Bank of America reports $1.2bn loss. 21 January 2011Last updated at 13:30 Writedowns also affected the bank's full-year results Bank of America has reported a second straight quarterly loss, driven by a $2bn (£1.25bn) writedown of its mortgage business. The bank announced a net loss of $1.2bn in the last three months of 2010, compared with a $5.2bn loss a year ago. However, last year's results included a $4bn charge related to the government's Troubled Asset Relief Program (Tarp). Chief executive Brian Moynihan said 2010 was a "necessary repair and rebuilding year". "Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us," he said. The bank had previously warned that it would write down the value of its mortgage business, given the foreclosure crisis in the US, which has seen homeowners - facing high unemployment and slow job growth - fall behind on their mortgage payments. 'Manageable' Excluding the writedown the bank made a $756m profit.
Osborne predicts 'turmoil' if cuts and tax rises halted. 30 January 2011Last updated at 12:41 Speaking on The Politics Show, the chancellor says he has had to make "tough, difficult decisions" Chancellor George Osborne has warned there would be "financial turmoil" if he abandoned cuts and tax rises. Mr Osborne told the BBC no politician liked cutting spending and increasing taxes, but he was trying to clear up the "mess" Labour had left. He hinted union laws could be changed if there were a wave of strikes. Writing in the Independent on Sunday, shadow chancellor Ed Balls accused Mr Osborne of being in denial about the risks to jobs and growth posed by cuts. He said his plan to eliminate the deficit by 2015 was "irresponsible and dangerous", and there was an alternative.
He pointed to the US economy, which saw growth towards the end of last year, as an example. "Supporting job creation, reforming our financial systems and investing in jobs for the future is the best way to get economies moving again and to cut the deficit," he said. Morgan Stanley sees profits jump. 20 January 2011Last updated at 15:33 Morgan Stanley paid employees generously, but made 60% of their remuneration packets conditional US Wall Street firm Morgan Stanley has reported a 60% jump in fourth-quarter profit, as expected by markets. The US's second-largest investment bank announced a net profit of $600m (£375m) for the last three months of 2010, up from a $376m profit a year earlier. The firm followed rivals Goldman Sachs and Citigroup in reporting poor client activity at its investment bank unit. But this was more than offset by strong performances by its wealth management and asset management business lines. Morgan Stanley's share price jumped 2% at the open of trading in New York - retracing much of the 3.5% drop recorded on Wednesday - before falling back again as the morning progressed.
"High expectations were baked into the results, they were expected to be good so the market is not showing much reaction to them," said Nick Serff, market analyst at City Index. “Start Quote Pay. Goldman Sachs chief Lloyd Blankfein gets $15m pay award. 29 January 2011Last updated at 16:43 Goldman Sachs chief executive Lloyd Blankfein has seen his paypacket get thicker Wall Street firm Goldman Sachs Group has tripled the base salary of chief executive Lloyd Blankfein to $2m (£1.3m), up from $600,000 in 2010. And company filings show he was also awarded shares worth $12.6m last year, a 42% hike from the the stock bonus he received for 2009.
It comes even after the bank's profit fell 38% in 2010 to $8.35bn. Banks were pressed to reduce bonuses in 2009 after the 2008 global economic collapse, largely blamed on bankers. The financial system had been rescued by more than a trillion dollars of support from the US government, and there was public outrage from Main Street at the sums of money Wall Street bankers were being paid in salaries and bonuses.
But now bonuses for top executives for 2010 appear to be creeping higher again. Les banques britanniques sauvegardent leurs bonus en promettant de prêter davantage.