If NYC’s Meatpacking District was Sodom, with it’s teeming masses of 20-something investment bankers running across cobblestone streets waving Amex Black Cards and puking off the side of luxury hotel rooftop bars, then surely, Greenwich, Connecticut was the modern-day equivalent of Gomorrah. One of the particularly offensive attributes of the 2003-2007 bull market was the rise…
Joshua M Brown
The Career Politician Who Sucks at Politics
I’ve really only heard Christopher Dodd‘s name peripherally over the years. The Career Democratic Senator from Connecticut’s name has been popping up more and more now that his constituents are starting to learn about how much he loves rogue financial corporations. From the New York Times: Across Connecticut, anger is erupting against Mr. Dodd, the…
David Friehling: Madoff Henchman #1
So, they got the accountant yesterday. His name is David Friehling and he inherited an accounting business in New City from his father-in-law which he proceeded to turn into a gristmill for the Madoff fraud, falsifying SEC filings and auditing statements for $186,000 in fees a year. Nice guy, wonder what’ll happen to him in…
FOR SALE: AIG World Headquarters at 70 Pine Street
FOR SALE: Charming 2-bed, 2-bath 66 story office tower in scenic downtown New York. Built in 1932, previous occupant was quaint insurance company, very neat. Property includes 5 star chef-staffed “breakfast nook”, on-site vault for holding bonus cash, and super computers to calculate CDS risks, available for new tenant purchase, please inquire. Breathtaking…
The New Glossary of Finance Terms
The New Glossary of Finance Terms Bonus: A form of extortion whereby employees of a company extract either shareholder or taxpayer money for their own pleasure regardless of the success or failure of said company. Derivatives: Trading vehicles created by over-educated finance professionals for whom speculating in stocks and bonds was not quite risky or volatile enough. Bulge…
Say It Ain't So: The Madoffs Have a Financial Interest in P.J. Clarke's
Awwww Hell No! One of my favorite burger joints in the city is tainted with money from Ma Madoff and the Fake Trading Gang. From Bloomberg: Prosecutors are seeking the Madoff interest in the restaurant P.J. Clarke’s on the Hudson LLC. A woman who answered the phone at PJ Clarke’s declined to comment and wouldn’t…
Kidz Korner: Where Do Bonuses Come From?
Kidz Korner is a new feature here on The Reformed Broker where I explain complex financial issues to kids from the neighborhood in a simple, straightforward way. _______________________________________________________________________________________ Little Timmy Johnson: Gee Mister, I sure do hear a lot on TV about all these bonuses people are getting…am I going to get one? The Reformed…
One Year Later: The Fall of Bear Stearns
It was a day many on The Street will never forget and in many ways, we probably shouldn’t. The events of March 17th 2008 will forever be a reminder to me that no one is too big, wealthy, established or smart to fail. The night before, on March 16th, a Sunday, the details about…
This Just In: Cuomo Wants AIG Names by 4PM
Headlines from Reuters: March 16 (Reuters) – New York Attorney General Andrew Cuomo issued a letter to American International Group Inc AIG Chief Executive Edward Liddy: * Cuomo threatens to subpoena American International Group Inc AIG over bonuses * Cuomo says has requested list of individuals who are to receive payments under retention plan, as…
Rage Against the Bonus Machine
Now we are being told that our officials are unable to curb $400 million in bonus payments to AIG because the payments are “contractually obligated” to be made. There’s a great scene in the movie Major League where Corbin Bernsen‘s character Roger Dorn complains to the GM of the team about his contract and what he’s…
