Freddie Mac (or Federal Home Loan Mortgage Corporation when it's in trouble) posted a $2 billion dollar loss for the third quarter and H&R Block's chairman resigned and the Fed is going to tell us at some point today that things will continue to suck next year, so everyone stock up on barrels and suspenders. [NYT]
On Friday, CNNMoney.com warned us that some Wall Street employees would be seeing tragic, drastic cuts in their annual bonuses—up to 50% at some mortgage-related firms. Specifically, hard-working bankers at Bear Stearns, Citigroup, and Merrill Lynch were expected to be "hit hard" by all the ridiculously irresponsible lending and related business they've been practicing for the last couple years. But today brought good news for those Heroes of Finance!
We can't really parse much of this Wall Street Journal story on the complicated tangle of investments between IAC honcho Barry Diller and John Malone, Barry's #1 stakeholder. (For instance: Who wanted it written? And why?) But! We did learn that apparently Barry Diller motors around Manhattan on a lil' scooter? That is really odd, and we had no idea. Also Barry should sue over their hideous illustration. [WSJ]
This morning the New York Times reported the same third quarter earnings-per-share as last quarter; this was up over same quarter last year, just as last quarter's was down over the previous year. (Stupid metric!) Circulation money was slightly up; that's due to higher prices for some papers offsetting what they call "volume declines." (Fewer papers!) There hasn't been significant recent growth in online income—while it's definitely up over last year, it's about the same as their last quarter, a bit over 10%. Mention obviously goes unmade of their stock price and its ten-year low. The upshot: in year-to-date comparisons versus 2006, we don't think 2007 is going to come out a winner over last year, though ad revenue was up (yay!) this quarter; October has already stalled a bit. Finance people should please chime in to see what we missed amid all these numbers! [NYTCo]
"One of the most closely watched bank analysts in the country said late Wednesday the Federal Reserve probably forced the four biggest U.S. banks to borrow from the Fed — when they did not need to — in order to set an example for smaller banks.... [Punk Ziegel & Co. analyst Richard X. Bove] called this nothing more than a "P.R. gig." The only explanation, he said, is the Fed told these four banks they had to borrow from the discount window and probably lose money doing it. The reason, he said, is to remove the stigma of relying on Federal Reserve money." This is supposed to make us feel better about the economy, right? [A.P.]
Take a moment to sympathize for the real victims of the current financial mess:
"Four major U.S. banks said they have each borrowed $500 million from the Federal Reserve's discount window, becoming the first to say they have taken advantage of the central bank's latest attempt to add liquidity to the credit markets. Citigroup Inc. said it borrowed 'on behalf of clients.' Minutes later, J.P. Morgan Chase & Co., Bank of America Corp. and Wachovia Corp. issued a joint press release saying they also borrowed $500 million each. The trio said while it has 'substantial liquidity and the capacity to borrow money elsewhere on more favorable terms, the companies believe it is important at this time to take a leadership role in demonstrating the potential value of the Fed's primary credit facility and to encourage its use by other financial institutions.'" Sounds bad? Translation please, finance-minded readers! [WSJ]
Forbes takes a look at a survey of hedge-funder spending:
"I like my women like I like my loafers: expensive, fit, and more often than not, with a bit of bling around their necks. They're probably my two favorite things in the world, women and loafers," writes the blogger behind Leveraged Sellout. And what he really enjoys each summer is the finance-world interns: Slightly stupid, starry-eyed and a little bit easy. Wherever can men such as him find women such as them?
Wow, so some messed up stuff happened with the Dow yesterday, huh? A 416 point plunge! Drudge whipped out the siren and everything! And we all know what the Dow's decline means, right? Actually, wait a second, no we don't! We are pig ignorant when it comes to stocks and stuff. We are, in fact, as financially savvy as the New York Post seems to think its readers are ("Don't worry, play Scratch N' Win!"). Fortunately, we know people who do understand these things and are willing to explain them to us. We spoke to Dana Vachon, former J.P. Morgan Investment Banking Analyst and author of the forthcoming Mergers and Acquisitions (pre-order today!).
