Hint: the one he hasn’t been trading emails with is the guy who tried to sell you some schwag in the alley behind 383 yesterday during lunch. Also, for the animal lovers in the group.
Archive for March 2010
Thanks for nothing.
Ashley Dupre learned that posing for Playboy is more dangerous than meeting strange men in hotel rooms. One of the Stephen Wayda photos in an eight-page spread in the May issue shows her lying on the ground nude surrounded by candles. “A few strands of her hair caught on fire at one point because of all the hairspray,” a source said.
One of these men has a gun and the other can bench 350. Consider not giving them shit about the returns.
Now that Jim Simons has officially retired (he announced his intent to do so last October but he’s been saying that since 2002 and every time he got his foot out the door they pulled him back in, like the siren song of a carton of Pall Malls), it’s time to introduce the world to the new team. Bob Mercer and Peter Brown (pictured) are running the good ship Renaissance now.
The duo, who have known each other since they met doing “code-breaking research for the Defense Department,” and came over to RenTec together in 1993, claim that in Jimbo’s day to day absence (he’s still chairman of the place but will be devoting more time to charity and his 219-foot yacht, Archimedes) they won’t be changing much out in East Setauket, though that’s not entirely true. Yes, the computer servers that run the trading operations will retain their nicknames– Laddersnake, Howler3 and Neon– and yes, the whole operation is still just a front for Long Island’s first tobacco farm. But Brown and Mercer are seriously considering getting rid of RIFF (Renaissance Institutional Futures Fund) and RIEF (Renaissance Institutional Equities Fund), on account of their knack for making a lot less money than Medallion.
Like, a lot less (the flagship has seen average returns of about 45% a year, after fees, since its inception in 1988 and has only lost money in one quarter since 1995, when it was down 0.5% in Q1 of 1999. RIFF and RIEF have fared significantly worse, and assets, which in 2007 were a combined $30 billion have dropped to $6 billion due to withdrawals). The fact that whereas Medallion is almost entirely employee money, and the shittier two funds (RIEF lost 6% last year and 16% in 2008) are open to outside investors has caused a bit of stress for new management. “Other people’s money is like a lever on your anxiety,” says Mr. Brown. So, yes, they’re probably going to put R ‘n R out to pasture but nothing’s for sure just yet. While we wait and see, we might as well get to know Brown and Mercer a bit better. Scott Patterson and Jenny Strasburg recently hopped on the LIRR and spent some time with the two. Here’s what they found out. Continue reading »
Lehman Whistle-Blower’s Fate: Fired (WSJ)
Matthew Lee, a 14-year Lehman veteran, was let go in late June 2008 amid steep losses at the firm as it tried to maneuver through the global financial crisis. Earlier that month, he had raised concerns with Lehman’s auditor, Ernst & Young, that the securities firm was temporarily moving $50 billion in assets off its balance sheet.
Citigroup Bolsters Proprietary Trading Arm as Volcker Rule Spurs Defectors (Bloomberg)
Kevin Russell, head of Americas stock trading, told employees and securities firms supporting the unit last week that Citigroup may increase the group’s trading limits and capital, according to the people. The New York-based bank will replace some or all of the six portfolio managers and analysts who left since their leader, Matt Carpenter, quit in February, according to two of the people, who declined to be identified because the unit’s operations are confidential.
Roubini Worried by ‘Runaway Fiscal Deficits’ (CNBC)
Exit policies [from stimulus strategies] pose a “damned if you do, damned if you don’t” dilemma, as withdrawing stimulus too soon could push economies back into recession, while leaving it too long would push already high fiscal deficits even higher, Roubini, who predicted the 2007 financial crisis, explained.
Barclays Targeted UBS Ahead of Lehman Buy (Reuters)
Senior executives at Barclays Capital had presented UBS as a favored takeover target at a July 2008 board meeting.
Ex – AIG Employees Might Sue Over Lower Payouts (Reuters)
The insurer is asking former employees who are eligible for the payout what they earned after leaving AIG so it can reduce the retention bonus payments by that amount, said Gary Phelan, a partner at law firm Outten & Golden, which represents eight current and former employees. “They’ve had several months to determine whether or not any payment should be offset,” Phelan said. “Unless there’s a very quick payment made of the balance 25 percent, I think (a lawsuit) is inevitable.”
Michael Jackson’s estate strikes richest deal in history for 10 albums with Sony Corp. (NYDN)
The Gloved One’s estate has struck a deal with the Sony Corp. for 10 Jackson albums through 2017 worth as much as $250 million. Continue reading »
$$$ Goldman Sachs Squeezes Hedge Funds in $110 Billion `Collateral Arbitrage’ [Bloomberg]
$$$ Julian Robertson Has Been Working on the Same Novel for 29 Years [DI]
$$$ Finance Overhaul Sets Up Winners, Losers [WSJ]
$$$ Dodd Targets Banker Influence Over New York Fed [BNET via Heidi Moore]
Harvard Undergrad Who Inspired The Big Short Hoping To Change Wall Street From The Inside
By Bess Levin
A.K. Barnett-Hart says check yourselves.
A word of advice to any asshats currently hard at work figuring out how to cause the next financial crisis: AK Barnett-Hart is watching you. In fact, you’re the reason the second year investment bank analyst, who wrote her senior thesis about the market for subprime mortgage-backed CDOs (which Michael Lewis called “more interesting than any piece of Wall Street research on the subject”), got into this line of work. To police you fuckers, and clean this place up. From Deal Journal: Continue reading »
Under the Chapter 11 reorganization plan proposed by the company, Lehman sought authority to create an asset manager business called LAMCO that would specialize in management of Lehman’s commercial real estate, mortgages, principal investments, private equity, corporate debt and derivatives assets.
Lehman said LAMCO would provide management services to Lehman, administer its assets and offer long-term employment opportunities for the hundreds of Lehman employees working to liquidate the former investment bank’s estate.
Lehman plans to end bankruptcy, create new company [Reuters]
Mr. Vikram is just one good quarter away from all this.
Back in January, Prince Alwaleed informed Vikram Pandit that after “two years of leeway from shareholders,” 2010 is the year the Citi CEO must deliver. To that end, from here on out, the Prince said, Uncle Vik’s ass will ridden like Zorro, no if/ands/or buts about it. Alwaleed doesn’t typically enjoy getting so harsh on his li’l fella, but the tone was necessary. And so far, he’s pretty pretty pretty pleased with how things are going. Continue reading »
Favorite moments:
* Santelli, laughing of camera while Liesman is talking: “Oh, haha, oh god!”
* Kernan: “Oh come on Steve, don’t get that look on your face.”
* Liesman: “Joe, there’s a point in time when ignorance goes from being amusing to being dangerous and I think we crossed that point a long time ago.”
* Santelli: “You know what Steve? Grow up. Grow UP”
* Liesman: “Rick you’ve lost enough people enough money.”
* Santelli: “Let’s put it to a referendum!! Let’s ask on our website right now! Who lost you more money, Santelli or Liesman?!”
* Santelli: “What does our guest do for a living? Our guest who’s talking. What does he do. I can’t see him.” And this.
