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  • 21 Jan 2015 at 1:07 PM

Chicago Billionaire Sounds Like A Real Treat

The Griffins!In a newly disclosed detail, Dias Griffin says that, a few weeks before her husband left home in early 2012, Griffin had “forced Anne’s personal trading and investment vehicle to abide by a new set of stringent spousal compliance rules imposed by Citadel.” With those restrictions, Dias Griffin said it became difficult to trade and make her own money. “Kenneth has refused to support Anne and has taken the position that he should only be required to pay those expenses for the children that he arbitrarily deems ‘reasonable,’ rather than those expenses corresponding to the standard of living that the children would have enjoyed had the marriage not been dissolved,” Dias Griffin said in her filing Tuesday. She also said in her court filing that, “just last week, he threatened her that if she asks him for a penny, he would sue her until she has no money left.” Griffin has also failed to produce a current financial disclosure statement showing income, expenses and net worth, Dias Griffin said in her filing Tuesday. [Chicago Tribune]

Update: A spokeswoman for Citadel has sent us the following statement: Read more »

Opening Bell: 1.21.15

markzuckerbergoffice-260x271S&P, SEC, Two States Agree to Roughly $80 Million Settlement (WSJ)
Standard & Poor’s Ratings Services has agreed to pay more than $77 million to settle federal and state charges that it loosened its ratings criteria to win business and did not disclose those changes to investors. The settlement announced Wednesday is with the Securities and Exchange Commission, New York Attorney General Eric Schneiderman and Massachusetts Attorney General Maura Healey. Separately, S&P is still negotiating to pay more than $1.37 billion to the Justice Department and more than a dozen states to resolve claims S&P committed fraud by misrepresenting its ratings as independent and objective during the run-up to the 2008 financial crisis.

ECB Seeks to Inject Up to 1.1 Trillion Euros Into Economy in Deflation Fight (Bloomberg)
Mario Draghi called on the European Central Bank to make its biggest push yet to fend off deflation and revive the economy by unleashing a debt-buying spree of 1.1 trillion euros ($1.3 trillion). The ECB president and his Executive Board proposed spending 50 billion euros a month through December 2016, two euro-area central-bank officials said. The plan still faces a tense debate in the Governing Council and may change before the final decision on Thursday, the people said, asking not to be identified as the talks are private. An ECB spokesman declined to comment.

Druckenmiller Alums at PointState Make $1 Billion on Oil (Bloomberg)
Hedge fund manager Zach Schreiber stood on stage at Avery Fisher Hall in New York eight months ago and made a bold prediction. “We believe crude oil is going lower — much lower,” Schreiber, 42, told the audience of roughly 3,000 investors, including some of the biggest money managers in the industry. “If you are long, I’m sorry for you.” Then he showed a slide of a car stuffed with clowns. Crude was trading at $99 a barrel that day, bolstered by speculation that Russia’s annexation of Crimea and incursions into Ukraine would crimp shipments. Prices crept up over the next weeks peaking in June at $107. Then, as Schreiber predicted, the dive began. Oil fell more than 50 percent through the end of the year as global supplies piled up, helping Schreiber’s PointState Capital make about 27 percent for the year after fees. The New York-based investment firm’s profit was about $2 billion in 2014 with about half of that from the oil trade, according to people familiar with the matter, who asked not to be identified because the firm is private.

Facebook study shows it’s a job creator — not a killer (NYP)
A report commissioned by Facebook claims the social network generated a whopping $227 billion worth of economic activity and 4.5 million jobs last year. The study, prepared by consulting firm Deloitte, looked at everything from businesses that maintain Facebook pages to consumers who play games on the social network. “People believe that technology creates jobs in the tech sector and destroys jobs everywhere else,” Facebook Chief Operating Officer Sheryl Sandberg told Reuters. “This report shows that’s not true.” However, critics say the study is confusing cause and effect, and assigns Facebook too much credit for a range of tangential economic activities. For instance, the study attributes 16 percent of smartphone sales to Facebook. It based that finding on a separate European survey that showed an equal number of respondents said they could not live without social media, according to WSJ.com. The study also gives credit for consumers who donated $100 million for the ALS Ice Bucket challenge, saying the social network’s auto-play video ads were a key factor, Reuters reported.

New Hampshire lotto releases bacon-scented scratch-off (UPI)
The New Hampshire Lottery announced the release of its first-ever scratch-and-sniff ticket, which is designed to give off the alluring aroma of bacon. The “I (Heart) Bacon Scratch Ticket,” which sells for $1 and offers prizes of up to $1,000, was officially rolled out to stores this month, the lottery announced Monday. “The (NH) Lottery is focused on developing new and fun ways to engage customers. The I Heart Bacon scratch ticket combines two things people love: the chance to win cash and the wonderful, enticing smell of bacon,” Charlie McIntyre, executive director of the New Hampshire Lottery Commission, told WMUR-TV. Read more »

Write-Offs: 1.20.15

$$$ S&P’s Settlement With the SEC Isn’t the End of Its Problems [BusinessWeek]

$$$ Marc Faber berates central banks for ‘fraud’ [CNBC]

$$$ Fallout Builds From Insider Trading Ruling [Dealbook]

$$$ 2 Wall Street Deal Makers Form an Activist Fund With a Twist [Dealbook]

$$$ Human Ken Doll Risks Blindness To Become ‘100 Percent Plastic’ [HP] Read more »

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95 mm aptThe last several years have been lackluster, as the extravagant compensation lavished on financiers during the boom years failed to materialize following the recession. But this year signs are emerging that bountiful bonuses are back, at least for some, and those who sell high-end real estate are seeing buyers return to the marketplace with more confidence and thicker wallets…As professionals in finance, many bonus-rich buyers put a premium on making sound investments. “It is the old saying that cash flows never grow old, and covering your expenses never grows old,” said Daniela Sassoun, an associate broker at Douglas Elliman Real Estate. “A lot of my clients are in private banking or private equity, and I think the bonuses create a sense of financial security, like, ‘I have more liquidity to spend,’ but of course it is very well thought out. These are bankers so they run their numbers.” [NYT]

Like a giant middle finger, pointed directly at Greenwich.

Like a giant middle finger, pointed directly at Greenwich.

Steve Cohen’s dream of selling the most expensive apartment in New York City history is now officially dead and gone, now that One57’s penthouse has gotten the nine figures that Steve’s joint in the Bloomberg Building couldn’t. Read more »

  • 20 Jan 2015 at 3:19 PM

Congratulations, Dealbreaker Readers!

cliffasnessThe better-heeled among you will officially control more than half of the world’s wealth by sometime next year. Read more »

  • 20 Jan 2015 at 3:05 PM

SEC Suspends S&P For Being Bad

Standard_Poor_231211Standard & Poor’s will be suspended for a year from rating securities in the biggest piece of the commercial-mortgage bond market in a $60 million settlement with the U.S. Securities and Exchange Commission, according to a person with knowledge of the matter. The deal, which the person said may be announced as soon as tomorrow, will be the agency’s toughest action against a major credit rater. The SEC, which has been examining whether the credit rater bent criteria to win business in 2011, will ban the company from grading securities backed by multiple commercial loans, the person said. [Bloomberg]