Opening Bell: 12.07.09
Treasury Said to Link Citigroup Sale to TARP Payback (Bloomberg)
"This should be well thought-out for the benefit of all constituencies, and in this case that includes shareholders, the government and the taxpayers," said Dennis Santiago. "Just because Bank of America goes doesn't mean you have to rush Citigroup."
Hedge funds alarmed at regulatory probes (FT)
"Given recent events and upcoming legislative changes, it's very likely managers are going to face audits, due diligence questions and investigations, which will directly look for fraudulent or corrupt activities," says Ellen Schubert, chief adviser to Deloitte's asset management services group. "There is no bigger game-changer for a hedge fund than fraud. Firms that took years to build, have been wiped out in days."
Scholarly Investments (NYT)
"If you're at a hedge fund, [charter schools] are definitely the hot cause," said Joe Williams, the executive director of Democrats for Education Reform.
The $700 Billion Man (Washington Post)
"Come on, you bums," Neel Kashkari calls to his dogs, two giant Newfoundlands. "Boys, let's go."
Estimated TARP Cost Is Cut By $200 Billion (WSJ)
The Treasury now estimates that over the next 10 years TARP will cost $141 billion at most, down from the $341 billion the White House projected in August. The reduction stems in large part from faster-than-expected repayments by some of the nation's largest banks, as well as less spending on programs to help shore up the financial sector.
John Paulson Returns To Earth (BW)
BusinessWeek asks: "Is John Paulson a one-megahit wonder?"
Merrill Bull Returns To Business Cards (WSJ)
Former Merrill Lynch investment bankers "won a major concession from Bank of America, as it agreed to reverse a decision preventing them from using the old Merrill bull logo on their business cards." Losing the bull, which had been a part of Merrill Lynch's marketing since 1974, was a blow to many Merrill Lynch staff, with one quoted at the time as saying, "Merrill without the bull is like Superman without a cape." (photo-credit: efinancialnews.com).