The New York Times 'DealBook' column reports that Goldman CEO Lloyd Blankfein was asked at the Merrill Lynch Banking and Financial Services Conference Tuesday whether his firm was likely to take any significant asset write-downs in the fourth-quarter. His single word response - 'No' - added $7.2bn to Goldman's market cap later that day, and helped US stocks rally the most in 2 months.
Deutsche Bank analyst Michael Mayo has been talking to Fortune magazine, and mentioned in passing his views on Merrill Lynch.
Bloomberg reports that BlackRock founder Larry Fink said at an investor conference Tuesday that the credit losses sustained so far by a number of financial institutions is likely to get worse. Fink said that 'many institutions don't understand what the credit crunch is going to do to earnings and their balance sheet.....I don't know when it's over, but it's not over yet. The bottom has not been achieved'.
Reuters reports that UBS chairman Marcel Ospel, known as a 'formidable corporate survivor', may yet be forced to step down in the wake of the losses sustained by the bank recently under his watch.
Citi announced an ovehaul of the structure of its investment banking activities Tuesday, combining its Equity Capital Markets and Fixed Income Capital Markets units. The sales functions of equities, fixed income, currencies and commodities will also be merged. Some job losses are likely as a result of the move.
Financial News reports that US hedge fund Paulson & Co has turned a $500m punt on subprime into a profit of some $3bn.
It's been a few weeks now, but the smell that all is not right at Goldman continues to pervade the air. Although the Wall Street firm is having none of it.
Here's a lot more bad news for all you sadists out there who get off on the doom and gloom.
is a woman.
There's a lot of nonsense being talked about bonuses. There's been some noise in the media in the last few days about how UK bankers at US firms are likely to take a bigger bonus hit at year-end as, in addition to smaller payouts this time around, bankers who work at US firms will also lose a further 10% of their bonus when it's converted into sterling due to changes in the exchange rate since the beginning of the year. That's mostly rubbish.
Convicted UBS trader Kweku Adoboli asked a British appeals court to overturn his seven-year prison sentence for causing a $2.3bn loss through unauthorized trades.
When a 32-year-old dotcom multimillionaire known for his "goofball" approach to business is fired, the chances are he is not going to slip out the back door, hanging his head in shame.
Here's Fortune's current Top 10 and some other interesting rankings.