- Lehman Channeled Risks Through ‘Alter Ego’ Firm
- Dimon’s Syracuse Commencement Speech Fought in Student Petition
- Morgan Stanley CEO calls for partnering with regulators and legislators
- Galleon Insider Case Widens
- AIG ’strongly objects’ to pay tsar’s restrictions on executive pay-outs
- Donald Trump Beats Carl Icahn in Bankruptcy Battle for Casinos
- Consumer Reports calls Lexus GX460 unsafe
- Twitter to Start Rolling Out Advertising
Lehman Channeled Risks Through ‘Alter Ego’ Firm – NYT
In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books.
The firm, called Hudson Castle, played a crucial, behind-the-scenes role at Lehman, according to an internal Lehman document and interviews with former employees. The relationship raises new questions about the extent to which Lehman obscured its financial condition before it plunged into bankruptcy…..
Dimon’s Syracuse Commencement Speech Fought in Student Petition – Bloomberg
Syracuse University students are petitioning the college to remove JPMorgan Chase & Co. Chairman and Chief Executive Officer Jamie Dimon as this year’s commencement ceremony speaker.
The students are “against using the 2010 commencement to restore the public image of the banking industry,” according to the online petition posted by the student group, Take Back 2010 Syracuse University Commencement. More than 800 students and alumni of the university in Syracuse, New York, signed…..
Morgan Stanley CEO calls for partnering with regulators and legislators – Washington Post
Morgan Stanley chief executive James Gorman acknowledged in a letter to shareholders Monday that the financial sector benefited from extraordinary government support during the 2008 market crisis and urged the industry to work with Washington on reshaping banking regulation.
Gorman expressed support for a “strong systemic regulator” to prevent excessive risk-taking and called on the government to work with its counterparts overseas “to coordinate standards and enforcement and prevent ‘regulatory arbitrage,’ through which some market players seek competitive advantage by exploiting regulatory differences.”….
Galleon Insider Case Widens – WSJ
Federal prosecutors are looking into alleged improper trading involving more than a dozen companies not previously disclosed in an insider-trading probe that has ensnared several hedge-fund executives, including Galleon Group founder Raj Rajaratnam.
In a March 22 letter, prosecutors from the U.S. Attorney’s office in Manhattan disclosed they believe Mr. Rajaratnam and other co-conspirators shared material nonpublic information or made improper trades in the securities of Goldman Sachs Group, AT&T Inc., Cisco Systems Inc., and 18 other companies not named publicly….
AIG ’strongly objects’ to pay tsar’s restrictions on executive pay-outs – FT
Over the past few months, AIG, which has received $180bn-plus in government aid, clashed several times with Mr Feinberg over his decisions to restrict salaries and bonuses and tie pay to the long-term health of the troubled company.
In yesterday’s filing, AIG said it “strongly objected” to Mr Feinberg’s decision in November to reduce the salaries of David Herzog, chief financial officer, from $675,000 to $350,000, and Kris Moor, the head of the property and casualty unit, from $1m to $450,000……
Donald Trump Beats Carl Icahn in Bankruptcy Battle for Casinos – Bloomberg
Donald J. Trump and his partners won control of the bankrupt casino company Trump Entertainment Resorts Inc., when a judge ruled that their bid was better for creditors than a competing offer by investor Carl Icahn.
U.S. Bankruptcy Judge Judith H. Wizmur yesterday sided with a group of bondholders who are owed $1.2 billion. Their proposal would reduce Trump Entertainment’s debt by $1.4 billion and give the celebrity billionaire as much as 10 percent of the three- casino company he once ran…..
Twitter to Start Rolling Out Advertising – WSJ
Twitter Inc. will start rolling out advertising to users Tuesday, the four-year-old company’s first significant attempt to turn its microblogging service into a profitable business.
The company plans to announce a new service called Promoted Tweets, a Twitter spokesman said. The ads will appear at the top of results for searches users conduct on Twitter, a model similar to Google Inc.’s wildly successful search-advertising system. Over time, they may appear in the stream of posts users see when they log into the site…..
Consumer Reports calls Lexus GX460 unsafe – AP
Consumer Reports has given the Lexus GX460 a rare “Don’t Buy” warning, saying a problem that occurred during routine handling tests could lead the SUV to roll over in real-world driving.
In the latest blow to Toyota’s reputation, the magazine said that during a test of the vehicle’s performance during unusual turns, the rear of the vehicle slid until it was nearly sideways before the electronic stability control system kicked in…..
Tags: Accounting gimmicks, AIG, Autos, Carl Icahn, Casinos, Compensation, Donald Trump, Galleon, Insider Trading, James Gorman, Jamie Dimon, JP Morgan, Lehman Brothers, Morgan Stanley, Pay czar, Raj Rajaratnam, Toyota, Twitter
