Lauren's Feed
Oct 18, 2012

Morgan Stanley posts higher adjusted earnings

Oct 18 (Reuters) – Morgan Stanley on Thursday
reported better-than-expected adjusted earnings for the third
quarter as it boosted revenue from trading bonds, long a sore
spot for the investment bank.

Income from continuing operations totaled $561 million, or
28 cents per share, compared with $64 million, or 2 cents per
share, a year earlier.

Oct 16, 2012

Goldman takes less risk, executives strike cautious tone

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) took less risk and earned less money from customers’ trading last quarter, even as the Wall Street bank reaped big gains from the rising values of its stock and bond investments.

The bank’s executives struck a cautious tone on a conference call with analysts, saying that events such as the U.S. presidential election and the European debt crisis will continue to weigh on earnings in the coming quarters.

Oct 16, 2012

Goldman Sach’s investment gains lead to profit beat

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc reported higher-than-expected quarterly earnings on Tuesday as revenue more than doubled on big gains in stocks and bonds that the Wall Street bank holds as investments.

However, return on equity – a measure of how the company wrings profit from its balance sheet – remained in a single-digit percentage range, and investment banking and trading results showed signs of weak client activity.

Oct 12, 2012

JPMorgan cuts banker pay, a sign of more frugal times on Wall Street

By Lauren Tara LaCapra

(Reuters) – JPMorgan Chase & Co’s (JPM.N: Quote, Profile, Research, Stock Buzz) investment bank set aside less revenue to pay employees last quarter, another sign that Wall Street bonuses are on the decline this year.

The investment bank put aside $2.07 billion for pay in the third quarter, or 32 percent of net revenue excluding a special accounting charge. That’s down from 41 percent a year ago.

Oct 5, 2012

Big funds seek to rein in pay at Wall Street banks

By Lauren Tara LaCapra and Dan Wilchins

(Reuters) – The days when Wall Street banks could blithely hand out half their revenue in compensation to their staff without a murmur from shareholders have come to an end.

In an era of leaner times and tighter regulation, big mutual funds and pensions are growing more vocal in pushing executives at investment banks to rein in pay and bonuses and consider more staff cuts. Investors worry that bank employees are getting too big a piece of a shrinking pie, leaving shareholders a much smaller slice.

Oct 4, 2012

Analysis: Big funds seek to rein in pay at Wall Street banks

By Lauren Tara LaCapra and Dan Wilchins

(Reuters) – The days when Wall Street banks could blithely hand out half their revenue in compensation to their staff without a murmur from shareholders have come to an end.

In an era of leaner times and tighter regulation, big mutual funds and pensions are growing more vocal in pushing executives at investment banks to rein in pay and bonuses and consider more staff cuts. Investors worry that bank employees are getting too big a piece of a shrinking pie, leaving shareholders a much smaller slice.

Sep 19, 2012
via Unstructured Finance

The new Goldman way: Less cushy compensation?

By Lauren Tara LaCapra

On a conference call to discuss Goldman Sachs’ new chief financial officer yesterday, an analyst asked departing CFO David Viniar why he was leaving when the stock is at a historic low.

Viniar avoided the question by joking that his successor, Harvey Schwartz, would trump that performance. But some investors think they have a better way to fix Goldman’s stock slump: cut back further on comp.

Sep 19, 2012

Goldman names new CFO, heralding end of an era

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) has named senior trading executive Harvey Schwartz to replace David Viniar as chief financial officer, the latest in a series of executive shuffles as the investment bank prepares for a change in top management.

Schwartz, 48, is among a small group of executives who are considered potential candidates to take over as chief executive when Lloyd Blankfein, eventually steps down.

Sep 18, 2012

Goldman names Schwartz to CFO role as Viniar retires

Sept 18 (Reuters) – Goldman Sachs Group Inc’s
longtime chief financial officer, David Viniar, will retire at
the end of January and be replaced by Harvey Schwartz, the
current global co-head of securities, the investment bank said
on Tuesday.

Schwartz, 48, joined Goldman in 1997 from Citibank and is
among a small group of executives who are considered candidates
for the chief executive position when current CEO Lloyd
Blankfein eventually steps down.

Sep 18, 2012

Morgan Stanley infrastructure fund hit by Volcker rule

By Lauren Tara LaCapra and Greg Roumeliotis

(Reuters) – A U.S. regulation that limits how much of its own capital a bank can put at risk is causing headaches for Morgan Stanley as it prepares to raise a new multi-billion-dollar global infrastructure fund, people familiar with the situation said.

The regulation, called the Volcker rule, puts a cap on the amount of capital that Morgan Stanley (MS.N: Quote, Profile, Research) can pledge to the new fund. That means senior executives at Morgan Stanley Infrastructure Partners will have to make do with a smaller share of the fund’s profits, the sources said.