Expecting a build of 800,000 barrels before today’s Department of Energy announcement that 6.7 million had found their way into the inventory has sent crude futures down over 8%. Good thing too, as what this economy certainly doesn’t need at the moment is expensive energy on top of all the other problems we have to cope with.
Maybe Big Auto can leverage the unusually low price of oil into something less than a 50% hammering of sales in the first quarter. (Or maybe not).
Archive for January 2009
Woe to Meaghan Cheung, the “mid-level SEC employee” in the New York office tagged as the girl who ignored the Made-off scandal, despite intense prompting by tipster Markopolos who leveled this rebuke:
Cheung, branch chief in New York, actually investigated [Markopolos' claims] but with no result that I am aware of. In my conversations with her, I did not believe that she had the derivatives or mathematical background to understand the violation
Indeed, her protestations that she is being scapegoated for “the falling economy” would have some appeal, if Markopolos’ claims that she was out of her depth didn’t seem to hit so close to the mark. But pure incompetence isn’t a crime. Is it?
Still, it would be one thing if a clever scam had simply been overlooked. But with Markopolos leading the SEC horse right to the water, urging a drink or two, and with analysis as basic as looking at the options volumes required to effectuate Made-off’s supposed strategy, it gets a bit more difficult to be moved by those tears.
All the SEC will ever be good for is halting frauds already seriously in progress or delivering punishment after the fact. When it can’t even accomplish this, what good is it?
The SEC Watchdog Who Missed Madoff [The New York Post]
So, this is pretty upsetting. Remember last month, when there was that sighting of Dick Fuld flying– I don’t even want to say it but here it comes– commercial? Apparently he wasn’t just fucking with us for personal amusement. He might actually be serious about this shit, as evidenced by a second glimpse of Dick and wife Kathy “being instructed by a man who appeared to be their driver on how to work the JetBlue self check-in kiosk at Palm Beach airport en route to La Guardia” a few days back. What’s next, huh? Declining a pillow cause he can’t come up with the 5-spot? Saying thanks but no thanks to the $3 bag of nuts? Seriously, hit me with it. I want to be mentally prepared.
At The Breakers, in Palm Beach, the ten-thousand-dollar-a-week cabanas were all booked, but a guest there said the atmosphere was grim. “It’s like everybody’s in mourning,” he said, referring both to Bernie Madoff’s victims and to the people whose stock portfolios had merely taken a dive. “It’s like a member of the family has died, and its name is Money.” A new poolside pastime had emerged, in place of canasta: calling a friend over and showing him a stack of account statements from Bernard L. Madoff Investment Securities–the now worthless things touting those steady ten- to fifteen-per-cent returns–and asking, “What did I miss?”
Family Jewels [New Yorker]
Familiarize yourselves with the less good news while we go come up with the good good. [PDF]
Bank of America Sells China Bank Stake (Reuters)
BAC scored $2.83 billion in exchange for its holding in China Construction Bank.
Main Citadel Hedge Funds Dropped Estimated 53% In ’08 (Dow Jones)
Dow Jones tells you what we did a week ago: Citadel’s Kensington and Wellington funds lost around 9 percent in the first 24 days of December. DJ is under the impression that adds up (down?) to an approximately 53 percent loss for the year, though we’re thinking it’s more like 57.5. Either way, that’s a job well done.
Madoff Tried to Stave Off Firm’s Crash Before Arrest (WSJ)
“Ten days before his arrest, Bernard Madoff received $250 million from a man who helped give him his start on Wall Street, a move that shows how the investment manager tried to raise cash to stave off his firm’s collapse.
Mr. Madoff received $250 million around Dec. 1 from Carl Shapiro, a 95-year-old Palm Beach, Fla., philanthropist and entrepreneur who is one of Mr. Madoff’s oldest friends and biggest financial backers, according to people familiar with the matter.
It isn’t clear whether the sum was a loan or an investment, though people familiar with the matter say Mr. Madoff told Mr. Shapiro that he would be paid back quickly with interest or a gain. But none of the money was repaid, according to the people. Mr. Shapiro has personally lost an estimated $400 million from the Madoff fraud, including the $250 million. His charitable foundation has lost an estimated $100 million or more.”
$$$ Introducing the Bernie Madoff Ringtone! [Cityfile]
$$$ Madoff Family Jewels [New Yorker]
$$$ Bernie Madoff Loves Bernie Madoff [Daily Intel]
Sent: Tue Jan 06 15:05:07 2009
Subject: Dan Sontag Named Head of Merrill Lynch Global Wealth Management
A message from John Thain, president of Global Banking, Securities & Wealth Management:
Dan Sontag Named Head of Merrill Lynch Global Wealth Management
Dear Colleagues:
How’d you like to be “Head Of Retail Brokerage” nowadays? Yeah, us either. But that isn’t stopping Merrill’s Dan Sontag from making the jump into the parent organization.
Bank of America Corp named Dan Sontag head of Merrill Lynch Global Wealth Management, its retail brokerage unit, according to an internal memo obtained by Reuters, filling a spot vacated by the recent departure of Bob McCann.
Way to integrate, Dan! Culture clash my ass! We know the transition from “Wealth Management,” and those upscale clients into the depths of $20 fee rebates, free calendars with every new checking account and a Toaster if you maintain a minimum balance of $2,500 for six months is going to be a snap!
Earlier: John Thain’s Farewell To Bob McCann: Did He Really Use The Word “Enrich”?
Merrill’s Sontag named head of retail brokerage [Reuters]
Bank of Amerillwide CEO Ken Lewis has apparently told the BAC board that neither he nor top execs should get bonuses for this past year. It’s unclear if former Countrywide CEO and current BoA door greeter Angelo Mozilo will be receiving a bunch of coupons to Hollywood Tans, which he’d previously been promised by Mr. Lewis several months back.
A judge on Tuesday extended an order barring well-known hedge fund founder Ezra Merkin from withdrawing or liquidating millions of dollars in his funds, which invested with accused swindler Bernard Madoff.
One has to enjoy the swath of asset freezings that have followed the Made-off scandal. When you are reduced, for example, to mailing $1 million in jewelry and other personal effects (mittens!) then you just know the sting is painful.
This, combined with the current rumor that there is something like $850 million in assets floating around for the victims of Made-off makes for wonderful third row viewing. Pass the popcorn!
N.Y.judge restrains Merkin funds in Madoff lawsuit [The Guardian]
