On Friday, the LA Times published the of pay for Lehman Brothers' top 50 employees in 2007. That's employees as in managing directors and below: pay for "named corporate officers" like Dick Fuld was publicly disclosed. This is how much you make if you're not running the company, but just working there and making lots of money.
Re-reading can lead you to real gems. Going back over JPMorgan’s annual letter to shareholders, I couldn’t believe that the first time around I missed this quote in the third paragraph of the first page:
In 1996, Richard Parsons joined the board of directors of Citicorp. Two years later, in 1998, Citicorp’s board approved its merger with Travelers – a merger that was illegal at the time, since it violated the Glass-Steagall Act. But no matter, in 1999, the Glass-Steagall Act was repealed, allowing the creation of Citigroup to go through unimpeded. There was no indication at the time that Parsons objected at all to the way that the law was changed to allow the creation of a financial services behemoth.
Goldman Sachs reported earnings this morning and the good news was that things weren’t as bad as people thought they were going to be. That doesn’t mean Goldman had a good quarter, however: Both revenues and earnings were down compared to the same period last year. Long-term pessimism regarding the firm’s earnings power remains.
This morning, JPMorgan reported $5.4 billion in earnings, or $83 million per weekday. While management trumpeted the increased strength of the company’s “fortress balance sheet” (trademark pending), they also pushed back on a Bloomberg report that a bank division called the Chief Investment Office had shifted from risk management toward large-scale speculation.
from Felix Salmon:
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from Felix Salmon:
Welcome to the Counterparties email! The sign-up page is here, it’s just a matter of checking a box if you’re already registered on the Reuters website. Send suggestions, story tips and complaints to Counterparties.Reuters@gmail.com