Timmy G, who, as we know is getting really frustrated with the whole AIG bailout storyline, apparently had a nice convo with Warren Buffett, Jamie D. and Lloyd on the day AIG was bailed out, at least according to phone logs submitted by the Fed in response to a subpoena last week from the House Oversight and Government Reform Committee.
Tim- who will testify next week- is maintaining, he never “looked at AIG memos” and that he “wasn’t involved in any AIG decisions.” Actually, he doesn’t even have any idea what AIG is. That talk with the big boys? Wasn’t him on the phone. Now leave him alone. Go harass Ben.
Archive for January 2010
I don’t know how many of you are currently looking for new jobs and suffering through the painful process of figuring out what to say in your cover letter but if I may offer a suggestion– take a page from one ambitious li’l college kid’s playabook. He knew he wanted to work at Goldman Sachs and rather than temper his deep burning desire he shouted it LOUD AND PROUD. He wants to live and bleed Goldman Sachs and he doesn’t care who knows it! He’s not afraid to say, “Lloyd I will lay down in the road for you. I will kill a man in cold blood for you. I will do whatever it takes to get in at Goldman Sachs– no questions asked– UNTIL MY HEART STOPS BEATING.” Even as he writes this letter he’s getting calls and text messages from people asking what stocks he puts his money in today and where they should put it tomorrow– he’s got the street cred and the seed capital to start his own shop over summer break but he’s not gonna cause he wants to do it for you Lloyd! For both of you.
The following post is by InfiniteGuest, a regular reader and frequent commenter.
It’s earnings season, it’s bonus time, and now that the Angelides Commission has begun holding hearings and legislation is under way to form a permanent resolution authority for troubled financial institutions, the related topics of what caused the financial crisis and how to handle the next one have garnered fresh attention, to put it mildly. Juxtaposed against the sluggish real economy, the robust health of our financial sector makes it an easier target than ever for enemies of every stripe. Yesterday, under acute political pressure, President Obama used the bully pulpit to blame the financial crisis on the greed of financiers unfettered by ill-advised deregulation, advocating among other things the reinstatement of Glass-Steagall. The Angelides Commission will need a strong constitution to keep from being unduly influenced in their investigation by the President’s statements. He has identified the causes, he’s found a solution, and he is, after all, the most powerful man on earth. One could be forgiven for believing that the final narrative of the Angelides Commission has already been written even though the inquiry has barely begun.
Prince Alwaleed was on Charlie Rose last night to discuss a whole mess of topics. Obviously he had to get the pink pony out of the way first which was that yes, he’s spoken to Vikram and made it clear that the honeymoon is over and Vickle’s has gotta make 2010 the year he moves his ass on making this Citi thing work (to that end, at various intervals throughout the day, a recording of the Prince shouting “Move your ass, Mr. Vikram! Hustle! Hustle those buns!” will be played over the loudspeaker in VP’s executive suite, scaring the shit out of people not expecting it). Moving onto more important issues was whether or not Big Al had seen Avatar, and what he thought of it. Here’s what he told Chuck:
Sources tell us that Timmy is “not enthused” with the proposals, and getting “increasingly frustrated and overwhelmed.” But let’s actually put some words in the Treasury Secretary’s mouth. Paul Krugman will start:
Various news reports that Tim Geithner is privately opposed to the new Obama bank plan — which isn’t that much of a surprise, but he should not be talking about it (if he is). What we do have is this PBS interview, in which he certainly isn’t doing much to back the concept. The correct answer to “In essence are you saying that big banks need to be broken up” is “Yes”; add some qualifiers if necessary — “we’re not talking about a sudden disruption, but about new rules of the game, but the eventual goal is smaller banks that aren’t engaged in inappropriate activities” or something like that.
As it was, Geithner might as well have had a chyron underneath as he spoke, with the words DON’T WORRY, WE’RE NOT GOING TO TAKE ANY REAL ACTION.
I’d like to put the news of the day on hold momentarily so we can get real for two and ask a serious question. Which one of you is going to spend your bonus on Sully’s Ride? ‘Cause the Captain’s US Airways Airbus 320 is being auctioned off now through March 27. There’s no minimum bid and you should at least consider it. On the fence? Get your ass out to New Jersey, where it’s being stored, and have a look under the hood.
