That’s right, rewrite the past because the truth hurts too much. Continue reading »
Archive for October 2010
Goldman’s Profit Slips, Tops Forecasts (MarketWatch)
GS reported third-quarter net income of $1.9 billion, or $2.98 a share, down from $3.19 billion, or $5.25 a share, in the year-ago period. Wall Street analysts polled by Thomson Reuters had forecast quarterly profit of $2.32 a share, on average. Economic conditions “continue to be challenging in a number of important markets,” said Chief Executive Lloyd Blankfein in Goldman’s earnings release.
Goldman’s Expenses Drop (Bloomberg)
Third-quarter compensation fell to $3.83 billion, helping cut total operating expenses 20 percent to $6.09 billion. The firm allocated $13.1 billion for compensation in the first nine months of the year, or enough to pay each of its 35,400 employees $370,706 for the period. The figure fell 21 percent from the $16.7 billion set aside for compensation in the first nine months of 2009.
Bank of America’s Losses Widen On Write-Downs (WSJ)
The bank posted a $10.4 billion write-down tied to new financial regulations in the third quarter as the Charlotte, N.C., company’s revenue rose and its investment bank’s fixed-income desk turned in better results than competitors. Because of the write-down, BofA’s third-quarter loss widened to $7.3 billion, or 77 cents a share, compared with a loss of $1 billion, or 26 cents a share, a year earlier. Without the noncash write-down, the bank earned $3.1 billion, or 27 cents a share, and reported much-improved credit quality. Revenue climbed 2.3% to $27 billion. Analysts polled by Thomson Reuters had recently forecast earnings of 16 cents a share on $27.2 billion in revenue.
Brazil Steps Up Action in `Currency War,’ Seeks Cease-fire (Bloomberg)
Brazil’s real dropped the most in two weeks after Finance Minister Guido Mantega raised taxes on foreign inflows for the second time this month to prevent appreciation and protect exports from what he called a global currency war. “This currency war needs to be deactivated,” Mantega told reporters late yesterday. “We have to reach some kind of currency agreement.”
Banks Restart Foreclosures (WSJ)
Bank of America reopened more than 100,000 foreclosure actions, declaring that it had found no significant problems in its procedures for seizing homes. GMAC Mortgage said that it also is pushing ahead with an unspecified number of foreclosures that came under intense pressure.
Teddy Forstmann: I’m Being Extorted By A Shake-Down Artist (TDB)
In a wide-ranging interview with The Daily Beast, Forstmann denied all the allegations, and vowed revenge against Agate, whom he called a “stalker,” a “shakedown artist,” and a “scumbag lowlife.” But as Agate’s charges have made their way into the press, Forstmann has had to defend himself before clients…”At first this was an annoyance,” Forstmann said. “But now the sheer madness of it all is having an impact on my business. By the way, I didn’t even know what shvartze meant before all this came about. Can you imagine I adopt two black kids without a wife and I’m a racist? (Forstmann, a lifelong bachelor, is now dating celebrity chef Padma Lakshmi.) That shows he’s really insane.” Continue reading »
$$$ BofA Sets Foreclosure Review Timetable [WSJ]
$$$ Luke Holden’s Luke’s Lobster: The owner went from UBS to CS Capital to bringing New York something it sorely lacked: A tasty, affordable lobster roll. [BW]
$$$ Paul Tudor Jones Says Crash Shows Need for Price Limits [Bloomberg] Continue reading »
Also, Vikram Pandit has done “a fabulous job.” Continue reading »
For three reasons:
1. The school is called the “Hebrew Wizards,” which makes it sound pretty badass (compared to, you know, your average Hebrew school).**
2. The employees of the neighboring hedge fund are always up to take part in a 3-legged race, and regularly volunteer bodies to take part in the annual Purim play.
3. Prizes for winning various contests include, I don’t know, freaking iPads. Continue reading »
Clients Going To Goldman Sachs For Something Other Than Having Hair Stroked, Emotional Needs Met
By Bess Levin
“Goldman’s clients are telling the firm, ‘Yes, you make us money. Yes, you’re the best on the Street. But, no, I don’t trust you,’ ” said one source. “Goldman isn’t there to give you the warm and fuzzies,” said a executive at a rival bank. “But there’s a sense on the Street that you want them in your corner in a pinch.” [NYP]
Columbia Reminds B-School Students To Brush Teeth, Remove “Tacky Cufflinks” Before Interfacing With Potential Employers
By Bess LevinThis is the second in a two-part series from CBS re: not “acting in a socially undesirable way runs a strong risk of branding you as undesirable.” This apparently includes wearing gold (instead of the more desirable silver) watches. Next up, the person sending these memos will pick one student at random, show up at his or her apartment, forcibly shampoo and condition their hair and pick out said student’s clothes prior to the next recruiting event.
