“Barclays’ chief executive Antony Jenkins said on Monday that he would waive his bonus for the second year in a row, highlighting the contrasting fortunes of top-earning bankers as their pay has yet again shot up high onto the public agenda. “Mr Jenkins’s move – which he based on the bank’s litigation issues, restructuring and […]
“Your article “Banks Sit Out Riskier Deals” (page one, Jan. 22) gives the impression that the banking regulatory agencies’ recent guidance on leveraged lending will hurt banking and business interests. Such a statement is opinion, not fact. The article offers a quote from a money manager as evidence of its adverse effects, saying that “micromanaging […]
“The Justice Department’s policy leaves the individual wrongdoer unpunished, and instead punishes stockholders. “As a former federal prosecutor and U.S. inspector general, I applaud federal Judge Jed Rakoff in questioning why the Justice Department penalizes public corporations for criminal activity by individuals at the corporations, while allowing the individuals who committed the criminal acts to […]
“Pressure is mounting at the mortgage banking divisions of the biggest US banks. “As refinancing activity has plummeted, banks are trying to step up new home loans, in an attempt to offset the dramatic revenue drag on overall bank earnings. There are few easy ways to boost new purchase originations, but one of the starkest […]
“A top aide to a Republican congressman from Arizona helped promote a legislative plan to overhaul the nation’s home mortgage finance system. Weeks after leaving his government job, he reappeared on Capitol Hill, now as a lobbyist for a company poised to capitalize on the plan. “A former counsel to Democrats on the House Financial […]
“Goldman Sachs’s board granted its chief executive, Lloyd C. Blankfein, restricted shares worth $14.7 million as part of his pay package for 2013, according to a filing made public on Thursday.” “Goldman will disclose the cash portion of Mr. Blankfein’s bonus in the coming weeks. Mr. Blankfein and other senior executives are typically awarded […]
“Ever since the end of the 2008 financial crisis, the world’s leaders have searched for ways to shore up the banking system.” “Earlier this month, the committee that sets standards for the global financial system proposed changes to a crucial indicator of bank risk in a way that critics considered a sop to big […]
“In early 2008 — months before the financial crisis began — Goldman Sachs put $1.2 billion of Libyan money into leveraged bets that six stocks would rise over the next three years.” “None of them did. Libya lost every dollar that was invested. In a lawsuit filed against Goldman in London, the Libyan Investment Authority said […]
“This week the US government delivered two pieces of noteworthy news. One caused a splash: on Wednesday the Federal Reserve announced another $10bn cut in its monthly bond purchases, the second time it has tapered. Cue Twitter alerts and headlines.” “But the real drama came a few hours earlier, when Uncle Sam successfully sold $15bn of two-year floating-rate […]
“If you make a big show of punishing someone, and when you’re done they still don’t think they have a behavior problem, you probably picked the wrong punishment. Every parent on earth knows this implicitly – but does the Obama White House finally get it, too, now, after Jamie Dimon’s raise?” “When the board of […]
“In the United States at the beginning of 2014, the people look to the future with cautious optimism to the past and with a little ‘fear. The markets have started to make sparks, real estate prices are rising, falling unemployment and GDP in constant, albeit modest, growth. At the same time, the specter of recession […]
“NEW YORK—Judge James Peck approved Lehman Brothers Holdings Inc.’s settlement with Fannie Mae over $18.9 billion in mortgage claims, a last major decision for Lehman’s bankruptcy judge before his retirement at the end of the week. “I want to thank all of you, including those not in the room, for making this the experience of […]
“The European Union on Wednesday revealed a long-awaited proposal to reduce the systemic risk posed by big banks, a measure that would bring the bloc’s regulations more closely into line with those of the United States. But it is unlikely to become law anytime soon. “Presenting the plan at a news conference here, Michel Barnier, […]
“Wall Street’s latest trillion-dollar idea involves slicing and dicing debt tied to single-family homes and selling the bonds to investors around the world. “That might sound a lot like the activities that at one point set off a global financial crisis. But there is a twist this time. Investment bankers and lawyers are now lining […]
“After sharing the post for nearly a year, Andrew Ceresney is now the sole enforcement chief at the Securities and Exchange Commission, overseeing more than 1,200 employees in the agency’s largest and most high-profile division. “It’s not Ceresney’s first stint in the public sector. Early in his legal career, he was a federal prosecutor in […]
“Before David Meister was butting heads with Wall Street’s top defense lawyers, he was one of them. “And now, after spending nearly three years as a federal regulator, Mr. Meister is returning to his defense lawyer past. “Mr. Meister, who left Skadden, Arps, Slate, Meagher & Flom to run the enforcement unit of the Commodity […]
“One of the better ideas to surface during the early financial reform discussions was to create some form of national institute of finance, an independent body that could support outstanding research and help develop a broader understanding of lurking risks. In the Dodd-Frank Act of 2010, largely through the efforts of Senators Jack Reed, Democrat of […]
