The prestige, the salary bump, the fancy new titanium business cards, the gilded loins. All of these are among the things that make a Goldman Sachs partnership so coveted—and so sparingly gifted. The ability to put some of those impressive new bonuses to work in the most exclusive private-equity fund on earth, one that promises to effectively double your pay sans fee if you do it right? Yea, that’s another. Read more »
Okay, so Daniel Gallagher, Michael Piwowar, Nino and his sidekick all seem to agree that insider-trading is, in fact, a crime. But what sort of crime? The SEC’s two Republicans think that it may sort of be a victimless crime, insofar as it isn’t always possible to figure out who the victims are, and insofar as the SEC staff worked way too hard convincing Steve Cohen to give it $602 million to go away to have it all go to some scummy plaintiffs’ lawyers. Read more »
For the last several centuries, the Oracle and his trusty sidekick have made a point of eschewing capital-intensive businesses. But like Scotch and warm milk, some things can only be appreciated with age, especially when they are contributing 40% of your net profit. Read more »
Citigroup, J.P. Morgan Take Brunt of Currencies Settlement (WSJ)
Citigroup Inc. and J.P. Morgan Chase & Co. agreed to pay more than $1 billion each to resolve allegations that they tried for years to manipulate the foreign-currency market, the biggest fines wrung from a group of six banks by regulators in the U.S., U.K. and Switzerland.
Barclays Pressed by New York’s Bank Regulator in FX Probe (Bloomberg)
Benjamin Lawsky, the head of New York’s Department of Financial Services, refused to join a group settlement announced yesterday by U.S. and European regulators, causing Barclays Plc (BARC) to pull out at the last minute, according to a person familiar with the matter. Lawsky decided the settlement over rigging foreign-exchange rates wouldn’t be severe enough and instead is continuing his own probe, said another person briefed on the matter who asked not to be named because the investigation isn’t public. He has also appointed a monitor, Devon Capital LLP, to review Barclays’s continuing conduct, confirmed John Padrnos, a partner at the advisory firm, which specializes in derivatives.
Bank of England Officials Cleared of Wrongdoing in Currency Manipulation (Dealbook)
An independent inquiry released on Wednesday found that no one at the Bank of England was involved in unlawful or improper behavior related to the foreign exchange market, but a top official was fired this week after the central bank said he failed to follow internal policies. In October 2013, the Bank of England’s governors began an internal review after accusations arose that officials condoned or knew about manipulation in the foreign exchange market. In March of this year, the bank’s oversight committee took over the investigation, and Lord Grabiner, Queen’s Counsel, was appointed to lead the external review.
Goldman Names Fewer Traders to Newest Class of Partners (Bloomberg, earlier)
Employees in the trading and research divisions comprise 36 percent of the class, down from 44 percent two years ago, according to the New York-based company. An industrywide slump has driven down Goldman Sachs’s trading revenue to $12 billion in the first nine months of the year, from $27.5 billion in the same period of 2009 and $18.2 billion in 2010.
Martoma In Prison Posture (NYP)
Martoma’s bid to stay out of prison pending his appeal was quickly denied Wednesday by a federal appeals panel that ruled he had “failed to show that the appeal ‘raises a substantial question of law or fact.’”
Alleged coke-dealing priest headed for trial (UPI)
An Italian priest arrested at a cocaine party on suspicion of dealing the drug has been scheduled for a fast-track trial in January. Don Stefano Maria Cavalletti, 45, was arrested in July when police were called to a Milan address on a report of a loud party and they found a large amount of cocaine along with the priest’s shredded passport in the bathroom of the home. Cavalletti told police he had been using cocaine as “self-treatment” for depression he suffered after being convicted in September 2013 of fraud against an elderly woman. The priest is now scheduled for a fast-track trial January 29. Read more »
Despite “considering a pay increase for analysts and associates” back in August and despite its peers at Bank of America, Credit Suisse, Jefferies, Goldman Sachs, JP Morgan, and Morgan Stanley already going ahead and doing so, Citigroup is apparently still not sure about this one. Read more »