Citigroup to Close Hedge Fund; Blow to CEO (WSJ)
This makes for a good newspaper story: Pandit CEO, Citi closing his old fund Old Lane, cause it's just not worth it anymore, but essentially this story boils down to: hedge funds haven't exactly been stellar assets as part of the big banks, and their fall from glory has been swift over the last 12 months. Citi had been mulling whether to replenish the fund with its own capital, but Citi isn't exactly swimming in it. Oh and Pandit himself recused himself from the discussion. "The departures of Mr. Pandit and other high-ranking Old Lane officials for bigger jobs at Citigroup triggered a provision allowing outside investors to withdraw their money from the fund. In April, "substantially all" of them moved to do so, pulling nearly $3 billion, according to a securities filing."
Brewer Bids $46 Billion for Anheuser-Busch (NYT)
Jeez that took long enough to come about, didn't it. This newss has felt old for what, two weeks now? Anyway, finally the two sides can get to dealing, and beer protectionists can officially go to congress to express their outrage. It's going to be bad, cause people are addicted to this stuff. And the politicians: "Gov. Matthew R. Blunt of Missouri said in a statement Wednesday that he opposed any sale. "Today's offer to purchase the company is deeply troubling to me," he said, adding that he was directing the state's department of economic development to explore ways to keep Anheuser-Busch in St. Louis."
Housing Slump Helps the Draw of Fixer-Upper TV (NYT)
Awesome Brian Stelter piece explores the question: why are home shows still popular, weren't those simply a by-product of the housing bubble? Yes, they probably were. And they still might be some sort of indicator that's 12-18 months behind. Kind of like hiring. Or as one person in the article put it: "People loved comedies during the depression, too." The big change is that the shows are no longer so much about the transactions, the big sell, but about some other emotional message, or even the big non-sale "hahaha, you got screwed on your flip" makes for good TV, no?
Thornburg Mortgage Reports 1Q Results
This is why stocks that once traded like real stocks now trade sub-$1. From the announcement: "Thornburg Mortgage, Inc. today reported a net loss before preferred stock dividends for the quarter ended March 31, 2008 of $3.306 billion, or a loss of $20.64 per common share, as compared to net income of $75.0 million, or $0.62 per common share, for the same period in the prior year." We read through a lot of bad stuff in search of the silver lining. Eventually, we found it: ""While this market environment remains challenging, we believe our jumbo and super jumbo loan origination franchise provides unique value to our clients and lending partners and allows us to create an exceptional, high quality portfolio of mortgage loans. Despite the continued modest increase in loan delinquencies in the first quarter of 2008 and our expectation that delinquencies are likely to continue to increase modestly over the balance of the year, the credit quality of our originated and acquired loan portfolio continues to perform extremely well, and their performance is consistent with our current estimates."
Salmonella-Tainted Tomatoes Linked to Markets, Restaurants (WashingtonPost)
Question for readers: Should we have been giving more attention to the tomatoes/salmonella thing since it broke. The answer is no, right?
Thornburg Mortgage Reports 1Q Results
This is why stocks that once traded like real stocks now trade sub-$1. From the announcement: "Thornburg Mortgage, Inc. today reported a net loss before preferred stock dividends for the quarter ended March 31, 2008 of $3.306 billion, or a loss of $20.64 per common share, as compared to net income of $75.0 million, or $0.62 per common share, for the same period in the prior year." We read through a lot of bad stuff in search of the silver lining. Eventually, we found it: ""While this market environment remains challenging, we believe our jumbo and super jumbo loan origination franchise provides unique value to our clients and lending partners and allows us to create an exceptional, high quality portfolio of mortgage loans. Despite the continued modest increase in loan delinquencies in the first quarter of 2008 and our expectation that delinquencies are likely to continue to increase modestly over the balance of the year, the credit quality of our originated and acquired loan portfolio continues to perform extremely well, and their performance is consistent with our current estimates."
Dollar Rises Before Report Likely to Show Gain in Retail Sales (Bloomberg)
All this talk of renewed hawkism (which we don't believe, btw) has the dollar in rally-ish mode. And maybe (maybe) there's a good retail sales number about to come out, and maybe that'll make the fed comfortable about raising rates.
It's not theft, it's an homage (Megan McArdle)
Like blogs? Here's an interesting looking job at Dow Jones Newswires looking for someone who can: "mine publishable scoops and intelligence from the world of
blogs." Once done mining the person will: "(funnel) short, spirited and well-written items into "Market Talk" - effectively Dow Jones Newswires' running blog on corporate and market developments." Megan thinks this is all about "stealing" blog posts. There's something to that. If any of you get the job, let us know how it goes.
Congratulations to Mike Matusow, Champion of Event #18 (PokerNews)
Awesome: one of our favorite players, Mike Matusow, picked up a WSOP bracelet last night, as well as ($537,862). The win came in the No-Limit 2-7 Draw w/Rebuys tournament. Basically it's not No Limit Hold'em, so don't expect it to be on TV. Matusow embodies everything we like about pro poker -- gambling, going on tilt, lack of control, etc. So props to him and glad he's picked up another bracelet.
Posted by guest , Jun 12, 2008 7:34AM
Hmmm, that Dow Jones business model sounds familiar... Oh yeah, isn't that the New York Times' Dealbook model?
