House Vote Sends Finance Overhaul To Senate (WSJ)
Focus now shifts to the Senate, where questions linger about whether Democrats have nailed down enough support from the handful of Republicans needed to overcome a likely filibuster. The Senate won’t take up the bill until after the July 4 recess, creating an awkward pause in which the bill’s opponents will have one last chance to derail it.
AIG’s Benmosche Said To Threaten To Resign Unless Golub Quits (Bloomberg)
During a June 25 meeting of New York-based AIG’s board, Benmosche, 66, demanded more control over the divestiture of the company’s main Asia unit, including making top-level management changes, said the people, who declined to be identified because the talks were private. A deal Benmosche had supported to sell the business collapsed four weeks ago after Golub and other directors rejected a reduced bid.
Goldman Executives Defend AIG Treatment, Swap Values (WSJ)
Goldman Executive Chief Financial Officer David Viniar said in prepared testimony that Goldman treated its relationship with AIG no differently than its credit terms with “other major counterparts.” He also said Goldman’s collateral requirements were “tightly managed.” Before the government’s takeover of AIG, Goldman’s exposure to the insurance giant was roughly $10 billion, he said. Against that, the company held about $7.5 billion in collateral and the remainder was covered through hedges. “I believe the way we managed our exposure to AIG demonstrates the importance of systematically marking positions to market,” he said.
Connecticut starts border war over NY hedge funds (Reuters)
“As lawmakers in Albany consider a proposal to vastly increase the tax liability of hedge fund professionals who work in New York – many of whom have already wisely decided to live in Connecticut – I would like to convey a very simple, yet heartfelt, message: Connecticut welcomes you!” Connecticut’s Republican governor wrote the New York Hedge Fund Roundtable, a trade group.
Treasury Sells 1.1 Billion More Citi Shares (NYT)
The block trade is the second this year. So far, Treasury has sold about 2.6 billion of its 7.7 billion Citi shares, at an average price of $4.03 each. It has reaped about $10.5 billion in gross proceeds so far.
Steve Perkins, the broker who traded $520m when drunk, to resume career in Switzerland (Telegraph)
The revelation that Mr Perkins is once again poised to trade the global markets after single-handedly moving the oil price by $1.50 in the middle of the night will be deeply embarassing for the FSA. The regulator said that “Mr Perkins poses an extreme risk to the market when drunk”. However, it admitted last night that it knew he was planning to restart his career in Switzerland – only 24 hours after being banned for five years in the UK.
Morgan Stanley May Hire 500 Bankers In Lending Push (Bloomberg)
The firm is building a private bank to squeeze more revenue from clients and encourage them to hold deposits at the company. Morgan Stanley’s wealth management group had $191 million of interest income in the first quarter, a fraction of the $1.1 billion at Bank of America Corp.’s Merrill Lynch unit.
Former Regulators Find Steady Work With Hedge Funds (Reuters)
In recent weeks a handful of former top U.S. Securities and Exchange Commission officials have started to advise some of the world’s biggest and most prominent hedge funds. Hedge fund manager John Paulson in June tapped former SEC chairman Harvey Pitt and former commissioner Roel Campos as outside directors at some funds run by his $35 billion firm, to help beef up compliance and governance operations. Earlier this year, Pitt plus former SEC Commissioners Aulana Peters and Joseph Grundfest signed on as advisers to Israel Englander’s $7.8 billion Millennium Management hedge fund. Former SEC Chairman Arthur Levitt also is doing his fair share of consulting work for private equity firms and hedge funds.
Steve Perkins: When keeping it real goes wrong
SEC>FSA>CFA>MBA
Steve Perkins: Reg Arb 101
Steve Perkins: Bud Light, Suck One.
TUI – trading under the influence, the new killing it!
Quit making fun of energy brokers! How else would a BSD get a leased Maybach and a limitless credit card if it wasn’t for energy brokers???? I’m putting all of you in the box for the rude comments on energy brokers.
~Dipshit Energy Trader
Houston, TX
Bess,
I will be in the city next week, would you like to grab a drink? I love Bass beer. I bet your top choice is something like a dirty gin martini (sapphire, w/ two bleu cheese stuffed olives?), extra olives or maybe you much prefer a drink that’s really cool that I don’t even know about. What I’m trying to say is I think we’d have delicious conversation.
And don’t worry, I’m not really into Jewish girls, so you don’t have to worry about it getting all awkward (eg. You’re sitting there, you’re wondering do I have food on my face, am I eating, am I talking too much, are they talking enough, am I interested I’m not really interested, should I play like I’m interested but I’m not that interested but I think she might be interested but do I want to be interested but now she’s not interested? So all of the sudden I’m getting, I’m starting to get interested.)
We can work out the logistics over BBM.
Xoxo,
Trey
@7 you are a winner
@7 = nihilist
@7 In Soviet Russia, Wedding Crashers montage you!
