Wall Street Folly

It's Official: We've moved! Our new home is www.wallstreetfolly.com

Please join us over at our new Wall Street Folly site.  We're still working out some kinks, but it's up and running! (Note, if for some reason you're not directed to that site, keep trying.  It gonna take a bit for the redirection of our wallstreetfolly.com url to be propogated through the system.)

GM CDS settlement auction will happen in around a month; Ex-Deutsche Bank trader who lost over $1B last year said to be starting up hedge fund with $160M; The dangers of niche ETFs

• GM CDS settlemt time!
• Boaz Weinstein is back
• Are nich ETFs dangerous?

Housekeeping: We're moving!

A heads up:  Soon we'll be moving off of the Typepad hosting site.  Our address will be http://www.wallstreetfolly.com (which currently works on Typepad), but it'll be ultimately point to our new site.  We'll be keeping this Typepad site up and running for the forseeable future, but in the next day or so, new Typepad posts will end and will continue on our new site.

Stay tuned!

So if the $GM and Chrysler restructurings don't work, we know who they're gonna blame

Future scape goat?: The New York Times focused on Brian Deese, a 31 year old who interrupted his Yale law school studies to work for Obama and who ultimately found himself on his auto task force.  They say he's "emerged as one of the most influential voices" behind Obama's restructuring game plan.  With a build up like that, we know who they're gonna be point the finger at if it fails.....

Per CNBC: Changes to the Dow - GM, Citi out, Cisco and Travelers in ($GM,$C,$CSCO,$TRV)

Not that the Dow is really all that relevant anymore anyway...

WSF Headline Roundup-6/01/09 - Anticlimactic: $GM files Chapter 11; Judge Gonzalez ok's Chrysler / Fiat deal paving way for ch11 exit; Gas hits $2.50/gal; Saudi billionaire assets frozen; Pixar's 'Up' rules

• It's official: GM files for bankruptcy protection
• US Judge Ruling Paves Way For Marchionne As Chrylser CEO
• U.S. Auto Market Likely Shrank 35% in May on Chrysler, Economy
• Geithner to Reassure China U.S. Will Control Deficits
• Ugh! Gas hits $2.50
• Temasek Buys Olam Stake, Shifts Focus to Commodities
• Saudi Billionaire With HSBC Stake Has Accounts Frozen
• Pixar’s ‘Up’ Dominates Box Office

Auto headline roundup: $GM said to plan chapter 11 filing for 8am Monday

• The Obama Motor Co.
• 'New GM' Products Face Triple Market Challenge
• What's GM worth?
• GM Filing Pits UAW Against Investors
• GM’s Bankruptcy Plan Wins Support From Majority of Bondholders
• Germany Picks Magna to Buy Opel; 11,000 Jobs May Go
• Auto Suppliers Brace for Blow of GM Bankruptcy
• Chrysler Judge Plans to Rule June 1 on Asset Sale to Fiat Group
• Opponents of Chrysler Sale Fight to the End in Court

Double standard?: How much did the Obama's NYC date night cost U.S. taxpayers? ($BAC, $C,$GS,$JPM)

If the headline read that a TARP funded bank CEO hopped on the corporate Gulfstream for a date night jaunt with his wife, at company --- er, taxpayer --  expense, the press (and Congress) would be going hog wild.  So what if the CEO of the USA does the same thing?  According to the NY Post, the Obama's hopped on a Gulfstream and spent an intimate date night in NYC, at an estimated cost of over $70k compliments of the American taxpayers.  It's lovely that the president is fullfilling one of his campaign promises to Michelle, and he did economize by using a Gulfstream and not the way more expensive Air Force One, but they couldn't have planned a similar outing at a time when the President was scheduled to be in NYC on official business?  The CEO of the U.S. in't exactly setting a great example.  Per NY Post:

Right On!: Ed Altman says that we the taxpayers are the big losers in the $GM bailout

No surprise to us (and we agree), he says the union comes out the big winner.  And he worries about Chapter 22 despite GM emerging with a much lighter debt load:

Pimco's Bill Gross take Harvard, Yale endowment models to task; Mortgage delinquency rates at record high; Birinyi on the market; Temasek: half of 5 year gains down the tubes in 8 months

Tiffany conference call summary ($TIF)

Briefing.com summarized the Tiffany conference call....

Op ed: Ralph Nader thinks Obama's $GM plan is a "raw deal": He asks why a "secretive task force" is determining the company's fate instead of congress

Ralph Nader came out swinging against Obama's GM fix in a WSJ op ed piece....

