January 2012

  • Write-Offs

    Write-Offs: 01.31.12

    $$$ Facebook readies to file US$5bn IPO, could grow [IFR] $$$ Amazon Profit Beats, But Revenue Falls Short; Stock Slides [CNBC] $$$ EU Targets Bank Bonuses That Fly in the Face of ‘Morality’ [Bloomberg] $$$ Gupta Faces New Charges in Insider Trading Case [DealBook] $$$ Einhorn Case Highlights Britain’s Broader Definition of Insider Trading [DealBook] […]

    / Jan 31, 2012 at 7:17 PM
  • News

    Fred Goodwin Has Seen Better Days

    The past couple years have not been what one might characterize as the best of times for former RBS CEO Fred Goodwin. After retiring from his post in November 2008, he missed out on helping the bank collect the award for biggest loss in British corporate history (£24.1 billion for the year), the windshield of […]

    / Jan 31, 2012 at 7:02 PM
  • News

    Layoffs Watch ’12: Credit Suisse

    The cuts won’t go down until the spring, so just something to keep in mind.

    / Jan 31, 2012 at 6:55 PM
  • Banks, News

    Jefferies Bankers Are Happy To Pay Jefferies Shareholders $6mm For The Privilege Of Not Being Jefferies Shareholders

    What is the best thing about these Jefferies bonuses? For me it’s this: For 2011, we offered our employees the option to receive the stock portion of their year-end compensation in the form of either shares or cash, with the cash amount being equal to 75% of the grant-date amount of the stock that an […]

    / Jan 31, 2012 at 6:45 PM
  • News

    Hank Greenberg Should Maybe Get His $25bn Back, But Not For The Reasons He Thinks

    Remember a couple of months ago when former AIG CEO and current dog fancier Hank Greenberg sued the government for $25 billion because it had stolen AIG from him? We all had a good giggle at that but some people think he wasn’t entirely crazy. One of those people is friend of Dealbreaker and Stanford […]

    / Jan 31, 2012 at 5:16 PM
  • News

    Bonus Watch ’12: Jefferies Offers Employees Sophie’s Choice

    Tough calls.

    / Jan 31, 2012 at 5:15 PM
  • I will sell this house today

    Bill Ackman Would Love For You To Get Bullish On Housing

    “How does Bill Ackman do it” is a question the investing community surely asks itself on a daily basis. Three words: Berkshire Mountains hideaway. Outsiders may figure in-depth research combined with skillful and ethical activism and a highly concentrated portfolio are the keys to Pershing Square’s success but, really, a 100-acre spread in upstate New […]

    / Jan 31, 2012 at 3:51 PM
  • News

    Bain Capital Betting On Ryan Seacrest To Pluck Another Sex Tape Star From Obscurity

    Ryan Seacrest, the radio and TV producer and host of “American Idol,” garnered a commitment for as much as $300 million from Thomas H. Lee Partners LP and Bain Capital LLC to fund media ventures. The private-equity investors will provide capital to Ryan Seacrest Media to buy and develop companies, content and other properties, according […]

    / Jan 31, 2012 at 2:30 PM
  • Banks, News

    Volcker Rule Will Be Bad For European Governments, Say European Government Ministers Who Were Told By Banks That The Volcker Rule Would Be Bad For Them

    I’ve been pretty skeptical of the whole Volcker Rule thing because I don’t really understand the conceptual division between “making bets with your own money” and “market making,” and I’ve been gratified to see that paid financial industry mouthpieces are on the same page. Now it’s nice to see unpaid mouthpieces agreeing too: Yet finance […]

    / Jan 31, 2012 at 12:29 PM
  • Opening Bell

    Opening Bell: 01.31.12

    EU Nears Greek Confrontation Amid Fiscal Pact (Bloomberg) Euro leaders left a Brussels summit late yesterday with no accord over how to plug Greece’s widening budget hole and German Chancellor Angela Merkel voicing frustration with the Athens government’s failure to carry out an economic makeover. “Greece’s debt sustainability is especially bad,” Merkel told reporters. “You […]

    / Jan 31, 2012 at 9:30 AM
  • Write-Offs

    Write-Offs: 01.30.12

    $$$ Victory for Merkel over fiscal treaty [FT] $$$ Fed Survey Finds Banks Still Cautious to Lend [WSJ] $$$ Insider Jury May Hear From a Top Aide at Berkshire [DealBook] $$$ Forget the big bonuses; a pay squeeze is coming [FT] $$$ “At his first rally of the morning, Newt Gingrich rolled out a new […]

    / Jan 30, 2012 at 8:54 PM
  • News

    Going Public? Groupon CEO Has Some Wisdom To Impart

    Mr. Mason, who sometimes posts online videos of himself in his underwear doing yoga or dancing, sat down for a recent interview in his Chicago office to discuss challenges facing the company and his ability to handle them. WSJ: The SEC also took issue with a memo you wrote to employees during the quiet period […]

    / Jan 30, 2012 at 8:36 PM
  • News

    Uninvited Act of Nature Threatens Davos Festivities: Attendees Escape Harrowing Experience Barely Intact

    As you may have heard, last week brought the annual World Economic Forum to Davos Switzerland. Besides one very important economist attending several very important meetings, this year felt a bit dull compared to previous ones, wherein the groundwork for major deals was laid,  love-children conceived. 2012, it seemed, was the year nothing really noteworthy […]

    / Jan 30, 2012 at 8:33 PM
  • I will sell this house today

    Sleep Where Jon Corzine Hath Slept

    JSC has reportedly put his Hoboken hideaway on the market, for reasons that are unclear at this time (and which we should not speculate over. Surely there are some who will be quick to suggest he’s downsizing and freeing up cash in case he needs money for legal fees but we have no idea, do […]

