The U.S. territory’s leaders are seeking to lure mainland residents such as hedge-fund billionaire John Paulson. Moving to Puerto Rico could allow Paulson and other top-earning taxpayers to shield future income from the Internal Revenue Service without giving up their passports…Even with potential tax advantages, Paulson and others considering a move to Puerto Rico should be wary, said Argeo Quinones Perez, a professor of economics at the University of Puerto Rico’s Rio Piedras campus. “For people as wealthy as Mr. Paulson and the like, spending half a year in this provincial, third-world environment would be like spending half a year in minimum-security prison,” he said in an e-mail. [Bloomberg, related]
Until recently, being chief executive officer of Jefferies was an exercise in getting shit on. As the man in charge for the last 13 years, Richard Handler has had to put up with a lot of hurtful remarks that, while nothing to the person tossing them off, undoubtedly stung quite badly. “Third-tier bank.” Place “I wouldn’t let my maid’s kid work.” “Poor man’s Morgan Keegan.” So you can imagine that after a string of victories over the last several months that included getting involved in the slaughterhouse business and paying all-cash bonuses unlike some people, Handler and Co. would be feeling pretty good about themselves and that after announcing to the world they were getting paid more this year than their counterparts at big kid banks, they’d be feeling REALLY good about themselves. That payday, however, did not go over well when input into Moody’s proprietary just-make-it-up credit-rating model, and now Handler’s plan to gather everyone up to watch as the board shoots his compensation out of a tee-shirt gun in hundred dollar bills is completely ruined.* Read more »
Fitch Ratings is showing the U.S. some tough love. Read more »
Because he’s had some previous success putting bankers on deadlines for complying with his demands and because he has had it up to here with financial regulators and the companies they supervise, both of which have been dragging their heels since Dodd-Frank was passed, CLSA analyst Mike Mayo appeared on CNBC today to issue a message: The time for thumb twiddling is over. Move your asses, NOW, or he’ll move them for you. Read more »
Richard Eggers knows what we’re talking about. Read more »
MDubs has issued a new state budget and debt report and Arizona, Nevada, Connecticut, Wisconsin? Might want to run. (Also, re last year’s prediction on muni bond defaults- she was just ball-parking, no one should’ve taken those numbers at face value.) Read more »
Please be advised that today from 4:30 pm – 5:30 pm – Goldman, Sachs & Company will be conducting an evacuation drill from 200 West Street to Murray Street, west on Murray Street to River Terrace, north on River Terrace to Chambers street east on Chambers Street to West Street and back to 200 West Street.
Please note that the group size drill is 2,500 people.
This Memorial Day in Bridgehampton, Kynikos founder Jim Chanos will be honored for his contributions to Miracle House, a charity “a charity that helps caregivers and patients who come to New York in search of medical treatment.” This is lovely and Jim is very generous. That’s not what we’re here to talk about. What we’re here to talk about is the host, LuAnn de Lesseps. The artist formerly known as “The Countess” is a cast member of the New York edition of Real Housewives. Except that LuAnn is no housewife, having divorced her husband, THE COUNT (pictured at left with his former lady), last year. (I’m not proud that I watch this show but I’m not embarrassed either.) LuAnn started off this season on the prowl and now she is getting desperate. Last week she went on a date with a guy named Courte who has who has highlights. She’s also looking for a place to bunk in NYC, having lost the UES townhouse in the settlement and being relegated to the Hamptons home. And, and I feel terrible for judging a reality show housewife by her cover, but I’m thinking she might be looking to land a rich guy. Finally, and most importantly, she’s trying to get her music career off the ground. Jim, we’re warning you because we care. Read more »