As previously mentioned, in tough times like these, not in lieu of but perhaps in conjuntion with professional counseling, we invite you to lay down on the Dealbreaker couch and let it all out. If anyone else has a grievance they’d like to work through and/or more widely disseminate, send it our way. From the mailbag:
Much like BofA, the legacy Barclays folks got screwed this bonus season. Barcap bonus numbers were ~50% of what the Lehman people got, with 50% of that lower number deferred over the next two years, making the Barcap folks all feel like second class citizens.
Now what you may not be aware of, is that Barcap also switched over to the Lehman analyst system (3 years and you’re out if you don’t get an associate offer). By some magical coincidence (AKA 10-person analyst promotion board composed 80% ex-Lehmanites), hardly any of the third year Barcap analysts got promotion offers. They are being told that if they did not get a promotion offer, they will be done in June and will not be receiving any of the deferred portion of their comp. I don’t know why you would put a number down on paper, just to slide it across a table to tell the person that this is what they will NOT be receiving, but that’s exactly what they did.
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First off, when Ken Lewis tells me something, I believe him. So this is most likely the work of some disgruntled employees (Ang Moz), but nevertheless: “Bank of America and Citigroup won’t live to see May. The government will take them over within the next 60 days. The announcement may come as soon as tomorrow evening.” Do we buy this, in part or whole? We feel like traitors to the brand for even thinking such thoughts but we need to determine what’s what, democratically:
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The Bank of Amerillwide CEO had had it up to here (points to Angelo Mozilo’s forehead) with this nationalization talk, so you know what he did about it? He got “policy officials” in Washington on the horn and they assured him it is categorically not gonna happen (they’re just going to let BAC fail– kidding!). Of course, the worthless wonks won’t get out there and spread the good news to the masses, so we’re gonna need your help to widely disseminate the message. Fire up your e-mail blasts, stuff your carrier pigeons, and let’s get this thing done.
Mr. Lewis addressed the nationalization speculation during a senior leadership meeting Thursday at the bank’s headquarters, according to a person there. Policy officials in Washington have assured Mr. Lewis that such an option isn’t on the table, the CEO said. He also said he has urged the government to say this publicly.
No word on plans or Citi, or leaks of Vikram addressing the matter with first year analysts at Trivia Night on Wednesday, so we assume they’ve resigned themselves to the idea.
$$$ Cheer up: cocaine prices are falling [Cityfile]
$$$ Goldman Sachs Exec’s Retirement Seen Tied To Succession [DJ via Clusterstock]
$$$ Coping When a Close Co-Worker Is Laid Off [WSJ]
$$$ Wilbur Ross: Obama Foreclosure Fix Not Enough [Housing Wire]
The situation is fluidicy.
In the US, by FBI agent, according to NBC, though that’s all they’re willing to tell us at this time.
Update: He was served with “a number of papers” in Virginia, though he was not arrested (and is now running free??).
Late last June, Countrywide CEO Angelo Mozilo told CFC shareholders that Bank of America “will reap the benefits of what we have sowed.” And though we were deeply interested seeing how what has got to be the greatest veiled threat EVER would play out, another, possibly more disastrous BAC integration gripped our attention. Today we decided to circle back and see what’s been a poppin’ re: Bank of Countrywide, and we are delighted to inform you that things are going just great. Here’s what Barbara Desoer, the Bank of America executive “in charge of cleaning up and integrating Countrywide” said in an interview with the Charlotte Observer:
Q. Your chief executive (Ken Lewis) recently said that Countrywide is “on fire, in a positive sense.” Can you tell us more about what that means?
We’re seeing the lowest rates that we’ve had in a long, long time, so we’re the beneficiary of that, with a tremendous amount of volume in both refinancing and purchasing. The capacity that Countrywide brought is enabling us to take advantage of it, so this is reinforcement of “Thank goodness we did the transaction.”
Traditionally, fourth quarter takes a meaningful dip in volume, but we’ve really seen a lot of activity from Nov. 25 forward. That’s when the Fed committed to buy up to $500 billion in mortgage-backed securities, in an attempt to bring rates lower. And psychologically, for the consumer, being able to get a rate below 5 percent – that’s where the markets are hottest.
Both brands are being very aggressive in marketing. We’re paying overtime, extending hours, hiring contractors, hiring full-time employees, taking them from parts of our business that are slower and bringing them into first mortgage.
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Yeah, it looks kinda bad that Misha Malyshev, the Citadel trader who was instrumental in two of the firm’s funds gaining 40 percent last year, as opposed to losing nearly 50, has up and peaced, and taken two members of his team with him, but that’s because you’re thinking about it in the completely wrong way. This isn’t a sign of sinking, this is a sign of soaring, and an opportunity for KG to roll up his sleeves and get back into the scrum of things, like he was planning on doing anyway (answering phones, makin’ calls, just getting dirty in general, like the old days). As for where traitor-boy is headed, that’s unclear, though, like they always say, follow the cookie crumbs. (Or just shoot us a line and say definitively.)
Because we’re already dead inside. But no, seriously, while it is deeply upsetting that former Countrywide CEO and current Bank of America window-washer Angelo Mozilo will no longer be able to log-on to this here site from the comfort of your desktop, as Dealbreaker was blocked at BAC as of 2:30PM today, a mobile version of DB is being rolled out shortly, and we had the foresight to buy the lil’ fella an iPhone for his birthday. That’s all, and good luck with your firings.
PS: If this was an “accident,” like asking the Bank of Amerillwiders who landed in the Hudson to hand over the reimbursed money from US Airways, let us know and it’s all good.
Can it be? Could they pull it out of the fire?
Fortress blocked redemptions from its flagship Drawbridge Global Macro Fund in December, telling investors at the time that they would get 72% of their requested withdrawals by April. But on Jan. 22, the New York firm moved up the timetable, promising investors they would get the 72% back this month, subject to a 10% hold-back pending a final audit. The remaining 28% of assets that the investors sought to redeem — representing illiquid investments — has been put into a side pocket to be paid out over 18 months.
Fortress, Tudor and Threadneedle Permit Redemptions Again [Hedge Fund Alert via Zerohedge]
You waited. You hoped. You prayed. You bribed. You begged. Now, it has all paid off. You can revel in the details. You can embrace the hypocrisy. You can share in the reflected glory of abject corruption. (Pending appeal).
A Manhattan judge has ordered the government to make public sealed documents about wiretaps in the Eliot Spitzer scandal.
U.S. District Judge Jed S. Rakoff ordered prosecutors Thursday to release documents detailing calls on cell phones used by a prostitution ring whose clients included the former governor. The documents were not immediately released; prosecutors will have a chance to appeal.
Judge orders release of Spitzer wiretap documents [Associated Press]
