Bess Levin

Posts by Bess Levin

  • 14 Jul 2014 at 12:34 PM
  • oh that

$7 Billion Settlements Aside, Citi’s Earnings Are Kick-Ass

Citigroup‘s profits tumbled 96 percent in the second quarter, dragged down by a huge charge related to its recently announced deal with the Justice Department to settle an investigation into its sale of mortgage securities in the run up to the financial crisis. The charge for the legal settlement totaled $3.8 billion, marring an otherwise relatively strong quarter for the bank that was helped by better than expected trading results. Not accounting for the legal charge, or other one-time items, Citigroup exceeded Wall Street expectations in the second quarter with adjusted earnings of $1.24 a share, On that basis, analysts had been expecting Citigroup would earn $1.05 a share, according to a survey by Thomson Reuters…Earlier on Monday, the bank announced a $7 billion deal with the Justice Department. The deal includes a $4 billion cash penalty, the largest yet by a large bank to settle federal investigations of mortgage misdeeds. [Dealbook]

As many of you will recall, at the end of last week, Fox Business reporter Charles Gasparino tweeted the following: “Irony of #sunvalley: media conf closed to the media guarded by bullying and fat ex cops like the guy I told to stop bullying my producer.” At the time, we assumed Gasparino was merely adding depth to his coverage of the conference with some of his patented “behind the scenes”-style tweets. According to FBN’s sister publication, however, the 140 characters were precipitated by this:

The tension began Wednesday night when Gasparino and two of his producers crashed a party that was off-limits to the press. Words were exchanged and they were ordered to leave by MSA Security’s Brian Coughlin, whose day job is with the NYPD bomb squad…Then, on Thursday, Gasparino got into a shouting match with the same security guard and was ordered off the grounds of the mountain resort — “You’re out of here,” Coughlin said.

Did the order– which was apparently followed by an official “trespass citation”– stop Charles from doing his job? Maybe a lesser reporter would’ve cut his/her losses, not deigning to do segments on the side of a highway, but not Charles. Read more »

By day, Jeff Klaips manages a construction clean-up company in a Chicago suburb, but he’s also looking to make a pretty penny from the sale of BillAckman.com and WilliamAckman.com. He’s been trying to pique the interest of the Pershing Square Capital Management founder-or someone who’d like to use his name. Klaips already made a profit from EddieLampert.com, the name of the ESL founder. Inspired by seeing Lampert on CNBC, Klaips says he purchased the domain name on an impulse in 2004…On New Year’s Eve this past year, he received an email from an IT person who works for ESL and was looking to purchase the EddieLampert.com site. Klaips had initially asked $9,000 for the domain, but the hedge fund representative talked him down to $4,200…Ackman has not been willing to deal. [Absolute Return]

  • 11 Jul 2014 at 3:44 PM
  • myths

You Want Fun? GOLDMAN SACHS WILL SHOW YOU FUN

Whoever said Goldman Sachs summer internships were all work and no play apparently never experienced the all-access pass to the FunZone that is GS’s Salt Lake City program. We’re talkin’ scavenger hunts and watching the World Cup in a conference room-level fun. We’re talking 6AM runs with colleagues-fun. Read more »

  • 10 Jul 2014 at 5:44 PM

Greg Smith-Lite Wants To Lend You Some Money

Steven Mandis knows what we’re talking about. Read more »


[via @cgasparino]

Hundreds of undergraduates are starting internships at banks this summer, typically eight to 10 weeks with a salary equivalent to £45,000 a year. Soon follow the graduates, starting their careers as banking analysts, earning about £45,000 plus bonus. The median salary reported by university-leavers last year was £20,500… At the banks, there is a concern they might not meet the younger generation’s expectations. Bruce Tulgan, author of Not Everyone Gets a Trophy, characterises this cohort as worldly, precocious and needy. Used to instant feedback and hands-on parenting, they are less likely to toil away quietly, paying their dues. Not yet teenagers on 9/11, they entered university in a recession that made many suspicious of institutions. One graduate had this to say to Mr Tulgan about financiers: “I know they think they are masters of the universe, but the Soviet Union disappeared overnight. So could they.” [FT]

Steven A. Cohen proved to be a stickler for the letter of the law when it came to paying the criminal penalty imposed on his former hedge fund as part of its guilty plea on insider trading charges. On April 10, Judge Laura Taylor Swain of Federal District Court in Manhattan gave Mr. Cohen’s SAC Capital Advisors up to 90 days to pay the $848 million penalty, part of an overall $1.2 billion criminal settlement reached with prosecutors last November. On Tuesday, the 90th day since Judge Swain accepted the firm’s guilty plea, Mr. Cohen’s firm made that payment, according to court records. [Dealbook]