Defying the odds once again, and beating most analyst expectations, Goldman Sachs brought home the bacon in the second-quarter.
Shares in both Dresdner Bank and Commerzbank rose Friday, following unconfirmed reports that the two banks are in talks (again) about a possible merger. The two firms tried to tie the knot in 2000, but the deal fell apart then as officials were said not to have been able to agree on the financials and the allocation of executive roles.
All eyes are now beginning to focus on JPMorgan Chase. Relatively unscathed by the credit crunch, concerns are now growing that the firm's consumer finance business could be a future drag on earnings as the US economy sags, and that the acquisition of Bear Stearns might not create the value first thought.
As pugnacious as Lehman Brothers CEO Dick Fuld is, (and as popular with employees and as respected by investors), the reality is that the big man probably has two quarters at most to steady the ship. And any more nasty surprises, and he'll have to fall on his sword.
John Thain, CEO over at Merrill Lynch, was the highest-paid CEO at an S&P 500 company last year. That's according to new research put out by Associated Press, based on the value of salary, benefits, bonuses, above-market interest on pay set aside for later, and on company estimates for the value of stock options and stock awards on the day they were granted last year.
The Mail-on-Sunday reports that Goldman Sachs is expected to lay-off up to 3,200 staff after announcing its second-quarter earnings Tuesday.
Bloomberg reports that Lehman CEO Dick Fuld said in a memo to employees last week that 'our credibility has eroded. The current market environment is forcing us to take a number of measures to regain the confidence of all our constituents'.
We asked our readers whether they thought Lehman Brothers CEO Dick Fuld should fall on his sword in view of the difficulties currently being experienced by the firm. Your response was overwhelming, the result pretty decisive.
CNBC reports that Lehman Brothers CEO Dick Fuld is said to be 'listening to offers' for his investment bank, as he continues to explore all avenues to turn around the firm.
Lehman Brothers announced that it had replaced two senior executives Thursday. Chief Financial Officer Erin Callan returns to the firm's investment banking division and is replaced by Ian Lowitt, Lehman's co-Chief Admin Officer. Joe Gregory, the firm's Chief Operating Officer, will stay on in an unspecified role, and is being replaced by Bart McDade, who headed up Lehman's global equities function.