Obviously a lot of ways to go with this one. Fill in the blanks now, big reveal after the jump.
Archive for June 2009
Citi Chairman Dick Parsons is on board with the whole $45 billion TARP repayment thing, but isn’t quite so brazen as to issue a timetable that the bank will never meet. But this is not to say that Citi doesn’t have a credible, well thought out plan for addressing its massive bailout.
Parson said Citi recently filed with the government a capital plan that outlines the bank’s strategy going forward for repaying TARP.
He declined to give the specifics of the strategy, but said “so much of it will depend on the cooperation of the markets.”
He’s appeared on the show a bunch of times since the Car People incident but we’re told the Mackster is done on Fast Money, info seemingly corroborated* by he fact that his picture and bio have been wiped from the FM page (they were apparently still up two days ago). Nod if you understand what I’m saying and then do us a favor.
*Update: Confirmed by CNBC’s Brian Steel, who told DB, “We wish Jeff well and thank him for all his quality contributions.”
And not just in a theoretical, you-work-in-finance-therefore-you-play-the-bad-guy sense! “Starring” may be a bit of a stretch but nevertheless: if you caught the Hangover Friday night at Lincoln Square AMC you can look forward to watching yourself on the big screen come October, when the still-untitled film will be released. A camera crew filmed audience member’s reactions to this teaser:
If Mary Schapiro and the revamped SEC can’t put this one away, there is really no hope for them. Italian authorities recently found a little surprise in the suitcases of two Japanese travelers trying to cross the border into Switzerland- US government bonds with a face value of over $134 billion. The Italian police now want the SEC to opine on whether these two individuals were just overpacking for a holiday in the Alps or up to something a little more illicit.
Among the issues that may befuddle SEC are:
(1) The likelihood the 2 people stopped at the border are legitimately the US’s fourth largest creditor
(2) The denominations listed on the bonds did not exist on the date they were theoretically issued; and
(3) The “Kennedy” classification of the bonds does not appear to exist.
Italian Police Ask SEC to Authenticate Seized U.S. Treasuries [Bloomberg]
Obama: “America might go the way of GM if we don’t fix the healthcare system.”
Today brings a crash course from the good people at Colony Capital, who spent $23 million to get in bed with Michael Jackson last year when the singer defaulted on a $24.5 million loan backed by Neverland Ranch, and are now attempting to make the place salable. It’s hard, though, see, ’cause while huge and filled with happy memories, the estate is a bit run down, and, depending on your view of things, devalued by the (alleged) child-banging aspect that pervades throughout. Anyway, we figured, in the very likely event that one or two of the more well-known DB readers will find himself in a cash-strapped situation that would necessitate the sale of his own Kid Zone, Colony’s effort would provide a nice guide when it comes to navigating “the fine line between removing the taint of scandal while preserving enough…quirks,” to pique the interest of potential buyers.
* Do: “bring in a small herd of Clydesdales to show visitors some signs of life”
Goldman investment strategist Abby Joseph Cohen is sounding very bullish on the second half of this year. She says corporate profitability may be up dramatically from the second quarter of 2008. But taking a look at her word choice, it seems like something else is at the forefront of her mind. After describing investor fears of inflation as “spectacularly premature”, she went on to caution that the “spunk” of consumption growth seen earlier this decade will not return. However, she did say that Bernanke had been “extraordinarily effective” during this crisis.
Goldman’s Cohen sees inflation at bay [Reuters]
A couple weeks ago, Dick Bove was out there preaching his ‘this is the new golden era of banking’ sermon. Now he is getting down to specifics starting with BAC. They will be ushering in this period of unbridled profitability by enjoying “horrific” loan losses that may require them to increase their loss provisions to $46 billion. Possibly spurred on by the unambiguously bullish comments coming out of the G8, Bove raised his price target on BAC by approximately 36% from $14 to $19 and had some choice words for anybody bearish on financials.
It is now being conceded, by even the most bearish observers, that claims that the industry was insolvent were incorrect and, therefore, banking will survive and possible thrive
Bank of America suffering “horrific” loan losses – Bove [Reuters]
So, you a lot of you have previously expressed the opinion that Harvard Business School students and grads are– how to put this– pussies. They may have a vast network to dip into when it comes time to raise seed capital for their scam of choice (kidding?) but when it comes to fighting, whether it’s in the bar or boardroom, Meredith Whitney could take thirty of them with one arm tied behind her back. Granted, the Dollar Dom has freakishly strong upper-body strength, and the skills that comes with being married to a pro-wrestler (date night consists of rounds on the mat), but you get the idea. Luckily for current and future HBS’ers, one member of the faculty has identified this shortcoming, and is incorporating several weeks of “outside the box warfare training,” corporate and street, into his curriculum.
Harvard Business School professor Lee O. Fleming is pleading not guilty to charges of assault and battery after police arrested him last week for allegedly throwing hot coffee at an individual during a parking dispute.
Fleming’s lawyer, Paul R. Mastrocola of Burns & Levinson LLP, said that the professor “looks forward to addressing these allegations in court.” He and Fleming both declined to comment on the specifics of the incident and court proceedings due to the pending criminal charges, but Mastrocola added that they are confident the professor will be vindicated. He did confirm that the dispute took place on a Cambridge public street.
Not even a colorist wielding toxic chemicals. Not even the former wife of an ex-con. Not even Vikram Pandit. We’re making an assumption with the last one but, I mean, it’s probably true. The Times reports that the many of the people who once made Lady MacMadoff’s world go ’round (including those expelled from her uterus), and also perfect strangers, united only by the fact that their husbands broke the law, are maintaining at least a 200 foot distance between themselves and the Ponzi Zone.
