Merrill Deal Yields $6.2B in Capital

In economic sea change, 'we need the money,' one US Rep. says

(NEWSER) - The subprime collapse has US financial institutions in uncharted waters—asking for help from foreign investors and governments, the Wall Street Journal reports. Citigroup, Merrill Lynch, and Morgan Stanley all have recently sought bailouts, a dramatic switch from a tradition that saw US banks coming to the “rescue of nations and businesses across the world." More»

Recapitalization plans move forward as firm struggles to shake subprime debacle

(NEWSER) - Merrill Lynch has reached into the deep pockets of foreign investors once again, pulling in a $6.6-billion lifeline today from a consortium of investors that include Japan’s Mizuho Financial Group and the Kuwait Investment Authority, the Wall Street Journal reports. In December, Merrill received a $5-billion cash infusion from a fund run by the government of Singapore. More»

Extra pay could drop in half for some senior bond traders

(NEWSER) - Wall Street's multi-million-dollar bonuses are likely to take a hit for the first time in five years, with extra pay dropping in half for some senior sellers of mortgage-backed securities, according to the Wall Street Journal. Traders in stocks and commodities are expected to do better than those working with bonds and mortgages, reflecting the subprime crisis. More»

Matt Taibbi: It's 'ripping off virtually everyone'

(NEWSER) - Matt Taibbi gives Bank of America the " vampires squid " treatment today, savaging "the ultimate Too Big to Fail bank" as "a hypergluttonous ward of the state whose limitless criminal conspiracies we'll all be paying for until the end of time," in a lengthy Rolling Stone piece. "These guys are some of the very biggest assholes on Earth," systematically ripping off virtually everyone they do business with, Taibbi writes, "and on top of all that, they completely suck at banking." Among the many outrages he details:

• Bank of America, and subsidiaries Countrywide and Merrill Lynch, "pioneered ways to sell their toxic pools of mortgages to suckers."
• They conspired with other banks to rig municipal construction bids, "a mobster's crime, for which the accused used to do serious time," back when it was committed by "Eye-talians in gold chains instead of Ivy Leaguers in ties and Chanel glasses."
• The bank has been charged with scams specifically targeting the disabled, minorities, and the poor. "Seriously, who hasn't this bank conspired to defraud? Puppies? One-eyed Sri Lankans?"
• They often simply never pay required local fees—one Texas county alone estimates the bank owes it more than $100 million. "Think of that next time your county leaves a road unpaved."

Move seen as bet against US economy

(NEWSER) - Goldman Sachs is planning a major hiring spree in Singapore, even as it prepares to slash its headcount in the US to cut costs. The financial giant is so worried about criticism over the job shift that it has taken the unusual step of notifying lawmakers about its hiring plans, insiders tell Fox News . The 1,000 jobs the company is adding in Singapore will mostly be the same kind of high-paying investment banking positions that Goldman plans to cut in the US, a source says. More»