According to the Telegraph, Aurelius Capital Management struck a deal to sell its shares of Co-op Bank to Perry Capital just prior to the news that former chairman Paul Flowers enjoyed purchasing cocaine and crystal meth. In related news, Co-op has conceded that it’s possible there is a connection between the fleeing of clients and the revelations. Read more »
The hard-charging wife of Dallas hedge-fund mogul James Dondero is proving to be as relentless as her husband in their epic divorce battle. Rebecca “Becky” Dondero, 32, plans to try a novel legal tack to get her estranged husband to cough up more cash than a $5 million prenuptial payout, according to sources. Last month, a Dallas state court jury determined that Becky was not entitled to more money under family divorce proceedings. At the trial, each argued that the other had violated terms of their prenup. The jury decided that both sides had breached the agreement but that it would remain in effect. A new trial is set for June 9 to decide if Becky is entitled to the full $5 million. To get around the maximum, however, she is preparing to claim under general contract law — as opposed to family law — that she is still entitled to damages because the jury determined that he breached the prenuptial contract, sources said. “Ms. Dondero’s demands over two years of negotiation varied between four and eight times the amounts stipulated in the prenuptial agreement and culminated in her filing 11 separate motions to invalidate the prenuptial agreement,” James Dondero said in the statement. Meanwhile, Becky, who declined to comment on the case, has a surprising ally. Donald Trump — no stranger to divorce court — sent her a note wishing her well and making it known that he was no fan of her husband’s, sources said. [NYP, earlier]
Diverse Menu of Bonds Is Served Up to Investors (WSJ)
With corporate-debt issuance racing toward a record, some large companies are rolling out unusual offerings in a bid to serve the bond market’s every nook and cranny. Recent weeks have brought a $500 million “green bond” from Bank of America Corp., which has pledged to use the proceeds to finance renewable-energy and energy-efficiency projects, and a $1 billion Goldman Sachs Group bond that offers variable interest rates for 10 years, much longer than normal. The sales underscore the robust appetite for debt issued by well-known, highly rated issuers and come at a time when low interest rates have put a premium on income-generating assets and a roaring stock-market rally has prompted some more-conservative investors to diversify.
Bull Market Shows No Sign of Death With Yellen Support (Bloomberg)
“The weakness in jobs is continuing fodder for the Fed to fulfill its most recent and steadfast comments about the support of the economy,” Holland, who oversees more than $4 billion in New York, said in a Nov. 26 phone interview. “Until the labor market gets better, the two parts of dual mandate have to be served,” he said.
No Penalties Planned in Swaps Probe (WSJ)
A four-year-old U.S. Justice Department civil probe into allegations that large banks and others conspired to thwart competition in the $24.3 trillion market for credit-default swaps is winding down and penalties aren’t planned, said people familiar with the matter.
Nobel Prize economist warns of U.S. stock market bubble (Reuters)
“I am not yet sounding the alarm. But in many countries stock exchanges are at a high level and prices have risen sharply in some property markets,” Shiller told Sunday’s Der Spiegel magazine. “That could end badly,” he said. “I am most worried about the boom in the U.S. stock market. Also because our economy is still weak and vulnerable,” he said, describing the financial and technology sectors as overvalued.
