Archive for April 2009

R. Allen Stanford gave himself up to prove he hasn’t given up.
Stanford and lawyer Dick DeGuerin marched the few downtown blocks from DeGuerin’s office to the federal courthouse today to “surrender” Stanford to federal authorities even though there was no warrant for his arrest and he hasn’t been charged with any crimes.
“We want to surrender him into custody,” DeGuerin told the woman behind the glass at the U.S. Marshal’s office on the10th floor. Stanford stood nearby, his company insignia eagle pin on his lapel.
[…]
Because there was no warrant for Stanford, the marshal’s office did not take him into custody and didn’t even write down his address as DeGuerin offered.

Stanford ‘surrenders’ to feds who didn’t want him [Houston Chronicle]
Earlier: Sir Stanford: “You’re F’ing Right I’m Gonna Fight”

What would make this all worth it is if we found out that when Citi and Bank of America submitted their rebuttals to the suggestion they need to raise more capital, they purposely told the government things are so much worse than anyone knows and sharing that information with the public would be deadly. The results should be put in the lock box and never let out (if none is on hand, Geithner must eat the documents). Don’t think they have the pair or the brains for such a conniving scheme, unfortunately, but if you’re reading boys, that was a free one.

The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.
Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.
“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers Association in Washington. “If they don’t let him go gently there will be a lot of mauling going on.”

Alternative theory: Bernanke, Geithner, etc were starting to get the strange feeling everyone thinks these “tests” are meaningless, and decided something had to be done to up the drama factor. To that end, tomorrow a video of T. Geith opening up the file on, I don’t know, Goldman, and shitting his pants will be “leaked” onto YouTube, by user BigSwinginFedChair. Maybe then you people will start to take this thing seriously.
U.S. Stress Test Results Delayed as Early Conclusions Debated [Bloomgberg]

  • 30 Apr 2009 at 6:11 PM

Write-Offs: 04.30.09

$$$ Mean Street: Chrysler — Our Long Nightmare Has Begun [Deal Journal]
$$$ D Bank defends chairman over Ackermann [FT]
$$$ Portfolio drinks away the pain [Daily Intel]

  • 30 Apr 2009 at 4:46 PM

On Again Off Again

With all the talk of buying American lately, and with Obama taking the opportunity with the cameras to give Chrysler a bit of free endorsement work (Chrysler, we hope you file that on your taxes)…

So these are some of the steps that we’re taking to make it easier for Americans to buy a car. If you are considering buying a car, I hope it will be an American car. I want to remind you that if you decide to buy a Chrysler, your warrantee will be safe — because it is backed by the United States government. And to further boost demand for autos, we are working to accelerate the purchase of a federal fleet, and we’re also working with Congress on fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars.

…we thought we would revisit the Administration’s driving habits.
Of course, one fact missing from our old exploration on the topic was that Obama traded in his Chrysler 300C for a Ford Escape Hybrid in 2007 after putting a mere 20,000 miles on the Chrysler. Odd, Chrysler wasn’t good enough to hang on to back then. What’s changed?
Who drives what, after the jump.

Read more »

  • 30 Apr 2009 at 4:35 PM

WSJ: Citadel To Try I-Banking On For Size

siren.gifsiren.gifsiren.gifsiren.gifsiren.gifsiren.gifsiren.gif
Update:

Citadel Investment Group is preparing to expand into investment banking as the Chicago-based hedge fund tries to rebound from last year’s massive losses.
Citadel is expected to hire as many as five investment bankers, including Merrill Lynch & Co.’s Todd Kaplan, a leveraged finance specialist. The firm is expected to make the announcement in the next few days, according to a person familiar with matter.
The move may indicate that even a hedge fund trying to rebuild after an embarrassing year looks like a more attractive place to work than investment banks that are under scrutiny by various arms of the government.

  • 30 Apr 2009 at 4:32 PM

The Original

Well, if the details interest you, Chrysler’s petition in the United States Bankruptcy Court of Southern New York is an entertaining start. Our favorite section in these cases has to be the list of creditors holding the 50 largest unsecured claims. Woops.
Chrysler_043009_Petition.pdf

  • 30 Apr 2009 at 2:51 PM

Get Your Submissions In Now!

Picture 1257.pngFor those of you on 24-hour delay (CNBC): After it was announced yesterday that hot piece of man meat Tim Geithner has been deemed one of the world’s 100 most beautiful, according to People, we asked you to nominate the thirty hottest financial services hacks. You’re off to a great start but we need more picks and we need them now! As previously stated, submissions may include both individuals who project inner beauty and, obviously, those whose contribution to the universe is raw sex appeal, such as a certain Southern Connecticut Zamboni driver (so incredibly hot our ice melts just thinking about him). For inspiration, after the jump (and at left), a sampling of nominees thus far.

Read more »

Listen up, people. I know you’ve come to expect the Securities and Exchange commission to be on top of its shit and not completely worthless, but Mary Schapiro needs you to know that it’s almost a certainty that the regulator will be unable to uphold the standard it’s historically brought to the table. Why? ‘Cause financial journalists are getting laid off. And that’s a problem for the SEC because the business model it’s been following is to 1) read an article about a possible scam in, say, the Journal and then 2) go to work. Or, you know, read about a possible scam and then do nothing. Either way! The bottom line is, despite the fact that Twitter is going to go a long way in improving the SEC’s ability to crime-bust, you should recalibrate your expectations of what the agency is capable of ASAP.

Mary Schapiro, America’s new top cop for the securities industry, said the current mass culling of journalists’ jobs is a concern because it could reduce the number of leads that regulators get as they seek to crack down on nefarious behavior.
“It’s an absolute worry for me because I think financial journalists have in many cases been the sources of some really important enforcement cases and really important discovery of practices and products that regulators should be profoundly concerned about,” the chairman of the Securities and Exchange Commission told the Reuters Global Financial Regulation Summit in Washington on Tuesday.
“But for journalists having been dogged and determined and really pursuing some of these things, they might not be known to the regulators or they might not be known for a long time,” she said.

SEC’s Schapiro says journalist job cuts worrying [Reuters]