Perella Weinberg

Former JPMorgan Banker Convicted Of Insider Trading

In one of the few cases of insider trading leading to an actual conviction, earlier today, a former Wall Street investment banker was found guilty for engaging in insider trading by tipping his father off to unannounced healthcare mergers. Sean Stewart, who previously worked at JPMorgan and Perella Weinberg was found guilty by a federal jury in Manhattan on all nine counts he faced, including securities fraud.

Frontrunning: May 15

  • The fake: Avon-Offer Hoax Shows It’s Easy to Put One Over on SEC’s Edgar (BBG)
  • And the real: US buyout group TPG snaps up UK discounter Poundworld (FT)
  • El Niño near-certain to last through summer: U.S. climate center (Reuters)
  • Oil Sands Land Becomes Alberta’s Hot Real Estate as Oil Rebounds (BBG)
  • SEC a stumbling block in banks' forex guilty pleas: sources (Reuters)
  • Pimco’s Stocks Chief Maisonneuve to Leave as Funds Closed (BBG)
  • Bank of America’s Woes Test ‘Fixer’ CEO (WSJ)
  • Puerto Rico Governor, Lawmakers Agree on Revenue Proposal (BBG)

Frontrunning: November 6

  • LOL@Fundamentals: European Stocks Fall as Investors Seek Stimulus Clarity (BBG)
  • Obama, Republicans sound conciliatory note but battles loom (Reuters)
  • Firms drop Pimco funds from managed accounts (Reuters)
  • Not All QE Is Created Equal as U.S. Outpunches ECB-BOJ (BBG)
  • Ukraine Accuses Russia of Sending Troops as Truce Wobbles (BBG)
  • Lenovo Slumps After Projecting China ‘Hypergrowth’ to End (BBG)
  • Palo Alto Networks discovers new malware targeted at Apple devices (Reuters)
  • IPO That Brought In $1 Billion in March Implodes in Denmark (BBG)

Frontrunning: September 4

  • Global stocks bounce on sign ECB could launch ABS program (Reuters)
  • Putin unveils Ukraine ceasefire plan, France halts warship (Reuters)
  • Poroshenko Flummoxes Investors With About-Face on Truce (BBG)
  • No Free Lunch for Companies as IRS Weighs Meal Tax Rules (BBG)
  • Turkey Struggles to Halt Islamic State 'Jihadist Highway' (WSJ)
  • Lego Becomes World's Largest Toy Maker on Movie Success (WSJ)
  • U.N. says $600 million needed to tackle Ebola as deaths top 1,900 (Reuters)
  • Goldman Sachs Named 'Stabilization Agent' for Alibaba Stock Offering (WSJ)

Frontrunning: July 17

  • Bubble Paranoia Setting in as S&P 500 Surge Stirs Angst (BBG)
  • But how will math PhDs determine "fair value" - Wall Street Techs Take Secrets to Next Job at Their Peril (BBG)
  • U.S., EU Escalate Russia Sanctions as Putin Holds Firm (Bloomberg)
  • Australia Becomes First Developed Nation to Repeal Carbon Tax (WSJ)
  • Gaza humanitarian truce goes into force, hours after tunnel clash (Reuters)
  • Barclays, Deutsche Bank Said to Face U.S. Senate Hearing (BBG)
  • ECB Asset Buying Far Off and May Not Come, Hansson Says (BBG)
  • Time Warner win would make Murdoch U.S. media king (Reuters)
  • Costly Vertex Drug Is Denied, and Medicaid Patients Sue (WSJ)
  • China Rallying for All Wrong Reasons to Top-Rated Analyst (BBG)
  • GM recalls some cars with problematic switches; judges others safe (Reuters)

BlackBerry Enters LOI With Fairfax Financial To Be Taken Private At $9.00/Share; Deal Subject To Diligence, Financing Outs

Following Friday's stunner of a stock halting press release, moments ago BBRY was halted again, this time however for some "good" (relatively speaking) news. The firm reported that it has entered into a Letter of Intent (so nothing definitive yet) with Fairfax Financial, according to which BBRY shareholders would receive U.S. $9 per share in cash - Transaction valued at approximately U.S. $4.7 billion - Consortium permitted 6 weeks to conduct due diligence - BlackBerry entitled to go-shop during due diligence period, subject to payment of a termination fee in the event alternative offer accepted. In other words an LBO, one which however has not only but many outs: "There can be no assurance that due diligence will be satisfactory, that financing will be obtained, that a definitive agreement will be entered into or that the transaction will be consummated." Which means that once the buyers figure out the potential disaster on the books, expect the final price (if any) to be revised lower as one after another MAC clause is triggered. 

Goodbye Hostess

Everyone loses:

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

Next up: the Twinkie economy.

Brazilian Drugs Lords Show More Integrity Than Central Bankers, Refuse To Sell Crack To Their People

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.

Frontrunning: April 19

  • 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)

Here Are The Latest Fund Recipients Of New York Pension System's Generosity (Or Wrath)

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.

Golf Resort Linked To Tiger's Apology Files For Bankruptcy, Goldman Implicated (No, Seriously)

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.

DebtWire Reports CIT Bondholders Push For More Equity During Call

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.