$$$ Dealbreaker is now optimized for your Blackberry.
$$$ Hedge funds sat out March stock rally [Investment News]
$$$ At MBIA, it’s like old times [The Deal]
$$$ This was apparently planned for 4PM today, though we didn’t see anything about it before and just got word of it now. Moynihan, if you’re reading, share the harrowing tale with the group.
Another problem that Bank of America has to clean up at Merrill Lynch: Cafeteria workers call on bank executives to protect their wages.
What: Sodexo workers from Merrill Lynch cafeterias will deliver a letter and a petition to Bank of America executive Brian Moynihan
When: 4 PM today, 4/8/09
Where: New Bank of America Tower, corner of 42nd street and 6th Avenue
From Bonusgate to Fancy-Carpetgate to reports of rogue trading and revelations of undisclosed losses, the troubles Bank of America has inherited from Merrill Lynch just don’t seem to stop coming.
Continue reading »
Another shout-out to our friends at the Boone’s factory, who are too modest to take credit for this one though you know they played a pivotal role. In anticipation of shareholders voting to, among other things, split up his job title: “I don’t think the breakup of the chairman and the CEO is necessarily a bad thing, but I don’t think it’s a good thing necessarily either,” Lewis said. Other things noted by KL during today’s interview with Fox Business: He “doesn’t want to disparage Citigroup,” but seriously, mention them in the same breath again and he’ll punch you in the mouth; He wants to start paying back TARP money this month, and on taking it in the first place, “I feel like I’m living the saying ‘No good deed goes unpunished.’”; Brian Moynihan is one of a lot of people who could take over as CEO; and, stop us if you’ve heard this one before, Merrill Lynch is going to turn out to be a phenomenal acquisition at some point between now and a hundred years from now.
Creeping back up the scales.
The Obama Portfolio (Since Inception): +16.75%
Earlier: The Obama Portfolio
The SEC said this morning they want comments on the five proposed rules aimed to curb short selling. Here’s one, from hedge fund harem head (and Coalition of Private Investment Companies Chairman) Jim Chanos.
Short version: Suck it.
Long version: Suuuuck it.
Longer version:
“Rebuilding investor confidence should be the primary objective of any new regulatory effort and it is not clear that today’s proposals will meet that simple goal. Skeptics, independent research and critical analysis must continue to play a vibrant role for our markets to grow sustainably and with integrity. Short selling is integral to improving the efficiency of markets and enhancing market quality through narrower spreads, deeper liquidity, less volatility, and greater price discovery. In recent years, short-sellers have publicly warned the marketplace about the dangers at AIG, Lehman Brothers, and Enron, as well as sounding the alarm over the credit ratings agencies, non-bank subprime lenders, and credit insurers. Proposals to inhibit short-selling have the effect of limiting this vital market-based antidote to corporate fraud and speculative bubbles, and must be carefully weighed against the clear harm that comes from ill-conceived government intervention in basic market functions.”
In the never ending quest to design a system where stocks and commodities never go down (except crude oil, grain and the like, of course) it is not “will the uptick rule return” but “which uptick rule will dominate.” Clever, the inevitability of the rule that is implicit in offering four versions for consideration. Plenty of argument wasted on “which version” rather than “should the damn rule exist in the first place.” Someone was reading their Monier when they scratched up this plan.
“The past 12 months have seen dramatic increases in volatility of oil prices, bonds, and just about every other asset class. How can anyone believe that the higher volatility of stocks was caused by the repeal of the uptick rule when volatility is higher everywhere?” asks Mr Newman.
Ah, simple fool. Who wants oil prices to constantly drift upwards? (You, in the back. Yeah you. OPEC boy. Zip it).
Uptick rule given new lease of life [The Financial Times]
The Federal Reserve, understandably, dislikes long-term loans. Tightening becomes difficult if you cannot call back capital quickly. Real-estate interests don’t want to hear it, and have been calling for modifications to the typical three year terms, extending them out to five. The Fed is likely to give in. Shackled though they may be when it comes to monetary policy, inflation handcuffs are a walk in the park compared to widespread defaults.
Real-estate investors, however, said the longer-term debt is critical to saving the commercial real-estate business, which faces a record amount of debt coming due in the next three years. Industry observers are expecting the delinquency rate to double by the end of this year and go higher next year. Problems could be magnified if the credit drought continues and owners of even healthy properties are unable to refinance.
