Archive for October 2009

berniebenz.pngWere thinking to yourself at some point over the weekend that it’d be pretty sweet to roll up to the office (or a date, whichever) in Bernie’s Benz? Well too slow to the draw, hombres. The Ponz Master’s ride, which went to auction October 23, has been spoken for.

A New Jersey man scooped up the jailed Ponzi schemer’s ride for the cut-rate price of $14,250 on Friday after it went on the block at a U.S. Marshal Service auction in East Brunswick, N.J.
“I enjoy the historical significance of the car,” said proud new owner Gregory Przybylski. “I just don’t know if it’s good or bad history.”

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Ken Lewis 2.jpgGiven the nearly daily lawsuits filed against Bank of America, Ken Lewis must be chomping at the bit to disassociate himself from his current employer. Having already invoked the outrage of a diverse group of people- from Andrew Cuomo to a disgruntled credit card customer to the handicapped to members of the military- BofA has now managed to go too far with a little old lady (and her husband). A BAC broker may have had little regard for the value of the assets he put an 82-year old retiree and his 75-year old wife into, but he did recognize the value of one thing, their trust. While brokers at other institutions have been sued for convincing senior citizens to take the plunge into the world of illiquid investments by some sweet talking and the occasional free lunch, the BAC broker in question went way above and beyond the call to fleece the Florida couple.

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rajwallstreet.jpgSo Galleon employees are still rolling up to the office, which makes sense given that Raj has shot down the “baseless” allegations that he did anything wrong, promised the firm that this thing is far from over, and sworn that Galleon will rise again. Nevertheless, things have slowed down a bit from the usual pace pre-shit hitting the fan, and with their resumes already updated, Team G apparently needs some new ways to pass the time.

Had drinks with a friend of mine at Galleon– they are getting paid to show up but the traders are all just watching movies at their desks. DB should send them copies of Boiler Room and Wall Street to pass the time.

We should! And we would, if we didn’t think you guys could come up with some more out of the box titles, since they’ve probably already watched the above, many times (possibly as required viewing for working at the fund). If we want to go topical there’s Shawshank, The Fugitive and Harold & Kumar Escape from Guantanamo Bay. But why go topical when they probably want to get their minds of the news off the day? In which case, its really just a matter of taste. How about the entire Made series to date, including the episode “I want to be a model,” in which the subject was told by her coach, “Girl, I’m going to eat you up on the runway,” a line oft quoted by Raj while on the desk? Figure it out by noon and we’ll messenger something over, with snacks.

Putin_Pigs.jpgRussia 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.

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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]

  • 26 Oct 2009 at 8:00 AM

Opening Bell: 10.26.09

Raj-Rajaratnam.jpgGalleon 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.

  • 23 Oct 2009 at 5:17 PM

Write-Offs: 10.23.09

$$$ CIT CEO’s Wife Very Angry at Obama for Cutting Wall Street Salaries [NYM]
$$$ ICAP US Unit Receives “Wells” Notice From SEC [NASDAQ]
$$$ Professor Bartiromo [NYP]
$$$ CHUPI (NOT) IN CRISIS: Banker Buys 2nd Palazzo Apartment [Curbed]
$$$ Job of the Week: Bentley Associates Needs a Managing Director. You. [DB Career Center]
$$$ BofA’s Countrywide to Get Subpoena Over VIP Program [CNBC]