Dreier Victims Revealed

cityfile · 08/21/09 02:19PM

The names of Marc Dreier's victims were released by a judge yesterday. Three hedge funds—Elliot Associates, Fortress Investment Group, and Eric Mindich's Eton Park Management—were at the top of the list of investors who were defrauded by the imprisoned lawyer. But a bunch of fashion/retail companies were swindled, too, including Nike, Adidas, Diesel USA, Tommy Hilfiger, and COOGI Partners, the company that controls Fubu and Heatherette. Let it be said, however, that Hilfiger and Heatherette founder Richie Rich almost certainly had nothing to do with the homeless look Dreier was rocking in the days after he was arrested. Men who commit financial crimes just have a tendency to commit fashion ones, too, that's all. [Crain's]

Wall Street: Thursday Morning

cityfile · 05/28/09 05:55AM

• Famed hedge fund manager Art Samberg has announced plans to shut down his firm, Pequot Capital Management, after an investigation into possible insider trading at the firm was revived. [NYT, WSJ]
• One person sweating bullets about Pequot's collapse: Morgan Stanley CEO John Mack, who was tied to the mess when it first surfaced in '06. [BI]
• Citigroup is negotiating with the SEC to settle claims it misled investors by not disclosing the extent of its troubled portfolio of mortgage assets. [WSJ]
• Top Obama officials are pushing to create a "banking czar" job. [WSJ]
• The government program designed to help banks get rid of the bad loans on their books "is stalling and may soon be put on hold." [WSJ]

Wall Street: Wednesday Morning

cityfile · 05/06/09 05:44AM

• Bank of America chief Ken Lewis won't be in a good mood today, that's for sure. Regulators have informed the bank that it will have to come up with $34 billion in new capital if it expects to weather the downturn. [WSJ, NYT]
• For its part, Citigroup may have to come up with $5-$10 billion. [Reuters]
• Remember all the outrage that followed the disclosure that AIG had paid out more than $100 million in bonuses? It seems the bonus pool was four times larger than previously anticipated. Oh, well. [NYP]
• Companies cut an estimated 491,000 workers in April, which is less than previous months and possibly a sign that the worst is over. [BN]

Obama's GM Ultimatum, More Layoffs at UBS

cityfile · 03/30/09 05:30AM

• Washington is now playing hard ball: The Obama administration has forced out GM CEO Rick Wagoner and now says the company has 30 days to finalize its alliance with Fiat if it expects to get more bailout cash. [NYT, WSJ]
• UBS plans to lay off as many as 8,000 more employees worldwide. [Reuters]
• Working at Goldman Sachs has its perks: The bank spent tens of millions bailing out several senior execs facing a personal liquidity squeeze, including former COO Jon Winkelried and general counsel Gregory Palm. [NYT]
• Bank of America plans to increase some bankers' salaries by as much as 70 percent to offset reduced year-end bonuses. [BN]
• The Blackstone Group turned down a request from regulators to disclose the performance of its buyout and hedge funds; Fortress, however, caved. [BN]
• Timothy Geithner says some financial institutions will still need a lot more government aid in the future. You're stunned by that, we're sure. [BN]

AIG In the Crosshairs—Again

cityfile · 03/16/09 05:33AM

• Is AIG officially the most despised company in America? Following the disclosure over the weekend that execs planned to go ahead with $165 million in bonuses to top execs comes word that a good deal of the billions in bailout money it received went to banks like Goldman Sachs ($12.9 billion), Merrill Lynch ($6.8 billion), and Bank of America ($5.2 billion). [BN, NYT, WSJ]
• Larry Summers: "There are a lot of terrible things that have happened in the last 18 months, but what's happened at AIG is the most outrageous." [BN]
• UBS plans to cut another 5,000 jobs. [Reuters]

Tim Geithner's Big Day

cityfile · 02/10/09 06:21AM

• Everyone on Wall Street is waiting for Tim Geithner to take to the stage at 11am to outline the administration's new bailout plan. Among other things, he'll be announcing a new name for the bailout: TARP (or Troubled Asset Relief Program) will be FSP (or Financial Stability Plan) from now on. [BN, DB, CNN]
• UBS announced a quarterly loss of $6.9 billion and now says it plans to cut another 2,000 more jobs at the bank. Is there anyone left? [NYT, WSJ]
• Linda Chatman Thomsen, who has led the SEC's enforcement division since 2005, has stepped down from the job amid criticism. [NYT, NYP]
• One thing Wall Street has clearly screwed up as of late? Its PR efforts. [TDB]
• Private equity firm Fortress has slashed 11 percent of its staff. [DB]
• Strangely, there are few buyers for the crappy assets AIG is selling. [BN]

