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Deep Thoughts From Dan Loeb, Who Discusses The Dumping Of His Financial Exposure

Tyler Durden's picture




 

Dan Loeb is now fully out financials on regulatory, among other, concerns. Will John Paulson be the last man standing (and holding an ever-increasing bag), with the conviction that Obama won't end up destroying the US financial system? For a very strong counterargument that Obama will eventually destroy the very core of the US financial system, may we point you to this post, which describes why US pensioners have at most a few more years of hopes that their savings have not been totally wiped out. One of the biggest source of profit for Loeb in 2010? Long ABX 06-1, which he rode from 10.5 to 16.

From Third Point's letter:

As most of you know, I talked about our re?initiated long positions in Bank of America and Citigroup at our annual Investor Presentation on January 20th. However, the next morning, upon seeing on a calendar of the day’s Washington  events that President Obama was scheduled to speak on financial reform at 11:00AM, a mere two days after the Democrats lost Ted Kennedy’s Senate seat to Republican Scott Brown in a stinging defeat, I became concerned that he would take a politically popular populist (and therefore negative) stance on the banks, and so sold our significant positions in those two financials as well as most of our position in Barclays. Although we have traded around these stocks since, at present we have no position in any commercial banks (except for a small residual position in a regional bank amounting to less than 1%). The Administration appears unable, or unwilling, to let free?market capitalism resume. Indeed, it is neither health care nor financial reform which has stressed markets most in 2010, but rather the continued politicizing of the regulatory process and the abandonment of free market capitalist principles that have  undermined investor confidence.

Full letter:

 

h/t Fourth Point

 

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Mon, 06/14/2010 - 16:38 | 413296 trav7777
trav7777's picture

Dumping, bitchez

Mon, 06/14/2010 - 16:38 | 413300 Jean Valjean
Jean Valjean's picture

Isn't this an admission of "pump and dump"?  He disclosed his reinitiated long position on Jan 20 and sold it the morning of Jan 21?

Begs a few questions.  When did he 'reinitiate' his long position and when did he disclose that he closed it out?

This guy should be in jail like everbody else on Wall Street.

Mon, 06/14/2010 - 16:43 | 413314 Commander Cody
Commander Cody's picture

I agree.  Just more pond scum with an agenda.

Mon, 06/14/2010 - 17:38 | 413421 island
island's picture

Bingo.  This guy is self-serving bankster slime.  Completely nauseating.

Mon, 06/14/2010 - 19:02 | 413611 aint no fortuna...
aint no fortunate son's picture

The code words were the great lie known as "free market capitalism"... Kudlow's mantra during the Bush years and look where that got us.

Mon, 06/14/2010 - 16:42 | 413313 DeweyLeon
DeweyLeon's picture

"...the governent hates Wallstreet."

Are you f*cking kidding me?  I can't even tell where one starts and the other ends.

Mon, 06/14/2010 - 16:50 | 413331 Sqworl
Sqworl's picture

+100

Mon, 06/14/2010 - 17:17 | 413376 TheGoodDoctor
TheGoodDoctor's picture

No doubt Dewey! WTF I mean is there anything in it that will actually harm the banks? From what I gather it is pretty much status quo. I mean we can't even get the Fed audited and they get more oversight. We even get raped by the debit card fees!

Mon, 06/14/2010 - 17:34 | 413414 dryam
dryam's picture

bankers + politicians = 69

Tue, 06/15/2010 - 03:55 | 414200 ydderf1950
ydderf1950's picture

  circle jerk

Mon, 06/14/2010 - 17:17 | 413373 jkruffin
jkruffin's picture

Accounts lady at the bank today told me Congress is getting ready to screw Americans badly in this financial reform bill(which we already knew was favoring bankers), but they are about to get crazy fee happy and charge for everything they do.  Just like the credit card reform crap that has solved nothing, and let the banks drop credit lines and close accounts, raise interest rates, for no reasons at all, this new crap they are conjuring already has bankers behind closed doors formulating new schemes to pass their bonus requirement fees on to consumers.  I think we are going to see major bank runs soon that will be huge.  People are not going to stand for being charged just to have an account.  That was one of the things the lady said they were getting ready to do.

Mon, 06/14/2010 - 17:20 | 413381 TheGoodDoctor
TheGoodDoctor's picture

I'll stop electronic banking then and pay everything in check format. That will slow the flow of capital around the country. Fuck them. I'll go cash the rest of the way for other purchases. If they want to play games then we will too.

Mon, 06/14/2010 - 17:39 | 413426 papaswamp
papaswamp's picture

I like your thinking sir!

Mon, 06/14/2010 - 17:41 | 413436 Dr. No
Dr. No's picture

This is why I have my tax accountant submit the 1040 via U.S. mail, paper form.

Mon, 06/14/2010 - 17:45 | 413448 Argos
Argos's picture

My accountant says next year it's all electronic for the professionals.  You'll have to do your own taxes to file paper.

Mon, 06/14/2010 - 19:14 | 413651 Monkey Craig
Monkey Craig's picture

Please transact and pay taxes as much with  paper (cash and occasionally by check) as possible.

