‘Playboy’ Profits: Going Down?Plus, ‘02138’ graduates to a new publisher, Bush goes online, and Skadden makes big bucks — all in our daily industry roundup.
Jack Welch Has Some Letting Go to DoThe former GE chief won’t shut up about his old job, Andrew Cuomo goes on a subpoena rampage, Katie Couric may have a book in her, and a homeless man blunders on to some very special blueprints in our daily roundup of news from the world of finance, law, media, and real estate.
Pimp Their Jets!You thought you had problems. Try finding someone to install a mother-of-pearl ceiling on your private jet.
company town
In the End, Shouldn’t Palazzo Chupi’s Units Go to People Who Really Appreciate Them?Schnabel raises the price on his pink palace, a New York ‘Times’ journalist is jailed in ZImbabwe, and a Starbucks worker fights for her rights. And regrets? Citigroup has a few in today’s roundup of news from the fields of real estate, media, law, and finance.
Another Sad Day for SchwarzmanFINANCE
• Where has all of Steve Schwarzman’s money gone? A report saying that his fund would earn less than half of what was predicted caused Blackstone’s stock price to tumble. [NYP]
• Former Countrywide Financial, Citigroup, and Merrill Lynch execs get ready to explain to Congress why they got huge paychecks as their shareholders lost billions. [DealBook/NYT]
• Financier Carl Icahn ups his stake in Motorola. [DealBook/NYT]
white men with money
CEO Astrology: Reading the Stars for Barry Diller, John Thain, Chuck Prince, and Steve SchwarzmanMany of you know celebrity astrologer Susan Miller as the uncannily accurate predictor of your fate. You’re in good company: She’s got A-listers like Kirsten Dunst and Orlando Bloom paying her to do their charts and gets fifteen million page views a month on her Website, Astrologyzone. She’s asked to analyze the stars for actors, musicians, and starlets all the time — but when we got the chance to talk with her, we wanted to know what the future holds for a group of guys even nearer and dearer to our heart. Guys like embattled IAC CEO Barry Diller, Blackstone CEO Steven Schwarzman, ousted Citigroup CEO Chuck Prince, and Merrill Lynch newbie John Thain. After all, these people have much more power to wreak havoc in our lives if the stars choose not to shine on them. After the jump, read Miller’s uncannily prescient analysis (it would be more precise if she knew the times of day they were born) and learn what warnings these four financial powerhouses need to heed if they want to come out of 2008 on top.
company town
Sickos Behind Marketing for Airborne Were Lying to Us AllLEGAL
• Manhattan’s Tonic East restaurant will pay $35,000 to settle a lawsuit alleging that the eatery discriminated against blacks wearing hip-hop clothing and urban wear to a Super Tuesday event for Barack Obama supporters. [NYT]
• Office procrastinators might have to look for a new method for wasting time: Scrabulous is under fire. [DealBook/Alley Insider]
• Airborne, the cold-relieving drug of choice for many cube dwellers around the city, will pay $23.3 million to settle claims of false advertising. Says one critic, “Airborne is basically on overpriced, run-of-the-mill vitamin pill that’s been cleverly, but deceptively, marketed.” Holy wow. Anyone want to come together and ratchet this up to class-action against “second-grade teacher” founder Victoria Knight-McDowell? [CNN]
the sports section
Breaking: The Mets Snag Johan SantanaIf USAToday.com is to be believed, the Mets, after eating the Yankees’ dust all off-season, have just become the National League East favorites — and Omar Minaya has once again become a hero. The general manager who presided over the greatest-September-collapse-ever last season has apparently stolen Johan Santana from the Minnesota Twins and out from under the Yankees and the Red Sox. (You’ll recall, Hank Steinbrenner had been full of bluster about a potential Yankee deal for Santana for months, though lately he’s been claiming he doesn’t care.) Yes, the Mets are trading away four highly rated prospects: outfielder Carlos Gomez and pitchers Phil Humber, Deolis Guerra, and Kevin Mulvey. But odds are that two, at most, will become big-league regulars, let alone stars. Santana, on the other hand, is the best lefty in the bigs, in his prime, and exactly the ace that’s missing from the Mets’ rotation. Supposedly the only hurdle is a contract extension. Here’s betting that the Wilpon family gives Santana everything he wants, up to and including his name on the new ballpark. Heck, the way things are going on Wall Street, he’ll be worth more than Citigroup. —Chris Smith
Twins agree to deal Santana to Mets for prospects [USAT]
Earlier: Hank Steinbrenner Talks Himself, Twins Into a Tizzy
it just happened
Layoffs at Citi? We’re hearing that layoffs at Citigroup began yesterday and are continuing today. No word yet on how many heads have rolled, but earlier reports suggested the numbers could reach 20,000, and our tipster says it’s a “bloodbath.” After the losses they reported earlier this week, this can’t have been a surprise to anyone at the bank. But here’s something that must have come as a shock: Citigroup was due to give out bonuses next week, and now we’re hearing those who were canned won’t get to partake. Representatives for Citibank said they’d call us back, but they haven’t yet, so … developing!
