Posts Tagged ‘Bonus’

Obama Earthquake Rocks Wall Street

Obama Earthquake Rocks Wall Street

Courtesy of John Carney of Clusterstock

paul volcker barack obama

Details of Obama’s new proposal are still hard to come by but this looks huge. 

Sources inside major financial institutions are saying that they are scrambling to see if they will have to spin off operations, change their regulatory status, and perhaps find new business models.

Here’s the AP’s report:

President Obama is calling for tougher regulations on banks that would limit the size and complexity of large financial institutions.

The proposal would also limit banks’ ability to engage in high-risk trades. Restrictions would be placed on proprietary trading by commercial banks to separate those institutions from investment banks.

Obama said Thursday that without these regulations, the financial system will continue to operate under the same rules that led to its near collapse.

The announcement comes as Obama renews his calls for financial regulatory reform, which is being negotiated on Capitol Hill.

Obama’s announcement comes as the White House renewed Obama’s demand that any overhaul of banking regulations contain an independent consumer financial protection agency. The proposed agency is one of the major sticking points in the Senate and the central focus of negotiations between Democrats and Republicans on the Senate Banking Committee.

"The president is not going to compromise because lobbyists tell somebody that we shouldn’t have an agency that protects consumers," White House spokesman Robert Gibbs said. "That’s something the president’s not willing to give up."

The tougher measures to be announced Thursday aim to limit speculation by commercial banks and to keep financial institutions from becoming so big that they pose a risk to the overall economic system.

In focusing attention on Wall Street,however, the administration is also seeking to halt a wave of public anxiety that is benefiting Republicans and undermining Obama’s agenda.

News of the announcement came shortly after Treasury Secretary Timothy Geithner had a private dinner Wednesday night with chief executives from some of the top Wall Street banks.

There was also a new urgency in the Senate to move on the legislation — an attempt to respond to voter anger at Wall Street and bank bailouts that helped propel Republican Scott Brown


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YEAH, BABY! Massive Taxpayer-Sponsored Wall Street Bonuses!

YEAH, BABY! Massive Taxpayer-Sponsored Wall Street Bonuses!

Courtesy of Henry Blodget at Clusterstock/The Business Insider

Poverty Sucks

Thank you, Tim Geithner!  Thank you, Ben Bernanke!  Thank you, Hank Paulson!  Thank you, Larry Summers!  Thank you, Barack Obama!

Thank you, AMERICA, for making this yet another absolutely great year to work on Wall Street!

[Wall Street] executives acknowledge that the [bonus] numbers being tossed around — six-, seven- and even eight-figure sums for some chief executives and top producers — will probably stun the many Americans still hurting from the financial collapse and ensuing Great Recession.

Goldman Sachs is expected to pay its employees an average of about $595,000 apiece for 2009, one of the most profitable years in its 141-year history. Workers in the investment bank of JPMorgan Chase stand to collect about $463,000 on average…

(Kudos to Citi’s Vikram Pandit, though, who’s forgoing a bonus and taking a salary of $1).

*****

LloydBlankfein-0909-2

Louise Story, NYT: 7 Or 8 Figures For the Top Bonuses On Wall Street

See Also:

Goldman’s Response To UK Bonus Tax: Just Pay Its Employees A Lot More

Goldman’s $22 Billion Bonus Bonanza

Goldman Desperate To Avoid PR Disaster Come Bonus Season

 


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Dylan Ratigan Goes Nuts On Goldman Exec Who Advocated Inequality

Dylan Ratigan Goes Nuts On Goldman Exec Who Advocated Inequality

Courtesy of Joe Weisenthal at Clusterstock

As soon as we saw this last night, we knew it was going to be huge.

Goldman Vice-Chairman Lord Fforestfatch defended his bank’s huge pay and the general notion of inequality at a debate in the UK.

Naturally, Dylan Ratigan was stunned and apoplectic. It starts around the 2:30 mark.

Visit msnbc.com for Breaking News, World News, and News about the Economy

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Pay Czar Defangs Himself, Won’t Set Pay Caps

Pay Czar Defangs Himself, Won’t Set Pay Caps

AIG bonus new york post Courtesy of Lawrence Delevingne at Clusterstock

Relax TARP execs, the mobs aren’t coming for you.

Reuters: President Barack Obama’s "pay czar" said on Friday he will not cap compensation for the top employees at bailed-out companies, and will not reveal names, when he releases the first wave of decisions within a few weeks.

"We don’t want specific names next to dollars," said Kenneth Feinberg, who was appointed in June to decide compensation packages for the highest-paid personnel at companies that received U.S. government bailouts.

So Kenneth Feinberg has probably taken the first step towards making his office irrelevent, though theoretically he still has the power to intervene when a pay package is somehow excessive or likely to induce risk. In reality, he probably won’t do much of anything.

Folks, the pay issue is fading, even if the G20 promises a "coordinated effort ."

