Federal Prosecutors Are Investigating Wells Fargo’s FX Business

Last week, WSJ stoked fears that the Feds might be ramping up another probe into abuse and manipulation in the foreign exchange market when it reported that Wells Fargo had abruptly terminated four bankers from its FX business and transferred another. Now, Wall Street’s paper of record is reporting that Federal prosecutors are investigating Wells for abuses in its FX shop – but the scope of the investigated is limited to one disputed trade.
According to WSJ, prosecutors have subpoenaed information from Wells and from the recently fired bankers as they investigate a trade and ensuing dispute between Wells and one of its clients, Restaurant Brands International Inc.
RBI owns several fast-food franchises, including Burger King, Tim Hortons and Popeyes Louisiana Kitchen. In an amusing twist, both companies count Warren Buffett’s Berkshire Hathaway as one of their largest shareholders.

This post was published at Zero Hedge on Oct 27, 2017.

Another Fed Win- More Jobs For Seniors

Last week I showed you how, with ZIRP and QE, the Fed has stimulated growing leisure time for increasing millions of Americans. Here’s even more evidence of the success of Fed policy – the ever increasing job opportunities for US senior citizens.
Trust me, we’re thankful about this because we sure aren’t earning any income on our life savings. In fact, the Fed has been doing its best to confiscate them while it pays interest to the banks. If our savings are exhausted before we drop dead, thank goodness there’s always work to be had.
‘Welcome to Burger King. May I have your order please?’

This post was published at Wall Street Examiner by Lee Adler ‘ June 12, 2016.

Restaurant Shares Tumble After Wendy’s Warns of Slowing Sales

Restaurant stocks slid on Wednesday after Wendy’s Co. said that sales were soft in April, causing concern among investors that demand may be slowing across the fast-food industry.
Wendy’s shares fell as much as 9.1 percent to $10.16 after the company, which reported earnings Wednesday morning, said that same-store sales in the second quarter would grow less than its 3 percent target for the full-year. It was the biggest drop in Wendy’s shares since November 2013. Shares of El Pollo Loco Holdings Inc., Popeyes Louisiana Kitchen Inc., Jamba Inc., Sonic Corp., Shake Shack Inc., Dunkin’ Brands Group Inc. and Burger King owner Restaurant Brands International Inc. each slipped more than 3 percent.
Fast-food stocks have been a ‘place to hide’ for investors in recent months, and comments from Wendy’s and other restaurant-executives about a weak April led to today’s selloff, said Will Slabaugh, an analyst at Stephens Inc.
‘A decent amount of money has plowed into these stocks over the last few months, and now we heard that things might not be as rosy as we thought,’ he said. ‘There’s been a bit of a run to the exits.’

This post was published at bloomberg

2008 Redux Times 10 Is Brewing

Using the ‘jobless claims’ metric, the financial media and snake oil salesmen would have us believe that the Government-compiled jobs market metrics indicate ‘sustained strength in the labor market that should further dispel fears of a recession’ – Reuters’ Animal Farm.
A reader asks: ‘if the jobs market is so good why did my bilingual daughter, who graduated with a 3.8 GPA from Ga. Tech [Dr. Paul Craig Roberts’ undergrad school], not get a job offer for two months until someone I know hired her?’
A funny thing, those Government compiled, manipulated and propagated reports. I answered with: ‘She was fishing in the wrong fishing hole for jobs – she should have been sending her resume to Burger King and Starbucks. But it sounds like the service sector is starting to shed jobs as well. I honestly don’t know how they are coming up with their jobs reports. As for the jobless claims, it makes sense that the claims are dropping like this. As the labor force shrinks, especially the component that would qualify for jobless benefits, the number of people who file for jobless benefits shrinks, right?’
The first time I read ‘1984,’ I tried to imagine Orwell’s vision superimposed on the United States. Now I don’t have to imagine. Instead of Big Brother spying on us through our televisions (and they might through ‘smart’ tvs), the Government monitors us through our cell phones, emails and web-browsing. It’s truly frightening and it’s quite stunning how so few in this country understand – or are willing to accept – the degree to which it occurs on a daily basis.

