THE FINTAG NEWSLETTER @ 12 October 2009

FINTAG COMMENT

Erratic.

Like my predictions of late, the next few newsletters will be erratic in delivery. During boom times, managers love to tell you how good they are; come the slump and the excuses run out and those newsletters run dry. My excuse is travelling. For the next 3 weeks I shall be continuing my horrendous schedule of 1 star hotels, run down bars, pitching and failing to close, flying at the back of the plane and being charged roaming charges on my Blackberry that could pay off half the UK’s debt.

This week I am outed by a German magazine. It comes out on the 16th October and I shall not be linking to it (although I am hoping the pictures are good). Its a spread article in a magazine called Business Punk.

In the meantime, enjoy the weekend’s news whilst I learn how to speak Spanish.

For those of you who like to comment on my views, can you stick to point? Off pisting is for Italians and overly tanned Frenchmen.

FOR SALE: ONE BRIDGE, A BOOKMAKER AND MILLIONS OF STUDENT LOANS

independent

A fire sale of public assets will be announced by Gordon Brown today to help cut the Government’s mounting deficit.

The Tote, the Dartford crossing, the student loan book, the Channel Tunnel rail link and the Government’s stake in Urenco, which enriches uranium for nuclear power stations worldwide, will all be offered to private bidders in the next two years, in an attempt to raise £3bn.
Related articles

Fintag says
Thatcher was lambasted for selling the silver. For Gordon Brown, this is part and parcel of his psyche. I quite fancy a piece of those student loans, you know securitizing them and selling them as bond on an ABS subprime style. If I have to sit next to them on the tube and at the back of planes, then why not join them and flog some of their liabilities?

financial times says ” Barclays to sell £4bn assets “

THE LOST GENERATION

business week

The continuing job crisis is hitting young people especially hard—damaging both their future and the economy. Bright, eager—and unwanted. While unemployment is ravaging just about every part of the global workforce, the most enduring harm is being done to young people who can’t grab onto the first rung of the career ladder.

Affected are a range of young people, from high school dropouts, to college grads, to newly minted lawyers and MBAs across the developed world from Britain to Japan. One indication: In the U.S., the unemployment rate for 16- to 24-year-olds has climbed to more than 18%, from 13% a year ago.

Fintag says
Perhaps these students can get radical. Students for the past 30 years have been MBA greed is good wimps. Let us see if this new breed of smart but unfulfilled can help kick start a new music / art / underground scene to alienate us grown ups.

ICAHN SAYS 2ND DOWNTURN COULD CAUSE ‘BLOODBATH’

dealbook

Carl C. Icahn, the billionaire investor, warned Friday of the potential for a second economic downturn that could cause serious pain for investors.

“If you get a double-dip recession and they start coming down, it’s going to be a bit of a bloodbath,” Mr. Icahn, whose funds recently trimmed their stake in the Web company Yahoo, said in an interview on CNBC.

Despite the months-long stock market rally, Mr. Icahn took a generally cautious tone in Friday’s interview. He did say he sees an investing opportunity in real estate — an opportunity to sell it short, that is.

Fintag says
Maybe the new 1969 will be a student revolting 2010? 21 Sept 2009 may in fact turn out to be 21 September 2010 …? [Editor: uh?]

here is the top firm says ” Firm CEO Incompetency League Table “

alea says ” Fluctuation in Haircuts => Fluctuations in Balance Sheet Quantities “

UK CORPORATE EXILES FACE YEARS OF TAX SCRUTINY

financial times

UK companies seeking to minimise tax bills by locating abroad would face years of scrutiny to ensure senior management decisions have genuinely relocated, a senior official at HM Revenue & Customs has said.

Firing a warning shot across the bows of companies thinking of emigrating, Dave Hartnett, permanent secretary for tax at HMRC, told the Financial Times he was not convinced that relocations could be done in a “clean way” and warned that a challenge could come years after the move.

Fintag says
This is nothing new. With the growth in outsourcing overseas, Intellectual Property rights and virtual computer programming running most companies, this is becoming near impossible to prove. Many companies are partnerships and don’t have board meetings. Why don’t the UK government just bring in a flat tax and stop messing around. HMRC have been slashed and burned and Gordon Brown will most likely outsource it all to India anyway …

FIRMS ‘MISHANDLE SENSITIVE DATA’

bbc

About a third of UK employees throw sensitive documents in the bin instead of shredding them, research suggests.

The study also found almost three quarters of workers felt their organisations could do more to protect their customers’ sensitive information.

The data was compiled for National Identity Fraud Prevention Week.

Fintag says
I find this truly irritating. KYC, AML, Identity verification is a farce. I am changing my name to Fatima Zabaglione and learning to speak Spanish.

HEDGE FUND CHIEF JOINS THE GREAT SURVIVORS

times

Philippe Jabre spent much of last October and November flying economy. Times were tough as he tried to convince investors not to pull their money out of his hedge fund.

When he was not in the air, Jabre rarely moved from the trading floor of his Geneva office. With a phone glued to his ear, he tried to make sense of the markets.

Although he was bearish as the credit crunch began to unfold, he did not expect the markets to slump so violently. He certainly did not expect a threat to the existence of his hedge fund, Jabre Capital. “It was touch and go,” he said. “The run [on the fund] was not justified, but the large institutions and the funds of funds, those that were ticking boxes, didn’t want to stay.”

Fintag says
Jabre the Crook. You have to hand it to the guy.

HEDGIES PLOT NEW DIRECTIVE

city am

REPRESENTATIVES of the hedge fund industry will this week put forward an alternative to the European Commission’s (EC) alternative investment fund managers (AIFM) directive, which they say would devastate Europe’s hedge fund industry.

The Alternative Investment Managers’ Association (Aima) has been leading lobbying efforts to revise the directive and believes that it has secured sufficient support in Europe for changes to the EC’s plans.

Aima will now focus its attention on proposing an alternative and is expected tourge Brussels mandarins to focus on increased disclosure and registration of fund managers.

Fintag says
This new directive is called Abusing UCITS 3 and living in Switzerland.

telegraph says ” Ditch the Directive: UK stands up for hedge funds “

My immediate concern is which end has the headboard?

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