Stories related to: Wall Street

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 Journa l. Traders in stocks and commodities are expected to do better than those working with bonds and mortgages, reflecting the subprime crisis. More »

Citigroup CEO and Chairman Charles Prince resigned today, clearing the way for former US Treasury Secretary Robert Rubin to be named chairman, the Wall Street Journal reports. Sir Win Bischoff was named interim chief executive. Citigroup also plans to report $8-$11 billion in mortgage-related writedowns, on top of the $2.2 billion in third-quarter losses that helped sink Prince's leadership. More »

Growing pressure on Citigroup Inc. is prompting CEO Charles Prince to end his four-year rein this weekend. Bleak third-quarter earnings and an SEC probe of Citigroup's accounts have amped up existing frustration at the financial services company. Prince has "stepped up and done the right thing without forcing the board to act," once source told the Wall Street Journal . More »

Lauren Weisberger's thinly veiled tell-all, The Devil Wears Prada , raked Vogue editor-in-chief Anna Wintour over the coals. Wall Street speared Ivan Boesky. Survive an embittered underling's shenanigans with these tips from Portfolio : Request an advance copy from the author, not the publisher. Get together with your legal and PR teams. Make a joke out of it. More »

Merrill Lynch CEO Stan O’Neal has decided to step down, the Wall Street Journal reports, after days of speculation about his likely ouster following $8 billion in writedowns for the bank, and reports that he had discussed a merger with Wachovia without board authorization. The list of potential successors is headed by Laurence Fink, the chief executive of money manager BlackRock. More »

After last week’s dismal report card for its investment arm, Bank of America replaced that unit’s president and announced a slate of reforms to recharge the business. Gene Taylor abruptly retired and will be replaced by Brian Moynihan, the bank’s president of Global Wealth and Investment Management, and an architect of its FleetBoston merger, reports the Wall Street Journal . More »

Amazon reported strong increases in third-quarter sales, citing once again its low pricing and free shipping for success. But investors may have been hoping for an even larger increase, because Amazon's share prices fell over 8% in after-hours trading. The company netted a profit of $80 million for the quarter, an increase of 313% over last year’s figures, according to CNNMoney. More »

The GOP is losing its grip on the big-business vote, and Democrats need to seize the opportunity to move in, argues the American Prospect 's Paul Waldman. Health-care reform is the perfect peg for the left to woo Wall Street, and with single-payer systems far cheaper than the current mess, wise Democrats should be able to convert even the hardest-hearted CEO. More »

Stocks are surging while classic indicators are signaling slump — so what gives? The answer, reports the Washington Post , lies in a bright jobs report and spiking Standard & Poor's 500-stock index. Backers are dissing the bad news as fast as they can finance, says the Post : "Call them the Teflon investors."   More »

Wall Street kept the party going today, as the Federal Reserve’s half-point rate cut kept pushing stocks up. Financials even shrugged off disappointing earnings from Morgan Stanley, which posted a more-than-expected 17% drop in net income for the quarter, the Wall Street Journal reports. The Dow rose 58.04 points in early trading, with the S&P gaining 9.97 and the Nasdaq up 19.03. More »

The troubles plaguing Countrywide and Bear Stearns’ hedge funds will move from the boardroom to the courtroom. Homeowners and banks are suing mortgage lenders, shareholders are suing funds, the SEC is investigating executives, and Congress may conduct hearings into credit agencies' practices. The current mess ensnares “an incredible range of parties,” one legal expert tells the Washington Post. More »

Wall Street money is fueling the high-tech upgrade of China's police state, the New York Times reports. US hedge funds have poured $150 million into Chinese surveillance companies that are developing the latest in government spookware, from face-recognition technology to behavior-recognition software that can spot a disturbance before it begins. More »

Eye-popping job numbers rippled through Wall Street yesterday, but analysts pooh-pooh recession fears as premature. “I think it is important we take a deep breath before screaming ‘A recession is now around the corner!’” one expert says. Four thousand lost jobs may be the worst depletion in 4 years, but leave out government hiring and jobs were actually increased last month. More »

On the eve of the holiday weekend, the major markets jumped today, riding encouraging comments by President Bush and Ben Bernanke to broad advances that pushed their monthly gains above 1%. The Dow, which saw 28 of 30 stocks rise, finished up 119.01 points, closing at 13,357.74. Citigroup and JP Morgan led a financial-sector rally. More »

Tomorrow, Ben Bernanke will make his first speech since turmoil erupted in the world's financial markets early this month. As Wall Street listens for clues about whether interest rates will be cut next month, the Fed chief be walking a tightrope, the Washington Post observes. If he appears indifferent, panic could deepen; if he seems too anxious to stem losses, he'll encourage more irresponsible investing. More »

New-home sales grew 2.8% last month, delivering an unexpected bit of good news to investors still reeling from the credit crunch. But the housing market, which had been rebounding in recent months from a slump, will likely show renewed weakness after he mortgage crisis dust settles, Bloomberg reports. More »

The Dow dipped a quarter-point to close at 13,235.88 today as investors continue to fret over the possibility of a Fed interest rate cut. The S&P 500 dropped 1.57 to 1,462.5, and the Nasdaq fell 11.10 to 2,541.70. Home Depot led the retreat; shares fell fell 2.2% on news that the sale of one of its divisions is in trouble. More »

Though past merger talks were never consummated, online stockbrokers E*Trade and TD Ameritrade are again in "serious discussions" over a union, the Wall Street Journal reports. A consolidation would create a dominant player in online trading, reducing competition and perhaps ratcheting up costs for consumers. One source estimates the company could be worth $20 billion. More »

The credit crisis, which has surged across the global financial infrastructure like a tsunami, washing away millions of share prices, is about to hit one of Wall Street's most hallowed traditions —the fat bonus. The extra pay for all but an elite few may be cut for the first time in five years, Bloomberg reports. More »

The eggheads who run Wall Street's "quant funds," using complex algorithms to play the markets but neglecting the human element, screwed up as badly as everyone else during the Dow's recent dive. "They are very smart in front of a textbook but not smart enough to understand very elementary things in reality," one critic tells the Washington Post. More »