    / Jan 30, 2012 at 7:53 PM
  • Credit

    MF Global Was Doing Great Until It Wasn’t

    “Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone,” but every banker also seems to forget the modern corollary, which is that, if you have to prove you are worthy of credit, however good may be your […]

    / Jan 30, 2012 at 6:25 PM
  • News

    Bonus Watch ’12: Area Man Suggests Looking On The Bright Side

    Morgan Stanley, Citigroup, and Credit Suisse made some of the year’s biggest cuts in compensation for investment bankers, averaging as much as 30 percent, as Wall Street firms grappled with lower revenue.  Morgan Stanley, owner of the world’s largest brokerage, will also cap cash awards and defer more payouts, people with knowledge of the plans […]

    / Jan 30, 2012 at 5:58 PM
  • Hedge Funds

    Steve: Remember That Not Getting An MLB Team Can Sometimes Be A Wonderful Stroke Of Luck

    Over the weekend, the LA Times reported that a group headed by Steve Cohen was among those that advanced to the second round of bidding for the Los Angeles Dodgers. Mark Cuban, “veteran baseball executive” Dennis Gilbert, and former Dodgers players Steve Garvey and Orel Hershiser are out; at the top of Cohen’s elimination list […]

    / Jan 30, 2012 at 4:30 PM
  • News

    Layoffs Watch ’12: Bank Of America

    BofA may not yet be done implementing all the ideas Team Project New BAC came up with after “fanning out around the company to ask employees low-and high-level for ideas on [how to] reduce expenses.”

    / Jan 30, 2012 at 4:13 PM
  • News

    Freddie Mac Profits From The Misery Of American Homeowners So That Banks Don’t Have To

    It’s always good fun to get upset about something of the form “X bet against Y,” and the financial markets offer a whole range of opportunities to do so. Everything is a bet against something, and if that something is sympathetic and/or you, you can go get enjoyably pissed at whoever is doing the betting. […]

    / Jan 30, 2012 at 1:18 PM
  • News

    Little Giant Paying Huge Dividends For Morgan Stanley Employee

    Forget the bruising defensive linemen and the stellar quarterback play. Brooklyn’s Jennifer Pernice thinks her lucky garden gnome — clad in a blue Giants jersey — has been the key to the team’s stunning late-season run. “He’s looking over Eli’s shoulder. It just brings them good-luck vibes,” she said. “Since he came into my life, […]

    / Jan 30, 2012 at 10:46 AM
  • Opening Bell

    Opening Bell: 01.30.12

    Ex-UBS Trader Adoboli Pleads Not Guilty To $2.3 Billion Loss (Bloomberg) Adoboli, dressed in a grey suit and blue tie, pleaded not guilty to all charges at a hearing in London today. A trial that may last as long as eight weeks was scheduled to start in early September. Adoboli, 31, has been in custody […]

    / Jan 30, 2012 at 9:30 AM
  • Write-Offs

    Write-Offs: 01.27.12

    $$$ Citi to Cut Bonuses in Investment Bank About 30% [Bloomberg] $$$ Fitch Cuts Italian, Spanish Ratings [Bloomberg] $$$ Goldman’s Blankfein gets stock from prior award [MarketWatch] $$$ EU avoided ‘major, major credit crunch’ [FT] $$$ Proposed Mortgage Deal Said to Be Limited to Foreclosures [Bloomberg] $$$ Every self-important anonymous jerk who can’t handle rejection […]

    / Jan 27, 2012 at 6:54 PM
  • News

    How Will Morgan Stanley Be Able To Pay Tech Bankers With A Measly $100mm Facebook IPO Fee?

    I really hope that Facebook is just faking us all out with this whole “we’re IPO’ing on Wednesday” thing that they haven’t said, in part because I have yet to park $100k of the Dealbreaker slush fund/Bloomberg budget in Facebook shares on SharesPost. But just in case they actually do something next week let’s analyze […]

    / Jan 27, 2012 at 6:45 PM
  • News

    More People Will Soon Have The Opportunity To Share David Einhorn’s Insider-Trading Confusion

    Finally someone’s listening to us, I guess: While prominent hedge-fund manager David Einhorn was the focus of the latest alleged insider-trading case this week, a supporting actor in the drama belongs to a fraternity of London bankers that also is under increased scrutiny. Andrew Osborne, until last month a so-called corporate broker in the sprawling […]

    / Jan 27, 2012 at 4:02 PM
  • News

    Brian Moynihan Has Already Spent A Year Apologizing To Shareholders, Please Don’t Make Him Handle Another Confrontation

    Earlier this week, in an interview with Bloomberg TV, Morgan Stanley CEO James Gorman was asked how he would respond to employees expressing disappointment with this year’s bonuses. Perhaps at his wits end with compensation complaining, perhaps to indicate there is a new James Gorman in town and he is not to be fucked with, […]

    / Jan 27, 2012 at 3:28 PM
  • Banks, News

    And Now An Argument That More Capital Makes Banks Less Safe

    One reason that you’re in for seven lean years in the investment banking business is that bank capital requirements are going up due to Basel III, and “capital is expensive” in some loose sense, so banks will have less money to use to make loans and/or pay you. Some people think that this is mostly […]

    / Jan 27, 2012 at 1:43 PM
  • News

    Layoffs Watch ’12: BarCap

    Cuts are said to have gone down at the House of Diamond.

    / Jan 27, 2012 at 1:41 PM
  • News

    Bonus Watch ’12: Credit Suisse

    “People are furious.”

    / Jan 27, 2012 at 11:57 AM

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