Top Story
Judge Rules Madoff Can Remain Out on Bail
Bernard L. Madoff, the financier accused of running a huge Ponzi scheme, can remain in his Manhattan penthouse for now.
A federal judge on Monday denied the prosecution’s request to revoke Mr. Madoff’s bail and send him to jail, saying that that government had not proved that he was a flight risk or a security risk. Instead, Mr. Madoff will remain under house arrest in his luxury apartment on the Upper East Side, guarded by private security guards paid for by his wife.
The federal magistrate judge, Ronald L. Ellis, did imposed additional bail conditions, ordering Mr. Madoff to compile an inventory of all valuable items at his home and forbidding him to transfer property. MORE »
Latest Dealbook Headlines
Mergers & Acquisitions
Stock Prices Should Not Stop Deals, M.&A. Lawyer Argues
The gyrations in the stock market should not dissuade companies from doing stock deals, Paul Schnell, a partner at the law firm Skadden Arps Slate Meagher & Flom, contends. This could actually be a good thing.
A sour economy is one of the best times for companies to link up, since they can huddle together to weather the storm. But the freeze in the credit markets has made it difficult for companies to borrow money to finance deals.
One way that companies can get around the lack of cash is to use their own stock to purchase a rival. But with stock prices depressed and trading volatile, many companies are wary about doing a deal. MORE »
Investment Banking
Citi’s Internal Memo on the Smith Barney Talks
Updated: The pending joint venture between Citigroup’s Smith Barney unit and Morgan Stanley’s brokerage arm appears to be causing some consternation among Citi’s wealth managers.
Mike Corbat, Citi’s head of global wealth management sent a note out to his troops Monday morning asking them to sit tight and apologizing for the rumors about the deal in the press. The text of the memo is after the jump. (DealBreaker broke the news on the memo, which we later confirmed with Citigroup.) MORE »
I.P.O./Offerings
I.P.O.’s May See Fewer Hedge Fund Investors
It appears that companies planning an initial public offering should be prepared to see fewer hedge funds jump in as investors.
According to The Wall Street Journal, as the hedge funds are increasingly hit with investor withdrawals, or are forced ot shutter entirely, the typical I.P.O. investor base will be more heavily toward mutual funds. MORE »
Hedge Funds
Harbinger Said to Limit Redemption Requests
Harbinger Capital Partners, the activist hedge fund, has clamped down on investors’ requests to withdraw their investments, The Financial Times reported citing two unnamed investors.
Harbinger, led by Philip Falcone, was one of the big winners of the subprime mortgage debacle, having made a killing by betting against the risky home loans. But the ensuing market turmoil threw the fund off kilter, and Harbinger ended the year down 27.1 percent, The F.T. said. MORE »
Venture Capital
CBS Pumps Up TV.com to Create a Destination
When the CBS Corporation bought CNet for $1.8 billion last year, it acquired TV.com, a Web site that had little to brag about except a valuable domain name. Now CBS is transforming it into a video destination, The New York Times’s Brian Stelter reports.
One month ago, CBS has redesigned the previously clunky site to showcase the thousands of new and old television episodes that it offers, from “CSI: Crime Scene Investigation” to “Charlie’s Angels.” And on Monday, the company is expected to announce distribution deals with PBS, Sony, MGM and Endemol that will expand its free advertising-supported online library. MORE »
Private Equity
The Oil Patch Draws Madoff’s Sons and Niece
It turns out that Bernard L. Madoff’s sons are aspiring wildcatters. Mark and Andrew Madoff, along with their cousin, Shana Madoff Swanson, started their own energy exploration and production company called Madoff Energy in 2007 in order to profit from skyrocketing energy prices.
Madoff Energy was incorporated in New York in March of 2008 and is still an active company, according to the New York Department of State.
