Archive for May 2010

  • 06 May 2010 at 2:59 PM

When Will the Pain Stop. . .

By Zachery Kouwe

Thanks a lot Europe. Dow nosedives 550 points, S&P down almost 5 percent.

Procter & Gamble went from a modest 3 percent decline to a 25 percent drop in a matter of seconds. Most likely a trading glitch, but still someone probably made some serious dough. Goldman dropped about 5 percent before regaining some ground.

Update: CNBC Reports a Citigroup trader was responsible for a mistaken “fat finger” trade that caused “million” to turn into “billion.” Citi told CNBC it has no evidence of such a trade.

Financial stocks and tech getting killed. Where will it end? Predict the close. Ready go.

  • 06 May 2010 at 2:05 PM

Steve Cohen Finally Recognized For What We’ve Known All Along

By Bess Levin

Steve Cohen is a master trader. Steve Cohen is a lover of art. Steve Cohen has revolutionized the way we look at fleece. Steve Cohen is the victim of a terrorist attack. Steve Cohen is (obviously) a golfer. Steve Cohen is a king. Steve Cohen is this. Steve Cohen is that. People say a lot of things about the grand high poobah of Stamford but you know what factoid about SC never gets mentioned? Continue reading »

  • 06 May 2010 at 2:03 PM

SEC Staffers Can Now Enjoy Stress-Free Browsing at Work

By Zachery Kouwe

Playboy Plans Free, Safe-For-Work Site

[paidContent.org]

  • 06 May 2010 at 12:51 PM
  • MBAs

Would-Be Times Square Bomber: Victim Of The Housing Crisis

By Bess Levin

Also a University of Bridgeport business school grad!

At the time of his arrest, Faisal Shahzad and his wife, Huma Mian, were facing foreclosure on the compact home of gray vinyl shingles they owned on Long Hill Avenue near the center of Shelton, Conn. He is “financially bankrupt,” said a high-level official briefed on the investigation. Neighbors and brokers said Mr. Shahzad and his wife had moved away and abandoned the house months ago. A lockbox with a key was on the front door, and the lawn was being mowed on behalf of the bank, J.P. Morgan Chase & Co., which issued the mortgage when the house was purchased in 2004.

Continue reading »

  • 06 May 2010 at 12:02 PM

WSJ Columnist Joins Chorus of Pundits Calling for Lloyd’s Head

By Zachery Kouwe

Echoing some other talking heads out there, Wall Street Journal columnist David Weidner called today for Lloyd Blankfein to step aside so Goldman can put its damaged reputation behind it.

With Warren Buffett and the Goldman board firmly in Lloyd’s camp, we’re skeptical that he’ll actually be forced to step down, especially if Goldman’s earnings continue to outperform. If the firm’s shares keep sliding, however, other Goldman shareholders may start getting restive.

Weidner points out that the departure of Ken Lewis helped Bank of America put its troubles in the past. Continue reading »

  • 06 May 2010 at 11:00 AM

Charlie Gasparino: Goldman To Probably Settle For At Least $1 Billion, Maybe $5 Billion

By Bess Levin

Analysts at the Charlie Gasparino Advisory Group said this morning that after speaking with “lawyers and rival CEOs,” the (potential) Goldman Sachs settlement with the SEC is currently being “ball-parked at between $1 billion and $5 billion,” though there are many other variables to consider (for instance, Lloyd leaving and the SEC knocking $500 million off the figure), making the situation “extremely fluid.”

  • 06 May 2010 at 10:45 AM

Bonus Watch ’10: GE Capital

By Bess Levin

Jeff Immelt you have some explaining to do! From the mailbag:

GE capital still hasn’t provided its employees with their bonus structure for 2010. GE capital employees are paid with low salaries and a performance bonus. Even when the markets crashed in 2009 bonus contracts were provided by now. Bull shit.

Opening Bell: 05.06.10

By Dealbreaker

SEC Probes Berkshire Disclosures (WSJ)
The Securities and Exchange Commission is examining the disclosures Berkshire Hathaway Inc. made about its $26 billion purchase of Burlington Northern Santa Fe Corp. railroad, said people familiar with the matter. For a number of weeks, the SEC has been looking at how Berkshire informed other Burlington shareholders about its offer to buy the company in late October 2009, these people said.

Greek Violence Threatens to Scare Away Tourists Needed for Saving Economy (Bloomberg)
Who’s afraid of a little tear gas?

