investment banks

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Battered Citigroup Plans Major Layoffs

Firm will cut 10% of its investment-banking group

(Newser) - After being in the red for two quarters, Citigroup will this week hand out pink slips in its investment-banking division, looking to sack 10% of the group’s 65,000 employees. The move, which would eliminate entire trading desks worldwide, is unusually severe, the Wall Street Journal says. CEO Vikram...

Morgan Stanley Profits Fall 57%
 Morgan Stanley Profits Fall 57%  
Earnings
Jun 18, 2008 8:00 AM CDT

Morgan Stanley Profits Fall 57%

Business bad all around, with declines in sales, trading, and investment banking

(Newser) - Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to...

Shareholders Rubber-Stamp Bear Selloff

84% OK JPMorgan buyout; chairman 'sad' over firm's demise

(Newser) - The buyout of Bear Stearns neared finality today with 84% of shareholders voting in favor of acquisition by JPMorgan Chase, the Wall Street Journal reports. Chairman James Cayne shared his feelings publicly with shareholders about the bank’s demise for the first time: "I personally apologize,” he stated,...

'Monster' Markets Brought World to Edge: German Prez

Köhler, former head of IMF, rips lust for profit, calls for tightened regulaion

(Newser) - Germany's president, a former head of the International Monetary Fund, blasted the system of financial markets responsible for the global credit crisis as a “monster," Der Speigel reports today. Horst Köhler said the world “came close to a collapse of the global financial markets" as the...

Banks Face New Loan Crisis: Rebuilding Reserves

'Provisions' may turn out not to be large enough

(Newser) - Within Bank of America’s disappointing first-quarter earnings was an unwelcome harbinger for the banking industry, the Wall Street Journal reports. BofA’s results were dragged down by huge additions to its loan-loss provision, an expense many other banks will also record soon. Given current credit conditions, many banks will...

Lehman Is Selling $3B in Shares
 Lehman Is Selling $3B in Shares 
Mar 31, 2008 7:25 PM CDT

Lehman Is Selling $3B in Shares

Firm seeks to calm fears of another Bear Stearns disaster

(Newser) - Lehman Brothers is selling $3 billion in new shares to allay fears after its stock dropped 42% this year, Bloomberg reports. "We still maintain that we don't need capital, but we've realized that perception is the dominant issue in today's markets,'' said CFO Erin Callan. Lehman fell up...

Paulson Unveils Regulatory Reforms: No Quick Fix

Focus of plan including new oversight for Fed extends beyond current woes

(Newser) - The "transformative" changes Henry Paulson has in mind for the regulation of the US economy will take years to implement, the Treasury Secretary said today. The plan would greatly increase the Fed's oversight powers, regulate the insurance industry for the first time, and add federal oversight of the mortgage...

Lehman Sues to Reclaim $350M Lost in Swindle

Says 2 workers at Japanese trading firm ran a Ponzi scheme

(Newser) - Lehman Brothers is suing Japanese trading company Marubeni, seeking to recover $350 million lost in a scam apparently engineered by two of the company’s employees. The scheme involved forged documents purportedly bearing a board member’s seal and two meetings at Marubeni headquarters, including one with an impostor posing...

Japanese Swindle Could Cost Lehman $250M

Forged docs from Japanese firm secured big loans

(Newser) - Possible fraud involving forged documents from a Japanese trading firm may have cost Lehman Brothers $250 million, the Wall Street Journal reports. The investment bank loaned funds to a Japanese biotech firm last year; the transaction was secured by top trading company Marubeni Corp. But the biotech firm filed for...

Paulson Wants Closer Tabs on Investment Banks

More transparency needed if they're to borrow from Fed, Treasury chief says

(Newser) - Treasury Secretary Henry Paulson said today that investment banks owe the government more information about their financial condition if they are occasionally allowed to borrow money from the Federal Reserve, the New York Times reports. Paulson seemed to call for tighter regulations before calling the recent bailout of Bear Stearns...

Silicon Valley's Prodigal Son Comes Home

Frank Quattrone seeks to repair his rep with new investment bank

(Newser) - Silicon Valley prodigal son Frank Quattrone is staging a comeback, poised to debut his new tech-centered investment bank Qatalyst—after years recovering from federal obstruction-of-justice charges. But now that he's back, the question is whether the industry will welcome home an errant child with open arms. Probably, BusinessWeek writes—if...

