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Credit Suisse CEO Brady Dougan not so optimistic that the credit crunch is close to over

While the chorus of Wall Street CEOs proclaiming that the credit crunch is nearing an end, Credit Suisse CEO Brady Dougan isn't quite so optimistic.  He thinks it's gonna last longer...

"I am extremely optimistic about the opportunities ahead of Credit Suisse, even as I remain very cautious about the short-term environment," Dougan said.

"Whenever there seems to be light at the end of the tunnel, it has turned out to be another train coming at us," he said. "My inclination is to remain cautious."....

``I think that the markets are overly optimistic right now,'' Dougan said in a speech in Geneva today. ``There continue to be challenges and that's going to play out over the next six to eight weeks. There continue to be issues on the liquidity side.''

Continue reading "Credit Suisse CEO Brady Dougan not so optimistic that the credit crunch is close to over" »

Morgan Stanley started cutting jobs in the UK

MorganStanleyPinkSlipParty-001

Up to 350 jobs will likely be gone...

The US investment bank began cutting jobs on Wednesday, with the process expected to take some weeks as Morgan Stanley continues to restructure. Between 150 and 200 employees have already lost their jobs.

News that Morgan Stanley would cut about 5pc of its workforce, or 1,500 globally, surfaced earlier this month but most of the sackings were expected to come in the US.

The speed and scale of the cuts in London have taken some Morgan Stanley insiders by surprise.

Morgan Stanley aims to axe 350 London jobs - Daily Telegraph

WSF Headline Roundup - 5/16/08 - Icahn's YHOO proxy fight gets big fund backing; Deal to move £2bn of Boots' loans; Blackstone focusing on distressed; KKR focusing on infrastructure; TD Ameritrade Moglia no longer CEO; Rio Tinto ore boycott

  • Paulson Hedge Fund to Back Icahn
  • Deal to sell £2bn of Boots' debt
  • Blackstone focuses on distressed property
  • Blackstone Has $66.5 Million Loss as LBO Fees Drop
  • KKR expands into infrastructure
  • TD Ameritrade's Moglia to Cede CEO Role
  • Rio Tinto Faces Iron-Ore Boycott

Continue reading "WSF Headline Roundup - 5/16/08 - Icahn's YHOO proxy fight gets big fund backing; Deal to move £2bn of Boots' loans; Blackstone focusing on distressed; KKR focusing on infrastructure; TD Ameritrade Moglia no longer CEO; Rio Tinto ore boycott" »

The big flip off: Yahoo responds to Carl's letter

Yahoo just issued a completely unconvincing yet totally predictable response to Carl Icahn's proxy fight letter, essentially flipping him off.  It said: 

Unfortunately, your letter reflects a significant misunderstanding of the facts about the Microsoft proposal and the diligence with which our board evaluated and responded to that proposal. A   fair-minded review of the factual record leads to one conclusion: that Yahoo!’s ten-member board, comprised of nine independent directors along   with Yahoo! CEO Jerry Yang, remains the best and most qualified group to   maximize value for all Yahoo! stockholders.

Conversely, we do not believe it is in   the best interests of Yahoo! stockholders to allow you and your hand-picked   nominees to take control of Yahoo! for the express purpose of trying to force   a sale of Yahoo! to a formerly interested buyer who has publicly stated that   they have moved on. Please may I remind you that there is currently no   acquisition offer on the table from that company or any other party. That   said, we have been crystal clear in our stance that we have been and remain   willing to consider any proposal from any party including Microsoft if it   offers our stockholders full and certain value.

A fair-minded review leads to only one conclusion?  That the 10 morons on the board who unanimously rejected Microsoft's premium offer and drove them away are the most qualified to run the company?  Jerry Yang and company are clearly drinking that funny Kool-Aid again....

The entire letter is below....

Continue reading "The big flip off: Yahoo responds to Carl's letter" »

Could Arthur Sulzberger's marital split impact the NY Times?