To: ‘ibc-members@bettyblue.gsb.columbia.edu’
Cc: ibc-board@bettyblue.gsb.columbia.edu
Subject: [IBC] Personal hygieneDear 1st Year Members,
It has come to our attention (through complaints from IBC board representing firms they are going to full time) that some of you may not have followed personal hygiene basics during recruiting events. We understand that it is an incredibly intense recruiting period, and is very hard to find time for yourself, but this is a friendly reminder on some dress code and personal hygiene basics: Continue reading »
In the thirty-five years since its founding, Ray Dalio’s Bridgewater Associates has done quite well for itself, posting the sort of returns clients appreciate. To that end, the firm’s Pure Alpha Strategy was up 31% for the year through August and, according to a Bridgewater spokeswoman, has “outperformed the market over the last three years by more than 70 percent.”
How do they do it? Are they role-playing hyena and wildebeest again? Is the market the wildebeest in this scenario? As B-Water’s ability to make it rain does not appear to be covered in the firm’s handbook, co-chief investment officer helpfully broke it down today.
The short version: “Either we are of average intelligence and everyone else in the industry is an idiot or we are fucking geniuses and make people of marginally respectable intelligence (you) look like morons. Take your pick.”
The long version: Continue reading »
“The former Countrywide Financial Corp. chief agreed Friday to a settlement that requires him to pay 16 cents out of his own pocket for every dollar federal authorities claimed he had taken out of the company in ill-gotten personal gains.” [HP]
Are Columbia Business School Students Having Trouble Playing Nice With Classmates, “Smothering” Bankers?
By Bess LevinAccording to this email, yes. Seems that the future business leaders of the world are just so excited to show potential employers what they’ve got that they 1) get up into recruiters’ asses more than is socially acceptable and 2) cockblock their friends from doing ths same. The lack of finesse is apparently embarrassing the school and has resulted in a list of rules to live by during networking events, with heavy emphasis on Circle Etiquette.
To: ‘ibc-members@bettyblue.gsb.columbia.edu’
Cc: ibc-board@bettyblue.gsb.columbia.edu
Subject: [IBC] Break-out Sessions with Bankers–PLEASE READ CAREFULLYDear 1st years –
It has come to our attention that some of you have already managed to become notorious for their willingness to elbow their peers out of the circle around senior bankers and virtually attack the bankers with questions, thus preventing other students from networking and participating in the conversation. This is never a good strategy and acting in a socially undesirable way runs a strong risk of branding you as undesirable not just to your classmates but also to recruiters. Once you feel that you have asked a couple of questions, and perhaps received a business card, do not monopolize the banker’s time by standing around awkwardly or asking additional questions. Let your classmates play as well. Furthermore, such behavior shows that you are aggressive and non-collegial, and therefore not a pleasant person to work 100-hour weeks with.
Bankers are very observant people. Moreover, it is much easier to remember somebody with a bad impression than with a good impression – do not smother the bankers with too many questions. Continue reading »
Citigroup Profit Beats Estimates on Decline in Loss Provisions (Bloomberg)
Citi said profit rose to $2.17 billion, beating analysts’ estimates on a decline in provisions for bad loans. Third-quarter net income was 7 cents a share and compared with profit of $101 million in the same period a year earlier, the New York-based bank said today in a statement. Ten analysts surveyed by Bloomberg estimated per-share earnings of 5 cents a share at the bank, the third-biggest in the U.S. by assets. The results bring Vikram Pandit, 53, one quarter closer to achieving his first annual profit after losses in 2008 and 2009 that totaled $29.3 billion.
Chicago Fed President Warns Of Liquidity Trap (FT)
Charles Evans, president of the Chicago Fed, said that “in my opinion, much more policy accommodation is appropriate today” because “the US economy is best described as being in a bona fide liquidity trap”, a point where ultra-low interest rates and high savings rates conspire to make monetary policy ineffective.
Goldman Pushes Its Image Rehab (WSJ)
The most concrete move so far has been the hiring of a new vice president in its investor-relations department who has publicly advocated some changes Goldman has resisted in the past. Bess Joffe, who had worked for London-based shareholder-advocacy firm Hermes Equity Ownership Services, has pushed companies to change their boards and to improve disclosure, said Colin Melvin, the firm’s chief executive. She started at Goldman this month. Attempts to reach Ms. Joffe were referred to a spokesman, who declined to comment on her behalf.
Banks Face Mortgage Scrutiny as $49 Billion in Value Vanishes (Bloomberg)
Citi, Bank of America, Wells Fargo and JPMorgan saw $49.3 billion in market value shaved off in the three days ended Oct. 15 amid concern that rising costs of faulty foreclosures will eat into profits. JPMorgan set aside $2.3 billion of reserves to cover mortgage repurchases or litigation expenses, including some for “mortgage-related matters,” the lender said Oct. 13.
Banks Shared Clients’ Profits, but Not Losses (NYT)
“If I were a shareholder, I would say, ‘I love Jamie Dimon to death because he’s going to go out there and make money every way he can, no matter what happens to his customers,’ ” Jerry D. Davis, Chairman of the municipal employee pension fund in New Orleans, said. “He’s making money off of me.”
Trump Stymied in Bid to Build at NY’s Jones Beach (AP)
“The word I’d use is incomprehensible,” Trump told The Associated Press in a recent telephone interview. “I was going to build a magnificent building on the boardwalk that would have made Robert Moses envious and proud. It would have been the best building in the entire state parks system.” Continue reading »
