- JPMorgan Third-Quarter Profit Surpasses Analysts’ Estimates
- Wall Street On Track To Award Record Pay
- London Bonuses May Rise or Match 2008 Payouts, McKinley Says
- BofA Emails Show Pique at U.S. Over Dividends
- Geithner Aides Reaped Millions Working for Banks, Hedge Funds
- AIG Advised to Limit Its Next Round of Bonuses
- AIG Execs Returned $19M Of $45M In Pledged Repayments
- Paulson Agrees to Invest $77.9 Million in Conseco
- Former Citadel manager starts new hedge fund
- UBS in European shake-up
- CIT Says Chief Executive Peek to Resign at Year-End
- Banking on BofA to Find a Better Path
- Ex-Bear Stearns Executive Starts Mortgage Business in Phoenix
- Bloomberg buys BusinessWeek
- Intel Shares Jump After Forecast Tops Estimates
JPMorgan Third-Quarter Profit Surpasses Analysts’ Estimates – Bloomberg
JPMorgan Chase & Co., the second- largest U.S. bank by assets, said profit in the third quarter beat analysts’ estimates as fixed-income revenue surged.
Earnings climbed to $3.59 billion, or 82 cents a share, from $527 million, or 9 cents, in the same period a year earlier at the height of the financial crisis, the New York-based company said today in a statement. Twenty analysts surveyed by Bloomberg estimated earnings of 51 cents per share. Last year’s quarter included $640 million of losses tied to the takeover of Washington Mutual…..
Wall Street On Track To Award Record Pay – Wall Street Journal
…..Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007, according to an analysis of securities filings for the first half of 2009 and revenue estimates through year-end by The Wall Street Journal.
Total compensation and benefits at the publicly traded firms analyzed by the Journal are on track to increase 20% from last year’s $117 billion — and to top 2007’s $130 billion payout. This year, employees at the companies will earn an estimated $143,400 on average, up almost $2,000 from 2007 levels…….
London Bonuses May Rise or Match 2008 Payouts, McKinley Says - Bloomberg
Four out of five workers in London’s financial services industry expect their bonus to increase or at least match last year’s payout, according to a report by Morgan McKinley.
About 40 percent of London executives surveyed said they will get a similar bonus to 2008 and 39 percent said they would receive a larger payout, the survey of 200 financial services professionals found. About 60 percent said their bonus will equal a quarter of their base salary, the recruitment firm said…..
BofA Emails Show Pique at U.S. Over Dividends – Wall Street Journal
A Bank of America Corp. director wrote to another director in a January email that pressure from the federal government to slash the bank’s dividend meant “unfortunately it’s screw the shareholders,” according to people familiar with the exchange.
The previously undisclosed email was recently handed over to the House Oversight and Government Reform Committee and New York Attorney General Andrew Cuomo’s office, according to one of these people. The House committee and Mr. Cuomo’s office are conducting probes of securities firm Merrill Lynch & Co.’s takeover by Bank of America, as well as discussions in December and January about a Merrill-related U.S. bailout……
Geithner Aides Reaped Millions Working for Banks, Hedge Funds – Bloomberg
Some of Treasury Secretary Timothy Geithner’s closest aides, none of whom faced Senate confirmation, earned millions of dollars a year working for Goldman Sachs Group Inc., Citigroup Inc. and other Wall Street firms, according to financial disclosure forms.
The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford. Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund…..
AIG Advised to Limit Its Next Round of Bonuses – Washington Post
The Obama administration’s “pay czar” has advised American International Group to scale back $198 million in bonuses due next March to employees at its troubled Financial Products unit as company and government officials try to avoid another public uproar over pay packages at the bailed-out insurance giant.
Kenneth Feinberg, the U.S. Treasury’s point man for compensation, has indicated he wants future retention payments reduced at the troubled AIG Financial Products unit, according to a new report from the special inspector general overseeing the government’s financial rescue program…..
AIG Execs Returned $19M Of $45M In Pledged Repayments – Wall Street Journal
The U.S. Treasury is pressing American International Group Inc. (AIG) to reduce $198 million in scheduled retention payments as company and government officials continue to wrangle over pay packages that set off a political firestorm earlier this year.
A report from the special inspector general for the government’s $700 billion financial rescue plan said the Obama administration’s pay czar has informed AIG management that the retention payments for AIG’s financial products division should be reduced. Kenneth Feinberg, Treasury’s special master for executive compensation, has not indicated to AIG management what figure would be acceptable, according to a copy of the report obtained by The Wall Street Journal…..
