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America's "Largest Minority-Owned And Operated Investment Bank" Shuts Down

Tyler Durden's picture




 

Solyndra, Ener1, and now Kaufman Bros - The current economy may not be very good at creating jobs, even minority-focused ones, but its track record in inverse job creation is rapidly becoming second to none. Bloomberg reports that "Kaufman Bros. LP, the minority-owned investment bank that helped unwind U.S. stakes in bailed-out financial companies, ceased operations as of yesterday, according to a notice posted on its website. Chief Executive Officer Benny Lorenzo told employees that New York-based Kaufman was closing immediately in a meeting yesterday after trading closed, according to two people with knowledge of the matter, who declined to be identified because they weren’t authorized to speak publicly. Neither Lorenzo nor Chief Financial Officer Gerard Durkin returned messages left on their office and mobile phones yesterday and today." More amusing is the following description: "The company, which also has offices in San Francisco, said it was sought out by institutional investors, hedge funds and government agencies to help meet diversity goals." No comment. The closure notice can be found on the company's website. And so another bank bites the dust. Many more coming.

More:

Kaufman was founded in 1995 and billed itself as “the country’s largest minority-owned and operated investment banking and advisory firm” focused on technology, media, telecommunications, green technology and health care. The firm said in June that it helped advisory clients raise more than $50 billion since 1999.

 

The company, which also has offices in San Francisco, said it was sought out by institutional investors, hedge funds and government agencies to help meet diversity goals. Kaufman’s website said the firm participated in public offerings of Citigroup Inc. and American International Group Inc. as the U.S. Treasury Department disposed of stakes accumulated when it bailed out the firms during the financial crisis.

 

Lorenzo was born in the Dominican Republic and holds degrees from Cornell University and Harvard Business School, according to a company statement. He acquired a majority stake in March 2009 and became chairman and CEO in June of that year, according to the firm. Co-founder Craig Kaufman ceded those titles and became a managing director with co-founder Robert Kaufman, the firm said. Craig Kaufman didn’t respond to a message left at his office.

And here is why bank earnings in Q1 are going to be the worst yet:

 

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Tue, 01/31/2012 - 13:37 | 2113287 Laddie
Laddie's picture

Steve Sailer has written extensively on the "Minority Mortgage Meltdown" which is clearly the most underreported factor in the collapse of the economy, all thanks to .gov

If one is non-white then one is looked upon with great favor by the governments, fed, state, local.

This video of Robert Reich and Charles Rangel discussing Stimulus Jobs really torqued me, but it wasn't on Brian Williams or the Today show, I would have thought maybe Stephanapolus or Matt Lauer would have discussed this or Gregory on Meet the Press, but shockingly NO, nothing.

http://www.youtube.com/watch?v=nT1TkLgfinE

 

 

 

Tue, 01/31/2012 - 14:04 | 2113377 Rearranging Dec...
Rearranging Deckchairs's picture

 I agree that the "ownership society" that Clinton and G.W. pushed was a totally flawed and misguided policy and that yes government does play favorites with the few educated minority candidates and that is wrong for all sorts of reasons.

But there is also ample evidence that during the housing boom mortgage lenders (and some of the biggest players) were specfically targeting minorities with rip off loans that they didn't need. I have a black friend who is very succesful in fortune 500 america who was pushed into a no documentation loan. Fortunately for her she was savy and smart enough to turn that down and insist on a traditional 30 year , income documented loan.

http://www.nytimes.com/2011/12/22/business/us-settlement-reported-on-cou...'

 

 

Tue, 01/31/2012 - 15:19 | 2113643 blunderdog
blunderdog's picture

Our economy would collapse if the wealthy weren't permitted to take money from rubes.

Tue, 01/31/2012 - 13:41 | 2113306 MFL8240
MFL8240's picture

ANYONE SERIOUS ABOUT ANOTHER 4 YEARS OF THIS CLOWN BETTER WAKE UP AND QUIT THE KOOL AID.

Tue, 01/31/2012 - 13:52 | 2113323 NuYawkFrankie
NuYawkFrankie's picture

And in other Breaking News:

America - Largest Minority-Owned (1%) Country - Shuts Down!

 

Tue, 01/31/2012 - 14:04 | 2113372 NotApplicable
NotApplicable's picture

Warren Buffett last seen applying black-face.

Tue, 01/31/2012 - 14:19 | 2113393 NuYawkFrankie
NuYawkFrankie's picture

More likely wiping it off - now that the Kaufman "job" has been done!

Tue, 01/31/2012 - 14:13 | 2113414 AC_Doctor
AC_Doctor's picture

Ohhhhh noessss.  No more Bank of the Brother's :(

Tue, 01/31/2012 - 14:58 | 2113553 Tortuga
Tortuga's picture

These faux bitchez are pikers, the real diversity theft per Reuters linked by JS mineset : "Citing unnamed sources, Der Sonntag said the purchase price for the (Swiss)bank's good assets was somewhere between 2.5 and 3 percent of the 21 billion-franc total, putting the price tag somewhere around 500 and 600 million francs." Affirmative Action clowns in USA  should maybe get some "DERS" or "The Honorable" or " His Majesty" or "CEO" or "CFO" in front of their names if they want to run with the big boys. GBA and RICO all banksters, their hore politicians and IMPEACH the current DOJ, all 10k of the liars, thieves and non-bitchez.

Tue, 01/31/2012 - 15:29 | 2113677 bigfire
bigfire's picture

When I invest, it matters not what the color the investment manager's color is.  The only color that matter is green, and the amount I get back.  

Tue, 01/31/2012 - 16:55 | 2114127 MrTown3
MrTown3's picture

eh...the sun is killing you

Tue, 01/31/2012 - 17:14 | 2114218 Benjamin Simon
Benjamin Simon's picture

The race thing goes away when we base hiring and promotion on the content of their character. 

 

Tue, 01/31/2012 - 19:07 | 2114629 kekekekekekeke
kekekekekekeke's picture

god you loser white dudes are sad

Tue, 01/31/2012 - 19:59 | 2114798 trav7777
trav7777's picture

concur.  they will kiss black ass while it shits on them and beg for more.  Disgusting.

Tue, 01/31/2012 - 23:36 | 2115430 TCB963
TCB963's picture

At least they didn't vaporize $1.2 billion of customer money...

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