Friday, September 26, 2008
WACHOVIA + CITIBANK
We seem like they are talking on some merge- It is a rumor but seem plausible since both are in the shit house
Wachovia
Come on sweetie die for me - DIE FOR ME
!!!!!!!!!!!!!!
ONLY WINNERS HERE PERIOD!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!
ONLY WINNERS HERE PERIOD!!!!!!!!!!!!!!!!!!!!!!!
WACHOVIA TOAST
As I said before WACHOVIA is toast. It is down 25% pre market and has alot more to go.
WB see sub $5 very soon -
MARKETJEDI!!!!!!!!!!!!!!!!!
WB see sub $5 very soon -
MARKETJEDI!!!!!!!!!!!!!!!!!
Greed on Wallstreet-
This is why I vote for no bailout..
A backlash is building against Wall Street's bonus culture as the US struggles to accept the urgency of a taxpayer-funded $700bn (£380bn) bad debt bail-out while the biggest firms continue to siphon billions of dollars into bonus pools earmarked to reward their star "risk-takers".
Despite mounting criticism, regulatory filings show the world's largest investment banks, while fighting huge asset write-downs and plunging share prices, are still planning multibillion-dollar bonuses.
During last week's market turmoil, Morgan Stanley quietly announced that it had, for the nine months to August, accrued £10.7bn towards annual staff rewards. The funds will be distributed at the end of the year, mostly as "discretionary" bonuses.
Over the same period the bank's shares have halved in value so the £10.7bn bonus pool already equals about a third of Morgan Stanley's value on the stock exchange.
At Lehman Brothers, which collapsed last week, a $2.5bn bonus pool had been built up largely for Wall Street bankers. Meanwhile, the bank lost $6.6bn in 2008 before rushing for the bankruptcy courts.
The bonuses - again "discretionary" - are still expected to be paid. Lehman's boss Richard Fuld took home $40m last year in salary, bonuses and options.
Goldman Sachs last week revealed its nine-month salary and bonus pool had reached £11.4bn by August 29. Last year chairman Lloyd Blankfein received a pay package of $70.3m, including options.
Goldman and Morgan Stanley declined to comment on the size or appropriateness of bonuses but noted they were, respectively, 32% and 20% lower than the previous year. Both firms have so far weathered the credit crunch better than their peers.
Last week the pair revealed plans to relinquish their regulatory status as investment banks, which is expected to rein in risk-taking - and, by extension, staff pay and bonuses.
Competition for star performers, however, will continue. One banker, who asked not to be named, said: "Yes, there is turmoil in the market, but this is a talent business and you have to pay for talent."
Others say bonuses are out of hand and have corrupted banking. David Einhorn, an activist investor and short-seller who is believed to have made millions from Lehman's collapse, is among them. In April he told a hedge fund conference: "With no one watching, the managements of the investment banks did exactly what they were incentivised to do: maximise employee compensation. Investment banks pay out 50% of revenues as compensation. More leverage means more revenues, which means more compensation."
What sticks in the craw for many is the colossal rewards often enjoyed by fallen stars of investment banking, many of whom are acknowledged to have created or compounded a financial crisis for the firm they leave behind.
Stan O'Neal, chairman of Merrill Lynch, retired last year after announcing $8bn of losses with a final package valued at $161m. Chuck Prince left Citigroup last year with a $10m bonus and $28m in unvested stock after multibillion-dollar write-downs.
In Britain, Bob Diamond, Barclays president, who orchestrated the takeover of part of Lehman Brothers, is a rare exception. His basic salary last year was £250,000 but his total pay, including bonuses, topped £36m.
A backlash is building against Wall Street's bonus culture as the US struggles to accept the urgency of a taxpayer-funded $700bn (£380bn) bad debt bail-out while the biggest firms continue to siphon billions of dollars into bonus pools earmarked to reward their star "risk-takers".
Despite mounting criticism, regulatory filings show the world's largest investment banks, while fighting huge asset write-downs and plunging share prices, are still planning multibillion-dollar bonuses.
During last week's market turmoil, Morgan Stanley quietly announced that it had, for the nine months to August, accrued £10.7bn towards annual staff rewards. The funds will be distributed at the end of the year, mostly as "discretionary" bonuses.
Over the same period the bank's shares have halved in value so the £10.7bn bonus pool already equals about a third of Morgan Stanley's value on the stock exchange.
At Lehman Brothers, which collapsed last week, a $2.5bn bonus pool had been built up largely for Wall Street bankers. Meanwhile, the bank lost $6.6bn in 2008 before rushing for the bankruptcy courts.
The bonuses - again "discretionary" - are still expected to be paid. Lehman's boss Richard Fuld took home $40m last year in salary, bonuses and options.
Goldman Sachs last week revealed its nine-month salary and bonus pool had reached £11.4bn by August 29. Last year chairman Lloyd Blankfein received a pay package of $70.3m, including options.
Goldman and Morgan Stanley declined to comment on the size or appropriateness of bonuses but noted they were, respectively, 32% and 20% lower than the previous year. Both firms have so far weathered the credit crunch better than their peers.
Last week the pair revealed plans to relinquish their regulatory status as investment banks, which is expected to rein in risk-taking - and, by extension, staff pay and bonuses.
Competition for star performers, however, will continue. One banker, who asked not to be named, said: "Yes, there is turmoil in the market, but this is a talent business and you have to pay for talent."
Others say bonuses are out of hand and have corrupted banking. David Einhorn, an activist investor and short-seller who is believed to have made millions from Lehman's collapse, is among them. In April he told a hedge fund conference: "With no one watching, the managements of the investment banks did exactly what they were incentivised to do: maximise employee compensation. Investment banks pay out 50% of revenues as compensation. More leverage means more revenues, which means more compensation."
What sticks in the craw for many is the colossal rewards often enjoyed by fallen stars of investment banking, many of whom are acknowledged to have created or compounded a financial crisis for the firm they leave behind.
Stan O'Neal, chairman of Merrill Lynch, retired last year after announcing $8bn of losses with a final package valued at $161m. Chuck Prince left Citigroup last year with a $10m bonus and $28m in unvested stock after multibillion-dollar write-downs.
In Britain, Bob Diamond, Barclays president, who orchestrated the takeover of part of Lehman Brothers, is a rare exception. His basic salary last year was £250,000 but his total pay, including bonuses, topped £36m.
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