Paulson Agrees to Invest $77.9 Million in Conseco – Bloomberg
Paulson & Co., the hedge fund that bet against subprime mortgages before the housing crisis, agreed to increase its stake in life insurer Conseco Inc. by buying $77.9 million in stock and warrants.
Paulson will own 9.9 percent of the common stock after the private share sale, the Carmel, Indiana-based insurer said in a statement. Paulson’s warrants will also convert to common stock at $6.50 a share. Conseco rose 79 cents, or 16 percent, to $5.78 at 5:41 p.m. in late New York trading…..
Former Citadel manager starts new hedge fund – Dow Jones via Chicago Tribune
A former Citadel Investment Group senior manager is launching a new hedge fund with three other ex-employees of the Chicago firm, a move that reunites a veteran trading team and adds to an expanding field of startups.
Ervin Shindell is starting a Chicago-based firm called RoundKeep Capital Advisors with investment managers Joseph Rotter, Robert Doherty and Robert Donath, each of whom spent between five and 10 years at Citadel, according to a marketing document for the new firm reviewed by The Wall Street Journal….
UBS in European shake-up – Financial Times
UBS is stepping up moves to reshape and streamline its asset management arm, by splitting out Switzerland from the rest of Europe and elevating the executive in charge of Switzerland.
This comes as UBS revealed the departure of Gabriel Herrera, UBS’s veteran head of asset management in Europe, Middle East and Africa, whose responsibilities had included Switzerland…..
CIT Says Chief Executive Peek to Resign at Year-End – Bloomberg
CIT Group Inc., the 101-year-old lender that may file for bankruptcy protection, said Chairman and Chief Executive Officer Jeffrey Peek plans to resign.
Peek, 62, joins Bank of America Corp. chief Kenneth Lewis and Morgan Stanley head John Mack, who have said they will step down in the past month. CIT’s board formed a search committee to find a new CEO, the New York-based company said in a statement today……
Banking on BofA to Find a Better Path – Wall Street Journal
Bank of America’s decision to waive attorney-client privilege and disclose the legal advice it received regarding its controversial acquisition of Merrill Lynch may seem like a small step, considering the complex litigation in which one of the country’s biggest banks has become embroiled. Yet to me, it’s a tipping point that causes me to view BofA—both as an investor and consumer—in a whole new light.
Full disclosure isn’t only the right thing to do, but also the best thing for shareholders. It suggests that Bank of America, admittedly with the pressure of $45 billion in government assistance and continuing intense scrutiny, may be one of the rare companies able to put shareholders’ interests ahead of management’s…..
Ex-Bear Stearns Executive Starts Mortgage Business in Phoenix – Bloomberg
Jeff Walton, one-time chief executive officer of residential mortgages for Bear Stearns Cos., is starting a company to make home loans on behalf of First Arizona Savings FSB in Phoenix, saying he’s confident the housing market has hit bottom.
Walton, whose former company collapsed last year as the value of its mortgage holdings plunged, is founding his business in a state with the nation’s third-highest foreclosure rate, according to Irvine, California-based Realtytrac Inc. Home prices in Phoenix declined 54 percent from June 2006 through May of this year, according to the S&P/Case-Shiller home price index of property resales….
Bloomberg buys BusinessWeek – CNNMoney
Looking to expand its reach beyond Wall Street, Bloomberg LP said Tuesday it would buy BusinessWeek magazine from McGraw Hill Cos.
Bloomberg, founded in 1981 by New York City Mayor Michael Bloomberg, is purchasing the 80-year-old weekly newsmagazine to tap into its audience of decision makers around the world. Terms of the agreement were not disclosed, but reports say Bloomberg is paying up to $5 million…..
Intel Shares Jump After Forecast Tops Estimates – Bloomberg
Intel Corp. rose as much as 6.9 percent in late trading after its sales forecast beat estimates by as much as $1 billion, setting the stage for a broader recovery in technology earnings.
Intel, the world’s biggest chipmaker, predicted fourth- quarter revenue of as much as $10.5 billion, topping the $9.5 billion average estimate in a Bloomberg survey. The company’s gross margin — a measure of profitability — may reach the highest level this decade……
Tags: AIG, Bank of America, Bear Stearns, Bonuses, CIT, Citadel, Compensation, Intel, John Paulson, JP Morgan, Paulson & Co, Tim Geithner, U.S. Treasury, UBS
