Cityfile: New York's Most Notable and Influential

President Obama now has a backup plan in the event he decides to kick Treasury Secretary Tim Geithner to the curb. 50 Cent has graciously stepped forward and offered to help the president run the U.S. economy. If President Obama needs him, of course. More

You probably thought Lydia Hearst spent her days and nights flitting from party to party and posing nude for European magazines, didn't you? Well, it turns out the oft-nude publishing heiress is pretty up to speed on economic matters as well. Hearst, who appears on the cover of the new issue of Social Life magazine, gave the mag a surprisingly sophisticated answer when she asked what if there was anything in the news that has "piqued" her interest as of late: More

Geithner on the Hill | Did you miss Treasury Secretary Tim Geithner testifying today before members of the Senate Banking Committee? You can read about all the excitement here, but today was actually supposed to be a double-header for Geithner: He was scheduled to head over the House afterwards to testify before the Financial Services Committee. But then the committee decided it had something more important to do and postponed it for "a later date." No rush, guys. Really. [CNN]

You probably assumed the job of Treasury Secretary came with half a dozen manservants. It doesn't, apparently. Tim Geithner was in New York City today to appear on a panel moderated by Time managing editor, Richard Stengel. Before the event kicked off, though, Geithner was spotted at the Starbucks downstairs. Buying his own coffee. Shocking, isn't it? Here's what went down, according to CNN's Donna Rosato: More

• Edgar Bronfman Jr. and wife Clarissa are putting down roots in London. The couple has picked up a "posh house" in Kensington and plan to relocate with their four kids by the end of the summer, although the Warner Music chairman/billionaire heir says he plans to divide his time between London and NYC. [NYP]
• Treasury Secretary Tim Geithner has taken $60,000 off the price of his Westchester home. The five-bedroom Tudor in Larchmont, which went on the market for $1.635 in March, has been reduced to $1.575 million. He's since rented out the house for $7,500 a month so he can "wait until the real estate market rebounds a bit." [Luxist, HL]
• Russian communications mogul Timur Artemiev, who co-founded the country's largest mobile phone retailer, has picked up a New York pied-à-terre. Artemiev paid $1.39 million for a two-bedroom condo at the Chelsea Stratus on West 24th Street. [Cityfile] More

• Goldman Sachs, JPMorgan Chase, and Morgan Stanley have applied to refund a total of $45 billion of bailout money. The government now has to decide whether to take the cash and run the risk of upsetting less fortunate banks who can't afford to repay their bailout money. [BN, DB]
• Money management giant Blackrock has its hand in just about everything these days, which is why lots of people are asking questions. [NYT, WSJ]
• Eight months after Lehman Brothers went down and lawyers are raising questions about the "rushed sale" of its capital markets unit to Barclays. [DB]
• American Express says it plans to eliminate 4,000 jobs. [NYT] 
• Builders broke ground on the fewest homes on record in April. Housing starts dropped 12.8%, although Wall Street had been predicting an increase. [BN]
• Tim Geithner says he doesn't want to institute pay caps. He just wants to curb aggressive risk-taking. Of course, if you can't take risk, you can't make a lot of money, so we're right back where we started, aren't we? [NYT]

• Disappointing retail sales figures and a surprising rise in the number of foreclosures are sending stocks lower this morning. [CNN, WSJ] 
• The Obama administration is looking into ways to change the way people across the financial services industry are compensated and that includes companies that didn't even receive federal bailout money. [WSJ, NYT]
• Ed Liddy may be jobless soon: Trustees overseeing taxpayers' stake in AIG are seeking a CEO to replace Liddy as well as new board members. [WSJ]
• Speaking of AIG, were officials like Tim Geithner aware of the bonus situation at the company months before the news broke? It looks that way. [WaPo]More

• John Thain is striking back at Bank of America in an effort "to restore his sullied reputation," and accusing BofA's CEO, Ken Lewis, of lying. [WSJ]
• Thanks to rising profits, employees at several banks are on track to earn as much money this year as they did before the financial crisis. [NYT]
• UBS's head of investment banking, Jerker Johansson, is stepping down. [DB]
• Steve Rattner caught a break on Friday when Quadrangle Group investors decided not to shut down his scandal-plagued fund. [NYT, NYP] More

• Morgan Stanley reported a larger-than-expected loss for the first quarter this morning. The bank reported it lost $177 million, down from the $1.41 billion profit it collected during the same period in 2008. [WSJ, NYT, BN]
• David Kellermann, the chief financial officer of Freddie Mac, was found dead in his Virginia home, the result of an apparent suicide. [WaPo, BN]
• Things have gone from bad to worse for Steve Rattner: New York City's comptroller is investigating whether Quadrangle "intentionally misled or deceived" city pension funds by failing to disclose finder's fees. [WSJ]More

