Opening Bell: 02.02.09

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Nadel Denied Bail, Plays With Soap-On-A-Rope In Shower (FINAlternatives)
The problem is the scope of the alleged crime: it was too reasonable. If you're going to commit an act of fraud (and get caught) the idea is to go so big that when people learn of the duplicitous act they're forced to sit down and put their heads between their knees. You have to go for the "I literally shit myself when I heard about that" fraud. See: Madoff.
Lehman's The Place To Be (WSJ)
Need a job? Try Lehman! New "CEO" Bryan Marsal has kept (slash brought back) about 320 of the original Lehman crew to help through the winding down of the company, and they're looking for real-estate and derivatives people still yet. The dismantling is expected to take 18 to 24 months - I could see it going to 32 - which provides a rare form of job security in today's market. There's also this unsettling, albeit true quote: "Given the state of the world we're in, the things I'm learning working on the largest bankruptcy in history are a set of skills that could be marketable for the foreseeable future."
In related, news the Financial Times has it that Lehman creditors could receive stock in lieu of cash:
"The plan would allow Lehman to cordon off difficult-to-sell assets and wait for the markets to improve, preventing a fire sale of its holdings, said Marsal, co-head of Alvarez and Marsal, which is managing Lehman's liquidation. It is now in its preliminary stages but, if it is adopted, the two standalone companies could be publicly listed within two years."
Steelers Win Sixth Super Bowl (WSJ)
Thoughts? Favorite Commercials?


JP Morgan Analyst Can't Sleep For Money Markets (Bloomberg)
"James "Jes" Staley, head of JPMorgan Chase & Co.'s investment unit, said the $4 trillion money-market fund industry is the "greatest systemic risk" to the financial system that hasn't been adequately addressed.
"What keeps me up at night most of anything we do at JPMorgan Asset Management is the money-market fund space," Staley said at a discussion hosted today by Credit Suisse Group AG in Davos, Switzerland. "One of the things that has to come out and get a lot more attention and discussion is how do we take the systemic risk posed by money funds out of the system?""
Chrysler Demands Price Cuts On Parts (FT)
Chrysler-Fiat NA is looking to penny pinch passing the woes along to the suppliers in the form of a 3% squeeze. This doesn't bode that well for the suppliers, as pointed out:
"I suspect there will be some relatively large [car parts suppliers] that will go into Chapter 11 in the near future," said Thomas Manganello, head of the auto industry practice at Warner Norcross & Judd, a Detroit law firm that represents numerous suppliers."
Obama Administration Delays Bad-Bank Model To Announce Executive Pay (CNBC)
A topic of standing debate, the discussion of Executive pay structures has gone past food fight and right into shit slinging. The most opportune time to address something is when there's emotion involved though, so it makes sense that we're going to tackle this guy now - later, since we're in the mood to do stupid shit, let's grab our wives/girlfriends and tell them we have to work on Valentine's day, and then propose a three way to make up for it. Sidetracked: this is nothing short of petty, some psychological power trip that doesn't really matter to anyone but the CEO's/Execs of the firms that are under duress. But, it gives people a reason to be angry, and a platform from which they can yell, and history has it that those are two of the most coveted things in American culture. The simple - almost comical - fact of the matter is that American's have been pissed about how much "those people" make for a long, long time and this is their way of exercising that frustration.

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