All we have to say about this guy is: Pffffffft
Tags: Banking Culture, Betting
Archive for January, 2008
Just so you know: Andrew Tobias is not related to drowned hedge fund manager Seth Tobias
On January - 31 - 2008
But the author of best-selling "The Only Investment Guide You’ll Ever Need" notes a coincidental connection:
"My dad, Seth Tobias, died in 1983. He
was a wonderful, wonderful man, and to me there was only one Seth Tobias,"
Andrew explained. "It was more than a little unsettling to read ‘his’ name
24 years later – especially under the circumstances."
Not My Brother – Page Six New York Post
Tags: Hedge funds
John Thain on the bond insurer rescue plan and on Merrill’s future in structured finance / cdo’s
On January - 31 - 2008
Merrill Lynch CEO John Thain expressed doubt that the industry-wide bail-out plan for the credit insurers would ever get off the ground but that infusions into individual companies would be more likely.
In other Merrill news, the firm is cutting back on structured finance and CDO’s…..
Tags: Bond Insurers, CDO, John Thain, Merrill Lynch
Uncategorized
Lazard’s Bruce Wasserstein banked large with restricted stock worth $102 million
On January - 31 - 2008
Lazard CEO Bruce Wasserstein didn’t do too bad last year, compensation wise…..
Wasserstein, 60, extended his contract for
five years and received restricted stock worth $102.1 million at today’s closing
price. He was also granted a $36.2 million stock bonus for 2007, double the
prior year’s award, the New York-based company said today in a statement. Profit
advanced to $122.6 million, or $1.04 a share, from $85.8 million, or 78 cents, a
year earlier.
Tags: Bonuses, Bruce Wasserstein, Compensation, Lazard
WSF Headline Roundup – 1/31/08 – MBIA takes more hits; Mortgage applications at 4 year high; CME’s NYMEX bid might mean war; Blackstone sued; SocGen backs Bouton; Starbucks revamp
On January - 31 - 2008
- Derivatives Write-Downs Hit MBIA
- Mortgage applications near 4-year high
- CME’s Nymex bid set to trigger battles
- Blackstone sued over Alliance bid
- Société Générale Backs Bouton
- Starbucks plans revamp amid falling US sales
Societe Generale: Risk Magazine’s Equity Derivatives House of the Year
On January - 30 - 2008
Timing is everything. The January 2008 issue of "Risk" chose Societe Generale, former home of the now famous rogue trader Jerome Kerviel – who helped to lose the bank over $7 billion — as its "Equity Derivatives House of the Year". Oops….
Tags: Jerome Kerviel, Rogue Traders
Post fed rate cut: Futures jump than dump
On January - 30 - 2008
It didn’t help that late in the day S&P was cutting / considering cutting the ratings of $534 billion of sub-prime debt….
Tags: Charts, Credit Crunch, Fed, Ratings
Amazon dumps on disappointing guidance
On January - 30 - 2008
Is Sailfish Capital blowing up? Reports say they’re being forced to liquidate positions….
On January - 30 - 2008
Last week there were reports that Sailfish Capital Partners, run by former SAC Capital bond trader Mark Fishman was down over 12% for the first 51 weeks of 2007 and facing major redemptions. Now there are reports that they’re being forced to liquidate positions and that all hell is breaking loose. According to FinAlternatives:
Sailfish Capital Partners is reportedly in
the midst of “blowing up” and is liquidating its entire portfolio as quickly
as it can, according to sources with knowledge of the situation.According to the sources, the two partners
of the Stamford, Conn.-based hedge fund—Mark Fishman and Sal Naro—got into a
shouting match yesterday and ordered their traders to liquidate all of the
fund’s positions.“They told everyone to start selling
their positions, to liquidate,” said one source. “It’s basically blowing
up. Everyone is sending out their resumes. They want out. It’s basically
mayhem.”A spokesman for Sailfish dismissed the
notion that there was a fight, describing the event as a “discussion.” He
added that traders are always loud, and that “it was not heated. It wasn’t
anymore colorful than they usually have.”
Traders At Hedge Fund Sailfish Ordered To Liquidate Positions – FinAlternatives
Tags: Hedge funds, SAC Capital
Fed Decision: Half a point cut
On January - 30 - 2008
Fifteen year Goldman veteran and Asia banking co-head leaves for his family’s business
On January - 30 - 2008
Taking a step back, Richard Ong, Goldman Sachs co-head of Asia investment banking is leaving the firm after 15 years to return to Malaysia to help run his family business…
Ong, 42, will step down in March and become
an adviser to the New York-based company. Goldman, in an internal memo seen by
Bloomberg News, didn’t announce a replacement for Ong, who has held the position
for 15 months.“I’m going to spend more time in Malaysia
with my family and focusing on my family business,” Beijing-based Ong said in
an interview. “I’m not thinking much beyond that right now.” The banker said
his family has plantation, palm oil and property businesses in Malaysia’s
southern Johor state.Ong, formerly co-president of Goldman’s
Singapore office, is the first Asia investment banking partner to leave the firm
since Rajiv Ghatalia quit in May 2005. Goldman’s ranking in arranging share
sales in Asia outside-Japan fell to third last year from second in 2006,
trailing Zurich-based UBS AG and Wall Street rival Morgan Stanley, according to
data compiled by Bloomberg.
