Russia may wind up with the most broadly diversified banks in the world by complete accident. While banks in the US and Europe can look forward to seizing more conventional collateral assets such as houses when loan recipients run into trouble, Russian banks may truly wind up becoming banking supermarkets.
When Russian billionaire Alexander Lebedev’sOAO National Reserve Bank seized collateral offered against a loan from a cash-strapped borrower, a health quarantine was slapped on the security: 40,450 pigs.
“We had a court decision to take away the collateral, which is the pigs,” Lebedev, 49, said in an interview in Moscow.
With some estimates placing the level of loans secured by “strange assets” at state banks at close to 20%, it’s not just tens of thousands of pigs Russian banks need to make space for.
What has Neel Kashkari been up to lately? Chopping wood, mostly, in attempt to “decompress” from the stress of last year, up at a “secluded mountain cabin” in California. Getting away from it all has helped Hank Paulson’s little buddy center himself and offered some serious time for reflection. And up there, in the woods, decked out in flannel, know what he’s reflected on a whole lot? The fact that his former employer, who will not be name-checked at this time for security purposes, is full of shit. (Leaving names out of this on the off-chance Kash-K decides he wants to return to the golden ball pit.)
“Every single Wall Street firm, despite their protest today, every single one benefited from our actions,” he said. “And when they get up there and say, ‘Well, we didn’t need it,’ that’s bull.
“They did need it. And they’re all happy with the actions that we took, and they need to show restraint today.”
As for you, Representative Cummings, why don’t you come out to my cabin and we’ll settle once and for all who the chump is? Let’s see your clippers. The Economic Bomb That Didn’t Drop [NYT via NYM]
Galleon Wiretaps Rattle Hedge Funds as Insider Trading Targeted (Bloomberg)
“The word wiretap strikes fear in the hearts of everyone, even the innocent,” said Brad Balter, who runs Balter Capital Management LLC, a Boston-based firm that allocates clients’ money to hedge funds. Madoff colleague Picower found dead Palm Beach pool (Palm Beach Post)
“I do feel badly a man died,” said Ronnie Sue Ambrosino, a former Delray Beach resident who lost her life savings to Madoff. “But it’s another clue we’ll never have. Madoff pleaded guilty and didn’t go to trial. And now Picower dies. It’s a little ironic that we’re never going to find out the truth.” The Picowers, according to attorneys investigating Madoff’s financial empire, were part of the Ponzi scheme for more than 20 years. They and their daughter, Gabrielle, made more than $5 billion in fictitious profits, according to a complaint that was filed as part of federal efforts to recover money for the victims of Madoff’s scheme. Fund to Focus On Role Of Women (FT)
The Women’s Leadership Fund, started by Zurich-based Naissance Capital, hopes to invest up to $2bn (£1.2bn) and take activist positions in companies with few or no women in executive or board roles. Now with the are you trying to convince us or yourselves questions: “Is there an edge to be gained in investing in these kind of companies? We think so, and we’re the first to do it,” said Daniel Tudor, the fund’s project manager. Billionaire Hedges Bet on Auction House (NYT)
SAC Capital has sold its 6 percent stake in Sotheby’s. Did this have to do with a dispute over people getting their greasy sandwiches near a certain someone’s art? We like to think so. Probe Widening In Galleon Case (WSJ)
The Journal reports that Richard Grodin’s Quadrum Capital has been subpoenaed for its trading records, and also that the fund was closed the week before last (without giving Dealbreaker credit for being the ones to report that fact days earlier, plus Grodin’s ties to Galleon cooperating witness Choo Beng Lee, etc). Moffat’s Galleon Arrest Stuns IBMers Who Recall Sumo Suit, Kilt (Bloomberg)
Bob Moffat is going to be missed big time: “To boost employee morale, according to a former colleague, he once told workers in the Raleigh office that if the division turned a profit in one quarter, he would wear a kilt at a company event. When it did, he kept his promise. He once dressed up in a sumo-wrestler suit at a conference. While onstage at an another event, he tore up a speech a communications executive had written, saying he preferred to speak off-the-cuff.” Learn To Love Insider Trading (WSJ)
A certain Sri Lankan is two steps ahead of you.
It’s been a while since Ken Lewis and the phrase ‘a good example’ have been used in the same sentence. After a rough couple of months, KL has been declared a model citizen of sorts once again. This time by Ken Feinberg. When pondering the question of which CEO had excelled in the areas of interest for compensation clawbacks, the Pay Czar was quick to nominate Kenny boy.
