THE CHICKEN IS THE BUN!
The Challenge: 7 KFC Double Down sandwiches in 30 minutes. Continue reading »
Archive for April 2010
In the first day of Senate testimony on the collapse of Washington Mutual, we learn the bank knew about rampant mortgage fraud going on in its various branch offices. The fraud includes the typical shenanigans like lying on income statements of borrowers, fake employment statements, etc. Continue reading »
Obviously a whole lot but in this case the answer we were looking for was failure to pay taxes like the rest of us law abiding citizens. Continue reading »
Lehman Used ‘Alter Ego’ To Transfer Risks (NYT)
In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books. The firm, called Hudson Castle, played a crucial, behind-the-scenes role at Lehman, according to an internal Lehman document and interviews with former employees. The relationship raises new questions about the extent to which Lehman obscured its financial condition before it plunged into bankruptcy.
AIG ‘Strongly Objects’ To Pay Restrictions (FT)
In Monday’s filing, AIG said it “strongly objected” to Mr Feinberg’s decision in November to reduce the salaries of David Herzog, chief financial officer, from $675,000 to $350,000, and Kris Moor, the head of the property and casualty unit, from $1m to $450,000. AIG’s board also expressed concern that Mr Feinberg’s move to cap the cash salary of the top 100 staff to $500,000, unless there were exceptional circumstances, put the insurer at a “competitive disadvantage”.
Trump and Bondholders Gain Control of Casinos (NYT)
Mr. Trump joined with bondholders in a successful $225 million bid that beat out a rival offer by Carl C. Icahn.Much of the money for the bid was put up by Avenue Capital Management. Mr. Trump will control 10 percent of the company and will have the option to increase his stake in the future. Rather than cash, Mr. Trump offered the bondholders the use of his name on the three casinos. “The Trump brand is worth millions of dollars to the debtors,” the bankruptcy judge, Judith Wizmur, said in her ruling. “The debtors’ identification with the Trump Organization raises its profile in the gaming industry.”
Nine Year-Old Fossil Hunter Finds New Species Of Human Ancestor (Bloomberg)
Matthew Berger was about 15 meters (49 feet) from his dad, Lee, a paleontologist working at the archeological dig in South Africa known as the Cradle of Humankind, when he called out, his father said during a briefing yesterday with reporters. “Dad, I found a fossil,” the youngster said.
Former Northern Rock Executives Fined, Banned (AP)
The Financial Services Authority said Tuesday it wanted its sanctions against Northern Rock’s former deputy chief executive David Baker and former managing credit director Richard Barclay to be a ”loud and clear message that we are serious about taking action against senior directors where they step over the line.”
Birds Aren’t In It For Love, Research Says (Reuters)
“The main discovery is that so many birds do divorce for what humans would describe as selfish reasons,” Stutchbury said, noting that females may seek out males that are more colorful and better singers, or look to “step up in the world” and move to areas that are safer and have more food. Continue reading »
$$$ Morgan Stanley Must “Execute” [WSJ]
$$$ Cuomo Says Hank Greenberg Denials ‘Incredible, Irrelevant‘ [BW]
$$$ Christopher Walken Vividly Remembers Having His Diapers Changed [Daily Intel]
$$$ This Anti-Wall Street Film Isn’t Just for Michael Moore Fans [WSJ]
We haven’t heard from accused insider trader Raj Rajaratnam in a while, but it appears the government is preparing even more charges against the former head of the Galleon Group.
In a court filing on Friday, lawyers for Rajaratnam cite a letter written by prosecutors in late March saying they intend to “offer evidence on dozens of previously unidentified stocks and co-conspirators on the counts alleged against only one of the defendants.” The letter is attached as an exhibit to the filing, in which Rajaratnam’s lawyers argue his case should be separated from that of his alleged co-conspirator Danielle Chiesi. The duo originally appealed to the judge for separate trials about a month ago.
Among the additional companies identified by the government is Goldman Sachs, according to the letter. Prosecutors said they are focusing on trades in Goldman shares between June and October of 2008, just as the financial crisis was in full swing and Lloyd & Co. was negotiating a deal to sell $5 billion in preferred stock to Warren Buffett. Continue reading »
Well into the crisis period, when banks such as Citigroup were operating on federal investment and when Citi’s stock was in single digits, Vikram Pandit, the CEO, was observed with a lunch guest at Le Bernardin, one of the top-rated restaurants in New York. Pandit looked discerningly at the wine list, saw nothing by the glass that appealed, and ordered a $350 bottle so that, as he explained, he could savor “a glass of wine worth drinking.” Pandit drank just one glass; his friend had none.
Please tell me he made a big show of swishing it around in his mouth, inhaling it with his eyes closed, sending back the first bottle and backhanding the idiot waiter. Please tell me all that.
Book Excerpt: Roger Lowenstein’s “The End of Wall Street” [BusinessWeek]
Or so she claims in the upcoming issue of Playboy (“I love sex and I’m very good at it, but I’m saving that. That’s for my future boyfriend from now on. And it will be fabulous”). If only someone could verify that claim! Also, the writer on the story says Dupré looks like “a toffee treat waiting to be unwrapped and savored,” so…yeah.
Ashley Dupré, Unwrapped [NYM]
Derrick Coleman filed for Chapter 7 bankruptcy protection last month, noting that he owes creditors around $5 million. His lawyer attributed his financial trubs to a love a Detroit, and a burning desire to see it succeed that may not have necessarily meshed with what’s been going on there economically.
Coleman’s desire to invest in the Detroit area after his playing career ended contributed to his financial problems, Coleman’s bankruptcy attorney Mark B. Berke said Friday. Among Coleman’s ventures is a struggling Detroit development called Coleman’s Corner, an attempt to revive one of the city’s most downtrodden neighborhoods. Coleman defaulted on loans related to the mall last year. “Mr. Coleman was focused on investing in various communities throughout the city of Detroit by developing real estate, creating jobs and revitalizing business opportunities,” Berke said. “Due to the state of the economy, including the decline in the real estate market, Mr. Coleman’s investments could not be sustained.” Among Coleman’s largest debts is $1.3 million owed to Comerica Bank in connection with a lawsuit and a $1 million loan on property in Michigan from Thornburg Mortgage Home Loans. Coleman also owes Detroit mayor and fellow Syracuse legend Dave Bing $50,000 from a loan granted last year.
But! I think it’s going to be okay here because Coleman is planning to liquidate his assets and oh does he have some assets to get amped about. Continue reading »
THE CHICKEN IS THE BUN!
Let it be known that while admirable, this does not count for the eating challenge (the only way that’s a challenge is if one of you does for in four minutes). As you were.
Remember about a year ago when Bill Ackman shed tears at Target’s annual shareholder meeting after losing one of the most expensive proxy fights in history against the big box retailer?
At the time, Pershing Square IV, the Target-focused fund Ackman collected $2 billion for, had lost almost 90 percent of its value. The losses prompted Ackman to “apologize profusely” to investors in the fund and declare the losses “one of the greatest disappointments of my career to date.” Pershing also restructured PSIV, cutting fees and letting some investors out early.
Fast forward a year and PSIV is now up 175 percent since the restructuring, according to an investor in the fund (although it’s still down since its inception in the summer of 2007.) Ackman has also scored big on the mall owner General Growth Properties, chalking up absurd returns of over 20 time his original investment despite criticism of his position from other hedge fund managers. Continue reading »
