The name Robert Khuzami is well-known to Zero Hedge readers: the former top SEC enforcer is perhaps best known not for what he did (judging by how many Wall Street bank executives ended up in jail following the Great Financial Crisis, very little), but for what he didn't - namely pursue any action against his former employer, Deutsche Bank, where he was a general counsel and where under his watch Greg Lippmann was "shorting your house." The reason, among others, extensive deferred comp linked to DB stock as we reported all the way back in May 2010. But Bob didn't care about what he did, or didn't do at the SEC - he was much more interested in what he would do after he left the regulator, which he did in January of this year. Because Bob, courtesy of his DB days, realized the massive paycheck potential of a revolving door job at the head of the government's enforcement unit. Sure enough, as the NYT reports, he has capitalized on just that following a $5 million a year contract (with a 2 year guarantee) with legal behemoth Kirkland & Ellis where he will be a partner and "will represent some of the same corporations that the S.E.C. oversees."
Tim Geithner's time is almost done, but the former NY Fed head is only one of very many whose position is expected to be replaced in Obama's second term (just so there is a non-continuous chain of command if and when the time comes for the people to demand an explanation for the state of the US economy from the talented Mr. Geithner). Who else is out and who is expected to be in? The following list attempts to cover all upcoming rotations at the top of the US cabinet. What is not attempted is a prediction of where in the private sector people such as Geithner will end up: that is considered largely self-explanatory.
The Alaska Retirement Management Board, a state agency, is suing Mercer and seeking $2.8 billion in damages...
Paul, Weiss has been successful in canvassing GM bondholders, and has gotten another major player to split from the Ad Hocs and join the informal committee. Western Asset Management has decided to join Franklin Templeton, Marathon, JMG, and Eastbourne, who as Zero Hedge disclosed, represent roughly 6% of the unsecured bonds.
In the first bondholder splinter group in the GM bankruptcy, today Paul Weiss filed a statement under rule 2019, creating an informal group of bondholders. The four initial members hold $1.6 billion face in notes, and were previously members of the HLHZ-advised ad hoc committee, which was instrumental in attaining to the highly questionable 54% of plan supporters.
GM's bondholders have had enough of being ignored.
As Zero Hedge wrote, GGP may be forced to file for bankruptcy next Tuesday unless its proposed consent solicitation passes, which is contingent on the acceptance of 90% of its 2009 bondholders and 75% of the holders of 2012-13 notes. However, the blocking power on the deal lies with any combination of just three bondholders, as the deal changes material maturity and coupon terms.
General Growth Properties, which is currently in defaults on numerous loans and is at the mercy of its lenders, has received bids of almost $400 million for mall properties including Faneuil Hall and South Street Seaport reports Bloomberg.