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Goldman Sachs enlists American Express to take on cash management titans like Citigroup [CNBC]
Built using cloud technology to offer a slick experience for users, Goldman’s platform employs algorithms to help decide which payment form is best to use — card, wire, or Automated Clearing House — to save companies time and maximize card rewards. It also offers greater visibility into the status of payments and levels of cash.
That’s an upgrade from the patchwork of decades-old systems used by competitors, which force users to shuttle between multiple programs to manage thousands of daily payments, according to Dean Henry, executive vice president of global commercial services at AmEx. Citigroup, JPMorgan Chase and other global banks are the dominant players in cash management.

Waller: If Inflation Doesn’t Cool by Year-End, Fed Could Bring Rate Increases Forward [WSJ Pro]
Mr. Waller said in a virtual appearance Tuesday that when it comes to moving up what is now a near zero federal-funds rate target range, “the pace of continued improvement in the labor market will be gradual....”

One of the most bullish firms on Wall Street just hiked its S&P 500 price target — here’s why [MarketWatch]
“The future is uncertain. And financial markets are inherently unpredictable. Thus, one should view our S&P 500 target as merely a directional observation. That said, we believe a strong risk-on environment is underway. We do not think consensus is that bullish. We already know that investors got very pessimistic in September,” [Fundstrat Global Advisors] said.
The improvement in market technicals, such as the clearing of the 50-day moving average, “is actually suggesting that underlying trends are getting stronger.”

Bank of America’s California Partnership, Long Flourishing, Is Roiled by Unemployment Fraud [WSJ]
To fight [fraud], the state and bank cut off benefits to hundreds of thousands of recipients. Many were out-of-work Californians with legitimate claims, who soon took to social media or called state legislators to complain about both the government and the bank. Bank of America wants to stop distributing the benefits for California but the state has told it no, locking the two into an uneasy union…. In a letter to lawmakers, Bank of America said that the program has been profitable only one year out of the past 10. The bank says it lost roughly $178 million last year, far more than any previous year, after beefing up call-center staff and spending more on fraud prevention.

Facebook is planning to rebrand the company with a new name [The Verge]
A possible name could have something to do with Horizon, the name of the still-unreleased VR version of Facebook-meets-Roblox that the company has been developing for the past few years…. Facebook has been steadily laying the groundwork for a greater focus on the next generation of technology. This past summer it set up a dedicated metaverse team…. Complicating matters is that, while Facebook has been heavily promoting the idea of the metaverse in recent weeks, it’s still not a concept that’s widely understood.

ECB hawk and German central bank chief Jens Weidmann quits, cites personal reasons [CNBC]
“I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf — for the Bundesbank, but also for me personally,” Weidmann said in a letter to the bank’s staff…. Weidmann’s decision also means that the incoming German government, likely led by the socialist SPD party, will play a role in the choice of the next governor.
Andrew Kenningham, chief Europe economist at Capital Economics, said that “the new (Bundesbank) President is likely to be more supportive of the generally dovish and ‘green’ direction in which Christine Lagarde is leading the ECB.”

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Opening Bell: 4.27.21

Game doesn’t Stop; Ant autopsy; double-check that Zoom invite; what’s in a name? (in this one, no ‘E’s anymore); and more!

