Wow! Judge Rules Ezra Merkin and His Three Hedge Funds Not Liable to Investors for Placing $ With Madoff.

As we all know, "The Madoff Tragedy " has taken on a life of it's own . Lawyers getting richer, investors suing and following the money trail , SEC Investigations, Bankruptcy Court, Federal Court, State Court and thousands of Trustee-initiated lawsuits worldwide. Probably will continue for years to come!
In the latest of a series of high-impact decisions, Judge Deborah A. Batts ruled that Ezra Merkin and three of his "feeder hedge funds "(Moe, Larry and Curly) could not be held liable for investing their investors' money with Madoff . While he may have been imprudent , it does not amount to legal responsibility to his investors. Hmm !
Now correct me if I'm wrong , but shouldn't a hedge fund have a responsibility to its investors to be prudent when checking out billions of dollars of possible investments? Didn't Merkin have a relationship with Madoff? Doesn't it fail the smell test?
If you ask me, if Merkin is off the hook, then Wilpon's should be doubly(not Doubleday silly) off the hook ? Don't you think? Anyway, as we all know and expect the case is on its way to the Second Circuit Court of Appeals for final determination...Because Oz has not spoken yet! Stay tuned.

DSK, Playing the "Diplomatic Immunity Card"....Will it Work....?

Diplomatic Immunity is a form of legal immunity and a policy held between governments that ensures that diplomats are given safe passage and are considered not susceptible to lawsuit or prosecution under the host country's laws . It is governed by the Vienna Convention on Diplomatic Relations(1961). It covers a wide variety of civil, criminal and administraive actions. Basically,allows diplomats to come and go as they fu_in please. You may even remember in one of the " Mel Gibson movies " , the South African bad guy kept on taunting Mel Gibson by slyly stating "Diplomatic Immunity ". Until Mel Gibson flattened him!
Ok , so here's the "DSK Rub". DSK as the former IMF Chief had travel documents "marked DIPLOMATIC " . So in response to the hotel maid's lawsuit , DSK's attorneys have made a motion to dismiss the case asserting "diplomatic immunity ". Interesting how this issue didn't come up in the failed criminal prosecution.
Anyway, DSK argues immunity and of course the plaintiff argues he wasn't a diplomat and moreover he was on "personal business " so any immunity wouldn't apply . No lose situation for DSK; Just gives him an extra bite at the apple in trying to get the action derailed!
Look anyone with a good attorney would play the same card. Remember, we're just in the early rounds.

Chevron Case; Second Circuit Puts Their Foot Down, Say Sayonara to Judge Kaplan's Global Injunction On Enforcing $18 Billion Judgment in Ecuador.

The Second Circuit Federal Court of Appeals in Manhattan didn't take long. Just three days after hearing oral argument on Judge Kaplan's "global injunction " relating to enforcement of the Ecuador judgment against Chevron, a three judge panel vacated the injunction and effectively cancelled the November trial before Judge Kaplan.
With the injunction vacated plaintiffs would be free to enforce the judment. But James Tyrell, plaintiff's lead appellate counsel promised the "Second Circuit " that plaintiffs would await enforcement until an intermediate appellate court in Ecuador has reviewed the judgment.
For now, " Oz has spoken " !

Wall Street; Hey Investors Don't Panic, Your Actions Will Dictate Prices/Indexes.

Yesterday was a brutal day in the market. Fears that we're sinking further into a recession as usual fueled a "sell-off " worldwide . Lo and behold, the market fu__in tanked! Haven't stock market inestors (players ) learned after all these years ? Guess not.
Well guys(and gals) wake up! The stock market is like " an animal sensing fear in you"...If they see you're scared they might attack. Well, once the market senses investor concern, fear then panic and sell off , there is nothing really (practically) that can be done to stop the "free-fall". The day (2 days or a week) has to run it's course. Investors then have to lick their wounds, and decide if they have the stomach to stay in the market.
Like today; things quieted down after yesterday and as of 10:05 today the market is down a few points. No magical formula. Maybe just a more pragmatic approach to things today.
So ask yourself,"should I stay or should I go now?If you say that you are mine...."
Good luck!

Raj Rajaratnam Must Be Shi__ing A Brick; Two Lesser Defendants ...One Sentenced to Ten Years and the Other Sentenced to Four Years Respectively!

