Morgan Stanley, Goldman Earnings Highlight Firms’ Diverging Paths Since Crisis (WSJ)
Last year, Mr. Gorman and top lieutenant Colm Kelleher, a former trading chief, fired 25% of fixed-income traders and slashed the capital available to the unit for bets. Still, that division—which trades everything from corporate bonds to oil to interest-rate swaps—has kept revenue from falling sharply. It has made more than $1 billion in revenue for five straight quarters, hitting a goal Mr. Gorman set last year.
Goldman Partners Mark End of Era as Stock Holding Drops Below 5% (BBG)
After departures and personal stock sales, the stake held by bank’s most senior rank slipped to 4.79 percent as of July 3, according to a regulatory filing Wednesday. That’s down from 5.65 percent in late January -- and from more than 60 percent after the firm’s initial public offering in May 1999. Periodic filings have shown for years that their holding has been gradually shrinking, and as long as it’s below 5 percent, the bank isn’t required to provide updates.
Goldman Sachs is on a hiring spree to become the Google of Wall Street (BI)
The New York-based financial services giant is hiring for Marquee, a platform that provides clients access to the bank's analytics, data, content and execution capabilities via a browser or an API. The bank is looking for talent to fill positions in its New York office, spanning from associate developer to vice president. The bank has posted eight job ads for roles relating to Marquee in New York in the past month or so, and has also recently advertised a further 12 roles in Bengalaru and four in Warsaw.
Evan Spiegel is finally having sex with Miranda Kerr, and Snap investors are furious (PageSix)
One incensed Snap investor told Page Six, “Where are the shareholders’ yachts? Evan is chilling on the coast while Snap burns under Facebook competition. He’s feasting on Italian delicacies while shareholders starve. ‘Let them eat losses!’ ”
Deutsche Bank Preparing for Hard Brexit, CEO Cryan Tells Employees (BBG)
Deutsche Bank AG is preparing for a hard Brexit and will probably book the “vast majority” of its assets in Frankfurt, Chief Executive Officer John Cryan tells employees in a videotaped message. “There’s an awful lot of detail to be ironed out and agreed; depending on what the rules and regulations turn out to be, we will try to minimize disruption for our clients and for our own people,” Cryan says in the video. “But inevitably roles will need to be either moved or at least added in Frankfurt.”
Saudi Aramco IPO will leave fund industry with no place to hide (FT)
At the very least, investors will have to decide whether to buy Saudi Aramco in addition to energy groups BP and Shell, or instead. Anyone paid to pick stocks or manage money will be required to have a view on succession in the House of Saud, the effect exports of US shale oil have on prices, and where dividends to shareholders rank in the priorities of a nation state.
Former Employee Testifies Shkreli Threatened Him and His Family (NYT)
Mr. Pierotti joined Mr. Shkreli’s hedge fund, MSMB, in August 2011, to start a consumer fund. With Mr. Shkreli’s blessing, he testified, he put all of MSMB Consumer��s money into one stock, Rick’s Cabaret, a chain of strip clubs. “One day, Martin came in and said, I want it all sold today; I need the money,” Mr. Pierotti testified. Mr. Pierotti liquidated the fund, he said. Soon after, when Mr. Pierotti walked into the MSMB offices, he saw “guys were packing computers and the flat screens into, like, rolling suitcases,” he said. “The bills had not been paid.”
Return On Equity At Record Low (Ritholtz)
The all-time highs we are seeing in equity valuations is having a significant impact on corporates. One distinct feature of this rally is the steady decline in the return on equity, as seen in the flow of funds data. Return on equity in corporate America is currently at the lowest level since World War II.
Doctors Remove 27 Contact Lenses From Woman’s Eye (HuffPo)
As bad as it sounds to have 17 lenses stuck together in your eye, specialist trainee ophthalmologist Rupal Morjaria told the website that doctors eventually found an additional 10 individual contact lenses in the same eye. All of the lenses were monthly disposable contacts that the woman had forgotten about, Optometry Today reported. “We were really surprised that the patient didn’t notice it because it would cause quite a lot of irritation while it was sitting there,” Morjaria said.