By Bill Zwecker June 3, 2012 9:08PM
NEW YORK - JANUARY 23: Sean "Diddy" Combs and son Justin Dior Combs attend Justin Dior Combs' 16th birthday party at M2 Ultra Lounge on January 23, 2010 in New York City. (Photo by Slaven Vlasic/Getty Images) *** Local Caption *** Sean "Diddy" Combs;Justin Dior Combs
Updated: June 3, 2012 9:58PM
The decision by UCLA to award a full-ride scholarship to young football star Justin Combs — son of multimillionaire entertainment mogul Sean “Diddy” Combs — has generated a huge debate online and on the campus of the Southern California university.
While many argue the younger Combs earned the scholarship on his merits, I’ve learned there’s considerable backlash among key UCLA alumni and fund-raising honchos. During this time of tough economic challenges, many UCLA alumni who play major roles in Hollywood’s showbiz world believe that need should trump everything else.
“I know it seems unfair to Justin, but clearly he has had so many advantages in his life. … Those funds should have gone to a kid who otherwise might not be able to attend UCLA,” said a top studio executive and university alum Sunday, who also said, “Everyone I’ve spoken to is on the same page about this.”
† Diddy’s camp believes that Justin is entitled to the scholarship, and no one’s intending to give it back. That said, there also is word that Combs Sr. will be very, very generous to UCLA fund-raising efforts.
“I’ll bet he’ll end up giving the university more — over a period of time — than Justin is getting over the next four years,” said a close Combs associate.
DEJA VU? Is Charlie Sheen slipping back into his old ways — partying wildly, drinking heavily and surrounding himself with a bunch of porn stars? That was the contention of some weekend reports the actor was laughing off, claiming he’s well in control of himself. Sheen blasted the unnamed “friends” who gossiped about him to several celebrity magazines and websites, saying, “Consider the sources.” My own sources close to Sheen do express concern that he seems to be repeating the behavior that caused him problems in the past. “Charlie now thinks he’s able to control himself and won’t be pushed over the edge by surrounding himself with booze, drugs and porn stars,” said a longtime Sheen associate, who did add, “so far he’s doing OK. “I just worry, he’ll go crazy all over again — and totally lose control.” “I don’t care what anyone says,” added a second source. “Charlie has always been a trigger for Brooke’s addictions. Always has been. Always will be. I’m sorry, I just don’t think that will ever change.”
Money market fund assets fall to $2.569 trillion - Yahoo Finance
NEW YORK (AP) -- Total U.S. money market mutual fund assets fell by $5.35 billion to $2.563 trillion for the week that ended Wednesday, the Investment Company Institute said Thursday.
Assets of the nation's retail money market mutual funds rose $369 million to $889.88 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category rose $390 million to $702.8 billion. Tax-exempt retail fund assets fell $17 million to $187.08 billion.
Meanwhile, assets of institutional money market funds fell $5.72 billion to $1.673 trillion. Among institutional funds, taxable money market fund assets fell $5.61 billion to $1.586 trillion; assets of tax-exempt funds fell $110 million to $86.95 billion.
The seven-day average yield on money market mutual funds was 0.03 percent in the week that ended Tuesday, unchanged from the previous week, said Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass.
The 30-day average yield was also unchanged from last week at 0.03 percent. The seven-day compounded yield was flat at 0.03 percent. The 30-day compounded yield was unchanged at 0.03 percent, Money Fund Report said.
The average maturity of portfolios held by money market mutual funds rose to 46 days from 45 days in the previous week.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from last week at 0.13 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts was unchanged from the week before at 0.06 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from the previous week at 0.22 percent. The yield on one-year CDs was also unchanged at 0.33 percent. It was flat at 0.53 percent on two-and-a-half-year CDs and steady at 1.13 percent on five-year CDs.
Google Has A Magic Money Making Machine - The Business Insider
The number one comparison point for Facebook as it headed towards an IPO was Google. Facebook, like Google, was a giant web company that had hundreds of millions of users. Facebook, like Google, was working on highly-targeted ads that could hit hundreds of millions of consumers.
But a funny thing happened on Facebook's path to becoming Google 2.0 (from a business perspective). Everyone suddenly realized Facebook's ads aren't that good. And everyone realized that Facebook's ads, while very good at targeting, aren't nearly as powerful or effective as Google's.
And then everyone realized Facebook isn't going to have its own magic money making machine. If it's going to make lots of money, it's going to be more of a grind to figure it out.
In our newsroom, someone threw out a good analogy for Facebook's ad business*: It's like you're at a party, standing around, talking to your friends, and someone made the posters on the wall advertisements. Maybe you'll look at them, but they're not really what you're there to do.
Google, on the other hand, is like you're walking through a grocery store looking for whatever you need and the advertiser gets to jump in at the last second and offer you what you're looking for.
