“Sorry” doesn’t help: Is anybody happy with Nasdaq’s plan to dole out $40 million in cash payments and future discounts to compensate market participants for losses suffered during the technical glitches that delayed trading in Facebook stock on May 18? The New York Stock Exchange cried foul, arguing that Nasdaq’s plan “is tantamount to Read More
Morgan Stanley is planning to ax 100 traders internationally in the weeks to come, according to the New York Post, which posits a cruel summer for investment bankers as firms grapple with lower trading revenue.
Meanwhile, The New York Times reported that Goldman Sachs let go about 50 bankers last week, Read More
Goldman Sachs let go 50 employees last week, including a number of managing directors, The New York Times reported this evening. That adds to the 3,000 employees the investment bank has sent packing in the last year, as the firm deals with an industry wide revenue crunch driven by the looming European debt crisis and Read More
Naive! Morgan Stanley CEO James Gorman has no sympathy for Facebook investors who expected to profit from a first-day spike in share prices. “People who thought they were buying this stock so they could get an enormous pop were both naive and ordered under the wrong pretenses,” Mr. Gorman said yesterday in an interview with CNBC. To which he might have added: “Didn’t they read Devitt’s research?” Mr. Gorman, of course, had this to say in January to investment bankers upset over Morgan Stanley pay cuts: “You’re naive, read the newspaper.“
Citi’s country-bred whistle-blower: Sherry Hunt started her career in the mortgage business as a 17-year-old mom processing home loans in Alaska. By the age of 55, Ms. Hunt was supervising 65 loan officers in Citigroup’s mortgage unit. The year was 2004, and business was booming. Citi was buying loans from outside lenders that had been secured with phony documents, and Ms. Hunt’s reports highlighting defective loans were being buried. The housing bubble popped, of course, and Citi took $45 billion in Federal bailouts. That didn’t stop the bank from processing defective loans. In 2011, a supervisor told Ms. Hunt and a colleague that if the number of loans being classified as defective didn’t fall, it would be “your asses on the line.” The country girl turned banking executive didn’t back down. In the spirit of all great Americans, she went to court. Bob Ivry goes there too, profiling Ms. Hunt, who would ultimately win $31 million in a whistle-blower suit against the banking giant, in July’s Bloomberg Markets magazine.
Henry Blodget, BusinessInsider aggregator-in-chief, disgraced Merrill Lynch analyst and the pundit who spent the weeks leading up to the Facebook IPO hammering on what were at face incongruous themes—overpriced Facebook stock was “muppet-bait” and Mark Zuckerberg was the greatest—is out with a new Facebook trope that’s Internet fantastic:
The ongoing controversy Read More
Prosecutors tried to stitch together separate strands in the insider-trading case against former McKinsey & Co. CEO Rajat Gupta, Facebook’s market makers may have lost $100 million due to Nasdaq glitches, and more in today’s Wall Street roundup.
U.S. v. Gupta: It was wiretap day at U.S. vs. Gupta, as prosecutors played FBI recordings of Read More
While Facebook dominated the news, Warren Buffett’s secretive investment banker slipped into a New York courthouse. That and more in today’s Wall Street roundup.
Falling out? NYSE Euronext approached Facebook yesterday about listing the company’s stock on the New York Stock Exchange, a move which would be a bigger blow to Nasdaq than any punishment regulators dole out for bungling the first day in Facebook trading.
Facebook and its underwriters face IPO backlash, the SEC indicates it will target VaR, and more in today’s Wall Street roundup.
Facebook flap: Research teams at Morgan Stanley and other Facebook underwriters cut earnings projections after updated regulatory filings on May 9 showed Zuck & Co. struggling to make money on mobile—and those Read More
In the days before the Facebook hysteria had fully bloomed, we sought comment from investors who planned to buy the stock. Did they know half of Twitter was bashing Facebook as massively overpriced? Were they chasing the next Google? Did they just like Zuck?
Yesterday we finally caught up with a Facebook investor. Alper Aydinoglu Read More