Perella Weinberg

Everyone loses:

• HOSTESS JUDGE APPROVES MOTION TO WIND DOWN COMPANY
  
• HOSTESS WINS APPROVAL TO CLOSE AND BEGIN SELLING ASSETS

Next up: the Twinkie economy.

Just over three short years ago, as equity markets were re-surging on a wave of taxpayer-funded bailout euphoria, we wrote "There is nothing that can be done at this point to prevent the administration from leeching every last dollar out of its taxpayers to benefit the terminally addicted and zombied bank system". We, in the imagined words of Ryan Lochte on Saturday, "Nailed It" as we see a market now so bereft of any human-based reaction to reality and merely a product of a drug-peddling central bank that appears to have become self-aware in its omnipotence. To wit, the present day; as we are teased and tickled day after day with the promise of more CB crack if we are just good boys and BTFD, the sad nay terrible fact is that even the most 'say hello to my little friend' of drug-dealers - those of the Brazilian Favelas - have decided to refuse to sell their 'crack' to their own people since it "also brought destruction in [the] community". Maybe, just maybe, the Fed will up its level of conscience this week to that of Brazilian drug-dealers.

• Bernanke May Sustain Stimulus to Avoid ‘Cold Turkey’ End to Aid (Bloomberg) -  a plan that will be woefully insufficient as discussed extensively before
• Asia voices confidence in U.S. debt after S&P jolt (Reuters)
• Americans Shun Cheapest Homes in 40 Years as Owning Loses Appeal (Bloomberg)
• Funds accuse banks of Libor manipulation (FT)
• Deutsche Bank’s $4 Billion Las Vegas Bet (NYT)
• Obama Embarks on Tour to Sell Debt Plan, Not Dwell on S&P (Bloomberg)
• Greek bond fears intensify debt debate (FT)
• With much at stake, Asia voices confidence in US debt after S&P jolt (Reuters)
• Deutsche Bank Algo Cribs HFT Strategies (Traders Magazine)

Full recap of the ideas and recommendations at yesterday's Ira Sohn conference.

Every month the New York State Common Retirement Fund (CRF) provides an update on which funds are the beneficiaries (or lately, have suffered the wrath) of its portfolio manager capital allocation. As everyone knows, in the past preferential allocation to select external asset managers has cost quite a few of the "capital allocators" not only their jobs, but now that the NY AG is involved, potentially their freedom. Which is why keeping a running tally of this data is relevant as it shows not just who, in the eyes of the New York Pension system is doing well, but who is, shall we say, "politically connected" these days. Here are the most recent winners and losers. Oddly enough, recent monthly allocation has been surprisingly muted compared to prior periods, especially in domestic and international equity strategies: is the CRF running out of allocatable capital? Also, we are confident Perella Weinberg's receipt of $100 million from the CRF in November had nothing to do with its acquiescence to being strong-armed by the administration in Chryslergate.

It's official - Goldman Sachs is the new American Idol. The firm has taken over American public interest and its airwaves (both metaphorically and soon, if Canada is any example, literally) - after serving as ground zero for the financial system bailout, after facilitating the fudging of EU entrants' books over the past decade, after going after iconic soccer clubs, and after actually rebranding marine wildlife, the firm is now implicated as the key lender, and, after pulling liquidity at the last moment, soon to be owner, of the Sawgrass Marriott Gold Resort & Spa, which has just filed for bankruptcy. The resort, which is home to the associated TPC Sawgrass golf course (which has not filed for chapter 11, at least not yet, and also happens to be the headquarters of the PGA Tour), is where Tiger Woods decided to apologize on February 19 for having sex with "those women." We are positive that the latest reality series to come out of Hollywood brain trust "Who wants to marry a Goldmanaire" is just months away.

CIT bondholders are starting to disagree on who gets the spoils. This is not very surprising, seeing how they have little (read no) downside to their existing bargaining position. Either way, in today's call hosted by Little Bear Investments, the bondholders are standing firm on their bargaining position.

After several months, the FDIC has been kind enough to provide Zero Hedge readers with the information requested on Perella Weinberg's compensation (good to know bank liquidation pays a nice $4.6 million a year), and the balance on the DIF (which is somewhat stale as the FDIC recently reported that information in its quarterly update and Zero Hedge discussed the topic). Under the umbrella of the Freedom Of Information Act, I present the information as received from the FDIC unadulterated.

Sheila Bair on Cramer today. Instead of pandering her flawed policies in front of a small (if any) cable audience, with such pearls as "insured depositors have nothing to worry about", maybe Ms. Bair can finally get back to Zero Hedge in its FOIA request attempting to obtain some/any information on just what is the compensation/fee structure for FDIC's advisor, and the real man behind the curtain, Perella Weinberg.

As had been widely expected, today (a day before the stress test results finally stop leaking, compliments of the securities and exchange commission) the senate passed a measure approving the expansion of the credit line from the Treasury to the FDIC to $100 billion, from $30 billion previously. The vote passed 91 to 5. In addition, the FDIC will now have half a trillion credit limit that will expire by the end of 2010.

As had been widely expected, today (a day before the stress test results finally stop leaking, compliments of the securities and exchange commission) the senate passed a measure approving the expansion of the credit line from the Treasury to the FDIC to $100 billion, from $30 billion previously. The vote passed 91 to 5. In addition, the FDIC will now have half a trillion credit limit that will expire by the end of 2010.

Finem Respice has snagged some more thorny tidbits on the scent trail of the former NYT reporter and current Czar Of Government Motors's negotiating tactics. As more dead bodies float to the surface, it appear that Perella Weinberg was merely one of the hedge funds on the receiving end of the "persuasive" tirades. This is, of course, to be expected, as there were in the end, more than one hold out, and if Mr.

In a story becoming more bizarre by the minute, ABCNews has now picked up on the Perella Weinberg scent with some new twists. According to ABC, White House deputy press secretary Bill Burton claims that the allegations by Tom Lauria, global head of the Financial Restructuring and Insolvency at White & Case are "completely untrue".

Update - please see additional FOIA information at end of post.

According to an Obama official, the company will receive a $3.5 billion DIP from the U.S. government and up to $8 billion in total government financing, will file in NY bankruptcy court, and GMAC will take over financing duties.

The bankruptcy is expected to last 30-60 days (this is the biggest load of misguided garbage I have ever heard).