Auction-Rate Troubles Hit Silicon Valley Startups

Private companies hurting for cash

(Newser) - A freeze in the market for a type of securities known as auction-rate securities may cause big cash-flow problems for many Silicon Valley startups. A number of private companies have large chunks of cash tied up in the securities, reports the Wall Street Journal. Now, buyers have dried up and...

In Turnabout, '07 Mess Hurt Brokers More

Complex securities backfired on insiders, not Joe Investor

(Newser) - Ordinary investors did fairly well in 2007, but their brokers and other big financial players lost their shirts in the subprime collapse. How did that happen? The New York Times observes that “parallel markets” have developed in recent years, with stocks and bonds available to most, and specialized, acronym-heavy...

Goldman Sachs Awards CEO $68M Bonus
Goldman Sachs Awards CEO $68M Bonus
Dec 21, 2007 8:07 PM CST

Goldman Sachs Awards CEO $68M Bonus

Blankfein nets huge payday after bank avoids subprime tank

(Newser) - Goldman Sachs gave CEO Lloyd Blankfein a $67.9 million bonus for 2007, believed to be one of the largest such payouts in history, MarketWatch reports. The bonus includes $26.8 million in cash and $41.1 million in stocks. Goldman succeeded this year while rivals foundered in the subprime...

Goldman Earnings Hit Record
Goldman
Earnings Hit Record
Dec 18, 2007 9:25 AM CST

Goldman Earnings Hit Record

Firm soars on trading, M&A, shorting subprime as others falter

(Newser) - Still sitting pretty above the subprime fray, Goldman Sachs trumped estimates today and reported a 2% jump in profits in the fourth quarter, breaking the annual profit record for the fourth straight year. Goldman shorted subprime mortgages, profiting from the disaster that sank competitors, and in the quarter actually boosted...

Goldman Sits High and Dry in Credit Crunch

Wall Street envies lone investment firm that got it right

(Newser) - When Goldman Sachs reported $2.85 billion in third-quarter profits, it sounded like an “I told you so.” As most financials reported credit-crunch pratfalls, Goldman alone had read the signs and gone the right way on mortgages. “You’d have to give them an A-plus,” said...

Shake-up Rocks I-Banking Unit After Deep Losses

Bank of America hires new unit president, announces lay-offs

(Newser) - After last week’s dismal report card for its investment arm, Bank of America replaced that unit’s president and announced a slate of reforms to recharge the business. Gene Taylor abruptly retired and will be replaced by Brian Moynihan, the bank’s president of Global Wealth and Investment Management,...

Death Threats Sent to Goldman Sachs
Death Threats Sent to
Goldman Sachs
Jul 6, 2007 12:10 PM CDT

Death Threats Sent to Goldman Sachs

'We are inside. You cannot stop us,' read anonymous letters

(Newser) - Investment powerhouse Goldman Sachs has been the subject of menacing letters sent to newspapers across the country, prompting an investigation by the FBI. "Hundreds will die,"  warn the  letters that have been traced back to Queens, New York. "We are inside. You cannot stop us."

Mortgage Trouble Rattles Wall Street
Mortgage Trouble Rattles Wall Street
Jun 14, 2007 10:54 AM CDT

Mortgage Trouble Rattles Wall Street

Bear Stearns, Goldman earnings reflect subprime bloodbath

(Newser) - Bear Stearns posted a 10% drop in quarterly earnings today, the latest victim of the subprime collapse. The country's second-largest mortgage-bond underwriter posted profits well below expectations, down nearly 33% from last year to $362 million. Goldman Sachs escaped bruised but more-or-less unscathed, with profits up 1% on the strength...

Tishman, Lehman Close REIT Deal
Tishman, Lehman Close REIT Deal
May 29, 2007 11:50 AM CDT

Tishman, Lehman Close REIT Deal

$13.5B offer for apartment giant marks major privatization

(Newser) - In a penthouse-level play, real estate developer Tishman Speyer Properties and investment bank Lehman Brothers will spend $13.5 billion to buy the nation's second-largest apartment owner. The $60.75 per share offer for real estate trust Archstone-Smith, confirmed this morning, will take the company private in a deal worth...

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