We presume that he must have a prenup, but who knows?  In any case, we're just wondering if the split (a separation at this point) might spill into the board room if it goes the divorce route or if it will be handled quietly in a civil manner.  You know how messy these little marital tiffs can get, especially when there are big bucks and blocks of stock involved, not to mention, a very long marriage (described below by the NY Observer as "emotionally cool")

ARTHUR Sulzberger Jr. is separated for real. The chairman/CEO of the New York Times Co. was spotted yesterday morning moving into the Phillips Club, a residential hotel on West 66th, where 2-bedroom apartments start at $17,000 per month. Sulzberger - who announced his separation from his wife of 33 years, Gail Gregg, on Saturday - was spotted unloading about 10 suitcases from a large SUV. Gregg remains in the marital abode on West 64th, which was transferred into her name in March, when a Times spokeswoman lamely explained to us it was for "estate-planning purposes."

"estate-planning purposes".  Pretty funny.

Solitary Man - Page Six NY Post

The New York Observer had more on the separation a couple of days ago....

Continue reading "Could Arthur Sulzberger's marital split impact the NY Times?" »

Video: Ken Moelis - Keynote speaker at the Deal's Private Equity Symposium

"My mother called me up at the end of the equity bubble, and... you know I have been at the heart and seen some of the problems, and my mother said, 'Hey how come you never go to jail?' ,and I said 'Gee, Thanks Mom'...The 'everybody's doing it' excuse doesn't hold when people are wondering how this happened, and they want to take action...Look at your practices."

Another clip is below

Continue reading "Video: Ken Moelis - Keynote speaker at the Deal's Private Equity Symposium" »

Looks like Eliot Spitzer won't be running for political office any time soon....

so he's offered to make pro rata refunds to contributors of $2.9 million to his Spitzer 2010 campaign fund.  If you gave him money, you have until June 15 to send in an official request for refunds.

Bonus watch 2008: A new report says they could get nailed

Bonuses2008-001

Duh. 

Reuters tells us that a new report out of compensation consultants Johnson Associates indicates that bonuses this year could be pretty slim, contracting from 10 - 25%, and possibly 35% in the executive suite. (We sadly note the obvious -- that if you're unemployed they also could be nonexistent.)

The credit crisis will mostly affect bonuses for workers directly involved in trading and selling assets like subprime mortgage bonds, the report said.

Senior executives will likely face the biggest bonus cuts and may even find their pay linked to risk exposure, the report said. Banks may also implement what the report referred to as "clawbacks" -- managers to pay back compensation money if certain results are not met, the report said.

Continue reading "Bonus watch 2008: A new report says they could get nailed" »

WSF Headline Roundup - 5/15/08 - Clear Channel loan mkt impact; Volcker warns on Fed interventions; Barclays writedown; Mizuho recovery; GE appliances unit on block; Toyota Prius sales milestone; Steel prices!; Ditching land-line phones?

  • Clear Channel deal puts banks on defensive
  • Volcker Says Fed Interventions Risk Political Battles
  • Barclays writes down a further £1bn
  • Mizuho Predicts Profit Recovery After Subprime Losses
  • GE could sell appliances unit
  • Toyota Prius sales hit 1 million worldwide
  • Fast-Rising Steel Prices Set Back Big Projects
  • Consumers ditching land-line phones
  • Edwards Backs Obama as Clinton Continues Fight

Continue reading "WSF Headline Roundup - 5/15/08 - Clear Channel loan mkt impact; Volcker warns on Fed interventions; Barclays writedown; Mizuho recovery; GE appliances unit on block; Toyota Prius sales milestone; Steel prices!; Ditching land-line phones?" »

Carl Icahn's going after the Yahoo board...all ten of 'em

Gooooooooooo Carl!.  Really, those jokers on the Yahoo board all deserve to get the hook.  Carl Icahn has apparently decided to go the proxy fight route and will attempt to lay waste to the entire ten member Yahoo board, as opposed to the easier path of trying to pick off a smaller number of directors.  We don't know if he'll get all of them or any, for that matter --- his goal really isn't taking over the board, but jump starting talks between Yahoo and Microsoft to get a deal done.  Carl bought 50 million Yahoo shares after Microsoft pulled its Yahoo bid.  With the shareholder sentiment such as it is....in general really pissed off -- we would expect that the show of shareholder support will be overwhelmingly in Carl's favor.