Notorious "inside trading magnate" Raj Rajaratnam about three weeks from being sentenced to a long "Federal Lockup", is obviously keeping his eye on other sentences for convicted " inside traders ". In Raj's case the Government is seeking a 24 year sentence.
Well yesterday Zvi Goffer was sentenced to 10 years and Winifred Jiau was sentenced to four years.Did someone say "sending a message"? Neither case matched the extent of "illegal profiteering " that we saw in Raj Rajaratnam's case .(see Galleon Hedge Fund Case)
So Raj, be prepared for the worst, pray you can remain free on bail during the appeal ..and that your army of attorneys can identify and pursue reversible error from the trial record while perfecting your appeal. And Raj, if I were you I'd party hardy for the next weeks.
And all for what ? You had plenty of money already !

Celebrity Lawsuits: Don't Feel Sorry for Charlie Sheen...He's Settling His" 2 and a Half Men " Lawsuit ....$25 Million Upfront Plus More!

Reports have it that Charley Sheen has settled his "2 and a Half Men " lawsuit for $25 million upfront plus future fees from syndication, etc...Package reportedly could be worth $100 million. Not that "Charley old boy "needed the cash anyway.
His new , congenial self may be a sign that his life is on the mend. Wouldn't it be interesting....Nah, forget I mentioned it...But wouldn't it be interesting , if somehow, some way in the promotional coup of alltime ......He, .. He ....ended up back on the show!..
Stranger things have happened. You heard it here first. Stay tuned.

Mariano Rivera(Mo) Ties Trevor Hoffman With 601 Saves...Just Another Day or Two and He'll Be King!

Mariano Rivera , Old Number 42 is still going strong ! On Saturday, he tied Trevor Hoffman for most all-time career saves, when he "racked up" #601. He undoubtedly will get number 602 in the next week unless the Yanks get blown out every night or they put a licking on their opponents! Jorge Posada has had the great pleasure of being on the receiving end of 368 of those saves.
When Mariano reaches "save #602 " he will of course be the all-time saves leader , but the whole world has known for a long time that "Mo" is and has been the greatest closer in the history of professional baseball. No ifs, ands or buts! Five World Series rings, 601 saves, all-time leader in post-season saves, numerous all star selections, perennially saves 40 games, has a superhuman strike to ball ratio, has uncanny command ...Not to mention he is probably the career leader in bats broken. Nothing more to say, is there? Oh yes, he's a great teammate and a superclassy individual.
Mo thanks for the memories...But we aint done yet!

UBS Trader Arrested(not charged) in Alleged $2 Billion in Losses Via "Unauthorized Trades"....Who are You Fu__in Kidding?

I got to be honest with you I am laughing(LMBO,LMAO,LOL) my ass off today on the latest "trading scandal " involving a UBS European trader at it's Delta One Desk who was arrested (Did someone say 19th Century Debtors Jail?) allegedly for causing $2 billion in losses on unauthorized trades. Now keep in mind Kweku Adoboli was a director and UBS relied upon him to create profits in "EFT'S", in a hot corner of the market. Risky stuff!
So why am I laughing ? Because I like to see big, Swiss banks "take it on the chin"? Of course not(well a little).No , I'm laughing because these greedy international investment banks worship the almighty Dollar, Euro and Yen, give successful traders carte blanche and as soon as there are losses they yell and scream "unauthorized trade ", "unauthorized trade"! Why, because they need a scapegoat...That's why.
So let's call a spade a spade... UBS , things were good while they lasted...They blew up! You knew what you were getting into. Now leave YOUR "disgraced trader " alone..Take it on the chin and move on to the next risky venture.
This is market analyst Steve Goldman signing off.

Dow Jones, Around and Around We Go........

Five minutes ago the Dow was up to 11,354 . Second straight day of gains. So really, what does it all mean? Temporary solace? A good feeling ? Paper profits ? I don't know, satisfaction that " the market " isn't tanking? All of these things, none of these things . What do you think?
I do know one thing...If my memory serves me correctly, we're just about where we were 3-4 weeks ago on that "bleak Monday " after S&P downgraded . Go figure .
Anyway, another day , another dollar.
One last thought, let's not put too much emphasis on the stability of Greece's economy going forward. We got our own fish to fry.
This has been your market analyst Steve Goldman. Have a good day!

Remember Carl Oglesby, Leader of Students for a Democratic Society...He Passed at Age 76 .