UPDATE: Ok, so it’s true: The first round of layoffs has begun. A Citigroup spokesman declined to comment specifically on the number of people laid off in New York or in any area, but during its earnings call this week the company indicated that in the fourth quarter, the bank would shed around 4200 employees worldwide. So far, those who’ve been sacked have been primarily in markets and banking. Regarding bonuses, Citi says that they’re scheduled to be doled out in the next week or so, but again wouldn’t comment specifically on if and how the newly unemployed would be affected. Some reports have said that company-wide, employees will receive stock instead of cash. Which, as someone but we can’t remember who pointed out, is kind of like Arby’s giving you a bunch of hamburgers instead of a paycheck.
Earlier: Vikram Pandit Gets a Write-down, Foreign Capital for His Birthday
white men with money
Vikram Pandit Gets a Write-down, Foreign Capital for His BirthdayYesterday was new Citigroup honcho Vikram Pandit’s 51st birthday, and pretty much everyone forgot, since this morning he had to announce the largest quarterly loss in his bank’s history. To be sure, the $18.1 billion subprime-mortgage-related write-down is not as much as the $24 billion that was predicted over the weekend, but it was enough that it led to a fourth-quarter loss of $9.83 billion. But there was a silver lining: The bank says it has plans to raise upwards of $12.5 billion through a private securities sale, which includes $6.88 billion from Singapore. They also expect the Kuwait Investment Authority, Alwaleed bin Talal, and even former Citigroup CEO Sanford “Sandy” Weill to kick in with investments. That’s “a huge vote of confidence on [Weill’s] part,” one analyst told Reuters. “I’m surprised to see his name there.” We wonder if Pandit is surprised. Maybe today after work, he’ll go outside and Weill will be waiting for him in his red convertible. “Me?” Pandit will say. “Yeah, you,” Weill will say, and later that night they’ll share kisses over birthday cake while the Thompson Twins’ “If You Were Here” plays softly in the background.
