Shares in Merrill Lynch are expected to be in for a pounding Wednesday, as the firm announced a third-quarter loss of $2.24bn. A massive $7.9bn was written off for subprime-related mortgages and asset-backed securities in the period - the highest reported by any Wall Street firm.
Here are a few comments made by our readers on the former Goldman staffer who left the industry soon after failing to make partner at the firm.
Make no mistake, this downturn is different. Don't believe anyone in the markets who says that they have seen it all before. No-one alive today has witnessed this. What we are seeing is not just a market correction, it will result in a major reassessment of how companies raise capital, how banks make money and how individuals choose to invest any surplus funds. Some say, in fact, that this is even the end of capitalism as we know it.
The Times reports that Nouriel Roubini, a New York University professor, has said that regulators around the world may be forced to step in and close the markets in order to stem the panic from the expected imminent implosion of a number of hedge funds.
ABC News reports that the US Postal Service has posted a $100,000 reward after a number of letters were sent to offices of JPMorgan Chase which contained a powdery substance, and said: 'It's payback time. What you have just breathed in will kill you in 10 days'. The white power turned out to be harmless calcium. The letters are thought to have been sent by someone clearly miffed about the bank's recent acqusition of Washington Mutual.
Below's a note of the prepared statement that former Federal Reserve Chairman Alan Greenspan read into the record at Thursday's House Committee on Oversight and Reform hearings.
Bloomberg reports that Barney Frank, Chairman of the US House Financial Services Committee, has said that Wall Street bonus payouts should be stopped until firms can work out a way to reward people without encouraging excessive risk-taking.
As we run up to year-end, many firms are reviewing headcount and cutting to save on bonus pot costs. And, according to The Wall Street Journal, the latest firm getting ready to wield the job axe is Goldman Sachs. The newspaper quotes unnamed 'people familiar with the matter', who claim that the Wall Street firm is preparing to cut an additional 3,200 heads (around 10% of the total workforce).
Reuters reports that German authorities raided the Frankfurt offices of state development bank KfW Wednesday, as the probe into how come a $411m swap transaction was executed with Lehman Brothers after the former Wall Street firm had filed for bankrupcty last month.
The New York Times' 'Deal Journal' reports that new AIG CEO Edward Liddy has written to CNBC 'Mad Money' host Jim Cramer, seeking an apology for Cramer's recent suggestion that viewers should 'harass' AIG employees.
Ten senior Goldman Sachs executives, including CEO Lloyd Blankfein, were on New Year's Eve given stock pegged to earlier restricted awards worth tens of millions of dollars.
Subtract the Oracle of Omaha's charitable donations for this past year, and the total of the top 15 donors would be far less than last year's $2.6 billion.
Some of the bonus pot will be diverted elsewhere.