Opening Bell: 03.15.12

Goldman Roiled by Op-Ed Loses $2.2 Billion for Shareholders (Bloomberg) Goldman Sachs slid $4.17 to $120.37 yesterday, leaving the shares still up 33 percent this year...Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a “decline in the firm’s moral fiber.” They responded in a memo to current and former employees, saying that Smith’s assertions don’t reflect the firm’s values, culture or “how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients.” You Have Less Than Two Hours To Sign Up For The Dealbreaker NCAA Tournament Challenge (DB) Do it here, do it now, or lose us forever (the password is: animalliar). SEC Cracks Down On Pre-IPO Trading (WSJ) Federal regulators are cracking down on an obscure but booming market for trading shares in companies before they go public. The Securities and Exchange Commission brought charges against two money managers, alleging they misled and overcharged investors on funds formed to buy shares of Facebook Inc., Twitter Inc. and other social-media companies. A so-called secondary market in these companies' private shares has grown rapidly as more investors seek to buy into the companies before their initial public offerings, hoping to profit later from a "pop" in the stock price after the IPO. The allegations by the SEC mark the first major regulatory blow to the market, which the agency says emerged in 2009 and which industry participants say has been fueled lately on the anticipation of a Facebook IPO in the coming months. Citi Rejection Stings Pandit (WSJ) The board of directors held a meeting by telephone shortly after the Federal Reserve said Tuesday it had turned down the capital plan the New York company submitted as part of its latest "stress test," according to people familiar with the situation. Neither Citigroup nor the Fed disclosed what the bank had been seeking, but in recent months the bank's executives had repeatedly said they wanted to return capital to shareholders through dividends or share buybacks in 2012. "Everyone was taken by surprise," said a person with knowledge of the reaction among Citigroup executives and board members. Jobless Claims in U.S. Decrease, Matching Four-Year Low (Bloomberg) Claims for jobless benefits dropped last week in the U.S., matching the lowest level in four years, more evidence the labor market is improving. Applications for unemployment insurance payments fell by 14,000 to 351,000 in the week ended March 10, Labor Department figures showed today. Economists forecast 357,000, according to the median estimate in a Bloomberg News survey. Claims reached the same level a month ago, the lowest since March 2008. UBS Cuts Bonus Pool (WSJ, DB) That would be putting it mildly. JPMorgan's Dimon Responds to Goldman Column (Reuters) J.P. Morgan CEO Jamie Dimon told employees to resist taking advantage of competitors and to focus instead on strengthening the bank's own standards, in an internal memo sent in response to the firestorm engulfing Goldman Sachs after a former banker published his resignation letter in the New York Times. Meredith Whitney: Banks Oversold, Muni Defaults Still Coming (CNBC) "The banks should trade at tangible (book value) or a little better," she said. "But that doesn't mean they're off to the races and that there's tremendous momentum behind the fundamentals of these banks." Goldman fights back after employee's scathing public exit (NYP) After the memo was distributed, Goldman brass went into damage-control mode, fielding calls from investors and clients searching for reaction from the 143-year-old firm. Blankfein was light-hearted about the surprise attack but tried to be extremely responsive to client inquiries about it, sources said. Privately, some Goldman officials played down Smith’s significance within the firm, describing him as a “disgruntled mid-level employee.” Two Billionaires Side With Greg Smith Against Goldman (Forbes) Jim Clark said Smith’s criticism of Goldman’s treatment of its customers is “what I experienced over the four to five years” he entrusted some of his funds with the firm’s private wealth management division...Billionaire Stephen Jarislowsky, CEO of Canadian investment firm Jarislowsky, Fraser, says he also supports Smith’s op-ed. “It’s about ethics and fiduciary responsibility, and the lack thereof,” explains Jarislowsky. “If you’re a fiduciary you should work for your client and not for anyone else. If you’re a doctor, you’re not supposed to work for your pocketbook, but for your client’s health.” Chinese Economy Already in ‘Hard Landing,’ JPMorgan’s Mowat Says (Bloomberg) China’s economy is already in a so- called “hard landing,” according to Adrian Mowat, JPMorgan Chase & Co.’s chief Asian and emerging-market strategist. “If you look at the Chinese data, you should stop debating about a hard landing,” Mowat, who is based in Hong Kong, said at a conference in Singapore yesterday. “China is in a hard landing. Car sales are down, cement production is down, steel production is down, construction stocks are down. It’s not a debate anymore, it’s a fact.” Arrest warrant issued for Russell Brand over iPhone rage (NYP) Brand was named in a police report on Monday night after allegedly grabbing a photographer's cell phone out of his hand and hurling it through the window of a law firm. The paparazzo, Timothy Jackson, filed a police report immediately after the incident, citing "criminal damages." According to Jackson, he had been out with several fellow photographers when he started taking pictures of the 36-year-old British comedian and actor with his iPhone. Brand allegedly "flipped out," snatched the cell phone and threw it at a building, breaking a window in the process. His reps have contacted the law firm and offered to pay for the broken window.