Citigroup raising $14.5 billion [Reuters]
company town
Adriana Lima Has Really Big … EyesFASHION
• Victoria’s Secret is featuring Adriana Lima in its Super Bowl ads because of her “spectacular eyes.” Right, her eyes. [WWD]
• Diane Von Furstenberg has launched her first line of shoes. [FWD]
• John Bartlett is joining Tim Gunn at Liz Claiborne. He’ll be designing a men’s sportswear line. [Investor’s Business Daily]
company town
Richard Arens Is Having His MomentFINANCE
• Trader Richard Arens, who runs a brokerage named ABS, made a vanity trade in order to push oil past the $100/barrel milestone. We’re sure the girls at the bar will be real impressed. [MarketBeat/WSJ]
• Citigroup will likely start laying off between 5 and 10 percent of its workforce next week, cutting as many as 32,000 jobs. Merrill Lynch plans to cut around 1,600. [CNBC]
• Former E*Trade CEO Mitch Caplan, who helped load the company with the subprime loans, made off with a $11 million golden parachute. Compare that with former H&R Block chief Mark Ernst, responsible for his own big subprime losses, who took home a paltry $2.5 million. [Deal Journal/WSJ, DealBook/NYT]
company town
The ‘Times’ Touches Upon Checkbook Journalism — With Two Fingers, Of CourseMEDIA
• “OK!, the celebrity magazine, could not possibly have purchased all the attention it enjoyed in late December after it got the scoop that Jamie Lynn Spears, the younger and until then less sensational sister of the troubled pop queen Britney Spears, was three months pregnant. Or could it?” [NYT]
• Josh Stein isn’t actually leaving Gawker; Emily Gould will write for Jezebel; Choire Sicha will continue contributing columns; and recently departed Wonkette editor Ken Layne returned after just a few months off the job. Can anyone escape the tentacles of Nick Denton? [HuffPo]
• The Writers Guild plans to picket Jay Leno, Jimmy Kimmel, and Conan O’Brien as the three late-night hosts return to the air. Letterman gets off easy since he struck a deal with the writers and may get a big boost since big stars (like Robin Williams, natch) won’t have to cross the pickets to go on his show. [NYO, NYT]
company town
Some Lawyers Are SadLAW
• Know a troubled lawyer? If you work in the law, you probably do — some estimates put the ratio of depressed attorneys at 20 percent — and a few new Websites are trying help them out. [Law Blog/WSJ, WSJ]
• How not to get out of your marijuana arrest: When the judge lets you off easy, pull out a driver’s license covered in pot. [New York Law Journal]
• So just how lame was Cadwalader’s Wild Wild West holiday party last night? Wildly. [Above the Law]
company town
Howard Stern Is Quietly Gay-LovingMEDIA
• Howard Stern, good for the gays? A longtime lesbian listener calls Stern “one of the most pro-gay media personalities in the country.” [Gay.com]
• Murdoch finally gets his giant puffy hands on the Journal today at 10 a.m. The only question is just how much of the Bancroft family will try to show their noble intentions, however laughably inept, by registering a protest vote against the deal. [WSJ]
• A great new/old debate: Should Democrats go on Fox News? [Mixed Media/Portfolio, NYO]
company town
Rupert’s Fingers Already Closing Around the Heart of the ‘Journal’MEDIA
• Rupert Murdoch won’t officially take over the Journal until tomorrow, but he’s already dipped his tentacles deep into the paper. Rumor has it the Journal will dismiss two or three dozen people, to be replaced with Rupe’s cronies, and then go on a hiring spree. Oh, and apparently Murdoch briefly considered dropping “Wall Street” from the title. Tells you something about where the paper’s headed. [NYT]
• Sadly, Jane Pratt won’t actually be starring in a reality-TV show titled American Ugly, as we reported yesterday. C’mon Jane, don’t you love us? [Mixed Media/Portfolio]
• New York Post “Metro” editor Dan Colarusso, whom Col Allan praised as “a quintessential New Yorker,” walked out of the newsroom and quit yesterday. No word on why, but seems pretty quintessential to us. [Runnin’ Scared/VV]
it just happened
Vikram Pandit Is the New CEO of Citigroup!Poor Vikram Pandit! He’s been on the Citigroup throne for only a few hours, and already everyone is raining on his parade. “There was some hope that somebody with a bigger name would be chosen, so maybe from that perspective there is some disappointment,” Lee Delaporte, director of research at Dreman Value Management, told Reuters. Business Week, along with everyone else, took it upon themselves to elucidate just how much this job sucks, and CNN called his résumé “flimsy.” Well, at the very least, they know he’s not going to pull a Jimmy Cayne. “I don’t play golf. Period,” Pandit told New York in 2002. “I’m sure I’d enjoy it, but I just never got good at it.” But what do we really know about Vikram Pandit? After the jump, the salient facts of the 50-year-old CEO’s life.