We love watching a good fight.  And this one should be classic.

Continue reading "Carl Icahn's going after the Yahoo board...all ten of 'em" »

Henry Blodget's got a new blog: Clusterstock

Seems like it's been around for many weeks, but Henry Blodget is editing a new blog called Clusterstock:

We're yet another site focused on the financial markets. We offer proprietary and third-party analysis, financial models, news, commentary, and aggregation. We're edited by Henry Blodget (yes that Henry Blodget). Henry is a former top-ranked Wall Street stock analyst who was later keelhauled by Eliot Spitzer (yes, that Eliot Spitzer).

We're in beta now, which means we still suck. We're working hard, though, and we hope to get better fast....

One of today's posts:  a Bear Stearns first year banker tells them that he's  not chilling out at the gym....

"Wall Street Warriors" needs new warriors

Calling all publicity hungry hedge funders / traders:  Wall Street Warriors, the series shown on HDTV network MOJO-HD wants you. (That's the show that chronicled publicity ho & bar mitzvah money hedge fund wannabe / flame out Timmy Sykes, among others). It seems that now that we're in a credit crunch no one wants to be filmed -- they're having trouble rounding up warm bodies to fill up the screen for next season's.  They had an open casting call on Tuesday, but we bet if you really, really want to be on the show, the producers would still be happy to talk to you....

Continue reading ""Wall Street Warriors" needs new warriors" »

Bear Stearns chief vs Fed chief: Barbara Walters seems to have never met an Alan she didn't like

According to Page Six, Barbara Walters, who recently published her kiss and tell memoirs, may be stinging from some of the criticisms over her affair with then-married Senator Edward Brooke.  But more interestingly is what a playa she was, also carrying on simultaneously with Bear Stearns CEO Alan "Ace" Greenberg, and then-future Fed chief Alan Greenpan. And her housekeeper couldn't tell the two Alans apart:

"Audition" also reveals that after breaking up with Brooke, Walters continued seeing Greenberg while also dating Alan Greenspan, the future Federal Reserve chairman.

Her Latina housekeeper couldn't keep the two Alans straight. "When they gave me the message, I could only ask, which one talked louder?" Walters wrote. "Alan Greenberg . . . talked in a normal tone of voice. Alan Greenspan was very soft-spoken. He almost whispered. And that's how I would know whether it was Greenspan or Greenberg."

Barbara Starts To Feel Heat - Page Six NY Post

JP Morgan's $6 billion Bear Stearns reserve proving to be too low so far

It's more like $9 billion so far, but could end up plus or minus another billion....

JPMorgan Chase is to take a charge of about $9bn – half as much again as its estimate – to clean up Bear Stearns’ balance sheet and pay for redundancies and litigation arising from its cut-price takeover of the stricken investment bank.

Jamie Dimon, JPMorgan’s chairman and chief executive, told a banking conference organised by UBS that the higher costs were driven by the losses suffered by Bear this year and the larger-than-expected amount of bad assets on its books.

Mr Dimon said he remained optimistic on the long-term benefits of the $1.5bn takeover of Bear but described it as “mission not accomplished”, arguing saying that the success of the deal would have to be judged in future years.

On Monday, Mr Dimon said the $9bn charge, which includes Bear’s most recent losses that were not contained in the original estimate, could end up being up to $1bn higher or lower.

JPMorgan faces $9bn charge for Bear clean-up - Financial Times

WSF Headline Roundup - 5/14/08 - Icahn vs YHOO?; US foreclosures rise; Ex-UBS exec charged with tax fraud; Senate nixes oil reserve; Clear Channel deal; B of A expects higher home equity losses; AIG; Credit Agricole rts offer; IAC makes peace with Liberty