• Stocks dropped at the opening bell this morning following the Commerce Department's report that retail sales fell 1.1 percent last month. [WSJ]
• The SEC is looking into whether Bank of America broke the law by not telling shareholders about Merrill Lynch's plan to pay out billions in bonuses. [FT]
• President Obama is expected to tap Fannie Mae chief Herb Allison to head up the government's $700 billion financial rescue program. [WSJ]
• From Dick Fuld to Tim Geithner, Steve Rattner to former AIG chief Bob Willumstad, the big guns of finance have a friend in Michael Bloomberg. [NYT]
• Lehman Brothers "is sitting on enough uranium cake to make a nuclear bomb as it waits for prices of the commodity to rebound." No, this is not a joke. [BN] 

Politico.com has concluded a groundbreaking investigation into the cars owned President Obama's cabinet members and top aides. And what did they find? A very sorry state of affairs, that's what. Treasury Secretary Tim Geithner is the proud owner of a 2008 entry-level Acura TSX, and he previously owned a 1999 Honda Accord, none of which is entirely surprising considering he's worked government jobs his whole life, has an atrociously designed home, and has lousy taste in ties, too. Larry Summers, however, will have a harder time excusing his 1995 Mazda Protégé (or his previous car, a 1996 Ford Taurus GL), since he worked for David Shaw's hedge fund for long enough to invest in a 3-series BMW (at least one that was manufactured at a plant in the U.S.) Naturally, the one person noticeably absent from Politico's list is the one that matters most: Steve Rattner, the man appointed by President Obama to redeem the American auto industry. But it's not all that complicated to determine at least one of the cars in Rattner's fleet. The couple's 2006 black Mercedes-Benz 350 (New York license plate #CSL1498!) was entered into the public record when his wife, Maureen White, was arrested for drunk driving last October.

• Washington is now playing hard ball: The Obama administration has forced out GM CEO Rick Wagoner and now says the company has 30 days to finalize its alliance with Fiat if it expects to get more bailout cash. [NYT, WSJ]
• UBS plans to lay off as many as 8,000 more employees worldwide. [Reuters]
• Working at Goldman Sachs has its perks: The bank spent tens of millions bailing out several senior execs facing a personal liquidity squeeze, including former COO Jon Winkelried and general counsel Gregory Palm. [NYT]
• Bank of America plans to increase some bankers' salaries by as much as 70 percent to offset reduced year-end bonuses. [BN]
• The Blackstone Group turned down a request from regulators to disclose the performance of its buyout and hedge funds; Fortress, however, caved. [BN]
• Timothy Geithner says some financial institutions will still need a lot more government aid in the future. You're stunned by that, we're sure. [BN]

Last week, we learned from a bunch of facial readers that Bernie Madoff's shady tendencies should have been as obvious as night and day. (Or as obvious as a "thin lips" and "deep-set eyes," anyway.) Now it's the graphologists who are weighing in! And funnily enough, they, too, say the writing was on the wall. (Or pad of paper, at least.) Says Bart Baggett, a "personality profiler and forensic document examiner" who lives in California: "I would say he was seriously abused as a child because he has such trauma. The leftward leaning, backward strokes are an emotional withdrawn tendency, a lack of emotional connection with humans." In other words, not only were Sylvia and Ralph Madoff really shady, they were also bad parents. Could we now get them to focus their attention on Tim Geithner? Would be great to get a little advance notice this time!

• Treasury Secretary Tim Geithner plans to ask for greater oversight of financial markets and stricter regulation today; his proposal will also seek more control over hedge funds and private equity firms. [BN, WSJ, NYT]
• The departure of two execs from AIG's Paris office could trigger defaults on $234 billion in derivative contracts, believe it or not. [WSJ]
• Morgan Stanley and Mitsubishi are merging their brokerages in Japan. [DB]
• Some say the insurance biz is the next shoe to drop in the crisis. [NYP]
• Commercial real estate loans are heading south in a hurry. Delinquency rates have more than doubled since September. [WSJ]
• Gross domestic product fell at a 6.3% annual rate during the fourth quarter of 2008; state unemployment claims are up, too. [WSJ, CNN]
• Hope you skipped business school: "The MBA will soon be joining equities and house titles in the museum of formerly overvalued pieces of paper." [TBM]

• Congress's efforts to recoup bonuses at AIG appear to have cooled over the past few days. And President Obama will make an effort to repair relations with Wall Street when he sits down with a dozen bank CEOs on Friday. [WSJ]
• More on Tim Geithner's proposal yesterday that the government be given the authority to take control of troubled financial institutions. [NYT]
• HSBC is planning to lay off 1,200 people in the UK. [DB]
• Hedge funders may see pay drop by as much as 25 percent this year. [BN]
• A Steve Rattner-less Quadrangle Group has decided to temporarily suspend efforts to raise a third private equity fund. [peHUB]
• More big names have decided to leave Merrill Lynch. [FT, WSJ]
• AIG says it sold two of its jets and has cancelled delivery of two more. [ABC]
• An employee with AIG shares his resignation letter: He says he's been "betrayed by AIG" and "unfairly persecuted by elected officials." [NYT]