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Telegraph.com.UK - Sources close to Mrs Lagarde said that she had called the US Treasury Secretary - a close personal friend - well before the ailing bank’s collapse imploring him to act, but he chose not to.
Lehman Brothers’ demise sparked the biggest shake-up on Wall Street in decades and sent shock waves around the world that triggered a massive bailout plan in Britain and Europe.
Mrs Lagarde - attributed with playing a key role in brokering a bailout deal among G7 finance ministers in Washington last weekend - dubbed Mr Paulson’s decision to let the bank go under "horrendous" as it triggered panic in markets and banks to the brink of a 1929-style financial meltdown.
In an interview with the Daily Telegraph, she warned that the world’s hedge funds could be the next institutions to be hit by the financial turmoil.
Reuters - Hedge funds made history in September but not the kind most managers want to remember.
Among the biggest losers, as last month’s returns are slowly revealed to investors, are some of the $1.9 trillion hedge fund industry’s most prominent and most successful names.
Dan Loeb, an activist investor known for his sharply worded letters to poorly performing companies, saw his Third Point Offshore fund tumble 11 percent in September, people familiar with the numbers said on Thursday.
In the first nine months the fund lost 17.86 percent.
Lee Ainslie, who once worked for industry legend Julian Robertson, saw his Maverick Fund lose 19.47 percent in September, leaving the fund down 21.24 percent for the year.
MSN MoneyCentral - Paulson & Co, a prominent New York hedge fund, will weigh buying shares or convertible bonds in banks and other financial institutions that need capital, the Financial Times reported on its website on Sunday.
John Paulson, its founder, remained bearish on the economy and the financial sector, but would consider taking positions in the sector as prices fall to his target levels, the paper reported, citing two unnamed investors who were on a Paulson conference call for clients last week.
Paulson is to launch its Recovery fund on October 1, the paper said.
Wall Street Journal - Eager to keep one of its key employees, publicly traded Fortress Investment Group LLC has lavished a $300 million share grant on one of its star traders, 38-year-old Adam Levinson.
Mr. Levinson, who also is the chief investment officer of one the firm’s main funds, joins the private-equity and hedge-fund giant’s five other controlling shareholders, who together hold some $3 billion of company stock. These executives haven’t sold any shares since the company went public in 2007 and own 77% of the business.
Fortress has struggled mightily in its 18 months as a public company, losing two-thirds of its peak value amid brutal markets for financial firms.
Mr. Levinson’s windfall — which was alluded to in a May filing with the Securities and Exchange Commission — highlights the quandary of publicly traded private-investment outfits. On the one hand, they must compensate elite traders and dealmakers richly enough so they don’t leave for a competitor or start their own firms. The heads of large private hedge funds such as Citadel Investment Group and Paulson & Co. can — and have — earned billions of dollars in a single year.
CityWire.co.uk- Punch-drunk investors have – perhaps a little predictably – interpreted the news as Paulson preparing to call the bottom of the market. And it is certainly an interesting development from the man widely considered to be the ‘greatest’ financial speculator since George Soros.
Some words of caution, though. All of today’s reports explicitly stress that the launch of the fund is not yet a forgone conclusion – a deliberate message that almost certainly emanates from the great man himself.
Like many others before him, Paulson appears to be using the media to test investor appetite for such a fund (so much cheaper and quicker than marketing or one-to-one meetings).
Reuters- Bear Stearns Cos plans to turn over documents to securities regulators showing that financial giants like Goldman Sachs Group, Citadel Investment Group and Paulson & Co cut their exposure to the securities firm before its collapse, the Wall Street Journal reported on Wednesday.
The Securities and Exchange Commission (SEC), as part of an inquiry into events surrounding the implosion of Bear Stearns in March, has sought and will examine these trading records, people familiar with the matter told the newspaper.
The SEC is expected to use the data to determine whether any trading activity was improperly coordinated, constituted manipulation or otherwise contributed to Bear Stearns’ collapse, the report said.