$$$ Goldman Considers Moving Up Bonus Plan [CNBC]
$$$ A Marshall Plan For Fixing America’s Housing Woes [Reuters]
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Many of Wall Streets finest traders and investment bankers spend their weekends at the open mic nights of the tri-state area’s finest comedy clubs. Given. But there’s never been a centralized event for the comedic stylings of the industry’s most hilarious financial services hacks. Until now. Thompson-Reuters is hosting a “comedy competition for Wall Street” on November 16 and we feel strongly you should take part. Dick Fuld will be there doing a couple sets he’s been testing out at the Laugh Factory the past few weeks and if you’re nervous, DON’T BE. We’ll all come for moral support. Read more »
Earlier today we mentioned that FrontPoint Partners’ Steve Eisman has just about had it with Genworth Financial and told them as much on a conference call this morning in which he threatened to wage a proxy battle on their asses and throw management “out of here.” A clip has now been posted and the audio version is even better than reading in print (flashbacks to being yelled at by your father may ensue, particularly on the “DO NOT DO THAT” line). [Shareholder, Stevo enters around 38:14 and the juice is at 40:00]
Counterpoint: Merrill Lynch “enhanced risk management before crisis.” Read more »
First, though, a story.
One of the common refrains you hear from the critics of Wall Street is that financial services employees don’t build anything or make anything. To them, it means you don’t do anything for society. We know that’s not true but because one can’t reach out and touch your product, they like to say you earn a living by moving money around without ever creating anything real. The same can be said for my line of work. What do I do? I put words out there but it’s not like you can hold them in your hands or see someone walking down the street carrying them. And on some days, you start to wonder if the haters are right. You start to reevaluate. You question things. You wonder if you should quit and become a bricklayer or a shepherd.
Then a moment comes along, like one did today. Wherein you read a story about an employee of a noted analyst dressing up as the alter ego you conceived for her a couple years back on a lark and then proceeded to fill out, giving her all kinds of storylines and accoutrements like a spreader and truss bar and testicle clamps, which you suggested she used on the heads of various banks and it all becomes clear– you can see it before your very eyes– your undeniable impact on the world. Read more »
For at least one time in his life and possibly still, Combs subscribed to the business up front/party in the back mentality. Read more »
Jazzy-Jeff style. Do not test him on this one.
Operator: Steven Eisman, FrontPoint.
Steven Eisman: Yes, hi. I think it is pretty clear this was a very poor quarter, but there are larger issues here that I think you need to address. Frankly, the only accomplishment that this management team can truly point to is the survival of this Company, which I don’t mean to minimize, but otherwise, this management team has overseen a massive destruction of shareholder value. In fact, at the current price to book, Genworth is selling at a steep discount to both MGIC and PMI, the pure play MIs and this is probably because this Company does not meet its cost of capital in any of its businesses. In other words, the market currently is ascribing negative value to your non-MI businesses. It’s a pretty astonishing statement and I don’t get any sense of urgency from this management team as to how this is all going to be addressed. I think going down the current road seems to me a complete waste of time.
And later: Read more »