Bonuses May Be Reduced After Financial Reform

Bloomberg reports that President Obama spoke on the subject of financial reform Wednesday.

He said: 'It may be boring, it may reduce bonuses for some of the players on Wall Street, but we'll end up having a safer, more secure financial system'.

In the meantime, Reuters reports that Bank of America has appointed board member Charles Holliday to become the bank's new Chairman. Holliday, 62, is a former CEO of chemical group Du Pont, and joined BofA's board last year.

The Daily Telegraph reports that shares in Gartmore rose 15% Wednesday, on the news that fund manager Guillaume Rambourg, suspended a few weeks back for breaching the firm's internal rules by allegedly steering business to favoured brokers, has returned to work. An internal probe found that there was no suggestion of dishonesty, and that no client had incurred losses as a result of the affair.

And The Guardian reports that UK securities regulator The Financial Services Authority has fined Commerzbank $905,000 for reporting failures linked to 1.3m transactions which took place between 2007 and 2009.

Dow Jones Newswires reports that a US federal judge has told former Credit Suisse broker Eric Butler, who was convicted last year of involvement in an alleged auction-rate securities fraud, that he must go to jail pending his appeal. He is currently out on bail. The banker hopes that the district judge hearing his case will reverse the decision.

And Bloomberg reports that Lazard has posted its second-straight quarterly loss on compensation and restructuring charges. The firm posted a first-quarter loss of $33.5m. CFO Michael Castellano said: ' Over the last 2 years, in addition to aggressively hiring senior bankers, we've also right-sized the firm in both asset management and the financial-advisory business, to make sure we have the right skill sets for the new world'.

Finally, The Financial Times reports that 42-year-old Evan Dooley, a former wheat broker over at MF Global, was charged Wednesday with 16 counts of wire fraud. The broker is accused of trading over his limits, causing his firm to sustain some $141.5m in losses in 2008.

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