$$$ Talking Shop With a Vulture Investor [Daily Intel]
$$$ Criminal Complaint HAS Been Issued For Sir Allen [Clusterstock]
$$$ “A former Chicago nightclub owner whose investment firm, Tsunami Capital, was sued by the federal government amid fraud allegations, has been indicted for allegedly running a Ponzi scheme, authorities said today.” [CBN]
$$$ “Oppenheimer: Dropping Coverage
Summary: We are dropping coverage of the U.S. banks and brokers sector, owing to a
reorganization of analyst coverage.
* The decision is unrelated to any awareness on our part of any material change in the fundamental condition of the firms. Rather, it stems from a reorganization of our financial services coverage.
PERFORM
American Express(AXP $12.57)
Bank of America(BAC $5.32)
Capital One Financial Corporation(COF $12.98)
Charles Schwab(SCHW $12.92)
Goldman Sachs Group, Inc.(GS $92.15)
JP Morgan Chase & Company(JPM $23.05)
Morgan Stanley(MS $21.33)
UNDERPERFORM
Citigroup Inc.(C $2.46)
UBS AG(UBS $9.64)
Wells Fargo & Company(WFC $14.40)
”
Subject: Westridge Message from President Cohon
Dear Faculty, Students and Staff:
If you have been following media reports, you may have read that the University filed a lawsuit recently in connection with our investment in a fund operated by a group of individuals and companies known as Westridge. You also may have read that yesterday two individuals from this group were arrested and charged with fraud in connection with the operation of these investment funds. I am writing to provide you with some basic facts about Carnegie Mellon’s investment, and to inform you about the steps we have been taking, and will continue to take, to preserve and recover our investment.
This particular investment was made from the University’s Long Term Pool (LTP). As a reminder, our LTP consists mostly of endowment assets, but also includes certain working capital and capital reserves of the University. As of December 31, 2008, the LTP assets were valued at approximately $933 million.
The investment assets in the LTP are diversified across various global asset classes, including certain “traditional” assets (e.g., U.S. and non-U.S. public equities; fixed income investments) and certain alternative assets (e.g., private equity funds; hedge funds; real estate funds) pursuant to an asset allocation set by the Investment Committee of the University’s Board of Trustees. The individual investments in the LTP are managed by a large number of external investment managers.
In late 2007, one of Carnegie Mellon’s LTP investment consultants recommended several U.S. equity managers and highly recommended an investment in a fund offered by Westridge. The Westridge fund was represented to be a low-risk, enhanced indexing strategy that closely tracked the S&P 500 index. Carnegie Mellon made two separate investments in this strategy in April and May, 2008. As of January 31, 2008, the reported balance of our investment in the Westridge fund was approximately $49 million.
On Friday, February 13, 2009, we learned from the National Futures Association (NFA) that it had suspended the memberships of two individuals associated with Westridge because of their failure to cooperate with an NFA audit. Those individuals are Paul Greenwood and Stephen Walsh, who owned interests in Westridge and operated the fund.
After learning of this action by the NFA, the University took swift action to protect its investment. We reached out to the NFA, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to obtain as much information as possible about the status of our investment, and we have cooperated fully with those agencies in their investigative efforts.
Also on February 13, we immediately requested a full redemption of all funds that the University had invested with Westridge.
On February 20, Carnegie Mellon, along with the University of Pittsburgh (another investor in Westridge), filed a lawsuit in the United States District Court for the Western District of Pennsylvania, seeking among other things, injunctive relief to prevent dissipation of assets. The Western District Court issued a Temporary Restraining Order that same night, freezing relevant assets.
Yesterday, there were significant developments relating to this matter, many of which have been reported in the media. Greenwood and Walsh were arrested by federal authorities and a criminal complaint was filed against them in the United States District Court for the Southern District of New York. Separately, the CFTC and the SEC each filed lawsuits against Greenwood, Walsh, certain corporate entities and other individuals in the United States District Court for the Southern District of New York.
In connection with the SEC and CFTC lawsuits, the Court issued temporary restraining orders late yesterday, freezing the various defendants’ assets and accounts, and appointing a temporary receiver.
While we do not yet possess sufficient information to estimate with confidence the likely timing or extent of our potential recovery of our investment, I assure you that we will continue to pursue this matter aggressively.
At this time, it is not possible to identify the amount of our losses due to this apparent fraud. Indeed, this is likely to take some time, as the legal and regulatory actions are pursued. Whatever the loss, we do not expect that it will have an immediate impact on the University’s operating budget. It is more likely that the impact, if any, will be felt in future years.
I will continue to closely monitor this matter and will keep our campus community apprised.
Jared L. Cohon
oppenheimer leaving on a high note
The CIO is singing. Not sure about “Sir” Allen yet. I doubt he’s been arrested.
Does anyone here on DB besides TGFD think Gary Crittenden is a doucheclown?
