Did you think Goldman Sachs and Morgan Stanley were going to be the only ones subjected to cavity searches by the US government? Think again, mon chi-chis! Charlie Gasparino reports that you should all be girding your loins.
The government has ramped up its investigation of Wall Street’s sale of toxic securities during the financial crisis to include firms other than Goldman Sachs and Morgan Stanley. Sources tell FOX Business that the Securities and Exchange Commission’s most active investigations so far also include Deutsche Bank and Citigroup, two of the biggest packagers of the toxic debt, known as collateralized debt obligations, that are at the center of the government’s interest.
My dear friend and former colleague John Carney will be joining CNBC.com as a “senior editor” in the coming weeks and will also be “appearing regularly on CNBC’s Business Day programming.” Over the last few years John has been on the network as guest commentator but now that he’s an official member of the team, one very important thing needs to happen. It goes without saying but here it is: a nickname. Maria’s got one, Erin’s got one, Phil LeBeau’s got one and now Carney needs one too. If he’s gonna do this, he’s gotta do this right. I know what my pick is but let’s get democratic about this. Serious suggestions only, please.
The government’s going to stick its nose in Morgan’s bidness, not inform anyone at the bank about what it’s up to and then leak the investigation to the press? OH NO, THEY DI’INT. This was not how Dick Bové wanted to start her morning but, damn it, you bitches have forced her hand.
Anthony Scaramucci, a CNBC contributor and founder of SkyBridge Capital, has a new book out on how to find your fortune without turning into a douche. Scaramucci was once fired from Goldman, but he still absorbed some lessons from the firm’s training program.
US Probes Morgan Stanley (WSJ)
Among the deals that have been scrutinized are two named after U.S. Presidents James Buchanan and Andrew Jackson, a person familiar with the matter said. Morgan Stanley helped design the deals and bet against them but didn’t market them to clients. Traders called them the “Dead Presidents” deals.
Roubini Says Greece May Lead Euro Exodus, China Faces Slowdown (Bloomberg)
A “real depreciation” in the euro is needed to restore competitiveness in nations including Spain, Portugal and Italy, he said in an interview on Bloomberg Television today. The euro will remain the currency for a smaller number of countries that have “stronger fiscal and economic fundamentals,” Roubini said.
`Perfect Quarter’ for Four Banks Shows Fed-Linked Revival on Wall Street (Bloomberg)
“The trading profits of the Street is just another way of measuring the subsidy the Fed is giving to the banks,” said Christopher Whalen, managing director of Torrance, California- based Institutional Risk Analytics. “It’s a transfer from savers to banks.”
Market Inquiry Focuses On One Trader (NYT)
Gary Gensler, the chairman of the Commodity Futures Trading Commission, said at a Congressional hearing on Tuesday that during that crucial time period, the futures trader, whom he would not identify, accounted for about 9 percent of trading volume in the most actively traded stock-index derivative contract, known as the 500 e-mini futures contract.
Fragments from Goldman Sachs! The Musical (New Yorker)
John Paulson! Singing and dancing!
Miracle Boy (NYP)
A Libyan plane crashed Wednesday on approach to Tripoli’s airport, killing at least 96 people and leaving a field scattered with smoldering debris that included a large chunk of the tail painted with the airline’s brightly colored logo. A 10-year-old Dutch boy was the only known survivor.
Do you need that visual? Of this guy attempting to log onto www.ladyboyjuice.com 385 times in one day? Or of his colleague freaking out over his hard drive being full of all the porn he’d previously saved, and frantically rummaging through his desk to find some CDs on which to put his new stash? If you answered yes and hell yes, at least one law firm is fighting for your rights. Continue reading »
Looks like Goldman and JPMorgan traders aren’t that remarkable after all. Bank of America scored positive net revenue on its trades every single day last quarter. Here’s the breakdown:
Revenue was more than $25 million 95 percent of the trading days in the first quarter, with the firm chalking up gains of over $125 million on 16 trading days between $75 million and $100 million on another 16 days. BofA said the gains were due to “more effective positioning” and “market conditions.”
Yesterday we discussed Bridgewater Associates’ “Principles,” the meanderings of founder Ray Dalio, which serves as the hedge fund’s unofficial handbook. While clients probably have no problem with it, not everyone counts themselves as fans of the Tao of Dal, which includes operating “like a hyena, attacking the wildebeest,” “probing” ones colleagues and having their meetings taped all in an effort to get to the “truth.” Today Ray got in touch with us to a) clear up some perceived misconceptions, re the T of D, b) respond to the characterizations of the of the firm made by a friend of BA and c) provide an up to date copy of “Principles” (yesterday’s PDF was a draft from last fall), which you can use yourself, should you be interested in starting your own little B-water (they also make great stocking stuffers).
Did you think Goldman Sachs and Morgan Stanley were going to be the only ones subjected to cavity searches by the US government? Think again, mon chi-chis! Charlie Gasparino reports that you should all be girding your loins.
