Earlier this morning, Raj Rajaratnam was found guilty on 9 counts on insider trading and 5 counts of conspiracy. He is probably not in the best of moods right now, as he may be going away to a place that doesn’t give you extra mayo on the side of your tuna sandwich, for nearly 20 years. But there is some good news, which is that someone will most likely make a movie about this whole thing. To give producers a jump start, we will start the casting process now. Continue reading »
Archive for May 2011
As you may have heard, in the last month, Steve Cohen has emerged as the frontrunner for a minority stake in the New York Mets. Cohen’s partial ownership would undoubtedly please a great many people- the organization, which needs the money, the players, who need the discipline, the the SAC employees, who will take over the grill at the in-house Shake Shack when the burgers are deemed shit, and most of all, the fans, who stand to benefit the most from Steve’s leadership, as you don’t win rings without having a guy around who will light a fire under everyone’s ass. And yet, it sounds like none of that is gonna happen. Continue reading »
On all 14 counts (9 counts of insider trading, 5 of conspiracy). Raj-Raj now faces up to 19.5 years in prison. Continue reading »
Or may he did and “patently ill-advised” and “grossly wrong” were compliments? Continue reading »
Commodity hedge funds upbeat after mauling (FT)
Last week saw the largest daily trading volume in Brent crude’s history as investors – a large proportion of them hedge funds – began to liquidate positions in a stampede to reduce risk. It was a rush to the exits that was seemingly without cause, however. Many fund managers are at a loss to explain what triggered the panic, dismissing the explanations that have been proffered – weak US economic data, a hike in commodities trading costs or even hedging upcoming equity exposure to the giant Glencore listing…But crucially such losses – unattractive though they are – have done little, if anything, to dent managers’ confidence in the long commodities play.
AIG Offering Near Low End of Range (WSJ)
American International Group Inc. and the Treasury decided to move ahead with a stock offering this month for about $9 billion, far less than what officials had once hoped to fetch, people familiar with the decision said…[AIG's board] decided to proceed with plans for an offering near the low end of a range envisioned by people familiar with the plan of $7 billion to $25 billion, depending on investor demand and market conditions.
Banks Float $5 Billion Deal to End Foreclosure Probe (WSJ)
Such an offer is considerably less than the amounts sought by state and federal officials, some of whom are asking for more than $20 billion in penalties. The banks’ figure comes as mortgage companies and state and federal officials continue their efforts to strike a settlement of investigations sparked by allegations of “robo-signing” and other questionable foreclosure practices that came to light last fall.
Preemptive strike against high prices may be needed, Fed official says (WaPo)
The Federal Reserve needs to be prepared to take preemptive action against even the possibility of a surge of higher prices, a senior official of the central bank said Tuesday. Jeffrey M. Lacker, president of the Federal Reserve Bank of Richmond, added in an interview that he doesn’t think the recent rises in the price of fuel and other commodities will spiral into a broader inflation, but he cautioned that the central bank needs to remain vigilant.
Dodd-Frank Dissenters Sound Off (Dealbook)
And Ken Griffin, founder of the $15 billion hedge fund Citadel Investment Group, went the furthest by proclaiming that not only would the legislation not work as proposed, but it is “going to deeply entrench crony capitalism into the very fabric of our financial system, which I am terrified about.” Continue reading »
$$$ NY Fed ‘Pleased‘ With Sale of Ex-AIG Subprime Bonds (WSJ)
$$$ At around 10 last night, Lady Gaga arrived in a glowing egg positioned on top of a cart filled with cakes and macaroons. Escorted by brawny men in sleeveless Roman tunics, the cart rolled past hedge-fund founders Dan Och, David Einhorn, Steven A. Cohen, Ken Griffin, and more than 4,000 others gathered in the Jacob K. Javits Convention Center for the Robin Hood Foundation benefit. Soon “the Gaga,” as emcee Brian Williams called her, emerged onstage wearing a cream outfit that exposed her midriff. “I’d like to thank all the rich people for donating tonight,” she said. “And when I say rich, I mean rich in spirit.” (Bloomberg)
$$$ Goldman Sachs Cuts First-Quarter Estimate for Possible Legal Losses by 21% (Bloomberg)
$$$ Goldman Goes Long US Government Debt (CNBC)
$$$ JPMorgan denies gouging Lehman in $8.6 billion fight (Reuters) Continue reading »
Unlike some people who lack the stomachs, this fund is sticking to its oil positions. Continue reading »
Greenlight Capital’s Jennifer Goff and Amelia Wierzbicki, acting on a dare by COO Daniel Roitman, who is said to have “promised to donate $2,000 for each couple who showed up at the event in Robin Hood outfits.” [Bloomberg]
Last month, Warren Buffett received some devastating news- his beloved soap, All My Children, was getting the ax. The cancelation was difficult to take not only because Buffett has faithfully kept up with the characters, who felt more like friends, every day for the 50-odd years it’s been on, but because as a struggling actor, it was the one gig he could count on. Over the years, Buffett has appeared on AMC a handful of times and with the pricks at ABC killing it off, it was unclear what he was gonna do. Show up to open casting calls? Take his clothes off for some producer looking to take advantage? Luckily, it appears as though we may not have to find out. Continue reading »
Goldman said that it’s been notified of the probe via “oral advisement,” or the action known as “words exiting a human’s mouth,” to the layman. Continue reading »
Looking ahead to next year’s bonus already? No? Well management at the Royalest bank at Scotland is and they’d like everyone to start managing their expectations now- count yourself lucky if they continue letting you into the building. Continue reading »