The 1960's, the Viet Nam War, LSD, "Student Demonstrations ", "sit-ins", " free love ", civil rights, JFK, radicals, liberals, communists, anti-war, "hawks", "doves "...What a fu__in decade! To experience all this first-hand must have been quite a ride! Never a dull day.
Berkley, Kent State, Columbia. And remember the Students for a Democratic Society ? Charles Oglesby, was born to poor white southerners who came north to Ohio to seek better economic opportunity. He earned his bachelor's degree at Michigan and was working for the Bendix Corp. with a wife and three kids .
In the mid 1960's, after being recruited by the Students for a Democratic Society , he sold everything and joined their public "anti-war campaign ". He soon was elected president of the group, became a well-respected orator and under his leadership membership grew to 100,000. Amazingly, despite his dedication he was expelled by a radical wing of the group who later became the Weatherman Underground.
Oglesby went on to become an author, songwriter, lecturer and adjunct college professor. His memoir of The 1960's Antiwar Movement, "Ravens in the Storm " was published in 2008. He was one of the most eloquent speakers of his era.
Like so many from the "60's " he gave his blood , sweat, brains and soul to the " movement". It's amazing how many intelligent, high energy , committed individuals there were who put their lives and careers on the line every day day for what they believed in. Great stuff!

Attica, Forty Years Since the Uprising....Did Governor Rockefeller Blow It?

September 13th, 2011 marks the 40 year anniversary of the "Attica Riots " . Yes, 1971 , can you believe it ? Attica, a maximum security correctional facility in western New York was the scene of a major revolt and taking of guards as hostages by mostly African American inmates who were protesting conditions, racism and the "grievance process " at Attica .
Recently , taped phone conversations between Governor Rockefeller and then President Nixon were discovered discussing the Attica siege . On tape, Rockefeller refused to go to Attica to negotiate to put an end to the " hostage crisis", (against advice from his inner circle) but instead sent in a small army of 1000 armed law enforcers to quell the uprising.
When the smoke cleared , 29 inmates were dead and 10 guards were killed. Order was restored but at a heavy toll to all. Additionally, The State of New York paid out about $20 million to settle related litigation . Pardons and a commutation of sentence were subsequently handed out by Governor Hugh Carey.
At the end of the day, many lost lives that could have been saved and New York State and Nelson Rockefeller were forever scarred by this tragic series of events. Your thoughts?

NFL Football ; Jets Win Opener in a Thriller!

This is a different Jets team. Five years ago, different team, different coach, different mindset ! The "Old Jets " lose last night"s game...The current Jets find a way to win it. Not only that, this team despite getting down early and clawing their way back believed they could and would win it.
A lot of contributors last night..Sanchez, Burress, Tomlinson, "Special Teams", Revis..The Defense. Excellent win, important win ...exciting win ! Still, a long , long way to go.
Now back to the Yanks!

Tennis Anyone ? The Rain, Delays, etc...But We Could Be in for a Classic Finish to the Tourney!

Rain, delays , postponements, more rain, wasted tickets, late night sessions and unhappy players. That has been the theme of this year's U.S. Open . But all is not lost ! We are now blessed with some unbelievable matchups.
In one semi-final(Saturday) we have Federer vs. Djokovic. Does it get any better? Roger has to be a sentimental crowd favorite against super-human Djokovich! The quarterfinal matches remaining (today) ,Isner (American) against Brit Andy Murray should be tantalizing. The other quarter..What a beaut! American , Andy Roddick vs. Rafi Nadal. Wow! Could be two five setters. And don't forget the woman's side either.Serena against Wozniacki...great stuff.
So if our good friend, "Mother(Hey you're a mother!) Nature " can cooperate a bit, we have have "one for the ages"..Oh, and don't forget your raincoat, hat and umbrella.
And to you U.S. Open crowd...Show some respect to the players. A three hundred dollar ticket doesn't entitle you to conduct "happy hour " in the stands.

Enjoy and be safe!

Puerto Rico ; Your Police Department is Like a Third World Country's Force!

