The New York bank reported third quarter earnings rose 74 percent in the third quarter, to $3.8 billion, due to lower losses from loans and an accounting gain. Its international consumer lending business grew in Asia and Latin America. The bank also decided to keep its credit card partnership with retailers as that business improved…Last week Vikram Pandit, CEO of Citigroup, said he understands the sentiments of the protesters and was willing to meet with them. Citi spokesman Edward Skyler said no one had reached out from the organizers to talk with Pandit yet. [AP, earlier]
The Brits hate to be the bearers of bad news but if they have to, they have to. Read more »
Retailer That Specializes In ‘Low Rent Preppy Chic’ Worried Jersey Shore Cast Member Might Negatively Impact Next Quarter Results, BrandBy Bess Levin
Abercrombie & Fitch Co. said Wednesday its second-quarter net income rose 64 percent, boosted by higher demand for its preppy fashions in the U.S. and Europe…But like all retailers, Abercrombie & Fitch Co. is facing higher prices of commodities such as cotton during the key back-to-school season. “Costing pressures will be greater in the second half of the year, and macroeconomic uncertainty has increased,” said CEO Mike Jeffries. The news comes a day after the New Albany, Ohio-based company issued a statement saying that it offered “substantial payment” to a Michael “The Situation” Sorrentino, a member of the cast of the MTV Reality Show “Jersey Shore,” to stop wearing its clothing, saying association with the cast member, known for boorish behavior, could cause “significant damage to our image.” Abercrombie said it had extended the offer to other cast members as well. “Management may be correct in asking (and offering to pay) the cast of `Jersey Shore’ to stop donning its logo-wear,” said Wall Street Strategies analyst Brian Sozzi. “It doesn’t need the infusion of MTV and side job dollars from the Jersey Shore crew, if the second quarter of 2011 was any indication.” [AP]
Feisty earnings call from JPMorgan after strong earnings, with surprisingly good performance in fixed income trading and underwriting businesses and a lot of confidence from Jamie Dimon and Doug Braunstein around the appropriateness of mortgage/litigation reserves (especially now that they’ve had a chance to go through R. Kelly’s house and are getting their heads around the awesome parties they can throw there). But some mixed messages on Dimon’s campaign for Treasury Secretary:
Get your hands off his bank
Ed Najarian of ISI asks if they would consider going back to the Fed to request approval for additional capital return. Dimon:
The board is responsible for this company, not just the regulators. It’s still America. Capitalism is still alive. If regulators start making all capital decisions then they should be the board.
So … that’s a yes then.
Read more »
Net income dropped 21 percent but it still beat expectations so high-fives all around! Read more »
For those of you who failed to mark it down on your calendars, please be advised that today is Vikram Pandit’s birthday (his 54th to be exact). Normally we’d tell you to drop what you’re doing and pick up something for him A-SAP but this year we’d advise you to go the no presents route. Not because Vickles is one of those faux modest jerks who says “no gifts, just your company” while not really meaning it but because we can say with absolute certainty that you will not top the gift to end all gifts Vikula is already poised to receive. Dick Parsons, if you’ll do the honors. Read more »
Late last week, Bloomberg Markets profiled AQR founder Cliff Asness, who has continued his boyhood “obsession” with comic books and their characters into adulthood. His desk in Greenwich is home to Spiderman, Captain America, The Hulk and Iron Man, he has a Captain America shield on his right bicep and he “identifies with” many a super hero. In sum, Asness fancies himself one of them and to that end, is clearly dying for someone to make a character modeled after him. A very talented DB reader (and fellow hedge fund quant) did just that. As we were discussing possible sidekicks and a love interest for Quant Man, however, we realized there was a problem that needed rectifying. Before we can continue with Cliff, who is the one person who truly deserves her own action figure? Read more »
As you know, AIG’s fourth quarter results came in– not so good!. In any case, Bobby B. is happy and wants the world to know it. AIG reported a loss of $8.9 billion in the fourth quarter, which is an improvement from the $61.7 billion loss in the year-ago period. And this, my friends, is making Bobby “proud” and he wants to thank you. Yes you, all of you. He “appreciates the support of the people in this country.” Bobby is also very thankful to have such wonderful employees. Employees, who not only work at the most despised company, but who do so “with commitment and enthusiasm.” He’s “very impressed with their attitude and the willingness to roll up their sleeves and make things happen.”
Also, he’s got a plan.