company town
Pandit and Willumstad to Share the Ultimate Power?FINANCE
• The newest Citigroup rumors suggest a “tag team at the top”: Financial whiz Vikram Pandit will take over as CEO, while the more socially astute Robert Willumstad handles chairman duties. We’re just not sure “tag team” means the same thing for us as it does the Times? [DealBook/NYT]
• Morgan Stanley issued a full recession alert for the U.S. economy today in the oh-so-subtly titled “Recession Coming.” Meanwhile, a recent Journal poll of top economists puts the risk of recession at 38 percent. [Telegraph, WSJ]
• Thirtysomething Blackstone real-estate guru Jonathan Gray is getting rather comfortable in the top tier of the young establishment. [DealBook/NYT]
company town
Gucci Would Prefer a More Flattering CutFASHION
• The Gucci family is up in arms over Ridley Scott’s biopic. They fear he’ll focus on the family scandals. You know, instead of making a movie about all the boring stuff. [British Vogue]
• Helmut Lang is opening a pop-up shop in the meatpacking district. Just what we need, another fabulous place to spend our money while we are drunk. [Fashion Informer]
• Kaiser Karl rocked the U.K. with a Chanel fashion show. [WWD]
company town
Karl Rove to Finally Profit From Professional Secret-KeepingMEDIA
• Here come the NBC News pay cuts: Jeff Zucker plans to slash anywhere between $20 and $40 million, including an entire level of MSNBC management. And thanks to the writers’ strike and fears of recession, future cuts may only get worse. [NYP]
• Karl Rove may be offered $3 million for a memoir, in which we may find out how much he got in exchange for his soul. [NYP]
• At least one person thinks the press did a heckuva job in reporting the lead-up to the Iraq war — former top White House communications adviser Dan Bartlett. [NYO]
company town
For Viacom Freelancers, Neither Happiness Nor Health for ChristmasMEDIA
• Viacom screws over its army of freelancers by rolling back benefit programs drastically. Merry Christmas! [MixedMedia/Portfolio]
• The Washington Post is sending veteran reporter and inveterate partier Keith Richburg to town to take over the paper’s New York bureau. He’s well known for throwing parties with, get this, as many as 30 people! Will Manhattan will be able to handle it? [NYO]
• No holiday party at Time Inc. or the New York Times. Suckas! [Radar]
company town
Jon Stewart Suddenly Not Looking Like the Nice GuyMEDIA
• Is Jon Stewart really the only late-night host not currently covering the salaries of his laid-off, non-striking employees? [Mixed Media/Portfolio]
• The key lines from the n+1 essay that helped convinced Choire Sicha and Emily Gould to quit: “The purpose of Gawker Media was always to improve on the print publishing business model. It was never, as the content of Gawker sometimes seemed to suggest, to produce critiques of the waste that model created. The content at Gawker, like most Condé Nast titles, is a service to the advertisers. … You could say that as Gawker Media grew, from Gawker’s success, Gawker outlived the conditions for its existence.” Joshua David Stein announced his own departure, due mostly to personal loyalty, on Saturday. [n+1, Media Mob/NYO]
• Meanwhile, Portfolio’s Jeff Bercovici proves that Condé and Gawker really are at the same level: “By the way, those who feel wronged by Gawker over the years can take some satisfaction in the uniquely terrible timing of the walkout for Denton, who is pumped full of painkillers after a recent back injury. Last week, the pain became so intense he needed an ambulance to get to the hospital. As he was being loaded into the ambulance, he says, his greatest fear was that he would be spotted by someone from Gawker, which is headquartered just down the block from his home.” [Mixed Media/Portfolio]
company town
John Mack Gives Zoe Cruz the Heave-hoFINANCE
