CNBC reports that pressure is building on Lehman Brothers CEO Dick Fuld to sell his firm, or, in the light of difficult trading conditions, lay-off perhaps as many as 5,200 of its employees (around 20% of the firm's 26,189 current workforce).
How ironic that, not too long ago, it was considered somewhat risky to make the career switch from investment banking into the hedge fund industry. Now, of course (because of the credit crunch and the capital adequacy problems being experienced by some of the major firms), the very opposite appears to be true.
Here's what the smart money has been saying about Goldman and Morgan Stanley's second-quarter earnings, which were both posted this week.
Which 'celebrity' works / worked where ?
Here's an edited version of Morgan Stanley's second-quarter earnings press release.
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.