Sully’s ‘Miracle on the Hudson’ Airbus For Sale [via Daily Intel]
Neither Warren Buffett nor myself think or want it to come to this (the sex machine and I like our Fed Chairmen soft-spoken, bearded, and outfitted by Jos A. Bank) but some people– Barbara Boxer, Byron Dorgan, Russ Feingold– have forced our hand. In the event Benj is not in fact confirmed, who should take over his post? And what would the Beard do next? Back to playing D&D with his academics? We already know Greenspan’s rescinded his letters of recommendation for the cushy lecture circuit on account of Bernankle’s attempt to pin some of the blame for the shit that’s gone down on The Maestro.
Like many of you, Mike Bloomberg was listening with rapt attention as President Obama laid out his plan for how the banks should run, moving forward. And, in response, he has some ideas of his own, for Washington. First off, and this is just a proposal, nothing’s set in stone yet– go fuck yourselves. Second, you get our prop desks, bonuses etc, we take your salaries. Sound good? Like a fun tit-for-tat type thing? Would really like to get your thoughts on this one.
President Barack Obama’s demand Thursday that Congress clamp down on the size of banks and their investments got major blowback from New York City Mayor Michael Bloomberg, who said it could cause layoffs and hurt the city. Mayor Bloomberg said the banks and Wall Street are part of the bedrock of the city’s economy, and efforts to slash their business just means less tax revenue for the city, which brings up the dreaded “L” word. “I just find it sort of ironic that congressmen, senators who make more than double what the average person working in finance makes — they’re the rich ones and they’re talking about trying to restrict bonuses and taxing the industries that are our lifeblood,” Bloomberg said.
He added that if bankers have to put their bonuses in escrow until deals they made pan out, perhaps Congress should do the same with its own salaries.
Now, you can think what you want about the Obama proposals, but there is something I find more than strange. What is happening about what caused the crisis in the first place and why is there no mention of it anywhere anymore in none on of the proposals?
Maybe I missed something here, and maybe someone can help me understand, but as far as I can remember, what was at the root of the problem, were OTC derivatives and securitized products based on bad loans. Oh wait, we did have a program to solve that and relieve banks from those “toxic assets” off their balance sheets: the Troubled Asset Relief Program, our beloved TARP. We kinda strayed away from its original intent, no?
Obama’s Move to Limit ‘Reckless Risks’ Has Skeptics (NYT)
“I am somewhat skeptical about how much the federal government can actually regulate,” said John C. Bogle, the founder of Vanguard. “We need to try, but all the lawyers and geniuses on Wall Street are going to figure out ways to get around everything.”
Seven Indicted in Galleon Insider Trading Case (Reuters)
Among the newly indicted defendants: “Craig Drimal, 53, whom prosecutors said worked in Galleon’s offices but was not employed there, and Zvi Goffer, 33, who worked at Galleon and later started the Incremental Capital trading firm. Others indicted include three others associated with Incremental: Zvi Goffer’s brother Emanuel Goffer, 31; Michael Kimelman, 38, and David Plate, 34; Arthur Cutillo, 33, who had been a lawyer at Ropes & Gray LLP; and another lawyer, Jason Goldfarb, 31. All live in the New York metropolitan area.”
Prudence Pays Off For Jefferies– And Its Workers (WSJ)
“We can pay our people what they deserve to be paid,” Mr. Handler said in an interview from his sparse New York office overlooking Jefferies’s trading floor. “We are only beholden to our shareholders.”
Obama’s ‘Volcker Rule’ shifts power away from Geithner (WaPo)
On Thursday, “a beaming Volcker stood at Obama’s right as the president endorsed his proposal and branded it the “Volcker Rule.” Geithner stood farther away, compelled to accommodate a stance he once considered less effective than his own.”
Barclays chairman Marcus Agius tells bankers not to complain (Telegraph)
“The financial services sector in general and banking in particular is facing a tsunami of regulatory pressure, public pressure, opinion pressure and political pressure,” he said. “It’s perfectly understandable and I’m not in any sense railing against it… what keeps me awake at night is coping with all of that and how it’s going to play out.”
