partnership

The future of Bear Stearns

Wed, 09 Jan 2008 06:59:59 -0500

And so a new era begins at Bear Stearns. I see this as a somewhat sentimental transition: Jimmy Cayne was one of the Grand Old Men of Wall Street, as was Ace Greenberg, his mentor. They really ran the firm the old-fashioned way, as a partnership, which the top firms no longer are. The new guard--exemplified by John Thain and Lloyd Blankfein--are more technocratic and sold on the idea of managing large public companies, which is a good thing. So this is progress at Bear Stearns, but it may also spell the end of the firm as we know it. You would have to think all the rebuffed suitors are interested once again. Alan Schwartz is a savvy guy--we'll soon see what he's planning. - Jim

The real likelihood of higher taxes on rate hikes

Wed, 11 Jul 2007 20:01:37 -0400

The private equity industry is certainly mobilizing. Their footprint is being felt in Washington, as evidenced by Henry Kravis paying a visit to key Congressmen. So what are the chances the industry will prevail. Pretty good really. The Senate has been anything but enthusiastic about tax hikes, and the industry appears to be targeting members of Congress who depend on the industry (or really any partnership) or have benefited via job gains. John Kerry told the AP that he had to weigh the revenue against the effects on venture capital flows. All in all, any bill will have to be narrowly drawn or you will invoke the wrath of all partnership-oriented industries. Right now, I would say the industry's chances of escaping higher taxes are pretty good. But this far from over.

For more:
- here's the AP article

Blackstone IPO: It's on--and soon

Tue, 19 Jun 2007 20:01:37 -0400

A week earlier than expected, Blackstone will price its IPO--probably on Thursday. It will trade under the NYSE symbol BX. You have to wonder what demand will be like. My sense is that the institutional buy will be very strong. Blackstone aims to sell 133.3 million common units in the $29-$31 range, which would bring in up to $4.13 billion. But the proceeds could soar up to $4.75 billion, as the underwriters are authorized to sell up to 20 million more shares. Morgan Stanley and Citigroup are the leads. So it could be the largest IPO of the year. The wildcard is the bill in Congress that would boost taxes on the partnership. But an actual law is eons away. I do not think that buyers will factor it in negatively. The fact is that most people think the private equity industry still has legs. The issue is whether this will mark the height of the party.

For more:
- here's an AP update
- VIDEO: How legislation could affect Blackstone IPO

Merrill Lynch, Carver in interesting partnership

Thu, 15 Mar 2007 20:01:37 -0400

Merrill Lynch is pursuing more customers from underbanked areas via a new partnership with Carver Federal Savings Bank. Carver branches in Harlem and Fort Greene, Brooklyn will house Merrill Lynch financial advisers in new booths. Merrill will sign up customers for brokerage accounts and other products and services. Customers at other Carver branches will also be able to tap Merrill advisors. A special team of advisors will handle the calls. Carver and Merrill will split all costs and revenues. The new partnership also calls for educational seminars at the branches. Both firms are convinced there is hidden wealth in these neighborhoods. The deal seems to be borne of the common conviction by Stanley O'Neal of Merrill Lynch and Deborah Wright of Carver.

For more:
- here's a New York Times article

NYSE inches closer to Euronext deal

Tue, 14 Nov 2006 19:01:35 -0500

Good news for the New York Stock Exchange: Deutsche Bourse apparently has given up on its attempts to merge with Euronext. That seems to leave the field open for the Big Board, the partner Euronext wanted all along. So it certainly seems as though the path is paved for the NYSE to become a much more global player. Deutsche Bourse announced recently it will form a partnership with Borsa Italiana. The two had originally aimed to bring Euronext into their fold, to create a mega-exchange in Europe.

For more on this:
- Here's an update from the AP

Top software analyst to leave Goldman Sachs

Sun, 05 Nov 2006 19:01:34 -0500

Rick Sherlund made quite a name for himself covering Microsoft. He's considered one of the very best and among the most influential software analysts working. He saw the industry through some of its most dynamic stages. Now, Goldman Sachs wants him to try out the buyside as a manager. He'll stay on at Goldman, but is actively looking for opportunities. He just might start a fund of some sort in partnership with someone else. This will be an interesting experiment. Can a sellside analyst actually make the big buy and sell decisions. It may not be all that easy. We'll have to see.

For more on this:
- Here's a CNNmoney.com article

Goldman Sachs names new PMDs

Wed, 25 Oct 2006 20:01:38 -0400

Goldman Sachs is of course no longer a partnership. But it certainly has striven to retain the feel of its bygone days. It has just announced 115 new "partner managing directors," who are entitled to a larger cut of company profits and a whole lot of perks. Not to mention the prestige. The bank names new PMDs every two years. This was the first by Lloyd Blankfein. This is a career making designation. Last year, the PMDs were awarded more than $2 billion in bonuses, which comes to almost $7 million per person. This year, their take will be even larger, given Goldman Sachs' record-breaking year for profits. Some think they will rake in $10 million each. No wonder kids today want to grow up to be investment bankers.

For more on this:
- Here's an update from The Times

Also: Goldman's record breaking earnings report. Article

Citigroup inks deal with Turkish bank, but...

Tue, 17 Oct 2006 20:01:35 -0400

People had been expecting another international deal by Citigroup. In a $3 billion transaction, Citigroup will buy a 20 percent stake in Akbank, a top Turkish bank. The deal gives Citigroup one non-executive director on the nine-person board of directors. Citigroup expects the deal to add to earnings almost immediately. This is another in a line of global deals that U.S. banks are striking. All except Bank of America view the international market as one that is quite promising. This is hardly transformative for Citigroup, however. It will do little to help CEO Prince assuage the growing ranks of domestic critics, which will be heard in force if the bank's earnings disappoint.

For more on the deal:
- Here's an AP update
Also: Bank of America and China Construction expand partnership. Article

Wall Street vs. Hollywood battle heats up

Sun, 15 Oct 2006 20:01:38 -0400

Hedge funds are increasingly getting into the movie business. Joel Silver, of The Matrix fame, has struck a deal with a consortium that will make him the owner of all films the partnership produces. Ivan Reitman has inked a $200 million deal with Merrill Lynch for 10 films. After breaking from Paramount Pictures, Tom Cruise is said to be in talks with several investors. Is there anywhere hedge funds won't roam? They'll go wherever the money is, that's for certain. Some funds just might find the returns on movies a bit unpredictable, but these guys love to bet. And you can always hire expertise. The studios will need to somehow reinvent themselves.

For more on this:
- Here's a New York Times article

John Weinberg passes away

Tue, 08 Aug 2006 20:01:35 -0400

John Weinberg, an iconic Goldman Sachs banker who ran the firm for more then a decade, has passed away. He was 81. Apparently, he suffered some complications from a fall about two weeks ago. He is known as the Goldman chief who accepted a large investment from Sumitomo Bank, which helped the then-partnership weather the crash of 1987. He also made a crucial investment in a trading company that has since become a valuable slice of the firm's revenue pie.

> Here's his obituary