$$$ Citi Management Gets Generally Good Review (“strong overall marks to Citigroup’s management team and to Mr. Pandit in particular, according to the people familiar with the matter.”) [WSJ]
$$$ BofA has narrowed down its internal list of candidates to two names, neither of which are Krawcheck, which must tear her up inside, considering how badly she wants the job, even though some people are here to tell you she’d be an awful choice. [WSJ, Forbes]
$$$ Matthew Goldstein: Fed Becomes Reluctant Landlord [Reuters]
$$$ Wall Street casualties: where are they now? [CNN Money]
Archive for October 2009
Joe Grano may believe Bobby Benmosche is worth more than Alex Rodriguez, but if history repeats itself, A-Rod may do more for the City of New York in the next three weeks than Benmosche likely will for years to come. With the best record in baseball and the American League’s victory in the All-Star game this year, the Bronx Bombers are in a position to bring post-season baseball (and money) back to New York in a big way.
According to the Economic Development Corporation, each home playoff game at Yankee Stadium provides a total economic benefit of approximately $11.9 million to the city. But based on the regular season, it looks like the Yankees should sail right through to the World Series. Enter A-Rod and his recent post-season performance. Should #13 continue his October ways, and the Yankees be forced go the distance in each series, the club will play 11 home games translating into just under $131 million in economic benefit. So while Yankee fans would love to see Rodriguez break-out during the playoffs and lead the team to three consecutive series sweeps, many New Yorkers may be secretly hoping it’ll be business as usual.
Yankees Home Playoff Games Worth $6.7 Million to NYC Businesses [Bloomberg]
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Some of the advances in structured product technology over the past decade have truly tested the limits of comprehension of both man and machine. As soon as one leveraged instrument was created, somebody else was figuring out a way to take leverage on that leverage. But investment banks and hedge funds had some of the most high-powered computers and statistical minds on the case at each step of the way. So how do you know when you’ve gone too far? Where do you draw the line in the sand between useful investment tool and mathematical video game? John Thain has an idea.
Pope Benedict and his investment team at Body of Christ Capital are steadfastly sticking to their message that you’re all going to burn in hell but the PMs over at the Church of England have apparently had a change of heart. Though Archbishop Rowan Williams just last month expressed discontent that the financial sinners in his flock had yet to repent and last year Archbishop John Sentamu described short selling as “bank robbery,” they’ve decided to go on record saying these hedge fund guys? Not as bad as we thought. In fact, the C of E is now lobbying for the industry, after being tipped off to the fact that proposals to regulate hedge funds might adversely affect their bottom line.
The Church Commissioners, who manage the £4.4 billion assets — down from £5.7 billion in 2007 — of the established Church, have criticised European proposals to regulate hedge funds.
A new European Union directive designed to limit the way hedge funds are managed restricts the Church’s ability to make money, the Church’s investment managers warn.
Yesterday we discussed the fact that Andrew Ross Sorkin’s new book mentions that during last year’s crisis, Lloyd Blankfein started boycotting CNBC (by turning his TV off), on account of “rumor-mongering” by Charlie Gasparino. Chaz conceded that while LB might’ve been unhappy with his ace reporting, the Goldman CEO never uttered the filthy term in connection with CG’s name, or even thought it. Knowing Gaspo, we figured he’d solve this problem the way he solves all his problems, namely with the busting of knee caps and the suggestion that ARS is the perfect size to fit in the trunk of a Buick. Unfortunately he’s apparently been advised to keep the brass knuckles in his dresser drawer for the time being, and has instead sought legal counsel to deal with “this guy.”
Floyd Money Mayweather just won his most recent fight by technical knock-out. The opponent: Scott Wapner. In the interview, Wapner came at Pretty Boy Floyd three times for his opinion on the overall business of boxing and three times the welterweight ducked out of the way and gave SW a mean cross to remind him what real focus of the discussion should be.
Round 1:
SW: Your last three fights generated 300 million dollars. What does that say about the current business of boxing?
FM: Boxing is something I love to do. What more can I say?
Round 2:
SW: But what does that say about the business of the sport right now that you do a million pay-per-view buys at a time when people, including myself, have questioned the status of the sport right now?
FM: Lot of hard work. A lot of hard work and smart business people that I have around me.
Round 3:
SW: Is the sport in a good place right now? Everybody is feeling the effect of this economy.
FM: I think I’m the only fighter, athlete, right now that gets 100% of his own money. So that is what I bring to the table.
And with that, the fight was effectively over and Scott Wapner is still waiting for an answer to his question. Maybe another attempt with a certain somebody not afraid to take any question head on is in order.
Should you encounter your future self anytime soon, the Treasury Secretary believes you may have trouble recognizing yourself. The American of the future will be a more financially disciplined individual. Gone are the days of spending money you don’t have. Forget about leveraging yourself to “afford” a lifestyle of luxury. Things are going to be different here and the world is simply going to have to deal with it.
“Everyone is going to have to come to terms with the fact that we are going to save more in the United States,” Geithner said in an interview with German weekly Die Zeit
So that it’s it then. We are suddenly going to flip the switch that has been set on ‘spend’ for a generation to ‘save’. Seems a bit ambitious but if TG believes that we can turn last year’s economic lemon into lemonade by changing the way we think about money and making sure there is more coming in than going out in the future, maybe it’s worth giving it a try. Show us the way Timmy. Show us how actions speak louder than words and how the government will provide a good example for all Americans to follow.
Citi has taken a lot of shit for (potentially) paying commodities trader Andrew “C” Hall a hundred million dollar bonus and you know what? They’re sick of it. Unfortunately there doesn’t seem to be much Vikram and Co can do to stop the relentless rounds of “you suck,” short of selling the whole damn thing. So, that’s exactly what they’re going to do. Just get rid of it. Nevermind that P-ro has been consistently profitable for 15 years. The bitching is too much to take. Moving forward, this will be the tactic Citi plans to take to solve all its problems. Got complaint about the bank? Air it in a public forum and it’s gone. Don’t care for Vikram? No problemo, he’s done.
Citigroup is working on a sale of its controversial commodities unit in a move that could raise hundreds of millions of dollars and deflect political anger over a potential $100m pay-out for its star trader Andrew Hall.
People close to the situation said that, after debating options such as divesting part of the unit, called Phibro, opening it up to outside investors or spinning it off, Citi’s executives favoured a complete divestment of the commodity trading division.
