Investment banking

Goldman Sachs's Great Muppet Caper Comes to an End, For Now

After Greg Smith quit Goldman Sachs in the most public fashion possible -- slamming his employer in the pages of The New York Times -- the firm launched an investigation into his most explosive charge: that employees referred to clients as "muppets" in internal emails.

JPMorgan Lost $6 Billion? Buy! Buy! Buy!

In May, JP Morgan Chase spooked investors with news that it had racked up $2 billion worth of losses on derivatives trades. Then last week we learned that the loses were much worse -- and the markets sighed with relief.

Goldman Sachs Details Revenue in Bid to Deflect Criticism

Goldman Sachs Group (GS) will publish details on how it earns its revenue as it works to deflect criticism that it puts its own profits ahead of client interests. Goldman is releasing the 63-page report today, The Wall Street Journal said. The report will break down its revenue to show how much comes from its own trading and investing.

The Top 10 Growth Industries for 2011

After the long downturn, the coming year will present an opportunity for many industries to rejuvenate themselves. Independent researcher IBISWorld sorted through the data on 711 U.S.-based industries to give its predictions of the 10 top performing industries for 2011.

Goldman Sachs Considering Sale of Mortgage-Service Unit

Goldman Sachs Group (GS) is considering a sale of Litton Loan, its mortgage-service unit. Goldman has decided that the unit does not fit into its business model of providing investment banking and trading services to corporations and investors, The Financial Times reported without naming its sources.

SEC in Talks to Settle Mortgage-Bond Probe

Regulators in talks with several major banks to settle a number of investigations of their sales of mortgage-bonds, The Wall Street Journal reported. The probe focused on the sale of pools of mortgages and other loans as collateralized debt obligations, or CDOs, to investors, The Wall Street Journal reported without naming its sources. The investigation involved banks including Citigroup Inc. (C), JPMorgan Chase (JPM) and Morgan Stanley (MS).

Goldman Sachs Promotes Hundreds of Employees

Goldman Sachs Group (GS) promoted a record number of employees to the position of managing director, giving them more money and prestige as the bank rebounds from the financial crisis. The bank raised 321 people to the status of MD, up from 272 last year, Bloomberg News reported. Earlier this week, the company selected 110 people to become partners, giving them access to a special compensation pool.

Investment Banks Exploit Volcker Rule Loophole

Investment banks are working around new regulations restricting them from putting their own capital into short-term investments: The Wall Street institutions are sidestepping the Volcker Rule by making direct purchases of securities, companies and properties, which are considered longer-term investments.

Bank of America Reportedly Planning Layoffs

Bank of America (BAC) is laying off as many as 400 people as revenue from trading and advising clients falls. Bank of America, the country%u2019s largest bank by assets, is laying off people ranging from junior analysts to managing directors, Bloomberg News said without naming its sources.

Barclays Appoints Robert Diamond as CEO

British bank Barclays PLC (BSC) appointed Robert Diamond Jr. as CEO, according to The Wall Street Journal. Diamond is currently the head of Barclay%u2019s investment banking business. He will replace John Varley, who will step down on March 31, The Wall Street Journal said.

Axa Slashed Goldman Stake in the Second Quarter

Axa (AXAHY), the largest investor in Goldman Sachs (GS), cut its stake by more than 50% in the second quarter as the bank dealt with civil fraud charges and flagging business. Axa, a French insurance and wealth management company, reduced its stake in Goldman from about 5% at the start of April to 2.1% at the end of June, the Financial Times reported. That%u2019s a sell-off of more than 16 million shares.

Is Dodd-Frank Reshaping Wall Street Already?

Some top financial institutions are moving surprisingly quickly to reshape the way they operate in the wake of the financial regulation reform law. Question is: Did the legislation force their hands, or is this just a good time for big banks to rethink their business?

A Grab Bag of Consumer Protections

Banks aren't too big to fail, taxpayers shouldn't have to shoulder bad decisions by corporate America, and consumers need protections from investment houses looking to boost their bottom lines, according to a U.S. Treasury official.

Obama Signs Financial Reform Legislation Into Law

After more than a year of wrangling by Congress to craft legislation, President Obama signed the Wall Street and Consumer Protection Act into law Wednesday at ceremony in Washington. The new regulations are viewed by many analysts as the most sweeping reforms to hit the financial industry in more than half a century.

Morgan Stanley Shares Jump on Solid Earnings Report

Morgan Stanley's second-quarter earnings easily topped Wall Street's expectations as the investment bank swung to a profit from a year-ago loss on sharply higher revenue. Adjusted earnings were 80 cents per share, versus the 46-cent estimate.