  • Yahoo Rises on Reports That Icahn Is Considering Board Fight
  • Hopes rise over Icahn’s Yahoo campaign
  • U.S. Foreclosures Rise 65 Percent as Vacated Homes Add to Glut
  • Ex-UBS Employee Charged over US Tax Fraud
  • Senate rejects Bush policy of boosting oil reserve
  • Bernanke Says Fed to Boost Loans to Banks as Needed
  • Clear Channel parties have deal in principle
  • Bank of America Expects Higher Losses on Home Equity
  • Financial Rebels With a Cause: AIG
  • Crédit Agricole forced into €5.9bn rights issue
  • IAC and Liberty in agreement over IAC spin-offs
  • Tribune Co. rejects latest offer for Wrigley
  • Clinton's Wide Margin in West Virginia Won't Cut Obama's Lead

Continue reading "WSF Headline Roundup - 5/14/08 - Icahn vs YHOO?; US foreclosures rise; Ex-UBS exec charged with tax fraud; Senate nixes oil reserve; Clear Channel deal; B of A expects higher home equity losses; AIG; Credit Agricole rts offer; IAC makes peace with Liberty" »

Blackstone is starting up an Asian Event Driven fund business

StephenSchwarzmanFortuneCookie-001

With private equity deals few and far between, Blackstone is delving deeper into the event driven fund business. And they're looking to further expand their interests in Asia with their most recently announced move.  Schwarzman & Co is starting up a unit that will invest in Asian event drivn opportunities indluding those related to mergers and bankruptcies.  SAC Capital alum Aaron Nieman will run it:

Blackstone Altius Advisors will be led by Senior Managing Director and Chief Investment Officer Aaron Nieman, New York- based Blackstone said in a statement issued through BusinessWire today. The fund will be based in Hong Kong with employees in Tokyo, Mumbai and New York.

``As Blackstone continues to aggressively seek opportunities within Asia, Aaron and his team will provide additional investment capability that will bolster our presence in the region,'' Antony Leung, Blackstone's Greater China chairman, said in the statement.

Nieman joined Blackstone from SAC Capital Management, where he was a managing director in the Canvas Capital Management unit overseeing merger arbitrage and event-driven investments in Asia- Pacific, the Blackstone statement said.

Blackstone to Start Asian Event-Driven Fund Business - Blackstone

Was Bear Stearns' CEO's party invitation lost in the mail?

BenBernankeLastSupper-001

Or was Alan Schwartz just plain dissed at a luncheon hosted by Ben Bernanke and attended by most every other Wall Street BSD?  Or maybe he was invited and was just too busy trying to put out fires on the home front.  In any case, Bernanke hosted one hellofa gathering (click on picture to enlarge)....

Federal Reserve Chairman Ben S. Bernanke lunched on March 11 with a Who's Who of Wall Street leaders, including JPMorgan Chase & Co.'s Jamie Dimon, three days before the central bank rescued Bear Stearns Cos. from bankruptcy.

Other guests included Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein, Lehman Brothers Holdings Inc. CEO Richard Fuld, Morgan Stanley President James Gorman, Citigroup Inc.'s Robert Rubin, Blackstone Group CEO Stephen Schwarzman and Merrill Lynch & Co. CEO John Thain. Alan Schwartz, the CEO of Bear Stearns, was not listed among the attendees.

Continue reading "Was Bear Stearns' CEO's party invitation lost in the mail?" »

Busy bee: Meredith Whitney dissed Citigroup's recovery plan yesterday and last night she lowered Goldman's, Lehman's, Morgan Stanley's and Merrill's earnings estimates

That Meredith Whitney is a busy busy bee.  Yesterday, Oppenheimer's financial stock soothsayer rained on Vikram Pandit's plan to put Citi back on the road to recovery where she said that the plan sounded all too much like one Chuck Prince had floated before.  She was interviewed by Bloomberg TV;  you can find the video here -- look for the link on the right that says "Whitney Says Pandit Faces `Impossible Feat' at Citigroup" under 'related video and graphics'....

Then last night Meredith continued to be busy, putting out a 20 page tome entitled: "What Goes Up, Must Come Down: FASB 159 Write-Ups Come Back To Bite 2Q08 Earnings".  She lowered her estimates for Goldman Sachs, Lehman Brothers, Morgan Stanley, and Merrill Lynch....

