Talk Back

by Jessica Holzer

Dow Jones Newswires

WASHINGTON (Dow Jones)–Securities and Exchange Commission Chairman Mary Schapiro said Friday budget constraints were hampering the regulator’s ability to enforce U.S. securities laws, in her bluntest remarks yet on the resource strain facing the agency.

Schapiro, speaking at a legal seminar in Washington, D.C., said the budget strain was forcing market analysts to use decades-old technology to “monitor trading that occurs at the speed of light.”

She also suggested that data-management systems and a digital forensics lab were on the chopping block unless Congress acted to increase the regulator’s budget.

Also, she indicated the agency didn’t have the funds to hire the market experts it needs to keep ahead of fraudsters and manipulators.

The SEC was tasked with wider responsibilities by the Dodd-Frank financial law, but Congress hasn’t increased the agency’s budget.

With Republicans back in control of the House of Representatives, the prospects for a boost in the agency’s funding have dimmed significantly.

House Republicans on Friday unveiled a plan that would slash nondefense, discretionary spending for the rest of the year by 9%, a cut of $43 billion compared with 2010 levels. The plan didn’t contain details about cuts at specific federal agencies.

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By Brian Baskin
A DOW JONES COLUMN

NEW YORK (Dow Jones)–Crude futures on Thursday plunged to their lowest point since July, slammed by concerns about an oil glut in the U.S. Midwest and the possibility of a European economic slowdown.

In thin trading, the expiring contract for light, sweet crude for June delivery traded as low as $64.24 a barrel, an 8% swoon on the New York Mercantile Exchange. The most-active July contract fell to $68.85 a barrel, a 5% drop. Brent crude on the ICE futures exchange was recently down 4% at $70.74 a barrel.

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By Eduardo Kaplan
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)–Jim Murphy, a Dow Jones Newswires columnist whose powerful and often irreverent voice made him a favorite among readers and newsroom colleagues, died Monday at his home in Jersey City, N.J. He was 66.

Jim Murphy

Jim died in his sleep, said a family member. No official cause for the death has been determined.

Jim joined Newswires in 1995. During his stint as an editor, and especially as a columnist, Jim was often described as an iconoclast, a term often reserved in newsrooms for the type of strongly opinionated personalities who speak their minds regardless of the consequences.

His column resonated with readers and quickly became one of the more popular features on the wire. Jim received a National Headliners Award for his column in 1999, and in 2003 he was recognized with Newswires’ Clabby Award.

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By Neal Lipschutz

A DOW JONES NEWSWIRES COLUMN

At least for the day, the most powerful man in the U.S. financial industry and for equities markets is 82 years old, a man who ended his leadership of the Federal Reserve more than 20 years ago.

But Paul Volcker is back. Big time. Reportedly on the margins of the Obama administration even in his current role as an adviser, “the tall guy behind me,” in the words today of President Barack Obama, is back on stage figuratively and literally.

As the president announced two major initiatives that would radically change the world of America’s big banks, he was flanked by Treasury Secretary Timothy Geithner and adviser Larry Summers. He also had with him two key Congressional leaders, Rep. Barney Frank (D., Mass.) and Sen. Christopher Dodd (D., Conn.).

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By Kejal Vyas

Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)–The government of Bangladesh aims to boost foreign direct investment into the country to $7 billion by 2015, Prime Minister Sheikh Hasina said Thursday.

The country has also set aside $350 million for three public-private partnership programs in an effort to draw foreign money, Hasina said at an address in front of a small group of investors in New York.

It’s an ambitious target for a country which is one of the world’s poorest and whose name often invokes images of severe natural disasters, military coups and political corruption.

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AerCap Holdings NV (AER) announced it will acquire Genesis Lease Ltd. (GLS) in a $300 million all-stock merger of European aircraft-leasing companies.

Genesis disclosed Monday it was in merger talks with an unnamed partner, but a trade publication said AerCap was expected to make a takeover offer.

The bid is one AerCap share for each Genesis share. AerCap shares closed Thursday at $8.81 and Genesis American depositary shares ended at $8.45. Genesis holders would own 29% of the combined company.

Based on Gensis’ balance sheet, the companies said the deal is worth $1.75 billion.

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World Wrestling Entertainment Inc. (WWE) Chief Executive Linda McMahon stepped down, one day after joining the increasingly crowded Republican field looking to take on embattled Sen. Chris Dodd (D-Conn.).

WWE Chairman Vince McMahon will assume the additional duties of CEO, supported by “the seasoned executive management team already in place,” the wrestling entertainment and media company said.

The announcement came as WWE grapples with the weak economy and competition from sports such as kickboxing. Still, WWE’s profit nearly tripled in the latest quarter amid cost cuts as revenue rose 7%.

Linda McMahon, 60 years old, is the fourth Republican to declare her candidacy, following former U.S. Rep. Rob Simmons, state Sen. Sam Caligiuri and former U.S. Ambassador to Ireland Tom Foley. Dodd will be seeking a sixth term in next year’s election.

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MUMBAI (Dow Jones)–India’s Agriculture Ministry will send a team of experts to drought-hit areas to help increase the area under the upcoming winter crop and improve productivity, a government statement said Thursday.

Wheat is the main winter crop, sowing of which starts in October-November.

A dry spell during June and July has damaged crops such as rice, oilseeds and pulses, but the federal government is hoping late summer rains from mid-August will help improve the area and output of winter crops.

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NEW DELHI (Dow Jones)–Helped by a late revival in monsoon rainfall, India’s sugar production is expected to be around 10% higher than a previous government estimate of 16 million to 17 million metric tons in the marketing year beginning Oct. 1, Agriculture Minister Sharad Pawar said.

The expected rise in output will likely reduce the need for imports by the world’s largest consumer of sugar. India’s annual sugar demand is estimated to be 22 million to 23 million tons.

The country was forced to import this year after production fell to just 15 million tons, sharply down from the 26.3 million tons produced in the marketing year ended September 2008.

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