Archive for July 2010

  • 14 Jul 2010 at 9:30 AM

Opening Bell: 07.14.10

By Dealbreaker

Financial Overhaul Hits Farmers (WSJ)
Farmer Jim Kreutz uses derivatives to soften the blow should the price of feed corn drop before harvest. His brother-in-law, feedlot owner Jon Reeson, turns to them to hedge the price of his steer. The local farmers’ co-op uses derivatives to finance fixed-price diesel for truckers who carry cattle to slaughter. And the packing plant employs derivatives to stabilize costs from natural gas to foreign currencies…

Goldman Can Show SEC Clients Get Best Returns on Its IPOs (Bloomberg)
American companies that used Goldman Sachs as the lead underwriter for initial sales got the highest prices for their shares in the first half of 2010, selling at an average 1.4 percent discount to their offering range, data compiled by Bloomberg show. Buyers were rewarded with an average first-day advance of 9.6 percent, the biggest this year.

Police Search Credit Suisse Offices (WSJ)
The German offices of the Swiss bank were searched Wednesday as part of a widening probe into alleged tax evasion by wealthy Germans using hidden Swiss accounts. The Düsseldorf prosecutor said raids were conducted on 13 Credit Suisse locations around Germany by around 150 investigators.

Hedge-Fund Returns Decline in 2010 Amid Europe Crisis (Bloomberg)
The Eurekahedge Hedge Fund Index, which measures the performance of more than 2,000 funds worldwide, fell 0.5 percent in June and lost 0.02 percent in the first six months, Eurekahedge Pte said in a report. More than 500 funds started globally in the first half, the Singapore-based research firm said.

Germans Show No Inclination to Give Up on Euro, Spurring Boom (Bloomberg)
“A break-up would be a big, big problem for the German economy, probably bigger than for most others,” said Julian Callow, chief European economist at Barclays Capital in London. “Industries in Germany have gained so much market share in Europe. For Germany, it’s a lose-lose situation.”

Death’$ Perfect Timing (NYP)
George Steinbrenner died six months after the federal estate tax expired, saving his wife and four children about half a billion dollars — and essentially ensuring they can keep the Yankees. The tax, a 45 percent hit that lapsed in January due to lawmaker bungling, is set to be renewed in 2011 — at 55 percent. Had he died in 2009, his family would have owed about $500 million; if he had survived until 2011, the bill would have been $600 million. Continue reading »

  • 13 Jul 2010 at 5:45 PM

A Little Perspective, Please

By Bess Levin

Over the last few weeks/months, a decent number of people have gotten their faces ripped off, little known fund managers like John Paulson included. There’ve been a lot of pity-parties, a lot of “why me” and a lot of JO&C. While one could take the approach of telling you to stuff it and take it like a man, we realize in this case, a slightly more sensitive touch is required. So I’m just gonna say this: you’re lucky all that’s been ripped of is your figurative face and not, say, chunks of your actual leg. Continue reading »

  • 13 Jul 2010 at 4:09 PM

Is Congress Encouraging People To Kill Their Old/Rich Relatives?

By Bess Levin

At least one guy says yes, though perhaps this is just an all to convenient way of blaming the government for something he’s been planning on doing all along. Funny how that happened.

Advisers say the estate-tax dilemma is especially awkward for heirs. “At least in December 2009, people wanted to keep their relatives alive,” says Ronald Aucutt, an estate-tax attorney with McGuire Woods in the Washington area. Now he and others are worried that heirs may be tempted to pull plugs on Dec. 31. Economists might call the taking of a life to reap a tax advantage a “perverse incentive.” District attorneys might call it homicide.

Congress is also apparently encouraging keeping appliances plugged in and close to the tub while going for a dip. Continue reading »

  • 13 Jul 2010 at 3:02 PM

Ken Feinberg Mulling Over Having A Little More Fun With Wall Street

By Bess Levin

His time here is almost over but before he takes off for a little maxing and relaxing, the Compensation Cop is apparently thinking about having some fun with bonuses that were paid out that for “the bailout year of 2008″ by all banks that took TARP funds and not just the ones who’ve yet to pay back the blood money. So not just fuck-ups like Citi and Bank of America but also institutions such as, to name a few, JPMorgan, Morgan Stanley and, gird your loins, Goldman Sachs. Feinberg has just finished a “look back” at the cheddar paid out by those institutions and according to Charlie Gasparino, “does not like what he saw.”

Sources say that Feinberg, in concluding his study, and one person with knowledge of Feinberg’s thinking says he is “leaning” toward forcing at least some of the big banks that he reviewed to give back bonus money.

Continue reading »

  • 13 Jul 2010 at 1:48 PM

Russian Spy Will Not Be Able To Visit With Ex-Husband, Work For Barclays Again Anytime Soon

By Bess Levin

Well, this is a set-back. Anna Chapman, the only Russian spy anyone cares about, has had her British citizenship revoked, and the U.K.’s Home Secretary apparently has plans to “exclude” her from the region entirely, as it would be “conducive to the public good.” Continue reading »

  • 13 Jul 2010 at 1:13 PM

Ken Griffin’s Hero Dies

By Bess Levin

Talking about KG’s grandmother, obviously, and not you know who. Apparently Genevieve Huebsch Gratz, who died last week at the age of 98, was a “fount of unsolicited advice” and taught Kenny-boy everything he knows. Continue reading »

  • 13 Jul 2010 at 12:47 PM

Looking For That Extra Edge?

By Bess Levin

Are you old as fuck? I mean, for Wall Street, what with all the whippsnappers running wild, not for, like, the earth? Might we suggest an age-old technique for getting that spring back in your step that apparently fell out of fashion almost 100 years ago but is surely set to make a comeback, probably with even better results due to advances in medicine and technology? Continue reading »