Opening Bell: 07.20.10

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Goldman Sachs Reports 2010 Second Quarter Earnings Per Common Share of $0.78. Excluding the Impact of the U.K. Bank Payroll Tax and the SEC Settlement, Earnings Per Common Share were $2.75. (GS)
Revenue of $8.84 billion, conference call at 11am.

Fabrice Tourre Denies Charges (WSJ)
The 31-year-old Goldman vice president, in a court filing late Monday in response to the Securities and Exchange Commission's complaint, said that he can't be held responsible for "for any alleged failings" made by the firm. Mr. Tourre said he was simply doing his job. "The purported claims against Mr. Tourre and the allegations upon which they are based are improperly vague, ambiguous and confusing, and omit critical facts," according to the 13-page response. "The purported claims against Mr. Tourre are based solely on alleged actions and omissions concerning information known to many different Goldman Sachs employees working in various aspects of its business, including Legal, Compliance, sales and trading."

BNY Mellon, State Street Report Higher Earnings (Reuters)
Bank of New York Mellon reported second-quarter profit attributable to shareholders of $658 million, or 54 cents a share, up from $176 million, or 15 cents a share, a year earlier. Revenue climbed 3 percent to $3.3 billion. State Street said earnings on an operating basis climbed to $464 million from $441 million a year earlier, as earnings per share rose to 93 cents from 89 cents.

Pimco Sells Black Swan Protection as Wall Street Markets Fear (Bloomberg)
Pimco, Deutsche Bank and Citi are among firms offering clients tail-risk protection, either through funds or traded instruments that act as hedges. Nassim Taleb said few will have the stomach to stick with the strategy. “They will drop like flies,” said Taleb. “They and their customers will give up at some point. I’ve seen it before.”

Mega Banks Pressure Smaller Players (WSJ)
Bank of America, JPMorgan and Wells Fargo, which hold about $3.50 of every $10 in local deposits, are "squeezing" and "hoarding" customers "any way they can," says Jeff Wagner, chief financial officer at Florida Business Bank. Corporate customers are being told by the biggest lenders not to move their deposits to other banks or else they might not get a new loan, he says.

AIG's Tucker Said to Tell AIA Staff He'll Triple Unit's Value (Bloomberg)
Mark Tucker, who was named head of American International Group Inc.’s main Asia division, told staff that he plans to triple the unit’s value to $100 billion, according to a person with knowledge of his remarks.

SEC May Add 800 New Positions as Part Of Reform (Reuters)
Lock up your trannies.

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