Last week reported that Jamie Dimon’s bags were packed and ready to go to Tokyo. Apparently he’s arrived today and plans to speak with employees and clients present during earthquake. And rebuild the affected areas, with his bare hands.
Archive for March 2011
US Will Call Blankfein To Testify At Rajaratnam Trial (Bloomberg)
Possibly as early as this week.
In Galleon Case, Sides Clash Over Goldman Chief (WSJ)
“Rajaratnam might suggest, for example, that because Goldman Sachs is tied up in many different legal proceedings, the firm—and by extension its CEO, Mr. Blankfein—is not to be trusted,” prosecutors wrote in the letter. A Goldman spokesman declined to comment.
Banks Hit For Credit Union Ills (WSJ)
In one of the broadest accusations that Wall Street helped cripple financial institutions during the crisis, the National Credit Union Administration, or NCUA, has threatened to sue several investment banks unless they refund over $50 billion of mortgage-backed securities sold to the five institutions, called wholesale credit unions. The NCUA is accusing Goldman Sachs Group Inc., Bank of America Corp.’s Merrill Lynch unit, Citigroup Inc. and J.P. Morgan Chase & Co. of misrepresenting the risks of the bonds to wholesale credit unions, which loaded up on the bonds in their role of investing on behalf of retail credit unions, according to people familiar with the situation.
Dimon Makes $20 Billion AT&T Loan Deal In Bid For Dominance (Bloomberg)
“He wants to win, and he doesn’t want to win by a small amount,” Richard Bove, an analyst for Rochdale Securities LLC in Lutz, Florida, said yesterday in an interview. “He wants to win big and dominant. He wants to be known as the next J.P. Morgan.” Bove has a “buy” rating on JPMorgan.
Fed Won’t Let Bank Of America Raise Dividend (WSJ)
Bank of America said in a regulatory filing it had submitted a plan to the Fed in the wake of the latest round of government stress tests that included “a modest increase in its common dividend starting in the second half of 2011,” but that the Fed had “objected to the proposed increase in capital distributions for the second half of 2011.”
Gaddafi: West Will End in ‘Dustbin of History’ (Reuters)
“This assault … is by a bunch of fascists who will end up in the dustbin of history,” Gaddafi said in a speech followed by fireworks in the Libyan capital as crowds cheered and supporters fired guns into the air.
Chris Brown follows violent breakdown on ‘Good Morning America’ with game of basketball in NYC (NYDN)
Chris Brown blew off some steam on Tuesday after his violent outburst at “Good Morning America” by jumping into a pick-up basketball game in Manhattan’s West Village. The volatile rapper hit the typically crowded West 4th street courts just hours after throwing a tantrum at ABC’s studios following his interview with Robin Roberts, who asked him about his infamous attack on former girlfriend Rihanna in 2009. Earlier in the day, Brown had stormed out of ABC’s Times Square studios shirtless after breaking a window. “He looked like he wanted to kill somebody,” said a “GMA” insider. “He went completely nuts. He just walked off the set, ripped off his shirt and went into the room and threw a chair and broke the window.” Read more »
$$$ A key witness against Raj Rajaratnam testified he gave the Galleon Group founder secret information about Intel Corp. because “we were very good friends.” “Mr. Rajaratnam is—was—a very good friend of mine,” former Intel executive Rajiv Goel told jurors at Mr. Rajaratnam’s insider-trading trial Tuesday. “He was a good man to me. I was a good pal, a good person to him.” [WSJ]
$$$ Glencore Said Near to Hiring Eight Banks for $10 Billion IPO [Bloomberg]
$$$ Boon for Boutique Banks Continues With AT&T Deal [CNBC] Read more »
Former NFL Player Lawrence Taylor Invokes Words Of David Tepper, Other Greats To Explain Patronizing Underage Prostitute
By Bess LevinIf you’ve been keeping up with your ex-Hall of Famer and/or hooker news, you know that former linebacker Lawrence Taylor was recently sentenced to six years of probation for having sex with an underage prostitute. Interviewed on the verdict this afternoon, Taylor was probed on the question of whether or not he knew the girl was underage and if the answer is no, as he claims, how could he have not known? Taylor offered a whole bunch of explanations, all of which had him loosely quoting various men who would probably rather not have their words sullied by his extracurricular activities. Herewith, the rationales offered by Taylor, and the individuals from which he cribbed the lines. Sayeth Taylor:
* “This was a working girl who came into my room. She told me she was 19. It is what it is.” [David Tepper claims to have popularized the phrase 'it is what it is.']
