Spite: Wall Street hotshots won’t be showing up for Andrew Cuomo’s birthday bash. [NY Post]

Flying Circus: Monty Python now has an official Youtube channel. [YouTube]

Dear Friends,

Many of you have been asking us about The Estée Lauder Companies Holiday press party this year. After much thought and consideration, we have decided that, at this moment in time, it is more appropriate to thank you and celebrate in another way. To express our gratitude for your support and to recognize our invaluable, deep relationships, The Estée Lauder Companies will be making a donation in your honor to Dress for Success. The mission of Dress for Success is to promote the economic independence of disadvantaged women by providing professional attire, a network of support and the career development tools to help women thrive in work and in life.

So, although we will be cancelling the party on December 1st at Nobu 57, you are very much in our hearts….

The Lauder Family and The Estée Lauder Companies

[The Daily Beast] Other Casualties of the Christmas Party Recession

The general manager of the Wichita facility had this to say:

“We regret the need to reduce employment, however, a combination of events are limiting our business options and forcing us to reduce our current employee total.”

He’d better hope that none of the employees working on the “airborne laser” project are too hurt by this…

[Yahoo Finance] Boeing to slash 800 jobs at Kansas facility

Regardless of whether or not he’s bitter (and it looks like he is) what does it say about the merits of a merger when the CEO and Chairman of one of the companies sells most of his stock before the two companies are combined? It isn’t a strong vote of confidence…

[Finviz] Tony White’s insider trading

[Yahoo Finance] Form 8-K Departure of Directors

Executive shout-outs: John “I.P.” Yeros, Curtis “No Pay” Akey, Jeff “Drill-whore” Fillmore

[Idaho Business Review] MPC decline leads to bankruptcy

[DocuDrama] TiVo latest valley company to announce layoffs

How fucked does Wall Street think they are? Their market cap is a pathetic $366,000 even though they have $8 million in the bank and 0 debt.

XTL’s CEO, Ron Bentsur, had this to say:

“We are all very disappointed with the results of the study. We will devote the next few days to further analyze the data and decide on the appropriate course of action for the Bicifadine program, and for the company.”

Best of luck selling, Ron.

[Yahoo Finance] XTL Biopharma plunges on Bicifadine trial failure

“We will continue to monitor the demand environment and make the necessary adjustments to weather this downturn, help optimize our profitability, maintain our strategic focus and strengthen our competitive position.”

Nice attitude, Rick. What are a few hundred measly employees when it comes to “optimizing your profitability?”

[Barron's] KLA-Tencor Cutting Workforce By 15%

[CNN] Oppenheimer target of fraud suit

Refresh to see the latest updates at the bottom of the page

11:55 am: Testing, testing… 1-2 syllabus

12:00 pm: Waiting on the gavel now… Senators do like to make a fashionably late entrance.

12:01 pm: Chris Dodd has dropped the gavel, and is planning on making opening comments.

12:03 pm: “Hundreds of thousands of people would lose their jobs… There are those who believe that the partial or total collapse would… take down huge swaths of the nation’s economy with it.”

12:05 pm: “They’ve faced 21st century issues with 20th century thinking…”

12:06 pm: “I support efforts to relieve this industry… We must do all we can to ensure stability.” Dodd then hints that the “relief” should be tied to environmental conditions.

12:09 pm: Dodd turns it over to Alabama’s Richard Shelby for an introductory statement.

12:11 pm: “We’re about to employ a ready-fire-aim strategy.” Shelby says auto as two words: aw-toe.

12:12 pm: Smack-talk: “Even when the firms were making record sales, they were losing money.”

12:14 pm: “How is the money going to be used?… Are we in the Senate being asked to… perpetuate a market failure?”

12:15 pm: South Dakota’s Tim Johnson is unintelligible.

12:19 pm: Senator Mike Enzi: “I ask my colleagues to resist the illusions of pending disaster.”

12:21 pm: Senator Charles Schumer: “Bankruptcy of a major company at this time would have… major effects.”

