Citigroup’s got (half of) your (total compensation’s) cold hard cash right here. Read more »
U.S. federal agents who seized more than $4 million in U.S. banknotes shipped from Alfredo Piano’s Buenos Aires bank uncovered what they claimed was a cache of dirty money…Piano’s banknotes became the subject of recent scrutiny in federal court in Washington, where the bills were named defendants in a lawsuit called U.S. v. $4,245,800 in Mutilated United States Currency. In it, the U.S. alleged that the tattered cash that Piano’s Banco Piano SA had tried to exchange at face value was likely the proceeds of criminal activity. Piano argued that his bank’s role is to help Argentines get new greenbacks when their old ones get burned, ripped or, in some cases, sent through the washing machine. Hashing out whether the bills fell under the government’s figurative, criminal definitions of dirty and laundered, or merely Piano’s literal ones, took an 18-month legal proceeding and insights from Argentine money-hoarders, the Secret Service and an arm of the U.S. government called the Mutilated Currency Division…Mounting the defense of his clients’ money, Piano argued that Argentines are world-class stashers of cash dollars, and that misfortune will naturally befall some of the paper money that people hoard in mattresses, walls and holes in the ground…On November 25, a year and a half after the bills were seized, U.S. District Judge Emmet Sullivan approved a settlement reached between the two sides. It called for returning about $4 million to the bank. [Bloomberg]
Last year, a li’l investment bank that could called Jefferies paid out bonuses comprised entirely of cash. This proved pretty popular, so this year, CEO Dick Handler has decided to do it again. Read more »
Summer analysts were said to receive their offers on Friday. Read more »
California Jeweler Is Sorry He Traded A Rolex, Unmarked Envelopes Of Cash For Inside Information Re: Herbalife, SkechersBy Bess Levin
Won’t happen again. Read more »
Back in the day, as in pre-crisis, bonus season on Wall Street was a happy time. Sure, you still had your miserable pricks who would bitch and moan about the fact that they hadn’t gotten as much as the guy who sat next to them, even they the guy who sat next to them was a “non-contributing zero who wouldn’t recognize alpha if it bit him in the ass,” but prior to to fall 2008, anyone who was unhappy about his or her bonus was a) quibbling over receiving a huge sum of money instead of an imperial fuck-ton of money and b) in a position to actually make good on a threat to jump ship, since firms were hiring. Now, with a few exceptions, bonus season makes people feel sad. Angry. Powerless. Frustrated. Confused. Like the world is out to get them. Not only has the total amount of one’s bonus come down, but many companies have decreased the cash portion, while increasing the deferral period on stock to, in some cases, almost half a decade. Then you have Jefferies. Last year it let employees decide between an all stock bonus or an all cash bonus with 25% lopped off. This year the investment bank-cum-butcher shop isn’t even forcing anyone to choose, instead dumping a bag of cash on people’s desk and reminding everyone who loves ‘em. Read more »
Oh sure, total compensation was up on average but cash bonuses took a nice hit. Want to explain to Lloyd Blankfein et al how they’re supposed to strip naked and roll around in a bunch of company stock? Read more »
The last month or so has not been the best of times for Phil Falcone. Harbinger Capital’s flagship is down, Goldman Sachs, Blackstone and some others have pulled their money, investors have been giving him shit for borrowing $113 million from one of his funds (where redemptions had been frozen) in order to pay personal taxes, he had to put up his art as collateral to borrow even more cash (for what, it’s unclear), he’s being investigated by the SEC and every time he drives down the road he just wants to jerk the wheel into a god damn bridge abutment.
First, though, he’d like to put some rumors to bed, and in a profile with the Times yesterday, did just that.
* On the hideous suggestion he’s got a liquidity problem:
Mr. Falcone has been selling investments. He has unloaded stakes in Citigroup and The New York Times Company and a $650 million investment in Inmarsat, a British satellite company. All of this has led to speculation in the hedge fund community that Mr. Falcone and his firm are confronting a cash squeeze. If more investors withdraw money, the whispers go, Mr. Falcone could be in trouble. Nonsense, said Mr. Falcone in an interview in his office. “The last thing I’m thinking about in the morning is whether I have a cash-flow problem,” he says.
* On people not getting that he loaned himself investor money because he really needed it and not because he was just dicking around.:
A little more than a year ago, Mr. Falcone took a $113 million personal loan from the fund, a move that was vetted by his lawyers, he said. Mr. Falcone said a big chunk of his personal wealth is tied up in his own funds. “It’s not like I have $113 million in my checking account,” he said, chuckling.