By using aliases, LIMMT fooled U.S. banks into processing dozens of illegal transactions, Morgenthau said. “Our banks have high standards and sophisticated systems to stop these transactions, but this conduct was specifically designed to defeat their systems,” he said.
Some of the U.S. banks involved were Bank of New York Mellon Corp., Bank of America Corp. and JPMorgan Chase & Co., Morgenthau said.
The U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned LIMMT in 2006 for its role in the proliferation of weapons of mass destruction to Iran, Morgenthau said.
Chinese Firm Indicted for Misusing Banks, Aiding Iran [Bloomberg]
Not sure how we missed this, but if we’re going to go there, let’s go there. Who would be the tastiest? Cayne would obviously be hickory smoked, Fuld tough and gamey. Blankfein…thinking tender like a Cornish G-hen. But what about Dimon? Mack? Citi first years?
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The situation is fluid. More as we hear it.
The GAMCO founder was yukking it up with the Squawk Box crew this morning, talkin’ bargains and opportunities. Other reasons the Gabster’s smiling? Last year’s compensation totaling just under $46 million, “despite the firm only making about 25 mill,” according to our MarGab watcher.
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We were going to spend some time talking about Comcast Chief Executive Brian Roberts’ making the Top 15 for 2008 executive compensation, but we cannot help but feel that any commentary we would offer with respect to this fact would pale in comparison to the expositive power of this picture of Comcast’s Philadelphia headquarters via Consumerist.
Comcast CEO Roberts makes the Top 15 on pay [Reuters]
It is a pity that what is probably the busiest the Executive Suite over at General Motors has been in the last twenty years is during its current preparation for a bankruptcy filing. And as tempting as it is to regard a filing for bankruptcy protection by the automaker as something of a triumph of rationality, it is, in fact, the reverse. It should be quite difficult not to be beyond pissed off at the billions of cash, taxpayer cash, that has been burned over the last many months, all for the sake of the PR gloss of calling the currency whirlpool a “going concern.” This also bodes rather poorly for the many financial institutions that would seem to be in similar condition, though perhaps with slightly less advanced pathology.
Of course, the news could be little more than the latest bit of leaked brinkmanship, but we think that ship has sailed.
General Motors Corp is in “intense” and “earnest” preparations for a possible bankruptcy filing, a source familiar with the company’s plans told Reuters on Tuesday.
A plan to split the company into a new company made up of the most successful units, and an ‘old company’ of its less-profitable units is gaining momentum and is seen as the company’s best configuration for the future, said another source familiar with the talks.
Don’t worry. Nothing is fucked. We are beyond certain that the current plan to mass produce wheelchairs with windscreens (note the wheelie wheels on the back!) in partnership with Segway (free colostomy bag with every purchase!) will pull the chestnuts out.
GM in “intense” bankruptcy preparations: source [Reuters]
As you’re likely aware, Lloyd Blankfein spoke to a conference of the Council of Institutional Investors this morning. He said we need “some degree” of government oversight on hedge funds and private equity and that “we should apply basic standards to how we compensate people in our industry.” Way more importantly, he interfaced with a coupla members of Code Pink, those ladies who’ve been showing up at congressional hearings wearing homemade tee-shirts and bearing signs with demands like “Give our $ back!” Two of ‘em made their way all the way to the stage and exchanged words with Blanks, who whispered something to one of them, causing her to smile and move her ass out of the way. But what?! We’ll post footage as soon as it’s available, but in the meantime, feel free to take a stab.
Remember when we reported that Hank Paulson’s son, Merritt (no, we didn’t make that up) had managed, with a little help from Dad, to talk his way into a major league soccer team in Portland? Yeah, well maybe not so much.
The bad news was that Paulson could get a third vote on the council only after commissioners agreed to strip out a plan to create a new urban renewal area around the existing stadium and sell $15 million of bonds backed by taxes generated within the new district.
That left a $15 million hole that Paulson says must be filled by Sept. 1, or the stadium won’t be done in time for the 2011 MLS season. He says he can’t commit any more family money. He and his father are paying $35 million for the franchise and $12.5 million for the stadiums. They’re also guaranteeing rent and ticket taxes for 25 years and will pick up construction overruns beyond $2.5 million.
Stop worrying. Nothing is fucked. This is a brief delay. Nothing more.
Henry Paulson’s Son Finds Dad’s Money Won’t Buy Soccer Bliss [Bloomberg]
They have no sense of humor when you try to mess with the much weakened 35 hour work week, or when you hint that they might not even get paid for that. But even against this backdrop, nothing is more acute than the French hatred of authority. True, they haven’t revived beheading, yet, but I still wouldn’t want to be an executive on French soil today:
Almost half of French people believe it is acceptable for workers facing layoffs to lock up their bosses, according to an opinion poll published on Tuesday.
Staff at French plants run by Sony, 3M and Caterpillar have held managers inside the factories overnight, in three separate incidents, to demand better layoff terms — a new form of labor action dubbed “bossnapping” by the media.
A poll by the CSA institute for Le Parisien newspaper found 50 percent of French people surveyed disapproved of such acts, but 45 percent thought they were acceptable.
So, we wonder, Dealbreaker, as a purely theoretical exercise because, of course, we absolutely abhor violence, when Congress passes the “No Executive Left Outside” law, who would be the most likely candidates in North America for a bit of bossnapping? (Aside from Ken Lewis, that is). Would you hold Count Vikula in the zen garden?
Almost half of French approve of locking up bosses [Reuters]
Richard “Keep the Faith” Parsons is chillaxing in Hawaii this week (yes, he’s there to give a speech at the University, but don’t assume time for a little R&R won’t be squeezed in), where he took 5 to riff on sharing responsibility for the current state of affairs up in this piece:
“Everybody participated in pumping up this balloon. Now the balloon has deflated,” he said Monday. “Everybody, in reality, has some part of the blame. But it’s much more in the culture to find a villain and vilify the villain.”
Citi’s (and his) minor role in the sitch:
Parsons said as a board member since the mid-1990s, he shares some of the responsibility “for where we find ourselves.”
“That’s one of the reasons I took this job,” he said.
Citi’s presence as a powerhouse institution:
“Any time you have these financial crises, the bad news seems to overwhelm all the good news,” he said. “But within the envelope, Citigroup is still a very powerful, vibrant, highly profitable, good bank.”
And potentially roughhousing the President in a pickup game:
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Advantage Plus LP:
March: 2.15%
March YTD: 10.33%
Advantage Plus Ltd:
March: 2.16%
March YTD: 10.34%
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