It’s just under a million which might not seem like that much but I can think of a certain someone who wouldn’t thumb his nose at a mill right about now. The Observer reports that Bank of America has sold its pad at the Time Warner Center, which will mean one of you will have to put Ken Lewis up for the night when he flies up to NYC for one last hurrah as CEO, which will take place the entire month of December.
On Friday, just after Bank of America announced a billion-dollar loss in the third quarter, a deed in city records showed that the massive firm had sold off its corporate apartment in the Time Warner Center for $7.2 million. On the bright side, it cost $6.35 million to buy three years ago.
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Who is “CW,” the FBI’s confidential witness? Or should we be asking where is Galleon’s CEO and co-founder Gary Rosenbach in these charges? Rosenbach co-founded Galleon in 1997 and was listed as a co-portfolio manager in the main Galleon International fund.
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So, uh, how exciting is that!
But she shook it off, ’cause what the odds, right? Anyway, from the complaint against Danielle Chiesi and Mark Kurland of Newcastle Partners LP along with the others charged in the insider trading case of the day, a few recorded phone conversations. I haven’t gone through all of them yet but some opening thoughts are 1) doesn’t look good! 2) Chiesi held some meetings re: insider trading at her mom’s house, which is not cool 3) Danielle kind of has a filthy mouth. Every other word out her is “fuck” or “shit” (example: “I’m meeting him at my fucking mother’s house on Sunday”). Of course, she probably would’ve cleaned it up if she’d known people were listening but you know, hindsight. Next time!
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As we’ve discussed before, Nomura’s acquisition of Lehman’s internal operations has not gone as smoothly as everyone had hoped. The Lehman employees are being very difficult, all but refusing to submit to their new employer’s way of doing things. Particularly the women. Despite being told that short sleeves are not acceptable, as they are the clothes of whores, these Lehman ladies apparently spent the summer just absolutely slutting it up. I’m talking sleeveless tops. I’m talking silk shirts. I’m talking bright nail polish. Well no more! The summer’s over, and you’ve had your kicks. It’s time to lock it up and know what else? This goes for any of the men straddling the line between “upstanding businessman” and gigolo. And don’t give me this shit that you couldn’t understand the memo. One short sleeve, one red nail– and I mean one– and you’re gone.
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Supposedly the FBI was tipped off that Galleon founder Raj Rajaratnam was conducting a little illegal biz by some traders who were none too happy with Raj-Raj, on account of being fired. Also, he apparently used to brag about his income to the now defunct Trader Monthly, which should be reason enough to lock him up (kidding? But also serious.) From former TM reporter Teri Buhl:
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David Faber reports Raj Rajaratnam has been charged in a $20 million insider trading case, which is probably upsetting regardless but stings that much more given that the Journal boldly claimed in February that Galleon would be among a group of A-team hedge funds not going under in the foreseeable future. (This news will also rain on the parade Raj-Raj was likely throwing for himself to celebrate being named the 236th richest person in America.) The FBI had apparently been tapping Raj’s cell phone, so hopefully we’ll get some good convos out of that.
Per the Journal, others charged include:
Rajiv Goel, director in strategic investments at Intel Corp.’s investment arm; Anil Kumar, a director at global management-consulting firm McKinsey & Co.; Danielle Chiesi and Mark Kurland of Newcastle Partners LP, the one-time equity hedge-fund group at Bear Stearns Asset Management Inc.; and Robert Moffat, a senior vice president at International Business Machines Corp.
Here’s the complaint, via Dealbook:
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The thing about being part of an elite group of fuck-up bank CEO’s who got fired before the shit really got bad is that it used to mean something. First, that even though you got canned, you still walked away with enough coin* that you’d never have to worry about money, and, more to the point, about being reduced to rubbing shoulders with peasants. Second, that you didn’t have anyone to answer to! Whereas as a certain Cherubic-looking Jew has to make sure he’s not upsetting anyone by flying private, and even guys like Dick Fuld still have to sort of walk on egg-shells, you who got axed eons ago should be able to do what you want, when you want. No apologies. So this is disturbing, to say the least:
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Bank of America Announces Third-Quarter Net Loss of $1.0 Billion (BofA)
Ken Lewis not defeated: “The company’s core performance was impacted by a number of non-core items,” said Lewis. “The market’s improved view of Bank of America’s credit cost the company due to non-cash marks on liabilities. “Excluding those items, our revenue continued to hold up well,” the Bank of America CEO said. “Obviously, credit costs remain high, and that is our major financial challenge going forward. However, we are heartened by early positive signs, such as the leveling of delinquencies among our credit card customers.”
Bruce Wasserstein’s Death Payout (WSJ)
$188 million from 4.4 million restricted stock units accumulated since 2005.
Soros Says U.S. Economy Will Be Drag on World Growth (Reuters)
Current “currency arrangements” are “fraught with danger,” the globalization of financial markets was built on a “false pretense,” and we need a global regulator.
Lloyds to Sell Halifax Estate Agency (Reuters)
For a grand total of: one pound.
Bonuses Put Goldman in Public Relations Bind (NYT)
Hey did you hear? Some people are not happy that Goldman is probably going to pay its employees some huge ass bonuses.
SEC Said to Hire Goldman’s Adam Storch to Be Chief Operating Officer (Bloomberg)
The 29 year-old COO, who started Oct. 13, has “a great deal of background” in technology and managing processes and the pace of work, Robert Khuzami, head of enforcement, said yesterday in Washington. Storch, who worked since 2004 in a unit at Goldman Sachs that reviewed contracts and transactions for signs of fraud, will be charged with making the unit more efficient.
$$$ MBA students rebuilding credibility of businesspeople one underwear company at a time. [WSJ]
$$$ Goldman Sachs’ (too much) money problems [The Deal]
$$$ NYT Editorial approves sale of Phibro, which lost money one day in 1991. [NYT]
$$$ Ex-Goldman fund manager Carhart to launch firm [Reuters]
Kenny Boy’s pay package for 2009 will consist of $0 in salary, $0 in bonus and a bill. Not only will KL see two bagels for his efforts this year, but the pay czar is making him pay back the $1 million plus he’s already earned.
A Bank of America spokesman said Mr. Lewis voluntarily agreed to the deal, which was finalized Thursday.
“Mr. Feinberg suggested that Ken Lewis should take no compensation for 2009. Mr. Lewis agreed. Mr. Lewis added that he felt it was not in the best interest of Bank of America for him to get involved in a dispute with the paymaster,” the spokesman said.
Outgoing BofA CEO Ken Lewis to Receive No Salary, Bonus for 2009 [WSJ]
