The Guardian reports that the annual auctioning of lunch with Warren Buffett, with proceeds going to the Glide Foundation, may not fetch as much cash this time around. In previous years the thing went for $650,000 and over $2 million, took place on vintage a Russ Meyer set and included dessert (Oreo Blizzards) being served off a stripper’s tits. Now that the Oracle of O has “failed to cover himself in glory” people may be less willing to shell out for three hours of aberrant sex fetish and folksy business wisdom, even if it does include O Cubed’s personal collection of Becky Quick money shots. The auction kicked off last night with the current bid at just $31,000.
Archive for June 2009
Russian-American investor, Len Blavatnik, whose industrial holding company, Access Industries, reportedly lost $98 million on subprime investments wants to have a word with the House of Dimon. Blavatnik alleges his JPM banker, Ted Ufferfilge, had a unique interpretation of a conservative, low-risk strategy for his investments is suing JPM for his losses. When the subprime market started to tank and Blavatnik wanted out, Ufferfilge gave him those soothing words of wisdom- the investments were “money good”. JPM points out that anybody vulnerable enough to wind up in subprime investments qualifies as a “sophisticated investor” and therefore the lawsuit is frivolous.
“We believe this lawsuit is meritless and a transparent attempt to recover losses resulting from the unprecedented market downturn. We intend to defend this matter vigorously.”
Company Is Planning to Sue Chase Over Investment Losses [NYT]
Been considering doing the MBA thing but either didn’t get accepted to your top pick or get it together in time to send out any apps? Might we suggest Chancellor University System LLC, which comes out of the remains of formerly bankrupt Myers University in Cleveland? Most classes will offered online so you won’t have to relocate (or even get out of bed) and– and this is what we think will be the biggest draw– the MBA program will be known as “The Jack Welch Institute.” Welch recently paid $2 million to have his name and face stamped on the place, after meeting lead investor Michael Clifford at a party a few years ago. For those of you thinking an online degree might look a bit low rent on the res, do not fear. Jackles wasn’t sold initially, either.
Mr. Welch says he was initially skeptical of online education, but has been impressed by the Apollo Group Inc.’s University of Phoenix, which has nearly 400,000 students, and Mr. Clifford’s Grand Canyon University. Last fall, he called Mr. Clifford and said he wanted a role in Chancellor.
“I’m now a believer,” Mr. Welch says.
Will you get to take classes in the art of throwing scalding hot coffee on people who cut you off in the parking lot, like you would at HBS? No. And for some of you, that’s probably a dealbreaker. What you will get is “a real education,” according to Welch, who adds, “I think.”
$$$ Law firm Wachtell weighs in on possible short selling rules in letter to the SEC. “Selling a stock short in combination with the purchase of such a swap — tied to a company’s ability to pay its debt — can send a false signal into the marketplace,” the letter said. And as everyone knows, market prices are always accurate, right? Oh, yeah…. [Law360]
$$$ JPMorgan expects $1.1 billion Q2 charge after TARP [Reuters]
$$$ Marc Dreier‘s Homes Underperform on the Block [Curbed]
$$$ Bank of America done with Merrill’ bull [The Deal]
Felix Salmon thinks so, devoting a post to the supposed weight gain today, in which he draws particular attention to the neck area. Our thoughts on this:
1. Uncalled for.
2. Not even taking into account that the supposed evidence of fat is taken from a most unflattering angle, the fact of the matter is that Pandito has drastically slimmed down since taking over at Citi. So even if he’s put on a few lbs over the last few months, he’s still way under his starting weight. Practically gaunt, in comparison.
Exhibit A.
Goldman Sachs super fan Maxine Waters has her eyes on another group of evildoers and is doing something about it. The recently introduced Stop Vulture Funds Act seeks to prohibit vulture funds from suing poor countries to obtain usurious payments. No doubt it took her every ounce of restraint to avoid naming names when she described the fundamental problem.
“Over the past year, we have seen how the actions of a small number of unscrupulous and exploitative investors can hurt innocent people and cause economic chaos. We cannot allow the world’s poorest countries to be exploited by these bad actors.”
As a reminder, this is where the legislation is coming from.
US bill would outlaw vulture funds [Guardian.co.uk]
Allen Stanford’s Lawyers Think Throwing Client In Jail Would Be A Totally Excessive And Unwarranted Move
By Bess LevinRe: jail or bail for Allen Stanford, the accused Ponzier’s lawyers argue that detention would be “a punitive measure” and that the government is grandstanding, which, considering the source, is rich and awesome. Prosecutors are pegging the ultimate sentence at 375 years.
When we heard that Paul Tudor Jones had given a commencement speech to the graduating class at the Buckley School on the topic of failure, we feared it’d be some sort of personal growth exercise in which PTJ blathered on about the trauma of last year, and how even though he was down and out, he came back triumphant in ’09 (because Tudor BVI Global only lost about 4.5 percent for 2008, a relative win compared to his colleagues in the field, PTJ would have the strength to talk about the humbling experience, unlike those who did considerably worse and aren’t ready to go there). Apparently, not so much.
Instead, he told a room of 14 year old boys and their parents about the time he got left at the altar. And what he learned from not being able to rescue a group of underprivileged Bed-Stuy kids from becoming a statistic. At various points he says things like “Failure will give you a tattoo that will stay with you your whole life” and “Shame can be a lifetime companion for which you better prepare yourself.” The whole thing is summed up thusly: “Here is the point: you are going to meet the dragon of failure in your life.” Not just failure. The DRAGON of failure. The beast of failure. The Loch Ness Monster Of Failure.
So: kind of dark! And a pinch heavier than expected. Nevertheless, actually a very good, moving read (that includes Mardis Gras references and talk of restarting the Civil War). Plus, let’s not forget how this story ends: with the greatest show on earth.
With tax receipts down and unemployment up. the brave souls at Ambac tried to pick now as an opportunistic time to launch Everspan Financial Guarantee Corp,, a bond insurer focused on wrapping municipal and public purpose debt. While Ambac thought feel good fiscal stories like the ones playing out in California would entice investors to fund their well timed venture, the lack of people willing to burn money at this stage has put the project on hold.
Ambac Delays Launch of Muni Unit [WSJ]
The day we hoped and prayed to the God of Dip would never come is upon us. Lenny Dykstra’s Thousand Oak’s home will be auctioned off July 9, after foreclosure papers were filed on Nails’ ass by private equity firm Index Investors and Washington Mutual. (Dykstra, bless his heart and mind of a child, had attempted to sell the manse last June for $24,950,00, after having bought it ten months earlier for $18.5 million but apparently no one wanted to give him the 33 percent return he so richly deserved). LD is also said to be in debt upwards of $50 million. We’re deeply upset about all of this and know exactly who to blame. Jim Cramer.
It turns out hedge funds do have a friend in this world- China. While legions of politicians in DC spend countless hours and dollars determining how best to handicap the hedgies’ ability to operate in the free market, the sovereign wealth fund of the People’s Republic is ready to part with $500 million and see what ruthless speculators such as Blackstone can do with it.
CIC Said to Invest $500 Million in Hedge Funds, Blackstone [Bloomberg]
