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Goldman Sachs made $100m on 131 days of 2009

March 3rd, 2010

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Goldman Sachs made at least $100 million on 131 days in 2009 – equivalent to once every two days.

The figure was revealed by the Securities and Exchange Commission, in a filing that showed the bank made the profits by taking larger risks than it did in 2008.

Its daily ‘value at risk’ figure – the amount Goldman Sachs estimated it could lose in a day’s trading – stood at $218 million, up from $180 million the previous year.

However, the bank only lost money on 19 occasions in 2009, with the figure never exceeding more than $100 million.

David Hendler, an analyst with CreditSights, told the Financial Times that the figures were not surprising.

“It’s impressive, but it’s not unexpected,” he said. “They were one of the few games in town in 2009.”

Last month, Goldman Sachs announced that its chief executive Lloyd Blankfein is to receive a $9 million bonus for his work last year – a lower-than-expected amount and much lower than the $67.9 million he received in 2007.

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Tags: 100 Million, Bonus, Chief Executive, Financial Times, Games, Goldman Sachs, Hendler, Lloyd Blankfein, Lost Money, Occasions, Previous Year, Profits, Risk Figure, S Trading, Securities And Exchange, Securities And Exchange Commission, Value At Risk

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Raj Rajaratnam made at least $36 million from insider trading

January 7th, 2010

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Raj Rajaratnam, the founder of Galleon Group, made “at least” $36 million in profits from his insider trading ring, US prosecutors have claimed.

This is double the $17 million amount initially alleged when Mr Rajaratnam was first arrested in October last year.

He is said to have made the money through stock trades that were aided by inside information by hedge fund and company executives.

The claim was made in a court filing opposing an application made by Mr Rajaratnam for a reduction in his $100 million bail, reports Bloomberg.

A total of 21 people have been arrested in connection with two overlapping insider trading rings, with six pleading guilty so far.

Mr Rajaratnam is due to appear in court on Friday (January 8th 2010) in relation to the bail plea.

Last month, Mr Rajaratnam and co-defendant Danielle Chiesi both entered not guilty pleas on the charges against them.

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Tags: 100 Million, Bail Plea, Bloomberg, Company Executives, Danielle, Defendant, Galleon, Guilty Pleas, Hedge Fund, Insider Trading, Money, Mr Rajaratnam, Profits, Prosecutors, Raj Rajaratnam, Stock Trades

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This Day in Wall Street History 1987: Boesky is sentenced

December 18th, 2009

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The hammer finally came down on Ivan Boesky on this day in 1987, as Federal Judge Morris E. Lasker sentenced the once-mighty arbitrageur to a three-year prison term.

Boesky, who had been one of the wealthiest and most-powerful players on Wall Street, was found guilty of insider trading, as well as a series of sizable but shady transactions — crimes that constituted what The Wall Street Journal deemed the “largest scandal in Wall Street’s history.”

While Lasker chided Boesky for committing offenses “of the highest seriousness,” the arbitrageur cushioned his fall by agreeing to implicate other firms and figures suspected of securities crimes.

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Tags: 100 Million, Arbitrageur, Crime Fighter, District Attorney, E Lasker, Eyebrows, Federal Judge, High Profile, Insider Trading, Ivan Boesky, Mayor Of New York, Mayor Of New York City, Political Ambitions, Profile Wall, Rudolph Giuliani, Scandals, Seriousness, Source History, Wall Street History, Wall Street Journal

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InvestmentNews — LPL Sues Pac Life Over Purchase of Broker Dealers

November 30th, 2009

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Indemnification dispute with the insurer won’t affect their businesses, firm insists
By Bruce Kelly

At the same time that LPL Holdings Inc. and the three broker-dealers it bought from Pacific Life Insurance Co. were filing suit against the insurer, LPL was reaching out to its advisers to reassure them that the dispute wouldn’t affect their businesses.

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Tags: 100 Million, Arbitration, Bill Dwyer, Breach Of Contract, Broker Dealer, Broker Dealers, Bruce Kelly, Contractual Obligations, Indemnification, Insurer, Legal Matter, Life Brokers, Life Insurance Co, Lpl Financial, Pacific Life, Pacific Life Insurance, Pacific Life Insurance Co, Sales And Marketing, Securities License, State Supreme Court

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Borsellino wins $11M in suit vs. former NYSE Prez Putnam

November 5th, 2009

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(Crain’s) — A Chicago jury has sided with a former trader on the Chicago Mercantile Exchange floor who sued former New York Stock Exchange President Gerald Putnam in a nine-year-old dispute over a business partnership.

The jury awarded Lewis Borsellino $11 million.

“I’m glad the world knows the former head of the New York Stock Exchange is a liar and a cheat,” Mr.

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Tags: 100 Million, Arbitrage, Archipelago Holdings Inc, Business Partnership, Chicago Mercantile Exchange, Chicago Trading, Crain, Daley Center, Exchange Floor, Lewis Borsellino, Liar, Mr And Mrs, New York Stock, New York Stock Exchange, Nyse, President Gerald, Punitive Damages, Putnam, Stuart Townsend, York Stock Exchange

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Bank of America and Citigroup execs paid average $18m in 2008

October 26th, 2009

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Top executives at Bank of America and Citigroup earned an average salary of $18.2 million in 2008, according to records released by US pay czar Kenneth Feinberg.