By Lishabai Yi (Middle Kingdom Media Ltd.) [CC BY-SA 4.0], via Wikimedia Commons

Opening Bell: 2.19.21

Izzy Englander cutting blank checks to himself; compliant Coinbase; Jeff Immelt doesn’t know; Steve Schwarzman’s dealing with more ingrates; and more!

Photo: Getty Images.

Opening Bell: 10.17.17

RBR wants to take the First Boston out of Credit Suisse; Europe doesn't want your tired, your hungry, your bankers; how a real football fan respects the flag; and more.

By Thomas Wolf (Der Wolf im Wald) (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 8.16.17

Frankfurt doesn't want your tired, your hungry, your Brexit bankers; Rajat Gupta just wants to be normal, unassuming captain of industry again; Cheetos-only restaurant signals the end of western civilization as we know it; and more.

Opening Bell: 03.09.12

US Adds 227,000 Jobs (WSJ) U.S. job creation remained solid in February and was stronger in previous months than initially thought, marking one of the economy's best stretches of the nearly three-year-old recovery. Jobs outside of agriculture grew by 227,000 last month, the Labor Department said Friday. Meanwhile, employers added 284,000 jobs in January—roughly 40,000 higher than an initial estimate—and job creation was also revised higher for December. Overall, the economy has added an average 245,000 jobs over the past three months—more than double the pace of job creation between May and November. The unemployment rate, obtained by a separate survey of U.S. households, remained at 8.3%, as both hiring and the number of job seekers increased. Greece Passes Key Debt Test (WSJ) Just over 80% of Greece's private-sector creditors had agreed by a Thursday evening deadline to turn in their bonds for new ones with less than half the face value, touching off a massive debt swap that marks a seminal moment in Europe's long-frustrated efforts to rescue its most financially vulnerable nation. The Greek government announced the results of its proposed restructuring early Friday morning. It said 83% of bondholders had voluntarily submitted to the deal, and that it would invoke so-called collective-action clauses to impose the exchange on most of the rest, bringing participation up to 96%. Citigroup Gives Vikram Pandit $14.9 Million 2011 Pay Package (Bloomberg) The bank said it gave Chief Executive Officer Vikram Pandit $14.9 million in total compensation for 2011, including his first bonus since the lender almost collapsed in 2008. The package included $1.67 million of salary and a $5.33 million cash bonus, the New York-based lender said yesterday in a regulatory filing. The award reflects Citigroup’s return to profitability under Pandit, who became CEO in December 2007, the bank’s personnel and compensation committee said in the filing. The payout also rewards his performance last year, which he spent grappling with a revenue slump as the European sovereign-debt crisis roiled markets. DA putting the screws to 'brothel boss' Anna Gristina (NYP) They pressed her over and over, pushed a list of 10 Big Apple power players at her — and demanded she spill the beans on the roster of real-estate moguls and investment bankers. “Some I knew, some I didn’t,” accused Upper East Side brothel boss Anna Gristina told The Post yesterday about an hours-long grilling she received from Manhattan prosecutors. But they kept pressing, bringing in more and more investigators to intimidate her. “In effect, it was, ‘Tell us what we want, and we’ll let you go,’ ” Gristina said. But her defiance, she believes, is what led them to charge her with a single count of prostitution. And that’s when she realized she must be part of a much larger investigation. “It’s not about me; it’s bigger than me,” Gristina said during an exclusive interview at Rikers Island, where she remains jailed. “They’re trying to sweat me out. They are clearly trying to break me.” The self-described “hockey mom” and real-estate developer claims to have no idea why prosecutors are so intent on digging up dirt on those men — half of whom she said she knew as either friends or business associates. “I’d bite my tongue off before I’d tell them anything,” Gristina vowed. Nasdaq, NYSE still fighting over Facebook listing (NYP) The chief executives of both exchanges are said to have taken the rare move of personally appearing at pitch meetings..."The history would go toward Nasdaq, but the trend is toward the NYSE," said the co-head of NYSE's listings business, Scott Cutler. Meanwhile, his Nasdaq counterpart, Robert McCooey, shot back, "Just because someone climbs to the highest mountain and shouts that they're the home for technology doesn't mean they're the home for technology. Just because I could say 'I'm 6 foot 2 and I look like Brad Pitt' doesn't mean it's true." Banks foreclosing on churches in record numbers (Reuters) The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance. Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group. In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before. BofA Makes Mortgage Deal (WSJ) More than 200,000 financially strapped households will have a chance to sharply reduce their mortgage balances under a side deal negotiated by Bank of America Corp. that could allow the bank to avoid as much as $850 million in penalties. Under the arrangement, part of the recent $25 billion settlement of alleged foreclosure abuses between government officials and five large lenders, Bank of America will make deeper and broader cuts in balances than other banks. The plan will offer qualifying borrowers a chance to cut their mortgage balances to their home's current market value. Other banks are required under the national settlement to cut principal to no more than 120% of the home's value. Donald Trump, pal of New York Jets owner Woody Johnson, would love to see Peyton Manning play for the Miami Dolphins (NYDN) “First of all (Dolphins owner) Steve Ross is a very good friend of mine,” Trump bellowed before a roomful of reporters and TV cameras at the WGC Cadillac Championship, where Tiger Woods, Phil Mickelson and Rory McIlroy were fighting it out in the first round. “He’s a member of my club in Palm Beach and I think Peyton would be great for Miami. It would be a fantastic thing for this area...I’m a fan. I’m a friend. I did a commercial with Peyton and his brother for Oreo, which got the commercial of the year, and I think it was because of them, not of me. But I did a big commercial and it was an amazing commercial."

