Lauren's Feed
Oct 24, 2013

Lazard profit jumps as asset management revenue rises

Oct 24 (Reuters) – Investment bank and asset manager Lazard
Ltd reported better-than-expected quarterly earnings on
Thursday, as stock-market gains boosted revenue in its asset
management unit, and its cost-cutting program began to bear
fruit.

Lazard is on track to meet operating goals laid out last
year, and is now investing some of its $160 million in annual
savings back into business growth, Chief Executive Kenneth
Jacobs said in an interview.

Oct 21, 2013

Goldman Vice Chairman Evans to retire at year-end

NEW YORK, Oct 21 (Reuters) – Goldman Sachs Group Inc
Vice Chairman J. Michael Evans will retire from his position at
year-end, the bank said on Monday, eliminating a top rival of
Chief Operating Officer Gary Cohn in the race to become the next
head of Wall Street’s biggest investment bank.

Evans, 56, is one of the most senior executives at Goldman
and has led a number of big divisions. He is global head of
growth markets, and played a central role in Goldman’s expansion
into Asia as well as its reputational rehabilitation after the
financial crisis.

Oct 21, 2013

Exclusive: Goldman Vice Chairman Evans to retire at year’s end – memo

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) Vice Chairman J. Michael Evans will retire from his position at year-end and become a senior director, according to an internal memo viewed by Reuters.

Evans, one of the most senior executives at Wall Street’s biggest investment bank, and global head of growth markets, played a central role in Goldman’s expansion into Asia. He was one of several executives that had been tipped to replace current Chief Executive Lloyd Blankfein.

Oct 21, 2013

Wall Street banks learn how to survive in staged cyber attack

NEW YORK (Reuters) – A few months ago, a group of Wall Street banks fashioned a risk-manager’s worst nightmare to determine how they would survive. Luckily, it was all pretend.

In a staged simulation called Quantum Dawn 2, bank executives in charge of operations, technology and crisis planning were tasked with detecting how a massive cyber attack was unfolding in the markets – but each one only got to see a tiny red flag waving in a sea of information.

Oct 18, 2013

Morgan Stanley profit beats Street as equity trading surges

By Lauren Tara LaCapra

(Reuters) – Morgan Stanley posted a higher-than-expected quarterly profit on Friday as stock trading revenue jumped 31 percent, a surprisingly strong performance in a quarter when most rivals posted smaller gains or even declines in that business.

The rise in stock trading revenue offset most of the decline in fixed-income, currency, and commodity trading, where revenue fell 44 percent. Morgan Stanley has had difficulty with fixed-income trading for years, but in the third quarter weak market conditions also shook most of the bank’s competitors.

Oct 17, 2013

Goldman slashes pay as revenue plunges

Oct 17 (Reuters) – Goldman Sachs Group Inc slashed
employee compensation costs by 35 percent in the third quarter
as bond-trading revenue plunged, an unusual step that signals
the bank’s concern about performance for the rest of the year.

Revenue from trading fixed-income, currency and commodity
products for clients, one of the bank’s biggest businesses,
tumbled 44 percent in the quarter, Goldman reported on Thursday.
Excluding an accounting adjustment, the drop was 47 percent, a
much sharper decline than those posted by rivals. The bank’s
shares were down 2.4 percent in late-morning trading to $158.43.

Oct 17, 2013

Goldman third quarter revenue down 20 percent, bank slashes costs

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) on Thursday said third-quarter revenue plunged 20 percent, hurt by weak mortgage and bond-trading results, but profit dropped only slightly as the Wall Street bank slashed compensation and other expenses.

Revenue from trading fixed-income, currency and commodity products for clients, one of the bank’s biggest businesses, plunged 44 percent, a much sharper decline than those posted by rivals. Goldman said revenue from investing its own money in bonds and loans fell 46 percent. The bank’s shares fell 2.6 percent in pre-market trading.

Oct 17, 2013

Goldman 3rd-qtr revenue down 20 pct, bank slashes costs

Oct 17 (Reuters) – Goldman Sachs Group Inc on
Thursday said third-quarter revenue plunged 20 percent, hurt by
weak mortgage and bond-trading results, but profit dropped only
slightly as the Wall Street bank slashed compensation and other
expenses.

Revenue from trading fixed-income, currency and commodity
products for clients, one of the bank’s biggest businesses,
plunged 44 percent, a much sharper decline than those posted by
rivals. Goldman said revenue from investing its own money in
bonds and loans fell 46 percent. The bank’s shares fell 2.6
percent in pre-market trading.

Oct 16, 2013

As companies plan for U.S. default, business may take a hit

NEW YORK (Reuters) – Delayed investments and purchases by companies and investors struggling to limit their exposure to financial harm from a possible U.S. debt default is contributing to a slowdown in business activity, executives said.

Investment firms and big Wall Street banks, including PIMCO, Fidelity Investments, Blackrock Inc (BLK.N: Quote, Profile, Research, Stock Buzz), Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), said they had sold Treasury bonds that expire in the coming weeks, either to protect clients’ investment portfolios or their own balance sheets against losses in the event of a U.S. default.

Oct 16, 2013

For U.S. bond traders, the Grinch may steal bonuses

NEW YORK, Oct 15 (Reuters) – With anemic bond trading
revenue over the past few months hurting Wall Street profits,
pay cuts and even layoffs are back on the table just when the
future had started looking up for traders.

Overall, bonuses on fixed-income, currency, and commodity
trading desks will likely be down 10 percent to 15 percent, said
Alan Johnson, head of the Wall Street compensation consulting
firm Johnson Associates. It could be the third or fourth year in
a row in which some Wall Street bond traders get $0 bonus
checks, he added.