The short version: suck it. The longer version: Continue reading »
Archive for July 2011
Pacific Investment Management Co., seeking to raise $600 million for a fund that would invest in residential mortgages, agreed to slash its management fee should the fund suffer losses. Pimco REIT Inc., which filed for an initial public offering in April, disclosed last week that its annual management fee would decline to 1.0 percent from 1.5 percent if the fund loses money over a one-year period…“Investors have complained that you shouldn’t be able to earn a fee if the entity is losing money,” said Merrill Ross, a REIT analyst at Wunderlich Securities Inc., a regional brokerage based in Memphis, Tennessee. “But no one has ever offered this as a resolution before.” [Bloomberg]
Not feeling so hot today? Kind of wishing it wasn’t frowned upon to catch a few winks under your desk or curled up in the stall of the men’s room? Vowing to never again consume the amount of alcohol you did over the past three days, so help you god? CNBC knows it’s not possible for you to lay off the sauce for more than 12 hours but if you’re willing to get real for 1 sec, would like to help. On Worldwide Exchange this morning guest Tina Hedges recommended “prevention” as the best cure for a hangover, which comes in the form of a drink she suggests downing before alcohol called “Mercy,” marketed and sold by her firm. Mercy apparently works its magic through “a propriety blend of amino acids, vitamins and minerals” and is available online. If that doesn’t sound like something you’d be interested, CNBC’s John Carney, who anchor Nicole Lapin billed as “our resident expert of sorts” when it comes to hangovers, offered his his 5-Step Cure, which are as follows: Continue reading »
Corzine…has attended secret meetings with the president and has been working on Obama’s 2012 campaign for months, The Post has learned. And, like any good executive, Corzine is looking out for his own bottom line. Success could resuscitate his political career with a top post — such as treasury secretary or a key ambassadorship — if there is a second Obama term. Obama campaigned heavily for Corzine in his failed re-election bid, calling him “our Wall Street guy.” [NYP via BI]
Related, the Rogers grandchildren may or may not want to request grandpa’s coin collection, rather than what he’s earmarked for them, should their opinions of China be more in line with those of Jim Chanos. Continue reading »
The good news, if you’re the boss, is only 11 percent of employees polled would dare to make good on threats to quit without having something else lined up. [FINS]
Earlier this morning, LightSquared, the big wireless bet currently being waged by Phil Falcone, made the exciting announcement that the venture has raised an additional $265 million in funding from investors old and new. While the news is heartening and brings the total amount secured $2.3 billion in the past year, LightSquared and Phil are still quite far from their goal. Continue reading »
Greece Finance PM Has A Message For EU Members: Not Even A Valtrex Rx Will Make Us Go Away
By Bess LevinEvangelos Venizelos, who was brought in as Finance Minister of Greece just two weeks ago…reinforced the importance of euro zone membership to the country and said: “We are a member of the European Union and a member of the euro zone. This is definitive and not a reversible situation.” [CNBC]
ECB will continue to accept Greek debt (FT)
The European Central Bank will continue to accept Greek debt as collateral for loans unless all the major credit rating agencies it uses declare it to be in default, said a senior finance official. The ECB would rely on the principle of using the best rating available from the agencies – Standard & Poor’s, Moody’s and Fitch – the official said. The comments came after S&P on Monday became the first agency to warn that a plan, pushed by France and endorsed by Germany, for banks to roll over their holdings of Greek debt into new bonds would constitute a “selective default”.
Deficit Talks Focus on Taxes (WSJ)
Democrats have floated ideas that could raise tax revenues by some $400 billion over the next decade as they negotiate deficit reductions with Republicans, according to people familiar with the plan, posing the most contentious issue as talks reach a critical stage this week.
Profits Thrive in Weak Recovery (WSJ)
Many economists predict the sluggish rebound may continue for years. Against this backdrop, many U.S. companies are expecting to report surprisingly robust profits when second-quarter earnings are announced later this month.
Profit Lag May Dampen Stock Rally (NYT)
“For the first time in this economic cycle, there is going to be a fair number of disappointments,” said Doug Cliggott, an analyst at Credit Suisse, referring to the earnings reports. “The economy is going to be without those drivers.”
