- Contrite, Cerberus Looks to Appease Its Investors
- Cerberus Partners Fund Being Restructured
- TARP Watchdog Challenges Treasury On Warrant Repayments
- SEC calls for Calif. IOUs treated as securities
- California IOUs Spurned as Schwarzenegger State Shutdowns Begin
- AIG Seeks Clearance to Release Bonuses
- Citadel Group Sues Ex-Executives for Contract Breach
- UBS Digs in Its Heels on Clients’ Names
- Madoff Won’t Appeal Sentence
- Hedge Funds Stalled in June, Attracted $4 Billion
- Ex-Goldman Programmer Detailed His Code Downloads to FBI Agent
- GM cleared to exit bankruptcy
- Palm: Another Analyst Sees Slowing Pre Sales
- Microsoft Bing Grew 25% per Week in June, Says Hitwise
- London Police Decline To Reopen Tabloid Probe
- Dotcom founders launch new fund
- Burger King franchisees reject $1 double cheeseburger
Contrite, Cerberus Looks to Appease Its Investors – Wall Street Journal
….The firm, best known for its two failed investments in Chrysler LLC and GMAC LLC, said in an apologetic July 3 client letter that it is revamping terms for customers in its main hedge funds, which together hold about $7.7 billion.
“It kills us that we have lost money and been part of the problem for you,” wrote Cerberus boss Stephen Feinberg. “[W]e feel an obligation to you to turn this around,” he said. “But we just don’t know when and how much pain we must take before that happens.”….
Cerberus Partners Fund Being Restructured – NY Times
Cerberus Capital Management, whose daring acquisition of Chrysler proved disastrous, is restructuring one of its investment funds amid a wave of requests from clients who want their money back.
But Cerberus, run by Stephen A. Feinberg, is not allowing investors to pull their cash from the fund just yet. Those who have submitted redemption requests can choose to have their assets moved into a special-purpose vehicle that will be liquidated over time as market conditions improve, Mr. Feinberg said in a letter to clients last Friday. Investors in that new vehicle have been told they will not pay management fees.
TARP Watchdog Challenges Treasury On Warrant Repayments – Wall Street Journal
The U.S. Treasury may not be driving a hard enough bargain with banks over billions of dollars of government-held warrants, a congressional watchdog warned Friday, urging greater transparency in the process.
The five-member Congressional Oversight Panel, in a draft of its July report, said an analysis suggests the current value of the bank warrants held by the Treasury could reach as high as $12.3 billion. But in the 11 instances when the Treasury has allowed a bank to repurchase the government-held warrants, it has been getting only an estimated 66 cents on the dollar. ….
The recipients of billions of dollars in IOUs being issued by California soon may be able to sell them on a regulated market, following action taken Thursday by federal regulators….
California Governor Arnold Schwarzenegger will shutter government offices today and the biggest banks are poised to stop accepting IOUs the state issued amid a political deadlock over a $26 billion budget deficit…..
AIG Seeks Clearance to Release Bonuses – Wall Street Journal
American International Group Inc. is asking the Obama administration’s new compensation czar whether it should pay previously agreed-to retention bonuses, including about $235 million pending for employees at the insurer’s controversial financial products unit, according to people familiar with the matter.
AIG asked Kenneth Feinberg to weigh in on the bonuses after the last round of multimillion dollar payments in March sparked an outpouring of public frustration amid the financial crisis. Before Mr. Feinberg was appointed, AIG had pledged to try to reduce the overall payments for this year’s performance to a few hundred employees at the financial products unit by 30%….
Citadel Investment Group LLC, the $12 billion hedge fund firm founded by Ken Griffin, sued three former executives and the firm they started, Teza Technologies LLC, over claims they violated non-competition agreements.
“This is a case of industrial espionage,” Citadel said in a complaint filed today in Illinois state court in Chicago. The firm seeks a court order barring the individual defendants from conducting any business through Teza or related entities that compete with Citadel, for the duration of the agreements…..
UBS Digs in Its Heels on Clients’ Names - NY Times
When the Swiss bank UBS and federal prosecutors face off in a Florida courtroom on Monday, the focus will be whether UBS must disclose the identities of thousands of its American clients, but much more could be at stake as well.