Real-Estate Industry Pushes Fed to Lengthen TALF Terms [The Wall Street Journal]
Update: Apparently it’s fake. Which is disappointing. I hate you kids.
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Are those rapscallions in Philly pulling a late April Fool’s trick or is this thing happening for serious? If so– road trip!
In a controversial effort to provide a final bit of wisdom before students graduate, the Wharton School has invited New York financier Bernie Madoff to speak at this year’s graduation ceremony.
Madoff, former non-executive chairman of the NASDAQ stock exchange, has recently become known for his elaborate Ponzi scheme for which he pled guilty to an 11-count criminal complaint in March. He will address Wharton’s Class of 2009 via videoconference on May 17 at 5:30 p.m. at Franklin Field.
Madoff will headline Wharton graduation ceremony [Daily Pennsylvanian]
Bankruptcy is nothing compared to the power of forfeiture vested in the Department of Justice. So why bother letting the assets slip into the expensive, time-consuming morass of bankruptcy? Let’s just take them all, no?
The Securities and Exchange Commission asked a federal judge on Wednesday to block an effort by a group of customers to force convicted Ponzi-scheme operator Bernard Madoff into involuntary bankruptcy.
In a court document filed Wednesday, the securities regulator asked U.S. District Judge Louis Stanton in Manhattan to reject a motion to lift a stay in the SEC case against Mr. Madoff that prevents the former clients of Bernard L. Madoff Investment Securities LLC from pursing a bankruptcy action against him personally.
SEC Seeks to Block Bid to Force Madoff Bankruptcy [The Wall Street Journal]
But would like it better if you said it to his face! After ringing the opening bell this morning, the CNBC shouter told Mark Haines and Erin Burnett that it was a “badge of honor” to be called a name (specifically, a “buffoon“) by someone as esteemed as Nouriel Roubini, and invited any and all Crama Hatas to appear on Mad Money.
Earlier: This Is Just A Preview: Roubini’s Full Set Can Be Heard Tonight At The Friars Club’s Official Jim Cramer Roast
Not sure how we missed this but Nails is in trouble, BIG TIME. Many of you will recall that last June, LD put his Thousand Oaks, California house on the market, hoping to see a 33 percent return after having purchased it ten months earlier for $18.5 million. Now we find out that exactly no one went for the $24,950,000 asking price, despite Dykstra’s genius idea to throw in some extras to clinch the deal, the coup de grace of the package being LD’s “Discarded Dips Of Distinction,” a collection of chewing tobacco from the great moments in his illustrious career, tastefully encased in a white gold-flecked display case. And the hits don’t stop there. Private equity firm Index Investors, which granted Dykstra a $850,000 bridge loan in November, secured by the 8-bedroom manse, filed foreclosure papers on Dykstra’s pad last month, as has Washington Mutual, on account of Nails defaulting on his $12 million mortgage. Also, his Gulfstream II was impounded on February 12. Basically, the guy needs cash ASAP. How fortuitous then, that Dykstra’s best bud, Jim Cramer, who’s publicly described LD as the one of the greatest in the biz, will be ringing in the 1000th episode of his television show tonight. As the thing will probably prove highly watched, should JC turn it into a Save Nails telethon? We say yes.
For years it seemed California could pretty much spend itself past drunken sailor levels and tax the stuffing out of everyone to keep the debt payments current. The state’s goal to be the leading tax-and-spend municipality was boosted not insubstantially by skyrocketing real-estate prices (and the heavy taxes thereon) and permitted some absolutely eye-popping defined-benefit plans for government workers. Now, with pension funds dizzy from repeated blows to the head, tax receipts looking dismal, IOUs instead of refund checks and ballooning unfunded liabilities, California is going to need more than an oversubscribed bond issuance (fueled by tax free status, we might add) to pull the chestnuts out. As if the times were not rough enough, the citizenry are starting to get pissed. (It’s about time?)
An angry mob of thousands converged on an Orange County parking lot in southern California on a recent Saturday morning for an anti-tax protest, stunning even the organizers with the size of the turnout. It was just one in a series of public demonstrations that have cropped up around the state.
Talk of a brewing tax revolt has been largely ignored by the mainstream media, and many political analysts are skeptical, though they concede that the taxpayer mutiny that led to the landmark Prop 13 was similarly dismissed by political professionals.
California’s anti-tax crusaders talk revolt [Reuters]
