Goldman Execs Arming Themselves for Uprising?
Goldman Sachs executives may be arming themselves out of fear of a public uprising.
All Blog Posts from Econwatch
Read all 'wall street' posts in Econwatch
December 2, 2009 12:27 PM
November 24, 2009 9:49 AM 
Nearly a quarter of U.S. mortgage holders owe more on their loans than their houses are worth, according to a report today in the Wall Street Journal.
Data from First American CoreLogic, a Santa Ana, Calif.-based real-estate information company, shows that in the third quarter of 2009 almost 10.7 million households had negative equity in their homes.
Despite good news on the house resales front — it was reported Monday that home sales surged for the second month in a row in October, climbing to the highest level in 2½ years, due in part to a first-time buyers' tax credit — the Journal's Ruth Simon and James R. Hagerty write that this swelling of "underwater mortgages" threatens the prospects of a sustained housing recovery.
1 in 4 Mortgage Borrowers Is Under Water
(CBS/AP)
Data from First American CoreLogic, a Santa Ana, Calif.-based real-estate information company, shows that in the third quarter of 2009 almost 10.7 million households had negative equity in their homes.
Despite good news on the house resales front — it was reported Monday that home sales surged for the second month in a row in October, climbing to the highest level in 2½ years, due in part to a first-time buyers' tax credit — the Journal's Ruth Simon and James R. Hagerty write that this swelling of "underwater mortgages" threatens the prospects of a sustained housing recovery.
November 13, 2009 11:51 AM 
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Here's my interview with Charlie Gasparino, author of "The Sellout."
Gasparino: The SEC is "INEPT"
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Here's my interview with Charlie Gasparino, author of "The Sellout."
November 2, 2009 11:48 AM 
Last year's outbreaks of H1N1 virus hit schools hard, shutting many as transmission of the virus among students was confirmed or suspected.
Betsy McKay and Dana Mattioli of The Wall Street Journal write today about how businesses are increasingly worried that outbreaks of swine flu among their workforce may stall their operations — and are taking steps to limit or prevent the spread of the virus among employees.
Inoculating Firms Against Sick-Outs
(AP Photo/Greg Baker)
Betsy McKay and Dana Mattioli of The Wall Street Journal write today about how businesses are increasingly worried that outbreaks of swine flu among their workforce may stall their operations — and are taking steps to limit or prevent the spread of the virus among employees.
October 19, 2009 12:34 PM 
Although the border separating the United States and Canada might be considered the most peaceful in the world, the weakening American dollar has caused an economic war of sorts between businesses selling products to their respective neighboring countries.
The Wall Street Journal highlighted Monday how the weak greenback is hurting a Canadian Christmas tree grower ($). Although Matthew Wright grows his Balsam firs in Canada's Nova Scotia province, most of the 14,000 trees he sells every year are sent to the United States and paid for in U.S. dollars. With the Canadian dollar — or "loonie" as it's called there — considered a stronger currency than the buck, that means Wright makes less of a profit on each of the trees he sells.
"Mr. Wright can't raise prices; competition from U.S. Christmas-tree growers is too fierce. Nor can he lower costs; he's already paid for fertilizer, pesticide and labor in Canadian dollars," the Journal reported. "Since Christmas trees only sell in November and December, the exchange rate during those months can make or break Mr. Wright's year."
Weak U.S. Dollar Hurts Canada's Cross-Border Commerce
(AP)
The Wall Street Journal highlighted Monday how the weak greenback is hurting a Canadian Christmas tree grower ($). Although Matthew Wright grows his Balsam firs in Canada's Nova Scotia province, most of the 14,000 trees he sells every year are sent to the United States and paid for in U.S. dollars. With the Canadian dollar — or "loonie" as it's called there — considered a stronger currency than the buck, that means Wright makes less of a profit on each of the trees he sells.
"Mr. Wright can't raise prices; competition from U.S. Christmas-tree growers is too fierce. Nor can he lower costs; he's already paid for fertilizer, pesticide and labor in Canadian dollars," the Journal reported. "Since Christmas trees only sell in November and December, the exchange rate during those months can make or break Mr. Wright's year."
October 14, 2009 11:51 AM 
Happy days are here again for Wall St. workers.
Twenty-three major U.S. banks and investment firms are on a pace to dole out $140 billion in compensation this year, exceeding the pre-crisis levels of 2007, according to a Wall Street Journal report ($).
Many banks have quickly returned to strong revenue levels a year after the entire financial system was threatened – a crisis that sparked public outrage over the banks' risky practices and exorbitant compensation levels and prompted a multi-billion-dollar government rescue.
But now, with the stock market recovering and the credit crunch easing, banks and investment houses are pumping money back into human capital.
The $140 billion estimate, which amounts to a $143,400 average worker salary, is 20 percent higher than last year's $117 billion. It also beats out 2007's record level of $130 billion.
Among the companies included in the Journal's survey are banks JPMorgan Chase, Bank of America and Citigroup and investment firms Goldman Sachs and Morgan Stanley.
The Journal analyzed the firms' quarterly compensation disclosures and calculated them as a percentage of quarterly earnings. They then extrapolated compensation estimates based on annual revenue projections – which are expected to reach $437 billion this year.
Wall St. Salaries on Record-Setting Pace
(CBS / iStock Photo)
Twenty-three major U.S. banks and investment firms are on a pace to dole out $140 billion in compensation this year, exceeding the pre-crisis levels of 2007, according to a Wall Street Journal report ($).
Many banks have quickly returned to strong revenue levels a year after the entire financial system was threatened – a crisis that sparked public outrage over the banks' risky practices and exorbitant compensation levels and prompted a multi-billion-dollar government rescue.
But now, with the stock market recovering and the credit crunch easing, banks and investment houses are pumping money back into human capital.
The $140 billion estimate, which amounts to a $143,400 average worker salary, is 20 percent higher than last year's $117 billion. It also beats out 2007's record level of $130 billion.
Among the companies included in the Journal's survey are banks JPMorgan Chase, Bank of America and Citigroup and investment firms Goldman Sachs and Morgan Stanley.
The Journal analyzed the firms' quarterly compensation disclosures and calculated them as a percentage of quarterly earnings. They then extrapolated compensation estimates based on annual revenue projections – which are expected to reach $437 billion this year.
October 9, 2009 12:28 PM
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Why is everyone surprised to learn that Treasury Secretary Timothy Geithner's speed dial is filled with Wall Street CEOs? Even before the financial crisis, when he was running the New York Fed, Geithner was delighted to act as the nerdy wanna-be for the exclusive power club, garnering invitations to corporate dining rooms from his former mentors.
In fact, Geithner was chosen as Treasury Secretary precisely because he was wired into the big banks. There's a reason that Wall Street cheered his nomination to the post. For all of its talk about change, the Obama Administration is filled with recycled Clintonistas, like Geithner and Lawrence Summers, who were at the forefront of deregulation.
Geithner's Phone Log and Reg Reform
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Why is everyone surprised to learn that Treasury Secretary Timothy Geithner's speed dial is filled with Wall Street CEOs? Even before the financial crisis, when he was running the New York Fed, Geithner was delighted to act as the nerdy wanna-be for the exclusive power club, garnering invitations to corporate dining rooms from his former mentors.
(AP)
In fact, Geithner was chosen as Treasury Secretary precisely because he was wired into the big banks. There's a reason that Wall Street cheered his nomination to the post. For all of its talk about change, the Obama Administration is filled with recycled Clintonistas, like Geithner and Lawrence Summers, who were at the forefront of deregulation.
October 1, 2009 11:04 AM
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Ken Lewis, the embattled CEO of Bank of America has always been full of surprises. It sure took my breath away when Lewis bought Countrywide Mortgage on the eve of the biggest mortgage meltdown in US history, not to mention his shot gun $50 billion acquisition of Merrill Lynch, after conducting what seemed to be five minutes of due diligence.
The guy likes to spring news on the market, which is why Ken Lewis' resignation from Bank of America shouldn't have been all that surprising. But it was and here's why: Ken Lewis had essentially gotten everything he had ever wished for. He had finally cobbled together enough companies to vault him into the big leagues of banking. The man who started at Nations Bank had built a global financial conglomerate that demanded respect even from those Wall Street execs that Lewis supposedly despised.
B of A's Ken Lewis: Beware What You Wish For
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Ken Lewis, the embattled CEO of Bank of America has always been full of surprises. It sure took my breath away when Lewis bought Countrywide Mortgage on the eve of the biggest mortgage meltdown in US history, not to mention his shot gun $50 billion acquisition of Merrill Lynch, after conducting what seemed to be five minutes of due diligence.
(AP Photo/Bebeto Matthews)
The guy likes to spring news on the market, which is why Ken Lewis' resignation from Bank of America shouldn't have been all that surprising. But it was and here's why: Ken Lewis had essentially gotten everything he had ever wished for. He had finally cobbled together enough companies to vault him into the big leagues of banking. The man who started at Nations Bank had built a global financial conglomerate that demanded respect even from those Wall Street execs that Lewis supposedly despised.
September 14, 2009 1:36 PM
Obama's Financial Reform: All Talk, No Action
It's just so predictable: use the anniversary of Lehman's bankruptcy to talk about regulatory reform. President Obama's Financial Rescue and Reform speech today at Federal Hall (a beautiful building downtown, that's worth a visit if you are in the neighborhood) was laden with some harsh words: "there are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them."
As my mother likes to say, talk is cheap. There are three distinct trends that belie the President's "tough" stance on financial reform:
1. President Obama has made health care the number one priority, eclipsing financial reform
2. The economic and stock market recovery makes people lazy. This is especially true for lawmakers, who all of the sudden remembered how much money financial firms pour into their coffers.
3. Inter-regulatory turf battles are downright ugly, although who among us does not want to see Sheila Bair take down Tim Geithner?
As my mother likes to say, talk is cheap. There are three distinct trends that belie the President's "tough" stance on financial reform:
1. President Obama has made health care the number one priority, eclipsing financial reform
2. The economic and stock market recovery makes people lazy. This is especially true for lawmakers, who all of the sudden remembered how much money financial firms pour into their coffers.
3. Inter-regulatory turf battles are downright ugly, although who among us does not want to see Sheila Bair take down Tim Geithner?
September 14, 2009 8:39 AM 
Uncle Sam is wearing many hats these days, one year after the collapse of Lehman Brothers marked a seismic shift in the economic landscape.
As The New York Times writes today, government spending (which today includes stimulus programs and bailouts) accounts for a bigger share of the nation's economy — 26 percent — than at any time since World War II.
U.S. to Wall Street: Less Hands-On, More Eyes Over
(AP)
As The New York Times writes today, government spending (which today includes stimulus programs and bailouts) accounts for a bigger share of the nation's economy — 26 percent — than at any time since World War II.
Grammy winner Shakira on her music career, philanthropy and being sexy..
