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In an interview at his Hollywood Hills, Calif., home, the 33-year-old says he is often asked about the original source of his money because his father, Paul Bilzerian, earned “hundreds of millions” as a corporate raider and has worked for decades to protect his assets from a Securities and Exchange Commission judgment. The younger Mr. Bilzerian says he received money from his father in a trust but declines to say how much or what role it had in kick-starting his career, gambling. That career has been lucrative, by his account: He says he earned $50 million playing poker in a recent stretch of 12 or 14 months…Now his antics with cars, guns and women wearing bikinis (or less) have helped him attract more than 4.5 million followers on Instagram. Many of his escapades are bawdy. In an April video that went viral, Mr. Bilzerian was seen throwing a naked porn actress off the roof of his home and into a pool, in a photo shoot for Hustler magazine. She was injured and threatened to sue, bringing a sarcastic reply from a lawyer for Mr. Bilzerian. Mr. Bilzerian has publicly recounted how he suffered a heart attack in his 20s after a five-day binge of sex, drugs and gambling. [WSJ, @danbilzerian (NSFW unless you work at Hustler)]

  • 17 Sep 2014 at 1:00 PM

Inadvertently Shorting Into A Deal As Gateway Crime

Mary Jo White was the top federal prosecutor in New York City during Bill Bratton’s first run as the Big Apple’s top cop, and she learned a few lessons from his “broken windows” theory: Clean a place up a little, and throw the fucking book at the street urchins who are messing things up with graffiti and public defecation and, well, window-breaking, and the city will become the safe, sterile, boring place its leaders have always wanted it to be, and the street urchins will fall in line.

So don’t tell her that she’s spending a little too much time and energy going after inadvertent violators of Rule 105 of Regulation M, which says you can’t short a stock and then buy it in a public offering. Because that’s just a start. Next thing you know, you’ll have tens of thousands of Bernie Madoffs and insider traders and “magnets for market cheaters” to deal with. You can thank her later. Read more »

That’s about the only effect of yesterday’s move to revoke SAC’s CFTC registration because of, you know, the insider-trading and whatnot, since family offices like SAC er, Point72 don’t need the CFTC’s permission to do anything. Read more »

Opening Bell: 09.17.14

Barclays Hid Traders’ Role After Questions: Schneiderman (Bloomberg)
Barclays hid the role of high-frequency traders in its dark pool even after the bank said it had shut off clients who engaged in suspect activity, New York Attorney General Eric Schneiderman said. Schneiderman sued Barclays in New York State Supreme Court in Manhattan in June, accusing Britain’s second-largest bank of bilking its own customers in order to expand its dark pool. The bank in July asked the court to dismiss the case, saying that the suit is based on factual errors and fails to show any investors were harmed.

Credit Suisse Loans Draw Fed Scrutiny (WSJ)
Credit Suisse is under fire from U.S. regulators over concerns the bank isn’t heeding warnings to stop making loans regulators see as risky, according to a person familiar with the matter. The Swiss bank in recent weeks received a letter from the Federal Reserve demanding the bank immediately address problems with its underwriting and sale of leveraged loans, or high-interest-rate loans used by private-equity firms and others to finance purchases of companies, among other uses. The letter to Credit Suisse, known as a Matters Requiring Immediate Attention, found problems with the bank’s adherence to guidance issued last year, warning banks to avoid deals that included too much debt or too few protections for the lenders in case of a default, according to the person familiar with the matter.

With Calpers Quitting Hedge Funds, Other Investors Reflect (Dealbook)
For the $2.8 trillion hedge fund industry, the size of the Calpers investment is minuscule. But losing it is important because Calpers has long been a trendsetter among public pension plans, and the reasons for its decision resonate with many public workers, retirees and the plans’ trustees: Hedge funds can just seem too complicated and costly. “A lot of the employees’ labor unions will applaud this,” said Christopher J. Ailman, chief investment officer of California’s big pension fund for teachers. He said organized labor tended to be wary of Wall Street in general; big fees for hedge fund managers are seen as siphoning away money from public workers. His crosstown rival, Ted Eliopoulos, chief investment officer at Calpers, indicated that he expected the decision to have a ripple effect. “We certainly had a very thoughtful and deep conversation with our peers in the institutional investor network, as well as a wide variety of talented active external managers, and so we considered those opinions in forming our own conclusion,” Mr. Eliopoulos said.

Goldman Sachs’s Oryza Asia Hedge Fund Said to Top $1 Billion (Bloomberg)
Goldman Sachs Investment Partners, set up to allow clients to invest with some of the bank’s top proprietary traders, raised about $1 billion for its first Asia hedge fund, said two people with knowledge of the matter. The fund, named Oryza Capital LP, informed investors in June that it would stop taking additional money after capital committed had reached its capacity, said the people, who asked not to be identified because the information is private. The Asia-focused equity long-short fund started in September 2013 with an initial capital of $80 million, according to a document sent to potential investors.

German Court Lifts Ban on Uber Ride Service (NYT)
A court in Frankfurt overturned a nationwide ban against the company’s car-sharing service in Germany, lifting, for now, one of the most severe legal restrictions that Uber had faced anywhere in the world since it was founded in 2009. The temporary injunction on the service, which allows drivers to connect with potential passengers through a smartphone application, had been imposed by the court at the end of last month before a hearing could be held. After the hearing on Tuesday, judges announced that Uber, a start-up company based in San Francisco, could now operate in Germany. The judges were sympathetic to the arguments of Taxi Deutschland, a trade body that had brought the initial case against Uber, claiming that the service competed unfairly with local taxis, said Arne Hasse, a spokesman for the Frankfurt court. But he said that while the association was right in bringing the case and requesting the injunction, the group had waited too long to file the case, and therefore the injunction had to be lifted.

Papa Murphy’s Employee Admits Rubbing Scrotum On Pizza Was ‘Stupid’ (HP)
A Texas teen employed at a Papa Murphy’s pizza franchise faces criminal charges after a customer caught him in the act of rubbing his scrotum on an uncooked stuffed-crust Hawaiian pizza that he’d ordered, according to the Austin American-Statesman. When the customer asked Austin Symonds how old he was, he replied that he was 18, KEYE reports. “So you are old enough to know better than to put your balls on someone’s pizza,” the customer said, according to the station. “Yes,” Symonds replied. “Man, I am really sorry, that was stupid.” Symonds was apparently upset that an order had come in just before closing time. He allegedly admitted to police that he’d probably have fulfilled the order with the tainted pizza if he hadn’t been caught. Symonds is charged with tampering with a consumer product. He was released on $10,000 bail. Read more »

  • 16 Sep 2014 at 6:15 PM

Write-Offs: 09.16.14

$$$ Pressure for High Marks at Harvard Extends to Its Investment Chief [Dealbook]

$$$ Law-Firm Employee Charged With Insider Trading [WSJ]

$$$ Banya, Bear and Birch: Bank risks abroad [FT]

$$$ Anheuser-Busch says ‘not yet satisfied’ with the way NFL has handled recent incidents [CNBC]

$$$ ‘Poop & Pooches,’ a Magazine Devoted to Dog-Haters, Is a Hit in Germany [WSJ] Read more »

The disembowling would have been swift. Read more »

  • 16 Sep 2014 at 3:25 PM
  • Banks

Citigroup Will Get Out Of Subprime Lending No Matter What It Takes

Mike Corbat’s subprime albatross, OneMain Financial, is finally making some money, meaning it’s now or never for getting rid of it. Which means now. Read more »

…or whatever your friends have registered for in lieu of a KitchenAid Artisan Stand Mixer and towels. Read more »