Past Performance Is No Guarantee Of Future Results, Except When It Is: Richard Bierbaum, Portrait of a 'Golden Child'
Richard Bierbaum, a former Calyon employee who was let go from the firm for alleged unauthorized trading that caused $353 million losses, claims he was totally in control of the situation, and that his bosses not only knew of but also fully endorsed what he was doing. “There was nothing deceptive or rogue,” Bierbaum, 26 told Bloomberg. “My positions were reported on a daily basis. It did not blow up. I expect there were some losses but nowhere near the amounts they are discussing.” On September 18, Calyon said that it had an “unusually large market position” that was “above the authorized limit” and would cause a “sharp” decline in third-quarter profits. The investment bank did not identify the parties involved, but Bierbaum asserts that he was blamed and fired for the trades. Though he maintains his innocence, Bierbaum , who would like to get back into credit trading, says he’s worried about the allegations. “It’s my word against theirs.”
Obviously, since our wire taps at Calyon have been on the fritz, we have no way of knowing for sure who’s telling the truth here, and who’s telling a $353 million lie. But since this seems to be a case of “Did he or didn’t he have a horrible error in judgment that, literally, blew up in his face,” we should probably travel back in time and take a look at what appears to be a history of not necessarily “bad” decisions on Bierbaum’s part, but perhaps “horrifically awful” ones. Let’s just say his most recent work at Calyon was not the first time Bierbaum was (allegedly) “above the authorized limit.”
Nicknames
Bierbaum is known as “Chip,” which we probably can’t fault him for too badly because everyone is known as “Chip” in the WASP-errific world of the interchangeable Hitler Youth, and we’re guessing he didn’t give himself the name. But speaking of the grave offense that is giving yourself a nickname, and forcing people against their own will to call you by it, even if the handle isn’t necessarily, in any way, apt? “Golden child.” As in, “I was the golden child of credit trading in New York.''
Disrespect (for elders and the public school system)
In high school, Bierbaum was sent to the Rocky Mountain Academy in Bonner Creek, Idaho, which dealt with adolescents experiencing “behavioral and emotional issues” ranging from “disrespecting parents to drug and alcohol abuse,” before closing in 2005. Bierbaum characterized it as, “a place to be for a couple of years relative to public school,” though if you’re hung up on labels, it’s called a juvenile correctional facility.
Offending the intelligence of sophomores in college everywhere
After his stint in “public school,” Bierbaum attended Trinity College, presumably because the favorite pastime at this NESCAC school is drunk driving. In 2001 he was arrested for driving under the influence, and also for carrying a fake ID. Bierbaum says that as a “sophomore in college,” he “wasn’t aware of the consequences” of being “that dumb.”
Bear Stearns. Just Bear Stearns
Before losing Calyon $353 million*, Bierbaum joined Bear Stearns, where he worked as a junior trader for one of the hedge funds that blew up in June. If only he’d taken Jimmy Cayne’s advice to “never come into the office,” perhaps none of this would’ve ever happened. Interestingly enough, a spokesman for BSC declined to comment. What does it mean when even the poster child for meltdowns and failure and embarrassment in general won’t touch you with a ten foot pole?
Man’s best friend
And, finally, the most glaring: Bierbaum allowed Jamie LeFrak, a principal at the LeFrak Organization (where the maybe-rogue trader worked before Bear) and the boyfriend of Caroline Bierbaum, Chip’s sister, to vouch for him. “He was a good soldier,” LeFrak told Bloomberg. “Chip is an honest guy who would certainly check with his bosses.” Yes, “Chip” used the guy you’re about to see in a picture that some of you might call NSFW, as a character witness to dismantle the claims by Calyon that he showed poor judgment in executing a few trades back in September:
Comments
Holy Christ, look at that pic! That's beyond disturbing, and i watch a lot of porn.
Posted by: Feels bad for Poochy | October 10, 2007 01:21 PM
wooooow
where do you guys get all these pics?
Posted by: Anonymous | October 10, 2007 01:22 PM
thank GOD bloomberg feels compelled to give the exhaustive recap of "the Chipper's" gilded family tree .. then we'd never have heard from his sister's boyfriend, who, in an attempt to curry favor(s) from the sister, had to put his quotes on the record .. if he hadn't we wouldn't have this scintillating (dare I say sexthy!) photo of Monsieur leFrak!!
there's more proof that money/family does not equal class!!!
Posted by: Caroline | October 10, 2007 01:24 PM
Darlings, we only took this photo of the two of us for personal enjoyment!
Posted by: Chip's sister | October 10, 2007 01:26 PM
Bloomberg seemed intent on painting Mr. Bierbaum as a disturbed, lying child of privilidge ... I wonder why?
I also wonder why it always takes like 2 minutes for DealBreaker.com to complete the comment posting process. What's up with that??
Posted by: anon4life | October 10, 2007 01:29 PM
Aren't you being a little too harsh with the boy?
He's only doing what comes natural
Posted by: Bakunin | October 10, 2007 01:32 PM
Because he's named Chip, he's part of the Hitler Youth? Carney's clearly got some insecurities to work out...
