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.)

Andrew Cuomo's civil lawsuit vs Madoff feeder Ezra Merkin

A peek into Ruth Madoff's private world -- Memo to Madoff estate trustee: Used Birkin bags have big resale values; Ezra Merkin charged with civil fraud by Cuomo; Mort Zuckerman also is suing Merkin

Gutsy AIG guy outs himself and says: 'Take this $1 buck a year job and shove it, and by the way, that retention bonus? I'm not paying it back and instead donating what's left after taxes to those suffering from the downturn'

Screw Charlie Rangel and the rest of the Congress.  Screw NY AG (and future gubernatorial candidate) Andrew Cuomo and  CT AG Richard Blumenthal who were strong arming the AIG retention payment recipients into returning the money or have their names revealed to the out-for-blood masses. And screw the rest of them:  President Obama, Fed Chief Ben Bernanke and Treasury Secretary Tim Geithner.

Jake DeSantis beat those trying to strong arm / guilt trip him to the punch. He said 'I quit', and isn't returning the $742,006.40 after tax payment he received.  If you haven't read it yet, you must read his resignation letter on the Op-ed page of today's NY Times.   In his forceful letter he notes that he was not part of the small, mostly no longer at the firm group of traders responsible for dragging down AIG.  Instead, he worked for one of the profitable areas, and agreeing to a salary of $1 a year like CEO Ed Liddy, was working hard to wind assets down enduring 10-14 hour days with the promise of a retention payment after 12 months.    He notes that three separate times employees were reassured that they would be getting their retention payments.  And DeSantis expressed his disappointment at Ed Liddy's before Congress 'outrage' about the payments.  DeSantis said that Liddy let down the troops by not going to bat for them.....

Short of batting their eyes and asking the AIG bonus recipients to pretty please give back their contractually obligated payouts, Uncle Sam may be up shit's creek sans paddle; And a shocker: Andrew Cuomo jumps on the bandwagon

Everyone on this side of the pond seems to be outraged (us included) at the $165 million in bonuses that are to be paid out to the very AIG guys who were responsible for the financial crisis in the first place.  But the problem is, the payments are contractual.  And breaking contracts outside of bankruptcy is a no-no and we don't even want to contemplate what would happen if they tried to do it.  But since our society is based on the sanctity of contracts, it wouldn't be pretty. Bank on it.

Charlie Gasparino: Cuomo is focused on Thain in the Merrill Bonus flap; Cuomo and Frank tag teaming; Ken Lewis: We're not a financial mess like Citigroup; Meanwhile at Citi, Pandit cites its best quarter since '07 -- they're PROFITABLE! ($BAC,$C)

Andrew Cuomo wants to chat with seven Merrill execs that got those fat bonuses

You knew this was coming: The Merrill Lynch execs named in yesterday's Wall Street Journal who received $10+ million accelerated bonuses are now in Andrew Cuomo's crosshairs, and he wants to talk to them:

Today it's Ken Lewis' turn to talk to Andrew Cuomo et al in the Merrill Lynch bonus probe

Today is D-day for Bank of America's Ken Lewis -- he's testifying in NY Attorney General Andrew Cuomo's probe into the accelerated $3.6 billion in bonuses paid to Merrill Lynch employees just before it merger.

Andrew Cuomo subpoenas Ken Lewis ($BAC)

Not exactly shocking news: According to the WSJ, Bank of America CEO Ken Lewis was subpoenaed in connection with the Merrll Lynch bonus situation.  

On paying those Merrill bonuses early: Cuomo sends a sure to stir the pot nastygram to Barney Frank just in time for the hearings $BAC

Ken Lewis has some 'splainin to do:  Today's congressional hearings will likely spark even hotter fireworks, with NY Attorney General Andrew Cuomo having sent a letter to House Financial Services Committee Chairman Barney Frank attacking Merrill Lynch / Bank of America for moving up $3.6 billion in bonuses a month early: