Until It Lost Four Times Its Annual Earnings In A Matter Of Minutes, Knight Capital Was Very Profitable, And Guess What, The Company Doesn't Need Your Charity Regardless

...says former CEO who may or may not be authorized to speak for the place. The co-founder and former chief executive officer of battered market-maker Knight Capital Group gave a bullish assessment of the company's future, telling CNBC that Knight can "definitely survive," even without the help of a financial savior. If Knight should go under, "you'd have a hole in the marketplace," said Kenneth Pasternak who retired from Knight in 2002. The market-maker "needs to restore the confidence of the community at large, but its a very important player and frankly, was a very profitable player until three days ago." [CNBC]
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...says former CEO who may or may not be authorized to speak for the place. Ya hear that would-be buyers? You can piss all the way off.

The co-founder and former chief executive officer of battered market-maker Knight Capital Group gave a bullish assessment of the company's future, telling CNBC that Knight can "definitely survive," even without the help of a financial savior. If Knight should go under, "you'd have a hole in the marketplace," said Kenneth Pasternak who retired from Knight in 2002. The market-maker "needs to restore the confidence of the community at large, but its a very important player and frankly, was a very profitable player until three days ago."

No 'White Knight' Needed For Knight: Co-Founder [CNBC]

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Carl Icahn Gives Son Four Years To Prove Himself

Ten years ago, Carl Icahn hired his son Brett to be an analyst at Icahn Enterprises and the kid didn't fuck anything up so he got to keep his job. Two year ago, Carl gave Brett and another employee, David Schechter, $300 million to invest under the "Sargon portfolio," and the guys returned 96 percent (before fees) through June. Last month, Carl tossed the duo an additional $3 billion and a contract that expires in 2016, at which time Papa Icahn will either officially Brett a worthy successor or offer to serve as a reference for his next gig. Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism. Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund. After hiring Brett as an investment analyst a decade ago, Icahn allocated the $300 million to his son and Schechter in April 2010 to invest in loans and securities of companies with less than $2 billion in equity value. Their investments, internally dubbed the Sargon portfolio, generated a gross cumulative gain of 96 percent by the end of June, according to a July 27 filing with the U.S. Securities and Exchange Commission...“These two guys doubled our money over the last two years,” the elder Icahn said in an interview. “You can’t complain about that.” Carl Icahn Hands Son Brett $3 Billion To Prove His Mettle [Bloomberg]

Enter The Second Annual Dealbreaker NCAA Tournament Challenge Today

As Dealbreaker historians will recall, last March marked our first Dealbreaker NCAA Tournament Challenge. It was inspired by a financial services hack who made the public announcement that he planned to (anonymously) report any colleagues he caught filling out brackets and keeping tabs on their picks during business hours. At the time, we encouraged you all to enter as many pools as were available, making it impossible for him to keep up with the amount of people and their offenses he needed to rat out, and created one to do our part. Is this guy still on the loose? He very well might be but regardless: never forget. To that end, sign up for the Second Annual Dealbreaker NCAA Tournament Challenge today. If you need reason beyond being able to say you won the DBNCAATC, first place will receive dinner for him/herself plus some colleagues and/friends at Peter Luger's, an outing funded by us,* a Greenlight Capital messenger bag, a Pershing Square golf umbrella, a pair of Third Point-branded running sneakers, and an I Heart Dealbreaker button.** The pool will once again be managed by Dealbreaker Commenter and Friend NakedShort, who, along with myself, will answer any questions you might have, provide color if warranted (rip everyone’s brackets to shreds, call out the bottom 5 performers), etc. Sign up here now.*** So it is abundantly clear, if you do not want participants to know your real name, MAKE SURE TO FILL OUT SOMETHING ELSE IN THE NAME FIELDS. For example, if your ID is Godswork, rather than writing Lloyd B, enter first name: Gods, last name: work. To that end, if you don’t want people to see your email address, from the bracket page, click ‘options’ and then ‘hide email.’ If you feel it necessary, create an entirely new email account specifically for this challenge. Finally, don’t use HisHoliness as your ID because Alan Greenspan’s already called dibs. The pool password is: animalliar Dealbreaker NCAA Tournament Challenge [CBS Sports] *Last year we offered Wall Street North favorite Beamers Cafe, but the winner had "already seen all Beamers had to offer," and choose an alternative venue. This year, feel free to think outside the box. **If any other hedge funds, private equity firms, or banks would like to be represented via swag, feel free to get in touch! ***NakedShort says you have until Thursday morning to fill out a bracket but you should just get on this ASAP.

Reader Poll: What Is The Appropriate Way To Close A Letter Informing Your Employer You've Lost It A Couple Billion Dollars?

"Regards"? "Best wishes"? "Very yours truly"? "Sincerely"? "All the best"? "Love"? "Again, really sorry"? "Well I guess I'll take off now"? "It's been a pleasure working with you"? "TTYL"? "Keep in touch"? Kweku Adoboli, UBS's alleged rogue trader, who does sound genuinely sorry for the "shit storm" he brought on the bank, went with "thanks." Via the FT: “Dear Will It is with great stress that I write this mail. First of all the ETF [exchange traded funds] trades that you see on the ledger are not trades that I have done with a counterparty as I have previously described. I used the bookings as a way to suppress the PnL losses that I accrued through off book trades that I made. Those trades were previously profit making, became loss making as the market sold off aggressively through the aggressive sell-off days of July and early August. Initially, I had been short futures through June and those lost money when the first Greek confidence vote went through in mid June. In order to try and make the money back I flipped the trade long through the rally. Although I had a couple of opportunities to unwind the long trade for negligible loss, I did not move quickly enough for the market weakness on the back of the first back macro data and then an escalation eurozone crisis cost me the losses you will see when the ETF bookings are cancelled. The aim had been to try and make the money back before the September expiry date came through but I clearly failed. These are still live trades on the book that will need to be unwound. Namely a short position in DAX futures [which had been rolled to December expiry] and a short position in S&P500 futures that are due to expire on Friday. I have now left the office for the sake of discretion. I will need to come back in to discuss the positions and explain face to face, but for reasons that are obvious, I did not think it wise to stay on the desk this afternoon. I will expect that questions will be asked as to why nobody was aware of these trades. The reality is that I have maintained that these were EFP [exchange for physical] trades to the member of my team, BUC [the accounts department], trade support and John Di Bacco. I take responsibility for my actions and the shit storm that will now ensue. I am deeply sorry to have left this mess for everyone and to have put my bank and my colleagues at risk. Thanks, Kweku.” Transcript Of UBS Trader's 'Bombshell Email' [FT]