Puert Rico, the home to Isla Verde, Old San Juan, Vieques, Culebra, beautiful beaches and great resorts is just 3 hours and 15 minutes by plane from New York. P.R. has some of the best golf courses in the Western Hemisphere. The Commonwealth of Puerto Rico , which is actually an unicorporated territory of the United States , has often been referred to as the 51st state . We've had some of our best and most memorable vacations there.
But all is not paradise on this island east of the Dominican Republic. In a scathing report regarding Puerto Rico's police force (the second largest in the United States)the Justice Department is accusing The Puerto Rico Police Department "of a profound and longstanding pattern of civil rights violations and other illegal practices that have left it broken in a number of critical and fundamental respects".
The Police Department's is accused of " systematically using deadly or excessive force when little or no force was necessary".Beatings seem to be handed out routinely, unarmed civilians have been murdered, corruption is widespread and misconduct is high. "More P.R.P.D. officers are involved in criminal activity than any other major law enforcement agency in the country".
It's shameful and fightening all at once. How could the residents of Puerto Rico feel safe, protected and secure, and confident that in a time of strife they will be properly taken care of. Answer-They can't!
The daunting task of overhauling the force and it's infra-structure falls in the lap of Governor Luis G. Fortuno. In response to this report he must act quickly, decisively and intelligently. No foot dragging will be tolerated.He can look for guidance to the L.A. Police Department which went from being a "rogue department " to a model police force.
All I can say Governor Fortuno, is it's best that you not waste time...Frankly, the Justice Department will have no patience with this crisis!

DSK; My Summer in New York...

Dear Mom;
I wanted to let you know about my event-filled summer in New York. First, I stayed in a hotel where I had it "maid ". After leaving the hotel quite abruptly and after lunch with my dear daughter , I raced to the airport. While waiting for my plane to take off a nice man from the Police Department even came to the airport to bring me my cell phone I had misplaced and then took me to a New York City Landmark which I learned has some of the " most famous bars in town"; You guessed it, Rikers Island. There I had my own private room, but no housekeeper. Darn it.
After your dear daughter-inlaw paid $5 million to spring me from "Club Rikers", we decided to stay in Manhattan for a while .I have to say the City has gotten quite pricey...it cost us about $200,000 a month to rent a place....and what a rip-off...it had a an all-male cleaning staff. Go figure.
We did get to order in "First Wok" almost every night though,(I fell in love with the "Polynesian Delight "dish) which we enjoyed with $2,000 bottles of French Wine . How I dread Calfornia Merlots..Can't drink em since we saw that movie "Sideways" on the way back from Paris one year.
We were having such a grand time in Manhattan until this lady they call "the victim" started to to talk and tell lie after lie. I asked someone "how do you know when she is lying"? They answered "when you see her lips move"! Oh well, that ruined everything. Because next thing I know we're out of our apartment, Ann gets her $5 million back and we're on a plane back to our beloved France.
I'm exhausted , but I can state with absolute honesty, not one day passed when I didn't blow-dry my hair. While I had quite a summer in New York, I think I'll stay put in Grand Old Paris for a while where I understand they may be "erectING" a statue of me .(no "blow"-dryer , but what can I say). It's good to be home where I'm understood.
Well it's getting late mother...Vive la France!
With love, your son DSK.

Goldman Archives; What Individual in Brooklyn in 1966 Enlisted the Help of the Gallo Brothers to Calm Racial Tensions?

Frank Arricale , best remembered for enlisting the assistance of the "Gallo Brothers " during the summer of 1966 to try to ease racial tensions in Brooklyn, died on August 26 at the age of 81. For those of you who don't know or don't remember ,Mr. Arricale was the Director of New York City's Youth Board ,who in 1966 when racial tensions flared reached out to ethnic leaders in an effort to avoid violence and rioting.
In an extremely controversial move, he reached out to Mafia leaders Albert and Larry Gallo. The "Gallo's" agreed to help. They "sent out a message" to white , mostly Italian-Americans to stay out of East New York and to cooperate with the police. This went a long way towards a full scale riot being avoided. The Gallo's were actually commended for their fine service to the City.
I think then Mayor, John V. Lindsay said it best; You can't always deal with people who are leaders in the Boy Scout movement. Sometimes you must call upon individuals with fairly rough backgrounds". "Fairly rough" being the key word there. The rest is history....
Oh, how times have changed! Can you imagine Mayor Bloomberg today texting a Mafia Capo for help?

Judge Rules Clemens Must Face a Re-Trial; Is Anyone a Winner?

Yesterday, the assigned Federal District Court Judge ruled that "The Rocket", Roger Clemens must face a re-trial in April 2012 on the perjury and obstruction of justice charges.The Judge reasoned that he was obligated to give the Prosecutors another chance. Do they deserve it? Probably not!
So who is a winner here? The Prosecutors must prepare and retry an unpopular case. The taxpayers get saddled with the huge costs which must be undertaken by the US Attorney's Office. Clemens must incur astronomical attorneys fees and an "unsettled future". The Judge hates the case. So who is the winner? Oh I forgot...Rusty Hardin is , he gets another $5-10 million in legal fees for defending Clemens.
Happy Labor Day!