Lauren's Feed
Mar 22, 2013

Exclusive: Fed pushes banks to ignore rivals when setting bonuses

NEW YORK (Reuters) – The Federal Reserve is pushing banks to ignore competitors’ performance when awarding bonuses, and focus squarely on their own profitability, according to pay consultants and other people familiar with the matter.

The central bank is hoping to change a deeply ingrained habit on Wall Street: awarding bonuses to senior executives based in part on whether the company’s performance lagged or beat rivals.

Mar 22, 2013

Fed pushes banks to ignore rivals when setting bonuses

NEW YORK, March 22 (Reuters) – The Federal Reserve is
pushing banks to ignore competitors’ performance when awarding
bonuses, and focus squarely on their own profitability,
according to pay consultants and other people familiar with the
matter.

The central bank is hoping to change a deeply ingrained
habit on Wall Street: awarding bonuses to senior executives
based in part on whether the company’s performance lagged or
beat rivals.

Mar 21, 2013
via Unstructured Finance

Once-obese Goldman analyst becomes fitness evangelical, gym CEO

Wall Street is shrinking, but so are some of its bankers.

Eight years ago, Goldman Sachs Group’s Kishan Shah weighed 400 pounds and couldn’t find a suit that fit his 62” waist for a job interview. Now he’s 195 pounds, and he’s quitting Goldman to spread the gospel of healthy weight loss as chief executive of a chain of gyms for obese Americans.

“I made a vow that day to focus on diet and exercise, and I lost over 200 pounds – no surgeries, no fad diets, no trainers,” Shah said in a video chat this month with First Lady Michelle Obama.

Mar 18, 2013

Analysis: JPMorgan and other banks tinker with risk models

NEW YORK (Reuters) – In 2011, senior executives at JPMorgan Chase & Co told one of the bank’s trading and hedging groups to scale back its riskier positions as new regulations would make these bets much more expensive to maintain.

The group, called the Chief Investment Office (CIO), was asked to cut risk-weighted assets, a key measurement that regulators use when assessing a bank’s stability and how much capital it needs to hold, according to a U.S. Senate subcommittee report on Thursday.

Mar 18, 2013

JPMorgan and other banks tinker with risk models

NEW YORK, March 18 (Reuters) – In 2011, senior executives at
JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) told one of the bank’s trading and
hedging groups to scale back its riskier positions as new
regulations would make these bets much more expensive to
maintain.

The group, called the Chief Investment Office (CIO), was
asked to cut risk-weighted assets, a key measurement that
regulators use when assessing a bank’s stability and how much
capital it needs to hold, according to a U.S. Senate
subcommittee report on Thursday.

Mar 13, 2013

Goldman Sachs ventures west for annual meeting in Salt Lake City

NEW YORK, March 13 (Reuters) – Goldman Sachs Group Inc
said it will hold its annual meeting in Salt Lake City
this year, the first time the Wall Street bank is inviting
shareholders to cast their votes at a gathering outside the New
York metropolitan area.

“We’re delighted to hold our annual shareholder meeting in
what has become our second-largest office in the U.S.,” Chief
Executive Lloyd Blankfein said in a statement provided to
Reuters.

Mar 4, 2013

Goldman finds new way to do buyouts in face of Volcker

NEW YORK, March 4 (Reuters) – Goldman Sachs Group Inc
is trying to find ways to keep investing in the profitable,
albeit risky, business of buying and selling companies without
crossing a rule that will restrict private equity investing,
three sources familiar with the new business said over the past
week.

The Volcker rule – named for former Federal Reserve Chairman
Paul Volcker and part of the Dodd-Frank financial reform law -
is expected to limit bank investments in private equity funds,
but not necessarily private equity-style investments outside of
a formal fund structure. The rule’s main goal is to prevent
federally insured banks from gambling in the markets or taking
on too much risk with hedge funds and private-equity funds.

Mar 4, 2013

Exclusive: Goldman eyes Volcker workaround for buyouts

By Jessica Toonkel and Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc is trying to work around a financial reform regulation to keep investing in the profitable, albeit risky, business of buying and selling companies, three sources familiar with the new business said over the past week.

The Volcker rule – named for former Federal Reserve Chairman Paul Volcker and part of the Dodd-Frank financial reform law – is expected to limit bank investments in private equity funds, but not necessarily private equity-style investments outside of a formal fund structure.

Mar 4, 2013

Goldman eyes Volcker workaround for buyouts

March 4 (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) is trying
to work around a financial reform regulation to keep investing
in the profitable, albeit risky, business of buying and selling
companies, three sources familiar with the new business said
over the past week.

The Volcker rule – named for former Federal Reserve Chairman
Paul Volcker and part of the Dodd-Frank financial reform law -
is expected to limit bank investments in private equity funds,
but not necessarily private equity-style investments outside of
a formal fund structure.

Mar 1, 2013

Goldman trims risk-taking to lowest level in 7 years

March 1 (Reuters) – Goldman Sachs Group Inc reduced
its risk-taking for a third straight year, with potential losses
from trading positions dropping to the lowest level in seven
years, reflecting a more cautious stance towards markets.

The Wall Street bank’s average daily value at risk last year
was $86 million, down 24 percent from the preceding year,
according to a filing with the U.S. Securities and Exchange
Commission on Friday.