JPMorgan Chase & Co.’s parts are probably worth more to investors than the whole after regulators proposed tougher rules penalizing firms for size and complexity, according to Goldman Sachs Group Inc. JPMorgan could unlock value by splitting its four main businesses or dividing into consumer and institutional companies, Goldman Sachs analysts led by Richard Ramsden wrote today in a research note. Units of New York-based JPMorgan trade at a discount of 20 percent or more to stand-alone peers, they wrote. [Bloomberg]
oh no they di’int
According to the Wall Street Journal Pimco investors have pulled $10 billion since Friday, when it was announced that founder Bill Gross was taking his bonds and leaving. Is this development cause for concern over in Newport Beach? No, says Pimco management, and for three reasons:
1. Most people aren’t going to follow ole whatshisface out to Denver.
2. They’ve got the liquidity to handle however many billions in redemptions the firm ultimately sees.
3. Everyone knew this was going to happen initially, and not because Bill Gross is some great investor but because there are always outflows after any quasi senior employee leaves. Bill Gross isn’t special. Twenty-seven year-old VPs cause outflows.
BofA Employees Respond To Merrill Lynch Business Card Complaints With Graphic Images Of Flag-On-BullBy Bess Levin
Earlier this week, we learned that Bank of America has a number of very unhappy ex-Merrill Lynch brokers on it hands. Their beef? New business cards that feature a slightly smaller bull than in times past, an obvious affront, as they see it, to the Merrill brand. While no formal demands have been made, it’s clear that in order to be made happy, the former Mother Merrill employees will need to see the bull reinstated to its former size and glory. And, sure, an apology from Bank of America brass for the lack of respect would be nice. At this time, CEO Brian Moynihan is yet to make a formal statement regarding the redesigned cards, but rank-and-file BofA-ers, at least those with access to MS Paint, have sent a message that they are less than sympathetic. Read more »
On Tuesday afternoon, an article appeared over at the Times that referred to Lloyd Blankfein as the “former” CEO of Goldman Sachs. As Blankfein is very much the current chief executive, a correction was issued.
…teeing the bank up for the deployment of some corporate Twitter account sass. Read more »
Earlier today it was noted that, to the surprise of many, Bill Ackman and Carl Icahn had refrained from asking questions or dialing in and making sudden outbursts during this morning’s conference call to discuss Herbalife’s fourth quarter earnings. Obviously this came as a shock on account of Ackman and Icahn taking many opportunities in the past to share their feelings re: the company and each other. And while it’s true both men personally held their tongue’s today, according to Pershing Square, one of its analysts had planned to ask questions on Bill’s and the hedge fund’s behalf but was shot down. Read more »
Let’s Get One Thing Straight: Ken Griffin Only Accuses People Of Attempting to Gain A Competitive Advantage By Gaining Access To Proprietary Trading Strategies– He Does Not Get Accused!By Bess Levin
Back in October, a former Citadel employee, Yihao “Ben” Pu, was arrested and charged with “stealing trade secrets” from Ken Griffin (by “copying company data onto a removable storage device,” and then attempting to sell it to Teza Technologies AKA the firm a bunch of ex-Citadel guys tried to join in 2009 before being sued for doing so by Griffin, as well as the the shop a former Goldman programmer, Sergey Aleynikov, went to jail for after giving it proprietary GS code). Now, because apparently people just can’t help themselves, KG has been forced to levy another allegation of theft against some former employees who he believes took a piece of his property when they left for high-frequency trading firm Jump Trading. Does Griffin have actual evidence that they swindled him? No, not exactly. But he’s got a hunch, and that hunch is based on the fact that since 2005, when people from Citadel’s “tactical trading group” started leaving for Jump, “some of the strategies” employed by the TTG “have become less profitable” and are “behaving in a way consistent with their having been copied by rivals.”
So what KG would like a court to do is force Jump to turn over “personnel documents, strategy and trading records, and source code,” which will prove him right and the Citadel defectors to be the pillagers he knows they are. Evidence in hand, Griffin will then sue Jump and everyone named Ken Griffin will go home happy. The only issue that needs to be worked out is Jump Trading’s cooperation, which so far is proving difficult to obtain. In fact, the firm is being downright unhelpful and not only that? Its legal team has accused Ken of being the thief, or at least trying to be. That’s right: the way JT sees it, Citadel’s new algorithm development system is a two-step process that goes something like this:
Step 1: Steal successful algorithms from rival firm.
Step 2: Use them. Read more »
Is that how it is? Read more »
Yesterday, the Wall Street Journal ran a front page story reporting that the Securities and Exchange Commission had “blown” the cover of whistleblower Peter C. Earle. The article claimed that Earle, a former employee of Pipeline Trading Systems turned government informant, had his identity “inadvertently” revealed through a “gaffe” on the part of an SEC lawyer, who showed a Pipeline exec “a notebook from the whistleblower filled with jottings about trades, calls and meetings.” The executive was said to have recognized Earle’s handwriting and told his colleagues, who had previously suspected but did not know for sure that “Pete’s the whistleblower.” The story was easy to believe because if you’ve been keeping up with the SEC over the last number of years, you know that this sounds exactly like something they’d accidentally do. Except that whereas the regulator fully copped to, for example, missing Madoff while trying to access ladyboyjuice.com 385 times/day, it says that this accusation? Is bull shit. It did not “inadvertently” “blow” anyone. Read more »