Archive for June 2011

  • 13 Jun 2011 at 7:57 AM

Opening Bell: 06.13.11

I.M.F. Reports Cyberattack Led to ‘Very Major Breach’ (NYT)
Several senior officials with knowledge of the attack said it was both sophisticated and serious. “This was a very major breach,” said one official, who said that it had occurred over the last several months, even before Dominique Strauss-Kahn, the French politician who ran the fund, was arrested on charges of sexually assaulting a chamber maid in a New York hotel.

IMF Mum On Details Of Cyber Attack (WSJ)
“We had an incident,” said IMF spokesman David Hawley. “We’re investigating it and the fund is completely functional.”

Roubini: ‘Perfect Storm’ May Threaten Global Economy (Bloomberg)
There’s a one-in-three chance the factors will combine to stunt growth from 2013, Roubini said in a June 11 interview in Singapore. Other possible outcomes are “anemic but OK” global growth or an “optimistic” scenario in which the expansion improves. “There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”

US banks to cut Treasuries use (FT)
Some of Wall Street’s biggest banks are preparing to cut their use of US Treasuries in August as a precaution against any turbulence that could follow if warring Republicans and Democrats fail to increase soon the US debt ceiling, a senior bank chief said …Investors worldwide own large amounts of the $9,700bn of debt that has been sold by the US government as part of their portfolios. But nearly 40 per cent of the existing US Treasury debt – about $4,000bn – is used to back deals in the repurchase, futures and swaps markets, say JPMorgan Chase estimates.

Banks battle over US tax law (FT)
Banks and foreign governments are mounting an increasingly desperate push against a sweeping US tax law that will force overseas institutions to report their American clients to the Internal Revenue Service.

CalPERS has been automatically deleting emails after 60 days (LA Times)
The California Public Employees’ Retirement System has begun automatically deleting any emails older than 60 days, raising concerns among watchdog groups that the giant pension fund could be destroying evidence of misdeeds. CalPERS has been under state and federal investigation over allegations that former executives and board members improperly influenced the fund’s investment decisions and strong-armed a medical benefits vendor to retain a former board member as a consultant, according to an internal review ordered by the fund and released in April.

Israeli Economist Enters Race to Lead I.M.F. (NYT)
With probably the most impressive résumé and the least chance of succeeding, Stanley Fischer, the governor of the Bank of Israel, has added his name to the list of candidates for managing director of the International Monetary Fund.

In Greece, Some See a New Lehman (NYT)
Bond traders and officials at the European Central Bank have been unified in their warnings that a restructuring of Greece’s debt would set off an investor panic similar to the one that followed the bankruptcy of Lehman Brothers. Continue reading »

  • 10 Jun 2011 at 5:14 PM

Write-Offs: 06.11.11

$$$ SEC Refuses to Disclose SAC Referrals to Grassley [WSJ]

$$$ Stocks Fall in Longest Dow Slump Since 2002 (Bloomberg)

$$$ US equity outflows largest in 10 months (FT)

$$$ Just $50 Billion Left in QE2 (MarketBeat)

$$$ Bank Of America to Shutter Bond Prop Desk (Deal Journal)

$$$ Judge narrows SEC lawsuit against Goldman’s Tourre (Reuters)

$$$ Bill Gross Is Selling His Hole in the Ground for $26.5 Million (NetNet) Continue reading »

NB: The S&P put out an estimate saying that the next crisis may cost $5 trillion in upfront costs just to deal with the large institutions and their assets. Where are we going to find with $5 trillion?
DR: Good question, where are we going to find it?
NB: I have no idea. And that’s the path we’re going down as a country.
DR: Counselor, you’re scaring me.
NB: You should be scared. I’m scared. Continue reading »

Morgan Stanley could shut down its trading businesses and the firm would be worth 40 percent more than yesterday’s share price, according to Brad Hintz, a Sanford C. Bernstein & Co. analyst…“We have long argued that absent a liquidity crisis, the mark-to-market balance sheets of Wall Street trading firms support a trough valuation at tangible book value,” Hintz wrote. “This is because at low valuations, an acquirer could simply liquidate the trading balance sheet, pay off the liabilities and walk away with more cash than they paid for the company. Thus, at certain P/TB levels, such as today, a broker is worth more dead than alive.” Hintz said he isn’t endorsing a dismantling of the trading operations. [Bloomberg]

“Exude confidence. It’s contagious. Walk into rooms planning to make it happen. If you assume something is impossible, it probably is. But if you’re confident that you’re supposed to be there, others will be, too.” [Businessweek via BI]

Two huge wins for Jim Cramer-endorsed investor Lenny Dykstra today. Continue reading »

One of the great equalizers in the city of New York, whether you’re a CEO or a summer intern, a billionaire or a mere hundred thousandaire involves beef. Specifically, that found at Shake Shake. Come summer, everyone in this city** waits an ungodly amount of time for their order at Shake Shack, no matter who they are. Senior employees at Credit Suisse, whose building is located across from the original Madison Park Shack, have attempted work-arounds for years, i.e. sending junior staff to wait on line and place orders for them, but still, they wait. Today, however, two viable options for not spending three hours waiting for your Double Shack Burger have emerged. Naturally, they come courtesy of the innovators at Goldman Sachs.

1. Get a job at Goldman Sachs or
2. Work near their downtown office and figure out the secret hand signal that was clearly used in the following scenario: Continue reading »