Citi Reports Net Income of $4.4 Billion; $0.15 Per Diluted Share (MarketWatch)
"Citi today is fundamentally a very different company from what it was only two years ago," said Vikram Pandit. "With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets. None of this would have been possible without the magnificent work of Citi's people. They produced strong results by focusing on our clients' needs, creating a much more efficient company, maintaining strict risk management discipline, and reducing our portfolio of non-core assets and its losses.
Goldman Sachs May Face UK, Germany Inquiries After Suit (Bloomberg)
Prime Minister Gordon Brown called yesterday for the Financial Services Authority to start an inquiry, saying he was “shocked” at the “moral bankruptcy” indicated in the suit. Germany’s financial regulator, Bafin, asked the SEC for details on the suit, a spokesman for Chancellor Angela Merkel said.
Dick Bové : Goldman Case Weak But Risky For System (CNBC)
The analyst sent out a research report Monday morning calling the SEC’s case against Goldman Sachs weak, but says the events of Friday could be setting the stage for another financial system collapse.
Paulson May Face Litigation Following Goldman Suit, Christopher Whalen Says (Bloomberg)
“I’m not sure they will escape civil litigation arising from this,” the banking analyst said on April 16. “You can bet the parties who lost money here are going to be seeking redress.”
Krugman: Looters In Loafers (NYT)
The Professor: "Last October, I saw a cartoon by Mike Peters in which a teacher asks a student to create a sentence that uses the verb “sacks,” as in looting and pillaging. The student replies, 'Goldman Sachs.' Sure enough, last week the Securities and Exchange Commission accused the Gucci-loafer guys at Goldman of engaging in what amounts to white-collar looting."
Top Goldman Leaders Said to Have Overseen Mortgage Unit (NYT)
Goldman’s top ranks changed its stance on housing in December 2006. In a meeting in a windowless conference room on the executive floor, Mr. Viniar, the chief financial officer, and Mr. Cohn, the president, gathered about 10 executives for a briefing. Mr. Sparks, the head of the mortgage unit, walked them through the numbers. The group was unanimous: Goldman had to reduce its exposure to the increasingly troubled mortgage market. A few months later, in February 2007, senior executives began turning up on the trading floor. The message, one former employee said, was clear: management was watching.
SEC Investigating Other Soured Deals (WSJ)
Among the firms that created mortgage deals that soon went sour were Deutsche Bank AG, UBS AG and Merrill Lynch & Co., now owned by Bank of America Corp. It isn't known what deals the SEC is investigating. Further cases could hinge on whether the SEC sees what it considers misrepresentation, and not just questions such as whether a deal favored one client over another.
Chuck Schumer's Legendary Sandwich (NYP)
Roast beef, banana peppers, pickled jalapeños, extra onions, extra tomatoes, two layers of pickles, mayonnaise and mustard on hearty Italian bread -- it's known as The Schumwich. "No lettuce -- it kills the flavor!" Schumer is known to bark at aides who mess up the order. "Did you ask for extra pickles?" he bellows. "Did you watch them put them on, or did you not focus on it?"
Clinton Says Rubin, Summers Advice on Derivatives Was ‘Wrong’ (Bloomberg)
“I think they were wrong and I think I was wrong to take” their advice, Clinton said on ABC’s “This Week” program. Their argument was that derivatives didn’t need transparency because they were “expensive and sophisticated and only a handful of people will buy them and they don’t need any extra protection,” Clinton said. “The flaw in that argument was that first of all, sometimes people with a lot of money make stupid decisions and make it without transparency.”
SEC's new claws send shiver down Wall Street (Reuters)
"The SEC should be regarded as no longer a tame kitten and (instead) a fairly angry tiger," said John Coffee, a securities professor at Columbia Law School.
Countrywide Probe Shows Signs Of Life (WSJ)
Federal criminal investigators looking into the collapse of Countrywide Financial Corp. have been calling witnesses before a grand jury, say people familiar with the matter. Such a step suggests that the investigation of the one-time mortgage giant, which has been continuing for about two years, could be moving closer to a resolution.