Nevermind the fact that he plans to host movie nights in a massive screening room that plays “Chooch” on loop. Steve Rattner’s neighbors on Martha’s Vineyard are apparently majorly ticked that he’s constructing a 15, 500 square foot pad in Lambert’s Cove. Page Six claims that residents find the $15 million project to be “gaudy” and “far too big,” and some people supposedly take issue with the fact that the home is “close to a sacred Native American burial ground protected by a permanent preservation restriction.” Anyway, unless they make nice ASAP, it sounds like the neighbs have gotten themselves uninvited to the popcorn and a flick parties, which is just as well, as we hear Rattner needed to find space for all the Chrysler dealers he was planning on having over, and was going to have to make some tickets standing room only, which wouldn’t have been very hospitable.
Archive for May 2009
Did Investors Know About Madoff’s Scheme? (WSJ)
The Journal is looking into whether or not it’s possible some of the investors (philanthropic ones, no less) could have, or in fact did, know about Madoff’s little secret. Among the evidence pointing to the answer being yes: in certain cases they would define their earnings expectations, and then a short time later their accounts would reflect those expectations.
“Prosecutors haven’t charged any Madoff investors with criminal wrongdoing. A lawyer for Mr. Picower, 67 years old, said his client wasn’t complicit in the fraud and suffered losses in the billions. A lawyer for Mr. Chais, 82, a money manager who channeled West Coast clients to Mr. Madoff’s firm, said he was unaware of a criminal probe of Mr. Chais and his client didn’t have knowledge of Mr. Madoff’s Ponzi scheme. Mr. Chais “has cooperated fully” with investigators, the lawyer said. A representative for Mr. Shapiro, 96, said Mr. Shapiro had no knowledge of the fraud.”
Lloyds Chairman Victor Blank To Resign In Next Year (WSJ)
“A spokesman for Lloyds couldn’t say how long it will be before the bank names a successor.
Mr. Blank and Chief Executive Eric Daniels have faced heavy criticism from shareholders since Lloyds, the U.K.’s fifth-largest lender, agreed to take over HBOS last fall in what amounted to a government-sanctioned bailout. The combined group has since been forced to take billions of pounds in government capital and participate in a U.K. asset-insurance plan in which the bank agreed to surrender a majority stake to the government.”
Buffett Increased Holdings In WFC (MarketWatch)
“Berkshire held over 12 million more shares in Wells at the end of the first quarter compared to the end of 2008, the filing disclosed.
Wells shares slumped during the first quarter as some investors worried the largest U.S. banks might be nationalized. However, Buffett expressed strong support for Wells and some other banks at Berkshire’s recent annual shareholder meeting.”
Trump On How He Values His Empire (WSJ)
What happens when you allege Trump is worth less than Trump thinks Trump is worth? Trump sues your ass. Comb-Over is laying it to the author of a 2005 book that valued Trump at $150 to $250MM, claiming that it was defamation and as a result he’s lost out on deals. Just, let that sink in.
$$$ FDIC disputes report on bank CEOs being replaced [Reuters]
$$$ Job of the Week: Morgan Stanley needs a credit risk analyst. That could be you. [DB Career Center]
$$$ “Gone is the distinct masculine flavor of an all-male college. The maleness of the Nassau Inn’s Tap Room has been replaced by a female, dainty, tearoom atmosphere. A glance at the Class Notes reveals that younger class secretaries are almost entirely women.
My fear is that the Princeton Univer-sity I knew has been taken over by a female majority (for better or worse). I am surprised that other male graduates are not upset by these developments.” Yeah! And don’t think this hasn’t had a direct affect on the Street, where you were once able to smoke pole on the desk without the prying eyes of women. Now? Not so! [PAW via AWL]
$$$ Defecating is back at Merrill [clusterstock]
$$$ Who wouldn’t want to play asshole with these guys? You can, right here!
Orman is nothing if not a contradictory personality — someone who travels with her own healthful, organic food but who also rewards herself, after a day in which she has sold $1 million worth of her books or financial-planning kits on QVC, with a binge at Taco Bell. Karen Fonner, who works with Orman at QVC, recalls that at the end of a workday about eight years ago Orman told her that she craved a hot dog. Fonner took her to a hot-dog stand and watched — everyone in the vicinity watched — as Orman devoured six hot dogs.
Now that Bernie Watch is old news, we have to move on. Luckily for us, there’s plenty more fast-food of the rich and indicted fodder available. For example:
House arrest isn’t too harsh for dirty lawyer Marc Dreier, who’s out of jail on $10 million bail under armed guards until his sentencing in July. Dreier claims to be so broke that he used his son Spencer’s bar mitzvah money to pay for food for the last three months. But sources say he regularly orders miniburgers as takeout from pricey Le Cirque, downstairs from his $5.4 million One Beacon Court apartment.
We could go for some good miniburgers actually. Or you could just send us some bar mitzvah money. (We assume the victim of that little theft is in the attached photo above).
