Skip to main content

Opening Bell: 06.22.09

Goldman Sachs May Pay Record Bonuses (Guardian)
If all goes according to plan!
AIG Trading Partners Put Squeeze On Insurer Before Bailout (Bloomberg)
"Goldman is to be congratulated for seeing the problem ahead of others and protecting itself from the impending failure of AIG," said William Poole, former president of the St. Louis Fed, in an interview last week. "It's not the responsibility of any private firm to determine what the public interest is -- that's why we have a government."
Bankers' Pay Soars In Attempt To Halt Exodus (FT)
"Market salary rates for managing directors have jumped from about $250,000 (€180,000) only a few months ago, to closer to $400,000. As well as base salary hikes, banks are once more offering guaranteed bonuses to staff approached with lucrative offers by rivals. Bank of America, for example, has seen off attempts to poach top Merrill bankers by matching or bettering offers."
Morgan Stanley Topples Goldman As M&A Leader (NYP)
YTD through Friday, MS has been the lead adviser on $175 billion worth of US-based M&A deals, surpassing Goldman Sachs, which advised on $158 billion worth of deals.
Berne says U.S ready to move in UBS tax case (Reuters)
"U.S. authorities could be willing to make a deal in a legal case against Switzerland's biggest bank, UBS, after the countries agreed a double taxation treaty last week, the Swiss president said on Sunday."
Hedge Funds Boost Profile In Lobbying (WSJ)
Biggest spenders on lobbying since 2007 through Q1: Managed Funds Association, Citadel, Coalition of Private Investment Cos, OZ Management, Elliot Associates, Fortress, HBK.
RBS To Incentivize CEO (Telegraph)
He'll get $15.8 million "if shares recover to 70p withing three years." Contract includes a "no rewards for failure" clause.
Bill Gross Is On Treasury's Speed Dial (NYT)
"Paulson will call, Geithner will call, and I'll be like, 'Yabba-dabba' or 'Blah-blah-blah,' " he says with a measure of self-deprecation -- and an equal dose of pride. "I turn into a walking, talking idiot."

On perceived conflicts of interest: "Gross immediately adds that this mortgage trading operation is completely separate from the one on the floor below, where traders are working on behalf of the Fed. He says he can't even visit that floor himself anymore without a company lawyer at his side. The last time he did was in December, when he wished the traders happy holidays.
"I said, 'Merry Christmas,' " Mr. Gross recalls. "The lawyer said, 'Mr. Gross says Merry Christmas.' Right then and there, I knew that communications were basically severed. That's the way the Fed wants it."