Former Merrill Lynch executive pays 37 million for NYC apartment (with taxpayer money)

kpete

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Tue Dec-30-08 11:22 AM
Original message

Former Merrill Lynch executive pays 37 million for NYC apartment (with taxpayer money)

Edited on Tue Dec-30-08 11:29 AM by kpete

Updated On 12/29/08 at 11:45AM
AllianceBernstein CEO pays $37M for pad at 720 Park Avenue

720 Park Avenue
By Adam Pincus

Investment advisor Carl Spielvogel and his wife Barbaralee Diamonstein-Spielvogel sold their cooperative apartment at 720 Park Avenue, at the corner of 70th Street, for $36.63 million, nearly twice what they paid for it two years ago.

The sale of the seventh-floor unit closed December 18, according to property records posted Friday.

The buyer was identified as Jill Kraus, wife of Peter Kraus, a former executive vice president at Merrill Lynch who reportedly received a $25 million bonus after working at the firm for three months this year. However, only her name was listed on the property report. He was hired as chairman and CEO of AllianceBernstein on December 19. A Merrill Lynch spokeswoman would not comment on his pay package.

The sellers, who are top Democratic fundraisers, bought the apartment in June 2006 for $20 million, property records show. Earlier reports of the sale estimated the price tag at $37 million.

Just before buying the 7th-floor unit, the Spielvogels sold their 17th-floor apartment in the building for $18.7 million, in May 2006, records showed.

http://ny.therealdeal.com/articles/alliancebernstein-ceo-pays-37m-for-pad-at-720-park-avenue
via:
http://www.dailykos.com/storyonly/2008/12/30/85952/148/913/678437

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panAmerican

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Tue Dec-30-08 11:26 AM
Response to Original message

1. Sad, but not surprising

What else did we think these people were going to do with the bailout money? It pained me so much that the democratic leadership and the herd were all for this, and I found myself agreeing with southern republicans in this matter.

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BeyondGeography

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Tue Dec-30-08 11:26 AM
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2. I say we confiscate it

Fuck them.

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MADem

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Tue Dec-30-08 11:27 AM
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3. Jeez. In this economy, that transaction almost sounds like MONEY LAUNDERING....

If I sold my house for twice what I paid for it two years ago, most people would say "WTF?" Prices are going DOWN, not up.

It must be a remarkable apartment. Could the guy have improved it THAT much?

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justabob

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Tue Dec-30-08 11:32 AM
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4. "$25 million bonus after working at the firm for three months this year"

I am still having trouble getting over all the bonuses...

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panAmerican

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Tue Dec-30-08 03:40 PM
Response to Reply #4

5. Not EVEN 3 months! Check this WSJ article out:

http://blogs.wsj.com/deals/2008/12/22/merrill-lynchs-peter-kraus-collects-25-million-then-resigns/

Kraus was hired in May�when Merrill Lynch was talking about expansion�but didn�t officially start until September, only a couple of days before Thain hurriedly sold the firm to Bank of America to avoid the bankruptcy-filing fate of rival Lehman Brothers Holdings.

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