Geither Says Can’t Take All Risks Out Of Banking (Reuters)
“The lesson of this crisis … is that we cannot make the economy safe by taking functions central to the business of banking, functions necessary to help raise capital for business and help businesses hedge risk, and move them outside banks, and outside the reach of strong regulation,” Geithner says.

Voting begins in tight UK election contest (FT)
Britain’s tabloid newspapers were emblazoned with bold headlines this morning. The Daily Express called today’s ballot “D-day”, while the Sun hailed Mr Cameron as “Our Only Hope” in a front page decked out in the style of Barack Obama’s campaign posters.

Swiss Too-Big-to-Fail Banking Rules Seek to Avert Icelandic Ending for UBS (Bloomberg)
“Switzerland has the most severe too-big-to-fail problem after Iceland,” said Urs Birchler, a professor at the Swiss Banking Institute at Zurich University and a former central bank adviser on financial stability. “It has the potential to derail Switzerland as an economy and as a democracy.”

Blankfein’s Bonds Are Riskier Bet Than Pandit’s: Credit Markets (Bloomberg)
“No one’s attacking Citigroup over anything anymore, and everyone’s attacking Goldman Sachs over everything,” said Richard Bove, a banking analyst at Rochdale Securities in Lutz, Florida. “It logically tells you that Citigroup should have a lower spread to Treasury than Goldman Sachs does.”

White Castle unveils burger-scented candle (CNN Money)
The candle’s “steam grilled on a bed of onions” scent was created by Nest Fragrances, and the limited-edition candle comes in a ceramic holder designed to mimic White Castle’s hamburger packaging, the fast food chain said this week. “When I think of truly superior aromas, I think of the aroma of a freshly grilled White Castle hamburger — life just doesn’t get better than that,” Laura Slatkin, founder of Nest Fragrances, said in a prepared statement. “We have captured that exact essence in our White Castle candle!”

Silicon Valley’s Segway Polo Team Plots Comeback (MarketWatch) Continue reading »

  • 05 May 2010 at 7:41 PM

Write-Offs: 05.05.10

By Bess Levin

$$$ Fabrice Tourre: Gaining Cred On Wall Street [Newsweek]

$$$ Donald Trumps Scam School Gets Sued [Gawker]

$$$ Gotham’s New Davos Man [NYO]

$$$ Feds Say SpongeTech Claims Are All Wet [FINalternatives]

  • 05 May 2010 at 5:29 PM
  • MBAs

Day 30: A Bunch Of Idiot Traders Drop By The Office And Steve Hisses At Them And Pisses In Their General Direction

By Bess Levin

Early last week, we were alerted to a message board containing a comment by a woman who accosted Bill Ackman at a recent General Growth Properties hearing. In it, she recounted their meeting and although perhaps mentally unstable, had a genius idea on her hands. Here is the relevant text:

“I waited Till Mr. Ackman was not talking to anyone, and shook his hand and told him he was one of my heros. He asked me who I was and I said I was a proud tenant and Artist at the South Street Seaport, and prould shareholder. He said I looked like a Artist, I told him thats what people said last time I was in GGP’s hearing. I told him the next German Shepard dog I get I will name him Bill Ackman, and the last German Shepard I had was named Warren Buffet [ all true ] I told him that I used to get cards from my Vet that said Warren Buffett needed his rabies and distemper shots.I told him I would send him the cards about Bill Ackman dog for his shots. He laughed and I feel I amused him, slightly charmed him and was slightly foolish. LOL!!!

Obviously, we were inspired and immediately dispatched someone to purchase a fluffy white cat for the Dealbreaker office. We named it after our favorite hedge fund manager and moving forward, will be providing you with daily updates of our time together. Here’s how life with Stevie has been going so far. Continue reading »

  • 05 May 2010 at 5:13 PM

Tim Geithner Has Some Fans!

By Bess Levin

He likely plied them with free Beast the night before but this still counts!

Geithner stepped onto a stage last week in Milwaukee, where unemployment is about 12 percent, and told 200 cheering college students that “it is excellent to be away from Washington.” “I didn’t really even know Secretary Geithner before the event,” said Allen Brown, 23, a senior from Germantown, Wisconsin, who is majoring in marketing. “He was very impressive” and “reiterated the point very well” that a regulatory revamp is needed.

Of course, he still has some detractors but whatevs, haters gonna hate. Plus, this kid wants to work in HR when he grows up. He’s being trained to hate life and make you want to hate life, too.

Zach Wambold, a 21-year-old from Watertown, Wisconsin, who’s studying human resources management and political science, said Geithner “didn’t offer as much to show his expertise in the field as he could have.”