• John Mack decided to can Zoe Cruz just three weeks after naming her as a strong potential successor at Morgan Stanley. Two execs, Walid Chammah and James Gorman, will take Cruz’s place as overseeing the firm’s trading and risk operations. [NYT]
• Eddie Lampert has lost quite a bit of his luster: The star investor sometimes mentioned as the heir to Warren Buffett lost millions on a big investment in Citigroup, and the earnings debacle at Sears is only making things worse. [Deal Journal/WSJ]
• A small local council in Scotland managed to trump the Donald’s $2 billion plan to build “the world’s greatest golf course.” It was just never clear on where Trump’s hair would fit in the course. [NYP]
company town
Howard Stern Thinks Imus Will Make You HurlMEDIA
• Carson Daly is going scab! Good thing he doesn’t have any viewers, and unlike Ellen isn’t actually a member of the Writers Guild. [NYT]
• Howard Stern gets all collegiate about Don Imus’s return: “At this point, I don’t think he’s very relevant. People will tune out within a week. I defy you to listen. See how long you can keep listening. Time it. You’ll throw up. You’ll get sick. You’ll die.” [AP via Mixed Media/Portfolio]
• Knicks reporters — even bigger whiners than regular reporters. Daily News vet Frank Isola: “It used to be fun here. Now, there are some nights when you’re trying to talk your boss out of sending you here and maybe lie and tell him you’re sick or something.” [NYO]
company town
Ben Bradlee Believes in Rupert MurdochMEDIA
• Legendary Washington Post editor Ben Bradlee on Rupe’s play for the Journal: “I think Murdoch is a better journalist than the rest of you do. Well, I think because he’s smart, and he’s not going to fill it up with pussy stories. And he’s going to get good reporters. I think he does not want to fail on this.” [Radar]
• Ted Kennedy sold his memoir to Grand Central Publishing for $8 million, but the deal first has to be cleared by the Senate Ethics Committee. Something tells us the chapter on Chappaquiddick won’t be too long. [NYT]
• The Times bagged their first refugee from the Journal, though it’s not a very big catch: John Harwood, the veteran CNBC Washington correspondent and occasional contributor to the Journal, will now take his part-time work to the Gray Lady. [NYO]
company town
Kate Middleton Quits Fashion — Soon to Be Engaged?FASHION
• Princely girlfriend Kate Middleton quit her job at fashion chain Jigsaw, sparking rumors of an imminent engagement! [British Vogue]
• Daria Werbowy is doing a line of makeup for Lancôme that benefits a Brazilian children’s charity. Hot and philanthropic? Sigh. [Fashionista]
• Surprise, surprise: This holiday shopping season is gonna suck for retailers. [NYT]
white men with money
Todd Thomson Attempts to Vanquish an Already-Vanquished Chuck PrinceNow that Chuck Prince is out at Citigroup, everyone can say what they really thought of him. Todd Thomson, the former head of Citi’s wealth-management department, who was fired in January after a delicious spate of reports questioning his spending (his extravagant office was commonly referred to as the “Todd Mahal”) and his relationship with CNBC’s Money Honey Maria Bartiromo, jumps in first. Thomson told Reuters today that he suspected Prince himself orchestrated the “smear campaign” against him, because he was trying to divert attention from the issues at Citibank and also, perhaps, because he considered Thomson a rival. “There was a very significant rift between me and the now ex-CEO,” he told Reuters (click the picture to watch the video). “I’ve never been accused of having anything other than an appropriate relationship with Maria Bartiromo. And I do have an appropriate relationship with Maria Bartiromo.” Bartiromo concurs: “Something happened between Todd Thomson and Chuck Prince, and somehow I got wrapped up in it,” she told the Times the other day. “Clearly, there was another agenda going on.” An agenda! A rift! A triangle! It’s all so Shakespearean! These people have been wronged!
