Archive for June 2010

Opening Bell: 06.07.10

By Dealbreaker

It’s ‘Blatant’ that Hungary Isn’t Greece (CNBC)
Economy Minister Gyorgy Matolcsy acknowledged that there were “worrying signs” about the Hungarian budget and said that by the end of May the gap reached 87 percent of the target for the whole year. “It is blatant that Hungary is not Greece,” he said, adding that the comments about Hungary having a slim chance to avoid a Greece-like crisis came from politicians not from the government itself.

BP Spill Costs Reach $1.25 Billion; Cap Effort Continues (WSJ)
The $1.25 billion figure excludes $360 million for a Louisiana barrier islands construction project, BP said.

Goldman stung by backlash in China (FT)
“Many people believe Goldman Sachs, which goes around the Chinese market slurping gold and sucking silver, may have, using all kinds of deals, created even bigger losses for Chinese companies and investors than it did with its fraudulent actions in the US,” read the opening lines of an article in the China Youth Daily, a state-owned daily newspaper, last week. The article was widely distributed through commercial news portals and the websites of government mouthpiece Xinhua News and the People’s Daily, the Communist Party publication. Referring to Goldman as a “black hand” that “played little tricks carefully designed to gamble with Chinese enterprises”, the article made few specific accusations of wrongdoing by the bank.

Morgan Stanley In Drive On Cross-Selling (FT)
“Clients want to see more of our intellectual capital and our expertise, and they want to see more of the range of products that we have,” said Mr Gorman, who has met more than 300 clients since taking the helm. “If I have a criticism, it would be that historically we’ve approached clients with a product-group face, rather than sitting back and saying, ‘How do we bring all that we have at Morgan Stanley from research through to the specific product groups to them?’”

Buffett Hopes Lunch Auction Again Draws Big Deals (AP)
”Nobody’s asked for their money back,” Buffett said.

Société Générale Trial Begins This Week (NYT)
Jerome Kerviel maintains his innocence and also: “In the grand banking orgy, traders only get the kind of respect given a common prostitute: The quick recognition that the daily take was good.”

Hungary Aims To Trim Red Tape (WSJ)
The government pledged over the weekend that Hungary will work to stick within this year’s budget deficit target of 3.8% of gross domestic product. Government officials said Friday that the deficit inherited from the previous government was significantly higher. “A very fine-tuned action plan is needed, to reach the official deficit target and to put the economy on the growth track at the same time,” Mr. Matolcsy said. Continue reading »

  • 04 Jun 2010 at 5:00 PM

Write-Offs: 06.04.10

By Bess Levin

$$$ Which Banks Hold Europe’s Troubled Loans? [NYT]

$$$ Charlie Gasparino: Feinberg’s Not Done Yet [FBN]

$$$ Tweets On The Street [The Deal]

$$$ “Photo1′s last day at JPM inspired talk of icing him before he left; Photo2 went to get a Smirnoff, but Photo1 was prepared for the worst and had been carrying an emergency Smirnoff Green Apple all morning. They proceeded to do the honorable thing.” Continue reading »

  • 04 Jun 2010 at 4:00 PM

Bill Ackman’s General Growth Presentation at the Ira Sohn Conference

By Zachery Kouwe

We brought you Bill Ackman’s first presentation on the ratings agencies earlier this week. Now here’s the second part of the presentation on General Growth Properties.

GGP Part Two [PDF]

  • 04 Jun 2010 at 2:35 PM

Darrell Issa Is Hip To John Paulson’s Tricks

By Bess Levin

In 2007, John Paulson’s hedge fund donated $15 million to the Center for Responsible Lending. The money was used “exclusively to provide legal assistance to people facing foreclosure to help them stay in their homes.” Charity, helping those less fortunate, etc is something rich people sometimes do, either to help their image or because they’re not total dicks and would like to give back. Representative Darrell Issa, the greatest mind Washington and Wall Street has ever seen, however, knows better. Oh, he’s got this Paulson guy’s number. Issa knows that this was not an act of kindness but rather yet another Machiavellian trick by Paulson to inflate the housing bubble as big as he could before popping that shit like he did to the 40 virgins you just know he’s got out back, and maniacally laughing his way to the bank.