* “I made a phone call to a friend and he made a phone call. It’s the world of prostitution. You never know what you’re going to get.” [Forest Gump] Read more »
Can you name the CEO of HSBC? Could you rattle off a list of his favorite foods, like you could with Lloyd, or the girl he lost his virginity to, like you could with JD, which is to say, do you treat him like a celebrity you have a moderate to major obsession with (or just some banker)? No and no? That might’ve hurt Stuart Gulliver’s ego in another time and place (like last year when he got paid a 2.9 million-pound bonus) but now his tears are dried by the 13.3 million pounds ($22 million) compensation package he’s set to receive. Read more »
Gasparino: Goldman Sachs Lied To Me, Execs Michael Evans And Michael Sherwood Frontrunners For Job That’s Not (Yet) Available
By Bess LevinLast week, Charlie Gasparino reported that he’d spoken to a bunch of Lloyd Blankfein’s ‘friends,’ who’d told him that Blankfein a) hates his job running Goldman Sachs and b) has been saying he’s going to leave the firm by the end of the year. Goldman denied the report, promising Lloyd will be with us for years to come. False!, Chaz claimed and today provides names of two executives who will potentially take over for Lloyd at some point in the future. Read more »
The French economy minister said it was futile to continue castigating bankers for their role in the financial crisis, arguing that attention should shift to making sure the banks returned to their core role of financing growth. “It’s time for accountability from everybody, not for bashing,” Lagarde said at a banking conference in Paris on Tuesday. [Dealbook]
As you may have heard, Donald Trump has announced he’s thinking about running for President of the United States. Item number one on his agenda, should he be elected? Dealing with this China business. According to the Don, “nobody, other than OPEC, is riping off the United States like China,” and he’s had it. “They’re making all our products, they’re taking all our jobs and then they loan the money back and we pay them interest. It’s an amazing phenomena.” Should there be any confusion, Trump, who knows China better than anyone because he buys curtains from them, would like everyone to get it through their heads that “China is an abuser. China is not our friend.” How do we stop the cycle of abuse? Don’s glad you asked. First off, we stop playing Mr. Nice Guy and we start playing hard ball. And what will send a message we’re playing the hardest of ball? Taxing their stuff at 25 percent and taking away those fancy dinners you know they love so much. Read more »
But remind it it could be doing better. Read more »
Deutsche Bank Loses Swaps Case (WSJ)
The German Federal Court of Justice ruled that Deutsche Bank inappropriately advised bathroom-supplies company Ille Papier Service GmbH on the risks involved in buying a complex financial derivative known as a “spread-ladder swap,” which the company purchased in 2005 to limit interest payments on its loans. The court ruled that Deutsche Bank must pay €541,000 ($769,356), plus interest, in damages.
Steam Rises from Japan Plant; New 6.4 Quake off Coast (Reuters)
According to the U.S. Geological Survey Web site, a 6.4 magnitude earthquake struck near the east coast of Honshu. The earthquake struck at 6.19 pm (0919 GMT) 90 kilometers east of Iwaki, Honshu at a depth of 27 kilometers, the USGS said…Smoke and steam rose from two of the most threatening reactors at Japan’s quake-crippled nuclear plant, suggesting the battle to avert a disastrous meltdown and stop the spread of radiation was far from won.
Altman’s Evercore Climbs Wall Street’s M&A Ranks With AT&T Coup (Bloomberg)
The company’s stock jumped 12 percent yesterday as investors anticipated a boost in fee revenue from the firm’s work on AT&T Inc. (T)’s $39 billion takeover of T-Mobile USA, this year’s biggest acquisition. “We are not a small boutique anymore,” Altman, 64, said in an interview. “We now have advised on three of the five largest global merger agreements of 2011.”
Pimco Said to Raise $1.5 Billion for Fund Targeting Bank Assets (Bloomberg)
The Pimco Bravo fund, short for Bank Recapitalization and Value Opportunities, will buy debt such as troubled commercial and residential mortgages, and may invest directly in banks through securities including warrants and convertible debt. Pimco is still accepting money and expects to raise $2 billion to $3 billion in total before a final close later this year.
Goldman Partnership Memo Stirs Succession Talk (Dealbook)
Goldman sent a brief e-mail to employees on Monday announcing that Michael S. Sherwood would succeed the firm’s president, Gary D. Cohn, as chairman of the partnership committee.
Japan Maintains Threat Of Further G-7 Action (WSJ)
Japanese currency officials on Tuesday maintained the threat of further yen-selling intervention by the Group of Seven leading industrialized nations, saying joint action isn’t limited to last week’s coordinated market intervention.
AIG May Face Rivals in $15.7 Billion Bid for Assets Held by Fed (Bloomberg)
Barclays is among investors considering making a counter offer, the Financial Times reported.
“We have been told that someone else was putting together a bid,” AIG Chief Executive Officer Robert Benmosche, 66, said in an interview. “I think we can offer a little more, but the price we offered is about it. Until I see a competing bid, I’d have to wait and see.”
Man arrives to Sullivan court for DWI hearing drunk, carrying beer (Times Herald)
A Swan Lake man facing a felony driving while intoxicated charge showed up to Sullivan County Court on Monday with a bag full of beer and was promptly thrown in jail without bail. Keith Gruber, 49, had a scheduled 10:30 a.m. pretrial hearing. Gruber came to court about an hour and a half late carrying a black bag that contained four cans of Busch beer. He also was carrying an open can of Busch beer and was drunk, authorities say. He tried to throw away the can. Read more »
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