12:25 pm: Senator Jim Bunning: “The (bailout) does not address the long-term viability of the domestic manufacturing industry… These three companies cannot survive at their current size… Major changes are needed if federal dollars are made available.”

12:30 pm: Senator Tom Carper just made his opening statement… Now it’s Liddy Dole’s turn.

12:34 pm: Senator Dole: “We need to end the practice of private rewards for public risk.”

12:36 pm: Senator Bob Menendez: “We need strings attached.”

12:38 pm: Senator Bob Corker: “I’d like for each of you (to explain) why Chapter 11 doesn’t work.”

12:40 pm: Senator Sherrod Brown: “The quickest way to turn this recession into a depression is to let these companies founder… If you need evidence that Detroit ‘gets it’ look at last year’s labor agreement… We must be together to rebuild a strong manufacturing sector… We need to build real things and that’s what Detroit does.”

12:46 pm: Senator Wayne Allard: “(Other automakers) will have to compete against their own tax dollars if we subsidize… one sector of the automobile industry.”

12:48 pm: Senator Bob Casey: “What are the consequences of doing nothing?… Potentially millions of jobs are at risk across America… Recession could become a depression… But (automakers) you have to change.”

12:55 pm: Senator Robert Bennett: “I’m in favor of providing them the cash that will allow them to continue… I’m not quite sure about bankruptcy as the way to accomplish this… But I believe we have to do something to see to it that they survive while they try to turn this multi-billion-dollar-industry into a smaller billion-dollar-industry.”

1:00 pm: Senator Jon Tester: “Tell us how you’re going to change the business model.”

1:05 pm: Senator Evan Bayh: “This is not the time to add greater instability to this situation… We have a model to build off of — in 1979 the Chrysler Corp… [Was a] win-win-win situation”

1:07 pm: Senator Mike Crapo will be the last to give an opening statement before testimony begins. Zzzzzzzzzzz.

1:13 pm: Testimony from Senator Debbie Stabenow (from Michigan) begins…

1:13 pm: “The global financial crisis was not caused by the American auto industry.”

1:17 pm: Senator Stabenow (who sounds like she’s on the verge of tears) is rattling off the industries that the U.S. auto sector touches… Now she’s bringing in defense and the military.

1:21 pm: “The reality is, we have our companies competing against countries.”

Is she kidding? : “Despite the challenges, we have managed to see the American manufacturers remain competitive until the financial downturn.”

1:23 pm: “Bankruptcy would put a disastrous burden on the American taxpayers… Bankruptcy would… lead to a government tax loss of $108 billion over three years.”

1:25 pm: “We don’t need to be told that there needs to be restructuring, or downsizing, or closings of plants… We don’t have to say to the workers that they should restructure in terms of pay cuts… The new contracts with the UAW cut paychecks by 50%.”

Senator Stabenow sticks out like a sore thumb:

1:28 pm: Witnesses are being introduced. UAW’s President, Ford’s President, Chrysler’s CEO, and GM’s CEO.

1:33 pm: Ron Gettelfinger, the United Automobile Workers Union president has begun his testimony.

1:36 pm: Mr. Gettelfinger is listing the concessions that the UAW has made to the automakers.

1:37 pm: “There are a lot of misconceptions about our union… We have lost 47,000 workers at General Motors… We recognize that in order for these companies to be competitive, we’ve had to take public heat… And we’re willing to work with these companies to make sure consumers get the best quality product that we can deliver.”

1:39 pm: Alan Mulally, the President of Ford has begun his opening statement.

1:40 pm: “Few companies have restructured more aggressively. We’re delivering the best and amoung the best fuel economy with all new cars… We were profitable in the first quarter of this year, and well on our way to long-term profitability when the credit crisis hit.”

1:41 pm: “We would repay [the loans] with interest… This is really an important industry. It is the core of our economy.”

1:44 pm: Chrysler’s CEO, Robert Nardelli, has begun his testimony.

1:47 pm: “[Bankruptcy] would be a more costly solution than the one we have proposed… That’s why as an industry we’re requesting $25 billion dollars of working capital… We are willing to provide transparency.”

