This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Dumbest Things on Wall Street in 2008

DUMBEST OF 2008 #5

Schwarzman Bashes Birthday

By Gregg Greenberg, 11/07/08

The party of the century is giving Steve Schwarzman the hangover of a lifetime.

The CEO of private equity giant Blackstone Group (BX) finally admitted in early November at a New York press conference that his multi-million dollar 60th birthday celebration was a mammoth public relations mistake. The garish gala, held on Valentine's Day 2007, featured British rocker Rod Stewart, comedian Martin Short, singer Patti LaBelle, two Harlem choirs and a marching band.

"Obviously, I wouldn't have wanted to do that and become some kind of symbol of that period of time -- who would ever wish that on themselves? No one," said Schwarzman at the conference.

Schwarzman was also quick to point out that his 61st birthday party was held this year with far less fanfare.

But it sure was one heck of a fiesta, wasn't it Steve? It was a business blowout second only to former Tyco (TYC) chief Dennis Kozlowski's infamous Sardinia bash.

Unfortunately, aside from bad taste, Schwarzman's party also suffered from bad karma. Blackstone went public a few months later at the peak of the buyout boom at $31 a share. The stock closed Dec. 24 at $5.75 after trading as low as $4.15 a share in November.

And it's going to get worse for the former private equity princes, says Doug Kass of RealMoney Silver, a premium Web site from TheStreet.com. Kass contends that a slew of pension fund capital calls and unbearable debt burdens make "private equity the next shoe to drop."

That may be good news for Schwarzman. He can use the shoe to repeatedly kick himself for being so stupid.

Update 12/26: Blackstone shares traded below the $6 barrier last week as the pummeling of private equity funds continues unabated. No plans have been released about Schwarzman's birthday plans for this coming February. But if this keeps up, he may have to settle for Chuck E. Cheese's.

7 of 12

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
BAC $16.75 0.00%
GOOG $540.11 0.00%
GM $35.70 0.00%
GS $207.80 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs