Category Archives: Investment banks

Merrill Pay Down Only Slightly in 2008 From 2007 Levels

In case you had any doubts about the propriety of Merrill’s 2008 pay packages, this Wall Street Journal story on the continuing slugfest between Merrill’s former CEO John Thain and Bank of America’s chief Ken Lewis should put any doubts to rest: According to a securities filing last week, Merrill’s overall compensation and benefit expenses […]

Merrill Bonus Plot Thickens: BofA Was Informed

Some readers have suggested that while ex-Merrill CEO John Thain’s actions post the agreement to buy his firm were questionable, his ouster was an effort to divert blame and attention for the turkey deal from BofA CEO Ken Lewis. If Thain, as Lewis charged, ducked direct questions about Merrill’s deteriorating financial condition, or worse, was […]

Geithner Image Burnishing? Disingenuous Story on Lehman Emerges Now

Perhaps I am unduly cynical, but I find it pretty odd that the general counsel at the New York Fed. Thomas Baxter, is making statements about the Lehman collapse now. For those who are familiar with US jurisprudence, anything said to an attorney in confidence is privileged information (yes, there have been some attacks on […]

WSJ: Bank of America to Receive $20 Billion Injection, Support for $118 Billion of Loans

The market’s case of nerves this week seems a tad more justified, given that the details of the Bank of America rescue plan are apparently out, Previous press reports suggested the Charlotte bank might need $8 to $10 billion of additional equity to compensate for losses related to the Merrill acquistion. Yes, as Senator Everett […]

FT: Citi to Split Investment and Commercial Bank

The irony is rich, and a bit sad. I had Citi as a client in the 1980s, and served them in a small way in their efforts to make inroads into investment banking. It looked like a quixotic effort with commercial banks seeming likely to remain relegated to the margins: smaller clients, simpler deals. JP […]

$75 Billion Needlessly Lost in Hasty Lehman Bankruptcy Filing?

There is a piece I regard as truly odd in the Wall Street Journal tonight. Either much of what I have read about investment bank bankruptcies is wrong, or something peculiar is at what used to be the house of Lehman. A Wall Street Journal article, “Lehman’s Chaotic Bankruptcy Filing Destroyed Billions in Value,” comments […]

Dick Fuld Already Planning His Comeback

I had wondered whether former Lehman CEO was more than a tad unbalanced. Anyone who can tell a business peer, as he reportedly did to John Thain, that he would reach down the throat and tear out the heart of those who might be disparaging Lehman, at a minimum is wanting in propriety and decorum. […]

Quelle Surprise! Banks Increase "Mark to Make-Believe" Assets to $610 Billion

Banks are, if nothing else, entirely predictable. If there is a way to game the system, they will avail themselves of it. Readers may recall that the Financial Standards Accounting Board implemented Statement 157, which required financial firms to identify how they arrived at the “fair value” for their assets. Level 1 are ones where […]

Goldman Recants Its $200 a Barrel, "Super Spike" Call for Oil

Um, a bit late to come to that realization, don’tcha think? From Barron’s (hat tip reader Michael): That ‘’super spike” in oil prices that Goldman insisted would lift crude to $200 a barrel ….? ….It never really turned out to be that prescient: instead of the 50% jump in oil that Goldman anticipated back in […]

Is Wall Street Pay Falling Far Enough?

The New York Times, writing from the industry town, in “Wall Street’s Pay Is Expected to Plummet,” tries to make the case that the calls for scalps deeper pay cuts are overdone: The first clues are emerging that Wall Street pay will plummet this year — but perhaps not enough to satisfy the financial industry’s […]