As Chris Dixon has written, successful online advertising is all about purchasing intent. How do you capture commercial consumer interest?
Google's entire business is based on people asking commercial questions and giving advertisers an opportunity to provide the top 2-3 answers to the question.
That's an amazing business. And it's one Facebook doesn't have.
That's not say Facebook isn't going to figure out a way to make gobs and gobs of money. It has 900 million users. It has a team of super smart people looking to solve a hard problem. It can figure something out.
It's just not likely to be a magical money making machine like what Google has.
Don't Miss: Here's What Could Happen Next To Facebook's Stock
*We apologize if this analogy was from somewhere else and we didn't realize. Credit to whoever came up with it.
Money to invest: Obama or Romney? - Jackson Clarion-Ledger
If I were investing my own money, whom would I trust to run a company and make a profitable return?
If the choice were between someone who had been successful and made buckets of money for others who had invested with him, or someone who had not only lost money but who had also actually taken investors' money and given it to some of his cronies ... well, whom would you trust?
Let's face it: Mitt Romney has made buckets of money for those who have invested their own money with him in his business ventures. Even the Obama camp admits that.
On the other hand President Barack Obama has invested hundreds of billions of dollars in the auto sector, energy sector and "stimulus" sector of our economy ... that is, none of his own discretionary money we are aware of, but hundreds of billions of tax dollars the IRS demands from us every paycheck. But he didn't stop there. In our name - USA taxpayers - Obama has borrowed trillions of dollars to invest in many sectors. What are the results?
To save GM and Chrysler, he invested $82 billion tax dollars. Surely this hefty amount would "save" Detroit? No, both companies declared bankruptcy anyway. By the way, those two companies still owe about $24 billion.
Union workers didn't lose a nickel, but those of us who had GM or Chrysler stock in our pension plans lost our shirts. Oh, and 2,500 non-union autoworkers lost their jobs not counting the closings of hundreds of dealerships and workers who lost their jobs.
In the energy arena, Obama not only shut down a hundred thousand or so jobs through his moratorium on drilling in the Gulf of Mexico, but he also invested tens of billions of taxpayer dollars in green energy, promising to create 5,000,000 new jobs. So, how's that working? Can you say Solyndra, Beacon Power or Ener1? Not any more, since they've all filed for bankruptcy.
And, let's not forget the nearly trillion-dollar investment in "shovel-ready jobs" poured into an abyss at the beginning of his presidency.
How many jobs have all of Obama's investments created? Checking the Bureau of Labor Statistics, we have fewer Americans working today than we had before he took over investing in our economy.
We have to give the president credit - literally. He's spent trillions of taxpayer dollars trying to rev up the economy, and he's borrowed nearly $6 trillion more that our grandchildren will have to repay. If I were investing my own tax dollars, whom would I want to run this country? If you earn a paycheck, you're investing too. Choose carefully. Our grandchildren will judge our choices.
EU finance ministers haggle over bank rules - Yahoo Finance
BRUSSELS (AP) -- European Union finance ministers are to meet in in Brussels Tuesday to hammer out an agreement over how high banks should build their defenses against future financial shocks, with the U.K. running the risk of being isolated over who should set the height.
The EU's 27 members agree on the need to increase capital reserves of banks, following an international agreement called Basel III, which was negotiated by the world's largest economies to avoid another financial meltdown such as the one brought on by the collapse of U.S. investment bank Lehman Brothers in 2008.
But the U.K. wants national regulators to be able to set requirements significantly higher than those of the EU — a position opposed by almost all other EU members, who fear investors might then prefer UK banks and flee from those in other countries.
On his way into the meeting Tuesday morning, George Osborne, the British chancellor of the exchequer, was non-committal about the possibility of reaching an agreement.
"This is a time of considerable uncertainty in the eurozone economies," he said, referring to the 17 countries — the U.K. not among them — that use the euro currency. "And that uncertainty is undermining the entire European recovery. And I think we're reaching a point where we've got to make a decision to see the eurozone stand behind their currency. A very important part of that, of course, is strengthening the entire European banking system. And that is what we intend to do today."
Once enacted, Basel III would require lenders to increase their highest-quality capital — such as equity and cash reserves — gradually from 2 percent of the risky assets they hold to 7 percent by 2019. An additional 2.5 percent would have to be built up during good times. All members of the G-20 have agreed to implement Basel III; if the European Union succeeds, it would become the first entity to institute the new requirements.
The U.K. is arguing that, because national taxpayers have to bail out banks when they fail, national authorities should be able to set more stringent requirements to guard against such failures. A compromise proposal offered by the Danes, who hold the rotating presidency of the European Union, would allow national authorities some leeway to increase requirements beyond those called for in the Basel III agreement. That proposal has broad support — except, so far, from the U.K.
