There is down-sizing; there is trimming-the-fat; and then there is UBS. The once-giant Swiss Bank just announced it will cut up to 10,000 jobs. This comes on top of the 3,500 from last year – which makes a rather dramatic weight-loss strategy for the 63,500 employee firm. As the FT reports, they will not happen all at once (so just after the election then?) but will lead to the closure [...]
Citigroup bank analyst Keith Horowitz and his team have cut their price targets and second quarter earnings estimates for Wall Street’s biggest banks.
This downgrade stems from a downturn they have seen in fixed-income trading, which was strong in the first quarter but reversed in the second quarter.
n light of that, Goldman Sachs Q2 EPS estimates were cut from $2.70 to $0.80 including 14 cents of debit valuation adjustment (DVA) gains.
Morgan Stanley is cut from [...]
Call it comp day, compensation communication, or this year, D-Day.
Goldman Sachs employees came to work today and learned how much they’ll be paid above their base salary for 2011, and most of them are not jumping for joy, said people familiar with the matter
European Pressphoto Agency
Some Goldman bankers and traders learned they’re taking home a big goose-egg. Some partners’ total pay was slashed by approximately half, while some employees [...]
by Sam Ro
It’s no secret that business has slowed on Wall Street. Last Friday, analysts fromWells Fargo, Berstein, Ticonderoga, andMeredith Whitney all slashed their estimates for the big investment banks.
And when business slows, so does pay.
And now were starting to get a sense of how banker pay will be affected. The Wall Street Journal‘s Liz Rappaport and Colin Barr report:
At Goldman Sachs Group Inc., many of the roughly 400 partners can expect to see their [...]
by Reggie Middleton
Don’t belive me, let’s look at history…
So, as I was saying…
Check this out, from “On Morgan Stanley’s Latest Quarterly Earnings – More Than Meets the Eye???” Monday, 24 May 2010:
Those who don’t subscribe should reference my warnings of the concentration and reliance on FICC revenues (foreign exchange, currencies, and fixed income trading). Morgan Stanley’s exposure to this as well as what I [...]
Citigroup is out with a big, negative call on major banks today.
Of particular note, analyst Keith Horowitz is gutting his estimates for Goldman Sachs and Morgan Stanley.
For Goldman, Q2 EPS has been cut from $3.75 to just $2.00 (current consensus stands at $3.56) and for Morgan Stanley, they’re cutting their estimate from $.59 to $.43. Current consensus stands at $0.56.
What’s the culprit behind these ugly results? Basically, the [...]
With the Greek crisis approaching surreal proportions, now that everything from this point on is a carbon copy of events from May 2010 onward, and the only question is whether Europe will succeed in kicking the can down the road for another year (not with the 2 Year at 28% it won’t and the 30 Year priced at 40 cents on the dollar) all one [...]
(Reuters) – Fixed income trading revenue is falling, and some of the best minds on Wall Street disagree on whether this is temporary weakness or slow death.
Trading volumes are down significantly from post-crisis heights. The market for structured credit, once a big source of revenue growth for Wall Street, has been almost non-existent since the subprime crisis erupted. Although trading in more basic products, [...]
For those who may not have the patience of reading the whole thing, we provide an abridged summary…
The most profitable product for banks currently are derivatives (and CDS in particular)
As a result, the derivatives trading cabal wants to contain its members to as few as possible, and to preserve the status quo indefinitely
Margins on CDS can be anything as there is no central clearing or pricing [...]