Opening Bell: 05.23.12

Merkel Heads For Debt Showdown With Hollande At EU Summit (Bloomberg) German Chancellor Angela Merkel said she won’t shy away from disagreeing with French President Francois Hollande at the summit in Brussels over dinner at 7 p.m., the next major appointment of leaders seeking to allay concerns that Greece may quit the euro, putting Spain and Italy at risk as well. Good cooperation “doesn’t exclude differing positions,” Merkel told reporters yesterday in Chicago during a meeting of the North Atlantic Treaty Organization. “These may very well arise in the context of the European discussions.” Morgan Stanley Says It Played By Rules In Facebook’s IPO (Bloomberg) “Morgan Stanley followed the same procedures for the Facebook offering that it follows for all IPOs,” Pen Pendleton, a spokesman for the New York-based investment bank, said yesterday in an e-mailed statement. “These procedures are in compliance with all applicable regulations.” Inside Facebook's Fumbled Offering (WSJ) Interviews with more than a dozen people involved in the IPO reveal that Facebook approached its deal differently than companies typically do. Facebook CFO Ebersman kept a close grip on every important decision on the stock offering, not deferring to his bankers the way many companies do, according to the people familiar with planning...Mr. Ebersman had asked Facebook's early shareholders to fill out a form indicating how many shares they would like to sell in the IPO and at what price, and to indicate whether they would be willing to sell more if the share count was increased, the person said. When Mr. Ebersman learned from Mr. Grimes that there was outsize investor demand, he went back to those forms and reached out to early shareholders to cash out more stock, the person said. Gupta On Rajaratnam's VIP List (NYP) Jailed hedge fund manager Raj Rajaratnam deemed only a handful of people — including ex-Goldman Sachs director Rajat Gupta — important enough to disturb his trading day, Rajaratnam’s former assistant testified yesterday in Manhattan federal court. Carlyn Eisenberg, the government’s first witness in the trial of Gupta on insider-trading charges, said his name was on a “special list” of those whose calls she was to put through to her then-boss. She said it was one of those calls in September 2008 that triggered a flurry of trading activity at Rajaratnam’s Galleon Group, shortly before Goldman Sachs announced it had landed a $5 billion investment from famed investor Warren Buffett...Eisenberg recalled getting a call several years ago from a man whose voice she recognized as being on the list at the time, although she said she couldn’t identify it now as belonging to Gupta. The call, which phone records later showed came from Gupta’s McKinsey & Co. office, arrived minutes before the close of markets on Sept. 23, 2008, according to Eisenberg. The caller “said it was urgent and he needed to speak to Raj,” she told jurors. After Rajaratnam took the call, he immediately brought Galleon co-founder Gary Rosenbach into his office. When Rosenbach emerged, he began making calls, saying, “buy Goldman Sachs,” Eisenberg testified. More Finance Chiefs Willing To Pay Bribes, Global Survey Finds (Bloomberg) Fifteen percent of chief financial officers around the world are willing to make cash payments to win or retain business, according to a survey of executives interviewed by the accounting firm Ernst & Young LLP. The firm’s annual “global fraud survey” of 400 finance chiefs, interviewed from November to February, found a greater tolerance of bribery compared with the previous year, when 9 percent said they would