Posted by guest , Jun 12, 2008 7:59AM
matusow is a rude prick. i bet the guards didn't put up with his bs when he was in prison...
Posted by guest , Jun 12, 2008 8:49AM
erin callan is OUT
let the great debate over whether it is wise to appear in glamour shots while your campany is going under commence!
Posted by guest , Jun 12, 2008 8:55AM
*LEHMAN CFO CALLAN, OPERATING CHIEF GREGORY `OUT,' CNBC SAYS
Posted by guest , Jun 12, 2008 8:56AM
yup, thanks, we got it already.
Posted by guest , Jun 12, 2008 8:59AM
She didn't even get fired. Just reassigned back to IBD.
Posted by guest , Jun 12, 2008 8:59AM
Hmm I just walked through the Lehman Building and they are playing that tune "Ding Dong Wicked Witch is Dead" over the squak box!!
Posted by guest , Jun 12, 2008 9:02AM
no they're not.
Posted by guest , Jun 12, 2008 9:02AM
@ 8:59
Clearly they have forced her to resign from the CFO post. An ego like that does not resign unless forced to do so with the public humiliation of being fired.
Posted by guest , Jun 12, 2008 9:05AM
@ 9:02am
Yes they are and all Callan minions are dancing around the accounting dept....it looks like munchkin land!
Posted by guest , Jun 12, 2008 9:09AM
LOL i look forward to seeing the video of that on youtube
Posted by StMarc , Jun 12, 2008 9:10AM
Re: Fixer-upper TV
That's exactly why I still stop on it once in a while. You can tell in about ten seconds when the flipper is an extra-special moron who's gonna end up living in the house and trying to make the payments on the flipper-rate mortgage and the credit cards they used to pay the 50% overrun. I should probably be ashamed, but this Amuses me no end. It's something funny to have on in the background while I'm doing something else.
M
Posted by guest , Jun 12, 2008 9:19AM
How come a CFO gets dinged and all the munchkins go on parade to dance on her grave. Then some dopey analysts get shitcanned and its all.."woe is me.." sympathy party time....all of you need to grow a pair, or at least wear big boy clothes for a while
Posted by guest , Jun 12, 2008 9:27AM
@ 9:19
The munchkins dance when the CFO is cannned for LYING!!!! The associates dance when the Analysts get canned for LYING.
Sympathy is given to those who get canned for the unscrupulous actions of those who LYE and CHEAT and STEAL!!
Maybe you should get some "Big Boy" common sense.
Posted by guest , Jun 12, 2008 9:30AM
@9.27--you're such a loser....a CFO gets canned, they may not be able to raise capital if investors get more spooked and you're thinking its time to be a boy scout? Loser, get real...if LEH has this problem, so do 100s of other banks/brokers.....firing another 50,000 bank/broker workers is the next step
Go back to Iowa and watch the corn grow
Posted by guest , Jun 12, 2008 9:47AM
"Go back to Iowa and watch the corn grow"
Ha ha. Good one :)
Posted by guest , Jun 12, 2008 9:54AM
@ 9:30
Wow you Lehman guys are really taking this hard huh??
It's ok they will bring in anger management and grief counselors to work with you when they show your sorry ass the door!
As for me, not from Iowa, I made the wise move of going over to the buy side..I will be they guy bidding on your apartment when it goes up for foreclosure from there i can watch my $$ grow not the corn.
Don't be scared you can always move back to mommy's basement in NJ and watch your debt grow.
Posted by guest , Jun 12, 2008 10:31AM
even a back office guy can see that the purchase of Old Layne was VP's golden parachute into Citi, and that the fund itself never really mattered; obviously everyone involved knew the investors would withdraw, given that the provisions to do being met to the letter.
Posted by guest , Jun 12, 2008 10:33AM
@ 9:30, 9:54
yeah, you sound like you work for someone who has tons of OTHER PEOPLE'S MONEY to collect management fees on with a 2 year lockup.
What do they have you do, price options?
Posted by guest , Jun 12, 2008 10:34AM
@9.54--I bet you're 57 and living in your Mom's illegal basement apartment in Iowa and have sweated out more semen from your body than a sperm bank gets deposited in 20 years...
Posted by guest , Jun 12, 2008 10:39AM
@ 10:33
You are correct...OTHER PEOPLES MONEY that why we stay in business and your Big Name white shoes bullshit crashes and burns.
Not 57, not in Iowa, and if you are having fantasies of my seamen why dont you swing by my office and I will let you extract it so you can taste it for yourself!
Posted by guest , Jun 12, 2008 10:40AM
I'm sorry 10:33/34 Have I made you horny now???
Posted by guest , Jun 12, 2008 10:43AM
@10.39--so..you're unemployed, post relentlessly on DB and you're gay too? wow...your Mom would be so proud...post a pic and we can decide if she do-able by the trainload...
Posted by guest , Jun 12, 2008 10:49AM
@10:39
white shoes have more class on what them after trucking around FIDI all day than you have all over your embellished, frat boy resume.
In other words, you're white trash.
Remember that guy in the discount broker ads a few years ago?
"My girlfriend models. I'm a VP. Do I LOOK like I need lower rates?"
"Hey, I asked YOU a question."
The first year's the toughest, Mr. BuySide. Well, in your case, probably not.
Posted by guest , Jun 12, 2008 11:01AM
...first and last year , most likely...