Buffett trades warrants for smaller stake in Goldman
By Ben Berkowitz and Lauren Tara LaCapra
(Reuters) – Warren Buffett has given up his chance to become Goldman Sachs Group Inc’s (GS.N: Quote, Profile, Research) largest shareholder by converting his warrants into a smaller stake in the bank at no additional cost to his Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research).
Buffett received the warrants as part of a 2008 deal during the depths of the financial crisis, when his investment in Goldman was seen as a vote of confidence in the firm. Under that deal, Berkshire had the right to buy about 43.5 million Goldman shares – or a roughly 9 percent stake – at an exercise price of $115 (75.83 pounds) per share, for $5 billion in total.
Buffett to take major Goldman Sachs stake in warrant deal
By Ben Berkowitz and Lauren Tara LaCapra
(Reuters) – Warren Buffett will become one of Goldman Sachs’ (GS.N: Quote, Profile, Research) ten largest shareholders essentially for free, after he and the bank amended a 2008 deal to exchange his potential profit on Goldman warrants for stock.
The exchange, which Goldman detailed on Tuesday, saves Buffett billions of dollars in upfront costs and lets Goldman minimize dilution to its stock. Under a 2008 deal, Buffett had held the right to acquire about 43.5 million shares of stock at an exercise price of $115.
Goldman Sachs, Berkshire amend crisis-era warrant deal
By Ben Berkowitz and Lauren Tara LaCapra
(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) will give Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) millions of shares in the bank in place of warrants that date to the financial crisis, a deal that saves Berkshire money upfront and reduces dilution risk for Goldman.
The deal will make Berkshire, the conglomerate led by investor Warren Buffett, one of Goldman’s 10 largest shareholders.
Wall Street bonuses to rise 15 pct this year – consultant
NEW YORK (Reuters) – Bonuses at Wall Street firms will rise 15 percent this year despite ongoing pressure from investors, regulators and politicians about compensation levels, according to compensation-consulting firm Johnson Associates Inc.
The projected rise in pay would come after a 5 percent increase in 2012, which was considered “disappointing,” Alan Johnson, head of the firm, said in a presentation to the Wall Street Compensation and Benefits Association that was released publicly on Friday.
Wall Street bonuses projected to rise 15 pct this year -consultant
NEW YORK, March 22 (Reuters) – Bonuses at Wall Street firms
will rise 15 percent this year despite ongoing pressure from
investors, regulators and politicians about compensation levels,
according to compensation-consulting firm Johnson Associates
Inc.
The projected rise in pay would come after a 5 percent
increase in 2012, which was considered “disappointing,” Alan
Johnson, head of the firm, said in a presentation to the Wall
Street Compensation and Benefits Association that was released
publicly on Friday.
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.
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.
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.
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.
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.
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