On Monday Ruth Madoff got her passport back which will come in handy when the old girl moves all the way up to East 90th Street. The Post reports that Ruthskie’s real estate broker was spotted checking out a 1-bedroom, 481 square foot condo in the Trafalgar House. The place would cost Mrs. Bernie $465,000 plus a ton in renovations (the floors need to be refinished, the ceiling is missing chunks of plaster, the walls are scuffed and the kitchen features Formica counters), assuming the building’s residents don’t block her from moving in, which it sounds like they might (“Oh, my God, that would be so horrible,” one resident was overheard saying. “We don’t want that tension in here”). With only $2.3 million to live on, it’s one of the few places within her price range, but there won’t be much left in the way of spending money, so she will be relying on a gentleman caller to cover dinner/nights out. Sign up now, and be the first to take her to the local White Castle.
Archive for July 2009
Banks that acted as custodians for Madoff investments are starting to really feel the heat. This time, more than two dozen retirement account holders are suing Connecticut-based Westport National Bank for $60 million for their Bernie losses. While the custodial agreement spells out that individuals agree they did not rely on the bank in choosing Madoff, it also states that the bank would properly document the customers’ ownership in the Ponzsters investments. Lack of personal accountability and flat out greed played a huge role in Madoff client losses. But when a bank, which has every opportunity to bury CYA language deep in client agreements, blatantly disregards is obligations, they wind up looking about as credible (and guilty) as Bernie.
Connecticut Bank Sued in Madoff Investment Scheme [NYT]
Ned Kelly will be named Vice Chairman and take on “broader responsibilities” re: M&A and “strategy,” Eugene McQuade, previously Vice Chairman of Merrill Lynch, will be named Chief Executive Officer of Citibank, North America, and Gary Crittenden is quitting and moving to Utah. Vikram Pandit is sticking it out, which must surely frost Sheila Bair’s cookies, and Sandy Weill just wants to dance. Press release from the Big C:
NEW YORK, Jul 09, 2009 (BUSINESS WIRE) — Vikram Pandit, Chief Executive Officer of Citigroup, today announced several senior management changes to support the company’s business and strategic priorities and to ensure that proper management is secured to lead these efforts.
“Our relentless focus on executing against our strategic priorities at Citi continues as we remain focused on rationalizing Citi Holdings, and on Citicorp as our core operating business,” Mr. Pandit said. “We are making consistent and substantial progress towards these goals. The senior management changes I am making today will further help in positioning our company for the future.”
White House Ponders Bernanke’s Future (WSJ)
“Treasury Secretary Timothy Geithner is expected to play a key role in advising President Barack Obama on whether to reappoint Mr. Bernanke…Before making a decision later this year, the White House also is expected to look at other economists, including Roger Ferguson and Alan Blinder, former Fed vice chairmen; Janet Yellen, president of the San Francisco Federal Reserve Bank; and Christina Romer, chairman of Mr. Obama’s Council of Economic Advisers.”
Exit Package For Wagoner In The Works (WSJ)
It’ll probably be around $20 million, though nothing’s been decided yet given the “delicate” nature of the situation.
AIG In Talks With MetLife Over Alico (FT)
Which would mean $15 billion down, $15 kajillion to go in terms of paying back the government.
Bern To Block UBS Transfer Record To US (FT)
The Swiss will sooner eat the documents than let the US get its mitts on them.
Buffett Lunch Auction Won By Canadian Firm (NYT)
Salida Capital Corp, whose multi-strategy fund was down 66.5 percent last year (but up 83.4 percent YTD) will pay $1,680,300 to dine with the Oracle of O.
Lehman Pays Its Bankruptcy Advisors $262.2 Million (Bloomberg)
For 9 months of work, which majorly chaps Dick Fuld’s hide.
Does Felix Salmon have criminal tendencies? (Reuters)
Felix Salmon would like to know. Not a rhetorical question
$$$ Treasury Picks 9 Firms For PPIP [Financial Stability]
$$$ Ezra Merkin’s Walls Will Not Be Bare For Long [Cityfile]
$$$ Larry Summers is in the Facebook movie’s script. Fingers crossed for a cameo. [Forbes]
$$$ Paris Hilton Film Trial Rooted In Ponzi Scheme [AP]
$$$ Having successfully missed Madoff scam, SEC official Lori Richards announces her work here is done and resigns effective August 7 [Reuters]
$$$ We are to understand that this “Tickle and Pee” game has replace the Silence of the Lambs-inspired “Fruit Basket” routine as the after the close game of choice at Stamford’s premier hedge fund. [Gary Busey]
As California’s desperation to close its $26 billion deficit grows by the day, a group known as the Marijuana Policy Project has offered up a way for the state to shave a billion off their tab- legalize and tax pot. The group launched a TV ad campaign last night in support of all those Californians armed with their three-footers just aching to help the state out by paying taxes on their Maui wowie.