This post was published at Investment Research Dynamics on March 10, 2016.

Dear Striking Fast-Food Workers: Meet The Machine That Just Put You Out Of A Job

Today, U. S. fast-food workers will strike across 270 cities in a protest for higher wages and union rights that they hope will catch the attention of candidates in 2016 elections, organizers said.
The walkouts will be followed by protests in 500 cities by low-wage workers in such sectors as fast food and home and child care, a statement by organizers of the Fight for $15 campaign said on Monday.
The protests and strikes are aimed at gaining candidates’ support heading into the 2016 election for a minimum wage of $15 an hour and union rights, it said.
The strikes and protests will include workers from McDonald’s, Wendy’s, Burger King , KFC and other restaurants, the statement said.
And while we sympathize with their demands for higher wages, here is the simple reason why they will be very much futile.
Dear fast food workers of the US – presenting you nemesis: the Momentum Machines burger maker.
According to a recent BofA reported on how robotics will reshape the world, San Francisco start up Momentum Machines are out to fully automate the production of burgers with the aim of replacing a human fast food worker. The machine can shape burgers from ground meat, grill them to order with the specified amount of char, toast buns, add tomatoes, onions, pickles, and finally place it on a conveyor belt.

This post was published at Zero Hedge on 11/10/2015.

Undersize Me? McDonald’s Franchise Owners Admit Fast Food Giant “Facing Its Final Days”

Having seen the writing on the $15 minimum wage wall…
And given the new ‘lack of transparency’ following McDonalds’ managements’ decision to stop reporting sales numbers monthly…
It appears McDonalds’ franchie owners are voicing their concerns… rather ominously… as TheAntiMedia.org’s Nick Bernabe reports,
Embattled fast food giant McDonald’s is making headlines yet again. The company has just launched its much advertised all-day breakfast program, but as that campaign rolls out, franchise owners are voicing their concerns over what may be the company’s dying days.
As we covered at Anti-Media in June, the McDonald’s franchise has been shrinking for the first time in the company’s over 40 year history:
‘McDonald’s announced in April that it would be closing 700 ‘underperforming’ locations, but because of the company’s sheer size – it has 14,300 locations in the United States alone – this was not necessarily a reduction in the size of the company, especially because it continues to open locations around the world. It still has more than double the locations of Burger King, its closest competitor.’
However, for the franchisees, the picture looks much worse than simply 700 stores closing down.

This post was published at Zero Hedge on 10/18/2015.

6 Warning Signs That the Economy Is in Trouble

On July 14, I wrote about the danger developing in the transportation sector, and things are looking even worse today. Here’s what I mean:
Look Out Below #1: Royal Dutch Shell reported its quarterly results last week – $3.4 billion, down from $5.1 billion for the same quarter a year ago – and warned that ‘today’s oil price downturn could last for several years.’
***
In anticipation of tough times, Shell slashed its 2015 capital expenditure budget by 20% and is going to lay off 6,500 high-paying jobs (not Burger King-type jobs) this year.

This post was published at Mauldin Economics on AUGUST 4, 2015.

Freddie Mac Plans to Sell Second STACR Risk Share Deal of 2015 (Still Waiting For The Mega FM STACR!)

I wish Freddie Mac would come up with a different name for their risk sharing deals instead of STACR. It reminds me too much of Burger King’s BK Stacker.
(Bloomberg) – $725m credit risk deal, according to company press release. Co-lead managers and bookrunners: Credit Suisse, BofAML.
STACR Series 2015-HQ1: Freddie issuing 150bps of first loss and rating M-3 bond; Freddie holds senior loss risk in reference pool and portion of risk in M-1/M-2/M-3 and first loss Class B tranche.
‘We expect routine sales of the higher LTV benchmark HQ series to facilitate more transparency and liquidity in the credit risk transfer market,’ said Mike Reynolds, Freddie Mac vice president of Credit Risk Transfer
STACR Series 2015-HQ1 has reference pool of recently-originated single-family mortgages with unpaid principal balance of more than $16.5b
Freddie Mac’s STACR deals allows for the transfer of credit risk away from Freddie (and taxpayers) and to investors. Here is a list of STACR Risk-sharing notes that have been issued since 2013.

