Archive - Jan 14, 2009 - Story

With the public's attention having been exclusively focused on Bernie, his sons Marc and Andrew, and Bernie's "three-man accountant company" lead by David Friehling, a question that is intriguing more and more people is who/what/where are Frank DiPascali, the 51 year old CFO of Bernard L Madoff, and Charles Wiener, Bernie's 50 year old nephew, listed as Director of Administration, who were the only other tenants on floor 17 of 885 Third Avenue.

"Team, I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family,but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

According to TrimTabs, record $148 Billion in Hedge Fund outflows in December.

Deleveraging may have a day or two to go.

Diplomacy 101:

Maria Bartiromo: "Should people be shorting Citi at $4.53?"
Meredith Whitney: "I would diversify out of financials here."

There is a glimmer of hope: "I would be buyer of American Express.... at $15"

January 14, 2009

From: Vikram Pandit

Dear Citi Colleagues,

I want to make sure you know that we’ve moved up our Q4 2008 earnings announcement to this coming Friday, January 16. Since we are ready to release 4th quarter earnings and talk about 2009 and the future, we saw no need to wait.

District Judge Lawrence McKenna upheld the bail ruling... Guess the choppers on Lex and 64th will keep on bugging Madoff neighbor Matt Lauer indefinitely. We once again push forward the idea for converting the penthouse at 133 East 64th to a museum of Unmitigated Greed. $25 entrance fee... Start recouping those losses already!

In a first for 2009, a $200 million loan BWIC was distributed earlier this week, indicating the deleveraging of hedge funds' credit books is far from over.

In a memo to its employees, the struggling newspaper company announced that all workers, including CEO Craig Dubow, will take one week unpaid leave this quarter to help the publisher save money.

Message from Steve Schwarzman

Issued: January 13, 2009

I am both saddened and outraged to have to tell you that the SEC has brought a civil complaint today against Ramesh Chakrapani in our Corporate Advisory Services Group, charging him with passing on inside information three years ago about a pending transaction on which he worked as a 30 year old vice president.

...in a Kia Sorrento???? oh the indignity... in what will probably be his last trip in a non Department of Corrections vehicle, Bernie will have to indulge in all the comfort of this Korean creem of the crop...

On the other hand it could have been this.

************ UPDATE ***********

In seeming vindication of Kudlow's theory that all shall be well, the TED spread is ignoring the slew of bankruptcies, the bottom falling out of the market, Zimbabwe's trillion % inflation rate, Vikram's impending pink slip birthday present, and tightening to 0.98%, its tightest spread in 5 months.

Just filed Chapter 11 - Gottschalk's and Goody's, both in Delaware...

Many more to come

Nortel already decided to pull the plug and set Lazard's plan for weekly trips to the slumdens of Toronto in motion.

Next on Deck are the following (di)stressed companies with coupon payments due today (this is not an exhaustive list):

AbitibiBowater - 15.5% Notes due 7/15/2015 and 10.6% Notes due 1/15/2011
Allis-Chalmers - 9.0% Notes due 1/15/2014
Ames True Temper - FRNs due 1/15/2012
Atlantic Broadband - 9.375% Notes due 1/15/2014
Charter Communications - 11.125% Notes due 1/15/2011 and 13.5% Notes due 1/15/2011

Does anyone even watch daytime soaps anymore? CNBC reporting... More to come

********** UPDATE ***********

Bloomberg reports Debbie Ryan, girlfriend of Sam, is pleading not guilty in helping him escape. She entered her plea before Magistrate Judge Lisa Margaret Smith at federal court in White Plains. Turns out she had been arrested January 9th. She is barred from any contact with Sam and is out on $75,000 bail. She faces a 10 year prison sentence if convicted.