Remember Abraxas “A.J.” Discala? Ex-husband of Jamie-Lynn Sigler (who’s since moved on with Lenny Dykstra’s son)? Guy who swore he didn’t mean to suggest he was pumping and dumping penny stocks when he said to a friend, in discussing the share price of a company called Cubed: “I’m the fucking brake and the gas, jackass“? He’s now able to move a bit more freely without the pesky weight of ankle-monitoring bracelet, which was apparently cramping his style. Read more »
Legendary Investor Lenny Dykstra Will Sign “Anything” You Want This Weekend (And He Does Mean “Anything”)By Bess Levin
Not six weeks out of prison and Lenny Dykstra is wasting no time raising funds for what we hope is another billion dollar business venture or bid to reclaim Wayne Gretzky’s house. If you can get yourself to White Plains this weekend, you won’t be disappointed. Read more »
Despite reports that he was going to be released in time for Father’s Day, Nails actually ended up saying good-bye to his friends at the Victorville Federal Correctional Complex yesterday afternoon. Read more »
Banks Rediscover Money Management Again As Trading Declines (Bloomberg)
Global banks, forced by regulators to reduce their dependence on profits from high-risk trading, have rediscovered the appeal of the mundane business of managing money for clients. Deutsche Bank is now counting on the fund unit it failed to sell to help boost return on equity, a measure of profitability. UBS is paring investment banking as it focuses on overseeing assets for wealthy clients. Goldman Sachs, JPMorgan Chase and Wells Fargo, three of the five biggest U.S. banks, are considering expanding asset- management divisions as they seek to grab market share from fund companies such as Fidelity Investments. “Asset management is a terrific business,” said Ralph Schlosstein, chief executive officer of Evercore Partners Inc., a New York-based boutique investment bank that last month agreed to buy wealth manager Mt. Eden Investment Advisors LLC. “Asset managers earn fees consistently without risking capital. Compare that to other businesses in the financial services.”
Hedge Funds Win as Europe Will Pay More for Greek Bonds (Bloomberg)
Hedge funds drove up prices for Greek sovereign debt last week after determining that European finance ministers would back off a pledge to pay no more than about 28 percent of face value to retire the nation’s bonds. Money managers correctly wagered that not enough bondholders would participate at that level to get the deal done. That would put at risk bailout funds that Greece needs to stave off economic collapse. Transactions involving Greek bonds “increased by the day” after it became clear that the buyback was going to happen, with hedge funds accounting for most of the purchases, said Zoeb Sachee, the London-based head of European government bond trading at Citigroup Inc. “If all goes according to plan, everybody wins,” Sachee said. “Hedge funds must have bought lower than here. If it isn’t successful, Greece risks default and everybody loses.”
GE’s Swiss lending unit for sale, UBS to bid (Reuters)
General Electric Co wants to sell its Swiss consumer lending business, two sources familiar with the matter said, with UBS one of the parties interested in a deal that could be worth up to 1.5 billion Swiss francs ($1.62 billion). The sources told Reuters that UBS was one of at least two parties who plan to submit bids in an auction process. “GE wants to finalize the sale of GE Money Bank by the end of the first quarter,” said one of the sources.
Brian Moynihan: ‘Fiscal Cliff’ Repercussions Could Stretch in 2014 (CNBC)
“I’m more concerned about business behavior slowing down than I am about consumer behavior,” Moynihan told “Squawk Box.” “I think we’re in danger if this thing strings out into 2013 that you could start to have problems of what 2014 would look like.”
Icahn Fails In Oshkosh Tender Offer (WSJ)
The activist investor was tendered only a meek 22% of shares in an offer he used essentially as a proxy for whether shareholders would support his board nominees. Icahn, who had pledged to drop the offer and his proxy fight if he didn’t receive at least 25% of shares tendered, says he is indeed dropping the tender offer.
