to the Federal Housing Finance Agency as part of a settlement for allegedly misleading disclosures on mortgage securities the bank sold to Fannie Mae and Freddie Mac. The payment, disclosed in a regulatory filing Wednesday, was significantly less than the $5.1 billion JPMorgan Chase has agreed to pay over similar charges and also on the small end of the "less than $1 billion" amount that it was previously reported Wells had agreed to pay.
New York Times
Wall Street bonuses are rising again, with the best raises coming to the people who handle wealthy customers' assets and those who underwrite IPOs (see above). Bond traders are out of luck.