Posted by: Cynic | October 10, 2007 01:32 PM
it's called a joke, half-wit. but yeah, that kid's definitely got ties to the SS.
Posted by: Anonymous | October 10, 2007 01:35 PM
26 years old + trading job = $353 million loss.
Not surprised.
Posted by: The Understander | October 10, 2007 01:36 PM
26 years old + trading job = $353 million loss.
Not surprised.
Posted by: The Understander | October 10, 2007 01:37 PM
The Bierbaums and the SS dont mix well fellas. Jusk ask any of the SS.
Posted by: Anonymous | October 10, 2007 01:40 PM
FANFUCKINGTASTIC.
Posted by: bravo, DB | October 10, 2007 01:48 PM
its amazing they bothered to do so much research on this guy
Posted by: Anonymous | October 10, 2007 01:51 PM
black bikini briefs!? Now that's just unnecessary at lunchtime!
From St. Bernard's to reform school? This kid had to be really bad to pull that off; there's always a third-tier prep school willing to bet on a turnaround for a nice contribution. Oh, and as if a New York public school was ever really an option for this rich d-bag.
But the Frogs really got what thy deserved here. This kid may or may not have been a rogue trader, but whoever hired him given his weak resume was certainly a rogue hirer! Real estate broker to back office at Bear Stearns to trading prop at Calyon? It just doesn't make sense! I wouldn't trust any 26 year old with real money and risk, but even amongst 26 year olds, the Chipster seems especially unfit.
Posted by: MG | October 10, 2007 01:55 PM
BUT HE HAD PASSED ALL THREE LEVELS OF THE CFA!!! What a waste of time that sh*t is....
Posted by: Failed Level 1 | October 10, 2007 01:55 PM
Maybe this guy wasn't reconciling properly and really had now idea how big his inventory had become?
Posted by: Anonymous | October 10, 2007 01:56 PM
The CFA Institute must be proud.
Posted by: Anonymous | October 10, 2007 01:56 PM
Maybe this guy wasn't reconciling properly and really had no idea how big his inventory had become?
Posted by: Anonymous | October 10, 2007 01:57 PM
bess = awesome
Posted by: Anonymous | October 10, 2007 01:57 PM
i remember this guy from bronxville - he lived/ went to school there for a short time. was def cocky even though no one could figure out why - and it's not exactly like he was livin in some middle class burb where he was the shit...
Posted by: bxv alum | October 10, 2007 01:59 PM
@ 1:40, da fuck are you talking about? The Nazis had a ton of WASP sympathizers. And if you're making an obtuse reference to his being Jewish, I don't recall many Jews working for Standard Oil or in George Washington's cabinet (although I may have missed the reference to his bar mitzvah in the Bbg article).
Posted by: Neville | October 10, 2007 01:59 PM
Bess on your nickname thoughts, I guess if my name was Richard, I too might go shopping for a nickname other than Dick.
Chip is pretty bad, but for my all time most hated WASP nickname, it's hard to be more detestable than Trey, as in "the third," as in "we've summered near the yacht club for three generations!"
Posted by: MG | October 10, 2007 02:01 PM
Going to school for children who are "disrespectful to their parents": $100,000
Being part of a fund that closed due to sub-prime losses: $100,000,000
Turning your huge gain into a loss: $350,000,000
Having Bloomberg report that you were the "golden child" of the New York credit desk: priceless
Posted by: Anonymous | October 10, 2007 02:02 PM
@ 1:56 (and 1:57)
No way, he earned his stripes in the trenches of the back office of Bear Stearns. That's like ... the Goldman Sachs of broker/dealer back offices. This guy was a reconciling PRO.
Posted by: Anonymous | October 10, 2007 02:02 PM
Uh, Neville 1:59 - the Standard Oil guy and John Jay are Bierbaum’s STEPFATHER’S ancestors. I couldn’t care less about this guy’s forbearers but Bierbaum is often a Jewish name – which is relevant because Bess didn’t notice that the quirks of WASPs are also often shared by members of the Tribe.
Posted by: Anonymous | October 10, 2007 02:25 PM
Only a jew would have sex with a black dog. it is what we call Shiksa. After a romp with the dog he will go to the Synagogue and tell all his Christ killing friends that he banged a hot black bitch last night, like they have been doing to the poor black man all these years.
Posted by: slimjim | October 10, 2007 02:28 PM
juvy correctional facility indeed...while there, the chipster got a prison-style "420" tattooed on his forearm
Posted by: DD | October 10, 2007 02:31 PM
juvy correctional facility indeed...while there, the chipster got a prison-style "420" tattooed on his forearm
Posted by: DD | October 10, 2007 02:32 PM
@ 02:25 PM: Richard is not Jewish. Nice try, though.
Posted by: Anonymous | October 10, 2007 02:36 PM
http://www.bloomberg.com/apps/news?pid=20601109&sid=a9T1UaFhjVYw&refer=news#
Posted by: bloomy | October 10, 2007 02:55 PM
that photo isnt of chip.