BTW, Greenwood & Walsh might want to try a few of those B-12 injections. The shots are supposed to “improve immunity”, aren’t they?
The Guy from Delaware
COF is a POS
“Perform” my candy ass, wtf does that mean, seriously?
Bess…
TGFD didn’t see any mention today of the $400mil loss at Blackstone? After all, the Masters at BX had the nearly-uncanny ability to lose $300mil more than expected.
The Guy from Delaware
Yeah, but BX was up 25% today
TGFD can GTFO
@#7…
You’re right, and I don’t know why. Can you explain it?
I guess we’ll see what happens Monday. BTW, BX has lost 1/4 of that 25% gain in after-hours.
The Guy from Delaware
ponzi is the new insider trading
@Anal_yst- “perform” is another way of saying, “significantly reduced legal exposure for the firm. Now bow down before your P&L God you fucking proles.” Just ask Meeker, the Internet queen. Why give a truthful rating that will jeopardize future business and revenue when you can throw shit and dance the subterfuge trot from behind the legal curtain. All while banking 30 million.
I love you Meeker. I hear Hell is getting crowded these days. Don’t worry about the R.S.V.P., its been taken care of. Only the finest seats are reserved for sloth, gluttony, and greed.
SPODE
what does SPODE stand for?
the acronym, that is
UNDERPERFORM
Greenlight
January 0.6%
February (1.6%)
“Go go gold”
http://www.greenlightre.ky/?q=node/77
T2 Partners
“We love whatever Grant’s and Barrons publishes”
MARKET PERFORM
Equity Private’s PA
Third Point
“We don’t waste time talking to the papers”
January 2% (fin+cons shorts)
OUTPERFORM
Hedge fund A
January 16%
February 1%
Hedge fund B
January 4%
Ray Dalio
+ve inflows
my ex told me she bought a condo in norcal for 56k today- she figured she got it at bargain basement prices. if that’s not a sign vulture investing has a long way to go before a turnaround, i don’t know what it
She must have meant “condor” because the only thing going for 56k in norcal these days is my cousin’s Airstream parked in his mom’s driveway (but you’d like Aunt Betty)
@ 15 -
But she got such a cute little place in Oaktown next to Bub Rub!
total craspshow
DB and GS fighting to buy Citi’s IBD and ST?
“Its like a WOOOOOOOOO WOOOOOOO….sound like an alarm clock, homey….”
DOES ANYONE DISAGREE WITH THE “VULTURE INVESTOR”????
to quote from Repo Man: “When the shit goes down, I’ll be heading north at a hundred and forty per….”
Bring back valuestocktips guy!
@13: Couldn’t agree more re T2 Partners. He’s so plain vanilla he makes the Darien moms look like Beyonce.
“Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.
He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.”
http://www.cnbc.com/id/29434104
56k condo!
How time change!
that’s already the price of new boobs augmentation!
that’s 30 years supply of Cialis/Viagra or 3x penile prostesis!
I hate those spam in my mailbox!
The term “depresion” is gaining greater prominence in the media and other quarters… Folks are not even waiting for an 8.5% unemployment rate to begin the “depression” chatter… Witness Barron’s articles and Tony James’ comments… Self-fulfilling prophecies…
@23
Boo-hoo!
@26: I feel you! Fools be trippin’ on this ‘free market’ bullshit. Hope and Change stomped their ass, and they think we’re going back? Shit.
#26, In many parts of this country 250 Grand only allows ot pay your rent and your car bills and you have a little left over. Soon it will be everyone who is taxed, not just the “rich” Wonder how he is going to exempt the congress and “friends” from the taxes?
Where is Meredith Whitney? She hasn’t been heard from on this Citi business at all lately, you would think she would be out there with a great big “I told you so”. Is it possible that when Cramer predicted what she would say on his show that that scared her away?
“Minuteman” Reject @23: That is because the bad guys in those fields did more damage to us than Al-Qaeda could ever hope to achieve.
I’d rather fight economic terrorists here than over there. You are either with America or against it. That’s what the last President said. So get on our team or leave.
@28
High earners keep mocking people who can only make $30 thousand a year to spend less and tough it out. But at $250 grand or more a year they have a lot more choices on how to make ends meet.
Tough it out!
Boo-hoo again!
30 n 31: Yo damn right. We’re gonna do to America what our brothers in South America did to Cuba and Venezuela and Nicaragua – liberate the real people!
@32
Here:
http://www.freerepublic.com/focus/f-news/2196311/posts
They also discuss the market. But you probably came from there.
33 – Fool, numbers? What, don’t you know we get them banks now… Droppin Hope and Change. Peace and Love.
32
It’s Official: Everything’s Fucked.
http://www.msnbc.msn.com/id/29441863
“Berkshire’s results were battered by $4.61 billion of pretax losses on about 251 derivative contracts largely tied to the longer-term performance of four stock market indexes and the credit quality of higher-risk “junk” bonds.”
