Bloomberg reports that staff at Goldman Sachs will probably have to tighten their belts this Christmas like the rest of us.
The news agency quotes from a statement provided by Gregory Palm, Goldman's General Counsel, to US regulator The Securities and Exchange Commission, which said, in part: 'Employee compensation will be dramatically affected by changes in the overall economic and financial environment and our performance for the full year'.
CNBC reports that Citi shares fell 2% to their lowest levels for 13 years Thursday, despite a general rally seen in US stocks. Oppenheimer analyst Meredith Whitney has said that she doesn't 'see Citi making any money over the next couple of years'. But firm CEO Vikram Pandit and some of his cohorts clearly see value in Citi's shares, as they have been buying stock. Pandit has recently purchased 750,000 common stock and 100,000 preference shares, spending around $8.4m in the process.
Reuters reports that Societe Generale has dampened down persistent market rumours that it is sitting on structured product losses. The bank said in a statement: 'Societe Generale won't comment on this new rumour. If we had something to say, we would have said it. In addition, Societe Generale updated the marketplace last week on its October performance, highlighting a positive revenue of its CIB (corporate & investment bank) activities, while some competitors have recognised losses. This highlights Societe Generale's capacity to outperform peers even in difficult market conditions'.
Bloomberg reports that Credit Agricole posted a 62% fall in third-quarter profits Thursday. Net income came in at $458m, after writedowns related to US bond insurers and the bankruptcy of Lehman Brothers.
Reuters reports that S&P has said in that the current economic and financial crisis is likely to push investment bank revenues down by between 50 - 60% from 2007 levels.
Financial News reports that hedge fund GLG Partners has advised its 350-person staff to expect lay-offs as under under management have fallen by a third.
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