The dispute, in which the Internal Revenue Service, backed by the Justice Department, is trying to force UBS to hand over the names of 52,000 wealthy American clients suspected of tax evasion, has escalated into a showdown that has frayed relations between Switzerland and the United States, peeled back layers of Swiss banking secrecy and rattled the world’s private banking industry. UBS and the Swiss have intensified their opposition this week, threatening to send more ripples through the global banking system….
Madoff Won’t Appeal Sentence - Wall Street Journal
Convicted Ponzi-scheme operator Bernard Madoff won’t appeal his 150-year prison sentence, his lawyer said Thursday.
Ira Sorkin, Mr. Madoff’s lawyer, said his client doesn’t plan to challenge his sentence…..
Hedge funds had net inflows of $4 billion in June as the index measuring their performance remained little changed after posting its longest stretch of monthly gains since July 2007, according to Eurekahedge Pte.
The industry had net inflows for the second consecutive month, bringing total assets under management to $1.33 trillion, according to a preliminary report by the Singapore-based research firm, based on the 35 percent of funds that reported June performances. The Eurekahedge Hedge Fund Index, tracking more than 2,000 funds, lost 0.02 percent, taking its year-to- date advance to 9.4 percent, the report showed…..
Sergey Aleynikov, the former Goldman Sachs Group Inc. computer programmer arrested last week for stealing software, told an FBI agent he uploaded proprietary code to an encrypted server he had used on “multiple occasions.”
Aleynikov, 39, told the agent around 1 a.m. on July 4 that he had logged into Goldman’s computers through remote access from his home and sent encrypted files to a repository server with the URL identifier svn.xp-dev.com, according to a copy of his FBI statement in court files in Manhattan federal court…..
GM cleared to exit bankruptcy – Financial Times
General Motors is set to emerge as a new company on Friday, completing an unexpectedly swift and smooth journey through bankruptcy protection.
A court order approving the sale of most of the 101-year-old carmaker’s assets to the new entity took effect at midday on Thursday, 39 days after it filed for Chapter 11 protection…..
Palm: Another Analyst Sees Slowing Pre Sales – Barron’s Tech Trader Daily
Pali Research analyst Walter Piecyk writes in a blog post today that sales of the Palm (PALM) Pre “slowed again over the past week compared to the prior week,” with sales still over 30,000 units, versus less than 40,000 in the prior week, and an estimated 50,000 to 60,000 in the week ended June 26.
Piecyk is one of a number of analyst trying to guess at current demand for the Pre; as I have noted repeatedly, the company could eliminate the rampant speculation by providing some hard data. So far, the company has provided no information on sales of the new smart phone….
Microsoft’s Bing search engine owned 5.25 percent of the U.S. online search market in the four weeks ending June 27, growing at an average rate of 25 percent per week, according to research company Hitwise. However, Google and Yahoo remained atop the search engine heap, with 74 percent and 16.2 percent, respectively….
London Police Decline To Reopen Tabloid Probe - Wall Street Journal
London police said they have no plans to reopen an investigation that dealt with allegations that News Corp.’s tabloid newspapers here repeatedly used dubious methods to obtain personal information on celebrities, politicians and other public figures, even as a parliamentary committee said it will examine the allegations.
London’s Metropolitan police indicated it had addressed many of the issues in the complex investigation of a 2006 case. In that case, a News of the World reporter, Clive Goodman, was jailed for paying a private investigator, Glenn Mulcaire, to help intercept voice-mail messages for the staff of Prince Charles and his two sons, princes Harry and William……
Dotcom founders launch new fund – Financial Times
Four of the biggest names in the UK digital media scene are teaming up to launch an investment fund for internet start-ups.
Michael Birch, co-founder of Bebo, the social network acquired by AOL last year for $850m (£520m), is the cornerstone investor. He is joined by: Brent Hoberman, co-founder of Lastminute.com and Mydeco; Peter Dubens, the entrepreneur behind Pipex, 365 Media and now Oakley Capital; and Jonathan Goodwin, who sold LongAcre, the media-focused boutique investment bank, to Jefferies in 2007…..
Burger King franchisees reject $1 double cheeseburger – Chicago Tribune
Burger King Holdings Inc. operators have shot down the parent company’s plan to sell double cheeseburgers for $1 nationwide, but the company is still trying to push through a modified plan.
According to a memo reviewed Thursday by Dow Jones Newswires, Russ Klein, Burger King’s president of global marketing and innovation strategy, said a plan to slash the price of the sandwich to $1 for four months, starting later this summer, didn’t receive the necessary number of votes….