company town
‘Times’ Editorial Chief Andy Rosenthal, UnpluggedMEDIA
• Incoming Time Warner CEO Jeffrey Bewkes may well spin off the company’s huge cable unit, but a sale of Time Inc. looks unlikely since the small potential proceeds (and big tax penalty) would little benefit a company of Time Warner’s size. [NYT]
• Times editorial-page editor Andy Rosenthal calls all executive editors, including Bill Keller and his own father, crazy. Sweet. [Radar]
• Rupert Murdoch is confirming to all his friends he plans to bring in Times of London editor Robert Thomson to become the Journal’s publisher as part of an “Aussie invasion” in the first few months of next year. [Guardian via Media Mob/NYO]
white men with money
Goodbye, CharlieWe’ve said it before and we’ll say it again: Chuck Prince has been on our—and everyone’s—about-to-get-axed list for about three years. Look, there he is right there, in this week’s magazine, with a little axe hovering over him! It’s been especially bad the past month or so, after Citigroup announced a $6.5 billion write-down, and everyone started openly talking about how Prince sucked and should leave, even though Rick Rubin and Prince Al-Waleed bin Talal defended him. It sort of reminded us of when Lacey was on Rock of Love: Even when everyone in the house was hating Prince, when it seemed like there was just no way he was going to win, the board still had the hots for that crazy bitch and refused to kick him off the show. Of course, as with Lacey and Rock of Love, all things come to pass, and this past Saturday, the Citigroup tour ended for Prince. But we have to ask, why now, as opposed to back then? Did Stan O’Neal inspire Prince? Are the fourth quarter numbers just too heinous for him to stick around? Was he fed up, as the Wall Street Journal this morning suggests, with rassling with the mammoth bureaucracy that is Citigroup? Or: Was Prince merely afraid that if he stayed on a moment longer someone at the Journal would uncover his stash? In any case: Now that the floodgates have been opened, we’re looking at you, Cayne.
Citigroup Statement on CEO Prince [WSJ]
Related:Big Swinging Ax
in other news
Stan O’Neal: It’s the Final Countdown!What did you do this weekend? Oh, yeah? Well, Merrill Lynch CEO Stan O’Neal, whom we put on Deathwatch last week, spent the weekend negotiating his $160 million severance package. Nice payout, considering he, you know, was responsible for the biggest loss in the bank’s history. But can we just say it’s kind of amazing how fast this all happened? It was only a week ago that O’Neal announced his multi-billion-dollar write-off, and this morning, the Wall Street Journal reports he’s expected to resign this afternoon. Whereas we and the rest of the universe have had Citigroup’s Chuck Prince Deathwatch for like three years and still the dude is cozy in his Lexington Avenue throne. So, why has O’Neal gone down like a ton of bricks, while Prince is living large? Management Today suggests it might be because O’Neal is black. But we’re not so sure. (Also, not so comfortable with that headline, guys, considering O’Neal is actually a descendent of slaves.) But more likely it is just that he:
• Reported an $8 billion loss in the third quarter, which makes Chuck seem like he was being frugal for losing only $6 billion.
•Was super-competitive with Goldman Sachs, to the point where his staff avoided him during Goldman earnings because he was not nice.
• LOST $8 BILLION
• Was maybe talking to Wachovia about a merger behind the back of his board.
• Lost $8-fucking-billion
We think that about sums it up.
O’Neal Out As Merrill Reels From Loss [WSJ]
O’Neal Gets Merrill Lynched [Management Today]
Earlier: The Stan O’Neal Deathwatch
white men with money
Bank of America’s Friends: One Is Silver and the Other’s GoldEmbattled CEOs like Citigroup’s Chuck Prince, whose departure has been rumored and longed for since he announced profits were down by 60 percent last month, and Merrill Lynch’s Stan O’Neal, who the other day announced they’d be taking $8.4 billion — that bears repeating: $8.4 billion — in write-downs, ought to take a cue from Bank of America’s Kenneth Lewis, who after reporting a 32 percent drop in third-quarter results decided to do like a smart despot and start executing his cronies before the people start marching him to the gallows. Last night, Lewis announced a restructuring of the bank, which includes the “early retirement” of B of A head of investment banking R. Eugene Taylor, above, a trader for some 38 years and a longtime tennis buddy of the CEO’s. He’ll be replaced by Brian Moynihan, a bright young thing who will move from Boston to New York to take over the division. But Moynihan has never run a capital markets unit before now, and honestly, with the Red Sox in the World Series, how popular will he be in New York?
