- Fund Boss Made $7 Billion in the Panic
- Goldman Sachs threatens Spanish move
- Citigroup ‘Lottery Ticket’ Warrants May Pay U.S. Lowest Return
- TCW Loses Mutual-Fund Head Redell to Gundlach’s Startup Firm
- Cosmetic Surgery Tax Out, Tanning Tax In For Sen Health Bill
- Twitter Is Said to Be Profitable After Making Search Agreements
- Citadel Broadcasting files bankruptcy protection
Fund Boss Made $7 Billion in the Panic – Wall Street Journal
Mr. Tepper’s hedge-fund firm has racked up about $7 billion of profit so far this year—with Mr. Tepper on track to earn more than $2.5 billion for himself, according to people familiar with the matter. That is among the largest one-year takes in recent years.
Behind the wins: a bet worth billions of dollars that America would avoid a repeat of the Great Depression.
Through February and March, Mr. Tepper scooped up beaten-down bank shares as many investors were running for the exits. Day after day, Mr. Tepper bought Bank of America Corp. shares, then trading below $3, and Citigroup Inc. preferred shares, when that stock was under $1. One of his investors insisted more carnage loomed. Friends who shared his bullish beliefs were wary of aping his moves amid speculation that the government was about to nationalize the big banks…..
Goldman Sachs threatens Spanish move – The Independent
Goldman Sachs has threatened the UK Treasury with plans to move up to 20 per cent of its London-based staff to Spain in a standoff over tax and bonuses.
It’s believed that the Wall Street investment bank, which paid more than £2bn to the Exchequer’s ailing coffers in corporation tax alone last year, has fired a warning shot across the Government’s bows in response to the tax measures unveiled in the pre-Budget report earlier this month…..
Citigroup ‘Lottery Ticket’ Warrants May Pay U.S. Lowest Return – Bloomberg
The Treasury Department, which delayed plans to sell Citigroup shares after a Dec. 16 offering priced them below what the agency paid, may get no more than $179.3 million for the warrants, based on estimates from Nomura Securities International Inc. Goldman Sachs Group Inc. paid $1.1 billion to buy back warrants, and JPMorgan Chase & Co.’s netted $936.1 million. Both banks received less federal money than Citigroup.
The value of the 465 million Citigroup warrants may depend on whether buyers think the stock can quintuple within nine years. Almost half the warrants, which convey the right to exchange them for common stock at preset prices, will be worth converting only if Citigroup gains 425 percent by October 2018 and attains a market value of more than half a trillion dollars, a level no U.S. bank has ever achieved…..
TCW Loses Mutual-Fund Head Redell to Gundlach’s Startup Firm – Bloomberg
TCW Group Inc. lost another top executive as mutual-fund unit head Ronald Redell defected to DoubleLine LLC, the asset-management firm formed this month by Jeffrey Gundlach, TCW’s former chief investment officer.
Redell, 39, former president and chief executive officer of TCW Funds Inc., jumped to DoubleLine on Dec. 18, the Los Angeles-based firm said in a statement. Redell will help DoubleLine start its mutual-fund business…..
Cosmetic Surgery Tax Out, Tanning Tax In For Sen Health Bill – Dow Jones via CNNMoney
U.S. Senate Democrats boosted payroll taxes on wealthy Americans and proposed a new 10% tax on indoor tanning to help pay for late changes to a broad health-care reform bill.
But Senate leaders dropped from the bill a 5% tax on all elective cosmetic surgeries that had been in an earlier version. Allergan Inc. (AGN), along with Medicis Pharmaceutical Corp. (MRX), and other firms lobbied against that tax, arguing that it was unfair to working women…..
Twitter Is Said to Be Profitable After Making Search Agreements – Bloomberg
Twitter Inc. will make about $25 million from Internet-search deals with Google Inc. and Microsoft Corp. announced in October, enough to push the site into profitability, people familiar with the matter said.
An agreement that made Twitter’s messages searchable on Google’s site will generate about $15 million, said the people, who asked to remain anonymous because the terms aren’t public. A similar deal with Microsoft’s Bing search engine will earn Twitter about $10 million…..
Citadel Broadcasting files bankruptcy protection – Reuters
Citadel Broadcasting Corp, the third-largest U.S. radio broadcaster, said on Sunday it filed for the bankruptcy protection, as the radio industry continues to be hard hit by depressed advertising revenue.
Citadel, whose network consists of 165 FM stations and 58 AM stations, filed for Chapter 11 bankruptcy protection under a prenegotiated deal with more than 60 percent of its senior lenders.
The deal would convert its $2.1 billion secured credit facility into a new term loan of $762.5 million, meaning about $1.4 billion of debt would be extinguished, it said….
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