This development emerges as government investigators scour Mr. Madoff’s business dealings to get a sense of how much money his firm has left in order to pay its burnt investors. Lawyers for the Madoff sons told Bloomberg News that Madoff Energy was a private venture and that neither Bernard Madoff nor his investment firm invested any money in the venture. MORE »
Legal
Mending the TARP
![[The Deal Professor by Steven M. Davidoff]](https://webarchive.library.unt.edu/eot2008/20090112185023im_/http://graphics8.nytimes.com/images/blogs/dealbook/deal_professor75x75.gif)
Last Friday was whack-a-mole day on the TARP plan.
It began when a copy of the report by the TARP Oversight Panel, led by Harvard Law Professor Elizabeth Warren, was given to The New York Times; the report criticized the program’s implementation. Ms. Warren then appeared on ABC’s Good Morning America and CNBC to plug the official report (PDF) and call for further accountability of the TARP program.
(I don’t know if I am jealous of Ms. Warren’s media skills, or just sad that this is where we are today: the financial crisis has become all about spin and making sure that your message is heard.) MORE »
The Closing Dinner of 2008
DealBook toasts and roasts deal-makers at the end of a tumultuous year and offers some advice for 2009. More»
Bob Rubin leaves Citi with head hung low
January 9, 2009
Is Citi's Pandit finally getting the point?
January 9, 2009
Obama shouldn't repeat TARP errors with stimulus
January 8, 2009
The Bernard Madoff Scandal
DealBook's full coverage of the Madoff scandal, perhaps the largest securities fraud case in history, with potential losses reaching $50 billion. More»
A Bonus Season Like No Other
Wall Street is wrestling with the issue of year-end payouts amid a growing outcry about compensation. More»
Can the S.E.C. Bounce Back?
The market regulator's next chair faces the task of restoring its dented reputation. More»
The Madoff Game
Try your hand at running a multibillion-dollar Ponzi scheme with Breakingviews' handy spreadsheet. More»
Tracking the Bailout
The New York Times tracks how the $700 billion Troubled Asset Relief Program is being doled out to banks, insurance companies and more. More»
Introducing the DealBook Widget
Get continuously updated headlines from DealBook, built into your blog, social network or search engine home page. More»
Revolving Door
The latest hires, promotions and departures at K.K.R., Lazard, Barclays and more. More»
The Deal Professor
A blog-within-a-blog that looks at mergers, private equity and corporate governance through a legal lens, written by Steven M. Davidoff, a professor at the University of Connecticut School of Law and a former lawyer at Shearman & Sterling. More»
The Rescue Squad
DealBook's special section looks at the people reshaping Wall Street and what the new landscape might look like. More»
The Bear Bailout
Full coverage of the proposed takeover of the troubled investment bank -- and the crisis that led to the sale. More»
DealBook for BlackBerry
Get one-click access to DealBook to read the latest deal news throughout the day. Visit mobile.nytimes.com/bbinstall directly from your BlackBerry or by sending the text message "db install" to 698698.
More information on DealBook for BlackBerry.
Live From Tulane
Coverage from the Corporate Law Institute, where the mergers and acquisitions crowd have gathered to talk shop. More»
Davos Diary 2008
Reporters and columnists for The Times and The International Herald Tribune blog from the World Economic Forum in Davos, Switzerland. More»
Special Section: Leveraged Planet
DealBook's third special section looks at the growing ties between Wall Street and the global markets from Europe and Asia in an increasingly unsettled environment for finance. More»
Go to the Special Section»
Special Section:
After the Party
What's next now that the buyout boom has gone bust, why Wall Street is playing both sides with its political donations and how young deal-makers are linked by their colleges. More»
Masters of the New Universe
In DealBook's special section of The New York Times, a guide to the deal ecosystem, a report on what lies behind the buyout boom, a profile of the hedge fund that may be the next Goldman Sachs, and more. More»
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About DealBook
DealBook is a financial news service produced by The New York Times. It is published daily, Monday-Friday, except on U.S. Market holidays and during the last week of the year. A daily digest of DealBook is also available via email, delivered before the market opens. DealBook editorial staff: Andrew Ross Sorkin, Peter Edmonston, Liza Klaussmann, Michael J. de la Merced, and Keith Leighty. Illustrations by Chris Gash.
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