Continue reading "Busy bee: Meredith Whitney dissed Citigroup's recovery plan yesterday and last night she lowered Goldman's, Lehman's, Morgan Stanley's and Merrill's earnings estimates" »

Jamie Dimon proclaims the credit crunch is nearly over....

But the U.S. recession is "just beginning" and that there's a one out of three chance that this one could be as bad as the early 1980's.  He also commented on how the Bear Stearns merger is going.  The firm lost  "several billion dollars since March 17", the announcement date of the merger....

At an investor conference Monday, Mr. Dimon referred to the merger with Bear Stearns -- a highly-watched deal set to close around June 1 -- as "mission: not accomplished." Mr. Dimon said the entire merger process will last through 2009, but provided a number of indications that the New York bank is well on its way.

Although the deal remains some weeks from closing, Mr. Dimon said J.P. Morgan has already found new job positions for 40% of Bear Stearns staffers, even as Wall Street endures heavy rounds of layoffs. Mr. Dimon reiterated previous comments that the remaining Bear Stearns employees will know their fates by the time the merger closes.

Dimon: Credit Crunch Nearly Over - Wall Street Journal

WSF Headline Roundup - 5/13/08 - HPQ acquiring EDS; WMT earnings; Lehman Q2 banking backlog down 15%; NMX seat holders balking over CME deal?; ResCap bondholders thinking war; Northern Rock overstatements?; Clear Channel deal near?; more

  • HP to Acquire EDS for $13.9 Billion
  • Wal-Mart Profit Increases on Discounts for     Groceries
  • Investment Banking Backlog Down About 15% In 2Q: Lehman CFO
  • Nymex Seat Holders Ready to Block Sale to CME, Glass Says
  • ResCap Bondholders May Oppose Debt Exchange Offer
  • Northern Rock overstated the quality of its mortgage book
  • Clear Channel Surges on Possible Buyout Settlement
  • Airbus Extends Delays on A380 Airliner     Deliveries
  • Beazer Restates Results for 9 Years

Continue reading "WSF Headline Roundup - 5/13/08 - HPQ acquiring EDS; WMT earnings; Lehman Q2 banking backlog down 15%; NMX seat holders balking over CME deal?; ResCap bondholders thinking war; Northern Rock overstatements?; Clear Channel deal near?; more" »

Recent returns highlight risks of "Concentrated" hedge funds; CDS as weopons of mass speculation; Sentiment changing regarding SPACs?; Hedge funds warming up to stuck bank debt

  • Lampert, Wood Show Risk of `Concentrated' Hedge Funds
  • Credit Default Swaps: Weopons of Mass Speculation
  • Shell game
  • Hedge funds start to buy bank debt

Continue reading "Recent returns highlight risks of "Concentrated" hedge funds; CDS as weopons of mass speculation; Sentiment changing regarding SPACs?; Hedge funds warming up to stuck bank debt" »

Who was behind the ultimately aborted 'Bloomberg for President' movement?

Turns out that Stanley Druckenmiller, who runs hedge fund Duquesne Capital, was one of those behind the move.  Page Six tells us that he wrote a $250K check to the Draft Bloomberg Joint Fundraising Committee on January 14 when Mayor Bloomberg was noodling over becoming a third party candidate.
Mike's Boosters
- Page Six NY Post

Video: FBN takes a look at Wii Fit

This thing looks kinda fun....

After Peloton Partners' demise the WSJ provides an autopsy

The WSJ delves into the rise and rapid flame-out of Peloton Partners....

When hedge-fund chief Ron Beller's investments in U.S. mortgages turned against him, he got a rude awakening to Wall Street's unsentimental ways. Bankers who had vied for his business reeled in credit lines and seized the fund's assets. In a matter of days, Peloton Partners LLP, once one of the world's best-performing hedge-fund operators, lost some $17 billion.

In its sheer speed, Peloton's demise offers an illustration of the delicate relationships upon which the financial industry is built, and the breakneck pace at which they have been unraveling.

Continue reading "After Peloton Partners' demise the WSJ provides an autopsy" »