James Crosby, a former chief executive of HBOS, said on Tuesday that he would ask authorities to remove his knighthood in light of a damning report published last week that blamed him in part for the mortgage lender’s 2008 collapse. “Shortly after I left HBOS, I received the enormous honor of a knighthood in recognition of my own – and many other people’s – contribution to the creation of a company which was then widely regarded as a great success,” Mr. Crosby said in an e-mailed statement. “In view of what has happened subsequently to HBOS, I believe that it is right that I should now ask the appropriate authorities to take the necessary steps for its removal.” Mr. Crosby said he was “deeply sorry for what happened at HBOS” and that he “always tried to act with integrity.” “I would like to express my sincere regret for events,” he wrote in the e-mail. He also said he would give up 30 percent of his pension, which currently is about £580,000 ($887,700) a year. [Dealbook]
Bess Levin
Posts by Bess Levin
And the winner of dinner at Peter Luger plus a limited edition Dealbreaker banker bag, sure to make you the envy of your colleagues, family, friends, and foes is: Read more »
OAO Sberbank’s London Office Seeking Replacement For Resident Nickname-Giver (5 Years Experience LOLing At Own Jokes Preferred, Not Required)
By Bess LevinDavid Longmuir, head of equity sales at OAO Sberbank’s London unit, agreed to step down after being accused of referring to a colleague as “Ms. Cokehead,” according to two people with knowledge of the matter. Colleagues on the equity sales desk, all men, created a hostile work environment and displayed “a demeaning and offensive attitude to women,” Svetlana Lokhova alleged in documents from her U.K. employment tribunal claim against Sberbank CIB. Lokhova took a leave of absence in January 2012 and hasn’t returned since. Lokhova accused Longmuir of sending e-mails to clients saying they were “awaiting arriving of Ms. Cokehead,” and “they’ve hired mad Svetlana to do equity sales,” according to her claim. [Bloomberg]
Insurer American International Group Inc has asked a court to block Maurice “Hank” Greenberg’s efforts to sue the U.S. government on AIG’s behalf, saying its former CEO has not proven he should have the right to do so. Earlier this year, AIG drew sharp criticism from members of Congress and an outraged public when the firm considered the possibility of joining Greenberg’s lawsuit, which challenges the terms of the insurer’s $182.3 billion bailout by the federal government in 2008. AIG said Greenberg had forced its hand in even deliberating the prospect, but that ultimately it did not want to sue anyway amid a public backlash. Absent AIG’s participation, Greenberg is pursuing a derivative claim, seeking to sue the U.S. government on AIG’s behalf over the terms of the $182.3 billion rescue. Greenberg and his company Starr International, which owned 12 percent of AIG before the rescue, are also suing the government directly.
All of you went to sleep last night dreaming about what it would be like to walk around with a Dealbreaker banker bag slung across your shoulder; how people would start looking at you differently; how your life would change. And only a few of you are actually in a position to potentially see that dream realized. Read more »
Each Chapter Of ‘The Life And Times Of James Dimon’ Will Be Written In A Different Room
By Bess Levin
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, bought a commercial co-op unit in the base of his Manhattan apartment building for $2.05 million…The sellers of the commercial co-op were listed as Stephen Marks and George Ellis, cardiologists whose practice was located at the address. The unit is one of 11 on the ground floor of the building, located between 93rd and 94th Streets. “They’re professional offices” said Jonathan Miller, president of New York-based appraiser Miller Samuel Inc. “Most of the time it’s a doctor, a psychologist, any type of medical practice. It’s not uncommon for it to be a place to write a book, or just a place to work, or have a private office.” Maintenance is $6,663 a month for the 2,577-square-foot (239-square-meter) unit, which has 12 rooms and two half-baths. [Bloomberg]
Credit Suisse, UBS Care About (Not Being Known For Helping People Engage In) Tax Evasion Now
By Bess LevinTime was, you could count on Swiss banks to assist their clients in the business of not paying taxes, having practically written the book on how to go about keeping one’s assets a secret from prying eyes (Chapter 1: Discarded toothpaste containers make a great place to stash diamonds). Now? Not only are they no longer providing the service, they’re suddenly too good to associate with people whose hands aren’t clean. Read more »
Executives and directors of J.P. Morgan Chase are rallying large investors against a nonbinding shareholder proposal to strip Chief Executive James Dimon of his chairmanship, the latest attempt to restore calm following a multibillion-dollar trading loss. The largest U.S. bank is arranging conversations with big fund managers in the coming weeks. J.P. Morgan is scheduling calls and offering meetings with directors for some of its biggest shareholders, including BlackRock Inc. and State Street Global Advisors, a unit of State Street Corp. Other large holders include Vanguard Group Inc., Fidelity Investments and T. Rowe Price Group Inc. Votes on the proposal will be counted at the company’s annual meeting next month in Tampa, Fla. Mr. Dimon has held the chairman and chief executive posts since 2006. Proponents of separating the two also plan extensive shareholder lobbying during coming weeks, including a meeting in Washington, D.C., with funds that hold large blocks of the company. [WSJ]
Nothing has been finalized, though according to a spokesperson for the bank, anyone who’d like to take a little initiative and just would be helping the bank out big time. Read more »
If You’re Looking For A Drinking Buddy, Look No Further Than Tim Geithner, Says Former Japanese Prime Minister
By Bess Levin
The ex-Treasury Secretary apparently loves to party and has time on his hands. Read more »
One Week As Senior UBS Execs Long Enough To Convince Guys They Don’t Wanna Be Senior UBS Execs
By Bess Levin
Thanks but no. Read more »
The Only Thing Mathew Martoma’s Ex-Lawyer Has To Work On In The Run-Up To The Summer Is His Base Tan
By Bess LevinAnother intriguing development in the insider trading investigation centered on SAC Capital in a week already overflowing with them: Mathew Martoma is replacing his defense lawyer. The move immediately raises questions about whether Martoma plans to change his strategy, which, so far, at least, could be characterized as: fight without giving an inch…His former attorney, Charles Stillman, of Stillman & Friedman, is known as a spirited fighter. Martoma is replacing him with Richard M. Strassberg of Goodwin and Proctor, a much larger firm that has secured some victories in defending insider trading cases…Strassberg could not be reached for comment. “The young man made a decision, I wish him well,” Stillman said Thursday, explaining that his life had changed quickly, now that he wasn’t bracing for a possible summer trial. “We have a house in the Berkshires, and we’re talking about redoing our deck,” he said. “So the day this happened, I called my wife and said, ‘Call the contractor, it’s time to finish the deck!’” [BusinessWeek]
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