Lehman Used 'Alter Ego' To Transfer Risks (NYT)
In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books. The firm, called Hudson Castle, played a crucial, behind-the-scenes role at Lehman, according to an internal Lehman document and interviews with former employees. The relationship raises new questions about the extent to which Lehman obscured its financial condition before it plunged into bankruptcy.
AIG 'Strongly Objects' To Pay Restrictions (FT)
In Monday’s filing, AIG said it “strongly objected” to Mr Feinberg’s decision in November to reduce the salaries of David Herzog, chief financial officer, from $675,000 to $350,000, and Kris Moor, the head of the property and casualty unit, from $1m to $450,000. AIG’s board also expressed concern that Mr Feinberg’s move to cap the cash salary of the top 100 staff to $500,000, unless there were exceptional circumstances, put the insurer at a “competitive disadvantage”.
Trump and Bondholders Gain Control of Casinos (NYT)
Mr. Trump joined with bondholders in a successful $225 million bid that beat out a rival offer by Carl C. Icahn.Much of the money for the bid was put up by Avenue Capital Management. Mr. Trump will control 10 percent of the company and will have the option to increase his stake in the future. Rather than cash, Mr. Trump offered the bondholders the use of his name on the three casinos. “The Trump brand is worth millions of dollars to the debtors,” the bankruptcy judge, Judith Wizmur, said in her ruling. “The debtors’ identification with the Trump Organization raises its profile in the gaming industry.”
Nine Year-Old Fossil Hunter Finds New Species Of Human Ancestor (Bloomberg)
Matthew Berger was about 15 meters (49 feet) from his dad, Lee, a paleontologist working at the archeological dig in South Africa known as the Cradle of Humankind, when he called out, his father said during a briefing yesterday with reporters. “Dad, I found a fossil,” the youngster said.
Former Northern Rock Executives Fined, Banned (AP)
The Financial Services Authority said Tuesday it wanted its sanctions against Northern Rock's former deputy chief executive David Baker and former managing credit director Richard Barclay to be a ''loud and clear message that we are serious about taking action against senior directors where they step over the line.''
Birds Aren't In It For Love, Research Says (Reuters)
"The main discovery is that so many birds do divorce for what humans would describe as selfish reasons," Stutchbury said, noting that females may seek out males that are more colorful and better singers, or look to "step up in the world" and move to areas that are safer and have more food.
Imagine The Bailouts Are Working (NYT)
Close your eyes and imagine it with Andrew Ross Sorkin.
FDIC's Bair Says Banker Pay Can Pose Systemic Risk (Reuters)
Bair said the agency is not seeking to set specific pay levels but believes that banks with risky compensation plans should have to pay more for deposit insurance.
Hedge Fund Managers Invest On Capitol Hill (Politico)
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