RAINBOW ROOM SAVED BY BECOMING A LANDMARK

NYT - On August 22, 2012 , a Greedsters Sequel was posted pertaining to the inability of tenant and landlord to arrive at a new rental agreement for the famous Rainbow Room space in 30 Rockefeller Plaza, New York City.  It has been closed for more than 3 years.  It's happy news that the city's Landmarks Preservation Commission voted 7 to 0 to give Landmark Status to the "Rainbow Room", even though a landmark conservative approach limits the designation only to that part of the 65th floor where the music and dancing occurred.  Restaurant support operations used part of the same floor plus the 64th floor.  It appears the owners - Tishman Speyer Properties - and the renters - the Cipriani family - support the landmark designation.  It just may be the thing to bring the two parties together to have a big smash grand opening someday in the future.  The entertainment space on the 65th floor was named "Rainbow Room" because of multi-colored lights that bathed the dance and dining area while a fancy house organ filled in the period when famous orchestras were catching their breaths between sets. Oh, those were the days!!

PERSONAL SECRETARY CHARGED WITH EMBEZZLING FROM EXECUTIVE

WSJ - William J. Salomon, now 98 years old and son of one of the founders of the 100-year old Salomon Brothers investment firm, was an active executive at Salomon Brothers after rising from a 19-year-old fresh out of high school.  On retirement, he maintained an office at the firm and continued with an office after Citigroup merged with Salomon Brothers in 1997.  His recent secretary, Karen R. Febles, charged with embezzlement,  was a former Citigroup secretary and became Mr. Salomon's secretary from 2000 to September, 2011.  "Ms. Febles was the only other person given access to  Mr. Salomon's personal checking account".   An example sited by prosecutors was a check signed by Mr. Salomon for $900 dollars and when cashed, "nine  hundred became nine thousand nine hundred".   Ms. Febles will stand trial set for November 13 after pleading not guilty.   An investigative official has stated, "Part of what goes into larcenous thinking is that this is a wealthy person who isn't counting his nickels and dimes and will never miss the money".   After many years of trust, Mr. Salomon apparently missed about $1.8 million and blew a whistle.   Mr. Salomon is known as "pleasant, well-tailored, casual and has all of his mental faculties at 98".   His wife of 70 years died in 2008 and he now has another office assistant.

A SHOCKER FROM CITIGROUP

WSJ - For the CEO of one of the world's leading banks to suddenly resign shook up Wall Street and the financial world.  Mr. Vikram S. Pandit took over at the helm of Citigroup in 2007, steering the bank through thick and thin from 2007 to October 17, 2012.  The company's wheel wobbled during these past 2 years until he was deposed as CEO of Citigroup by Board  Chairman Michael  O'Neill .  Mr. O'Neill is regarded as a new generation of Chairman of the Board - inquisitive, poking into trading , questioning trades of all kinds, reducing some costs and exercising the exit of thousands of employees. Behind the scenes the tension between the CEO and Board Chairman finally became too much and Mr. Pandit's head rolled.  The Board asked for Mr. Pandit's resignation, which is a polite way to say he was fired.

J P MORGAN MISTREATS CUSTOMER'S TRUST (Sequel)

NYT - Oklahoma Tulsa County District Court Judge Linda G. Morrissey declared J. P. Morgan Chase  must pay $18 million for breaching fiduciary duties managing a trust of Carolyn S. Burford.   Ms Burford died in 1996, leaving a rich trust for JP Morgan to manage.  This particular  trust was established in 1955 by Ms. Burford's mother and father who had founded the Skelly Oil Company.  The District Judge believed J P Morgan had used some of the trust's proceeds to invest in the bank's own trust, thereby  "double-dipping" its fees.  The Court admitted it was a convoluted case but the bank had violated its customer's trust by using trust money to invest in another trust for its own benefit.

TOYOTO RECALLS MILLIONS MORE CARS

NYT - In 2009 -10, Toyota suffered through the recall world-wide of 11,000,000 Lexus and Toyota cars with defective floor mats and sticky accelerator pedals. Now, once again, they must recall 7.4 million cars world - wide, 2 1/2 million of them in the United States.   Eleven different models are listed with inadequately - applied special grease on the power switches for power doors on the driver's side. Toyota warns the use of "commercially available lubricants" could melt, leading to fire.  Just imagine the costs involved in dealing with millions of cars with defects!.

SUB-PRIME MORTGAGE WOES GO ON AND ON

    

NYT/STRIBE - The Bank of America announced another major payment to shareholders - $2.3 Billion - to settle a lawsuit involving the acquisition of Merrill Lynch and misleading statements made by B&A in late 2008.  B&A's current CEO, Mr. Brian Moynihan, stated a week ago, "Resolving  this litigation removes uncertainty and risk and is in the best  interests  of our shareholders".  In early 2008, B&A acquired Countryside Financial and settlements to date for that deal has cost the bank more than $40 billion.  Only Enron, Tyco, and World Com settlements in the financial world have exceeded B&A's settlements.  Horrible losses, to be sure.  Some critics believe even more are yet to come as the period of 2007- 2012 keeps rearing its ugly head.

EAST INDIAN BILLIONAIRE SHORT ON CASH

    

NYT - Mr. Vijay Mallya, listed by Forbes on its billionaire lineup, is way short of cash to pay his debts.  His Kingfisher Airlines, owned by his UB Group, ordered 50 new Airbus planes at the 2007 Paris Air Show, has never made a profit, is late paying bank loans on time ($1.3 billion late) and it's claimed he hasn't paid most workers for months. The airline is called his "crown jewel".  A report states his executives "seemed willing to practically gamble away the health of the group's other businesses, which were used as collateral for bank loans to the airline".  These "other businesses" included expensive cars, a car racing team and fancy parties at his home in Mumbai with Bollywood stars and prominent politicians.  The airline featured red-suited flight attendants, very generous frequent-flyer programs and quality food at the start.  The airline faced drastic competition from state-owned Air India.  Its fleet is down to 12 airplanes from more than 70, and schedules have been pared to only curtailed domestic flights.  You might say he's being grounded.