Another flop, another job – on Wall Street, you can’t go wrong losing OPM

Say goodbye, for now, to the Cruz Missle

That would be “Other People’s Money”. Zoe Cruz, fired just three years ago by Morgan Stanley after losing $4 billion on a bad bet on mortgage debt, has now seen her hedge fund shuttered after betting wrong on the direction of the dollar.

Earlier this year, Voras Capital reported having $90 million in assets under management, compared with roughly $200 million Ms. Cruz had previously said the firm managed, according to people familiar with the matter.

Oops!

Ms. Cruz said that despite losing money last year, she had “very strong views: The equity markets and U.S. Treasury yields would go up, and the dollar would collapse.”

She placed trades through derivatives that would “lose some money” if her views were wrong, according to the letter.

“But if I were right, we would make multiples of the investment,” it said, adding, “Unfortunately, I have no such strong convictions now.”

Here’s the part where we learn why we were fools not to report for work on the Street after graduating nursery school:

Asset managers and banks have been in touch with Ms. Cruz about potential jobs, said people familiar with the matter.

Yeah, we want some more of that!

15 Comments

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15 responses to “Another flop, another job – on Wall Street, you can’t go wrong losing OPM

  1. Dollar Bill

    Let’s hope and pray no one’s bonus is affected by all this. I couldn’t take the weeping.

    Cue Balzac on how we should just leave the banksters alone and let them regulate themselves. We know how well that worked out last time.

    Next thing you know those meanies at Occupy will start saying unkind things about our Masters of the Universe. We can’t have that, can we? Perhaps some more free money from the Fed will make Jamie Dimon a happier camper. Anyway, It’s all Barney Frank’s fault.

  2. Inagua

    “Cue Balzac on how we should just leave the banksters alone and let them regulate themselves.”

    That particular bit of wisdom was the brainchild of Alan Greenspam, and it was sold to Bill Clinton by Robert Rubin. You may read all about it in this excellent article from an impeccably left wing intellectual journal.

    http://www.dissentmagazine.org/article/?article=1229

  3. Anonymous

    Morgan Stanley’s decision to put $20 million in Ms. Cruz’s hands goes back to a 2009 lunch she had with John Mack, then the securities firm’s CEO, according to people familiar with the matter.

    Something tells me that during lunch Ms. Cruz reminded Mr. Mack that she knew were a lot of bodies were buried.

  4. Dollar Bill

    No question about it. Greenspan (a devoted Randbot like CF) was behind this, and scores of Wall St. whizzes (Dem and Repubs alike) like Rubin. Inagua, great piece, but since when did you start reading Dissent? I thought that old rag had merged with Commentary (Dysentery) a while back. Old (very) Woody Allen joke.

    • DB, I keep posting your non-responsive missives because they are the epitome of the dull-minded, stupid, isolated Democrat. You are clearly incapable of responding to any fact presented to you and can only parrot what you’ve been spoon-fed by one of your Democrat Underground friends. I’d call you an embarrassment to your party but since they all suffer from your mental disability they can’t possibly see what’s wrong with your sputterings. You are, however, a discouraging example of how low a homosapien can devolve from its betters.

  5. Anonymous

    I wonder if Ms. Cruz got her job by checking the “Cherokee” box too.

  6. Daniel

    I would add DB a true “Randbot” would have allowed the whole stinking mess to collapse.

  7. AJ

    Dig into your pockets: here’s another loss the Fed is almost certain to cover with your hard earned dollars — secretly shipped out the back door.
    J.P. Morgan’s $2 Billion Blunder: http://online.wsj.com/article/SB10001424052702304070304577396511420792008.html and JPMorgan Hit by ‘Egregious’ Trading Loss of $2 Billion: http://www.cnbc.com/id/47377555
    If the WSJ link doesn’t give you the full article you can always google in the head line (J.P. Morgan’s $2 Billion Blunder) and you’ll be linked to the full story.
    No wonder no one wants to be a US citizen anymore: Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO

    http://www.bloomberg.com/news/2012-05-11/facebook-co-founder-saverin-gives-up-u-s-citizenship-before-ipo.html

  8. Cos Cobber

    CF, please delete my last comment.

    What I should have said:

    DB, should we also hope and pray no union pension $ was lost in this as well?

  9. Anonymous

    Is Dollar Bill your friend in real life?

  10. Inagua

    “Inagua, great piece, but since when did you start reading Dissent? ”

    I read a lot of leftie stuff. My favorite is FDL hosted by my friend Jane Hamsher.

  11. AJ

    What can one say of the how to make tons of money oracle Ms Cruz? I think one word should suffice: to quote the great American philosopher Charlie Sheen –“Winning”. Or, as they probably quite often like to say on Wall Street: Heads I win, tails you lose.

  12. anonymous

    If MS did not fund Ms. Cruz they would have been facing a massive lawsuit for wrongful termination and claims of sexual harassment.

  13. AJ

    JP Morgan Suffers ‘Massive’ Losses: $4.2 Billion Probable; May Spread to Entire Sector

    http://www.blacklistednews.com/JP_Morgan_Suffers_%E2%80%98Massive%E2%80%99_Losses%3A_%244.2_Billion_Probable%3B_May_Spread_to_Entire_Sector_/19418/0/0/0/Y/M.html

    Looks like we’re all going to have to work a couple of months longer before hitting tax freedom day to make good on JP’s bad bets so that Jamie doesn’t suffer a setback and have to cut back on his style of living. Put your backs into it you dumb slaves. Oops, I mean my fellow American citizens. Clinton, Greenspan, Rubin: burn in hell. Long live Brooksley Born.