1:50 pm: “With immediate financial assistance, the lifeblood of our economy will continue to grow… We are and will continue to be the quintessential American car company.”

1:53 pm: GM’s CEO, Rick Wagoner, has begun his testimony.

1:54 pm: “We expect to reduce [costs] by 35% before 2011… We spent $1.3 billion dollars (on pensions and health-care) in the last three years.”

1:55 pm: “On the product side we’re building cars that people really want to buy… We’ll have nine hybrids next year.”

1:56 pm: “The industry and the economy… threatens not only GM’s turnaround, but our real survival.”

1:57 pm: “What exposes us to failure now is not our product lineup, is not our business plan… what exposes us to failure is the financial crisis.”

1:58 pm: “The costs [of failure] would be catastrophic… That’s why this is about a lot more than Detroit. It’s about saving the U.S. economy from financial collapse… You can help us through this crisis, in return we will repay the taxpayers faith.”

1:59 pm: Peter Morici, an economist has begun his testimony against the bailout.

2:01 pm: “The Detroit three are rapidly running out of cash… It is my belief that it would be better to let them [file for Chapter 11 bankruptcy]… Circumstances are different than in 1979 when Chrysler received government assistance.”

2:02 pm: “There is no such thing as competitive enough in the automobile industry… Sooner or later one of the big three will march down that path (bankruptcy)… If things are so dire… is $25 billion enough?”

2:04 pm: “If chapter 11 is put off, the industry will continue to shrink… Sooner or later the industry will have to bring its cost structure down to that of its competitors…”

2:05 pm: “It is high time that we take [trade policy imperatives] quite seriously.”

2:07 pm: “There are things we can do to provide incentives for Americans to buy fuel incentive cars… but I don’t think giving these companies $25 billion right now is a good idea.”

2:08 pm: Question and answer period has begun.

2:10 pm: What are the financial implications of bankruptcy? Wagoner says that manufacturing and financing would be affected. Pensions and health-care would be affected as well as supplier payments. Also state and local government would be affected?

Nardelli says that equipment manufacturers and suppliers would be hurt to the tune of $7-$8 billion.

2:14 pm: Ron Gettelfinger (UAW): “If one of these three companies was to go bankrupt, it would probably take the other two with it.”

2:19 pm: Rick Wagoner: “We’re all going to have to adapt to a period of much more realistic credit terms.”

2:20 pm: Senator Dodd chides Wagoner that GM was the one providing credit to people.

2:24 pm: Peter Morici (Economist): “America is over-car-red the same way we’re over-housed… I drive a Ford truck” (laughter because he’s sitting next to GM CEO Wagoner)

2:25 pm: “Some kind of restructuring has got to happen.”

2:28 pm: Senator Richard Shelby asks what the companies will do with the $25 billion specifically, and how they would pay this back.

2:29 pm: Rick Wagoner (GM) says his company isn’t making money because of costs of restructuring, and that the market for credit has plunged.

2:30 pm: Rick Wagoner: “We believe that the business model that we have structured today, that we can be profitable.”

2:31 pm: Senator Shelby: “Are you making money yet?”

2:31 pm: Alan Mulally (Ford): “We made money in the first quarter before the crisis… We’re going to come out of this a turbo machine.”

[End of Live Coverage] Watch the video on C-Span

17 November 2008

CONFIDENTIAL
Memo to Employees

These are extraordinary times. Markets and economic conditions are exceptionally challenging. We are experiencing sweeping changes to the global financial landscape. A wide variety of businesses across industries and regions have reported weak third quarter results and even weaker expectations for fourth quarter 2008 and for 2009. BlackRock is not immune.

Times like these require fiscal discipline; we expect it of the companies in which we invest and we must expect it of ourselves. The Executive and Operating Committees have worked together to identify ways to streamline our processes, simplify our platform, enhance our operating efficiency and focus our strategic investments for the future. We have targeted ways to reduce general and administrative expenses, identified reengineering opportunities, and considered resource allocations given our outlook for various businesses.