Dude! Wait, what… derivatives? I thought this country pumpkin had nothing to do with those instruments of destruction. Cherry Coke, See’s Candy, Underwear, and derivatives. One of these kids is doing their own thing and now it’s time to play our game.
http://www.youtube.com/watch?v=TFYMijdQ_sA
SPODE
@14
probably in the east bay or central valley for all i know. doesn’t sound coastal
#31, your wrong. In this country people spend every penny they make, few save. Some people making thirty grand are in better shape than people making a million. But, my point is that ‘IN SOME CITIES IN AMERICA A TWO EARNER COUPLE MAKING $250 GRAND IS MIDDLE CLASS, MIDDLE CLASS. yOU ARE SO BLINDED BY YOUR MESSIAH’S CLASS BATING THAT YOU CAN’T SEE IT.
http://www.reuters.com/finance/stocks/insiderTrading?symbol=C.N
Notice how these fat cats at Citigroup are selling their shares….
I think we should just nationalize the bank and fire these fat cat execs.
Also, even though the price is under $2 dollars, none of the execs are buying.
anybody think that BAC will touch 5 dollars again this week or are they fucked for a while?
@39- And why would they buy stock at the current price? They are insiders with restricted stock, not Yahoo idiots who spend their day blaming their stupid investment decision on “the shorts.”
I suspect 38 and 39 are from Yahoo. You to 40? If and when the stock hits $00.50 make sure you go balls deep. And just tell yourself, “when it comes back to $50.00 I will make a killing.”
Roswell crash, 1940′s, New Mexico… well… I can’t go into too much detail but lets just say “the shorts have been among us for nearly seventy years” and your only protection is a tin-foil helmet and adult diapers. Good luck men.
Tangerine Man
@37: Where did you pull that number ($250k = middle class) from? Your a$$? According to the latest report from Center for an Urban Future, $123k is middle class in Manhattan, SF $95k, Nassau County $83k, and lower yet in other cities. What is it with working in finance that gives people like you a warped sense of reality?
42 Why not then start this thing at 123k and above then – if that is middle class? I say spread your cheeks, and spread the wealth mofo’s your time is up!
42: Work them numbers dawg… But don’t snitch about the middle class numbers in Mississippi or West Virginia – shit, them brothers are broke and we look rich compared to them – I hope the middle class ain’t defined as Mississippi… But who cares about numbers now? We got the big 0!
We got Hope, we give the suckas Change!
98.1% of US households have income of less than $250 thousand. Source: Census 2006
So the suffering and oppressed remaining 1.9% are the subject of a good laugh by the majority of Americans. Finally.
45: Dig it!
But let me ask you – how come you so smart? And where did you get a copy of this “Census 2006″ thing? How much do you make to afford that thing? You rich and all? Careful, I’m only borrowing this computer… I may not be smart, but I know from the tv you gonna help pay my mortgage, too. And don’t nobody tell me I’m wrong. I voted and I am entitled to my piece of Hope and Change so you best get in line behind me! Peace.
@46
http://pubdb3.census.gov/macro/032007/hhinc/new06_000.htm
Don’t know about the rest of you, but I’m ready to kill any greedy bastard making more than 250k – and that goes for people who wear glasses too.
SPODE is a vp at… stay tuned
ALL:
Just ignore @46 & @48, it *will* go away if you don’t pay it any attention.
a$$hole @48 don’t bother responding because I won’t be responding to you.
Thanks for playing, CUNT
50
it’s all love… i don’t see hate, i see hope and change! The four year party is just getting started… 46
@51
your sarcasm sucks/is not funny. you suck at the internet.
So, the typical $ 200k Wall Street base salary is nothing to complain about anywhere else but in New York City that works out to maybe about $ 118k after taxes? Subtract another $ 17 for the 401(k), $ 60k for rent (nothin’ fancy), $ 30k a pop per kiddo for private school to prevent dummitis (because 100 years of Dem rule has made public schools in NYC a joke) and that’s not leaving much to live on — assuming you got screwed, chewed and barbecued on a bonus this year, as many did.
Don’t forget each of your five doormen will be expecting $ 200. from your dumb gringo ass at Christmas, and that it costs $ 350-600. per month just to park your car.
While a family of four could live an equivalent “lifestyle” on $ 80 k. per year in nearly every other place in America (small house or rental apt. w/ kids in decent public schools) in NYC you’ll be lucky to break even.
Now they’re telling the man with three dependents who works 70+ hours a week, who probably slugged through a min. of 7 years at Ivy League schools, who has zero job security and already gives up nearly half his paycheck to the Gubmint that he needs to bail out all the idiots and spread da welf?!@!
Mrs. R. Santelli
@53
Thought you lived in Chicago, you stupid twat?
@53 – unfortunately they will never get it so I wouldn’t lower yourself trying to explain it. Those people worry more about begging for a piece of someone else’s pie than trying to grow their own.
Pleasant camera I might appreciate to have an individual.