Goldman's Profit Slips, Tops Forecasts (MarketWatch)
GS reported third-quarter net income of $1.9 billion, or $2.98 a share, down from $3.19 billion, or $5.25 a share, in the year-ago period. Wall Street analysts polled by Thomson Reuters had forecast quarterly profit of $2.32 a share, on average. Economic conditions "continue to be challenging in a number of important markets," said Chief Executive Lloyd Blankfein in Goldman's earnings release.
Goldman's Expenses Drop (Bloomberg)
Third-quarter compensation fell to $3.83 billion, helping cut total operating expenses 20 percent to $6.09 billion. The firm allocated $13.1 billion for compensation in the first nine months of the year, or enough to pay each of its 35,400 employees $370,706 for the period. The figure fell 21 percent from the $16.7 billion set aside for compensation in the first nine months of 2009.
Bank of America's Losses Widen On Write-Downs (WSJ)
The bank posted a $10.4 billion write-down tied to new financial regulations in the third quarter as the Charlotte, N.C., company's revenue rose and its investment bank's fixed-income desk turned in better results than competitors. Because of the write-down, BofA's third-quarter loss widened to $7.3 billion, or 77 cents a share, compared with a loss of $1 billion, or 26 cents a share, a year earlier. Without the noncash write-down, the bank earned $3.1 billion, or 27 cents a share, and reported much-improved credit quality. Revenue climbed 2.3% to $27 billion. Analysts polled by Thomson Reuters had recently forecast earnings of 16 cents a share on $27.2 billion in revenue.
Brazil Steps Up Action in `Currency War,' Seeks Cease-fire (Bloomberg)
Brazil’s real dropped the most in two weeks after Finance Minister Guido Mantega raised taxes on foreign inflows for the second time this month to prevent appreciation and protect exports from what he called a global currency war. “This currency war needs to be deactivated,” Mantega told reporters late yesterday. “We have to reach some kind of currency agreement.”
Banks Restart Foreclosures (WSJ)
Bank of America reopened more than 100,000 foreclosure actions, declaring that it had found no significant problems in its procedures for seizing homes. GMAC Mortgage said that it also is pushing ahead with an unspecified number of foreclosures that came under intense pressure.
Teddy Forstmann: I'm Being Extorted By A Shake-Down Artist (TDB)
In a wide-ranging interview with The Daily Beast, Forstmann denied all the allegations, and vowed revenge against Agate, whom he called a "stalker," a "shakedown artist," and a "scumbag lowlife." But as Agate's charges have made their way into the press, Forstmann has had to defend himself before clients..."At first this was an annoyance," Forstmann said. "But now the sheer madness of it all is having an impact on my business. By the way, I didn't even know what shvartze meant before all this came about. Can you imagine I adopt two black kids without a wife and I'm a racist? (Forstmann, a lifelong bachelor, is now dating celebrity chef Padma Lakshmi.) That shows he's really insane."
Hong Kong Wants Time for Hedge Funds to Meet New EU Rules (Bloomberg)
Hong Kong’s government is in talks with the European Union to help hedge-fund managers in the city cope with proposed regulations that may make it harder to raise assets in Europe. Hong Kong is lobbying the EU for a “dual regime” which would allow the current system under which they raise assets to continue for “a number of transition years” before complying with Europe’s “passport regime,” said Julia Leung, Hong Kong’s undersecretary of financial services and the treasury. “If the threshold is set too high for assets into the EU market, then it will disrupt our business,” Leung said today
Man Arrested For Sexually Assaulting Horse (Greenwich Time)
Officers arrived and located the male, identified as Marian Wegiel, 63, of 11 Partridge Lane, in the corral. Wegiel stated that he was comforting the horses that were scared by a loud noise. Wegiel stated that he may have inadvertently put his fingers inside one of the horses.
Edoma Capital raises over $1 billion (MW)
Edoma Capital, a new hedge fund firm run by Pierre-Henri Flamand, has raised more than $1 billion in capital and commitments from investors, a person familiar with the matter said Monday. London-based Edoma raised about $820 million for its launch later this year. The firm also got commitments to invest another $450 million in the future, the person said on condition of anonymity. Flamand ran Goldman Sach’s Principal Strategies group from 2007 until he left the investment bank earlier this year to start Edoma.