At least until Michael Moore’s "Capitalism" drops in October…

See Also:

Obama's man, the "Pay Czar," Kenneth Feinberg

Citi Is Pissed Off About The Pay Czar’s Comp Restrictions (C)

Obama’s Pay Czar Ready To Crack Heads On Wall Street

Pandit Says He’s Embarrassed By Andrew Hall’s $100 Million Bonus (C)

 

 


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UK Watchdog Wants To Shrink The Financial Sector

Welcome to Vincent of Clusterstock! 

"Americans are heading home as Britain plans a 50 percent tax rate for those who earn more than 150,000 pounds ($248,000) a year and employers cut benefits for workers living abroad, reducing the allure of London. That comes a year after the U.K. said foreigners who have lived in the country for more than seven years must pay 30,000 pounds annually or give up the special status that shields overseas income from British taxes."  Elle Macpherson Can’t Counter London Gloom as Americans Flee, Bloomberg.

UK Watchdog Wants To Shrink The Financial Sector

Courtesy of Vincent Fernando

businessmanhandcuffs

 


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Now We Know Who Approved The Outrageous Bonuses

Now We Know Who Approved The Outrageous Bonuses At Merrill Lynch

john thain tbi2Courtesy of John Carney at Clusterstock

At yesterday’s hearing over the SEC’s case against Bank of America, judge Jed Rakoff hammered away with persistent questions about who knew what and when they knew it. The judge was focused on the question of the enormous bonus payments that were made to Merrill employees just before the merger was completed.

The SEC hadn’t offered up any names in its complaint against Bank of America, saying it wasn’t targeting individuals. But as Rakoff kept pointing out, instituions don’t make decisions about bonsues. People inside of institutions do.

Under persistent questions from the judge the SEC offered two names, Reuter’s Rolfe Winkler reports. The bonus discussions, according to the SEC, were handled by Greg Curl of Bank of America and Greg Fleming of Merrill.  Fleming was reportedly the person who originally brokered the deal with Bank of America. As sole president at Merrill at the time, he would likely have been well placed to know of the losses mounting on Merrill’s balance sheet.

Interestingly, Bank of America’s lawyer says that Merill CEO John Thain and BofA CEO Ken Lewis weren’t aware of the of details of the bonuses because those were contained in a "disclosure schedule" that was supposed to be attached to the SEC filing detailing the merger. The disclosure schedule was never atttached, and the lawyer says that Thain and Lewis didn’t even see it.

Which is mightily convenient for those at the top seeking to avoid taking responsibility for the decisions.


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Goldman’s Secret Plan: Ignore Public, Give Themselves A Raise

Goldman’s Secret Plan: Ignore Public, Give Themselves A Raise (GS)

rainingmoney tbi - Goldman Sach's secret planCourtesy of John Carney at ClusterStock

But one of our favorite parts comes at the end, when Hagan reports that Goldman CEO Lloyd Blankfein isn’t really too worried about the "vampire squid" business. (For those of you totally out of touch, Rolling Stone described Goldman as a "vampire squid" that created and profited from every financial bubble in American history.) He’s actually pretty much indifferent to public perception, except when it affects internal morale.

And internal morale problems can be remedied with that universal solvent of bad feelings: more money.

From Hagan:

In the end, Goldman’s reputation is a luxury they may well be able to do without. Robert Rubin has been privately critical of how the firm has handled the threats to its prestige, and Rogers recently addressed the firm’s reputation in seminars with Goldman staff. But a person who frequently talks to senior executives at Goldman sums up the company’s attitude this way: “If we can push the envelope without D.C. punishing us, we don’t care about our Main Street reputation.” Blankfein in particular is said to be dismissive of the firm’s critics. According to a person close to him, the CEO believes Goldman’s internal problems will disappear once compensation comes back. In other words, money will solve everything.

With enough money, perhaps he can even get the taxpayers off his back. Last week, Blankfein took a stab at assuaging public anger by paying a $1.1 billion return on the government’s $10 billion investment last fall—not a bad profit. It was a shrewd move, a prudent PR investment that prompted a round of stories about the firm’s “generosity to taxpayers.” Feel better?

Goldman Sachs

 

 

 


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AIG may be worth nothing, so quick, get the bonuses out

Here are a couple updates on AIG, courtesy of John Carney of ClusterStock.

Citi Says AIG May Be Worth Nothing

aig securities lending

You may have forgotten that America’s deepest money pit, also known as AIG, is still publicly traded somehow. In fact, they did a 1-for-20 reverse stock split a week or so ago. Since then the financial calamity manufacturer has lost half its value.

So what should AIG be worth? Our feeling is that this company has so little knowledge about what its been doing that investors would be crazy to put a dime into it. Every few months we learn of a new toxic product line AIG dealt to others. First it was credit default swaps, then stock-lending and now some mysterious derivatives sold to European banks.

Citi analysts recently said that there’s a good chance that AIG could be worth nothing at all.