BofA’s Wall Street Retreat [WSJ]
Related: The Hanger-on [NYM]
company town
Who’s the Real Heir to Sandy Weill?FINANCE
• Citigroup’s Chuck Prince and Chase’s Jamie Dimon are battling it out to see who’s the real heir to Sandy Weill. With Citi crashing and Chase eking out a gain despite the credit crunch, it looks like Dimon, long prodigal, may be the true son. [Deal Journal/WSJ]
• Treasury Secretary Henry Paulson warned that we may see as many as one million home foreclosures before the end of the year. [NYT]
• Want to be a hedger and a do-gooder, work a trading floor and enjoy the peace of mind of a nonprofit? Join the World Bank like former Goldman exec Robert Zoellick, and you can manage $55 billion in assets. [NYT]
company town
Air America Host Randi Rhodes Mugged?MEDIA
• Air America talk-show host Randi Rhodes was assaulted on Park Avenue last night while walking her dog? [Gawker]
• Jack Shafer investigates the billionaires behind ProPublica, the newly established New York–based investigative-journalism nonprofit led by former Journal managing editor Paul Steiger. Surprise, they’re big Democratic donors. [Slate]
• Howard Kurtz took the nonstop promotion of his gossipy new book to its logical conclusion, interviewing himself on his own CNN show. [HuffPo]
company town
Topshop Signs a Lease in NYC?FASHION
• Breaking rumor alert: After months of hinting, Topshop has possibly, maybe signed a New York lease. Anglophiles and Kate Moss–ophiles, rejoice! [Fashionista]
• First he’s out as the designer of Dior Homme. Now, Hedi Slimane’s been replaced by none other than BFF Karl Lagerfeld as the photographer of the ad campaigns. Oh, cruel fashion world! [WWD]
• Giorgio Armani’s raking in the dough. The designer sold back a 5 percent stake in his company to Giorgio Armani SpA for about $110 million. [British Vogue]
real estate porn
It’s Good to Be Vikram Pandit
(To be read in the voice of Robin Leach.)
Vikram Pandit, Citigroup’s newish head of alternative investments, is apparently not so bothered that CAI profit has dropped 40 percent since he started with the division, or that the Old Lane hedge fund he sold them for around $800 million dropped 5.9 percent last month. He’s just plunked down $17.9 million for Tony Randall’s apartment in Central Park West’s Beresford Building, a ten-room spread that occupies an entire floor. According to the listing, it is a “truly superb residence,” with “superb light,” “impressive park views,” herringbone wood floors, a fireplace, coffered ceilings, a butler’s pantry, wine storage, and a private elevator. But none of that matters to Pandit, who told New York earlier this year that he never got into “the Gordon Gekko idea of Wall Street.” He just really, really loved The Odd Couple.
Citigroup’s Pandit Buys Tony Randall Co-Op for $17.9 Million [Bloomberg]
Related:
•Vikram Pandit Will Always Be Daddy’s Little Boy [12/13/07]
•Vikram Pandit is the New CEO of Citigroup! [12/11/07]
•Citigroup Shakeup Shakes Out For Pandit; [10/12/07]
in other news
Citigroup Theft Fails to Ignite Federal InvestigationIn the shadows of the glittering towers of Wall Street there lurk the little people, and from them comes the story of one Samuel Sanders, a Citigroup mailroom employee who was arrested yesterday for stealing … office supplies. Sanders thought he was being super-clever when he ordered 1,000 extra Canon toner cartridges on Citigroup’s account and resold them online, but he was no match for his eagle-eyed co-workers, who caught him stuffing them into company Fed Ex boxes. The most tragic part? The cartridges were valued at $50,000, but Sanders only got $14,500 online, making this what must be the least profitable white-collar crime ever.
Police Blotter [NYPost]
white men with money
The Beef of the Century: Jim Cramer Disses Chuck PrinceThe war of words between 50 Cent and Kanye West is yesterday’s news — but it is ON between Jim Cramer and Citigroup CEO Chuck Prince, whom Cramer thinks should be fired, like, now. Under Prince’s reign, “Citigroup has been at the cutting edge of everything that is bad,” Cramer told Farnoosh Torabi of The Street today.
