Bank of America’s Q2 Income Falls 5.5 Percent To $3.22 billion (BAC)
“Having positive net income in an extremely challenging environment speaks to the diversity and strength of our business model as well as the extraordinary effort put forth by all of our associates,” said Ken Lewis. “Our goals during this difficult time have been to enhance the strength of our balance sheet and capital position and to continue to improve our earning power while dealing with the credit issues facing our industry due to the recession.”
Citigroup Reports Second Quarter Net Income of $4.3 Billion (C)
“For many quarters we have been consistently and successfully executing our plan to build financial strength and return Citi to sustained profitability and growth. We have made significant progress in recent quarters as evidenced in the significant decline in expenses, headcount, assets, including Citi’s riskiest assets, as well as our 12.7% Tier 1 capital ratio,” said Vikram Pandit.
Two Giants Emerge From The Wall Street Ruins (NYT)
And they are: Citi and BofA. No, come on. “One theme here is that Goldman Sachs and JPMorgan really have emerged as the winners, as the last of the survivors,” said Robert Reich.
AIG Bank Swaps May Take Years to Expire, Leaving A ‘Toxic Pool’ (Bloomberg)
Last month, AIG said in a regulatory filing that it may be at risk for losses for “significantly longer than anticipated” if the banks don’t terminate their swaps. Ballpark: an eternity.
New Fund-Raising Reality for New Jersey Governor (NYT)
Not all Goldman alums are doing as well as Maxine would like to think: JSC needs your cash, asap.
Geithner Sees Evidence of a Financial Recovery (NYT)
Still hasn’t been able to sell his house, but the Treasury Secretary feels pretty good about the way things are going.
The Dept. Of The Treasury Seeks Contractor To Provide Humor in the Workplace (ZH)
Really.
Cramer: The Worst Is Over (CNBC)
Archive for July 2009
$$$ Jamie Dimon’s Big Quarter Will Not Go Unnoticed [Cityfile]
$$$ Security Savings Bank: Not So Solid Ground [BankImplode]
$$$ Are Citigroup Inc. and Bank of America signing deals with the devil? [The Deal]
$$$ Blow a sad trombone for Steve Rattner, who no longer has a reason to live in DC but laid down $4 million for a house there two months ago. [peHUB]
$$$ Paulson’s Version of Financial Armageddon: ‘People in the Streets‘ [WSJ]
And now they have to die (pick who you’d like to lay down for the dirt nap now). Why am I getting so upset about this? Do you know how much time and effort it took me to take out a trademark on the name Dr. Doom? Production is nearly completed on a line of dolls (sorry, “action figures”), lunch boxes, and porta-potties bearing my name and mug, with plans for musk, if there’s sufficient interest. It’s Dr. Doom not Dr. Roses and Rim Jobs For Everybody. Infidels.
It has been widely reported today that I have stated that the recession will be over “this year” and that I have “improved” my economic outlook. Despite those reports – however – my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context.
I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19months into that recession. If as I predicted the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.
Roubini Statement on the U.S. Economic Outlook [RGE Monitor]
For many of you, the longstanding fantasy of calling a bankrupt, overly tanned businessman who’d fuck you for a nickel “Dad,” has been shattered.
J-Vanka Gets Engaged [Daily Intel]
Before Bear fell on its face and people had other thngs to worry about, there were massive amounts of smack talk coming from both sides of the Atlantic about whether New York or London was the true financial capital of the world. A couple trillion in losses later and the battle is still on. But while the Big O administration is considering regulation that looks draconian, the UK is busy producing a veritable blueprint for how to drive top financial professionals (and their business) out of London and out of the EU.
On top of the 50% tax for those earning over £150,000/yr and the prospect that your compensation may be the lead story on the evening news, Prime Minister Gordon Brown has indicated that top earners at British banks may have to wait up to 5 years to collect half of their bonuses. With some London-based hedge funds already considering packing up and moving to less punitive locations, should this most recent series of suffocating regulatory proposals lead to a mass exodus to places such as New York, the UK government may inadvertently wind up providing the Big Apple and the US with a true stimulus package.
[Previously]
1:40 If possible, it appears as though whatever condition is going on with Paulson’s skin has gotten worse, and that it’s starting to peel.
1:45 Rep. Cummings: do you think it was fair that Merrill Lynch paid out huge ass bonuses before the deal went through? Do you think it was ethical?
Paulson: Those are two words.
