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This week's investment banking buzz and inspiration | Advantage Dealbook

Citi gets ‘Rakoffed’

Judge Rakoff took out Citi’s settlement of $700mln CDO losses suffered by investors to $285mln on the grounds that Citi had to go through

SOUTHPORT, CT - AUGUST 02: The home of Andrew ...

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the trial and relevant facts exposed in such a matter. Citi employee Brian Stoker’s SEC infringements were also combined and put up for trial on July 16, 2012

Rakoff wrote in the opinion that in any case like this, which “touches on the transparency of financial markets,” there is an “overriding public interest in knowing the truth.”

SEC which had agreed too the Citi’s settlement for $285 mln averred that it would review the judge’s ruling even as it thought the settlement fair according to SEC Director Bob Khuzami

Moody’s gets into the scaremongering business
Moody’s could be settingup the ratings industry for a big showdown, timing its pronouncements to a T with ultimate brinksmanship. The morning started with Moody’s annpouncing a downgrade riosk for all 17 Euro countries, even as a non chalant France gets ready for the polls, both Sarkozy and opponent Francoise Hollande not even bringing up the topic with voters. Moody’s caught everything on its to be sold events agenda and raised a public pronouncement of a downgrade in almost every case from its sales meetings, likely as it found 17 ratings actions in the euro zone today also
Italian auctions went off well albeit at a yield of 8%, the government raising nearly $10 bln (Eur 7.5 bln) in 3 year and 10 year bonds. The Foreing ministers meeting continues in Brussels. Spain and France auctions are planned tomorrow and will likely end in much the same vein as the inimitable Euro climbed iup again on the news of investor interest ECB added bank deposits of Eur194 bln short of the target by Eur 9 bln driving EURO down from its peak of 1.3442
Zynga, Empire State Building unseeming IPO candidates 
Close on the heels of the expiry of  Linkedin’s 6 month hold period, the $10 bln Facebook IPO announcement ewas followe dby one for the Empire State Building, belonging to realtor family Malkin, which is using the property as the centerpiece of  a publicly traded real estate company to further its ambitions with easy equity financing and its complex ownership structures converted into a REIT with public ownership. The other buildings include 1, Grand Central opp Grand Central Terminus
Zynga starts road shows in the first week of December
Nomura to save $1.2 bln in Europe, pares Sovereign holdings
Nomura, currently working with 4500 employess on the rolls in Europe , has planned to eke out most of its savings from the staffing in Europe. The bank ended September with a $521 mln loss. I t has also exited from $2.4 bln of Italian debt and $300 mln of Spanish debt leaving its with $400 mln in Italian and $165 mln in Spanish debt
ECB lending at all time high
ECB balance sheet reduced its dependence on Asset Backed Securities as collateral this year but th ebalance sheet continues to grow, now at Eur 2.27 T. However this growth may be muted, but worries increase on its overnight facilities which has grown by 25% to Eur 255.6 bln , Banks’ one week Fixed term deposits with the ECB ticked to EUR 160 bln for the week of Oct 7. The ECB holds EUR 419 bln n Gold and gold receivables, EUR 339 bln in marketable securities and EUR 190 bln in currency assets Bond buying continues at a rate of EUR 9-10 bln much below an interventionist level but higher than EUR 5 bln in the third week of November Asset backed Securities of almost EUR 350 bln were created in 2010 with the sole purpose of trading as collateral to ECB for loans, while there were no buyers for the assets in the markets Germany provides for 27% of the capital of the ECB or the Eurosystem of central banks liable for losses at any central bank in the 17 (
Germany and France habve mooted bilateral agreements to speed up changes required to the treaty and keep budgets in discipline
JP Morgan now alone in London?
JP Morgan’s European foray was pre ordained on Cazenove chairman/founder David MAyhew. Mayhew stayed on 7 years after the merger after promising for 3 years and is finally leaving this week, taking with him personal relationships he had established in his tenure
Bank of America about to break the $5 barrier
Even as the month’s Case Schiller Index contracted further by 0.6% instead of a 0.1%, Bank of America stock continued trading down with amarkets feverishly expecting it to break $5 on the downward tick. @zerohedge tweets/writes..wonder how many of the top 50 holders of BAC will have to sell by the time it hits $4, another @upside trader tweets when Citi broke $5 it went to $2 in 2 months
The owners of the Merrill Edge report which averred that the mass affluent market , 80% found it harder to save this year, could very well be reverse splitting its own shares following Citi’s aggregation after the Treasury sale at the begininning of the year
How hedge funds pay for “Washington intelligence”
As we recently carried in a “Book report” on Insider Trading in Washington, it is perfectly legal for Congress men and Whitehouse/ Capitol Hill staff to share information with hedge funds sold to the highest bidder (Wall street cheat sheet)


This entry was posted on November 29, 2011 by in Financial Markets and tagged , , , , , , , .


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