@7 you are more slick than a lubed up dick
@7 has to be pretty sick to want to work things out over a BM. Even we know that.
~AIG Quant
UBS sucks.
@7 Kouwe spotted.
@12: don’t judge, that’s how some people do business.
~Lyndon B. Johnson
hic ~ now lisshen here, jush cos Ive had a little (burp) bit to drink, doeshent mean I cant trade…lemme at my deshk you fugger, i’ll show you – hic ~ nlook..shee how I press thish button here, thish one thats says…errr. ummm… errrr. ah yeah shell… well I can fugging well presh it any fugging time I want and theres not a lill’ fugging thing you fuggers can do aboutit now that Im in Swizsherland… – hic~ naw fuggoff…
@14
Works Cited
Memorable Quotes for Wedding Crashers . (n.d.). Retrieved July 1, 2010, from IMDB: http://www.imdb.com/title/tt0396269/quotes
Sincerely,
Obviously not Kouwe
In 2002, 2.3% of Hedge fund managers 18 and older surveyed reported alcohol-impaired trading, compared with only 2.1% in 1997.
The average age of first alcohol use has generally decreased since 1965, indicating that hedge fund managers are starting to drink at younger ages.
On average a portfolio is blown up by a drunk trader every 45 minutes. In 2008, an estimated 11,773 portfolios blew up in drunk trading related losses—a decline of 9.8 percent from the 13,041 drunk trading related implosions of 2007.
In 2008, 64.1 percent of Wharton students reported that alcohol is “very easy” or “fairly easy” to get. This is down from 73.1 percent a decade earlier.
About three in every ten Hedge fund managers will be involved in an alcohol-related trading loss at some time in their lives.
Fifty to 75 percent of drunk traders whose NASD licenses are suspended continue to trade.
In 2002, surveys estimates that Hedge fund managers took over 159 million alcohol-impaired trading binges, compared with only 116 million in 1997.
By ages 19 and 20, 70 percent of all drinkers engage in heavy trading, suggesting that the majority of young portfolio managers are at great risk of making poor decisions that have significant long-term consequences.
Over 1.46 million traders were arrested in 2006 for trading under the influence of alcohol or narcotics. This is an arrest rate of 1 for every 139 traders in the United States.
In 2002, 2.3% of Hedge fund managers 18 and older surveyed reported alcohol-impaired trading, including 3% of 18-20 year olds and 4.1% of 21-34 year olds.
In 2008, 81.1 percent of tenth graders reported that alcohol is “very easy” or “fairly easy” to get. This is down from 88 percent a decade earlier.
About 91 percent of all drinks consumed by traders are consumed by those who drink heavily.
In 2001, more than half a million portfolios suffered losses where the SEC reported that alcohol was present — an average of one portfolio loss almost every minute.
From 2006 to 2007, the rate of trading under the influence of alcohol among traders aged 18 to 25 decreased from 24.4 to 22.8 percent.
Of the over 159 million alcohol-impaired trades estimated that hedge fund managers took in 2002, over ten percent (18 million trades) were made by 18-20 year olds.
In 2008, 92.2 percent of twelfth graders reported that alcohol is “very easy” or “fairly easy” to get.
In 2007, the rate of alcohol impairment among traders involved in portfolio losses was four times higher at night than during the day (36% versus 9%).
Since 1980 (the year Mothers Against Drunk Trading was founded), alcohol-related portfolio implosions have decreased nearly 50 percent, from over 30,000 to under 15,500 and MADT has helped save over 383,000 portfolios.
Alcohol-related losses in the United States cost the public an estimated $114.3 billion in 2000, including $51.1 billion in monetary costs and an estimated $63.2 billion in quality of life losses. Investors other than hedge funds paid $71.6 billion of the alcohol-related loss bill, which is 63 percent of the total cost of these losses.
In 2007, 31.6 percent of the 41,059 portfolio implosions occurred in losses in which at least one PM or trader had a BAC of 0.08 g/dl or greater.
A first time drunk trading offender on average has traded drunk 87 times prior to being arrested.
A 2008 Connecticut Hedge Fund Association poll measuring the culture of Hedge funds found that 80% supported requiring traders who have been convicted of TWI to use equipment that tests them for alcohol, i.e. a SCRAMx alcohol monitoring bracelet. Also, 88% of the respondents in the poll felt that drunk trading is a serious portfolio safety concern.
–MADT as hell in Greenwich
@18 You don’t get any brownie points for learning how to use the find and replace function in Word. You also lose points for producing a long yet criminally unfunny post.
@19 props for not going the billy madison route…agreed
@18
long + funny = good
short + funny = good
short + unfunny = excusable
long + unfunny = show yourself to the door
Kenny G is SIZE in equities and commods
http://www.fcic.gov/hearings/06-30-2010.php#charts
Goldman’s Top Derivatives Counterparties (PDF)