A young Charlie Gasparino, who knew even then he’d one day write the definitive book on this crisis.
Archive for October 2009
At some point this morning, investor relations girl Christine Mancision pulled her LinkedIn profile, presumably because her bosses at Luxor Capital Group didn’t appreciate having their name associated with Mancision’s war on dancing. In reality, it seems as though the real reason was because girlfriend’s got something to hide.
It’s not just Citigroup that is dealing with trust issues. After billions of liar loan issuance helped bring the UK housing market to its knees, the FSA has decided the British cannot be trusted. With close to 1 out of every 2 mortgages made during the height of the bull market for lying two years ago based on the honor system, the FSA is expected to declare that enough is enough and call for a ban on self-cert mortgages. From now on, things are going to be different. Unthinkably high standards are going to be set. How will the nation cope when people walk into a lender and are subjected to the third degree? Even back in 2007, Jon Pain, the FSA’s retail markets managing director, offered a grim view of the new world order to come.
With some forecasts placing crude oil back in the triple digits next year, investors betting on commodity dependent Russia look set to cash in over the medium term. That is unless you’re Hermitage Capital Management and after setting up shop in Moscow in 1996 to focus on the Russian equity market, you’ve allegedly been victimized by some of the alternative methods Russian authorities utilize to the degree where nothing short of a public plea for justice will do. In which case you put together a 10 minute YouTube clip worthy of a Bourne sequel. Like this one.
Caffeine can be a powerful stimulant. It can heighten your awareness and sharpen your concentration. So expectations were probably pretty high when the President’s chief economic advisor had enough Diet Coke in him to keep him awake the entire time during a speech he gave yesterday. From his courtside seats to the economic crisis, Larry Summers has been waiting for that one opportunity to unleash mesmerizing words of economic wisdom. The kind of genius that makes people gasp out loud in amazement. Yesterday was the day.
By all accounts Bernie Madoff’s a pretty mild-mannered guy who loves to laugh and will dance his face off in the right setting. Cross him, however, and he will fuck up your universe. Some unnamed shmo inside the Butner, NC federal prison learned this the hard way last week. Details are scant but the Post reports that Ponzi boy and a fellow inmate were discussing the “state of the market” during free time in the yard. The debate got heated and things escalated quickly. Frustrated with Madoff’s verbal sparring skills, the other guy decided to make this thing physical and pushed Berns, who shoved back “with both hands,” causing his opponent to stumble. Then, when the attacker tried to get up, Madoff “hovered over him red-faced and glaring,” according to eyewitnesses, and the Master of Ponz, now dubbed Bernie “The Bruiser” Madoff was declared the winner. Obviously at this time we need to fill in some missing info.
BofA to Hand Over Documents Related to Its Merrill Deal (WSJ)
The bank apparently reversed its decision to give up the legal advice it got re: acquiring Merrill Lynch in an effort to “pave the way to a settlement of various investigations” and “restore stability” post Ken Lewis announcing he was leaving the building.
Goldman Sachs Downgraded by Meredith Whitney (Bloomberg)
The Dollar Dominatrix downgrades Lloyd and Co. to neutral from her July 13 buy call (the same time she said Goldman Sachs “still has a lot of gas in its tank”).
Third of RBS Coutts staff in Singapore quit (Reuters)
Twenty “key” managers along with 50 support staff have quit due to “bonus prospects” or lack thereof, though a spokesman for RBS would say only that “staff volatility in the private banking industry is not unusual, especially in Asia.”
JPMorgan tries to calm fears over UK (FT)
Employees in London are a bit nervous about the unexpected ousting of Bill Winters so Jamie Dimon and other executives have embarked on a “charm offensive” to let everyone know things are cool.
Regulators Target ‘Naked’ Access (WSJ)
This one comes with a fun ‘how it works’ diagram.
CIT’s Jeffrey Peek To Resign (MarketWatch)
He’s gone as of December 31. “By strengthening CIT’s financial position, the company will advance its bank-centric model and invigorate its market-leading franchises which support the small business and middle market sectors of the economy,” said Peek in a statement.
$$$ Blackstone Calls Bottom of Market; Plans IPOs, Sales [WSJ]
$$$ Maria Bartiromo working the Columbus Day Parade [NYP]
$$$ Get your Madoff Mask [AP]
$$$ Charlie Gasparino: Goldman Tries to Distract Critics From Its Huge Bonuses [CNBC]
$$$ We’re going to mosey on out of here and ‘celebrate the hell out of‘ today’s holiday. See you tomorrow.
“Didn’t [Ralph Cioffi and Matthew Tannin] have a responsibility to stop a panic by saying, ‘Look, we think things are going to be okay here’? Can’t you be scared in an internal email but still feel things are going to be okay and say that to investors?”
After a brief break, prohibition is back. if there is one thing that has worked time and time again in this country, it’s banning people from selling certain goods and services. Where would the alcohol industry be today without the prohibition era? Declaring marijuana illegal has successfully made it one of the West Coast’s largest cash crops to the point where California is toying around with the idea of legalizing it to help stop the fiscal bleeding. And now Joe Stiglitz would like to add derivatives to that distinguished list.
