Goldman Sachs Profit Doubles (MarketWatch)
Goldman's first-quarter net income rose to $3.3 billion, or $5.59 a share, from $1.66 billion, or $3.39 a share, in the year-ago period. The investment bank's revenue rose to $12.78 billion from $9.43 billion. Wall Street analysts expected earnings of $4.16 a share and revenue of $11 billion, according to a survey by FactSet Research. "Our performance in the first quarter reflects more signs of growth across the economy and the strength of our client franchise," said CEO Lloyd C. Blankfein. "In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people."
Goldman Employees Rally Around Blankfein (NYT)
GS say step off, bitches: "Goldman employees are shocked, even angry, that the Securities and Exchange Commission has filed a civil fraud suit against their bank. Goldman is ready for a fight, and Mr. Blankfein, his defenders insist, will prevail."
Mortgage Deal Got Rapid Approval By Goldman Panel (WSJ)
The SEC complaint doesn't name any of the members of the mortgage committee at the time. But it alleges that a memorandum by the committee the day it approved the deal shows it had full knowledge of Mr. Paulson's role in selecting the deal's investments. The March 12, 2007, memo by the committee said: "Goldman is effectively working an order for Paulson to buy protection on specific layers of the [deal 's] capital structure."
AIG Eyes Action on Goldman over $2 Billion CDO Losses (CNBC)
If AIG and others discover that their transactions had disclosure issues similar to those alleged in the SEC charges, they would be able to complain to the SEC, file a private lawsuit, or both, lawyers said.
Lehman Brothers Lashes Out At Goldman, SAC (NYP)
In addition to Goldman and SAC Capital, Lehman, which remains in bankruptcy, issued subpoenas to Citadel, Och-Ziff Capital Management and Greenlight Capital. The firms have until the middle of May to respond re: whether or not they're interested in taking the blame for Lehman's failure.
Larry King may talk his way out of divorce: Calls two-week truce with estranged wife Shawn Southwick (NYDN)
Asked Sunday if he and Southwick were reconciling, King said "you never know," TMZ reported. King admitted in a 1997 TV Guide interview that the couple didn't sign a prenup.
Citi’s Parsons To Meet ‘Vocal’ Shareholders Diluted by 81% (Bloomberg)
It's Evelyn Davis's favorite day of the year!
FSA Statement On Goldman Sachs (FSA)
"Following preliminary investigations the FSA has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations."
CalPERS To Examine Goldman Practices (NYT)
''We're very disturbed about the SEC charges,'' said Joe Dear, CalPERS' chief investment officer. ''We'll follow that closely.''
Magnetar Denies Creating Faulty CDOs (Dealbook)
“It was not a ‘bet’ that any C.D.O., any group of C.D.O.’s, or the housing or mortgage markets as a whole would fail either in the short term or the long term,” the firm wrote in a letter to investors.
Fuld: SEC, Fed Knew All (WSJ)
"The SEC and the Fed were privy to everything as it was happening," Mr. Fuld plans to say today on Capitol Hill, according to a copy of his prepared remarks. "I am not aware that any data was ever withheld from them, or that either of them ever asked for any information that was not promptly provided."