Goldman Sachs does not have to pay the people trying, at its behest or otherwise, to put former programmer Sergey Aleynikov in jail (again). But it does have to pay to try to keep him out of jail. For now. Unless he does go to jail (again). Then all bets are off. Which is good for old Sergey (for now), because, as you might imagine, given the ordeal he’s been through, he’s broke. Read more »
so that’s nice
William Ackman’s bad year is taking a big toll. The activist hedge-fund manager has seen his firm’s assets under management decline by $1.2 billion from a high point earlier this year, largely due to investment declines, according to people familiar with its operations…At the end of September, Pershing Square’s total assets under management stood at $11.2 billion, according to a person familiar with the matter. That is a $1.2 billion decline from the $12.4 billion that Pershing Square reported it had under management as of March 1 in a filing with the Securities and Exchange Commission…People with knowledge of the firm said the decline resulted almost completely from weak investment performance, and net redemptions by investors had amounted to less than $150 million so far in 2013. [WSJ]
Losing Any Credibility Whatsoever Not Such A Bad Thing For Ex-Bank CEO Who Wanted Nothing More Than The Time To Curl Up With A Good BookBy Bess Levin
Over at the Wall Street Journal today you will find a “Where are they now?” round-up of what “The Cast of the 2008 Financial Crisis” has been up to of late. Most of the entries mention books (Paulson, Geithner), current jobs on Wall Street and with the government (Thain, Bernanke, Steel, Dimon, Weinstein, Paulson), low-profiles and responses of “No comment” (Cayne, Mozilo, Fuld, Diamond). While lawyers for former BofA chief Ken Lewis did not get back to the Journal, “someone” close to the guy did offer this delightfully quaint update, which actually sounds like it was intended for his college’s alumni magazine or the Lewis family newsletter. Read more »
According to Bloomberg, SAC Capital announced today that it will be leaving a little extra in everyone’s stocking next year.
SAC Capital Advisors LP, the hedge-fund firm that’s facing federal insider-trading charges and a money-laundering lawsuit, is raising 2014 bonuses for its portfolio managers by 3.5 percentage points to help retain employees, a person with knowledge of the decision. The increase, announced to employees in meetings today, will be paid to equity, macroeconomic and quantitative-trading portfolio managers, said the person, who asked not to be identified because the discussions are private. SAC portfolio managers are typically paid an annual bonus of 15 percent to 25 percent of the profits they generate from their investments…SAC told employees today that it will guarantee a minimum compensation of $300,000 for its equity analysts for next year, the person said. A spokesman for the Stamford, Connecticut-based firm declined to comment.
SAC has long been known for paying extremely competitively, so nothing about this should be too shocking; the Big Guy figured out a long time ago that you gotta spend money to make money. Still, that it comes on the heels of reports employees are holding covert interviews with other hedge funds at various rest stops off of 95 suggests there may be some minor element of desperation to keep people happy. And maybe that SC is one analyst departure away from barricading the doors of the firm, dimming the lights, and using the words of others to make his case when his own fail him. Read more »
The International Monetary Fund said Thursday that it would continue to finance Greece as long as it is able to complete a review of the cash-strapped country’s finances by the end of July as expected. The statement by the Washington-based multilateral lender came in response to reports that several European central banks were refusing to roll-over loans to Greece, something that could create a shortfall in Greece’s financing. A media report said the IMF had warned European countries that it would cease lending to Greece as early as July if the funding gap wasn’t filled. [WSJ]
You get a raise! And you get a raise! And you get a raise! Read more »
Twitter Unrolls Security Feature That Makes It Slightly More Difficult To Hack Into [Insert News Organization Here] And Crash The MarketBy Bess Levin
After continued high-profile security breaches over the past year, Twitter Inc. on Wednesday announced it will bring increased security features to users, a way to further verify a user’s identity when logging in to his or her profile…The process is much like other two-factor authentication services across the Web. When a user tries to log in to his or her profile, they are asked to provide a cellphone number. Twitter sends an SMS message to that phone, and the user is asked to enter that code to continue the login. The new feature is optional, and must be turned on inside the settings menu…The new feature comes in the wake of a string of widely publicized hacks of visible Twitter accounts, including those owned by news outlets like the Financial Times, the Guardian and others. Most recently, when the Associated Press account was hacked, a single alarmist tweet was enough to send U.S. stock markets into a tailspin, plunging the Dow by upwards of 150 points in a matter of minutes. [WSJ, earlier]