“Improving market conditions increase the risk of complacency, writes Andreas Utermann. “Should we share José Manuel Barroso’s confidence that the eurozone will put the worst behind it this year? Certainly, the success of Ireland’s return to the bond market and Portugal’s recent bond issuance are grist to that mill, but a more nuanced view may […]
“Sheila Bair, former chairman of the Federal Deposit Insurance Corp., has been an outspoken critic of the revolving door that delivers financial regulators to well-paid jobs in finance. This week, she revolved through it herself to a job on the board of Banco Santander SA, one of Europe’s biggest banks. “Bair’s failure to abide by […]
“WASHINGTON—Senior U.S. officials are clashing over whether the asset-management industry poses risks to the financial system, setting up a fight over whether the industry should face tougher oversight. “Officials at the Securities and Exchange Commission, which currently regulates asset managers, have pushed back against a powerful yet little-known Treasury Department office that is laying the […]
“One of the biggest bets on Wall Street rests on a theory that also deeply unsettles Wall Street. “The provocative theory is that the big banks have not paid enough in recent legal settlements to make amends for their role in stoking the subprime housing boom and bust. Hedge funds, contending that the banks have […]
“The Securities and Exchange Commission recently released documents related to its probe into the near-collapse of American International Group Inc. with hundreds of redactions to keep information secret. “SEC officials blacked out information more than 800 separate times in one transcript of a witness interview that lasted less than three hours. On one page, redactions […]
“Last Thursday night in Davos, James Dimon was in a good mood. At a reception his bank held during the World Economic Forum, the J.P. Morgan Chase & Co. chairman and chief executive officer cracked jokes, ribbed his interlocutors with probing questions and silenced aides who interrupted him. “Mr. Dimon is often ebullient, so the […]
“The numbers start to pale after a while. On Monday, Royal Bank of Scotland revealed that its fourth-quarter results would be hit with up to £8bn of “exceptional” charges. The bottom line was already in the red after the first nine months of last year, so RBS looks firmly on track to make one of […]
“LONDON – An analysis commissioned by the Green Party in the European Parliament estimates that the cost of the implicit guarantee that governments will back large financial institutions, known as “too big to fail,” was about 234 billion euros in 2012. “To remedy the distortions of this subsidy, policy makers should go further in carving […]
“Jan. 27 (Bloomberg) — Banco Santander SA hired Sheila Bair, the Federal Deposit Insurance Corp. chairman from 2006 to 2011, to join the board at Spain’s biggest bank. “Bair replaces Lord Terence Burns as an independent director on the 15-person board, the Santander-based company said today in a regulatory filing in Madrid. Burns resigned Jan. […]
“Banco Santander has appointed Sheila Bair, a former regulator and an outspoken critic of big banks, as an independent director in a move that adds an international presence to the Spanish lender’s board but also raises eyebrows. “Ms Bair, who was head of the Federal Deposit Insurance Corporation from 2006 to 2011, has criticised the […]
“For investors who held stakes in large and complex financial institutions in 2008, the perils lurking inside these behemoths came as a costly shock. “Chief among those perils was the possibility that a bank could lose billions on trades executed by employees who were driven, at least in part, by the promise of fatter bonuses. […]
“The author [Antony Currie] is a Reuters Breakingviews columnist. The opinions expressed are his own. “Jamie Dimon’s bonus represents another whale of a fail for JPMorgan. The board’s decision to give its chairman and chief executive a 73 percent raise, to $20 million, is unjustifiable after last year’s performance. Shareholders should have a loud say against […]
“The great 19th century English jurist, Sir James Fitzjames Stephens, once wrote that murderers were hung not for reasons of revenge or deterrence — but to underscore what a serious breach of the social compact had been committed. “Federal District Judge Jed S. Rakoff was making a similar point when he recently called attention to […]
“Happy Monday, View fans. Here are your morning links. “Michaels Stores got scooped on its own data hacking. “Don’t bother waiting for huge retailers to disclose that they lost their customers’ data to hackers. Just read Brian Krebs, who writes the blog “KrebsOnSecurity.” Michaels Stores issued a statement over the weekend saying it “may have […]
“JPMorgan Chase & Co. (JPM:US) Chief Executive Officer Jamie Dimon, who got a 74 percent raise for his work in 2013, stands to reap a separate and bigger payday within months. “The bank’s board of directors, having delayed a decision for more than a year, has yet to say whether Dimon, 57, can collect 2 […]
“Financial services giant JPMorgan, hit with $20 billion in legal fines, settlements and related costs in 2013, provided CEO Jamie Dimon $20 million in compensation last year, a 74% jump from 2012. “Dimon, who earned $11.5 million in 2012, received $18.5 million in restricted shares and $1.5 million in salary last year, according to a […]
“WASHINGTON — Atty. Gen. Eric H. Holder Jr., warning that no bank is “too big to indict,” said the Justice Department will be bringing more cases involving “significant financial institutions” as it continues to investigate Wall Street misconduct. “I think people just need to be a little patient,” Holder said Friday in a television interview. […]