The finance ministers can approve the compromise proposal without British support, through what is known as qualified majority voting, in which member countries have different numbers of votes according to their populations. However, there is a tradition in the EU that changes that would affect an industry in a particular country — such as the banking sector in the U.K. — are not forced into effect over the objections of that country, and consensus is sought.
"I think there should be a unanimous decision on such an important issue," Swedish Finance Minister Anders Borg said on his way into the meeting.
Finance and Services looking for a CIO - CIO Australia
The New South Wales Department of Finance and Services division is recruiting a chief information officer (CIO).
The CIO will be responsible for driving the ICT strategy of the department and leading the consolidation of technology requirements across the entire department. This will include promoting the department’s technology agenda and utilising leading-edge technology.
The CIO will also ensure the security and ongoing operational delivery of information systems is carried out, along with software applications, hardware and technology networks.
The CIO is expected to be visionary, pragmatic and able to find opportunities to drive change with innovative technology solutions.
The department requires job candidates to have experience managing costs and maximising results, have effective communication skills with stakeholders, be able to provide technical advice to the executive team and have success in using technology to drive change in large and complex environments.
The CIO will be in charge of an $85m operating budget and a $50m capital works budget.
The CIO will report to the deputy director general - corporate services.
The contract will be for up to five years.
Applications close 12 June, 2012.
Follow Stephanie McDonald on Twitter: @stephmcdonald0
Autonomy is important but CBN needs to restructure itself – Unegbu - Vanguard
By Babajide Komolafe
Mazi Okechukwu Unegbu is the Managing Director/Chief Executive, Maxifund Investment and Securities Limited and President of Chartered Institute of Bankers of Nigeria (CIBN) from 2002 to 2004. In his over 30 years career in banking and finance he has worked in prominent financial institutions including First Bank, defunct African Merchant Bank, Progress Bank (rose to become Chairman/Chief Executive), Broad Bank and Citizens Bank (as Chief Executive in 2005).
As the guest speaker at the Zenith Bank sponsored Bi-monthly Discourse of Finance Correspondents Association of Nigeria (FICAN) held last week, he barred his mind on recent development in the nation’s financial sector especially the planned removal of the autonomy of the central Bank of Nigeria (CBN) by the National Assembly, the recent probe of the near collapse of the nation’s capital market by the House of Representatives and the demutualization of the Nigeria Stock Exchange. Excerpts:
Considering the fact that the capital market collapsed in 2008, What is your take on the timing of the probe of the near collapse of the capital market by the House of Representatives? Is the timing right and is it properly focused on the necessary issues?
I do not agree with you that the timing of the probe was wrong. If you realize at some time most of us were saying let the government intervene in the market not by giving money but by reviewing the structure. For instance, the Securities and Exchange Commission (SEC) is set up by law, the structure in that place is not correct. There was lack of proper co-ordination between the capital market regulator and the place that provide the platform.
The Nigerian Stock Exchange is what we call a self regulatory organization providing the platform that enables market to be conducted and the license is regulated by the SEC. And we were calling for proper restructuring of the SEC the way it was and we can see that coming out very vital during the probe. So, I think some of the issues raised were also apt, even if everything was not such. It was only spoiled through what I may call inexperience of the legislators that is to some decree and the impunity role of the SEC.
The regulators made a mistake of going to issues and then raise them when the issues have not being genuinely touched. If the regulators have taken time, let us go. You don’t do things with a preconceived idea to find somebody guilty. That is why the problem arose and that was what happened that almost diverted attention from the real issues. Some of the issues that came up that were not suppose to be there. I mean that is my advice to that and I tell you also that that is why I am calling for a re-thought in financial regulation. There should be a rethought. Financial regulation should not be base on impunity but be based on facts.
On the ongoing debate about the quest of the National Assemble remove the autonomy of CBN, you said the problem is that the we have a weak CBN but a strong CBN Governor and that what is needed is to strengthen the CBN. But what measures can be put in place to ensure that whoever becomes the CBN Governor does not use the CBN to pursue what might be perceived in some quarters as religious or political interest?
Then the CBN autonomy, I think I have even answered that during my presentation. I said that all we need to do is to set up strong institutions. Let the institutions be strong. Let it be, if you go there tomorrow what you see on ground will determine how you are going to do the job. You see that in the US Federal Reserve the man there now is still following what was there before.
Mazi Okechukwu Unegbu
But in our own system I was talking about I think I talk financial friction, I have talked about the US- UK model; I have talked about the euro zone model. I said we don’t know what model we are following here and this model we need to look at what the situation is because as far as we are concerned conservatism is the essence of regulation both for the capital market and the banking sector or money market.