This post was published at Wall Street Examiner on March 20, 2015.

Dan Mitchell: The Immoral US Tax Regime

The following video was published by misesmedia on Jan 29, 2015
Taxes sound like a boring subject, but Dan Mitchell brings great energy and passion to the subject: he’ll tell us why the US ‘worldwide’ tax regime violates the basic human right not to be hounded by a country in which you neither live nor have income, why Burger King was right to move its corporate headquarters out of the US, why greedy politicians hate tax competition, and why invasive laws like FATCA should scare anyone who cares about privacy.

The M&A Gift That Keeps On Giving: Mass Layoffs Coming To A Tim Hortons Near You

There are three things that are certain: death, taxes and M&A “synergies.” And while the recent debt and record stock price-funded M&A bubble has been a present from god, or rather the Fed, to the activist shareholders and owners of target stocks (and acquirors, because in the New Normal M&A announcements somehow boost the price of both), it has been a scourge for everyone else: namely the employees of companies that undergo M&A as the first and foremost place where EPS “synergies” are extracted is by eliminating duplicative headcount, read mass layoffs. This is precisely what workers at Canada’s Tim Hortons are about to find out first hand, because as Financial Post reports, citing a study from the Canadian Centre for Policy Alternatives, “widespread layoffs and strict cost cutting measures could befall Tim Hortons if Burger King’s parent company takes over the chain.” Small correction replace “could” with “definitely will” and the sentence will be spot on.
From the Financial Post:

This post was published at Zero Hedge on 10/30/2014.

WHY BURGER KING’S EXPATRIATION IS THE MORAL THING TO DO

It was announced last week that Burger King had bought a famous Canadian restaurant franchise known as Tim Horton’s to reduce the amount of taxes they “owe” to the US government. An upcry arose!
As usual the mainstream media and the people who watch it have the story totally wrong. Burger King is not giving US taxpayers a “raw deal” by looking to move abroad so as to save on profits which are not repatriated. Instead, the iconic fast food burger chain is doing the moral thing by moving its tax-base outside the war-mongering, highly socialist US federal government’s reach.
The mainstream media will never give you this side of the story. This obvious trend towards expatriation terrifies the talking heads. You have to come to alternative media sources like The Dollar Vigilante (TDV) Blog and others to get the truth. As Howard Kurtz writes at Fox News,
I feel confident in saying that most Americans are disgusted by the perfectly legal practice of US companies avoiding taxes by incorporating in another country.
If this is the case, it is because Americans love bombing other countries. They lust for blood. I can think of no other logical explanation Americans would want the machine in Washington to continue being fed. Burger King is not the first company to make the moral decision to leave the US tax farm. Many American companies are going abroad – as many as 70. These so-called “inversions”. Even the most American of investors stand behind the inversion. Iconic American billionaire, Warren Buffet, coughed up $3 billion so the hamburger chain could buy the Canadian donut outfit Tim Hortons. Buffett did this just one month after Obama denounced ‘inversion’ tactics as an ‘unpatriotic tax loophole’, ordering regulatory changes to undermine them.

This post was published at Dollar Vigilante on September 2, 2014.

Keiser Report: Fast Food Tax Evasion (E647)

The following video was published by RT on Aug 30, 2014
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss Burger King, yet another company fleeing America for yet another ‘free’ healthcare nation, Canada. Meanwhile, back in America naked incidents are on the rise and, in Europe, suicide tourism rises four-fold. In the second half, Max interviews Trace Mayer about bitcoin, central banking and geopolitics.

Rob Kirby: Capital Markets Hallucinating Off Low Interest Rates

The following video was published by WallStForMainSt on Aug 28, 2014
Wall St for Main St interviewed Rob Kirby from Kirbyanalytics.com. In this podcast, we touched on the subject of repos and reverse repos and the effect it has on the capital market. Also, we went in depth on the Federal Reserve and what is their purpose in the market and economy.
Then, we talked about leveraged buy outs and what impact Burger King acquisition of Tim Hortons will have for future M&A. Finally, we talked about the current state of the gold and silver market.