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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Kimble Charting Solutions

Giant Topping Pattern Could Be Forming, Says Joe Friday

Courtesy of Chris Kimble.

The first fact of the day; The long-term trend for tech remains up and the decline into the lows on Christmas Eve DID NOT break this trend!

This chart looks at NDX 100 ETF (QQQ) on a weekly basis over the past 14-years. For the past decade, since the lows in late 2009, QQQ has remained inside of rising channel (1). As you can see the decline into the end of the year lows, did nothing more than test support, which held and a strong rally has followed!

Over the past few months, QQQ could be forming a “Head & Shoulders&...



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Zero Hedge

Yesterday's Perfect Recession Warning May Be Failing You

Courtesy of ZeroHedge. View original post here.

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

Recently, Wall Street and the Financial Media have brought much attention to the flattening and possible inversion of the U.S. Treasury yield curve.  Given the fact that an inversion of the 2s/10s Treasury yield curve has predicted every recession over the last forty years, it is no wonder that the topic grows in stature as the difference between the 2-year Treasury yield and the 10-year Treasury yield approaches zero. Unf...



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Insider Scoop

Earnings Scheduled For February 22, 2019

Courtesy of Benzinga.

Companies Reporting Before The Bell
  • AutoNation, Inc. (NYSE: AN) is expected to report quarterly earnings at $1.15 per share on revenue of $5.63 billion.
  • United States Cellular Corporation (NYSE: USM) is projected to report quarterly earnings at $0.13 per share on revenue of $1.05 billion.
  • Magna International Inc. ...


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Phil's Favorites

The Science Behind the $13 Billion Medical Cannabis Industry

 

The Science Behind the $13 Billion Medical Cannabis Industry

By , Visual Capitalist 

 

The Science Behind the Medical Cannabis Industry

There’s nothing quite like cannabis in the plant kingdom. Beneath its humble surface, over 750 unique compounds exist within – all of which have helped propel the cannabis industry into the multi-billion dollar market it is today.

Today’s infographic from ...



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ValueWalk

What A Difference A Year Doesn't Make

By Michelle Jones. Originally published at ValueWalk.

In general, the markets seemed to be shaping up to be similar to what they looked like a year ago performance-wise. January was a month of strong returns, and now that we’re into February, we’re suddenly seeing a steep pullback. It remains to be seen whether the rest of the month will be as tumultuous as last February was.

12019 / Pixabay

However, a bit of good news is that even though the market performance is looking a lot like it did last year, the setup is quite a bit different, according to one firm. As a ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 02 August 2018, 07:48:20 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: $600 BN interest payments for US gov, print baby print



Date Found: Sunday, 05 August 2018, 09:22:26 PM

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Comment: Hire FED interest rates always brings double trouble



Date Found: Monday, 06 August ...

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Digital Currencies

Cryptos Are Surging: Bitcoin, Ethereum Hit One-Month Highs As Institutions Dip Toes

Courtesy of Zero Hedge

Cryptocurrencies are surging while the US equity markets take the day off. Ethereum is up over 18% from Friday's 'close' and the rest of the crypto space is a sea of green. While no immediate catalyst (headline or technical level) is clear, increasing chatter over institutional investors dipping their toes in the space have prompted an extension of the positive trend.

A sea of green...

Source: Coin360

Ethereum is leading the charge follow...



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Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Reminder: We are available to chat with Members, comments are found below each post.

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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About Phil:

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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