So it is important that whoever is at the Head of that institution should first of all sit down, study the institution before you start talking.. That is why most of the managing directors of banks that I know, those that were there when the banks were in trouble, and the moment they got there they started talking , we are going to raise it to a high level. That is all balderdash, because you don’t know where you are.
Before you start making that comment you must first of all know your environment, get the environment working fine, take appropriate note; get to know the people that are working with you before you start commenting. I remember when I was appointed the managing director of Citizens Bank and one of you complained that I was not talking, saying it is unlike you. I told him what you want me to say.
I have just spent one month. I don’t even know where I am. I told him to come back after nine months because by then I would have known the system and I would be talking from the experience of what I have done rather than getting there and after one month start talking. That is the problem that we have. So for anybody, conservatism is a very important aspect of our business.
Let me tell you why autonomy is very important. In times of crises, let me give you the example, I remember I was in banking when the CBN reports to the ministry of finance and to the presidency. I was then given a mandate in First Bank then to set up FBN Merchant Banker. Myself and four other people and that was when Atedo Peterside was also going for his own bank as a merchant bank then and each time we go, the ministry of finance was here in Ikoyi and the other arms have moved to Abuja.
It was a very terrible thing because in the ministry of finance, to move files; it could take you three months. To get license that time was like going through hell and coming back. So the files will never moved and you want to know, at that time bribery is not the way it is known now because you cannot come back to tell the your MD, they say I should bring money. You dare not say it. At that time things were still good but it took time. So that is a strong reason, so when they removed the CBN from the stranglehold of the ministry of finance, we all applauded it.
Then it was now going through the presidency and all that. There was a time when they had the instrument autonomy and then they also have the policy autonomy. Initially they granted them the instrument autonomy which made it easy for them to relate quickly with the banks and deal with them fast. Before that time you have to go through ministry of finance before you can close the bank. So, do want us to continue with that?
I have told you why the autonomy issue is coming. It is because there is one strong individual holding forth in a very weak and disorderly structured institution. So why not let us ask that the institution should restructure itself to take care of the imbalances in its structure, the lack of foresight in the regulation. If they can do that, then whoever goes there, things will keep going.
I tell you, let me give you example, in First Bank that is why the bank is still growing. I don’t know what it is now but at that time if you like come from the air with all those razz mantas or grammar or you do it like this, you do it like that, there is a system that has been set in place, that this bottom-up approach to situations and once the middle say it agrees with the bottom, that this thing is not right to do, no managing director can change it. That is the system, a strong institution.
You see before Even CBN talked about tenure limit for bank chief executives, there was already a tenure limit in First Bank. You can’t spend more than two terms, three years or so and once you scale through that you are up and another person is being groomed to take over. That has being the system and it is working for them perfectly. For me we should not disturb the autonomy of the central bank as that will be dragging us back to the 80s.
You said there is need for more Exchanges before the Nigeria Stock Exchange is demutualised. An you elaborate on this?
I did say that the danger of demutualising is converting a mutual institution to a one now owned by private businesses. Now, it is not parallel exchange, even if they call it parallel, let them come, let them compete among themselves. Competition is the fuel of business so that they can have services.
When it came up the former stock exchange authority kicked against it and some of us were called names for supporting it. Because I remember I became a member of the Abuja Stock Exchange, I am still a member of the Abuja Commodity Exchange, I still belong. The reason is this; it is dangerous to have one monopoly, that monopoly would hold all the power. Take it or leave it.
Secondly if you now think that if we demutualize that particular monopoly without other competing organizations, we are going to face a problem. And I did say that supposing something happens to that privately owned business like some banks failed, in your korokoro eyes many banks failed in this country.
Supposing those banks that fell and there is no NDIC to pay you N100,000 or N200,000 as insure deposit and there is no other bank that you can go to what will happen? The system will ground to a halt. So that is why we are calling for more exchanges, so that if we demutualise the current Nigeria Stock Exchange and something goes wrong with, there is an alternative.
Now assuming you have the share of First Bank and they demutualised the Nigeria Stock Exchange and because of the greed of capitalism and because of the greed of directors, because of the greed of staffers, and because of so many externalities that affect that business, and because we have to compete with other exchanges outside Nigeria and something happens to it and you have First Bank certificate or shares to sell and there is no platform and there is no other platform for you to do that. If there be is a struggle, are you not going to have financial difficulty even when you have something that can bring you money.
And secondly if those things happen, people wanting to raise money cannot raise money because the Exchange has failed. So you face problem of illiquidity and also you face problem of not being able to raise a development capital from the market. But if there is an alternative you don’t need to depend on that because you can take your share to another exchange, maybe in Ibadan or somewhere to raise money with your share.
So that is what am saying if you want to demutualize I am not against it, I know you people are not against it but we are saying there is a danger if you should demutualise and there is no other alternative competing exchanges, we would have problem should there be collapse of that particular exchange.
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