peHUB Second Opinion 10.20.08
Lifestyles Of The No Longer Rich And Never Very Famous: New York Magazine published a cringe-worthy story about whiny bankers who won't be getting their bonuses this year. It's not helping the whole PR battle against Wall Street right now-why not cover the out-of-work bankers who are having one hell of a time trying to find a new job? Dealbook has a summary. Dear Chrysler, Head To Delaware: Or so that's why Peter Morici, a business professor, thinks is the best option for the Cerberus-backed auto maker, ruling out a merger with GM. However, a Chapter 11 move would wipe out Cerberus' 81% stake, something I highly doubt the turnaround firm would readily agree to. AHA!: I knew it. Henry Kravis finally admitted that private equity got his returns through quick flips and dividend recaps. Dan has already covered these speeches of guilt admission, but I wanted to point out that I desperately hope this sentiment trickles down to the middle market. The phrase "value-add" is such a cliché, regardless of whether or not its true. At least someone isn't trying to spin us. Meanwhile: Reuters outlines in greater depth the possibility of bankers apologizing to "main street" and employees as a way to re-gain trust and respect. It wouldn't hurt. Hey, it might make visits to the gym safer for Dick Fuld (just kidding, that punch looks like it was an unsubstantiated rumour).
