The investment bank finished megabank earnings week by exceeding analysts’ expectations for profit and revenue.
A Goldman executive familiar with the matter said that the strange, violent market movements on Wednesday led to the most activity ever on some desks with Goldman’s clients.
The investment bank’s revenue grew 25% while its profits jumped 48% amidst markets finally starting to become more volatile (and dangerous).
Six years after the financial crisis, the American public still doesn’t trust the big banks. One plan: financial products that bankroll social services.
After criticism of its tame approach to the banks it regulates, the New York Fed says bad behavior on Wall Street “is socialized among new traders with the explanation that this is business as usual.”
Investment bankers will no longer be able to trade individual stock and bonds.
The Treasury Department is trying to stem the tide of deals that take U.S. companies overseas for tax purposes.
While investment banks are naming more women to senior roles, the hedge fund and private equity world executive ranks are still mostly male-dominated.
He also credited “my friend” Steve Rattner and “a bunch of others who came to Washington.”
Cantor’s new job at Moelis and the rise of the boutiques.
The bank is planning to hike salaries as much as 20%, according to a New York Post report. The raise follows an earlier move mandating that junior employees get Saturdays off.
The Federal Reserve and FDIC said today that plans submitted by large banks showing how they could be dismantled in the case of failure were “unrealistic.”
A new study by the Government Accountability Office said that large banks were able to borrow money for less during the financial crisis because investors thought the government would support them, but that the funding advantage “may have declined or reversed.”
The giant bank points to the huge scope of its business as a defense against a pay discrimination suit. Goldman lawyers said there was no evidence of a company-wide policy that disadvantaged women in pay and promotion
But besides a big one-off benefit, the quarter was similar to its peers, with declines in fixed income and equity trading revenues and an increase in wealth management and investment banking revenues.
But the bank’s core trading and sales business still shrank in revenue, fulfilling a warning made by the firm in May.
Citi barely ekes out a second-quarter profit of $181 million, after a $3.8 billion charge to help pay its settlement over mortgage-backed securities sold before the financial crisis.
The suit, originally filed in 2010, alleges systematic mistreatment and that women were underpaid and promoted less frequently. Several female former Goldman Sachs employees made similar claims.
Noto was the banker in charge of taking the company public in November and left Goldman Sachs in May. He will get a stock grant worth about $64 million with an option to buy $21 million more.
“Too much of the GDP over the last generation has gone to too few of the people,” Lloyd Blankfein said this morning in an interview with CBS.
The former Treasury Secretary doesn’t expect his book, Stress Test, to change the minds, but he hopes it can serve as a warning for the next financial crisis.
“Being boastful, indiscrete, or vulgar is not OK,” Deutsche Bank’s co-head of investment banking said in a video distributed to employees.
Speaking at the SALT 2014 Conference in Las Vegas, Appaloosa Management’s David Tepper served up more than a few opinions, platitudes, and general lessons on life.
Companies like Nike will benefit while sellers of candy and processed food like Hershey will face trouble, the investment bank says.
Anthony Noto, the Goldman Sachs veteran who took Twitter public, will leave the bank for Coatue, a technology focused hedge fund.
Backing LGBT rights is “not without a price,” Goldman CEO Lloyd Blankfein said two years ago.
Because the bank is in the midst of one of its biggest crises since 2008. It isn’t webcasting the event either, prompting one analyst to say that symbolically Citi looks like it is “running and hiding.”
Here’s a roundup of comments made by executives at some of the world’s largest trading firms and asset managers about Flash Boys.
Despite the best investment banking quarter since 2007, Goldman’s revenue and profits for the first quarter of this year fell 8% from a year ago.
The bank’s profits were up 56% from a year ago. It is the only bank so far this quarter to report higher fixed income, commodities, and currencies trading revenue.