Eating Out, With Chanos and Charlie

Author:
Publish date:

Technical difficulties prevented us from live-blogging this morning's Lehman Brothers conference call but no matter: an exponentially more important live-blog is but minutes away. If you've been watching CNBC, you know that Charlie Gasparino will be conducting a lunch interview at 1:35 PM with one of our favorite members of the hedge fund harem, Jim Chanos, at the A Club Steakhouse. We will be covering this historic breaking of bread in every excrutiating detail.
1:35: Roses on the table. Kynikos is not short Lehman. They're both wearing glasses and if you're blind, they could pass for twins.
1:36: Jim thinks the Wall Street model might be broken. Guys at adjacent table pretend not to be listening, except for one who might as well be sitting in Chaz's lap.
1:37: Charlie: "Dick Fuld-- did he do a good job at Lehman? You know Dick Fuld, right?" Jim: "Yes, I know of him...[listen I'm] not an insider, not a shareholder, not a short. he did a good job in '98. people can second guess if he did a good job this time around. he may emerge from it unscathed."
Commercial break question: Why was this held at Club A? We know they can afford an expensive meal, so why not go some place where we can have some fun like, I don't know, the best strip club on the New Jersey Turnpike, Puss 'n Boots? That's where I'll be holding my lunchviews, which start next week. Wednesdays, as that's Legs 'n Eggs Special day, from 12-2. If you would like to take part, get in touch.
1:42: Sue Herrera asks from Englewood Cliffs-- "Jim, you're the least short you've been in financials in a while. Why?"
Chan: "We were short these things a few years ago. But now the problems are pretty well discounted, and we're getting more disclosures. And a lot of stocks rally on bad news. As a short seller, that's my cue to leave."
1:46 Chanos was a client of Bear Stearns and got a call from them that fateful Thursday night asking if he'd go on CNBC just to tell everyone everything was cool and nothing was fucked.
Charlie: "Was Shwartz lying when he said everything was a-okay?"
Chanos: "No...not technically."
1:48: Chanos showed SEC chairman Chris Cox the error of their ways re: short selling rules, but in a gentlemanly manner, and not the way Gasparino would've preferred.
1:49 Sue Herrera has another question-- "Where's the bottom?"
Chans: [acts coys, like wizards don't have special powers to know these things] "We try not to call the market...I think we've seen the worst in financials but who knows."
Chaz makes a joke about steak. And scene.

Related