My life as a call girl in Love Guv ring (NYP)
“Going full time as an escort with the Emperors Club was a life-enhancing experience. And the sex wasn’t as difficult as people might expect…the one I’ll always remember, my dream client, was a sexy French restaurateur. I knew who he was before we met in his room at the Hudson Hotel — I had Googled him, something I often did with clients. He greeted me at the door with a glass of wine and a gift bag from Victoria’s Secret, a kind gesture that wasn’t expected or required. I tried on the lingerie, and we took full advantage of the mirror against the wall. I didn’t expect I would ever be so turned on by a man who paid me to be with him, but this was a pleasant surprise. I insisted we fit a second round in before our time was up…Another client was an older man, probably 40 years my senior, with a thin upper lip that covered slightly yellowed teeth. And as Southern men are said to be, he was very much a gentleman. He knew me as Ashley because he had selected me from the higher-end “Icon Model” portfolio. He was the first of only two clients to meet Ashley. This meant he paid $5,400 for the two hours as opposed to the $3,000 I would have made as Raquel. Icon Models had interests like classical music and equestrian sports. They hunted pheasant, studied at Oxford, knew the difference between a watch and a timepiece and could participate in a debate over the superiority of Walker Black versus Laphroaig. They had pedigree, or at least the ability to appear like they did. They also had an expensive wardrobe, the ability to sit up straight, speak proper English and pretend for a couple of hours that they were genuinely interested in the hobbies and fineries of the ruling class. I wore my most elegant pieces: diamonds, Gucci dress, Prada heels, a golden silk pashmina and Agent Provocateur underneath. The only thing that wasn’t designer was my clutch, but it matched my shoes and was just big enough to fit a nice stack of cash. I sipped a martini, and he enjoyed a scotch on the rocks. He told me about his family. Unfortunately, his wife didn’t care to be affectionate with him anymore. It was not an unusual story, and I was happy to fill the void. He had children and grandchildren. We cuddled and caressed. He needed the affection. At the end, he told me that I was a wonderful companion and that he would love to meet again. Nobody had ever called me a wonderful companion. I put a lot of love into my visit with him, and I was touched by his compliment. Despite his age and looks, he was a great client. What I didn’t realize was that he would also be my last. The Emperors Club was busted; the FBI showed up at my door, and I had to hire an attorney. I signed a proffer agreement with the feds; they asked me to identify people in photos, but it was clear I had no information they didn’t already have from their surveillance.” Read more »
Citigroup Attempts to Sing Itself to Public Approval (WSJ)
The banking industry has spent countless hours and dollars trying to make up for the damage done by the financial crisis. Banks have run feel-good advertisements, waged aggressive lobbying campaigns, apologized to the public, tried to lend more, even sponsored public bike-rental programs in cities such as London and New York. Now Citigroup Inc. is trying to a new tactic: singing. On national TV. Citigroup’s London office recently opened up its Canary Wharf skyscraper to a BBC crew filming the popular TV series “The Choir.” The long-running British show—which is something of a cross between “Glee” and “The Office”—features teams of workers competing to be crowned workplace choir of the year. Bankers remain deeply reviled in the U.K., and Citigroup executives admit they are a bit nervous about whether they will be lampooned when their segment airs on BBC2 on Monday night. But they say it is a risk worth taking. “We ultimately won’t know how this will play out until it airs,” said James Bardrick, Citigroup’s co-head of European banking, who championed the project and is a tenor in the choir. “But if people get to see that we’re not a bunch of monsters hiding behind our screens and planning financial apocalypse, we’ll have done the industry a small service.”
UBS Revamps Forex Unit (WSJ)
s shaking up its investment bank, and has removed a top foreign-exchange executive, amid a burgeoning investigation into potential manipulation of currency markets. The bank is rolling its foreign-exchange and precious-metals business into another unit, according to an internal memo reviewed by The Wall Street Journal. As part of the changes, Chris Vogelgesang is stepping down as global co-head of foreign exchange and precious metals.
London leads 11 percent jump in bankers earning 1 million euros (Reuters)
More than 3,500 bankers in Europe earned 1 million euros ($1.4 million) or more last year after a big jump across the continent and in Britain, which had 12 times as many high earners as any other country. Figures from the bloc’s banking regulator on Friday showed that London-based bankers would have easily bust the European Union bonus cap rule coming into effect next year. Bonuses for the highest earners were almost four times fixed pay.
Wal-Mart Steps Up Security as Fights Break Out Over TVs (Bloomberg)
Malls are beefing up patrols with off-duty cops. Chains including Wal-Mart Stores Inc. are using quota systems for popular doorbusters from iPads to jewelry. Yet all was not peaceful. In one incident, uploaded to YouTube, uniformed security officers handcuffed a female shopper at an unidentified Wal-Mart store after a tussle over a television. Bill Simon, chief executive officer of Wal-Mart’s U.S. division, was asked about the incident on a conference call today with reporters. “Any time you get more than 22 million people together you’re going to have some behavior you’re not proud of,” said Simon, who also said “the number of incidents” was down from last year and that it’s “hard to tell what happened in any individual incident.”
