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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Phil's Favorites

Three reasons it's not 1929

 

Three reasons it’s not 1929

Courtesy of 

I could be wrong, but let me point out three things that I think about when I hear Great Depression analogies being made to the current crisis.

The first thing I think about is that the financial markets of the 1930’s were prehistoric. Yes, the Federal Reserve was in existence, but it was nowhere near as powerful and it hadn’t had any institutional memory (or history) to draw on. Its basic structure was patterned on the still-nascent central banks of various European countries thanks to the listening tour Senator Nelson Aldrich and others had made across the Continent. Fun fact: the US Sen...



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Biotech/COVID-19

5 reasons the coronavirus hit Italy so hard

 

5 reasons the coronavirus hit Italy so hard

A nursing home resident in Rome is moved to a hospital. Mauro Scrobogna/LaPresse via AP

Sara Belligoni, University of Central Florida

Italy is one of the nations worst hit by the global coronavirus pandemic. As a scholar in the field of security and emergency management who has studied and worked in Italy, I have determined that there are at least five major reasons why the country is suffering so much.

1. Lots of old people

Italians have the ...



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Zero Hedge

"What Is Really Essential"? In The US Golf And Guns, In France Wine And Pastries

Courtesy of ZeroHedge View original post here.

Among countless other unprecedented changes and transformation, the coronavirus pandemic has unveiled an odd divergence within global cultures: the definition of what's deemed "essential" for people across the world, and what things we really can't do without, even though we might not need most of them for survival.

As AP reports, in its attempt to slow the spread of the virus, authorities in many places are determining what shops and services can remain open. They'...



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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Kimble Charting Solutions

Tech Testing 9-Year Support, With Fear Levels At 2009 Highs!

Courtesy of Chris Kimble

Is an important Tech Index sending a bullish message to investors? It is making an attempt!

Does that mean a low in this important sector is in play? Humbly it is too soon to say at this time!

This chart looks at the Nasdaq Composite Index over the past 25-years on a monthly basis.

The index has spent the majority of the past 9-years inside of rising channel (1), as it has created a series of higher lows and higher highs. It created bearish reversal patterns in January & February as it was kissing the underside of the top of the channel and...



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Insider Scoop

With Everybody Stuck At Home, Investor Conferences Are Going Virtual

Courtesy of Benzinga

With the world at a COVID-19-induced standstill, many conference organizers have either gone online (Benzinga is one of them) or had to cancel upcoming events altogether. There is no clear timetable on how much longer we will be in this state.

Publicly traded companies are already limited in wh...



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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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