breakups

  • 30 Sep 2014 at 2:39 PM

Morningstar Still Has 99.579% Confidence In Pimco

As you may have heard, Pimco co-founder Bill Gross announced last Friday that he was leaving the firm he started in 1971 for Janus Capital Group, before parent group Allianz could fire him. Since then, analysts, commentators, investors, and feral cats hoping to take Bob Gross‘s place have weighed in on who will ultimately emerge stronger from this breakup. The people who pulled $10 billion from Pimco immediately after hearing that Gross was out clearly believe that that place is nothing without him. Pimco management has taken the other side of the argument. Ron Insana at CNBC just wants everyone to know that “Bill Gross is NOT crazy.” And what does the ratings branch of Morningstar think? Apparently that Pimco is still a world class athlete of a fund but that it might have to stand on the short box. Read more »

Remember, back in January, when Pimco co-CEO Mohamed El-Erian announced he was leaving the firm, and founder Bill Gross lost his mind? And did things like call up people at Reuters and demand they report that El-Erian had ghost written a Wall Street Journal article about tension at the firm, as part of a campaign to “undermine” Gross? And “indicated that [he knew this because] he had been monitoring El-Erian’s phone calls”? And when he couldn’t convince anyone to print the story, snapped “You’re on his side. Great, he’s got you, too, wrapped around his charming right finger”? And then went on Bloomberg TV and demanded El-Erian violate his NDA by meeting Gross in a public forum and telling him to his face why he left (even though Gross really kind of already knew)? And was more or less forced to take remedial classes re: how to be okay with people looking him in the eye and speaking to him in general? In an interview earlier this week, El-Erian said he did not see any of this coming, even from Secretariat. Read more »

Or so he says. Read more »

  • 10 Apr 2014 at 4:27 PM

Bill Gross Wants El-Erian To Say It To His Face

Gross, speaking in an interview with Bloomberg Television’s Trish Regan today, said El-Erian’s departure is still a mystery for him and a disappointment for the firm, which manages the world’s biggest bond fund. “I would say, ‘Come on, Mohamed, tell us why’,” Gross said in the interview. [Bloomberg, earlier]

  • 19 Jun 2013 at 6:05 PM

UK Considering Taking An Ax To RBS

The British government is considering breaking up Royal Bank of Scotland Group, the country’s Treasury chief said Wednesday, a potentially radical move that underscores policy makers’ mounting frustration with their inability to arrest a five-year banking crisis. George Osborne, the U.K.’s Chancellor of the Exchequer, said the Treasury “will urgently investigate” the case for splitting RBS—which is 81%-owned by the government following a 2008 bailout—into two separate banks: one housing the lender’s healthy assets and the other containing its hefty pile of troubled loans and securities. “We will see whether it’s right for Britain to, in effect, see RBS broken up,” Mr. Osborne said in his annual speech to London’s financial community, a black-tie affair that has become a regular venue for unveiling major news about government banking policy. [WSJ]

Henry Winkler once said, “Assumptions are the termites of relationships.”1 In 2011, Bill Ackman assumed it was okay to talk to The New York Times about David Einhorn’s business and, like a homeowner forced to move out for three days while a pest control company sprays the place, he’s been forced to pay. Big time. Read more »

And then decided that sticking with the “worst deal in the history of American finance,” which has cost it $40 billion in cleanup so far, made them at least look like responsible adults, facing the consequences of their actions, rather than deadbeats trying to take the easy way out. Read more »