Ex-baseball star Lenny Dykstra sentenced in bankruptcy fraud case (Reuters)
Lenny Dykstra, the 1980s World Series hero who pleaded guilty earlier this year to bankruptcy fraud, was sentenced on Monday to six months in federal prison and ordered to perform 500 hours of community service. The 49-year-old former ballplayer – who is already serving time in state prison for grand theft auto, lewd conduct and assault with a deadly weapon – was also ordered to pay $200,000 in restitution. In the federal case, Dykstra pleaded guilty in July to bankruptcy fraud and other charges. According to the written plea agreement, he admitted defrauding his creditors by declaring bankruptcy in 2009, then stealing or destroying furnishings, baseball memorabilia and other property from his $18.5 million mansion.
Teacher disciplined for receiving foot massages from students (SLT)
A Taylorsville Elementary School teacher has returned to his third-grade classroom after being disciplined for violating professional standards after students reported they scratched his back, rubbed his feet and had other inappropriate contact while at school. Granite School District officials found no criminal conduct by elementary teacher Bryan Watts, 53, who has worked at the school since 2004, but the district claims to have taken “appropriate disciplinary action” following complaints about Watts…Granite District police Detective Randall Porter started an investigation into Watts’ conduct Oct. 9 after a mother expressed concern to the district after her daughter reported odd classroom behavior by Watts. “She complained that her daughter [name redacted] told her that Watts asks students to rub his feet and back during ‘movie time,’ that Watts told the class that they should not tell their parents about activities that happen in the classroom, and that Watts scared a student by hitting a hammer on the student’s desk,” Porter wrote in his 19-page report…officials also said there were student statements about odd activities, including playing dodgeball in Watts’ classroom. Read more »
They say that’s the only way Dykstra* will learn that in our society, you can’t rip toilets and other bathroom fixtures out of the floors of foreclosed houses and sell them to a pawn shops, or bounce checks to hookers, or drop trou for the cleaning staff just because you feel like it. Read more »
It’s Going To Be Quite Some Time Before Legendary Investor Lenny Dykstra’s Lips Taste Sweet Freedom, Twizzlers Purchased Outside The Confines Of A Prison CanteenBy Bess Levin
Former New York Mets star and financial guru Lenny Dykstra was sentenced to three years in state prison on Monday, after a judge rejected a last-ditch effort to change his no contest plea and fight the charges. He had pleaded no contest to grand theft auto and filing a false financial statement in connection with a scheme to use somebody else’s paperwork to steal or lease several new cars, according to court records…In delivering the sentence, L.A. County Superior Court Judge Cynthia Ulfig said the effort to steal cars showed “sophistication, planning.” Her sentence came after Dykstra’s lawyer unsuccessfully urged the court to withdraw the no contest plea. But Ulfig said Dykstra was given ample due process and he had numerous opportunities to show evidence that he was innocent. After she rejected the plea withdrawal, Dykstra addressed the court, making a rambling and repetitive speech requesting leniency. “Did I do something I’m not proud of? Yes,” Dykstra said. “Am I a criminal? No.” [LA Times, earlier]
Dykstra, in an exclusive statement to the Daily News, says that at no point had he agreed to participate in [previously announced fight versus Jose Canseco], and that Dan Herman, 26, of Chester County, whom he calls “A starf—er,” booked the fight without his consent and made up quotes in the press, including the Daily News, that Dykstra hated Canseco. Dykstra says that he doesn’t even know Canseco and has no beef with him. “I never agreed to anything,” the embattled Dykstra told us yesterday in an email. “Damon Feldman and Alki David continued to use my name to sell tickets and promote their event up until the last minute. They showed up at my door unexpected, I didn’t even know who they were,” Dykstra explained. He then showed Feldman and David an angry email he sent to Herman Wednesday night, chewing out Herman for booking the fight without his permission. By phone yesterday, Dykstra denied that Herman was ever his business manager. “If he’s my business manager, I’m a f—in’ ballerina,” he told us. [Philly, earlier]