Credit Suisse Investors May Have Lost ~$1B With Madoff (Reuters)
So, Credit Suisse didn't actually invest with Madoff, and the Hedge Funds they use/sell didn't invest in Madoff, but their client base did. Is it possible the Credit giant knew better than to invest with Madoff, and if they did know better, what did they know?
Bernie Madoff A Ripoff 'Victim' (NYP)
Finally, this is getting interesting. According to a Palm Beach police report, a 5 foot copper statute of two lifeguards, valued at $10,000, was stolen out of Bernie Madoff's backyard in Florida last week. No word on suspects, though you can probably take a crack at it (we're leaning toward it being an inside job perpetrated to drum up sympathy).
The five-foot, copper artwork overlooked the Madoffs' inground pool, and portrays two young lifeguards sitting on a raised stand.
PE Firms Close To IndyMac Deal (NYT)
J.C. Flowers, Dune Capital Management, and Paulson & Company are teaming with the FDIC and some ex Lehman Brothers bankers to put together the deal, though specifics aren't known. IndyMac, you'll remember, was one of the first "Too Big To Fail" banks that went on to fail, joined eventually by Wachovia and Washington Mutual. How? Oh, I'm glad you asked:
"The seizure came after panicked customers withdrew more than $1.3 billion of deposits over 11 business days. The withdrawals came after comments in late June by Senator Charles E. Schumer, Democrat of New York, questioning IndyMac's health."
NY Back On Top Of IPO Gambit (FT)
For the first time since 2005, NY is kicking China's ass in something: with $25.4B in IPOs in 2008, we've dethroned China ($22B). Granted, $19.8B of that was Visa.
Japanese Insurers Look to Merge (Reuters)
"Shares of Mitsui Sumitomo Insurance Group Holdings Inc, Aioi Insurance Co and Nissay Dowa General Insurance Co surged on Monday on hopes that a merger would increase profits and reduce competition.
The three aim to reach a basic agreement by March 2009, a company source said, which would produce the country's largest non-life insurer."
Unions Look To Pick Up Perks Under Obama (NYT)
The recent hand down from Congress to the auto workers had some interesting caveats built in, included among them the haircut for labor. It didn't take long for the UAW to tell the world they'll be looking for better terms under the Obama administration, suggesting to me that they believe they've effectively bought their survival via election donations.
Latins Quiet About Madoff Losses (WSJ)
In a profile of Mr. Piedrahita last week, Poder, a Colombian business magazine, said that local investors may have lost as much as $200 million to Mr. Madoff's apparent scam through the Fairfield Sentry fund, which had been promoted by Mr. Piedrahita in Colombia for the past 15 years."A lot of wealthy Colombians got burnt," said one leading Bogota businessman. But to date, no Colombian investor has acknowledged losing money in the Madoff affair. Colombia has a history of kidnappings and businessmen are generally wary of talking about their wealth in the media.
Related? You tell us.
GMAC Isn't Saying (WSJ)
No word from GMAC on whether or not the $38B debt restructuring had been backed. The deal would have them (GMAC) swapping $38B of debt for new debt (less) and preferred shares/cash.
--William Richards
*Programming Note (in case you missed it): We're on an abbreviated vacation-esque schedule 'til '09 (opening/closing wraps and very limited updates whenever the urge to reach out and touch you moves us). We still want to hear from you, though, so if Bernie Madoff slips in the shower and you've got pics, do not hesitate to let us know.
Posted by guest , Dec 29, 2008 8:17AM
right, because the UAW thinks it can get better terms under the Obama administration, that must mean that "they've effectively bought their survival via election donations."
Posted by guest , Dec 29, 2008 8:19AM
"suggesting to many (including me) that they believe they've effectively bought their survival via election donations"
Right. Like if Obama cuts them off, they'll start donating to Palin '12. Please. Unions will donate and vote Democrat. Obama - do yourself and well-managed companies a favor. Don't listen to Gettelfinger.
Posted by guest , Dec 29, 2008 8:25AM
@2- you idiot. he meant that they believe they're owed something more by obama due to their support of him during the election, not that they're deflecting to democrat.
Posted by guest , Dec 29, 2008 8:28AM
@3. Try re-reading for meaning. The unions believe they've "bought" their survival by donating. That the Democrats would "owe" the unions one, because they need the unions' help in the long run. They don't. The unions vote Democrat, period. You can take their donations, not back the bailout, and STILL they will vote Democrat.
And that would be "defecting", not "deflecting", to Republicans, not to the the Democrats (as they are, obviously, already Democrats).
Thanks for playing.
Posted by guest , Dec 29, 2008 8:37AM
anything more painful than listening to Gettelfinger speak? take a public speaking class, guy.