You know what the American people also have a right to know? Starts with a ‘What a’ ends with a ‘smug, intellectually dishonest little punk you are.’ Since we all know this is a baseless attempt to vilify hedge funds in general and Paulon & Co in particular, why don’t you back the shit off and devote the time saved to a more admirable pet cause, like personally going under cover to nail those patronizing prostitutes? Oh, you don’t know what I’m talking about? That’s funny, because I’ve got the tapes right here. Continue reading »

  • 04 Jun 2010 at 2:18 PM

Inside George Soros’ Famed Currency Trade

By Zachery Kouwe

It was the height of 1992 European currency crisis.

Like today, the Euro zone’s politicians, especially the Germans, were standing pat refusing to prop up the value of the pound. Currency traders had already forced the devaluation of the Italian lira and Stan Druckenmiller, the chief PM of George Soros’ Quantum Fund, already had a $1.5 billion bet against the pound. But, he was ready to go further, based mostly on unofficial comments from Helmut Schlesinger, the president of the German Bundesbank, who indicated that a devaluation of the pound was in the offing.

Druckenmiller was thinking about slowly adding to his position. But Soros said “go for the jugular.” Continue reading »

  • 04 Jun 2010 at 12:19 PM
  • Banks

Goldman Bankers Wish They Sold Savings Accounts

By Zachery Kouwe

Maybe that would get the public off their backs. Fed up with all the shit being thrown at them for being blood-sucking destroyers of the world, some Sachsians are starting to wish they were an old fashioned deposit-taking bank with 24-hour ATMs. At least it would spare them the seemingly-impossible task of explaining to the Plebes how the firm actually benefits society.

At least Jamie Dimon can say JPMorgan makes student loans and gives you free checking accounts. Goldman “facilitates” clients. Continue reading »

  • 04 Jun 2010 at 12:14 PM

Double Icing For House Of Dimon Traders

By Bess Levin

Their colleague reports from the scene: “After a JP Morgan softball game last night we went to a bar on on the Upper East. One guy showed up late and asked to have waiting for him upon his arrival ‘a water, a beer, and a Jäger bomb.’” Continue reading »

  • 04 Jun 2010 at 12:03 PM

CNBC Wardrobe Department Bringing The Thunder Today

By Bess Levin

  • 04 Jun 2010 at 11:34 AM

Barclays To Top Death Defying League Tables

By Bess Levin

On more than one occasion, Lloyd Blankfein has been forced to prove he can subsist for days without food, water or toilet. Steve Cohen had a brush with death a few years ago that left him with chronic back pain. Biff Basness has had several harrowing episodes during routine manscaping sessions. While lesser financial services employees would use these experiences as an excuse to give up, on life and/or making it rain, none of them threw in the towel. Despite, for example, having one ball that will never return to its original shape, these men went about their work, business as usual. And businesses didn’t just not suffer, it soared. Today we can add another survivor to that list. Another guy you can point to when your colleague whimpers about a mild case of carpal tunnel, or says he’s thinking about looking for a slower-paced gig following a horrific car accident. A guy like Thomas Wopat-Moreau. Continue reading »

  • 04 Jun 2010 at 10:37 AM

The SEC Gives Staffers Another Way to Access Online Porn

By Zachery Kouwe

Finally! After six grueling months of negotiations with the union representing Securities and Exchange Commission’s employees, the agency plans to issue 294 BlackBerry’s to certain staffers by the end of July. We’re not sure whether the new devices will be the old-school Berry’s with the side-scroll wheel or the newfangled 3G models with web browsing, but you can be sure SEC favorites like www.ladyboyx.com will be blocked. Continue reading »

  • 04 Jun 2010 at 10:34 AM

Totally Random, Not Monetarily Compensated People Weigh In On The “Too Hot For Citi” Chick

By Bess Levin

Hey hey hey! Look what we have here– it’s a bunch of random Citi customers who apparently remember Debrahlee Lorenzana and have graciously offered to weigh in on the situation, offering quotes that, though they may not help her case against Citi, might certainly attract the attention of certain organizations who require their employees to be “distractingly hot,” not that that’s what Debs and the lawyer who made her do a photoshoot that showed her in work appropriate clothing such as the ensemble at left are angling for whatsoever! Here’s what the character witnesses had to say:

* “I would walk the extra few blocks just to go to this one to see her,” said publicist Matt Saulk, 36, who favored the Rockefeller Center branch where Lorenzana worked over one on W. 52nd St. “I would think Citibank would want employees like her – it brings in the customers.” Continue reading »