Were you a member of an elite group of individuals taken before their time known as the Lehman Brothers associate class of 2008? Were you robbed of the chance to toil under the Gorilla for more than a few weeks because oops the firm went out of business? (And speaking of that: do you blame yourself? Dick Fuld certainly does.) Those $40k signing bonuses you got and probably already spent are going to need to be paid back, ASAP.
The requests are allegedly coming from PricewaterhouseCoopers, which is administering Lehman’s estate in the UK. “More than 60% of my class received this letter around two weeks ago,” says one former Lehman associate. “We’re seeking legal opinions on whether we have to pay it back.”
The Dollar Dominatrix turns the big 4-0 today. Apparently there’s going to be a big bash at the MDubs Advisory Group later today set to include—spoiler alert– a Vikram-shaped piñata. In the meantime, let’s put our heads together and come up with a gift from DB. What do you get for the Dom who has everything? If you were going to say cat o’ nine tails, that’s out– Lloyd’s already called dibs.
Goldman Holders Miffed At Bonuses (WSJ)
Squid on Squid violence: “Some of the largest shareholders in Goldman Sachs have urged the Wall Street firm to reduce the size of its bonus pool, arguing that it should pass along more of its blockbuster earnings to investors, according to people familiar with the situation. Some major Goldman shareholders also are concerned about a little-noticed change in the company’s financial statements that increased the firm’s total head count by adding temporary employees and consultants. The change reduced per-employee compensation, making it look like Goldman employees earn less than they actually do.” Harvard Poker Pro Says Texas Hold ‘Em Can Teach Traders to Fold (Bloomberg)
“Someone who has made a successful living as a poker player for a few years would more likely be a good trader than someone who hasn’t,” said Aaron Brown, a 53-year-old former poker pro who is now a risk manager at AQR. Lampert’s Sears Narrows Its Loss as Gap’s Profit Increases 25% (NYT)
This calls for a pizza party, on Eddie. SEC Told to Improve Ways It Chooses Probe Targets (AP)
A report released by the office of Inspector General David Kotz proposes new requirements that the SEC’s inspections office examine databases and documents related to investment advisers that may be inspected. GM’s Chairman Seeks Focus on Quality (WSJ)
Edward Whitacre wants to know why people think GM cars suck. Oregon Democrat DeFazio Calls for Geithner’s Resignation (Real Time Economics)
“I just do not feel that his orientation is other than Wall Street, and has not been other than Wall Street, and will not be other than Wall Street. And quite frankly all the gambling on Wall Street is doing nothing to put people back to work in America and rebuild our economy.”
Castle Hallenstein: Home Sweet HomeCitigroup’s former $100 million man has been freed from the tyranny of life as a serf under Czar Kenneth I. But if he wants to keep the nine-figure bonus checks rolling in under his new masters at Occidental Petroleum, he’s gonna need some new patrons.
Now, Citi chose to sell Hall’s business, Phibro, to Occidental for a few nickels rather than simply spin it off as an independent hedge fund. Still, Hall knows where the money is (a lot of it is hidden in the keep of his German castle) and he’s asked the Blackstone Group to find it.
The holiday party was canceled last year but unlike certain other banks, terrified at the backlash that would result from the sight of their employees enjoying themselves over shrimp puffs, JPM is up to get down with Christ and corporate groping. A few employees are miffed at the fact that they were informed the investment bank’s party will take place in the cafeteria of 270 Park but the point is, it’s happening. JPM’ers should also give thanks that they have not been barred from holding self-funded year-end celebrations.
In the New York magazine profile earlier this month, Andrew Ross Sorkin said that one of the ways he’s able to land big sources is by not being “adversarial or coming to the table with an ax to grind.” The piece also claimed that many of ARS’s colleagues at the Times think it has to do with the fact that he’s too buddy-buddy with his high-profile pals, and goes way too easy on them in print. Not true, says Joe Scarborough. Not only is it a lie that Sorkin’s reporting process entails calling up CEO’s and asking for their side of the story, scheduling a meeting and suggesting he wait outside while a PR person asks some pre-approved questions, the answers of which are transcribed into a column, but these guys are horrified of ARS. So much so, Scarborough said in a radio show with Sorkin this morning, that just being told Times-boy is on the line causes them to “lose control of their bowels.”
Scarborough also claims that besides literally scaring the shit out of these guys, Sorkin is “so frightening” that they had to come to his book party and “bow down” to him. We didn’t see any head bobbing at the Too Big To Fail soiree but perhaps it went on in a backroom. Anywho, let’s do an informal poll: do Jamie Dimon, John Mack, Ken Griffin, Billy Ackman et al soil themselves at the sound of the letters “A-R-S?” And what are we to infer from the fact that Blankfein was a no show to Sorkin’s big night?
The ranks of the elect are growing: Goldman Sachs has named 272 new managing directors.
Apotheosis for God’s chosen few is scheduled for New Year’s Day. Thereafter, it’s all milk, honey and million-dollar bonuses, but they’ve earned it, so sayeth the Prophet Blankfein.
Writeth the prophet in the e-mail announcing the promotions, the newly-minted MDs have richly earned their place in Heaven, for they are among the Blessed who helped preserve God’s bank during the late difficulties, and will “be integral to our service to clients, the strength of our reputation and the long-term success of the firm.”
Yea. Let their names be recorded in the Book of Life. Goldman Sachs Names 272 Managing Directors For Next Year [Dow Jones via CNN Money] Update: Full list (courtesy of FINalternatives) after the jump.
The luckiest man on earthHere at Dealbreaker, ouropinionofBankofAmericaisprettyclear. The company is a dysfunctional mess and, despite being the biggest bank in the country, can’t seem to find anyone interested in taking its top job.
Those incorrigible contrarians at Breakingviews have a different take on the Worst Job on Wall Street.
There may actually be no better job in finance than the hot-seat of BofA.
Interesting. Go on.
Regulators are hardly friendly with BofA or Ken Lewis, its outgoing chief. Its board needs an overhaul, a senior management team of big shots is already in place, and there’s huge work to be done integrating its many poorly-timed acquisitions.
If he gets asked to leave, fine, great even. It’s not even really a secret at this point that he wants to go (why do you think he stopped trying to sell his house?). But if anyone here thinks that they can bully him into leaving cause he’s some sort of push over, think again! The elven Treasury Secretary is not afraid of any of you or the dark, he is not a (total) puss and? He’s got something of a sassy side.
At a Joint Economic Committee hearing in Congress, in which House and Senate lawmakers sit on a panel, Rep. Kevin Brady opened up his questioning by telling Mr. Geithner Republicans, Democrats, and the American people had lost confidence in the Treasury Secretary and asked him to resign.
“It is a great privilege to serve this president,” Mr. Geithner responded. “I agree with almost nothing you said.”
And if you want to talk about confidence? When people, The People, think about Tim Geithner? They think confidence shooting out of every orifice.
Given their well-known incorruptibility and infallibility, is it any wonder that ratings agencies would take exception to any suggestion that they might do wrong?
Well, that’s exactly what those outback yahoos in Australia seem to be implying. So Moody’s Investors Service and Standard & Poor’s are picking up (most of) their toys and going home, withdrawing their applications to offer corporate debt ratings. The lily-white ratings agencies object to a new rule, coming into force on Jan 1., that would turn over disputes between the all-knowing and their idiot retail investor clients to a financial ombudsman.
But that “would effectively be second-guessing S&P’s analysts,” S&P cries! “This would ultimately create investor confusion and harm financial markets.” And S&P has never done anything like that.