“Our valuation includes a 70 percent chance that the equity at AIG is zero,” said Citi analyst Joshua Shanker. The problem is that AIG owes so much to the US government that it would need to raise $135 billion before shareholders ever see a dime.

Doug McIntyre offers a contrarian take on AIG, noting that its current market cap is so low that buyers could actually make out. "With any luck, there will be a sliver of value left over for common shareholders. It is a big bet, but one that could pay off. If the equity in the company ends up being worth only $3 billion, investors could almost double their money based on where the stock trades now," he writes.

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AIG Wants To Pay Financial Products Group $235 Million In Bonuses

aig building tbi

Uh oh. Here we go again.

From The Associated Press:

After its bonus payments ignited a firestorm of criticism earlier this year, American International Group is asking the federal government to weigh in on the insurer’s plan to resume paying millions in promised retention incentives next week, according to media reports.

AIG, once the world’s largest insurer, has asked the Obama administration’s compensation czar, Kenneth R. Feinberg, to approve the payments in order to head off any public outrage, The Washington Post reported Thursday evening.

While the company isn’t required to get the government’s blessing because


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Chart School

Price and Volume Swing Analysis on Bitcoin and Silver

Courtesy of Read the Ticker

Many take guidance from news, pundits or advisors. Well sometimes the swings of price and volume are a better measure of what happens next.

The big boys do not accumulate or distribute in single 1 second trade, they build positions over weeks, months and years. They use price swings in the market to build or reduce positions, and you can see their intent by studying swings of price and volume and applying Tim Ord logic as written in his book called 'The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks'.

Tim Ord is a follower of Richard Wyckoff logic, his book has added to the studies of Richard Wyckoff, Richard Ney and Bob Evans.

Richard Wyckoff after years of...

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Phil's Favorites

60/40 is Dead. Again.

 

60/40 is Dead. Again.

Courtesy of 

Doing nothing has been one of the best strategies of the last few decades.

I’m talking about the tried and true 60/40 portfolio. 60% stocks. 40% bonds. You had to rebalance, so not exactly nothing, but as close to it as you can get.

Nothing and easy, however, aren’t the same thing. You had to sit through multiple 50% crashes in the stock market. You had to sit on your hands during periods where “everyone” was getting rich. On the spectrum of easy to impossible, doing “nothing” is closer to the latter.

How many people can stay the course for multiple decades? The investor’s principal challenge is to fight the urge to de-risk in a bear market and add risk in a bul...



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Zero Hedge

Ethereum's Turn To Outshine Bitcoin Is Coming, UBS Says

Courtesy of ZeroHedge View original post here.

After a stellar start to the year, which saw its price soar to an all time high above $4,100, trouncing virtually all of its crypto peers, Ethereum has stagnated in recent weeks, with its place in the spotlight taken by bitcoin whose impressive outperformance has been the result of now confirmed speculation that a bitcoin futures ETF is coming. It also meant that what has traditionally been a close correlation between the two largest cryptos has broken in favor of the larger peer; it would also suggest that ethereum is trading about $1000 cheap vs bitcoin.

...



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Digital Currencies

Ethereum's Turn To Outshine Bitcoin Is Coming, UBS Says

Courtesy of ZeroHedge View original post here.

After a stellar start to the year, which saw its price soar to an all time high above $4,100, trouncing virtually all of its crypto peers, Ethereum has stagnated in recent weeks, with its place in the spotlight taken by bitcoin whose impressive outperformance has been the result of now confirmed speculation that a bitcoin futures ETF is coming. It also meant that what has traditionally been a close correlation between the two largest cryptos has broken in favor of the larger peer; it would also suggest that ethereum is trading about $1000 cheap vs bitcoin.

...



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Politics

Steve Bannon faces criminal charges over Jan. 6 panel snub, setting up a showdown over executive privilege

 

Steve Bannon faces criminal charges over Jan. 6 panel snub, setting up a showdown over executive privilege

Defiant or following Trump’s direction? John Lamparski/NurPhoto via Getty Images

Courtesy of Kirsten Carlson, Wayne State University

The House committee investigating the Jan. 6 attack on the U.S. Capitol is tasked with providing as full an account as possible of the attempted insurrection. But there is a problem: Not everyone is cooperating.

As of Oct. 14, 2021, Steve Bannon, a one-tim...



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Biotech/COVID-19

Ivermectin is a Nobel Prize-winning wonder drug - but not for COVID-19

 

Ivermectin is a Nobel Prize-winning wonder drug – but not for COVID-19

While ivermectin was originally used to treat river blindness, it has also been repurposed to treat other human parasitic infections. ISSOUF SANOGO/AFP via Getty Images

Courtesy of Jeffrey R. Aeschlimann, University of Connecticut

Ivermectin is an over 30-year-old wonder drug that treats life- and sight-threatening parasitic infections. Its lasting influence on global health has been so profound...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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