St. Joe, Chairman Bruce Berkowitz Are Subject of Formal Probe by U.S. SEC (Bloomberg)
The probe “covers a variety of matters” including securities-law anti-fraud provisions for corporate officers and board members, internal controls and financial reports, the Watersound, Florida-based company said in a filing with the SEC made after the close of regular U.S. trading [Friday].
Sino-Forest Surges After Wellington Reveals Stake (Bloomberg)
Sino-Forest rose 30 percent yesterday in Toronto after the Boston-based investment firm said in a regulatory filing it held 28.3 million shares as of June 30. The stake was valued at C$90.7 million ($94.5 million) on that date. Wellington, which manages $663 billion, held 79,700 Sino-Forest shares, or 0.03 percent, as of Dec. 31, according to data compiled by Bloomberg.
Paulson enjoys $550m Lehman boost (FT)
The world’s third-largest hedge fund has made a profit of $554m before legal fees, on more than 2,000 trades in Lehman bonds that started the day the investment bank filed for bankruptcy in 2008, according to an analysis of court documents by the Financial Times.
Commodities Beckon Banks (WSJ)
In the past 18 months, Goldman, J.P. Morgan Chase & Co. and trading firms Glencore International PLC and Trafigura Beheer BV have snapped up warehouse operators, all of them accredited to house metal traded through the London Metal Exchange, or LME. The buying binge means the four firms now are landlords to about two-thirds of the LME’s entire metal stocks, from aluminum to copper to zinc… For Wall Street, warehouses are a way to earn extra income, especially as core businesses like trading are suffering.
Pimco Wins in Bet on Inflation (WSJ)
Pacific Investment Management Co. and Morgan Stanley recently played a high-stakes game of chicken over inflation. Pimco won. The bond powerhouse, a unit of Allianz SE, scored gains of about $50 million on an inflation-related trade, according to people familiar with the matter. Morgan Stanley, meanwhile, suffered tens of millions of dollars in losses on an opposing trade and related moves, according to another person familiar with the matter.
French writer to file assault complaint on Strauss-Kahn (Reuters)
Lawyer David Koubbi said the complaint by Tristane Banon, 32, would relate to an incident that took place when she went to interview Strauss-Kahn, a former French finance minister, in an apartment in Paris. She was 22 at the time. “Tristane Banon will file a complaint Tuesday for attempted rape in Paris,” Koubbi said. Continue reading »
$$$ Fink, Dimon among leading candidates for Treasury secretary job [NYP]
$$$ “Now, the pompadoured billionaire and reality-TV star may have outplayed a much bigger rival in a bid for Ms. Kluge’s crown jewel: her mansion. Bank of America owns the house after foreclosing and is trying to sell it for $16 million. The 24,000-square-foot neo-Georgian palace has 45 rooms, a spa, home theater, 3,500-bottle wine cellar and 2,000-square-foot sitting room.” [WSJ]
$$$ Zynga Files to Raise $1 Billion in IPO [Bloomberg]
$$$ “Now, in the wake of former International Monetary Fund Managing Director Dominique Strauss-Kahn’s arrest in New York on charges of attempted rape, unlawful imprisonment and forcibly touching a hotel chambermaid, Corniola’s mission is to teach the world the protocols of foreplay and clean up France’s debauched sexual reputation. For the former Club Med social director, etiquette is everything and Strauss-Kahn gets her dander up. “Dominique Strauss-Kahn is not a French lover,” is Corniola’s verdict.” [Bloomberg]
$$$ That’s it for us today. Enjoy the long weekend and see you on Tuesday! Continue reading »
Warren Buffett Wingman Charlie Munger Is Pretty Sure Dick Fuld Is Nuts, Doesn’t Feel Bad About The Whole Lehman Thing
By Bess Levin“The bubble in America was caused by some combination of megalomania, insanity and evil in, I would say, investment banking, mortgage banking,” Munger, 87, said today at a conference in Pasadena, California…“I would guess that Dick Fuld has not a single ounce of contrition wherever he sits today,” Munger said. [Bloomberg]