Violence flares as shoppers hunt Black Friday deals (CNBC)
After buying a big screen TV, a Las Vegas shopper was shot around 9:45 p.m. PST Thursday as he tried to take his purchase home, Lt. David Gordon of the Las Vegas Metropolitan Police Department told NBC News. “As the victim was walking through his complex he was approached by a suspect who fired warning shots which caused the victim to release the television,” he said. As the thief tried to load it into a vehicle the victim approached him to try to get it back, Gordon added. “The suspect fired two more shots and the victim was struck in the leg,” he said. “He was not seriously injured.”
SAC tech analyst testifies: Give stock tips or lose job (NYP)
Former SAC Capital Advisors tech analyst Jon Horvath testified he was afraid he would lose his job if he didn’t come up with illicit stock tips for his boss, Michael Steinberg. “I thought my job was in danger. I thought he would fire me,” Horvath, the government’s star witness in the insider-trading case against Steinberg, told a Manhattan federal jury. Horvath, testifying Wednesday on the fifth day of the trial, said he received an ultimatum from the top SAC money manager after Horvath’s tech recommendations for Steinberg lost money in 2007. “What I need you to do is to go out and get me edgy, proprietary information that we can use to make money in their stocks,” Horvath testified that Steinberg told him after a bad losing streak.
Netherlands Loses Triple-A Rating (WSJ)
The Netherlands became the latest country to be stripped of its coveted triple-A credit rating Friday, after Standard & Poor’s downgraded the country to “AA+,” citing weakening growth prospects. S&P is the first rating firm to downgrade the Netherlands, saying the country’s growth prospects are “weaker than we had previously anticipated” and that the “real [gross domestic product] per capita trend growth rate is persistently lower than that of peers.”
Man fined for breaking bed, curtain rail and window sill having sex in his old flat (Mirror)
Adam Disney ‘got carried away’ during the impromptu bonk with his partner and trashed the home in the process. The bed collapsed as he had sex and the 28-year-old also damaged a window sill as he romped the night away. Puzzled neighbours heard noises coming from the flat in Wavertree, Liverpool, and wondered what was going on September 3. The home’s landlady spotted Disney, from Solihull, leaning out the window smoking a cigarette. Dan Lupton, defending at Liverpool Magistrates Court on Thursday said: “This is a curious case of the morning after the night before. “They had been drinking and the couple were passionate in their interest to have sexual relations. “On this occasion they were seeking to avail themselves rather quickly.” He added: “The closest place for them to seek refuge, in an effort to avoid offending public decency, was his former flat. “The window sill was loose and they hadn’t done a good job of securing the curtain rail. This was not a posh hotel room.” Once inside the flat Mr Lupton said the couple were “carried away with the intensity of physical relations” and in the course of events the bed collapsed and drapes were pulled down. He said the damage was not intentional but happened in the course of “sexual antics”. Disney was fined #100 after admitting criminal damage in the ‘shabby bedsit’ after a charge of burglary with intent to cause damage was downgraded. Read more »
$$$ Wall Street bigs poised for huge payday [NYP]
$$$ Turkey Engineers Cook Up Patents [WSJ]
$$$ Bitcoin Tops $1,000 as Virtual Money Gains Popularity [Bloomberg]
$$$ Fed Reveals New Concerns About Long-Term U.S. Slowdown [Bloomberg]
$$$ That’s it for us today– Happy Thanksgiving! We hope you all have a great holiday. There will be brief posting/moral support for those working on Friday, and we’ll see the rest of you back here on Monday! Read more »
Part three in a series of magnanimous gestures in which Goldman Sachs tries to teach you dullards how to trade like Goldman Sachs. Today’s installment: Canadian Thanksgiving was weeks ago, so fuck those guys. Read more »