“Jamie Dimon, chairman and chief executive of JPMorgan Chase was paid $20m in 2013, a 74 per cent annual increase, despite high-profile legal woes that have plagued the biggest US bank by assets. “His base salary of $1.5m remained flat while Mr Dimon was awarded $18.5m in restricted stock options, according to a company filing […]
“Jamie Dimon can do no wrong — at least in the eyes of his board. “Even though JPMorgan Chase handed the government more than $20 billion to settle an array of charges in 2013, the board of directors still raised the chief executive’s pay by 74 percent, according to a regulatory filing released Friday. “The […]
“A year after an embarrassing trading blowup led to millions of dollars being docked from Jamie Dimon’s paycheck, the chairman and chief executive of JPMorgan Chase is getting a raise. “JPMorgan’s board voted this week to increase Mr. Dimon’s annual compensation for 2013, hashing out the pay package after a series of meetings that turned heated at times, according […]
“Watching D.C. conventional wisdom change is like watching a house getting built. One day it’s a pile of bricks and lumber strewn all over the ground, the next it’s a completed building. “There have been a lot of arguments lately that the battle to reform Wall Street has been won. Housewright Ben White of Politico […]
“Goldman Sachs Group Inc. is planning to ban traders from using some computer-messaging services in a bid to protect proprietary information at the heart of its sales-and-trading operation.” “Under a new policy, the Wall Street firm won’t allow person-to-person communication over instant-messaging services created by Bloomberg LP, Yahoo Inc., AOL Inc. and other third-party providers including Pivot Inc., according to a draft […]
“Blistering complaints that banks are too big to fail are usually heard from the Occupy Wall Street side of the barricades.” “But on Thursday, some bank analysts in the City of London weighed in with their own hard look at the threats posed by Europe’s largest lenders. The analysts, who work at the Royal Bank of Scotland, argue […]
“A year after an embarrassing trading blowup led to millions of dollars being docked from Jamie Dimon’s paycheck, the chairman and chief executive of JPMorgan Chase is getting a raise.” “JPMorgan’s board voted this week to increase Mr. Dimon’s annual compensation for 2013, hashing out the pay package after a series of meetings that turned heated at times, […]
“Watching D.C. conventional wisdom change is like watching a house getting built. One day it’s a pile of bricks and lumber strewn all over the ground, the next it’s a completed building.” “There have been a lot of arguments lately that the battle to reform Wall Street has been won. Housewright Ben White of Politico does his […]
“If, as an effort at satire, I had written the story that the New York Times’ “DealBook” has just written about what JPMorgan’s board of directors has just actually done, people would have dismissed my piece as absurdly over the top. The board has decided to increase Jamie Dimon’s compensation substantially. The reason the board gives (in leaks to DealBook) […]
Fabrice Tourre’s Wall Street career is over. But now that he faces an unusually stiff financial penalty for his role in creating a soured mortgage deal at Goldman Sachs, Mr. Tourre is fighting back. In a court filing on Tuesday, Mr. Tourre’s lawyers attacked the Securities and Exchange Commission’s pursuit of more than $1 million […]
“WASHINGTON — Rep. Scott Garrett, R-N.J., a senior member of the House Financial Services Committee, is preparing to unveil legislation designed to increase public awareness of the Federal Reserve Board’s rule-writing process. “Garrett, who summarized the provisions of his bill in a Wall Street Journal op-ed posted Tuesday night, said too much of the Fed’s regulatory activities — […]
“DAVOS, Switzerland — Paul Singer, the founder of the hedge fund Elliott Management, said on Wednesday that he remained skeptical that the financial markets were safer despite the changes enacted in the banking industry and by regulators after the financial crisis. “As part of a debate on the postcrisis financial system at the World Economic Forum, […]
“Yesterday, the New York Times reported that JPMorgan had dropped out of the running to underwrite a potential $1 billion share sale by a Chinese chemical company, while U.S. authorities are probing the bank’s hiring practices in China. Last week, Bloomberg News reported that agents from the Federal Bureau of Investigation had questioned a former head of JPMorgan’s Asia-Pacific […]
“One of the biggest loopholes on Wall Street may soon close. “More than three years ago, Congress passed a sweeping overhaul of the financial system that was supposed to leave no big bank untouched. Staggeringly, though, half of the large banks on Wall Street are able to avoid crucial parts of the overhaul — simply […]
“US senators Sherrod Brown and David Vitter have renewed their push to impose higher capital standards on large banks, hoping new government reports into banks will reignite momentum.” “The Brown-Vitter bill, which would impose a tougher equity capital ratio of 15 per cent on the biggest banks, received a lot of attention when it was introduced […]
“Regulatory pressures are pushing many of the biggest banks to pass on financing lucrative deals, as Washington targets excessive borrowing.” “Bank of America Corp. , Citigroup Inc. and J.P. Morgan Chase & Co. are among lenders that have in recent months decided against financing some corporate takeovers partly out of concern the deals will run afoul of new guidelines. Those guidelines are […]
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