Bank of America Announces Third-Quarter Net Loss of $1.0 Billion (BofA)
Ken Lewis not defeated: “The company’s core performance was impacted by a number of non-core items,” said Lewis. “The market’s improved view of Bank of America’s credit cost the company due to non-cash marks on liabilities. “Excluding those items, our revenue continued to hold up well,” the Bank of America CEO said. “Obviously, credit costs remain high, and that is our major financial challenge going forward. However, we are heartened by early positive signs, such as the leveling of delinquencies among our credit card customers.”
Bruce Wasserstein’s Death Payout (WSJ)
$188 million from 4.4 million restricted stock units accumulated since 2005.
Soros Says U.S. Economy Will Be Drag on World Growth (Reuters)
Current “currency arrangements” are “fraught with danger,” the globalization of financial markets was built on a “false pretense,” and we need a global regulator.
Lloyds to Sell Halifax Estate Agency (Reuters)
For a grand total of: one pound.
Bonuses Put Goldman in Public Relations Bind (NYT)
Hey did you hear? Some people are not happy that Goldman is probably going to pay its employees some huge ass bonuses.
SEC Said to Hire Goldman’s Adam Storch to Be Chief Operating Officer (Bloomberg)
The 29 year-old COO, who started Oct. 13, has “a great deal of background” in technology and managing processes and the pace of work, Robert Khuzami, head of enforcement, said yesterday in Washington. Storch, who worked since 2004 in a unit at Goldman Sachs that reviewed contracts and transactions for signs of fraud, will be charged with making the unit more efficient.
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I get to sit in the big boy’s chair.
@1 it looks like he’s been given a time out.
I like this comment about Bruce:
No plans for a memorial service have been announced. Wednesday evening, about 50 Lazard partners got together at the company’s office near the top of Rockefeller Center to hold a quiet memorial for Mr. Wasserstein, said two people in attendance. As several more partners listened in on a conference call, Mr. Golub read from the press release. One or two others said some words about Mr. Wasserstein. Then the group held a moment of silence before a person in the room said, “Okay, let’s get back to work.“
@3 wow what a dick.
Well, that pretty much means the Squid (GS) will continue its unfettered access to Gov’t insiders and its information flow.
Wow, SEC hiring from the den of Vipers? That’ll work well for GS.
My “Wow” is really out of place. Color me unsurprised.
@5 I know!!!
-matt taibbi
I think Greg’s first post of the day will be about energizer bunnies and how they could become the next BIG energy bubble. Just Sayin’
http://news.bbc.co.uk/2/hi/europe/8309156.stm
Unbelievable, some 29 year old punk is going to be COO. I can hear his first phone call from the SEC. “Hatchling to Bald Eagle….Hatchling to Bald Eagle…I’m in the nest! Ready for transmission….”
Myron Scholes for Treasury Secretary!
two questions for a rainy friday morning:
(1) anyone know what our boy neel kashkari is doing these days?
(2) “29 year old ‘former’ employee” – does that mean he was on the unemployment line before the sec snatched him up?
just askin’
I read that when Jeff Beck (MadDog from Drexel) died only 6 people showed up at his funeral. Apparently Investment Bankers are infrequently mourned.
If BAC couldn’t make money this quarter they might as well just close shop. Effing remarkable how they managed to lose a billion.
@13
Actually not surprising at all. BAC doesnt get as large a boost from bull bond and equity markets as other banks. ML contributed to their bottom line this quarter. The other reality is that they may be acting more honest than other large comm banks (Cough….Citi….Cough) as they set aside a metric asston of money for loan losses.
I’m double posting because goddamn, how stupid is KL? How the hell do you lose a bil when all the market did was go up?
@14, true, but a billion is a semi-large am0unt of money. If they couldn’t at least break even this quarter, they have no chance of making money the next quarter when the markets collapse again.
I am not trying to be a weiner but seriously does a 29 year-old have the depth of experience necessary for this SEC job in this environment…I realize he was vetted by GS and everything but…
@13 That’s the price we pay. Live for money, die alone. But the blow, hookers and tight pants make it all worth it.
Shia L.
Although I hate to take the Boone’s Boy’s side, the accounting rule that improved BofA credit quality increases the non-cash marks on its own liabilities is seriously fucked up.
@12 – He was good with the Yardbirds
@18 ftw
@13 They actually lost $2.2 Billion counting the $1.2 Billion in preferred stock interest payment. And why shouldn’t that be included, it is a cost of credit to fund operations! Ugly! This pig is finished….
@19 – that accounting rule is hilarious. GAAP does all this shit to prevent managers from smoothing revenue then puts that rule in there which does it for them.
@ wcburrs
I think thats tough to say though. It really all will depend on how aggressive their estimates on loan losses are. If they were high guesses, they obviously will be sitting pretty next quarter, even if ML doesn’t help them as much. I wonder if Citi has NOT been very conservative in its estimates, mostly to show a profit, but we’ll see I guess.
The SEC obviously feels no need to produce credible hires:
*Ex-Goldman which I assume means that the poor schulb was out of a job when the gov’t called him
*Studied at New York University’s Leonard N. Stern School of Business but only has a degrees in accounting and finance from SUNY Buffalo. Studied? I’m sorry but what does it mean when you don’t finish B-school? Was he working in the back office at Goldman while trying to get an “Executive MBA” or something?
If the SEC wants to make it look like their serious about doing something, anything, this is about the worst hire they could possibly make
@24 – I’m in no way saying Citi is doing the right thing by ignoring inevitable losses, but c’mon. This quarter was basically free money and BAC somehow lost a billion.
If only Ken Lewis had listened to that fucker Mark Klein, M.D.
Wcburrs
According to CNN, BOA posted a $2.2 bn quarterly loss. Wonder if Timmy G has the bailout bucket brigade lined up?
Is this a joke? His experience and academic depth is so limited they had to list where he INTERNED IN COLLEGE??? He must be blowing Schapiro
Storch holds degrees in accounting and finance from the State University of New York at Buffalo and studied at New York University’s Leonard N. Stern School of Business. He has certifications in accounting, fraud examination and auditing.
Prior to joining Goldman Sachs, Storch was a senior analyst at accounting firm Deloitte & Touche and an intern at Neuberger Berman LLC, a New York-based asset management firm.
@30 It’s called “new blood”
Yes, it is a fucking SICK joke.
Why would the SEC hire a failed record producer? This is crazy!
Eat my ass.
@32 Because Lloyd ordered them too!!!! Gold Scrote strikes again!!!
But seriously. I do not know Storch so I have nothing to say about him. Purely based on background, however, I don’t see the qualifications for this position. It’s like BHO and his Nobel “Peace” prize.
@35 hit the nail on the head.
The job was awarded for hope and potential. Nothing to do with actual ability.
#35 – 36
FTW!!
Hell Yea!
http://www.dupontregistry.com/Celebritycar/Summer07/images/Sum07-p-ScottStorch-2.jpg
http://www.dupontregistry.com/Celebritycar/Summer07/images/Sum07-p-ScottStorch-3.jpg
Seriously, a billion loss!
-Dead Horse Beater
@38 Seriously?
http://www.linkedin.com/ppl/webprofile?action=vmi&id=11848607&pvs=pp&authToken=6YEA&authType=name&trk=ppro_viewmore&lnk=vw_pprofile
When’s the first Adam Storch Photo Caption contest. Storch went to SUNY Buffalo? Gimme’ a break. He’s gotta’ being giving head to Tiny Tim.
http://www.rollingstone.com/news/story/10699242/scott_storchs_outrageous_fortune