This guy just can’t keep away from bad press:
One of Wall Street’s best-known traders, Mr. Meriwether was featured prominently in the book “Liar’s Poker,” which depicted the antics of Salomon’s bond traders. His LTCM hedge fund, located in Greenwich, Conn., included Nobel Prize winners and math whizzes, but it was undone in 1998 by massive “leverage,” or borrowing—up to $50 for every dollar invested—which amplified losses when the markets turned on him.
Mr. Meriwether’s recent troubles partly stem from borrowing. His bond fund had $14.90 in borrowed money for every $1 in equity at the end of February, according to the March 18 letter. Although far lower than at LTCM, the fund’s risk level, which includes leverage, was still too much for this year’s volatile environment, he and his fund managers have acknowledged in conversations with investors.
How do we invest our money with this guy?
Icahn wants more
Investor Carl Icahn won his long battle to split Motorola into two companies, but that’s not satisfying the billionaire, who says he’ll still fight to take four board seats, the WSJ says on B1. The NYT puts it on C1 and reports that the company will divide its struggling cell phone maker from the rest of its business by 2009.
In economic news, the fourth-quarter GDP report is due from the Commerce Department this morning. A Bloomberg survey predicts it grew just 0.6 percent.