Bess Levin

Posts by Bess Levin

jamie dimonJPMorgan Chase & Co.’s parts are probably worth more to investors than the whole after regulators proposed tougher rules penalizing firms for size and complexity, according to Goldman Sachs Group Inc. JPMorgan could unlock value by splitting its four main businesses or dividing into consumer and institutional companies, Goldman Sachs analysts led by Richard Ramsden wrote today in a research note. Units of New York-based JPMorgan trade at a discount of 20 percent or more to stand-alone peers, they wrote. [Bloomberg]

storytimeTo be fair, we don’t actually know if Brett Jefferson’s lesson about stupidity was delivered as a bedtime story, a lullaby, or just a general piece of wisdom he regularly shares with his young son. But it seems fairly obvious that the Hildene Capital Management founder is wasting no time teaching the boy about the various idiots you’ll meet in life and the idiotic things they do, relishing the opportunity to, for example, show the kid what happens when someone cuts you off on the way to school/work (he/she gets flipped off and his/her ass ridden for at least a mile with high beams flashing in his/her rear-view mirror). Read more »

morganstanleyApparently this sort of thing is frowned on at the bank. Read more »

A HSBC logo is seen above the entrance to a HSBC bank branch in New York CityHSBC bankers got a client’s son a job on Wall Street and then openly discussed how that favor would land them a lucrative deal, The Post has learned…In the 2013 chat, [senior banker Robert] Domanko, who heads HSBC’s institutional equity derivatives business, pushed his subordinates to improve the price of a deal by a few basis points, or 0.01 percentage points, according to a transcript of the conversation obtained by The Post. After one banker asks why they should give the client a better deal, Domanko spills the beans in an Instant Bloomberg chatroom. “to look competitive …maybe he gives it to us if we are close but not the best price..jenn spent 2months helping the clients son get an internship,” he wrote in the chatroom on Dec. 16, 2013. “chance he gives to us if close, but not best offer,” he went on. “so, even a few bps would help,” he said, referring to the basis points. The deal was a complex derivatives transaction known as a swap where the bank would allow the client to bet on the direction of an equity index , according to a person familiar with the deal. The swap transaction fell apart and was not completed. Other bankers in the chatroom were livid about Domanko’s loose lips. “Amazing,” one wrote. “are you kidding me on that helping the clients son get an internship?” wrote another. “How can you write that in an IB chat?” asked a third. “the internship wasn’t at hsbc,” Domanko replied. “she mentored him…” [NYP]

  • 24 Dec 2014 at 1:33 PM

Pay Day ’14: Hedge Fund CEOs

Dan Loeb Bill AckmanBill Ackman, head of the best performing large hedge fund firm, is poised to pull in at least $1 billion, according to rough CNBC calculations using his net worth, stake in $19 billion Pershing Square Capital Management and the fund’s stellar 35 percent return net of fees through early December. Larry Robbins also pulled in about $600 million so far this year, according to a similar estimate. His Glenview Capital Management has surged again, gaining 12 percent in its main fund and 21 percent in a concentrated version through November, according to performance information obtained by CNBC. Glenview managed $9.9 billion as of Sept. 30. And Dan Loeb, whose main hedge fund is up 7.1 percent through November, appears set to make about $230 million this year. Third Point manages $16.5 billion. [NetNet]

RBS_2448864bThe Royalest Bank of Scotland is holding onto some unvested until it determines who did/didn’t committ fraud. Read more »

london-gherkin-building_2Everyone based in London is said to be expecting big money this year. Read more »

  • 19 Dec 2014 at 3:53 PM

Bonus Watch ’14: Countrywide Whistleblowers

angelo_moziloThe total payouts to whistle-blowers in the federal government’s $16.65 billion settlement with Bank of America over its mortgage business may approach $170 million. Edward O’Donnell, a former executive at Countrywide Financial, and Robert Madsen, a former property appraiser for the bank already have been identified as two of the whistle-blowers that federal prosecutors gave credit to in the settlement agreement with Bank of America. The other two whistle-blowers entitled to a share of the settlement dollars being paid out by Bank of America are Shareef Abdou, an executive in the bank’s operations group, and the firm Mortgage Now, a New Jersey mortgage lender, according to court filings. The filings did not disclose the value of the settlement payouts, but the whistle-blowers, all of whom filed complaints under the Federal False Claims Act, are collecting payments equal to 16 percent to 17 percent of specific portions of the $16.65 billion, according to court filings and people briefed on the matter but not authorized to speak publicly. [Dealbook]