Opening Bell: 04.08.10

Citigroup Ex-Chief Prince, Rubin Face Grilling on Role in Record Losses (Bloomberg)
Commission Vice Chairman Bill Thomas said in an interview yesterday he wants to hear whether Prince, ousted as chief executive officer in 2007, and Rubin, who served as interim chairman, accept any responsibility for Citigroup’s performance. Good one, Bill.

Fed Review Finds Errors In Oversight Of Citi (NYT)
Blowing your mind: “Although the dedicated supervisory team is well-qualified and generally has sound knowledge of the organization, there have been significant weaknesses in the execution of the supervisory program,” according to one excerpt of the review.

China on ‘Treadmill to Hell’ Amid Bubble, Chanos Says (Bloomberg)
The world’s third-biggest economy may need to keep up the pace of property investment because up to 60 percent of its gross domestic product relies on construction, said Chanos. The bubble may begin to “run its course” in late-2010 or 2011, he said in an interview on “The Charlie Rose Show” that will air on PBS and Bloomberg TV.

Nepal’s Living Goddess Eyes Banking Career (Reuters)
“I want to study commerce or accounting and be engaged in the banking sector,” Chanira Bajracharya told Reuters in a rare interview, dressed in her ceremonial costumes, her eyes rimmed in black kohl and a third eye painted in the middle of her forehead. Lloyd, are you listening?

Prosecutors Seek 335 Years For Petters (AP)
”The defendant’s fraud is beyond comprehension in size and scope,” prosecutor Joe Dixon wrote. ”The offense is the largest fraud in the history of Minnesota. Indeed, there are only a handful of fraud schemes that are even comparable in the history of the United States.”

Goldman Sachs Trader Hedayat Said To Leave Firm (Bloomberg)
Ali Hedayat, co-head in the Americas of Goldman Sachs Group Inc.’s largest internal hedge fund, has left the firm, the second senior departure from the unit in less than a month.

Morgan Keegan And Its Onetime Star Kelsoe Charged By The SEC (WSJ)
James Kelsoe, once a star mutual-fund manager, was accused by the Securities and Exchange Commission of deliberately inflating the value of subprime securities in order to hide losses in his funds after the real-estate bubble burst.

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Comments (12)

  1. Posted by Tax Chick | April 8, 2010 at 9:18 AM

    citi.gov b1thches

  2. Posted by Anonymous | April 8, 2010 at 9:23 AM

    they can robo trade down to the microseconds but they can’t report properly within 24 hours? 30% discount for frontrunning….

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEK7at7qyz_g
    Credit Suisse, Instinet Fined for Reporting Failures

    “Credit Suisse, based in Zurich, was fined 1.75 million pounds for failing to report 30 million trades on the London Stock Exchange and reporting 10 million trades on other platforms inaccurately, the FSA said. Getco, a Chicago-based market maker, got a 1.4 million-pound fine for incorrect reporting on 46.3 million trades on LSE and other markets, according to FSA documents.”

  3. Posted by Tax Chick | April 8, 2010 at 9:24 AM

    bleeding ulcerated penis@1 – get a life!

  4. Posted by guest | April 8, 2010 at 9:29 AM

    Kelsoe=patriot

  5. Posted by Vikram Pandit | April 8, 2010 at 9:35 AM

    Chanira, call me.

    Vik

  6. Posted by Anonymous | April 8, 2010 at 9:48 AM
  7. Posted by friend of a relative | April 8, 2010 at 9:49 AM

    Gary- RUN. Really. Run.

  8. Posted by Anonymous | April 8, 2010 at 9:53 AM

    “Prosecutors Seek 335 Years for Minn.’s Petters…”

    I thought heavy petting was allowed on the 3rd date in Minnesota!! Better move to North Dakota!

  9. Posted by PermaGuest | April 8, 2010 at 10:02 AM

    @8 FAIL

  10. Posted by Anonymous | April 8, 2010 at 10:24 AM

    Bess, what about dumb consultants advising Citi to load up on CDO’s or Tiger’s new quest?

  11. Posted by PettersClopsWide | April 8, 2010 at 12:43 PM

    almost did a deal with Petters for a spin-out of Polaroid called ¨Zink¨- zero ink printing for printers, phones, and other assorted crap. took one look through just the bank statements… and it was plainly clear the guy was shady. proposed CEO ignored my initial request for background check auth… then ¨pre-empted¨ with an explanation of prior SEC censures.

    PE due dilly >> LP due dilly >> Nails foreclosure scat due dilly >> auditors??

  12. Posted by bookmarking submission | September 9, 2012 at 9:40 PM

    tpXKvI Thank you ever so for you article post.