- Whitney Says Goldman Sachs Lost ‘Tremendous’ Talent
- Small Businesses Turn to Goldman
- New Link Seen in Galleon Insider-Trading Case
- Geithner: ‘The credit crunch is not over’
- A Hedge-Fund King Comes Under Siege
- Lehman Brothers Creditors File $824 Billion in Claims
- Thain self be true
- Morgan Stanley’s Mack Welcomes Regulation by Fed
- Obama says government won’t try to help run GM, Chrysler
- Chrysler May Drop 145 Dealers on Lack of Financing
- Former Chief of Deutsche Bank Faces Fraud Case
- JPMorgan Buys Rest of Cazenove for 1 Billion Pounds
- Gold Demand Rises 10% on Investment, Jewelry, Gold Council Says
Whitney Says Goldman Sachs Lost ‘Tremendous’ Talent – Bloomberg
Meredith Whitney, founder of Meredith Whitney Advisory Group, said Goldman Sachs Group Inc. has lost some of its top-performing employees in recent years as executives left to start their own hedge funds.
“Goldman’s lost a tremendous amount of talent going to set up their own hedge funds,” Whitney said today in an interview on Bloomberg Radio. “It became a scary prospect of having the government determine what you make.”….
Small Businesses Turn to Goldman – Wall Street Journal
When Jay Richardson heard that Goldman Sachs Group Inc. and Warren Buffett were teaming to funnel millions to small businesses, he started making phone calls to see how he could get his share.
Mr. Richardson, 49 years old, runs Master Model Craft Inc., a 24-employee company in Bristol, Tenn., that makes tools for manufacturers, including conveyor belts and robots.
Sales are down 30% from last year’s $2.3 million clip. That has left him stretched for cash to get the new specialized saw and testing equipment he needs to expand and avoid further layoffs. “Just a little bit of stimulus would help us,” he said…..
New Link Seen in Galleon Insider-Trading Case – Wall Street Journal
A defendant accused of exchanging a case of cash for inside information has ties to Galleon Group’s former No. 2 executive—the first link between a top executive at the hedge fund and smaller-time players cited in a sprawling insider-trading case.
The defendant, a trader who was wiretapped by the government in the high-profile case, was quoted talking with a colleague on Nov. 20, 2007, about how an unnamed person he referred to only as “G” would be “pissed” if he learned they had shut him out of certain inside information, according to a criminal complaint filed on Nov. 5.
“G” is Gary Rosenbach, a 53-year-old former Galleon senior partner who left the hedge fund due to family health reasons earlier this year, according to people familiar with the matter. A lawyer for Mr. Rosenbach, who hasn’t been accused of wrongdoing, declined to comment….
Geithner: ‘The credit crunch is not over’ - CNNMoney.com
One day after Goldman Sachs’ CEO apologized for his bank’s role in the financial meltdown, Treasury Secretary Tim Geithner called on the nation’s financiers to step up and do more to fix the damage they helped cause.
“This credit crunch is not over,” Geithner at a small business financing forum in Washington hosted by the Treasury. “It may feel dramatically better for large companies, but it is not over for small businesses across the country.”…..
A Hedge-Fund King Comes Under Siege – Wall Street Journal
Hedge-fund titan Kenneth Griffin lost $8 billion of his clients’ money last year.
Now, he is trying to persuade investors to trust him with more.
“We showed a level of human fallibility,” he told his staff at a late-September lunch in Manhattan…..
Mr. Griffin is looking for the next big opportunity even though the hangover from the last one is fresh in clients’ minds. He is launching four new funds and expanding in investment banking — hoping to fill the profitable hole left by the collapse of Lehman Brothers…..
Lehman Brothers Creditors File $824 Billion in Claims – Bloomberg
Lehman Brothers Holdings Inc.’s creditors filed $824 billion in bankruptcy claims against the collapsed investment bank, and the total may reach $1 trillion, Chief Executive Officer Bryan Marsal said.
The company will probably need U.S. Bankruptcy Judge James Peck to referee disputes over the actual value of some of the more than 64,000 claims, Marsal, the turnaround expert from Alvarez & Marsal Inc. who took over from Richard Fuld, said today at a hearing in New York.