A group of investors who were relying on the herd mentality to make their investing decisions is suing Highland Capital Management for the fact they made the wrong choice and are now at the back of the line for getting their money back. During the time Bear was being put down, a group of Highland investors (sensing all was not well in the world), asked about the volume of redemption requests from other investors. Partner Donald Salvino’s response to the investors was that redemptions were “almost a nonevent”. Taking his answer at face value and as the only variable to consider, the investors decided not to submit redemption requests. After the fund later closed down, Highland divided investors into two buckets for determining when people would get their money back: those that requested redemptions and those that didn’t. As they wait to get their money back, the investors are now betting that, in the age of hedge fund persecution, one subjective answer will absolve them of any personal responsibility.
Investors sue Highland Capital after funds shut [Reuters]
Bank of Amerillwide Figures It’s Going To Have To Beat Off Pack Of Prospective Employees With A Stick
By Bess Levin
As most of you are probably aware, Bank of America/Merrill Lynch has seen a mass exodus of senior executives since Hank Paulson forced the two to merge in December. This, of course, has been upsetting, and global head of M&A Steven Baronoff admits today to the Journal that it was tough to see top talent, which is to say the Merrill employees, go. (His comment was obviously a cleaned up version for the press, shareholders presumably not appreciating Baronoff shooting the paper straight with how things really went down, i.e. “It’s like this see. Buncha guys went into Lewis’s office one afternoon when they knew he’d be three sheets to the wind, so around 2ish. Lewis thinks they’re there to bond over a few troughs of Scotch, comes around his desk to shake their hands, trips and falls. While he’s down there they drop the bomb they’re leaving, to a very confused KL– “Wahh? I thought…but the Scotch?”– who is still on the floor once they’re halfway to the door, which he throws an empty bottle of Boone’s at while shouting ‘Fine, get the hell out of here and don’t come back, don’t you ever think you can come back!’ before breaking into an uncontrollable fit of drunk tears.”)
You’d think, maybe, that there’d be some nervousness about replacing the defectors given that BAC/MER is currently tied with Citi for first place in Train Wreck League Tables. But you’d think wrong. Over at Bank of Amerillwide they’re totally confident they can not only score some fresh tail but best in breed. Because everyone’s desperate for work? No. Because Bank of Amerillwide is just so damn hot.
Federal prosecutors have recommended to Judge Jed S. Rakoff of Federal District Court that Marc Dreier be put away for 145 years. Obviously this is not something you’d expect would make Dreier happy, and you’d be dead right. He’s downright disappointed because once again, the guy’s crimes are being treated like no big deal in light of Bernie Madoff who, from day one, has been stealing MD’s thunder. Sure, Ponzi Boy ripped off a lot of investors for a lot of money. Big whoop. Dreier freaking impersonated executives, staged fake conference calls, and (probably) molested a few hedge fund managers for his scam. Oh, but nobody cared about that once they heard “fifty billion,” did they? And now, once again, no one will get it through their thick skulls that Big D is so much more of a bad ass white collar criminal, and should be punished accordingly. Nothing’s official yet, of course, and Dreier is doing his darndest to impart the gravity of his crimes. Sayeth MD in a personal letter to the judge:
The Power Lunch gang was lamenting the fact that modern porn lacks compelling storylines, thanks to the internet and its log-on and jerk it smut (gone are the days of spank flicks that would start “Mark Haines walks on to the set of Squawk on the Street. His teleprompter is busted. All of a sudden, there’s a knock at the door. “Did someone call for a repairman,” Charlie Gasparino asks). In the interest of research, is Melissa Lee the first CNBC’er you think of when you think of porn?
Just little FYI for anyone in Nevada: Charlie Gasparino is en route to Vegas circa now, Larry Kudlow is meeting him there later. The duo is making the trip supposedly under the guise of business (both are speaking at a conference tomorrow about “the screw-ups of the SEC” and on Friday Gaspo is participating in a mock trial– really– wherein he and a bunch of high school students* will try and convict the top convict of capitalism. CG is playing the role of “star witness” along with Steve Forbes and John Mackey). I don’t think I have to tell you, though, they’re expecting to be shown a good time. Chaz and Kuds will be staying at the Bellagio (they’re going to give Daddy the Rainman suite, with separate beds, supposedly) and are scheduled to dine at Rao’s tonight at 9, Frank Pellegrino being a close friend and associate of CG. Gasparino claims he doesn’t gamble, preferring instead to spend his time at Rehab; you know what Kudlow wants. Prepare yourselves accordingly and if you’ve got any ideas for stuff they just have to do while over there please share it with the group. Sources say CG already has plans to find two waitresses and pull himself a Fredo (or Senator Geary, whichever), so you’ll have to think bigger than that, but in the same genre.
*That’s an assumption on my part, I don’t actually know if the other participants are kids, but it’s a good guess.