WSF Headline Roundup-5/29/09 - Fed's Fisher says Treasuries won't lose AAA; 10yr nt worst 2 mos since '03; Oil gains; GM Ch11 Monday, suppliers facing big losses; Ackman failed Target fight cost both sides $21M; Dinallo resigns; AOL jettisoned (finally)

• Financial Overhaul Raises Questions
• Fed's Fisher: US Treasurys Won't Lose Triple-A Rating
• U.S. 10-Year Notes Head for Steepest Two-Month Loss Since 2003
• Oil Heads for Biggest Monthly Gain Since 1999 on OPEC Output
• GM plans for bankruptcy Monday
• GM Suppliers Face New Threat as Bankruptcy Looms for Automaker
• GM prepares for biggest bankruptcy in US history
• Chrysler CEO says Fiat deal to close Friday
• Chrysler's Rejected Dealers Sold Over Half Their Stock
• NY insurance chief Dinallo to resign
• Ackman's Target quest falls flat
• Bewkes sets AOL free
• Dell Tops Profit Estimates as Cost Cuts Overcome Sales Slump
• Toy’s 'R' Us deal means no more FAO Schwarz in Macy’s

Mark Cuban goes on the offensive and sues the SEC for allegedly withholding information

Is the SEC withholding documents in their investigation of Mark Cuban?  He thinks they are and has taken matters into his own hands -- by suing the SEC:

Liquidating Pequot Capital's 13F Chart study ($GLD,$CMGB,$RE,$MCD,$ONXX,$WMT,$QCOM)

So what equities did Art Samberg's Pequot Capital report in their 13F as of 3/31/09?  Here's the chart study for their 13F filing dated 3/31/09. Given that they're now in liquidation mode, we thought it was particularly relevant:

Notes from the always anticipated Ira Sohn Conference

Zerohedge has gotten its hands on notes from the Ira Sohn Conference created by Mike O'Rourke at BTIG...

Greenlight Capital's David Einhorn is shorting Moodys ($MCO)

Greenlight Capital's David Einhorn told Ira Sohn Conference attendees on Wednesday that he's shorting Moody's...

WSF Headline Roundup-5/28/09 - Part of PPIP program to be put on hold?; Pequot capital shutting down; $GM issues early paychecks, its OPEL talks stall; Chrysler back in bankruptcy ct looking for Fiat deal ok; Visteon chapter 11

• Plan to Buy Banks' Bad Loans Founders
• Samberg to Shut Pequot Capital Amid SEC Insider-Trading Probe
• GM issues paychecks early amid bankruptcy fears
• Opel talks stall on GM financing demand
• Chrysler Asks Bankruptcy Judge to Approve Fiat Sale
• Auto Adviser to Obama Had Ties to Industry Fund
• Auto Supplier Visteon Files for Chapter 11 in U.S.
• U.S. Home Sales Remain Sluggish as Supply Soars
• OPEC Set to Maintain Oil Quotas in Bet Demand Returns
• Yahoo CEO:Open To Search Deal For 'Boatloads Of Money'
• Toys ‘R’ Us Acquires FAO Schwarz, Flagship Fifth Avenue Store
• Tucker Carlson Plans a Huffington Post Rival

Scary: While Uncle Sam spends like a drunken sailor, tax revenues are plunging -- down $138 billion in April (34%!)

That means that the U.S. deficit will grow ever higher.  And we all know who's gonna foot the bill for the binging....

Like Morgan Stanley and UBS, Citigroup and B of A expected to raise bases ($MS,$C,$BAC); Though criticized, UBS staying the course with market level pay; The return of structured products; Nomura's rating cut; NY pension slashes FOF stakes

WSF Headline Roundup-5/27/09 - Economists see U.S. recession ending soon, but weaker recovery; Roubini says no bottom yet; $GM debt exchange fails, next stop Ch 11, Secured lenders OK; 75% of modified mtgs to fail?; Home prices still in decl decline

• U.S. Recession May End Next Quarter, Business Economists Say
• Roubini says bottom of U.S. recession not here yet
• Pension funds lose Chrysler fight in district court
• GM bond deadline passes, bankruptcy seen near
• GM bondholders reject offer
• US likely taking majority ownership of GM
• GM Cuts Stock Due UAW by 55%, Boosting Equity Reserve
• Secured Bank Lenders to GM to Get Full Recovery
• Up To 75% Of Modified Mortgages To Re-Default -Fitch
• Home Prices Continued Their Decline in March
• What Is Facebook Actually Worth?
• Staples Profit Falls as Companies Spend Less on Office Supplies

Ten things you maybe didn't know about Ben Bernanke

US News and World Report has put together a list of 10 thinks you didn't know about Fed chief Ben Bernanke. (We knew some of them). Here are a few from the list:

Video: Bill Ackman makes his case for Target board seats ($TGT)

WSF Headline Roundup-5/26/09 - $BAC revised 64K home loans; $JPM $29B accounting windfall; $GM will be lawyer FEE-ding frenzy; 3 year college degrees?; Ackman will keep Target stake 5 yrs if he gets seated; Twitter growth challenges

• Bank of America Revises 64,000 Loans After Pact With States
• JPMorgan $29 Billion WaMu Windfall Turned Bad Loans Into Income
• GM creditors watch Chrysler lawsuit
• Bankruptcy for G.M. Would Tax the Experts
• Chrysler dealer vows to fight to the finish
• Obama Says GM to Revive; Collapse Might Have Led to Depression
• ‘Orderly Insolvency’ May Be Opel’s Best Option, Guttenberg Says
• Apple Raised at Morgan Stanley on IPhone Outlook
• Colleges Consider 3-Year Degrees To Save Undergrads Time, Money
• Ackman Commits to Keeping Target Stake if Elected to Board
• Twitter Trips on Its Rapid Growth