“There may be situations where, you want a good example, is the CEO for Bank of America, where we thought it important to claw back,” Feinberg told reporters after speaking at George Washington University Law School.
But KF has tried to make it clear that he would invoke the power of the claw only in rare cases. What exactly does a former Banker of the Year have to do to warrant such a severe penalty? BAC has cornered the market on neither admitting nor denying any wrongdoing. You can’t go after Ken Lewis just because. You need a good reason. So Ken Feinberg, exactly what warrants singling KL out?
Have you ever wanted to learn how to kill a person with your bare hands, as a matter of self-defense or just cause? Are you going to be in Vegas the weekend of the 14th? I am and I thought we could take this class together, which comes highly recommended by the “senior staff” at Goldman.*
Good afternoon,
Las Vegas’ Tim Larkin is teaching Investment Bankers ‘How to Kill’ as a method of self defence at a closed-venue in Las Vegas on 14th and 15th November. He has taught senior staff of Goldman Sachs, JP Morgan, Deutche Bank and Credit Suisse and also Scotland Yard.
It looks like the secret location of the hundreds of billions of supposedly well hidden assets isn’t so secret after all. The Italian tax amnesty program has been pretty successful so far in bringing the hidden fortunes of the country’s wealthy citizens back inside its borders. Business is good. So good in fact that Italian authorities are taking the opportunity to strike while the iron is hot and go for the mother lode. But authorities around the world have gone on at length about the difficulties involved in locating the piles of cash. They could be in any number of places. Including right at their doorstep.
Namely, did Ace Greenberg’s million dollar donation in 1998 to New York City hospitals, which paid for Viagra prescriptions for homeless men, reflect poorly or favorably on Bear Stearns? JC ponders this and other questions on the subject of the down on their luck getting it up via spokesman Charlie Gasparino, an expert on the sex habits of the destitute, in The Sell-Out:
Ace would always be the guy who marched to his own drumbeat. It’s what made him a media darling; the press loved his mannerisms, from the magic tricks he performed on the trading desk to the fact that he answered his own telephone calls. Cayne saw the dark side of Greenberg’s personality; it’s why he never doubted the sexual harassment story.
As crazy as Cayne seemed, Greeberg could match him in being off the wall. It was, after all, Greeberg who had once donated $1 million to a hospital so homeless men could enjoy sex by having access to free Viagra. He had made a splash of it, making the announcement in the New York Times without alerting Cayne, who first heard it when he picked up the paper in the morning and nearly hit the ceiling.
“Are you fucking kidding?” Cayne screamed at Greenberg after reading the story.
For those who are worried that the bailouts and seemingly endless government support and safety nets are pushing the US closer to a Scandinavian welfare state model where everything is shared, Norway provides some context for just how much farther we would need to go. For example, calls for increased transparency in the US typically revolve around issues such as policy clarification or greater disclosure detail. The Norwegian equivalent is getting a more granular breakdown of the your neighbors’ income streams.
To: Dealbreaker
From: [redacted]
Subject: Shia LaBeouf
Most unhappy with Mr. LaBeouf yesterday. He was filming in front of a co-op at 66th and Park. My daughter is ten and between takes the crew was nice enough to let her get close to him. He was sitting in a red Prius looking very very nervous about his next scene which was difficult- sitting in the passenger seat of a car as it drove up to the co-op. Anyway, we got about 10 feet from him, my daughter waved, smiled and he just sat there completely mortified to realize his fan base is a bunch of tweens. I actually think I saw him sweating, the little runt. How can this teenage guy (who weighs 95 pounds) represent Wall Street?! Very puzzling casting decision.
As has been pretty wellestablished, if you want to work in this business, you’d best have your own rap to speak of. A bunch of MIT b-school students made this one, based on the boys on a motherfucking boat. CFA candidates, the gauntlet has been thrown down.
“I wouldn’t begin to say how much money you should make on Wall Street,” Mr. Feinberg said in an interview last week, as he prepared to slash pay for the top 25 earners at seven firms that received significant government aid. “I’ve never worked on Wall Street. I don’t claim to know the ethos of Wall Street.”
Russia may wind up with the most broadly diversified banks in the world by complete accident. While banks in the US and Europe can look forward to seizing more conventional collateral assets such as houses when loan recipients run into trouble, Russian banks may truly wind up becoming banking supermarkets.