Posted by: Anonymous | October 10, 2007 03:00 PM
3:00, are you a fucking idiot? it says that's a picture of lefrak.
Posted by: seriously, close your mouth before you speak | October 10, 2007 03:08 PM
ha ha...boner creek
Posted by: snicker snicker | October 10, 2007 03:09 PM
Francois Pages is a dolt as a manager
CL knew exactly what the prop guys were doing , they have a very tight middle office that reconciles positions each day
Posted by: b | October 10, 2007 03:33 PM
Lets all be mature about this. The tradere in question is a great trader who just got on the wrong side of the trade. That's all.
Posted by: The Trader Apologist | October 10, 2007 04:24 PM
Tests only test your ability to take the test. Passing all three levels of the CFA doesn't guarantee real-world competence.
Failing hugely in the real world is probably a good signal of poor real-world competence.
Posted by: Test taker | October 10, 2007 04:26 PM
Let's take this anti-french. Is being "the golden child" of credit trading at the New York branch of a French Bank really even remotely impressive? I would think it ranks slightly above the best US Goverment Bond analyst at a rating agency.
Posted by: Anonymous | October 10, 2007 04:38 PM
the real question here is whether he properly recorded and submitted his positions to the bosses. seems odd to me that they would fire everyone up the line if this was truly the case of a 'rogue' trader - especially at 26 yrs old.
don't get me wrong, the kid is not making it easy on himself with the egregious quotes and conduct.
i had several classes with him during undergrad - a smart kid that generally kept to himself and a tight circle of like minded friends. comes from a good family and has a hot wife, chip will be just fine.
Posted by: trip | October 10, 2007 05:19 PM
Once again sounds like the french are scapegoating someone who can't defend themselves. I've seen this type of Vichy behavior before, and I hate to see it happen to yet another fallen soldier. Unfortunately as it usually happens with the french (they don't deserve upper case), the truth will probably never see the light of day. Godspeed Brother!
Oh, and lest your beginning to worry, I make any frenchies I bring on board shave their pits (and everywhere else, not to worry), cus thats just nastay otherwise, like biznanging a freakin sasquatch!
Posted by: Captain Stabbin | October 10, 2007 05:56 PM
I find it very hard to believe that this guy was able to build up massive positions in the CDX without the consent of his supervisors given all the settlement requirements. The fact that everyone above him was canned as well leads me to believe his managers did indeed know about and approve of his trading. Seems to me like this guy just got tossed under the bus
Posted by: Anonymous | October 10, 2007 06:08 PM
All this "rogue trader" nonsense is indeed nothing more than a bombastic ruse to detract from the incompetence of senior management and wider losses which are/have already led to the dismantling of an entire line of business.
Posted by: Zut alors! | October 10, 2007 09:46 PM
@ trip: he must be from a good family, since his steppdaddy goes back to john jay right? great family, with a bro-in-law who's a zoophile.
seems to me he's more like a guy who was born on third base and thinks he hit a triple like all the other inbred blue bloods.
Posted by: WASPs love animals, hate people | October 10, 2007 11:33 PM
how is this prick being singled-out, when the whole team was fired? he's just the only one dumb enough to be running his mouth to bbg.
P.S. what happened to the pic of le freak clad only in briefs masturbating the labrador retriever?
Posted by: Anonymous | October 10, 2007 11:35 PM
yeeaaaa Chip Bierbaum. bust out the saxaphone and play that thang untill the haters fade away!
Posted by: T-P homeboy | October 11, 2007 09:50 AM
repost the pic of lefrak and the dog
Posted by: Anonymous | October 11, 2007 12:57 PM
My mom taught him at St B's. Said he was a 'naughty boy' and was not surprised by this news.
Posted by: Anonymous | October 11, 2007 02:15 PM
FRENCH PEOPLE SUCK
Posted by: Anonymous | October 11, 2007 07:44 PM
dealbreaker: a tip for you.
i have heard rumors of layoffs of analysts at ws banks.
rumor 1: Deutsche axed all/most of their first year analyst class and gave them $55K for their troubles.
rumor 2: JPM is axing some of their first years in IB lev. fin group. Heard a "test" was administered to the group recently.
rumor 3: GS told firstyears to go home for 4 months without pay or else go work in operations.
rumor 4: MER is keeping half of their first year analysts and send rest to operations.
Posted by: rumor | October 11, 2007 10:46 PM
hang in there chipper. i believe you buddy. go team chester.
Posted by: Anonymous | October 12, 2007 12:45 AM
"GS told firstyears to go home for 4 months without pay or else go work in operations."
Hahaha
Posted by: Anonymous | October 12, 2007 01:48 AM
ahh the French: one must remember they know more than you, they understand more than you, there models are flawless, and they want to "be big in all their businesses."- it hilarious really: 20 and 30-something year olds running divisions pretending they didnt know what was going on. Its all bullshit- and you gotta wonder why nobody from risk management got canned...
Posted by: Ben Dover | October 21, 2007 07:28 PM