“Some of the claim estimates are just flat-out silly,” Marsal said, adding that the biggest, most sophisticated financial firms Lehman did business with were the ones taking the hardest line on claims and damages…
Thain self be true – NY Post
John Thain is betting that the losses that Bank of America’s executives have suffered will be his gain — but it doesn’t look like Wall Street’s buying it.
The fallen Merrill Lynch CEO has stepped up his efforts to buff his tarnished image, putting the word out that he’s ready to run a public company and that he won’t back down from a challenge — something many observers say is a not-so-subtle hint that he’s available to be BofA’s next CEO.
However, Thain’s hope that Wall Street has a short memory could be dashed as many sources say the executive, frequently referred to as “I, Robot” because of his staid demeanor, still faces an uphill battle in putting the Merrill-BofA shotgun wedding behind him…..
Morgan Stanley’s Mack Welcomes Regulation by Fed – Bloomberg
John Mack, chief executive officer of top-ranked mergers adviser Morgan Stanley, said he welcomes the increased regulation by the Federal Reserve that came after the firm converted into a bank holding company as the financial crisis wiped out 87 percent of its market value.
“We have probably 15 to 20 Fed regulators in our building 24 hours a day,” Mack said yesterday at the “Covering the Crisis” panel discussion hosted by Bloomberg News and Vanity Fair in New York. “They test our models. They question everything we do. I’ve never been regulated like that before. It’s a different environment. Someone said to me, ‘What do you think of it?’ I love it.”…..
Obama says government won’t try to help run GM, Chrysler – USA Today
The Obama administration signaled it is sticking with its promise to stay at arm’s length from the carmakers in which the government owns stakes.
President Obama, on his Asian trip Wednesday, told Fox News, “We have specifically said that we are not in the business of running a car company. We’re not getting involved in day-to-day management.”….
Chrysler May Drop 145 Dealers on Lack of Financing – Bloomberg
Chrysler Group LLC may have to terminate as many as 145 more U.S. dealers unless the retailers can find lenders to finance their new-vehicle inventory.
GMAC Inc., which replaced Chrysler Financial as preferred lender for the Auburn Hills, Michigan-based automaker’s dealers, has been negotiating with Chrysler retailers, said Sue Mallino, a GMAC spokeswoman.
If dealers can’t get the financing from GMAC, they may lose their franchise agreement unless they can find another lender, said Kathy Graham, a Chrysler spokeswoman……
Former Chief of Deutsche Bank Faces Fraud Case – Wall Street Journal
German prosecutors filed criminal fraud charges against former Deutsche Bank AG Chief Executive Rolf Breuer in a Munich court, alleging that the executive gave false testimony during a high-stakes lawsuit brought against him and the bank by a former client.
The charges, which a court spokeswoman said were filed Wednesday, stem from a years-long legal battle among former German media mogul Leo Kirch, Mr. Breuer and Deutsche Bank…..
JPMorgan Buys Rest of Cazenove for 1 Billion Pounds – Bloomberg
JPMorgan Chase & Co., the second- largest U.S. bank, will buy out its venture with Cazenove Group for 1 billion pounds ($1.7 billion), sealing the takeover of a 190-year-old British brokerage whose clients include the Queen.
JPMorgan will pay 535 pence a share, more than twice the price at which the stock last traded when Cazenove reported earnings in February, the bank said in a statement today. About 1,500 Cazenove employees and former partners will receive the money. Chairman David Mayhew, 69, will remain in his job and will receive more than 19 million pounds from the sale….
Gold Demand Rises 10% on Investment, Jewelry, Gold Council Says – Bloomberg
Gold demand climbed 10 percent in the third quarter from the previous three months after investors bought the metal as a currency hedge and jewelry purchases picked up, the World Gold Council said.
Global consumption increased to 800.3 metric tons as Chinese demand surged to 120.2 tons, the London-based industry group said in a report today. Total demand was 34 percent lower compared with a year earlier, when investors sought refuge from the economic crisis amid lower gold prices…..
Tags: Autos, Bank of America, Bankruptcy, Chrysler, Citadel, Credit Crunch, Fed, Galleon, Gold, Goldman Sachs, Hedge funds, John Thain, JP Morgan, Ken Griffin, Lehman Brothers, Meredith Whitney, Merrill Lynch, Politics, Raj Rajratnam, Revolving Door, Tim Geithner
