It would be a “moral disaster” if the United States were to default on its debts and become unable to pay its obligations, Jamie Dimon said at an appearance in Colorado Thursday evening. The U.S. is the financial linchpin of the world, and the economic effects of the U.S. defaulting could be “potentially catastrophic,” he said at a dinner for the University of Colorado Denver Business School. “It will dwarf Lehman,” Dimon said. [HP]
Archive for May 2011
As you more than likely know by now, the (very) recently resigned IMF chief Dominique Strauss-Kahn is awaiting trial for the alleged sexual assault of a Sofitel maid over the weekend. At this time there are of course many unanswered questions, though slowly but surely, various details are coming out helping us to put the puzzle together. Today, for instance, a Newsweek reporter informs us that the maid? Got the raw end of the stick after DSK, apparently in heat, had already been rebuffed by at least one other target.
Dominique Strauss-Kahn allegedly was looking for love, or at least his version of it, from the moment he checked into his hotel in New York City last Friday, May 13. As soon as he got to his suite, 2806, he called back down to the front desk and asked the receptionist if she would like to join him for a drink, according to sources familiar with the prosecution’s case against the former head of the International Monetary Fund and contender for the presidency of France. The receptionist demurred.
He plays hardball over travel reimbursement and wants to make sure his personal calls are kept on the DL. Continue reading »
If you’ve been closely following the government’s Insider Trading Fest(ivus) 2010/2011 you know that one thing that’s emerged is a detailed guide to how one should go about destroyed evidence of securities violations that a jury would not look upon kindly. Garrett Bauer spoke to us at length about the benefits of washing versus burning dirty money while Donald Longueuil, the foremost expert on the matter, provided a step-by-step guide to getting rid of incriminating USB drives (you’ll need: two pairs of pliers, four plastic baggies, one North Face fleece). Yesterday, an (alleged) accomplice of (accused) insider trader/former Galleon employee Zvi Goffer added a chapter on getting rid of a cell phone that could cause trouble. Continue reading »
That’s right gang, we’re all going to be aunts and uncles in 4-5 months, ’cause Becky Quick’s having a baby. Continue reading »
“I hope something happens before the 2nd of August because if that comes and brinkmanship continues between the Republicans and Democrats, between Congress and the President, that’s a time bomb…You cannot play games with this. This is gambling. This is the United States. You’re leading the whole world, economically-speaking. I hear a lot about China and India. They’re all good run but they’re not the United States. The financial community of all the economies in the world is the United States. This remains for many years to come. You cannot play games with that at all.” Continue reading »
Do those pillows look like they need fluffing?
As you may have heard, recently resigned IMF chief Dominique Strauss-Kahn was granted bail yesterday and will no longer be forced to bunk on Riker’s Island, while awaiting trial on rape accusations. Starting today, DSK and his wife will be renting an apartment at the Bristol Plaza on East 65th and Third Avenue, for an estimated $8,800-$14,200. In exchange, S-K will have access to a pool, gym, soaking tub and “daily maid service.” The Bristol describes itself as being “better than a hotel,” and while it’s unclear exactly what that means (do they allow guests’ alleged sexual assault go unreported unlike certain Midtown establishments that you can bet will be getting a nasty write-up on TripAdvisor?), DSK will presumably get to the bottom of it and report back. Here are a few more interior shots of the new pad: Continue reading »
Goldman Braces for Federal Subpoenas (WSJ)
Goldman Sachs executives expect to receive subpoenas soon from U.S. prosecutors seeking more information about the securities firm’s mortgage-related business, according to people familiar with the situation. Officials at the New York company believe the Justice Department will demand certain documents and other information, possibly within days, these people said.
FrontPoint Partners to Close Funds After Redemption Requests (Bloomberg)
FrontPoint Partners LLC will close some of its hedge funds after clients asked to withdraw money amid charges a manager benefited from an illegal stock tip. “We have received capital redemption requests from some of our clients,” Steve Bruce, a spokesman for Greenwich, Connecticut-based FrontPoint said in a statement today. The firm “will be winding down select strategies.” FrontPoint oversaw $7 billion at the start of November before Chip Skowron, a co-portfolio manager of its health-care funds, was tied to claims by prosecutors that the firm got advance notice on drug-trial results. U.S. officials are pursuing a crackdown on insider-trading at hedge funds, with more than 40 people pleading guilty or facing criminal charges or civil lawsuits for benefiting from non-public information.
Flood of Fees Flows Into Bank Coffers (WSJ)
Fees from IPOs already total $1 billion this year, double the level of last year, and are on pace to hit $2.5 billion, said Richard Peterson, an analyst at Standard & Poor’s Corp. Except for 2006, it would be the biggest year for IPOs in the U.S. since the tech boom ended in 2000.
At I.M.F., Men on Prowl and Women on Guard (NYT)
The laws of the United States do not apply inside its walls, and until earlier this month the I.M.F.’s own rules contained an unusual provision that some experts and former officials say has encouraged managers to pursue the women who work for them: “Intimate personal relationships between supervisors and subordinates do not, in themselves, constitute harassment.” “It’s sort of like ‘Pirates of the Caribbean’; the rules are more like guidelines,” said Carmen M. Reinhart, a prominent female economist who served as the I.M.F.’s deputy director for research from 2001 to 2003. “That sets the stage, I think, for more risk-taking.”
Long-Ago Affair Might Damage Turkish Candidate’s Chances to Lead I.M.F. (NYT)
But, [Kemal] Dervis, it turns out, has a secret that could disqualify him from being considered for the job. Years ago, while a senior executive at the World Bank, he had an affair with a female subordinate who now works at the I.M.F., according to a person with direct knowledge of the affair.
Contrarian Investor Shuns Hot Idea for Bigger Picture (DealBook)
Mr. Thiel is shunning the most popular Internet start-ups because they are not “taking civilization to the next level.” Instead, he’s placing bets in health care, biotechnology and artificial intelligence companies — areas most of his peers have shied away from…According to Mr. Thiel, not enough energy is spent tackling big, challenging problems, like space exploration. Instead, many people are chasing incremental progress and short-term gains. Continue reading »
$$$ Strauss-Kahn to Get at Least $250,000 Pension From IMF (CNBC)
$$$ The IMF’s Next Leader: The Betting Begins (The Economist)
$$$ Jobless Claims in U.S. Fall More Than Forecast to 409,000, Reversing Surge (Bloomberg)
$$$ LinkedIn’s first-day stock pop: Not even close to 1990s dot-com madness (LA Times)
$$$ LinkedIn Helped By Lack of Shorting, Put Options (MarketBeat)
$$$ Glencore debut underwhelms investors (FT)
$$$ Bill Ackman Likely Takes $200 Million Bath on Borders (Deal Journal)
$$$ UBS’s McCann Denies Speculation of Talks With Wells Fargo (Bloomberg)
$$$ Carlyle Group Said to Assemble $950 Million for First South America Fund (Bloomberg) Continue reading »
It presupposes that yes he did what’s been alleged but that it was a misunderstanding. Continue reading »