Goldman’s Ong to Step Down as Asia Banking Co-Head – Bloomberg
Tags: Goldman Sachs, Revolving Door
Do we detect a pattern? Jerome Kerviel’s big brother quit BNP Paribas last year over trading concerns
On January - 30 - 2008
According to the Daily Telegraph, Jerome Kerviel’s elder brother, also a banker, quit his job with BNP Paribas last year. The reason? Concerns over his trading, what else? We wonder if Mr. Kerviel has any other brothers (or sisters, for that matter) working in banks. If yes, those banks might want to make sure any employed Kerviel siblings take a few vacation days, just in case…..
Olivier Kerviel, 37, worked as a portfolio
manager at a subsidiary of BNP Paribas and left after "irregularities"
were discovered, Europe 1 radio reported.The affair happened while Jérôme Kerviel, 31, was already making huge gambles
at Société Générale, France’s second largest bank, which suffered losses of
£3.7 billion following his bad bets on stock markets.But there was no connection made between the activities of the two brothers and
Olivier Kerviel’s actions did not cause any losses to his bank.Olivier Kerviel is believed to be sheltering his younger brother after he was
bailed yesterday but there was no answer at his Paris flat.
Tags: Jerome Kerviel, Rogue Traders
Jerome Kerviel: From rogue trader to folk hero?
On January - 30 - 2008
French trendsetters, particularly young
women, are hailing rogue trader Jerome Kerviel as their new hero in thousands of
blog posts for outsmarting the capitalist system – and also for being cute in
that Tom Cruise sort of way.Not only are fans selling $18 "Jerome
Kerviel’s Girlfriend" T-shirts, they’re flooding blogs with praises for the
31-year-old Société Générale trader tied to a record $7.1 billion trading
loss over bad bets that SocGen apparently bungled in catching.
Tags: Jerome Kerviel, Rogue Traders
Sub-prime fallout: FBI probing 14 companies for possible accounting fraud and insider trading
On January - 30 - 2008
The sub-prime meltdown has attracted the attention of the FBI — they’re investigating 14 firms for possible accounting fraud and insider trading…..
Bill Carter, an FBI spokesman, said the
agency had been working “very closely” with the SEC, with some of the latest
investigations moving “in parallel”. He declined to name the companies
involved.The number of mortgage fraud cases opened
by the FBI jumped to 1,210 in fiscal 2007 from 436 in fiscal 2003, the agency
said.“We’ve been raising this issue since
2004,” Mr Carter said. “We view mortgage fraud as a significant and growing
crime problem and an area of concern. Combating this is a priority given the
housing market’s impact on the wider economy.”
Tags: FBI
- Societe Generale Board Faces Mounting Pressure to Drop Bouton
- UBS Reports Record Loss After $14 Billion Writedown
- BNP Paribas Profit Falls 42% on Credit Market Slump
- Is ICE in play now that NYMEX is in merger talks?
- Bayou’s former CFO sentenced to 20 years for his part in scheme to bilk
investors out of millions - Yahoo Says It Faces ‘Head Winds’
- Is the Clear Channel deal falling apart?
- IAC Blasts Liberty’s Bid To Seize Board Control
Rudy Giuliani finishes a disappointing 3rd in the Florida primary and is set to drop out of the race
On January - 29 - 2008
All dressed up, and now no place to go: Rudy Giuliani placed all of his eggs in one basket in Florida and finished only a dismal third. Having mostly run out of money, it sounds like he’ll be throwing his support to the Florida winner, John McCain.
Tags: Politics, Rudy Giuliani
There she is…Miss America….on Happy Hour
On January - 29 - 2008
The newly crowned Miss America, Kirsten Haglund, made an appearance on Fox Business’ Happy Hour. The 19 year old cutie, still not able to drink (legally, that is), was interviewed away from the usual bar perches. She talks about her causes — the Children’s Miracle Network, and teen aged anorexia, something she knows about first hand. And she graces us with a song…..
Tags: Eye Candy, Fox Business Network
Yahoo tanks after hours on sucky earnings outlook
On January - 29 - 2008
Yahoo’s much anticipated after earnings were met with a resounding thud after they fell short with the company issuing weak guidance. In addition, the company plans to slash 1000 jobs. The stock, which closed at $20.81, tanked to $18.72 in after hours trading….
Tags: Charts
Junk Bonds: Expecting the worst bust since 2001?
On January - 29 - 2008
That’s what the spreads are implying according to Bloomberg. There are now 147 issuers with bonds trading at distressed levels vs around 60 back in November.
