(Reuters) – Investment banks Morgan Stanley and Goldman Sachs Group Inc posted better-than-expected quarterly earnings on Thursday, helped by gains in merger advisory and stock underwriting.
The results underscored how businesses viewed as stodgy before the financial crisis are becoming critical drivers of earnings growth for investment banks now. Goldman’s fixed-income trading revenue plunged during the first quarter, both for trades it did for customers and investments on its own account.
By Lauren Tara LaCapra and Anil D’Silva
(Reuters) – Morgan Stanley reported a 55 percent jump in first-quarter earnings as higher revenue from its institutional securities business augmented another strong quarter from wealth management, sending shares in the Wall Street bank higher.
The sixth-largest U.S. bank by assets reported net income applicable to the company of $1.45 billion, or 74 cents per share, compared with $936 million, or 48 cents per share, a year earlier.
April 17 (Reuters) – Goldman Sachs Group Inc reported
an 11 percent drop in first-quarter profit on Thursday as client
activity remained constrained and fixed-income revenue shrank.
The Wall Street bank said its net income fell to $1.95
billion, or $4.02 per share, in the first three months of the
year from $2.19 billion, or $4.29 per share, in the same period
NEW YORK (Reuters) – When Goldman Sachs Group Inc filed its shareholder proxy earlier this month, it was free of a proposal that has become increasingly popular among corporate governance activists: a demand for more disclosure about lobbying.
Goldman’s big Wall Street rivals can’t say the same. JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc and Morgan Stanley all face lobbying-disclosure proposals this year. Some activist shareholders want the banks to be more transparent about their lobbying objectives, disclose more about the trade groups they belong to and say how much money they spend to influence policy.
WASHINGTON/NEW YORK (Reuters) – The U.S. Federal Reserve’s drive to wean Wall Street off risky funding sources is expected to bring more financial pain to the biggest U.S. banks in the coming months, analysts warned on Wednesday.
They said bank regulators’ release this week of tough new limits on debt funding is just a preview of other rules that may have even more bite.
NEW YORK (Reuters) – A group of small brokerages and large commodities companies convinced lawmakers to tweak a rule that they say would have made derivatives trading more expensive for them and sent more business to Wall Street banks that already dominate the market.
Companies including INTL FCStone Inc, Nomura Holdings Inc, Cargill Inc and Royal Dutch Shell Plc lobbied a congressional committee to change a rule proposed by the U.S. Commodities Futures Trading Commission on how much capital they must hold against derivatives trades as dealers. Cargill and Shell have derivatives trading arms.
NEW YORK (Reuters) – Goldman Sachs Group Inc’s board lifted a key performance target that the bank must reach for Chairman and Chief Executive Lloyd Blankfein to redeem a new long-term incentive stock award, according to a proxy filing on Friday.
In addition to his $23 million compensation package for 2013, the board offered Blankfein the potential to receive restricted stock worth $6 million at the time of the award.
NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) Chief Financial Officer Ruth Porat on Wednesday called on government and corporate leaders to encourage the promotion of women into senior business roles, saying the number of women in top positions at U.S. corporations is “an embarrassment.”
Porat, one of the most powerful women on Wall Street, said she supports a law proposed by New York Senator Kirsten Gillibrand that would create national paid family leave, and help women to have children without leaving the workforce. She also encouraged businesses to implement protocols that ensure more women are promoted to senior ranks or given positions on boards of directors.
NEW YORK (Reuters) – James Gorman, Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) chief executive and chairman, was awarded total compensation of $12 million for 2013, double what he got the previous year, the bank said in its proxy filing on Friday.
Gorman’s compensation for 2013 could rise to $18 million under a long-term incentive plan, if he meets certain performance targets in the future, the filing said.
NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research) shareholders will find out this week whether the U.S. Federal Reserve will allow the bank to start returning capital to shareholders in a meaningful way for the first time since the financial crisis.
But even if the Wall Street bank gets the Fed’s blessing to buy back more shares and potentially raise its dividend, it is unlikely to hit a shareholder return target Chief Executive James Gorman set out for this year, analysts and investors said.