make cash payments. Five percent of CFOs said they would misstate financial performance, while 3 percent said that the year before, according to the survey. Troubleshooter In Running To Succeed Dimon (FT) For relaxation, Matt Zames shoots things. Mostly birds. But the 41-year-old JPMorgan Chase executive does not have much free time for hunting now. He is busy mopping up his bank’s biggest mess since the financial crisis. Last week Mr Zames was appointed to replace Ina Drew as head of the bank’s chief investment office, whose London-based trading unit has wiped $30bn off its parent’s market capitalisation. “When you’re in a difficult spot you find out who you want to be in a foxhole with,” says Jamie Dimon, chief executive of JPMorgan. “Matt puts his hand up.” Barclays To Sell Entire BlackRock Stake For $5.5 Billion (Bloomberg) The lender sold about 26.2 million shares to money managers for $160 each, London-based Barclays said in a statement yesterday. Underwriters have the option to purchase an additional 2.6 million. New York-based BlackRock will buy back a further 6.38 million shares at $156.80 per share, about 8.8 percent less than the stock’s $171.91 close on May 18, the last trading day before the deal was announced. Tall Tales About Private Equity, By Steve Rattner (NYT) To be sure, some of Bain’s large leveraged buyouts — notably, Domino’s Pizza — added jobs. But Mr. Romney left Bain Capital two months after the Domino’s investment (7,900 new jobs claimed) was finalized. Aware of private equity’s reputation, Mr. Romney still trots around the country erroneously calling himself a “venture capitalist.” And in a further effort to deflect attention from the Bain Capital debate, Mr. Romney last week argued that President Obama was responsible for the loss of 100,000 jobs in the auto industry over the past three years. That’s both ridiculously false (auto industry and dealership jobs have increased by about 50,000 since January 2009) and a remarkable comment from a man who said that the companies should have been allowed to go bankrupt and that the industry would have been better off without President Obama’s involvement. Adding jobs was never Mitt Romney’s private sector agenda, and it’s appropriate to question his ability to do so. Stryker CEO Sought Nod For Romance (WSJ) Mr. MacMillan, 48 years old, was forced out partly because certain board members became bothered by his handling of a relationship with a former flight attendant for the company's corporate jets while his wife pursued a divorce, according to people familiar with the matter. What distinguishes his story from others in this well-worn genre is that, according to a person familiar with Mr. MacMillan's version of events, the CEO approached Mr. Parfet and Louise Francesconi, head of the board's governance and nominating committee, in late September seeking their approval to date the employee, Jennifer Koch. Facebook Analysts Who Shunned Herd Now Look Like Heroes (Bloomberg) The social networking site lost 19 percent through yesterday to $34.03 after opening at $42 on May 18. That’s consistent with warnings from Richard Greenfield of BTIG LLC and Brian Wieser of Pivotal Research Group LLC, who says the stock will slip as low as $30. It left five firms with bullish calls predicting an average rally of 36 percent and one, Tom Forte of Telsey Advisory Group, saying shares may rise 47 percent to $50.

Opening Bell: 3.4.15

EU doesn't want to talk about 3rd Greek bailout; Private equity pay makes rest of Wall Street look like paupers; Evans doesn't want to see rate hike 'til 2016; "Teacher who told pupil 'I shagged your maw' is fired"; AND MORE.