FT Alphaville reports on the uproar in the US this week when Goldman's lead economist, Jan Hatzius, put out what has been described as a 'fear' note, sugessting that the end of the world was nigh (among other things he is said to have predicted a 15% slump in US house prices).
Citi executive Vikram Pandit may well be the most likely insider to ascend to the vacant company CEO position, but, according to The Wall Street Journal, the hedge fund he founded (Old Lane Partners, the one acquired by Citi for $800m earlier this year) isn't doing as well. The newspaper quotes Hedge Fund Research, which says that Old Lane is now showing gains of around 3% this year, which compares badly to the 10% average gain seen by hedgies so far in 2007.
Reuters reports that US bank stocks fell Tuesday after continuing concerns about how subprime lending-related losses would impact fourth-quarter earnings. Shares in Goldman, Lehman, Merrill and Morgan Stanley all fell after JPMorgan Chase cut its earnings estimate for each firm. Citi has also cut its fourth-quarter estimates for Goldman, Lehman and Merrill (pointing to challeges in fixed income), although the company has keep its forecast for Morgan Stanley unchanged.
Here's the latest post from our very own (and very popular) 'Highly Placed Professional'.
The Financial Times reports that Deutsche Bank CEO Josef Ackermann is said to have been approached about the possibility of taking the reins over at Citi, but confirmed that he was not available. The difficulty of filling the top job at Citi mirrors the problems the FA is having finding someone for the also vacant England football team manager position - a well paid job, working for a decent brand, which no-one wants because you're on a hiding-to-nothing (now Merrill CEO John Thain is also thought to have spurned Citi's advances, as is US Treasury Secretary (and former Goldman CEO) Hank Paulson).
Reuters reports that a former financial analyst at Morgan Stanley and her husband, who worked in an ING hedge fund unit, both got banged up for 18 months Tuesday, for insider-trading.
Thomson Financial reports that, according to a recent article in Dutch daily newspaper Het Financieele Dagblad, bankers at ABN AMRO are worried that they may not get paid out some $1.11bn in 'loyalty' bonuses that apparently form part of a retention package agreed awhile back. The bankers are said to want the bonuses, which become due 3 years after the scheme was put in place, paid out as soon as possible given that most are moving to Royal Bank of Scotland (RBS) following the recent ABN takeover led by the Scottish firm.
The Financial Times reports that five hedge fund managers at London-based Marble Bar Asset Management are to pick up at least $400m after agreeing to sell up their firm to Swiss bank EFG International.
Over 3,000 staff voted in our Martin Ward Anderson-sponsored 2007 Bonus Anticipation Poll. Here are the headline results (individual firm figures are at the foot of the article):
Lehman Brothers Holdings is seeking court permission to question the JPMorgan trader known as the 'London Whale' in connection with its $8.6bn lawsuit accusing the largest U.S. bank of driving it into bankruptcy.
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The mystery over South African sprinter Oscar Pistorius's role in the killing of the model Reeva Steenkamp has deepened amid a series of claims and counter-claims about what happened at his home in Pretoria last week.