$$$ Fed Loosens Rules for Control of Bank Holding Companies [Dealbook]
$$$ Deals: As Merrill Goes, So Goes the Week
In our M&A roundup for the period ended Sept. 21, the Bull's sale to B of A shows up, but not AIG's arrangement with the Fed. [CFO.com]
$$$ For her 50th birthday, Annette Pucci, a New York retail manager, planned to treat herself to a facelift by cashing in $15,000 in stocks. But after consulting with her husband, a manger with Consolidated Edison Inc., she realized their stock portfolio had taken such a hit that it was out of the question.
"It was a very big disappointment," Ms. Pucci said. Her consolation: a $1,200 Botox treatment she had this week instead. [WSJ]
$$$ "At least we saved Goldman."-- Ben Bernanke [NewsGroper]
$$$ Ladhe exiting at top of its game. [FT]
$$$ "Sallie Krawcheck is leaving Citigroup (C). The exit of Krawcheck, chairman and CEO of the bank's global wealth management unit, stems from disagreements with Citi CEO Vikram Pandit and a decision, made by him last week, to shrink her responsibilities inside the company.
Sources close to Krawcheck and Citi say that the tension revolves mainly around the amount of money that Citi owes clients who invested in hedge funds and auction-rate securities that turned out to be toxic investments. Krawcheck argued in favor of Citi's responsibility to pay clients back, in effect, for defective investments distributed by her brokers and bankers. Citi's multi-billion-dollar auction-rate securities settlement, announced in August, caused a rift in her relationship with Pandit, who according to one source preferred to take a tougher line with clients. The settlement requires Citi to return to individual investors, small businesses and charities all $7.5 billion of the money they lost on auction-rate securities purchased from the firm." [Fortune]
$$$ The New Goldman Sachs [Gawker]
$$$ "If you get rid of the bonus, then there's basically no point." [NYT]
Posted by guest , Sep 22, 2008 6:19PM
what are the Lehman associate numbers?
Posted by guest , Sep 22, 2008 6:20PM
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0
An interesting read.
Posted by AJ , Sep 22, 2008 6:23PM
How big is Ladhe's fund? I see the returns everywhere but no size...
Posted by guest , Sep 22, 2008 6:31PM
is lehman/barclays going to be recruiting at Penn State this year?
Posted by guest , Sep 22, 2008 6:34PM
Sallie has earned one of my special "tension relief" massages. She's a studdette.
Posted by guest , Sep 22, 2008 6:35PM
which of these big banks is considered more of a lifestyle firm? this is very important to my choice come campus recruiting.
Posted by guest , Sep 22, 2008 6:46PM
Re: MS, why would anyone want to work for a "investment bank" that isn't going to make that much money?
Posted by guest , Sep 22, 2008 7:27PM
Re: first article.
I love it.
Let's review:
1. Goldman becomes a bank holding company to take advantage of access to capital and favorable accounting, while subjecting itself to tighter regulation from the Fed.
2. The Fed loosens regulations governing bank holding companies.
God those guys are good.
Posted by guest , Sep 22, 2008 7:34PM
Saw that too #8. This is like watching an amazing poker game only our futures are in everyone's hands but our own.
Posted by guest , Sep 22, 2008 7:51PM
Reject Paulson. Save America.
http://faculty.chicagogsb.edu/luigi.zingales/Why_Paulson_is_wrong.pdf
Posted by Billy Ray Human , Sep 22, 2008 8:24PM
Thanks for posting, 10. Luigi rules.
Posted by guest , Sep 22, 2008 8:39PM
History of U.S. Gov't Bailouts - A visual representation
http://www.propublica.org/special/government-bailouts
Posted by guest , Sep 22, 2008 8:51PM
Nomura is acquiring all of Lehman's operations in Asia-Pacific.
Posted by guest , Sep 22, 2008 11:08PM
yeah,,and this crash will be forgotten in 12 monthsm,,and wall street will devise a new scheme, a new dynamic will emerge,,and people on Wall Steet will be rich again,,mark my words.
Posted by guest , Sep 22, 2008 11:57PM
Apparently the next jumbo jet should be aimed 85 Broad.
Posted by guest , Sep 23, 2008 12:00AM
"Fed Loosens Rules for Control of Bank Holding Companies" deserves its own post. This really is a big deal, and relates to what's called the source of strength doctrine that has been discussed here and elsewhere that was preventing greater flow of PE money into banks
-from FT: "The US central bank said it would raise the maximum stake a minority investor could take in a bank holding company from 25 per cent to 33 per cent in some instances and lift the ban on board representation for minority investors."
-$$$
Posted by guest , Sep 23, 2008 1:27AM
Too long, didn't read.
Posted by guest , Sep 23, 2008 1:29AM
#17, stfu. Same stupid unfunny comment over and over again. Get a new shtick.
Posted by guest , Sep 23, 2008 1:29AM
can this be true?:
"Student, car debt quietly added to bailout plan
Tuesday, September 23, 2008 1:10:48 AM · by smokingfrog · 15 replies · 191+ views
Washington Times ^ | September 23, 2008 | Patrice Hill
In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other "troubled" assets held by banks. The changes, which were included in draft language that also opened the bailout program to foreign banks with extensive loan operations in the United States, potentially added tens of billions of dollars to the cost of the program. Although it was a major addition to what was already the nation's largest-ever bailout, it did not become part of the debate between Democrats..."
http://www.freerepublic.com/tag/*/index
Posted by guest , Sep 23, 2008 1:44AM
#19. Yes, I think it is true. I read the same thing earlier today.
I don't understand why car debt could possibly be needed to be "bailed out." Car loans are completely securitized by the car. You don't pay the car loan, the car is repossessed.
As to credit cards, the banks have made it impossible to escape the debt even through bankruptcy. Really, how much heavier a millstone do they need to impose past lifetime indebtedness?
The foreign banks thing is definitely true. When people start understanding that this is part of Paulson's current position, they're going to go nuts. To Paulson, it makes sense. To ordinary citizens who don't understand why they need to shoulder the debt of the world, it's going to be extremely inflammatory. I think whatever political credit Paulson has is going to erode a little bit more at that point. Not a savvy political move.
Posted by guest , Sep 23, 2008 2:12AM
@19 yes it's true, i read it somewhere (thought I had read it on dealbreaker, i guess not)
Posted by guest , Sep 23, 2008 2:20AM
@19 Here is the article, I must have found it on Drudge. This change is coming from Paulson and the Bush administration, not Congress, by the way.
U.S. Treasury Widens Scope of Plan to Buy Bad Debt- http://www.bloomberg.com/apps/news?pid=20601087&sid=acqN7861mi6Y&refer=home
"Officials now propose buying what they term troubled assets, without specifying the type."
Posted by guest , Sep 23, 2008 2:42AM
thank you all. This is totally mind boggling and summed up best by this quote from the times "dealbook":
"Watching Wall Street double-dip makes even some in the industry’s top tier cringe.
“Maybe I should move to Russia,” one titan of finance said to me. “It’s obscene, the whole thing. I’m embarrassed for myself.”
http://www.nytimes.com/2008/09/23/business/23sorkin.html?ref=business
This is a must read.