Posted by guest , Dec 29, 2008 8:44AM
Re: FGG taking Colombian money, and Piedrahita actively raising it.
This is their best defense - because unless they 100% trusted Bernie, did their homework on him, etc. - why would they put in Colombian laundered money whose owners would be extremely ticked off (to say the least) if anything happened to it?
Works better than "shocked and appalled". Plus, wait until the Colombians find out (if they don't already know) that only $60 mil of the hundreds of millions (if not billions) of FGG partners' money was with Madoff.
Posted by guest , Dec 29, 2008 8:52AM
...and what's worse about taking "dangerous" money is that Piedrahita has 4 kids. Crap, was that few hundred mil you brought in worth it in the risk you were taking?
I worked at a firm that would have taken money from Beelzebub and even we wouldn't take Colombian (or any drug, not singling out Colombia) money that was not certified 100% clean and already domiciled in the U.S. We even refused capital contributions to an existing account if our legal guys couldn't vouch for it.
One of our existing accounts wanted to "split" into two - the parent wanted the account split between his two children. We refused because one of the sons came up on an AML thing years ago. It had been resolved, but still we wouldn't let the account split, and the client was so p.o.'d that they left.
That Piedrahita took - and actively SOUGHT - this money, tells you how much marketing and bringing in assets was the #1 item of business at FGG, due diligence (not only of Madoff, but of where the money came from) was a distant #2.
Posted by guest , Dec 29, 2008 8:57AM
I don't think anyone thinks that FGG didn't "100% trust" Bernie, it's just that they did 0% of the DD that they said they would. Not really any defense for that.
Posted by guest , Dec 29, 2008 9:03AM
I love the smell of Columbian neck tie in the morning.
Posted by guest , Dec 29, 2008 9:08AM
Helo, Piedrahita - meet my little friend!
Posted by guest , Dec 29, 2008 9:09AM
Don't unions donate to both parties? They give the max, then whatever side wins "owes" them something. That's my understanding at least.
Posted by guest , Dec 29, 2008 9:16AM
"Donations" do - na - tion [doh-ney-shuhn]
In the political sphere also known as a legalised bribe.
Posted by guest , Dec 29, 2008 9:43AM
RBS Sempra - no heads are rolling. In fact certain senior traders are being another round of retention bonuses for 2009 ( 3- 8 mln/yr cash no claw back for losing money, which some of them do quite handily). They are already collecting 3-7 mln for 2008 retention (CASH) in addition to 4-8 mln (CASH) in guaranteed bonus money for 2008, despite losing money. This is comical cause where exactly does management think these old men are going. It's nice the UK taxpayers are footing the bill
Posted by NotNasser , Dec 29, 2008 10:02AM
"The five-foot, copper artwork overlooked the Madoffs' inground pool, and portrays two young lifeguards sitting on a raised stand."
So a man now famous for make-believe accounting and a make-believe split strike options strategy had two make-believe lifeguards overlooking his pool? Was there at least real water inside the pool or did he just paint the bottom of it aquamarine to give that impression?
Posted by guest , Dec 29, 2008 10:11AM
Need more posts...getting bored at work.
Posted by guest , Dec 29, 2008 10:13AM
# 14. good point. The statute of the lifeguards was there to give visitors a total sense of security. Madoff played the same game in everything he did. It was just the man's style.
Posted by Anal_yst , Dec 29, 2008 10:19AM
@ 13
WTF/where the f did that come from?
Posted by guest , Dec 29, 2008 10:21AM
@13/@17
I was wondering the same thing?
-phobos.
Posted by guest , Dec 29, 2008 10:39AM
"suggesting to many (including me) that they believe they've effectively bought their survival via election donations"
How dare they, trying to organize and exert influence to win wages and jobs! It's practically communism, I tells ya.
Posted by guest , Dec 29, 2008 10:46AM
@19. Give it a rest. They haven't designed cars people want to buy. You keep hearing "we're doing better", but producing C+ cars (up from F! We're really doing better!) when Japan is producing B+/A- cars for the same (if not lower) price is like jumping up and down at a singles bar and saying you only have a herpes outbreak every 6 months now that you're on Valtrex.
Posted by guest , Dec 29, 2008 10:53AM
@20
thank you. this is why i keep coming back. you just don't get valtrex/herpes analogies anywhere else.
Posted by guest , Dec 29, 2008 10:54AM
@19 I think part of the point is that they're being so damn blatant about it, they're not even trying to hide the fact that they think they can get away with /whatever/ under the President Elect.