The End of Thain, New Layoff Rumors

cityfile · 01/23/09 07:04AM

• More on John Thain's ignominious departure from BofA. [WSJ, BN, NYT]
• Mary Schapiro was approved by the Senate to head the SEC. [DB]
• Citi is remaking its board and is ousting Ken Derr and Franklin Thomas. [FT]
• Some investment bankers are keeping busy: Pfizer is in talks to acquire Wyeth in a deal that could be valued at more than $60 billion. [WSJ, BN]
Wesley Edens' Fortress is returning cash to investors. [WSJ]
• Marc Dreier will need to post a $20 million bond to walk out of prison. [NYT]
• Job cuts in UBS's investment banking division come next month. [AP]
• Rumor has it additional layoffs at Goldman are coming, too. [Dealbreaker]

Bernie Madoff: Not Behind Bars Just Yet!

cityfile · 01/06/09 08:29AM

• A judge has yet to decide whether Bernie Madoff can stay at home or if he'll have to report to prison for violating the terms of his bail by handing over $1 million jewelry to his sons on Christmas Eve. [NYT]
• The trustee liquidating Madoff's firm has found $830 million in assets. [BN]
• Merrill brokerage chief Bob McCann is leaving the firm now that the sale of Merrill to Bank of America is complete. [WSJ]
• Rumor has it Wesley Edens is exploring the possibility of taking his beleaguered hedge fund/private equity shop private. [FT]
• Who will replace Morgan Stanley chief John Mack? The bank's board is now exploring the options in preparation for Mack's retirement in 2010. [WSJ]
Flailing billionaire Ron Perelman is hoping to squeeze more cash out of Morgan Stanley as part of a 10-year-old legal dispute. [NYP]

Dismal Data, Layoffs at Credit Suisse

cityfile · 12/04/08 06:14AM

♦ Layoff announcements, grim unemployment data, and dismal retail sales figures should lead to another nasty trading session on Wall Street. [CNN]
♦ A group of managers and senior execs from Neuberger Berman won the auction to take over Lehman's money management business. [NYT]
♦ Credit Suisse is laying off 5,300 people. [Reuters]
♦ Citigroup's top execs like Vikram Pandit and Bob Rubin say they're willing to forgo annual bonuses. How generous of them! [FT]
♦ Thomas H. Lee may shut down two hedge funds it launched recently. [WSJ]
♦ Poor Steve Schwarzman is "knocking on more doors and pressing more flesh than ever" to get business done these days. [NYP]
♦ Fortress Investment Group is falling apart fast. [NYT]
♦ Carlyle Group LLC is cutting 10 percent of its staff. [WSJ]

More Bad News for Citigroup

cityfile · 11/14/08 06:29AM

♦ Things may be about to get worse at Citigroup: The Times reports that the bank may be forced to lay off another 25 percent of its workforce as it deals with continued losses, a plunging stock price, and a lack of investor confidence. [NYT]
♦ In a show of faith, Citi CEO Vikram Pandit and three deputies bought a total of 1.3 million shares yesterday after the stock fell below $9 for the first time in 12 years. [Bloomberg]
♦ Is the $700 billion bailout working? Not so much: More than a month and nearly $300 billion into it, "many of the nation's financial arteries seem nearly as sclerotic as they were before. Some of them, in fact, appear to be hardening more." [NYT]

Street Talk

cityfile · 08/11/08 05:09AM
  • Carl Icahn isn't having such a hot year. Shares of Icahn Enterprises are down 50 percent this year "as investors have backed away from their initial enthusiasm for the activist investor." [NYP]

Street Talk

cityfile · 08/07/08 05:02AM
  • Lehman Brothers chief Dick Fuld is in discussions with several private-equity and foreign investors about raising even more capital for the struggling bank. [NYP]

Street Talk

cityfile · 07/21/08 04:40AM
  • Yahoo and Carl Icahn have reached a settlement: Icahn and two of his nominees will join the board of the company. [AP]