Details Set To Remake Financial Regulations (WSJ)
“At the center of the plan, which administration officials are referring to as a “white paper,” is a move to remake powers of the Federal Reserve to oversee the biggest financial players, give the government the power to unwind and break up systemically important companies — much like the Federal Deposit Insurance Corp. does with failed banks — and create a new regulator for consumer-oriented financial products, according to people involved in the process.”
Awaiting a Rebound, Back With the Folks (NYT)
Depressing read of the morning: “My mother, who is in her 60s, has been so patient and supportive. She acts like she’s happy to have us, not like we’re crowding her or that she minds the dogs. We have learned what’s important since I’ve been living here.”
Bank of America beefs up its image with Merrill Lynch icon via $10 million print and online advertising campaign (FT)
When you think of Bank of America, please think less BAC, more MER.
A Virtual Bank With Real Woes (NYT)
Possibly of interest to those of you who are either from Iceland and/or huge nerds.
AIG vs. Hank Greenberg: A Battle Over Who’s More Deserving (Time)
In court today.
Payday For Bob Diamond (FT)
The Barclays president will personally make $26m (£16m) from the sale of Barclays Global Investors to BlackRock.
Teaser For Michael Moore’s “Save Our CEO’s.”
Archive for June 2009
$$$ Should California legalize and tax marijuana? [The Atlantic]
$$$ TPG-Axon Posts Gains in May [Dealbook]
$$$ Lehman to Pay Barclays $6 Million for Its Own Chairs [Bloomberg]
$$$ Job of the Week: Brown Brothers Harriman needs a corporate finance senior associate. That could be you. [DB Career Center]
From the stimulus plan creators that brought you a multi million dollar subsidy for toy arrows, the Obama administration is now worried about losing up to $50 billion of the $787 billion stimulus to fraud. The problem is bad enough that the Feds are on the case.
Earlier this month, FBI Director Robert Mueller warned the nation to brace for a potential crime wave involving fraud and corruption related to the economic stimulus package. “These funds are inherently vulnerable to bribery, fraud, conflicts of interest, and collusion. There is an old adage, that where there is money to be made, fraud is not far behind, like bees to honey,” Mueller said.
But the Commander in Chief is on the problem.
“At a time when everybody is tightening their belts, the last thing the American people want to see is that any of this money is being wasted,” Obama said.
Fraudsters eye huge stimulus pie, consultant says [Marketwatch]
Maybe! Former Bear Stearns chairman and current JPMorgan employee Ace Greenberg was supposed to be writing a book about the rise and fall of Bear Stearns. But the project has apparently be shelved, possibly at the direct “request” of Bearpont Morgan Stearns CEO Jamie Dimon, likely out of a desire to avoid the press associated with being the firm employing the guy spilling ink on the topics of magic tricks, ass grabbing, dogs shows, and banging Barbara Walters, all of which he was planning on weaving throughout the tale. Which is admittedly disappointing, though do not fear, as Dealbreaker has reached out to Ace and offered to publish the tome chapter by chapter. Keep your fingers crossed, as it would make an excellent edition to our book club.
Here’s Steve Grasso’s offering: “We have the speed but we also have the brains of a human being.” Think you can top it?
This clip doesn’t have anything to do with finance, per se, though I’m sure you could easily make a Bank of America or Citi tie in. What it does have to do with are three of my favorite things: Danny DeVito, It’s Always Sunny In Philadelphia and being drunk at work (circa 8AM).
Related: Black Russian, Black Gold
No stranger to bailouts themselves, AIG is not going to bail out people who suffered losses or minor injuries from the US Airways flight that went down in the Hudson River. For those who were looking for a nice payday out of the accident, you can blame the plane’s captain, Chesley Sullenberger, for dashing those hopes. Because the captain did everything he could to (successfully) save everybody on board, there was no negligence on the airline’s part and therefore no obligation on AIG’s part to pay. As you might guess, not dying was not enough of a reward for some on board.
A.I.G. Balks at Claims From Jet Ditching in Hudson [NYT]
Lloyd and wife Laura having been living it up in their $27 million 15 CPW pad for the last year, where each apartment comes equipped with an auto-fellatio room in order to meet the needs of tenants that include Sandy Weill, Daniel Och, and Dan Loeb. For some reason, though, they hung on to their old place at 941 Park Avenue, perhaps so LB wouldn’t have to cross the park after his weekly chill sessions with Stan O’Neal, who lives in the building. Cityfile reports it finally went on the market today for the asking price of $15 million. If you’ve been looking for a modest 5-bedroom duplex that comes with a 30-foot living room, library, maid’s rooms, and a shower that can accommodate freakishly tall individuals (LB had it made specially for Hank Paulson’s visits), check it out.
According to Bob Pisani, “three servers are down,” and trading in over 240 stocks has been halted, among them GE, Merck, and Exxon Mobil. Supposedly the “glitch will be resolved momentarily.” In perhaps related news, if you’re a conspiracy theorist, some layoffs apparently went down at the NYSE this morning. We’re not saying, we’re just saying.
Visit msnbc.com for Breaking News, World News, and News about the Economy
[via Clusterstock]
As previously noted, Erin Burnett has been moonlighting over at the Today Show, covering a range of topics such as Jon & Kate Plus 8 and Susan Boyle. This morning brought some news you can use, and which she will presumably bring back to the nest on Monday, when Squawk Box will feature Mark Haines sporting a Bro.
While UBS is busy trying to minimize the damage from its principal protected note lawsuits, Citigroup is forging ahead with its PPN offerings. Citi has sold $211 million of the notes so far in 2009 and is not worried about investors mistaking the words ‘principal protection’ for safe.
Notes tied to the performance of the Russell 2000 index, which pay a coupon of 3 percent, are “subject to the credit risk of Citigroup Inc.,” the prospectus says in five places. It says the notes are not insured by the FDIC but are “fully and unconditionally guaranteed by Citigroup Inc.” It does not provide Citigroup’s credit rating.
Citigroup Sells ‘Principal-Protected’ Notes That Burned UBS [Bloomberg]