the morning line
New York Is Full of Hot Air
• According to a new study, New York City is responsible for a full one percent of the nation’s greenhouse-gas emissions. A remarkable thing about the study: It was commissioned and publicized by our own mayor, who’s basing an emission-cutting program on it. [MetroNY]
• Citigroup is laying off 17,000 employees in a major slimming-down operation, and its New York headquarters is expected to be hit hard, alongside the megabank’s London and Hong Kong hubs. [NYT]
• A female teacher at the Newark Boys Chorus School is the latest inductee into the tabloid pantheon after an alleged dalliance with a student; she is charged with two counts of aggravated sexual assault and one count of child endangerment. [WNBC]
• Notoriously cash-poor Columbia University is in the money, as 92-year-old billionaire John Kluge is giving his alma mater $400 million for scholarships to the needy. Somewhat weirdly, the money will be distributed among already accepted students. [NYP]
• And in a cross-platform twist on an old story, a CBS News producer was fired for plagiarizing, “almost verbatim,” a Wall Street Journal article — which Katie Couric proceeded to read in her video blog. Those bloggers: No scruples, we’re telling you. [amNY]
company town
Steven Soderbergh’s Life Not Interrupted By Jury DutyLAW
• Director Steven Soderbergh gets out of jury duty in an Upper East Side sex-crimes trial. [NYT]
• Roger Meltzer leaves Cahill Gordon & Reindell and takes his $20 million book of business to DLA Piper, where he will be the head of corporate finance. [The American Lawyer]
• With his Anna Nicole Smith antics, Judge Larry Seidlin makes the best case against cameras in the courtroom. [Crime & Federalism via Inside Opinions]
company town
Barbarians at the Energy GridFINANCE
• A group led by Kohlberg Kravis is taking energy giant TXU private for $45 billion, besting the Blackstone record by $6 billion. But can Kravis beat Schwarzman’s party? [NYT]
• Gary Crittenden named Citigroup CFO. Job description: Fix CEO Charles Prince’s mistakes. [NYT]
• Goldman media banker Sebastian Grigg may defect to Credit Suisse. [DealBook/NYT]
gossipmonger
Maria Bartiromo Feels Pretty, Oh So PrettyBefore Maria Bartiromo was on MSNBC and flying on private jets, she lived a life out of West Side Story. Speaking of Bartiromo, Citigroup head Charles Prince may have leaked the jet-ride scandal to the media. Former Philippines first lady Imelda Marcos uploaded some unintentionally funny government-propaganda films to YouTube. Financier Henry Kravis complained that he wasn’t invited to Stephen Schwarzman’s blowout birthday party. Brad and Angelina needed beads and masks to escape from a New Orleans restaurant.
company town
Fashion T-Shirts Get PersonalFASHION
• Henry Holland’s new line of naughty tees was finally revealed. Our favorite? WHAM BAM JESSICA STAM! [Fashionista]
• GLAAD is honoring Tom Ford at its annual Media Awards. Must not have seen that creepy Vanity Fair cover. [Fashion Week Daily]
• According to Yigal Azrouel and Viktor & Rolf, le geek c’est chic once again. [FlyPaper]
company town
CNBC Backs Anchor Maria BartiromoMEDIA
• The story of the jet-fueled relationship between ex-Citigroup exec Todd Thompson and CNBC anchor Maria Bartiromo has turned from a snowball into an avalanche. [WSJ]
• Newspapers eliminated about 1,500 positions in 2006, an improvement over 2005, when 2,500 scribes took a walk. [E&P]
• Putting scratch-and-sniff ads in the Wall Street Journal actually makes us less inclined to read a newspaper. [AdAge]
company town
Yeah, We Should Have Gone to Law SchoolLAW
• Simpson Thacher & Barlett has raised first-year associate salaries from $145K to $160K. Expect the rest of the white-shoe firms to follow suit. [Above the Law]
• Lawyers dissed in Oscar nominations. Whither Atticus Finch? [Law Blog]
FASHION
Is Valentino retiring? The rumor straight from yesterday’s couture show has the designer stepping down in July. [Fashion Week Daily]
• The latest Chanel accessory: furniture. The company is commissioning a red chair inspired by a Swiss Army knife. [WWD]