Lauren's Feed
Jul 2, 2012
via Unstructured Finance

S&P calls baloney on Wall Street’s “cyclical” profit view

By Lauren Tara LaCapra

Ask a Wall Street CEO whether his bank will be able to make as much money as it used to make, once customers start trading and doing deals again. He will inevitably respond with some form of “Yes!”

Ask just about anyone else with a shred of common sense and the answer is more along the lines of “hahaha…you’re kidding, right?”

Jun 28, 2012

Global investment banking fee income fell 25 pct in Q2

LONDON/NEW YORK, June 27 (Reuters) – Global investment
banks’ fee income dropped by about 25 percent in the second
quarter, reaching its lowest level since early 2009 as the
widening euro zone crisis weighed on securities underwriting and
merger activity, Thomson Reuters data show.

The fees totalled nearly $14 billion in the second quarter,
down from more than $18 billion in the first quarter of 2012.
Year to date, fees have totaled $32 billion, down 25 percent
from the same period in 2011.

Jun 28, 2012

Goldman trims U.S. staff: sources

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) trimmed staff in its U.S. operations on Thursday, amid a slowdown in capital markets activity, three people familiar with the matter said.

The investment bank cut several dozen jobs at its offices in New York, New Jersey and Salt Lake City, Utah, said the people, who spoke under the condition of anonymity.

Jun 25, 2012

Banks fight Fed’s push to make them less entwined

By Lauren Tara LaCapra

(Reuters) – Wall Street is ramping up a campaign against rules that are designed to prevent financial firms from being too interconnected, arguing that the well-intended regulations could backfire and hurt markets.

The rules, which limit financial institutions from having too much exposure to any one party, have not grabbed nearly as much attention as the Volcker rule. But Wall Street banks fear they could hurt their profits as much – if not more.

Jun 12, 2012

Morgan Stanley to drop Smith Barney name-Gorman

June 12 (Reuters) – Morgan Stanley’s brokerage joint
venture with Citigroup unit, Morgan Stanley Smith Barney,
will eventually drop the Smith Barney name, the investment
bank’s chief executive said at an investor conference Tuesday.

The name change, to Morgan Stanley Wealth Management, has
been the subject of speculation for more than a year, but Morgan
Stanley Chief Executive James Gorman for the first time
confirmed the branding plan in a public setting.

Jun 5, 2012

Analysis: On Wall Street, few places to hide as jobs ax hovers

By Lauren Tara LaCapra

(Reuters) – Wall Street bankers are bracing for another round of job cuts as a downturn in the global economy cuts into earnings from dealmaking, capital raising and lending.

Investors, consultants and analysts say that the big banks are just not bringing in the revenue needed to keep their workforces at current levels, especially given the cost of complying with new regulations.

Jun 5, 2012

On Wall St, few places to hide as jobs ax hovers

June 5 (Reuters) – Wall Street bankers are bracing for
another round of job cuts as a downturn in the global economy
cuts into earnings from dealmaking, capital raising and lending.

Investors, consultants and analysts say that the big banks
are just not bringing in the revenue needed to keep their
workforces at current levels, especially given the cost of
complying with new regulations.

Jun 1, 2012

How Morgan Stanley sank to junk pricing

June 1 (Reuters) – The bond markets are treating Morgan
Stanley (MS.N: Quote, Profile, Research) like a junk-rated company, and the investment
bank’s higher borrowing costs could already be putting it at a
disadvantage even before an expected ratings downgrade this
month.

Bond rating agency Moody’s Investors Service has said it may
cut Morgan Stanley by at least two notches in June, to just two
or three steps above junk status. Many investors see such a cut
as all but certain.

Jun 1, 2012

Analysis: How Morgan Stanley sank to junk status

By Lauren Tara LaCapra

(Reuters) – The bond markets are treating Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) like a junk-rated company, and the investment bank’s higher borrowing costs could already be putting it at a disadvantage even before an expected ratings downgrade this month.

Bond rating agency Moody’s Investors Service has said it may cut Morgan Stanley by at least two notches in June, to just two or three steps above junk status. Many investors see such a cut as all but certain.

May 24, 2012

Goldman’s annual meeting: tame and tweeted

, May 24 (Reuters) – For all the security
staff, rules of conduct and a warning that troublemakers would
be kicked out, the most noteworthy event at Goldman Sachs Group
Inc’s annual meeting on Thursday was a mild tweet.

“We are now live on Twitter (finally) at the GS Annual
Meeting,” Goldman’s Twitter account said in its first tweet at
9:38 a.m. on Thursday. “Follow us here for updates on our work,
our research, and our people.”