Net income dropped 21 percent but it still beat expectations so high-fives all around! Continue reading »
Archive for April 2011
Founder Stays Mum As Defense Rests (WSJ)
People close to the 53-year-old Galleon Group founder said he told them after his arrest that he intended to testify on his behalf. But putting the main defendant on the stand is a relatively rare strategy in white-collar criminal cases, because of the risk of a blunder during cross-examination by prosecutors. “I think on ‘cross’ he would be forced to explain difficult tape recordings,” said Charles A. Ross, a criminal defense attorney in New York. “There’s almost a burden-shifting that occurs when you put a client on the witness stand. I think that burden is a particularly difficult one for the defense to bear.”
Rajaratnam Jurors Hear Chiesi’s AMD Discussion as Testimony Ends (Bloomberg)
Prosecutors’ brief rebuttal of Rajaratnam’s weeklong defense included playing a recording of a phone call between Rajaratnam and former New Castle Funds LLC analyst Danielle Chiesi. During the Sept. 30, 2008, call, Chiesi asked Rajaratnam if he had bought 1 million shares of Advanced Micro Devices Inc. (AMD), calling the purchase “a very bold move unless you know what we know.”
Bernanke May Sustain Stimulus To Avoid ‘Cold Turkey’ End To Aid (Bloomberg)
The Fed chief’s top two lieutenants said this month the economy and inflation are too weak to warrant the start of a monetary-policy reversal. Investors and economists including David Kelly at JPMorgan Funds see that as a signal the Fed will keep its balance sheet at current levels by replacing about $17 billion a month in maturing mortgage debt with Treasuries.
Obama Embarks on Tour to Sell Debt Plan, Not Dwell on S&P Report (Bloomberg)
Obama is scheduled to spend three days traveling through states crucial to his 2012 re-election campaign to publicize his plan to reduce cumulative deficits by $4 trillion over 12 years.
Japan Ministers Confident in US Debt After S&P Move (Reuters)
“The United States is tackling fiscal issues in various ways, so I still think U.S. Treasurys are basically an attractive product for us,” Finance Minister Yoshihiko Noda told reporters after a cabinet meeting.
Ukraine’s Richest Man Buys UK’s Most Expensive Flat (FT)
Rinat Akhmetov, Ukraine’s richest man, has bought the UK’s most expensive flat at the One Hyde Park residential development in London’s Knightsbridge, for £136.6 million.
PIMCO is back in the market buying Treasuries (PMM)
Allegedly.
Goldman Sachs Spins Away From Success (Dealbook)
Sorkin: “Having studied Goldman’s statements closely, it appears the firm decided to take a Clintonian approach to parsing its words. Notice that Goldman and Mr. Blankfein always qualify their denials of the firm’s short bets by saying they weren’t “massive” or “large” or “consistent.” Such descriptions may be accurate. What’s large, or even massive, may be in the eye of the beholder.” Continue reading »
$$$ JPMorgan To Double Headcount In Brazil [Reuters]
$$$ “Michigan is giving hundreds of financial professionals and public employees a crash course in advising troubled municipalities, building an army of emergency managers that may become a model for other U.S. states.” [Bloomberg]
$$$ Jitters Put Focus Back On European Debt [WSJ]
Carl Icahn Likens Judge Saying He Owes Bill Ackman $8 Million To Being Wrongfully Accused Of Murder, Sent To Death Row
By Bess Levin
Five weeks ago, Carl Icahn announced he’d be closing the hedge fund he opened in 2004. Was this a sign retirement was next to come, some wondered? Hell no, Icahn recently told a reporter who checked in with the activist investor. “What else would I do? Play shuffleboard somewhere?” Mr. Icahn said from his vacation home in Florida. Carl’s got no time for anything so patently ridiculous, and is in fact busier than ever. What’s he been up to? Continue reading »
Eliot Spitzer Wants Attorney General Eric Holder To Prosecute Goldman Sachs Right This Second
By Bess LevinIf Holder doesn’t he should quit his job, as the charges are “screaming out to be brought,” according to Ness. Continue reading »
Depending on how much cash you’ve got. Continue reading »
Earlier today, Raj Rajaratnam’s 7-man legal team rested its defense of the Galleon founder, accused of insider trading. This unfortunately means that the man of the hour will not take the stand, as some had hoped, but there may be a few more surprises in store. Continue reading »
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Columbia Business School’s “I Would Do Anything For This Job” Makes Us Question Everything We Know
By Bess Levin
As we mentioned last week, in the grand tradition of business school follies, the performances generally have the same sort of appeal as a train wreck you can’t look away from. Which is why we were pretty surprised by this year’s offerings from NYU Stern, which were actually fairly amusing in their own right (in particular, the Black Swot). Naturally, we assumed this was an aberration and not some sort of newfangled trend wherein these things have entertainment value. Then something happened a few hours ago that frightened us and left us searching for answers. Continue reading »
Sometimes name recognition alone isn’t enough to attract lots of money. Zoe Cruz’s start-up hedge fund, Voras Capital Management, which bets on broad economic trends, began trading in mid-2010 but has struggled to get much past the $220 million mark, say people familiar with the firm. Another challenge for Ms. Cruz, these people say, is that in the wake the financial crisis investors have been favoring funds run by traders with recent track records over those run by executives. Still, Ms. Cruz, who is actively trading in her hedge fund, is being closely followed by investors and could raise more money, these people say. Ms. Cruz says she sees a big opportunity. “People aren’t going to give me $3 billion just because I’m Zoe Cruz,” she says. “That’s a positive thing.” [WSJ via Heidi Moore, earlier]
As you may have heard, Donald Trump has been mulling a run for president, which he says he’ll make a final decision on by June. For the last several months he’s been putting his credentials out there (unlike our pussy diplomats who went to school to study “how to be nice,” Trump is the “right messenger” to deliver news to people like the Chinese, who fear him and know he means business) and debating the issues (namely China, which we should stop treating to “beautiful five-star meals” and needs to be told “If you don’t stop manipulating your currency, we’re going to put a 25 percent tax on your products that come into the United States”). Over the weekend The Don took on one of his potential competitors for the boss of the US gig, Mitt Romney. Trump says he’s more qualified than the former Governor of Massachusetts for a couple of reasons. Continue reading »
