Yesterday we learned that back in December, the Federal Reserve sent a letter to Deutsche Bank, telling management, in essence, that it ought to set fire to its U.S. operations and collect the insurance money, then get out of the banking business. If the powers that be at DB insisted on sticking with this thing, they’d have a lot of work cut out for themselves, as the Fed’s criticism included the words:
Citigroup‘s profits tumbled 96 percent in the second quarter, dragged down by a huge charge related to its recently announced deal with the Justice Department to settle an investigation into its sale of mortgage securities in the run up to the financial crisis. The charge for the legal settlement totaled $3.8 billion, marring an otherwise relatively strong quarter for the bank that was helped by better than expected trading results. Not accounting for the legal charge, or other one-time items, Citigroup exceeded Wall Street expectations in the second quarter with adjusted earnings of $1.24 a share, On that basis, analysts had been expecting Citigroup would earn $1.05 a share, according to a survey by Thomson Reuters…Earlier on Monday, the bank announced a $7 billion deal with the Justice Department. The deal includes a $4 billion cash penalty, the largest yet by a large bank to settle federal investigations of mortgage misdeeds. [Dealbook]
Former SAC Capital Advisors LP portfolio manager Mathew Martoma, charged in what prosecutors called the biggest-ever insider trading case, appeared in federal court in New York…He was arrested at his Boca Raton, Florida, home Nov. 20 and freed on $5 million bond. He appeared today before U.S. Magistrate Judge James Cott in Manhattan. The defense and prosecution today agreed to a modified bail package under which the $5 million bond must be secured by $2 million in cash or property, as well as signatures from three instead of two financially responsible people. Martoma has surrendered his and his children’s travel documents. He’s limited to Florida, Massachusetts, New Jersey and parts of New York. [Bloomberg]
Yes, Corzine’s contract says he’s eligible for a $12 million package if he leaves the firm but recent events will make it slightly more difficult for him to collect that check on the way out. Read more »
This probably doesn’t come as much of a surprise, considering he was already found guilty of insider trading and sentenced to two and a half years in prison but that doesn’t make it sting any less: Donald Longueuil, who the feds were able to bring charges against after his colleague, accomplice and so-called best friend Noah Freeman agreed to record conversations with Don in exchange for a lesser sentence, during which Don was heard on tape saying re: his USB flash drive: Read more »
One of the stocks in Paulson’s portfolio, Alpha Natural Resources, is getting clobbered today after the company and rival Walter Energy warned that output for steelmaking-coal will fall short of expectations…Paulson’s bet on Alpha Natural Resources is a relatively small chunk of his portfolio, but it is another ill-timed wager this year from the man who made a fortune from smart wagers against subprime bonds. [WSJ]
It’s not just doctors and scientists that need STEM education. America’s shifting economy is demanding more trained workers in many different sectors. See how Travis Brooks got the hands-on education he needed to become a technician at the Chevron Pascagoula Refinery. Visit The Atlantic to learn more.