Dealbreaker posts the following "blind" item query:
We can empathize with anyone being made to sit through a shitstorm of racial comments in the workplace, but sometimes it's a little much, even for us. Maybe Russians are "bad drinkers," and most Hispanics will, in fact, steal your car, but professionals shouldn't have to listen to crap like this in the haughty environs of Bear Stearns.
Some interesting media workplace and industry news via press release from the Feds:
Sure, tiny downtown banking concern Goldman Sachs named 115 new partnership managing director partner manager people, a title which confers some kind of bajillionaire shield upon those lucky enough to receive it. There are first details at DealBreaker about which of these folk you should immediately try to sleep with, and Intelligencer points out that despite the heaps of cash, this is really the signal to bail from the firm and plow new rows elsewhere. But what does all this mean for Goldmansex.com, you are no doubt not asking? The Dutch hookup site's owner claimed that "Goldman" was his personal nickname, but that didn't cut any mustard with domain authorities, who took away his URL at Goldman Sachs's request. He has promptly resurrected the exact same site at Goldmensex.com, which casts a little doubt on his nickname story. Even though the Dutchie says he will fight for his new spot (Goldman Sachs has already filed another complaint), he's also repurposed the venture with the generic name "City of Love." This is the kind of entrepreneurial drive the new partners at GS should respect, before they crush him.
If you've been watching HBO's Entourage lately, you've probably been enjoying the performance of Martin Landau as Bob Ryan, a past-his-prime producer unfamiliar with the new ways of Hollywood and able only to communicate in anecdotes that refer back to people long since dead and forgotten. It's an incisive portrayal, but it's also difficult to watch, since Landau does such a great job of conveying what a creature of the past his character is.
Oh Martha, Martha, Martha. Just when her problems seemed to be over — a handmade poncho heals all wounds! — the long arm of the law comes back for a bitch-slap. Today, Thursday, is the deadline for Martha to respond to a three-year-old civil suit filed against her by the Securities and Exchange Commission for insider trading of 4,000 shares of ImClone in 2001. Having maintained her innocence on the same criminal charges, one would suppose that she'll take the same stand for this round, and trial preparations would begin.
Hollywood is understandably nervous about the coming summer movie season, with several massively budgeted, iffy propositions set to establish their shepherds as either the prophetic sons of God they are, or banish them to the sixth rung of outcast-executive Hell with a bullshit production deal. With profits down, and major players advocating salary caps for stars, Entertainment Weekly thought it seemed like the right time to reexamine the asking prices of some the world's biggest movie stars:
• The Today Show may be losing Katie Couric's legs, but there's still hope if Meredith Vieira takes her place: Vieira eschews underwear in favor of nature's breeze. [TMZ]
• A moment of sincerity: Jane Pratt and Gwen Stefani working together on a magazine? Holy fucking awesome. We'll spend tonight sleeping on a pile of Sassys, praying for a miracle. [Suicide Girls]
• Because nothing is sacred, bid adieu to the $5 burgers and endless beers at Columbia's legendary West End — it's time for the Cuban invasion. [NY Sun]
• Is Gloria Steinem a Diva Who Dines? [DWD (scroll down)]
• Behold the commuting majesty of the SeaStreak, the preferred boat of New Jersey traders and those nostalgic for a booze cruise. [Dealbreaker]
• In a similarly depressing, finance-oriented vein, we present you with Hedgestock. Oh yes, hell is very, very real. [Dealbook]
• How the Times artfully dodges the Corrections bullet. [Tabloid Baby]
Randy Quaid's recently filed lawsuit against the producers of Brokeback Mountain has turned a pair of watchful binoculars on how talent is being paid for working in features produced by the so-called "mini-majors"—those arthouse divisions of huge studios such as Focus and Fox Searchlight. The studios claim that the low-budget films wouldn't be made without their casts and crew drastically cutting their asking price, while above-the-line players like Quaid feel they are nickle-and-dimed only to have the studios spend huge amounts on marketing, eventually reaping big distribution fees. The NY Times reports:
