Yesterday we reported that BarCap US IBD had kicked off a new round of cuts, affecting all levels, with the Global Finance target thought to be around 10% of the headcount. We’re also told sacked employees were sent packing with quite the parting gift. Continue reading »
Archive for January 2011
JPMorgan Reserve `Bleeds’ Distort Record 2010 Earnings (Bloomberg)
JPMorgan will probably report record earnings of about $16.7 billion for last year boosted by a reduction in reserves for future losses. Fourth-quarter results, which the New York-based company plans to announce tomorrow, are likely to show a profit of $4.2 billion, or $1 per share, based on the average estimate of analysts surveyed by Bloomberg. About 40 percent of earnings for the first nine months came from money taken from loss reserves as U.S. banks dip into their funds, at least temporarily, and mask a revenue squeeze.
US Unlikely To Recoup GM Bailout, Panel Says (WSJ)
The U.S. government is unlikely to recover its entire $50 billion investment in General Motors Co., in part because the Obama administration unloaded a big block of shares in the company’s initial public offering at $33 a share rather than wait for a higher price, a federal panel said Wednesday.
Geithner says China needs faster yuan rise (Reuters)
“China still closely manages the level of its exchange rate and restricts the ability of capital to move in and out of the country,” Geithner said. “These policies have the effect of keeping the Chinese currency substantially undervalued.” He described China as focused on taking greater advantage of U.S. investment opportunities, gaining easier terms of market access and being able to buy U.S.-made high tech goods. “We are willing to make progress on these issues, but our ability to move on these issues will depend of course on how much progress we see from China,” Geithner said in an address delivered at Johns Hopkins’ School of Advanced International Studies.
AIG Share Sale May Place Investor Focus on CEO Succession Plan (Bloomberg)
Who wants this gig when Bobby’s done with it?
Moody’s Urges U.S., U.K., Germany, France to Control Spending (Bloomberg)
“All four countries face dramatic increases under their existing policy commitments arising from aging-related pension and health-care subsidies,” the ratings company said today in an e-mailed report from New York. “Future costs must be brought under control if these countries are to maintain long-term stability in their debt-burden credit metrics.”
Home Foreclosures Top 1 Million for First Time in 2010 (Reuters)
Banks foreclosed on 69,847 properties in December, bringing the year’s total to 1.05 million, topping the prior record of 918,000 homes seized in 2009.
Spanish Banks Not Reliant On ECB, Says Finance Minister (CNBC)
“If you are talking about financial assistance, for sure, not. But of course any of the countries of the euro area, we need all the others because we have to improve our economic governance so we have to work together. But if you are talking about a bailout, definitely not,” Salgado told CNBC.
‘Con’ Man Was Undie Suspicion (NYP)
A bumbling con man was caught with a big bulge in his pants — $500 in fake bills, cops said yesterday. Michael Lewis, whose undies were stuffed with the wad, and his pal Orville Stacy, both 24, were busted after a four-store Midtown spending spree Thursday in which they allegedly spent the funny money on food, including chips, guacamole, a protein bar and a can of soda — and got real money as change. The duo’s small purchases from stores close in proximity drew suspicion from cops on patrol, who began tailing the pair. They watched the men buy snacks from four shops near West 56th Street and Sixth Avenue, with Lewis allegedly passed bogus $20 bills while Stacy acted as a lookout. After the last stop, a Subway sandwich shop, cops stopped the men and examined the bills in Lewis’ pants — and noticed they had missing watermarks and incorrect coloring, sources said. Continue reading »
$$$ Morgan Stanley Mezzanine Fund Raises Nearly $1 Billion [WSJ]
$$$ Whitney to Banks: Forget Dividends, Do Acquisitions [CNBC]
$$$ Did Nouriel Roubini Inflate His Apartment’s Square Footage? [Curbed] Continue reading »
They just got a late start. Evidence of their hard work after the jump and yes, it’s most certainly NOT SAFE FOR WORK, unless you work at a firm where looking at women sans tops is cool.
**Shoveling snow, posing with shovels, same diff no diff. Continue reading »
Earlier this week it was reported that Harbinger Capital’s chief investment officer, Lawrence M. Clark Jr, had resigned to start his own fund. According to Reuters’ Matthew Goldstein and Emily Chasan, several other employees will have parted ways with Phil Falcone, though their departures were less than voluntary. Continue reading »
Behind Michael Steinhardt’s serious exterior is a man who knows how to break the tension. His own tension. Stockbrokers, on the other hand, are a bit on edge. Continue reading »
How Serious Do Canyon Capital Employees Take Their Responsiblity To Maximize Returns For Investors?
By Bess Levin
[Founder Joshua] Friedman says the meltdown had an impact on the firm even during its off-site meeting in September 2008, an annual event in which Canyon brings in financial experts to speak to its traders and analysts. In the middle of a beach volleyball team-building exercise in Santa Barbara, employees suddenly brought the game to a halt to strategize about a momentary upturn in the market. [Bloomberg via BI]
50 Cent Probably Didn’t Violate Any Securities Laws When Hyping A Penny Stock Via Twitter
By Bess Levin
This is a relief. Continue reading »
Get Ready For More Chances To Hear The Most Annoying Commercial On CNBC Throughout The Trading Day
By Bess Levin
An opulent Brooklyn banquet hall known for its over-the-top commercials promising to “make your dreams come true” is seeking city approval to make its own dream come true — adding a posh hotel. The owner of Grand Prospect Hall in Park Slope wants to build a 150-room, 11-story hotel on its adjacent parking lot. [NYP via DI]
As you may have heard, the first big snowfall of the season, back in December, turned out to be a little embarrassing for Mayor Bloomberg and the people tasked with removing said snow, given that on many streets, the latter failed to do so, and that the former’s initial response was “Yeah, and? Grow a pair.” This time around, they vowed not to be made fools and allocated approximately 50 snow-blowers and 100 trucks per block. With the precipitation beginning around 10PM last evening, Hizzoner and Co plowed like there was no tomorrow, working diligently in the early hours of the morning (waking some people up circa 2AM). As those of you traversing Manhattan today can see, an extremely thorough job was done. A bit too thorough if you ask a couple topless gals. Continue reading »
Bill Gross Elaborates On His “US Policy Makers Are Praying Mantises Having Sex With Us And Then Biting Our Heads Off” Metaphor
By Bess Levin
“I used the praying mantis metaphor in my recent investment outlook pointing out that there are consequences for mindless political thrusting and Washington spending policies.We as Americans eventually lose our heads the way a male mantis does in the process of reproduction. Americans’ answer to a bulging deficit seems always to be manana. Debt commission recommendations are always dead on arrival, bipartisan compromises result in no tax increases for anyone and an increase in $500 to $800 billion in the fiscal deficit. The point is the current and future generations of American mantises, male or female, will pay for this in terms of a price. They pay for in a number of ways. One in terms of dollar depreciation going forward. And two in terms of lower real wages and lower real interest rates, which are a cost for investors.” Continue reading »
