Tuesday's Headlines: Goldman Sachs cuts compensation pool for employees
Goldman Sachs set aside less compensation for its employees in the first six months of 2011 than it did in the same period a year ago, Bloomberg and other media report.
The Wall Street firm announced Goldman set aside $8.44 billion for its compensation pool, 9 percent less than a year ago, after reporting second quarter earnings of $1.85 per share, 42 cents below analyst expectations.
"The expense, which includes salaries, bonuses and benefits, was enough to provide each of the firm's 35,500 employees with $237,662 for the six-month period," Bloomberg writes. "A year earlier, the firm set aside $9.3 billion for compensation, excluding a $600 million one-time U.K. tax on bonuses, or $272,581 for each of the 34,100 staff at the time."
Bank of America posts $8.8 billion loss in second quarter, worst ever. [Reuters]
Citigroup's exposure to troubled European economies higher than peers. [Bloomberg]
Goldman Sachs' Blankfein's job not threatened by regulation, but by financial performance. [New York Times]
Mortgage lenders continue dubious "robo-signing" practice despite promises to stop. [Reuters]
Morgan Stanley Brazil boss, Daniel Goldberg, to open his own hedge fund. [Business Insider]
Canadian Imperial Bank of Commerce to buy American Century Investments stake from JP Morgan. [Bloomberg]
More investors drop American Funds on disappointing returns. [Investment News]
Large banks making money now, but new wave of losses seen ahead. [New York Times]
Neuberger Berman ordered to pay $4 million to clients who bought notes backed by Lehman Brothers notes. [Investment News]
Vietnam's BIDV Securities to become second brokerage to list shares on local bourse. [MarketWatch]
Regulators sue Royal Bank of Scotland over risky bonds sold to credit union. [Wall Street Journal]
US government's soft touch with bankers won't help the economy, Krugman says. [New York Times]