Posts Tagged ‘Chris Flowers’

Chris Flowers: One Hit Wonder?

On the bright side, maybe there’s a high level government job waiting for him.

Chris Flowers: One Hit Wonder?

Water lillies, flowers - the business insiderCourtesy of John Carney at Clusterstock

These days it is a pretty sure bet that Chris Flowers regrets telling investors in his private equity funds that "every single investment" would make money. His largest fund is said to be down between 60% and 70%, and some secondary market buyers assign shares in it no value at all.

William Cohan has an extraordinary piece in Fortune on the rise and fall of Flowers, the former Goldman Sachs wonderboy (once the youngest partner ever) who became one of the biggest names in banking by buying Japan’s Shinsei bank for $1 billion in 2000 and IPOing it four years later for $10 billion. But these days his reputation is under fire as the banking system tries to recover from the ruinous 2008.

"He did one great assisted transaction in Japan," one unnamed banker tells Cohan, "and off that he raised $7 billion. The great failing in private equity is to assume that you can repeat the past. I think he just assumed, for instance, he could repeat Shinsei over in Germany. Big mistake."

That person is referring to the $1.5 billion tender offer Flowers big fund made to acquire 24.9% of Hypo Real Estate Holding, a Munich-based commercial real estate lender. Flowers paid a 25% premium to where the shares were trading before the deal was announced. Just four months later Hypo had to turn to the German government for assistance. The German government ended up owning 90% of Hypo, drastically diluting Flowers’ stake. These days his investment in the bank has probably dropped in value by 87%.

But what may have hurt Flowers’s reputation even more than his investment losses is the role he played in Bank of America’s acquisition of Merrill Lynch. Flowers, while at Goldman Sachs, had helped put together the merger of NationsBank and Bank of America. In early 2008, when Merrill looked to raise capital, Flowers poured through its books but concluded the asking price was too high. But when the crisis hit on September 11, Flowers found himself back at Merrill as an adviser to Bank of America.

Flowers issued a "fairness opinion" on the deal, endorsing the 70% premium Bank of America paid for the shares of Merrill Lynch. He was repeatedly invoked in the press…
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Phil's Favorites

The Web's Missing Interoperability

 

The Web’s Missing Interoperability

Courtesy of Ben Thompson, Stratechery

It was 2004, and Tim O’Reilly needed a name for his new conference, and so “Web 2.0” was hatched in a brainstorming session devoted to finding a name. A year later O’Reilly would flesh the concept out with his definitive 2005 post What is Web 2.0, but given the fact so many Web 2.0 applications were about creating platforms that were then made valuable with user-generated content, it feels appropriate that O’Reilly made a name first and added the content to justify it later. And, in the spirit of Web 2.0, I’m not going to quote O’Reilly&r...



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Zero Hedge

What's Going On At Goldman? Another Senior Exec Just Jumped Ship

Courtesy of ZeroHedge View original post here.

In the last few days, Goldman Sachs has lost two very senior executives from the investment bank's two biggest bets on the future - consumer finance (Marcus) and wealth-management - and now, the behemoth's chief lawyer is abandoning ship.

Leaving many asking - what is going on at Goldman?

Sunday saw Omer Ismail - the head of Goldman's consumer-facing commercial bank - Marcus - jump ship to join Walmart (and Davi...



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ValueWalk

As Spring Thaw Arrives in DC, COVID Aid Remains Frozen in Congress

By Jacob Wolinsky. Originally published at ValueWalk.

As the snow clouds that have shrouded much of the United States for the past month make way for warm bouts of sunshine, it’s important to take stock of what’s still frozen solid over on Capitol Hill:

Q4 2020 hedge fund letters, conferences and more

  • COVID-19 Relief
  • A fair minimum wage
  • The confirmation proceedings of several of Biden’s Cabinet nominees – notably his nominees of color
  • The confirmation votes of Deb Haaland and Xavier Becerra to serve in the Cabinet
Nominees of Color Face Unprecedented Delay ...

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Kimble Charting Solutions

Semiconductor Stocks Looking To Trigger Bullish Breakout Signal

Courtesy of Chris Kimble

After years of underperformance, the Semiconductors Sector (SMH) turned the tables in 2016, becoming a market leader.

And today, the Semiconductors are looking to further cement that leadership role.

Today’s long-term “monthly” chart highlights the ratio of Semiconductors Sector (SMH) to Nasdaq 100 (QQQ), showing how the Semis have taken the lead in the past 5 years… as well as an important breakout test going on today!

Line (1) was support twice in the 2000s. When that failed, it le...



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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Biotech/COVID-19

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Politics

What is fascism?

 

What is fascism?

A Donald Trump supporter wears a gas mask and holds a bust of him after he and hundreds of others stormed the Capitol building on Jan. 6, 2021. Roberto Schmidt/AFP via Getty Images

Courtesy of John Broich, Case Western Reserve University

Since before Donald Trump took office, historians have debated whether he is a fascist.

As a teacher of World War II history...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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