Tale of th e tape

A FINE TIME TO FORGET Hedgie hazy at trial

By MARK DeCAMBRE For a financial whiz, Paolo Pellegrini sure has a fuzzy memory. Pellegrini, who helped hedge-fund manager John Paulson make billions off the housing market collapse, couldnt remember what CDO, or collateralized debt obligation, stood for during his testimony yesterday in the trial of ex-Goldman Sachs banker Fabrice Tourre. Im not sure, Pellegrini said after a long, uncomfortable pause in the packed Manhattan federal courtroom. It may stand for collateralized debt obligation, but Im not sure, he said in response to a question from Matthew Martens, who is leading the Securities and Exchange Commissions case against Tourre. In the world of high finance, Pelligrinis memory lapse however arcane for the nine-member jury is the equivalent of fictional slugger Roy Hobbs being unable to recall the name of his legendary bat, Wonderboy. CDOs were Pellegrinis bread-and-butter during the financial crisis four years ago. As John Paulsons former right-hand man before he left to start his own fund, Pellegrini helped engineer a massive bet against subprime mortgages that allowed Paulson & Co. to pocket $3.5 billion.

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New York Post, Wednesday, July 17, 2013 nypost.com

FRED DeLUCA Currently being treated

Subways boss has leukemia

By JOSH KOSMAN Subway sandwich chain confirmed yesterday that its president and founder, Fred DeLuca, has leukemia. We can confirm that Subway Restaurants President and Co-founder Fred DeLuca has been diagnosed with leukemia and is currently being treated, a company spokesman said. Fred is doing well and focused on his health right now. The senior management team for the brand continues to manage the day-to-day operations of the company and no significant changes are being made at this time. However, a source said the situation is very serious and has raised questions about the future of the sandwich chain, which has no clear succession plan. The Post previously reported that Subway has been eliminating development agents to boost profits and streamline its structure a sign that DeLuca may be dressing up the company for a sale. jkosman@nypost.com

loCKed in

upgrade

$200 Two years end of contract

Two-year phone fee ConTraCT lengTh earliesT upgrade

$780 Month-to-month one year

Getty Images

Dialing for $: AT&Ts yearly upgrade plan

By GARETT SLOANE Tech lovers looking to upgrade their smartphones every year will soon have a second option to do so but itll cost an extra $600 over two years to be hip. AT&T announced yesterday a new calling plan, called Next, that will allow customers to upgrade every 12 months instead of the standard two-year period but they will have to pay full price for their gadgets. Most US wireless customers pay $200 for high-end smartphones with carriers eating a subsidy of up to $450, an amount will be used to repurchase shares. Claire Atkinson cized AT&Ts new program as a copycat and said it doesnt lower service costs even though consumers pay full price for the phone. Consumers are paying for the same phone twice, he said, because carriers like AT&T build the cost of subsidies into subscribers bills. Verizon also is reportedly exploring similar payment structures. Since T-Mobiles second-quarter payment plan overhaul, it is gaining 1.8 subscribers from AT&T for every one it loses, Sherrard said. Both AT&Ts Next and T-Mobiles Jump they hope to recoup through profits derived from two-year contracts. T-Mobile rolled out a plan similar to AT&Ts earlier this year. The T-Mobile plan, called Jump, allows customers to upgrade phones twice a year by trading in the old phones. T-Mobiles Andrew Sherrard, senior vice

CBS Outdoor sold abroad

CBS Corp. has agreed to sell its overseas outdoor ad business to Tom Gores Platinum Equity for $225 million. CBS will retain its US and Canada billboard operations and convert them into a Real Estate Investment Trust, a tool for lowering taxes. CBS chief Les Moonves said the deal will allow the company to focus on its core content business. The proceeds from the overseas sale

The SEC claims Tourre and his former employer Goldman Sachs lied to investors about the role Paulson & Co. played in a complex mortgage security, called Abacus. Paulson handpicked the assets for Abacus, betting they would fail. Pelligrini wearing a dark gray, chalk-stripe suit, white shirt and dark tie responded to questions in a halting, methodical fashion, giving the SEC attorney fits. You are speaking in a very imprecise way so Im having trouble answering your questions, Pellegrini said to Martens at one point. That exchange came after Martens asked Judge Katherine Forrest if he could treat Pellegrini as a hostile witness. She denied the request but said she might allow it later. Day two of the high-profile trial saw Dwight Jaffe, a real-estate expert witness, wrap up his testimony, which was laden with esoteric investment terms that the jury seemed to have trouble following. Jury No. 4 appeared to fall asleep with terms like OWIC and BWIC tossed around during testimony from another Paulson & Co. official, Sihan Shu. Shu testified in a thick accent that caused the courtroom stenographer to repeatedly interrupt his testimony in order to accurately record it.
mark.decambre@nypost.com

president of marketing, yesterday criti-

come with only month-to-month contracts. T-Mobile data plans cost less than AT&Ts, but AT&Ts Next doesnt require a downpayment; T-Mobiles Jump does. Unless a customer is constantly paying for the latest phone, the Next plan at up to $50 a month will typically cost more than traditional plans.
gsloa ne@n ypost .com

Barclays energy fine

Barclays and four of its former traders were ordered to pay a combined $487.9 million in fines and penalties by the Federal Energy Regulatory Commission, which had been investigating the company and the individuals for manipu- lation of US energy markets. The agency directed the com- pany and the traders to pay within 30 days, according to an 86-page order issued yesterday. Bloomberg