What’s a bust for some is a potential bonanza for others.
Junk bonds are off to their worst start
since 1990, falling 1.8 percent and triggering $17 billion in losses this month,
according to index data compiled by New York-based Merrill Lynch & Co.
Yields relative to Treasuries are rising at the fastest pace in at least 11
years as prices drop.The pain may only get worse.
Speculative-grade borrowers made up the majority of U.S. corporate debtors for
the first time last year, according to Standard & Poor’s. The default rate
will soar to more than 8 percent this year, the highest since Enron Corp.’s
collapse rippled through the market in 2002, estimates Zurich-based UBS AG.
Yields show retailers, homebuilders and mortgage companies are among companies
at the greatest risk as banks rein in lending.
Tags: bonds, Distressed
It’s official — Merrill Lynch’s Fakahany is out; so is another senior exec
On January - 29 - 2008
Merrill Lynch co-president Ahmass Fakahany (on the right in the picture) is officially out. So is another senior Merrill Lynch executive, Lang Gibson (at left, in the picture), Director of CDO Research.
Mr Gibson was director of research for
collateralised debt obligations (CDOs), the complex pools of bonds and other
mortgage-backed securities that have accounted for the bulk of the industry’s
sub-prime losses.He was central to the group’s move into
CDOs as Merrill Lynch went from being a relatively small player in the market in
2000 to the biggest underwriter of CDOs between 2004 and mid-2007, when the
market began its meltdown. Mr Gibson was not thought to have lined up another
job. Merrill Lynch declined to comment on the position of Mr Gibson.
Two more pay price for Merrill’s sub-prime woes - The TImes of London
Tags: Merrill Lynch, Revolving Door
- Baucus Stimulus Plan May Spur Conflict
- CME in $11bn move for Nymex
- CME-Nymex deal pressures remaining exchange targets
- US bond insurer rescue takes shape
- Alliance Data Takeover May Collapse; Shares Fal
- New home sales plummet 26% in 2007
- VMWare’s Profit, Sales Surge But Shares Fall in Late Trading
- Roche’s Avastin Cleared For Wider Use in the EU
- Liberty Media Moves to Take IAC From Diller
Happy Hour’s Cody Willard interviews a Penthouse centerfold: “I don’t do pornos”
On January - 28 - 2008
"From Main Street to modeling – The BIZ of SEX": Cody Willard interviews a rather skanky looking Penthouse cover girl / centerfold / bimbo who’s trying to make it in the mainstream acting business. Cody’s smoothest line: "What’s your plan beyond releasing a sex tape on the internet?" For the record, she says "I don’t do pornos."
Tags: Actors, Fox Business Network, Porn
More stock, less cash: Citigroup is the latest firm to alter its bonus payout plan
On January - 28 - 2008
We hear more grumbling: Citigroup is the latest firm to reduce cash compensation in favor of more restricted stock for its most senior bankers. Up to 20% of the bonus package will instead become restricted stock with 2 year vesting.
The US bank has followed its rivals by
reducing the cash element of its bonuses and increasing stock payouts to its
highest-paid bankers, who get most of the bonus pool. The banks are trying to
ensure the limited cash pool is distributed most heavily to lower paid
employees, and asking higher paid bankers to take additional restricted stock.The cash bonus may be cut by 50% in the case of the highest-paid Citigroup
executives, according to a source familiar with the situation.
Citigroup revamps cash bonus packages - Financial News Online
Tags: Bonuses, Citigroup, Compensation
Public service announcement: You may want to think twice about taking on a charging cell phone
On January - 28 - 2008
A word of warning to all of you cell phoneaholics: According to Gizmodo, a guy in Ghana who answered his phone which was charging from an electrical phone jack was almost fried.
Tags: Cell Phones
Uncategorized
CNBC sources say that Ahmass Fakahany, Merrill Lynch co-president is out; Also, the firm is looking to further cut costs which will likely lead to layoffs
On January - 28 - 2008
When Stan O’Neal exited the building, there was tremendous speculation that Merrill Lynch co-president Ahmass Fakahany would soon follow. Now it seems like it’s a done deal….
Merrill officials had no immediate comment,
but Fakahany is widely regarded as one of the key architects of Merrill’s
strategy of ramping up balance sheet risk by holding risky bonds packed with
subprime mortgages that led to its writedown of more than $14 billion.Meanwhile, CNBC has learned that the firm
is now looking to cut costs. Merrill’s Brokerage Department Chief Robert McCann
is conducting a massive review of the brokerage-department’s costs that will
likely lead to layoffs in the department, according to one person with knowledge
of the matter. The layoffs, however, aren’t expected to touch at least initially
the firm’s 16,610 brokers, but will focus on other personnel, this person said.
Merrill Plans Job Cuts; Co-President to Resign: Sources – CNBC.com
Tags: Credit Crunch, John Thain, Merrill Lynch, Revolving Door
