Thursday, April 26, 2007

A look around

Almost in the spirit of the old FP newsletter, here is a quick look at some news stories etc that I think you might be interested. No time to go into great detail..sorry!

CNN/Fortune have a good interview with Lee Iacocca. In it he talks about why the Chrysler-Daimler merger failed, on his fear of private equity, and even on the workout habits of the 90 year old Kirk Kerkorian. "

While subprime lending has been under attack on all fronts of late, USA Today shows that it does have a good side as well: it gets more people into their own homes. Surprisingly to me, about 50% of home loans to minorities are so classified. However, the article also shows the problem with these loans (not everyone having access to the information) and cites an instance of a borrower expecting $1200 payments and getting $3000 payments.

In what will likely end up being the second largest takeover ever, ABN shareholders are demanding that managers take the highest bid (currently from Royal Bank) and not the slightly lower bid from Barclays. (I definitely see this one being used in classes!)

Want to run a hedge fund? You are not alone. Why? One big reason is the amount of money you can make. How does $240 million sound? For the record, DealBook also examines how much a second year IB can expect to make this year.

The NY Times governance story continues. Super short version: the Ochs-Sulzberger family owns a controlling interest and minority shareholders are upset but can't do much but complain, withhold their votes, or sell their shares.

MSNBC gives us an example of Porter's Buyer power and how it can negatively impact stock prices with an example of a small manufacturer who sells to Wal-Mart.

Backdating at Apple was back in the news as it now seems that the CFO had warned Steven Jobs that the firm might have to restate earnings if the options were backdated.

The Middle East Times reports that the money supply in Iran is growing at over 40% leading to high inflation.

Tyler at the Marginal Revolution reports that all is not as hoped at Jeffrey Sach's Millenium Villages.

And then a whole lot less seriously: The UnknownProfessor and the NY Times' Dealbook both point to the Columbia Business School's hilarious spoof of Sir Mix A Lot's "Baby Got Back" (which interesting is still played almost every night on Open House Party--yeah sort of scary that I know that!)

What they don't point you to however are some of the other hilarious videos that the Columbia Business School have done: a spoof of Brokeback Mountain, Harry Potter, last year's Every Breath You take Video, and my favorite a look at KKR's Henry Kravis as a fake South Park Episode. (Typical language appropriateness warnings are probably warranted).

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