Citi executive Vikram Pandit may well be the most likely insider to ascend to the vacant company CEO position, but, according to The Wall Street Journal, the hedge fund he founded (Old Lane Partners, the one acquired by Citi for $800m earlier this year) isn't doing as well. The newspaper quotes Hedge Fund Research, which says that Old Lane is now showing gains of around 3% this year, which compares badly to the 10% average gain seen by hedgies so far in 2007.
Reuters reports that firms continue to beef up their operations in India. Credit Suisse is to add around 35 to the payroll in wealth management and other businesses over the next few months, whilst UBS will nearly double its investment banking staff there next year to 180.
The Wall Street Journal reports that MF Global, the US futures broking business owned by hedge fund Man Group, has agreed to pay $75m to settle claims that a member of its staff helped failed US hedge fund Philadelphia Alternative Asset Fund to hide losses. The firm will settle without admitting wrongdoing.
The Financial Times reports that another senior executive has lefts the ranks over at Morgan Stanley. Jonathan Chenevix-Trench, the COO of the firm's institutional securities business, has quit. Chenevix-Trench, who was close to ousted co-President Zoe Cruz, is said to have quit of his own volition. In the meantime, according to a US Securities and Exchange Commission filing, Morgan Stanley's new co-presidents, Walid Chammah and James Gorman, currently own $58m in stock in the firm. Nice.
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