Rep. Cummings: Oh, we’ve got a college boy in the house. Did you think it was fair?
Paulson: I’d rather not say.
Cummings pinch hitting for Maxine Waters. You worked at Goldman, did you not? You told former Goldman guy Ed Liddy to go run AIG. GS received a metric asston of money from AIG. WHAT THE FUCK HELL AM I SUPPOSED TO TELL MY CONSTITUENTS ABOUT THAT?
Paulson: Can I just say you and your friends are doing a phenomenal job? Really.
Rep. whose named I missed (but nice tie) would like to know what the government’s exit strategy is. Paulson no longer works for the government, and spends most days bird watching and counting the clams he made while working at GS, so he doesn’t much know or care.
Rep. McHenry: In my hand, I have phone records between you and Mr. Bernanke. On one given day, you spoke five times. Is that standard?
Paulson: Yeah, pretty average. You know how the balls and chains can get. Constantly popping in to just say hi.
Rep McHenry: Well it doesn’t seem “pretty average” to me. It all seems pretty shady. Shall I read from one of the call?
Paulson: Knock yourself out, I got nothing to hide.
Rep. McHenry [clears throat]: Ben, it’s Hank. Only have five minutes. What are you we-
Paulson: Okay I’m good, no more reading.
Is set to go down at Phoenix Partners Group, where a summer intern will attempt to consume 70 chicken McNuggets in 60 minutes. Once completed he must hold the food down for an additional half hour. He is allowed to drink as much water as necessary during the challenge. If successful, he’ll score $2,500 in addition to 10 percent of all losing wagers. I don’t think I have to remind you people that, to date, for the most part, when it comes to these tests, you’ve all been phenomenal failures. The most recent attempt was by a RBSGC employee, who endeavored to consume 40 vending machine items in less than an hour, with $400 at stake. He didn’t run out of time, but after 36 “puked in someone’s 82%-paid-for-by-the-UK-government garbage pail,” and couldn’t find it in himself to rally. Before that, it was a BlackRock analyst who had HOURS to eat a few mini-sized snacks from the vending machine, and, of course, blew it. Basically, the only men among you are Oyster Boy, and the kid who ate three cans of cat food at Wachovia. I don’t think I have to tell you, we need this.
Update: A little color from the front lines:
He’s a string bean. He’ll be a college freshman in the fall. He’s trying to pace himself — one/two McNuggets every minute. There is a lot of sell volume at the 70 level. Buyers are hard to find until you hit the 60. Some odd lot artist from Barclays tried to buy 65 for a lousy $50. Wtf — round lot orders only please Barclays!
Update II: Okay, he’s housed 34 with 32 minutes to go. Apparently the McNuggets are starting to congeal. According to an on-looker, “he’s a willowy lad, but I think he might have the balls to pull it off.”
Update III: 8 nuggets left, 7 minutes to go. “He’s looking pretty ill.”
First year Bank of Amerillwide employees have apparently received $38k bonuses for S&T and $30k stubs for research. The budding Kens also all had their base pay raised to $80k from $60k. For those keeping track at home, second rate first year staff at Citi are still killing this thing, thanks to the generosity of Tim Geither, and certain well-heeled Prince. Ken Lewis is said to be telling lieutenants he’s planning on buying everyone a round tonight but do note that he said “planning” as in there’ll most likely be a skipping out on the tab situation.
In a tale almost too bizarre to be true, one of King Ponz’s victims is stepping up to the plate and covering his employees’ Bernie-related losses with his own money. Robert Lappin is shelling out $5 million to cover the fraud related 401(k) losses for the 60 employees that work for him at Shetland Properties Inc and his private charity, the Robert I. Lappin Charitable Foundation.
“I wanted to do the right thing,” Lappin said. “And, I feel, I’ve done the right thing and that to me is my reward.”
One down, 15,399 or so to go until Joe Nocera is happy.
Cuts are apparently said to be going down at the House of Dimon in SPG circa now. No word on what took so long.
In another green shoot development, SheBair warned that it’s not just CIT that may go down in the not too distant future. According to Senator Jim Bunning, the FDIC Chairwoman calmed nerves at a Senate Banking Committee hearing on the foreclosure crisis by remarking that “unless something dramatic happens, we could lose up to 500 more banks”. Given the likely size of these institutions, this provides excellent support for the FDIC’s campaign to create smaller, less diverse banks.