Posted by guest , Dec 29, 2008 10:55AM
I'm rather disturbed by the people that buy cars from the big 3. It's like admiting that you'll back the losing horse despite having 100% information to the contrary. Maybe theses tax payers _should_ be paying towards supporting these crappy manufacturers.
Oh yeah, and those moron that live in the UK but still go ahead and buy gigantic american SUV's I hope your bottoms drop off.
Posted by guest , Dec 29, 2008 10:58AM
Too long; didn't read.
Posted by guest , Dec 29, 2008 11:04AM
Madoff protected his pool with lifeguard statues made of copper.
Posted by guest , Dec 29, 2008 11:09AM
@23, how about if you live in Wee Britain?
Posted by e_anthony58 , Dec 29, 2008 11:13AM
UH OH! There's a live feed of Madeoff's APT on CNBC. What did he screw over now?
Posted by guest , Dec 29, 2008 11:13AM
@20 Japanese cars may be all that you say, but most of them look like shit on wheels. The Japanese and Asian car market has probably produced the largest collection of ugly, lumpen, misshapen nasty looking shitboxes in living history.
Posted by guest , Dec 29, 2008 11:17AM
@28
Are you a commedian or a UAW official? Look around your own house before throwing stones.
Posted by guest , Dec 29, 2008 11:20AM
@26
I gave it a try but Tony and Cronies made the experience quite unpalatable - not that GW and his mob were any better ...
The crap always crosses the pond - in both directions.
Posted by guest , Dec 29, 2008 11:23AM
@28: 20 here. I've got 2 Japanese cars right now, and they're a whole lot better-looking than their American counterparts. What do you consider a "good-looking" car?
Toyota produces a basic sedan (it's basic, it's not scaling any design heights, but it's fine) we've been fine with, a minivan we love (and I refused to buy one at first, but it is just ideal and its interior thoughtfully designed).
I rented from Enterprise last month and got a Buick something-or-other. Maybe it was a Pontiac something-or-other. It was not only ugly, it drove with all the finesse of a WWII troop carrier driving on wet sand. Its dashboard rattled, and the pictures that were supposed to tell you fan/AC/heat were so small as to be indecipherable.
Seriously, I am not flaming here - rent an American sedan. You will be appalled. It's like they don't even care.
Posted by guest , Dec 29, 2008 11:27AM
@28 - having a flare up? I suggest Valtrex.
Posted by guest , Dec 29, 2008 11:33AM
OK it was Chevy Impala I rented.
http://www.enterprise.com/car_rental/deeplinkmap.do?bid=018&cartype=FCAR&cnty=US&language=en
And it retails for $25,000. It was a real piece of junk. You can get a Camry for $21,000. And the Camry is higher-rated in safety and quality. 20% less for a better car.
Posted by guest , Dec 29, 2008 11:33AM
@29 1.I've looked, and I don't own a shitbox. 2. It's spelled c o m e d i a n.
@ 31 I didn't say all American cars were great, I said most Asian cars looked like shit, but I guess it depends on what you consider ugly. The car you rented was probably us ugly as sin, because marketing now decrees that people want crappy looking cars. I'm talking aesthetics here, not what the A/C does or doesn't do.
Posted by guest , Dec 29, 2008 11:54AM
27 - A lot of Colombian and Brazilian people that are not ones with whom to fuck.
The Horse Sisters should consider name changes, plastic surgury and moving quietly to Berlin.
Posted by guest , Dec 29, 2008 12:15PM
Those are some nasty looking chicks.
Posted by guest , Dec 29, 2008 12:21PM
No fan of Detroit here but we need to give credit where credit is due. Ford - under Mullaly - has worked hard to put its act together and the Fusion is a sweet car. Similarly, cheap plastic panels notwithstanding, the 300 is one hell of a gangsta car.
GM unfortunately produces nothing but pure crap. This bailout was also all about them. Too bad they wont die.
Posted by guest , Dec 29, 2008 12:22PM
@34
what american automobile would you describe as aesthetically pleasing?
just curious. i'm a german fan myself.
Posted by guest , Dec 29, 2008 12:57PM
@38
The Aztek, of course.
Posted by guest , Dec 29, 2008 1:41PM
Another great example of how f'd up GM is: they have a commercial that compares the fuel economy of the Escalade hybrid to that of a Mini convertible. Then they cut to a a great deal on non-hybrid Escalade. Makes me want to go out and buy!
Posted by guest , Dec 29, 2008 4:23PM
@38 A 1966 Fleetwood Brougham?
Most cars have looked like shit since the 1977 oil crisis, with few exceptions, I'd rather drive a Ferrari if you want to know.
Posted by guest , Dec 30, 2008 1:38PM
@ "wealthy Colombians"
I love the smell of Scarface-style hit squads in the morning.