Bank Woes Push Dow Down 196

Dow sees triple-digit rise

(NEWSER) - Is the panic over on Wall Street? The Dow shot up around 131 points, and the S&P and Nasdaq were up 13.5 and 26.2 as of 9:39am EST. Part of the gain came from Google’s blockbuster acquisition of Motorola , which sent the latter’s stock up 60%, according to the Wall Street Journal . Traders were also watching two other major deals—Time Warner is reportedly close to an agreement to buy Insight Communications, and Bank of America sold its credit card portfolio to Toronto-Dominion Bank. More»

Feinberg to review compensation for top 25 executives

(NEWSER) - The "pay czar" will review salaries and bonuses of executives at financial firms that have received government help. Kenneth Feinberg will examine the compensation of the top 25 executives at Goldman Sachs, Citigroup, JPMorgan Chase, and 417 other firms that took TARP money. If he finds evidence of risky or improper compensation, he has the power to intervene—but not to "claw back" any payments already made. More»

Haul breaks mark set in pre-bust 2007

(NEWSER) - Employees at the major US banks were paid about $145 billion in 2009—a total that, despite the financial crisis and public outcry over compensation in the industry—breaks a record set in pre-bust 2007. A Wall Street Journal analysis finds that 2009 revenue will be $450 billion, up 25% from ’07; pay should be about 32% of revenue, down from 40% in ’08. More»

Dallas Fed chief reiterates commitment to low interest rates

(NEWSER) - Stocks retreated from an earlier rally but closed with solid gains after the Dallas Fed president reaffirmed the central bank's commitment to keeping interest rates low. Meanwhile, home-builder Toll Brothers announced a surge in contracts for the third quarter, the Wall Street Journal reports.

• The Dow gained 44 points to close at 10,291.
• The Nasdaq added 16 points to settle at 2,167.
• The S&P 500 rose 6 points to 1,099.

175 top earners will see pay cuts averaging 50%

(NEWSER) - President Obama’s pay czar will cut compensation for the 25 highest-paid employees at seven companies that took large amounts of government aid. The 175 executives will face salary reductions of 90%, but with other compensation elements added in, the total reductions average 50%. Ken Feinberg also will require the seven bailed-out firms to change the way they do business in an effort to discourage excessive short-term risk-taking. More»