Archive for October 2011

It’s either missing-missing or there but just in hiding as a result of “sloppy internal controls.” Read more »

Write-Offs: 10.31.11

$$$ JC Flowers Fund Is Said to Have $47.8 Million Loss on Its MF Global Stake [Bloomberg]

$$$ MF Bankruptcy Sends Clients Fleeing [Bloomberg]

$$$ Pennies From Heaven [PIMCO]

$$$ “Donning a black hat and cape to compliment a tacked-on tail and ears, Meredith Whitney came to her annual office Halloween costume competition on Monday dressed as Puss in Boots.” [Dealbook]

$$$ Topless protest against DSK in Paris [EuroNews] Read more »

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The convicted insider trader, who was previously scheduled to report to prison for an 11 year sentence at the end of the month, was granted a few extra days of freedom. He’ll now have ’til December 5 to dance like nobody’s watching. [WSJ]

  • 31 Oct 2011 at 5:20 PM

This Is Jamie Dimon-Branded Pumpkin

By a master craftsman. Read more »

If I’m a PM at Scout Capital, Trian, Cedar Rock, MSD, Calamos, BlackRock, RenTec or Two Sigma, all of which own a significant number of shares in the pizza purveyor, my takeaways are: 1. Passion 2. Teamwork 3. Initiative 4. Ingenuity 5. Ability by middle management to read between the lines and infer that corporate’s edict to “torch the competition” was meant literally. Alternatively, if I’m a certain someone who walked away, dumping all but a couple shares retained simply for the free slices, I’m thinking I made the biggest mistake of my life underestimating these two. Read more »

If as a generally informed person who had not yet seen MF Global’s bankruptcy petition, you were to guess who’s going to be knocking on MF’s door most forcefully, you might come up with a list something like this:

1. The banks that were repo’ing its $6.3 billion in Eurozone exposure
2. The lenders on its $1.3 billion in credit facilities that it drew last week (oops!)
3. Bondholders on its four series of public debt totaling ~$1bn
4-99. Other repo, derivatives, securities lending, etc. etc. counterparties and clearinghouses, including maybe the Fed
100. John Corzine, for his $12mm severance
101. CNBC, for advertising and/or Dick Bové’s strategic advice
102-…. Law firms, accountants, PR firms, Bloomberg, and other trade creditors.

If you then went and checked your work against the actual petition, you might be a bit surprised. At the top of the list are JPMorgan as admin agent for the credit facility (misleadingly listed as trustee for public bonds) and the indenture trustees for the bonds. Those top five total about $2.2 billion. The rest is trade creditors, maybe $10mm or so. CNBC is there, as are Bloomberg and a bevy of law firms and consultants. (Not nearly as many as there will be!)

But there’s not a repo counterparty in sight, and the total of about $2.3 billion in listed claims seems pretty light compared to the total liabilities of $39.7 billion. (Corzine’s not there either, though to be fair that severance is not crystallized quite yet.) If all you had was this petition, you might think that MF Global was in the business of raising money just to buy exposure on CNBC.

So where’d the other $37 billion or so go? Read more »

  • 31 Oct 2011 at 2:05 PM
  • Banks

Layoffs Watch ’11: Credit Suisse

The (other) Swiss bank will be cutting people and assets, so don’t take it personally. Read more »

  • 31 Oct 2011 at 12:06 PM

MF Global Owes Maria Bartiromo Et Al $845,000

Technically, they owe CNBC the 845 but Corzine is probably more worried about invoking the ire of some anchors more than others, like Jim Cramer, who “is fine” with being an unsecured creditor. Read more »