Taste of Freedom [The New York Post]
Charlie Gasparino reports that he’s hearing Goldman Sachs and JPMorgan will likely be the first banks allowed to repay TARP money, with permission (which they tentatively have from the Treasury but not the Fed) possibly coming as early as next week. Chaz added that if it turns out that Goldman is allowed to give the money back (and extract itself from the freaky-ass rules that come with it), and JPMorgan isn’t, “Jamie Dimon will be going to Washington with a bazooka. I guarantee it.” While we would all love nothing more than for the House of Dimon to get its way, I think we can all agree that the bazooka scenario would be something to see, especially if consigliere CG comes with, and threatens to bust knee-caps.
Update: The above comment about Dimon packing heat was from Chaz-boy’s CNBC report. Just to make sure we get the pain that will be brought on the government, should they choose to fuck with JD, CG reiterates the point in his latest column:
JP Morgan CEO Jamie Dimon has made no secret of his desire to replay the TARP money, and according to people close to JP Morgan, he’s likely “to go batshit if Goldman is able to repay before he does.”
IMG is the student group for Chicago MBA students looking for positions with hedge funds, mutual funds, sell side, etc. Here are the stats on who chased and conquered that dream and who didn’t. As an employment-seeker noted, “it wasn’t really necessary to do all the number crunching when a ‘you been fucked’ would’ve sufficed,” but I guess someone had the time and initiative.
From: imgroup_09@lists.chicagobooth.edu On Behalf Of Boswell, Mariko
Sent: Friday, May 15, 2009 10:05 AM
To: imgroup_09@lists.chicagobooth.edu; imgroup_10@lists.chicagobooth.edu
Subject: IM Recruiting Statistics from Career Services
IMG Members:
As requested by many of you, Career Services has compiled IM-specific recruiting statistics. Please see the information below from Char Bennington.
————————–
Dear First-Year and Second-Year IMG Members,
Based on questions from the meeting I attended several weeks ago, the following %’s were compiled based on current 1st years and 2nd years pursuing roles in IM. We used a number of data points to come up with the “interest” factor (students truly interested in IM) including full-time and internships interviews, resume book profile information, etc. Based on information that was reported through the Search Status Survey (SSS) as of late last week, here are a few data points as a % of the total IM seeker population best that we can estimate:
What’s this joyous news I hear? We’re finally being offered the opportunity to sleep where Ken Lewis hath slept my darlings! KL has slashed the price of his 5,700 square foot vacation home by 13 percent, to the bargain basement price of $3.3 million. Boone’s Boy bought the place in 2002 for $3 million, with a guy named Dennis Thompson, which is weird, but whatevs! It’s on Spring Island, a private community (gated for his protection) near Hilton Head and comes with a screening room filled with happy memories of movie nights with Ang Moz, and what is likely a rarely-used office. Let’s take a closer look, shall we?
I bet you thought things were looking up at our favorite Swiss bank in town, didn’t you? ‘Cause senior bankers’ salaries are being raised 50 percent, a largess that may extend to “less senior” employees’ salaries, if they play their cards right? Well WAKE UP, ladies. This bone is being thrown to (unsuccessfully) make up for something so much worse.
Chief Executive Officer Oswald Gruebel also said the bank will make savings from cancelling employee benefits. In Switzerland he scrapped car leasing benefits, season tickets for trains, contributions toward gym memberships and free parking.
I mean…what’s the point anymore?
Heads will roll.
Federal Deposit Insurance Corp. Chairman Sheila Bair said some bank chief executives will be replaced in the next couple of months as the U.S. scrutinizes lenders subjected to tests to evaluate their financial strength.
“Management needs to be evaluated,” Bair said today on Bloomberg Television’s “Political Capital with Al Hunt,” to be broadcast this weekend. “Have they been doing a good job? Are there people who can do a better job?”
So let us ask what may or may not be an obvious question: Why exactly do we need the government to make management changes at the top that they could not force without controlling a majority of common if not for the particular accident that they happen to have a great deal of political power at the moment?
We suspect two potential answers:
1. Shareholders just don’t care that much to change management and the government is overreaching “because we can.”
2. It’s basically impossible to unseat entrenched management in a public company and government is performing a useful service by cracking the regulatory whip?
Discuss.
Bair Says Some Bank Chiefs Will Be Replaced in Next Few Months [Bloomberg]
Certain Bank Of America Shareholders Fully Supportive Of Government’s Request To Send Board Home In (One Giant) Body Bag
By Bess Levin
Specifically we’re referring to CtW Investment Group, which should come as no surprise to those of you who’ve followed the group’s efforts to throw certain members of the Bank of Amerillwide team out on their asses. CtW spokesperson Michael Garland told the Deal, “Given the taxpayer dollars now at risk at BofA, it’s appropriate and necessary that the government also weigh in. It certainly intensifies the pressure on the board to move aggressively to both reconstitute itself and accelerate CEO succession.”
Earlier: Hey, Why Don’t We Muck With Their Board?
