BofA Posts Profit on Trading After Mortgage Settlement (Bloomberg)
Net income was $168 million, down from $2.5 billion a year earlier, the Charlotte, North Carolina-based bank said today in a statement. Adjusted earnings per share, which exclude an accounting gain, were 40 cents, beating the 32-cent average estimate of 14 analysts surveyed by Bloomberg. Chief Executive Officer Brian T. Moynihan, 55, who was named chairman this month, has booked more than $70 billion in costs tied to his predecessor’s takeovers of Countrywide Financial Corp. and Merrill Lynch & Co. He’s said that the firm’s underlying earnings power would become apparent once the litigation costs subsided.
BlackRock Results Top Expectations (WSJ)
Analysts are closely watching the results of BlackRock to see how much the Sept. 26 departure of investor Bill Gross from Pacific Investment Management Co. has helped the world’s largest asset manager. BlackRock has been one of the beneficiaries of money flowing out of Pimco, and it said it saw $11.1 billion of investor inflows into its fixed-income division during the quarter, the most of any of its product segments.
Apple, Facebook to Pay for Female Workers to Freeze Eggs (Bloomberg)
Facebook started providing the benefit, which applies to employees and their spouses or domestic partners, in January. The Menlo Park, California-based social network offers full coverage, or as much as $20,000 in expenses, related to the procedure, which could include surrogacy or court fees. Apple, based in Cupertino, California, said it will start offering similar coverage next year. In a statement, Apple spokeswoman Kristin Huguet said the iPhone maker wants to “empower women at Apple to do the best work of their lives as they care for loved ones and raise their families.” The decisions come amid a debate about the best ways to recruit and retain women in the technology industry, where women are underrepresented as a percentage of the total workforce. Apple and Facebook are among the first companies to offer an option to freeze eggs.
Where Do the World’s Wealthiest People Live? (RTE)
After the U.S., the United Kingdom, France and Germany added more millionaires than any other countries last year. Of course, the U.S. has a lot of wealthy people because it’s a big country. But the analysis suggests that the U.S. is punching above its weight, even after accounting for population. Total wealth per adult increased by $340,340 in North America, or an increase of 10.2% from the prior year. Total wealth per adult grew by nearly $146,000 in Europe, an increase of 10.4%. By contrast, wealth per adult grew just 2.3% in China and it fell 1.9% in Latin America and 3.1% in India.
Fed Is Silent on Doomsday Book, a Blueprint for Fighting Crises (NYT)
The Doomsday Book, as it happens, is not a book. It is a collection of documents maintained by the New York Fed’s legal department. The contents include “an extensive legal history of Federal Reserve lending activities,” and memos on subjects that deal with the Fed’s authority to make loans to municipalities and restructure debts. There is no comparable collection in Washington. The New York Fed is the central bank’s firefighting department. The New York Fed keeps three full sets, plus an electronic version, and it circulates an index. These facts are on the first page of the index, which the lead lawyer for the plaintiffs, David Boies, read aloud in the courtroom last week. Timothy F. Geithner, who led the New York Fed during the early stages of the financial crisis before becoming Treasury secretary, testified that he kept in his office an abridged version, in a binder about two inches thick, containing the index and a selection of memos. He said he had never seen the full work. Mr. Geithner in his testimony also played down the importance of the Doomsday Book, saying that he had consulted it infrequently during the crisis because the Fed was quickly forced to take measures beyond anything it had done before.
Prosecutor behind 'crack hoes' Facebook post cleared (MN13)
An investigation has cleared a prosecutor for Orange and Osceola County of any wrongdoing after he posted a controversial message on Facebook mentioning "crack hoes" on Mother's Day. Assistant State Attorney Ken Lewis was demoted in May during an internal investigation to see if his comments or political views may have affected cases he worked on for the state of Florida. In an official letter obtained by News 13, Chief Assistant State Attorney Linda Drane Burdick told State Attorney Jeff Ashton she found no evidence that Lewis showed any bias related to his Facebook post in handling any cases assigned to him...Lewis later apologized to the public for his comments, admitting he used a "poor choice of words," but adding his message was the same. Lewis said he didn't think anyone but his Facebook friends would see the comment, but the post was published as public instead of Facebook's optional "friends only" setting for status updates, photos, links and other information.
Lawsky relents on ‘BitLicense’ regulations (NYP)
Benjamin Lawsky, head of the New York Department of Financial Services, appears to have walked back some of the regulator’s tough proposed regulations for the virtual currency that’s been under government scrutiny for money-laundering fears...Lawsky’s proposed “BitLicense” rules, aimed at safeguarding money and stop fraud in New York, won’t apply to individual bitcoin users, software makers, currency converters, and so-called “miners” that use massive computing power to access hidden bitcoins, the regulator said in prepared remarks for a speech Tuesday night.
The $11 Trillion Advantage That Shields U.S. From Turmoil (Bloomberg)
Call it America’s $11 trillion advantage: Consumer spending is likely to steer the U.S. economy safely through the shoals of deteriorating global growth and turbulent financial markets. The combination of more jobs, falling gasoline prices and low borrowing costs will help lift household purchases. Such tailwinds probably matter more than Europe’s struggles or the slackening in emerging markets that caused the Dow Jones Industrial Average last week to erase its gains for the year.
Citigroup Consumer Chief Plans to Leave (WSJ)
Manuel Medina-Mora, head of consumer banking and chairman of the company’s troubled Mexico unit, is preparing to leave in coming months, according to people with knowledge of the situation.
Financial executives could see up to 10% bonus boost (NYP)
Financial sector executives could see as much as a 10 percent boost to their annual bonuses this year after two of the largest US banks on Tuesday reported profits boosted by profitable trading — the type of business that leads directly to a cushy cash base. That would make it the second straight year of double-digit bonus check bumps. Last year, the average bonus check rose 15 percent to $164,530, according to New York State Comptroller Thomas DiNapoli.
Thief Pretends To Be Wedding Guest In Connecticut, Police Say (AP)
Police are looking for a man they say posed as a guest at a Connecticut wedding reception and stole gifts from the bride and groom. They say the man fled the Longshore Inn in Westport on Saturday night with a birdcage filled with wedding cards, many apparently containing cash for the couple. Police used dogs to try to track the man. They recovered the empty birdcage. The wedding crasher was seen on video surveillance cameras. Police have released screen grabs in the hope somebody might recognize him.