And you people are on his ass for just one? Also, WaMu apparently caused Nails to lose $38 million.
Archive for July 2009
As the White House tries to get its story straight about whether or not it misread the severity of the recession, Federal Reserve Governor Elizabeth Duke threw out a word of caution to the banks still in TARP jail at risk of confusing a multi-trillion dollar sugar high with better economic conditions. After reiterating the party line of ‘things aren’t completely falling apart but that’s about it’, Duke provided some food for thought for the remaining bailout boys looking to rid themselves of government’s death grip.
“If you have already received TARP capital, consider holding it in reserve for a little longer, at least until conditions are more favorable,” Duke said. “Once you repay the TARP investment, it likely will not be available again.”
It will be heading back out the door to pay the mortgages of the unemployed.
Fed’s Duke Says U.S. Economy Is Stabilizing at a Low Level [Bloomberg]
Sources tell Cityfile that the (relative) widow has been bunking in Hewlett, Long Island, at the home of her niece, Diane Hochman. Diane is the daughter of Ruth’s sister Joan, and her husband and father worked for you know who until it turned out the business was a scam. So that’s gotta be awkward, but perhaps Ruthskie is making amends by cooking dinner and making beds? In related news below is an interior shot of the 1-bedroom Mrs. Mades is considering purchasing in the Bronx.
“I filed for Chapter Eleven. That’s reorganization. That’s not bankruptcy.” Do you see the distinction? Also, Nails tells CNBC’s Jane Wells, “I’m still making money in the stock market.”
Earlier: Is Jim Cramer Trying To Keep Lenny Dykstra’s Bankrupcty Hush-Hush?
In an impressively lucid performance this morning on Fox Business, Dick Bove weighed in on Citi’s most recent round of senior management Survivor and then started a candid discussion about how buy-rated Citi became the juggernaut it is today by saying “Citigroup has always been a snake pit and a mess”. The fun begins 2:40 in.
Charlie Gasparino: Citi Is Just Like My Neighbor From Childhood Who Used Beat His Wife
By Bess Levin
In his latest column for The Daily Beast, Charlie Gasparino discusses the fact that while “some investors and Sheila Bair” had hoped the government would put Citi out of its misery, the plan is to keep the bank “half-dead and half-alive because in its current, near-vegetative state,” where it can’t do much harm, and focus efforts on Bank of America. Gaspo understands the logic, but he doesn’t agree with it. He thinks even in a state of comatose, the Big C could do a tremendous amount of damage. How does Charlie know this? He’s seen it happen before:
In some ways Citigroup reminds me of this nasty neighbor I had as a kid. He was a hazard to both the community and his wife and kids whom he used to abuse on a daily basis. Then one day he got into an accident; I believe he fell off the back of a truck, cracked his skull and was in a coma. We prayed for his timely exit from this world but he hung on, first for weeks and then for months.
[via White House Flickr]
We don’t blame him, of course, given that Nails’ run of bad luck is all his fault, but this seems a bit shady. A tipster informs us that an article on TheStreet.com entitled “Lenny ‘Nails’ Dykstra, the Next Meriwether?”–posted yesterday–is no longer available. It’s behind a subscription wall so it’s never been available to us (the only thing over at that joint we’d pay for is the opportunity to outsmart the markets alongside Ron Insana) but now it appears as though the story has been removed entirely. Surely there’s an explanation for this. Whether it’s “technical difficulties” or an attempt by the TSC founder to minimize the fallout from another failed bold call is the question. If anyone has anything to get off his chest, please do so at this time (and yes, LD, you can call us collect).
Update: No word from TSC or JC but the following was apparently the post in question, which we’re reprinting without permission. Doesn’t really seem that offensive to us, though the “position” is a nice burn.
Timothy Collins
Lenny ‘Nails’ Dykstra, the Next Meriwether?
7/8/2009 5:15 PM EDT
Confidential to JD and Steve Black: someone is very unhappy at the House of Dimon:
If you’d be so kind as to call out JPMorgan, I would appreciate it.
Outgoing third year analyst bonuses: $20k.
This is absolutely pathetic. It’s an utter insult.
Update: Some details that may shed some light on the $20k situation. The outrage above was expressed by a departing third year analyst, whose superiors knew was leaving before they came up with the number, which he acknowledges “may have played into it.” He also notes that the figure is probably “well below” that of analysts staying on as associates.
Related, for comparison’s sake: First Year, Second Tier Rainmakers Pulling $42k Bonuses At Citi
Not that this nation needs another moral hazard-ridden bailout plan, but Barney Frank has one. As the (official) unemployment rate continues marching along towards 10%, the internet gambling advocate has a $6.5 billion “TARP for Main Street” proposal ready to go. The plan would be funded by TARP dividends and allocate $2 billion in “loans” to pay the mortgages of the unemployed. With conventional lenders unwilling to modify mortgages in light of the end of the recession, Barney has found a new way for the government to increase its bailout losses.
Frank proposes home loan plan for jobless [Boston Globe]
Since one of you asked (and the rest of you want to know): Charlie Gasparino has checked in to inform us that his time so far in Nevada has been “incredibly boring,” presumably because Kudlow, who was supposed to get out there last night, will not be arriving ’til tomorrow. Left to entertain himself, all the big guy has done is punish his lats at the hotel gym, and eat at “some Japanese restaurant” where he can tell they’re hurting for money, on account of the “extra six dollar charge” on his bill. He inquired what was up with that and was told by the “good looking gal behind the bar” that the staff had taken the liberty of throwing some extra vodka in his drink and billing accordingly. As of this morning, CG says he’s yet to hit up “any strip clubs, dancing girls or slots,” though clearly he could be lying and obviously LK does not board planes headed West without the expectation of waking up sans pants in Wayne Newton’s cigar room, on a slow night.