Despite receiving around $90 billion in government bailouts, the two banks paid out almost double the average amount paid to managers at the other five bailed-out US companies.

At Bank of America, 13 executives shared almost $230 million between them, an average pay packet of $17.5 million.

Citigroup paid out $390 million to 21 top employees, $18.6 million each.

The records do not include managers who have left the two banks since 2008.

Mr Feinberg has already told the companies to cut their wage bills by 50 per cent in 2009, resulting in Citigroup chief executive Vikram Pandit volunteering to accept only one dollar in pay for this year.

In 2008, Mr Pandit took home almost $11 million.

Earlier this month, Citigroup reported third-quarter losses of more than $100 million, while Bank of America announced a net loss of $1 billion.

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Tags: 1 Billion, 100 Million, 18m, 5 Million, 50 Cent, 6 Million, Average Salary, Bank America, Bank Of America, Banks, Chief Executive, Citigroup, Czar, Dollar, Execs, Kenneth Feinberg, Pay Packet, Quarter Losses, Top Executives, Wage Bills

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JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

October 11th, 2009

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JPMorgan Chase, Credit Suisse and Morgan Stanley have agreed to pay out $100 million over claims they were involved in a Ponzi scheme at the now bankrupt mortgage lender American Business Financial Services (ABFS).

JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

The lawsuit alleged that ABFS had become insolvent in 2000, but created the impression it was still financially viable with the assistance of the Wall Street firms.

Bear Stearns, which is now part of JPMorgan Chase, was also named in the lawsuit.

George Miller, the ABFS’s bankruptcy trustee, was seeking at least $750 million from the banks on behalf of more than 20,000 people who lost their life savings when ABFS went bankrupt.

JPMorgan Chase paid $55 million on behalf of it and Bear Stearns to settle the case, while Credit Suisse paid out $37.5 million and Morgan Stanley $7.5 million.

The companies denied any wrongdoing.

Last month, changes to the Security and Exchange Commission’s investigations policies into Ponzi schemes were recommended after it missed Bernard Madoff’s $50 billion worldwide fraud for years.

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Tags: 100 Million, 5 Million, Abfs, American Business Financial Services, Bankruptcy Trustee, Bear Stearns, Bernard Madoff, Business Financial Services, Chase Credit, Credit Suisse, George Miller, Jpmorgan Chase, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ponzi Schemes, Security And Exchange Commission, Wall Street, Wall Street Firms, Wrongdoing

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Citigroup chief agrees $100m bonus was excessive

September 18th, 2009

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The chief executive of banking giant Citigroup has admitted that the $100 million bonus paid to one of its traders was too much for one year’s work, particularly given the overall performance of the company.

Andrew Hall, who was born in the UK, helped to generate substantial returns for the finance organisation as head of its Phibro energy trading division, but Vikram Pandit told an audience in New York this week the payout was excessive in light of Citi’s problems.

Last year, the bank was forced to turn to the US government for $45 billion of aid in order to survive after being hit hard by the global financial crisis.

The state does have powers to reduce the amount of money paid in compensation deals but it may not be able to take action in this case given that Mr Hall’s contract was signed ahead of the February 11th cut-off date.

Earlier this month, it was announced that Mr Pandit has ceased using his corporate jet for private use.

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Tags: 100 Million, Ahead, Amount Of Money, Andrew Hall, Audience, Bonus, Chief Executive, Citi, Citigroup, Corporate Jet, Energy Trading, Finance, Giant, Global Financial Crisis, Pandit, Phibro Energy, Substantial Returns, Us Government

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Price war takes toll on Nasdaq’s profit, market share

August 7th, 2009

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Nasdaq OMX posted a 31% drop in profit for the second quarter and said its share of equity trading in the U.S. declined by a third. The results were partially because of a price war with BATS Exchange, Direct Edge and other rivals. The trans-Atlantic exchange reported $69 million in quarterly profit compared with $100 million during the same period last year.

more at

http://www.ft.com/cms/s/0/5aca07fe-828b-11de-8cc2-00144feabdc0.html

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Tags: 100 Million, Bats, Cms, Equity Trading, Market Share, Nasdaq Market, Omx, Price War, Quarterly Profit, Rivals, Second Quarter, Share Trading, Trans Atlantic

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Citi’s $100 Million Bonus Poses Problem for Pay Czar

August 2nd, 2009

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A top Citigroup Inc. trader is pressing the financial giant to honor a 2009 pay package that could total $100 million, setting the stage for a potential showdown between Citi and the government’s new pay czar.

The trader, Andrew J. Hall, heads Citigroup’s energy-trading unit, Phibro LLC — a secretive operation, run from the site of a former Connecticut dairy farm, that occasionally accounts for a disproportionate chunk of Citigroup income.

Mr.

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