1) Why Wall Street's Layoffs Are More Serious Than You Think (Forbes) - I hate to lead off the week with such a downer, but it's important that you guys read this. The piece explains the significance of massive layoffs in the back and mid office. Those are jobs that are probably never coming back.
2) JPMorgan Joins Goldman Keeping Italy Derivatives Risk in Dark (Bloomberg) - JP Morgan and Goldman Sachs have sold over $5 trillion worth of sovereign credit default swaps. The problem is they refuse to disclose how much of that insurance covers the PIIGS. We just saw what happened to Jefferies last week when the market thought they were over-exposed to European risk. Here's hoping that wasn't just a dress rehearsal.
3) Can Car Insurance Companies Beat Banks at Their Own Game? (American Banking News) - The repeal of the Glass-Steagall Act has had far-reaching consequences, but one of the aspects no one ever talks about is that insurance companies are now allowed to offer consumer banking services. State Farm was the first to start, and it's a trend that could catch on.
4) 5 Most M&A Crazy Companies Since the Financial Crisis (The Street.com) - It's no surprise that Berkshire Hathaway heads this list, but you might not have expected to see Hewlett-Packard and Pepsi on it. Thanks to an aggressive acquisition strategy, Pepsi is now the largest food seller in Russia.
5) ECONOMICS IN ONE LESSON (Foundation for Economic Education) - Here's a great Bonus Bananas freebie: Henry Hazlitt's seminal work Economics in One Lesson in PDF format. If you haven't read this book, do yourself a favor and download it right now for free.
6) America’s Love-Hate Relationship with Wealth (Get Rich Slowly) - This is a really interesting piece about the inherent mistrust most Americans feel toward the wealthy in spite of the fact that every American wants to be rich. We as a nation definitely have emotional issues when it comes to money. As is often the case with a piece like this, the real gold is in the comments.
7) Infographic: Millennials Are An Entrepreneurial Generation (Under30 CEO) - This great infographic actually gives me hope for the future. The younger generation is far more entrepreneurial than the past couple that came before them. With 17.4% unemployment in the 16-24 age group, I'm not surprised. Screw the Man, go be the boss.
8) Marine ready for A-list date at Marine Corps Ball (JDNews.com) - Marine Sgt. Scott Moore is squiring Hollywood hottie Mila Kunis to the Marine Corps ball tonight, and my hat is off to her and her "Friends with Benefits" co-star Justin Timberlake for keeping their word to attend the annual gala. Class act.
9) Snooki brand deal in court (NY Post) - Now let's talk about somebody a little less talented (but no less exposed). Jersey Shore's Nicole "Snooki" Polizzi is in court trying to get out of a big money deal she signed earlier this year to put her name on lingerie, housewares, even perfume. I'm guessing Eau de Snooki isn't gonna be a big seller outside of Staten Island.
10) Man Blames Sex Tape Posting on Broken Heart (NBC Philadelphia) - So this 20-year old kid is in serious hot water for posting a sex tape of he and his ex-girlfriend online which led to her being fired. I don't really understand why this illegal, but he got arrested and is facing some serious shit. (when the cops searched his place they found a bong and a photo considered child porn on his hard drive) The lesson here is this: sex videos of your ex should only be used in the event of her overreaching during divorce proceedings. If you absolutely have to jam up an ex-girlfriend with a tape, don't post it online - send it to her new boyfriend (or her dad, lol).
I've been kinda rough on Bank of America this week, and I didn't see any reason to stop when it came to the Video of the Week. We kid BofA, but it comes from love. Right? Enjoy:
As always, let me know what you think in the comments, and have a great weekend!
One of the most interesting companies out there for M&A is Inbev/Anheuser, especially in the US.
Anheuser typically can't compete in the microbrew scene, so instead they just buy up whatever regional breweries they can.
I also heard they are looking at yeungling (sp?)
Please someone correct me if I am wrong, but isn't a micro-brew defined by brewing in small batches/ a brewer making less than a certain amount of barrels per year?
So I do not think Inbev/ Anheuser has the ability to be a micro-brew, let alone compete in that regard.
I don't see why they couldn't have subordinate brands that do this.
Thanks for the economics lesson!
They'll buy out the better micro breweries if it comes to that, and that will be the end of it.Hey DNo, I would be happy to answer your questions here.
Can you please rephrase it and make it clearer? I am not following 100%.
Oh, you know what? I think I see where the breakdown of understanding is.
Often times the term "craft brew" is used synonymously with "micro brew". Although micro brewery is used to determine a breweries bbl/year, craft beer is the actual style of brew being made.
For it to make sense to you, replace the term(s) micro brew(ery) with with craft brew(ery).
I don't really understand how the numbers add up -ten/twenty/thirty over thousands of job cuts. Are there really so many ibankers/traders around? I'd suppose that the numbers include the middle/back supporting roles too?
Also, am i right to say that S&T cost more to run? You will need more supporting/transaction staff per trader when compared to, say, the M&A dept...
Am i right or miserably wrong?
Those numbers include all banking operations, not just S&T and IB. I think a lot of the cuts will be in retail, but there will be plenty of pain in the IBD's.
Haha kudos to the BAC video. Really made my day. +1 SB :)
+1 for the Mila Kunis pic
I've got Banana #11 for you Eddie (no homo): Howard Mark's latest memo, all about taxes: http://www.oaktreecapital.com/MemoTree/It%27s%20All%20Very%20Taxing%201…
eddie you find the best photos for your bonus b posts :)
Why is that BB never fails to report something 3 weeks late
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