In connection with these efforts, expense policies and business practices will be tightened. However, it was not possible to reduce costs and achieve reengineering efficiencies to the extent necessary without considering cuts in staffing. Some positions across the firm will be eliminated, resulting in some of our co-workers, colleagues and friends leaving BlackRock. These decisions, which will be communicated this week, are very difficult. We will work with everyone affected to help them with the transition.

During the planning process, each business presented their business strategies and critical client trends to the Executive Committee. The long-term trends remain consistent with our “5 in 5,” and were key considerations in the selection of a narrower set of strategic initiatives for 2009. These include supporting growth in our financial markets advisory business (FMA), continuing to build our multi asset portfolio strategies (MAPS) effort, and establishing a dedicated sales capability for the rapidly expanding independent channel in U.S. retail. We will also continue to enhance our fixed income business, invest in RQA, and build-out the corporate MIS capabilities necessary to support our firm.

We remain optimistic and enthusiastic about BlackRock’s position in the industry and potential for future growth. Over the past two years, both our business and our employee base have grown considerably. We are in a better position than most as we consider how to respond to the market-driven contraction in our business without compromising our ability to deliver exceptional products and services to our clients. Our clients need more help, and we have the talent, the tools, and the responsibility to meet those needs. Our business model is not broken. To the contrary, we believe that our “One BlackRock” platform — our ability to bring together the full range of our global capabilities on behalf of our clients — remains a powerful differentiator and positions us uniquely well for the opportunities ahead.

Difficult times are the true test of one’s character, individually and organizationally. We trust that each of us will treat our clients, colleagues and competitors professionally and respectfully. We are confident that together we will continue to navigate well by being thoughtful and responsive to the needs of our clients and shareholders, and that BlackRock will emerge from this cycle even stronger. Thank you all for your contributions to those efforts.

[Dealbreaker] Layoffs Watch ‘08: BlackRock

The fire-sale marks a sour end for the nationally-known clothing brand that boasted Sarah Jessica Parker and Serena Venus Williams as high-profile clients. We bid farewell with a picture of one of their empty parking lots:

[WSJ] Apparel Chain Faces Closure Three Months After Rescue

A cowardly anonymous analyst had this to say about the deal:

“From a strategic perspective there’s not much change, but it was a desperate move by Ford, selling at this low price, and Mazda had no choice but to buy back part of it because they couldn’t find enough buyers.”

[Reuters] Ford abandons Mazda control with 20 percent stake sale

[CNN] Pepsi Bottling to slash 3,000 jobs

To: all yahoos
From: Jerry
Subject: update

yahoos -

i wanted to address all of you on the news we’ve just announced. the board of directors and I have agreed to initiate a succession process for the ceo role of yahoo!. roy bostock, our chairman of the board, is leading the effort to identify and assess potential candidates for consideration by the full board. the board will be evaluating and considering both internal and external candidates and has retained heidrick and struggles to help in this effort.

i will be participating in the search for my successor, and i will continue as ceo until the board selects a new ceo. once a successor is named, i will return to my previous role as chief yahoo and continue to serve as a director on the board.

last june, i accepted the board’s request that i assume the ceo role to restructure and reposition the company as a whole in order to more effectively meet the fast-changing needs of both users and partners. since taking on the ceo role, i have had an ongoing dialogue with the board about succession timing. thanks in large measure to your tireless efforts, we have created a more open, competitive yahoo! and we believe the time is now right to transition to a new ceo who can take the company to the next level.

despite the external environment we face, the fact remains that yahoo! is now a significantly different company that is stronger in many ways than it was just 18 months ago. this only makes it all the more essential that we manage this opportunity to leverage the progress up to this point as effectively as possible. i strongly believe that having transformed our platform and better aligned costs and revenues, we have a unique window for the right ceo to take ownership over the next wave of mission-critical decisions facing the company.

all of you know that I have always, and will always bleed purple. i will always do what I think is right for this great company. while this step will be an adjustment for all of us, i know it’s the right one. i look forward to updating you on this process as soon as the board has developments to share, and will continue to do everything i can to make yahoo! fulfill its full potential.

thank you,
jerry

[Valleywag] Jerry Yang’s memo to Yahoo staff on his exit