Banking Reporter, New York
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Jul 30, 2010

Analysis: Wall Street eyes breather from Washington’s regulation

NEW YORK (Reuters) – Fresh off the exhausting financial regulatory reform debate, Wall Street is looking for a break after the midterm elections in the form of a friendlier Washington.

Expected Republican gains at the congressional elections are likely to tone down some of the anti-Wall Street rhetoric coming from Democrats since President Barack Obama took office last year. Democrats used their majorities to push through reform but alienated banks in the process.

Jul 28, 2010

Lazard profit rises, tops expectations

NEW YORK, July 28 (Reuters) – Investment bank Lazard Ltd’s
(LAZ.N: Quote, Profile, Research, Stock Buzz) quarterly earnings soared a better-than-expected 58
percent, helped by strong asset management results.

The New York-based firm said its key financial advisory
business was growing, even as a sluggish mergers and
acquisitions market and concerns about European economics have
plagued competitors and weighed on results.

Jul 27, 2010

Analysis: Goldman Sachs still under a microscope

NEW YORK (Reuters) – Goldman Sachs Group Inc has put SEC civil fraud charges to rest, but a host of regulators and lawmakers are still on its trail, leaving the firm with headaches as it tries to move on.

A federal commission investigating the causes of the financial crisis has been among the most visible challengers, suggesting it could hire outside accountants to audit the data Goldman keeps on its derivatives businesses.

Jul 22, 2010

Analysis: Wall St banks scale back pay – for now

NEW YORK (Reuters) – Wall Street’s surviving titans, eager to impress regulators writing the rules that will govern the financial industry, are scaling back their lavish and much-maligned pay practices, at least for now.

Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) have long paid out about half their revenue as compensation, a sum unequaled in any other major economic sector, but standard in a business famous for paying multimillion-dollar bonuses to its rainmaker bankers and traders.

Jul 22, 2010

Analysis: Bank pay guarantees under spotlight as hiring returns

HONG KONG/NEW YORK (Reuters) – Investment banks are once again luring top rival talent with generous guaranteed pay packages that may convince a top banker to jump ship, while also inviting scrutiny from regulators across the globe.

Paying a banker multi-millions regardless of performance flies in the face of the global regulatory effort aimed at reining in mega packages and discouraging excessive risk-taking in the post financial crisis world.

Jul 21, 2010

Morgan Stanley lifted by new business

NEW YORK (Reuters) – Has Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) finally turned the corner? It’s starting to look that way.

Morgan Stanley shares surged 8 percent after the Wall Street bank reported higher-than-expected second-quarter profit on Wednesday, a sign that its hiring spree of traders and salespeople is starting to pay off. Shares at one point rose more than 10 percent, helping the firm to its biggest single-day jump in share price in more than a year.

Jul 20, 2010

Goldman earnings fall on trading slump and charges

NEW YORK (Reuters) – Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) could turn out to be a mere mortal after all.

The investment bank said on Tuesday that quarterly earnings tumbled 82 percent, steeper than analysts had forecast. A trading and underwriting slump tempered profits and raised questions about whether the firm is losing its ability to outsmart the competition.

Jul 20, 2010

Goldman Sachs posts lower earnings; shares drop

NEW YORK, July 20 (Reuters) – Goldman Sachs Group Inc
(GS.N: Quote, Profile, Research) posted lower second-quarter earnings, hurt by its
settlement of U.S. Securities and Exchange Commission civil
fraud charges and the UK tax on bank executive bonuses.

The bank, which resolved a major headache last week by
paying $550 million to settle the SEC case, fell short of
analysts’ expectations.

Jul 16, 2010

AIG to pay $725 mln to settle fraud case

NEW YORK, July 16 (Reuters) – American International Group
Inc (AIG.N: Quote, Profile, Research, Stock Buzz) agreed to pay $725 million to settle a long-running
securities fraud lawsuit led by three Ohio public pension
funds, in one of the largest class action settlements in U.S.

AIG, which is nearly 80 percent owned by the U.S.
government, would pay $175 million within 10 days of
preliminary court approval of the settlement with a class of
AIG shareholders.

Jul 16, 2010

Analysis: Goldman Sachs settlement may extend CEO tenure

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) Chief Executive Lloyd Blankfein may have saved his job by reaching a $550 million settlement with regulators, a relatively mild rebuke for a firm accustomed to pumping out billions of dollars in profits each quarter.

Blankfein and his firm have suffered a tumultuous three months since the U.S. Securities and Exchange Commission announced civil fraud charges against Goldman, but now the CEO — who has led the firm since 2006 — can take credit for calming investors and nervous employees.

    • About Steve

      "Steve Eder, based in New York, covers investment banks for Reuters. He came to Reuters in May, 2009, after working as an investigative reporter for the Toledo Blade newspaper in Ohio. Eder has written about plant closings, the health insurance industry, poverty, and public corruption, helping to expose Ohio's 'Coingate' scandal. He also completed assignments to India and South Korea. Since joining Reuters, Eder has written about the aftermath of the financial crisis, Goldman Sachs and the debate over Wall Street bonuses."
      Joined Reuters:
      May, 2009
      Loeb Award, 2006
      Finalist, Pulitzer Prize for Public Service, 2006
      National Headliner Award, 2006
      Finalist, IRE Award, 2006 and 2008
      Best Ohio Reporter, Cleveland Press Club, 2009
      Finalist, Livingston Award, 2009 and 2010
      Reuters Company News Story of the Year, 2009
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