I realize that he has bigger, more phallically-named fish to fry, but we were a bit disappointed to see the remarkably restrained and diplomatic letter sent from Ken Griffin to his clients yesterday regarding the pettiness that was JP Morgan's decision to stop trading with hedge fund because many of its employees were peacing for Chi-town. Points for not actually denying the alleged poaching, but we're still holding out hope that after he's done riding sidecar on the Zamboni headed straight for Mr. Cox, he calls up gal-pal Daniel Loeb to help him craft a more robustly worded missive. For now, there's only this:
Dear Investor,You may have seen reports that in response to the continued exodus of talent from JP Morgan to Citadel, JP Morgan has decided to suspend trading activities with our firm. We do not anticipate any disruption to our business, as we continue to interact closely with our numerous other trading counterparties and with JP Morgan for both clearing and financing.
We regret that JP Morgan has chosen this course of action. Our firms have a long history of working together, and Citadel has established itself as one of the world's leading liquidity providers, executing more than five percent of U.S. equity volume and more than 20 percent of U.S. options volume.
We will continue to manage Citadel in a manner that is in the best interest of you, our investors. Given the tremendous consolidation taking place across Wall Street, we have made a conscious decision to expand our business on a global scale, and our platform continues to attract talent from major banks and other organizations around the world.
While these are challenging times in the global financial markets, our long-held belief is that out of difficult times come the most exceptional opportunities. As always, thank you for your continued support of our organization.
Ken Griffin
Posted by guest , Sep 19, 2008 11:44AM
BL,
I will buy you a new set of sheets if you'll please check in with your Quant friends. And give us a report.
Posted by guest , Sep 19, 2008 11:45AM
Buy gold. It is the one true savior in a world of inflated fiat currency. Buy gold.
Posted by guest , Sep 19, 2008 11:46AM
in before the lock
Posted by guest , Sep 19, 2008 11:48AM
So I get an email that today is John Carney's last day at Dealbreaker.
So I guess this my last day as reader.
Farewell Dealbreaker
Posted by guest , Sep 19, 2008 11:49AM
@4 later loser
Posted by TheUpwardlyMob , Sep 19, 2008 11:51AM
@4 You are about to make us cry. Whatever you do, please don't go.
Posted by guest , Sep 19, 2008 11:51AM
#4 is Carney posting anonymously
Posted by guest , Sep 19, 2008 11:51AM
Not a problem Bess.
Posted by guest , Sep 19, 2008 11:52AM
@TheUpwardlyMob-- carney should take @4 with him
Posted by guest , Sep 19, 2008 11:52AM
Thanks for the note 4, dont let the door hit you on the ass
Posted by guest , Sep 19, 2008 11:58AM
Wow good job jamming the comments section dealbreaker staff.
The time stamps betray your best efforts.
Respectfully,
Team Carney
Posted by guest , Sep 19, 2008 11:58AM
where'd u get that letter?
Posted by guest , Sep 19, 2008 12:00PM
@team carney-- it's so cute (and gay) that you think there are some people who wouldn't choose bess over jc.
Posted by guest , Sep 19, 2008 12:03PM
The SEC is imposing a ban on employees quitting their job for higher paying one. "Salary shorting" is highly dangerous to nations banking system and it result in the banks smartest employees leaving for hedge funds and subsequently using their knowledge of the bank's shitty underwriting standards as justification for shorting their banks stock at presentations to their new employer's investment committee.
All future banks employees will be paid a flat amount. Any employee perceived to be generating superior performance will enter into a bonus default swap with the Fed who's payout is inversely proportional to the default rate of the securities underwritten by the firm over their maturity.
Posted by guest , Sep 19, 2008 12:03PM
Citadel's too busy trying to figure out how not having an options market is going to impact that options value.
Posted by guest , Sep 19, 2008 12:05PM
what are the chances that Citadel will take me?
-Dick Fuld
Posted by guest , Sep 19, 2008 12:14PM
RE: 14
Good shit. Good for a chuckle.
Posted by charlemagne , Sep 19, 2008 12:15PM
in the physical oil markets MS are being demanded pre payments from counter parties world wide. hearing BP have restriction from any physical trade with MS due to credit isssues
Posted by guest , Sep 19, 2008 12:17PM
@ 14 that was hysterical. Carney, good riddance, let's get someone in here who actually edits their articles.
Bess, I will console you tonight, meet me at the Flesh Locker at 5 for happy Hour
Posted by guest , Sep 19, 2008 12:20PM
BP = Brit Petro?
Posted by guest , Sep 19, 2008 12:22PM
Here is what i am hearing about the RTC II
-RTC II - capitalized with between $600b to $800B.
-Banks are going to get about $0.20 on the buck for their toxic waste.
-RTC II is going to get an equity position in the banks it takes toxic waste from .(one of hanks favorite themes). So there will be decent dilution in some of these names.
-Accounting rule change for non liquid assets so they need not be marked to market every quarter (less transperency should really be helpful here).
-legal framework for foreclosures is going to change making it more difficult for people to walk away from their homes and incentivize banks to work with them so they can stay in their homes.
This is obviously a huge expansion of federal debt. Question is whether it is monetized or kept off balance sheet like the 2 wars .
What is everyone else hearing?
Posted by blndebnker , Sep 19, 2008 12:22PM
@14 - Very good sir/madame.
Posted by guest , Sep 19, 2008 12:23PM
who is carney? and why should i be upset that he is leaving?
Posted by guest , Sep 19, 2008 12:24PM
BP = Beyond Pathetic
Posted by ep , Sep 19, 2008 12:27PM
"Here is what i am hearing about the RTC II
-RTC II - capitalized with between $600b to $800B."
Give me a source and I will post it.
Posted by guest , Sep 19, 2008 12:33PM
If 21 is accurate, this will flop with all but the most distressed and desperate companies.
Lock in an 80% loss from face and give an equity position on top of that? Do I at least get a reach-around? There is no reason to do that deal unless you are literally dying under the weight of the things AND you can survive the markdowns.
How many of these guys have marked the things to .20? That's worse than the nominal value of MER's sale, ignoring the voodoo finance on that thing that made it worth more like .05.
Posted by guest , Sep 19, 2008 12:39PM
EP i cannot give you the source.
Hence why i said this is what i am hearing ....
On another note, really appreciate all you have written today. You are on fire!
Posted by guest , Sep 19, 2008 12:54PM
BP=Ballinist Player
Posted by guest , Sep 19, 2008 2:23PM
Hopefully, Citadel will be one of the thousand or so hedge funds presumed to be going out of business by the end of the year.
The bravado that the faggot sissy Griffin tries to convey in his clown letter does not conceal his fear. Who writes a fucking pansy-assed letter like that unless he is afraid of something.
What a wimp. He would have been better saying nothing.
The Guy from Delaware
Posted by guest , Sep 19, 2008 2:49PM
Who funds Griffin?
Posted by guest , Sep 19, 2008 3:34PM
@23. He can be found at Yahoo Finance, they want you back too.