Also, if you have the ability to barter (trade a haircut for a BJ), do that. The more transactions you do electronically, the more TPTB control you. They can tax and track whatever you do....and whatever this government can do to subvert your rights, you better believe this government will do that.

Tue, 06/15/2010 - 02:44 | 414159 No More Bubbles
No More Bubbles's picture

There won't be a need to file taxes in 2011.........

Mon, 06/14/2010 - 17:43 | 413442 island
island's picture

This guy talking about "'free market' Capitalism" after voicing a big "hurray" for financial bailouts illustrates he is just another piece of bankster scum, and only interested in pillaging what remains in the hands of the non-banksters.  If you see him, hang 'im. 

Mon, 06/14/2010 - 22:44 | 413967 Artful Dodger
Artful Dodger's picture

This can't be said loudly enough. Anyone on Wall Street who has the balls to now refer to "free market capitalism" should provide a footnote explaining exactly how he did NOT benefit in any way from government intervention in the economic system of the last few years. And since he can't do that, he should shut the fuck up. "Free market capitalism" is a meaningless trope at this stage in the game, and anyone uttering it, bemoaning "where it went" now that the part where its absence worked in his favor has passed, is, a priori, an intellectual stooge -- or more likely, a guy talking about "principles" only when they're convenient to his interests. That's the very definition of unprincipled. Cunt.

Tue, 06/15/2010 - 00:50 | 414103 calltoaccount
calltoaccount's picture

+666

Mon, 06/14/2010 - 17:55 | 413478 ghostfaceinvestah
ghostfaceinvestah's picture

This guy is a dirtball, including his filth on this site really cheapens the site.

Mon, 06/14/2010 - 18:01 | 413494 AccreditedEYE
AccreditedEYE's picture

Will John Paulson be the last man standing (and holding an ever-increasing bag), with the conviction that Obama won't end up destroying the US financial system?

No. His bag is not as big, but Bruce Berkowitz will be as well. (Curse of the fund mgr of the year)

Mon, 06/14/2010 - 18:25 | 413549 Dr. Sandi
Dr. Sandi's picture

It's not the size of the bag that counts. It's how well it's stuffed!

 

Mon, 06/14/2010 - 18:29 | 413559 perchprism
perchprism's picture

"However, the next morning, upon seeing on a calendar of the day’s Washington  events that President Obama was scheduled to speak on financial reform at 11:00AM, a mere two days after the Democrats lost Ted Kennedy’s Senate seat to Republican Scott Brown in a stinging defeat, I became concerned that he would take a politically popular populist (and therefore negative) stance on the banks, and so sold our significant positions in those two financials as well as most of our position in Barclays"...

 

Excuse me, but this is pure horse shit.

Mon, 06/14/2010 - 18:42 | 413583 Muir
Muir's picture

+1

 

Hell, +1 for for everyone who thought this guy was a scum spouting BS

Mon, 06/14/2010 - 20:16 | 413767 Clycntct
Clycntct's picture

Short and to the point. Me likes."this is pure horse shit"

Mon, 06/14/2010 - 18:30 | 413562 buzzsaw99
buzzsaw99's picture

Bailouts are "free market" but regulation isn't?

Mon, 06/14/2010 - 19:21 | 413666 calltoaccount
calltoaccount's picture

Scum is too kind a word.  Loeb is the lowest of the low, a prime example of arrogant sociopath kleptocrat sleaze who interpret "free market" capitalism to mean they are free to lie, cheat and steal with impunity. Here's what he said in an earlier incarnation as internet naked short and distort terrorist Mr. Pink: 

 

To: +Jeff         Sunday, Oct 4 1998 5:48AM ET

      From: +Mr. Pink                             

Compassion is for Buddhist monks...When Mr. Pink sees His opponents stumble, He kicks them in the shins...If a wound opens, He rushes to pour in salt and acid, if available...If they feel nauseated, He will kick them in the stomache....If they are frightened, He will say boo! If they are sad, He will make them cry...If they are long a stock that is a Turd and they have lost so much money that they are nearly broke, He will laugh at their margin calls....        Mr. Pink 

Loeb and co-conspiratores Asensio, Schechter, Elgindy, "Wexler" etal made their fortunes by destroying companies and people's lives.  They're only still on the outside because the system is institutionally corrupt through and through-- and protects the predators to the detriment of everyone else.

 

Mon, 06/14/2010 - 18:41 | 413579 Muir
Muir's picture

I find myself agreeing with the 20+ posters above.

And I read the entire letter before the responses.

 

"The foundation for this recovery was laid by the governments robust response and the FEDs relaxed monetary policy ...."

 

Scum.

Mon, 06/14/2010 - 19:38 | 413700 glenlloyd
glenlloyd's picture

Robust response must mean tax payer funded and relaxed monetary policy must equate to cheating savers.

Any foundation that's built on tax payer funding and cheating people who save is a fraud.

When you have a central authority that decides what the value of money is you don't have a free market. In my book that's price fixing.

Tue, 06/15/2010 - 02:46 | 414160 No More Bubbles
No More Bubbles's picture

Karma is a bitch!

As most of you are aware, we suffered the loss of Adam Sackett, our Co?Head of Trading, in
early March.  His sudden death was a shock to all of us.

Do NOT follow this link or you will be banned from the site!