Goldman Riskier Than Citigroup

Goldman Riskier Than Citigroup

Bond markets slammed Goldman Sach this week, making the firm pay more for cashizzle then even the bailed-out Citigroup. Goldman’s yield rose to 2.79 percentage points over Citigroups’ 2.29. At the end of March, before the legal and regulatory headaches began, Citigrouop’s spread was wider than Goldman’s by .45 percentage points. Higher yields on debt usually indicate a higher risk of default or other negative credit events. Concerns continue to mount over how long and how deep the firm will be tainted by the SEC’s civil lawsuit and the investigation by federal prosecutors, and what other skeletons the scrutiny might shake out.

Blankfein’s Bonds Are Riskier Bet Than Pandit’s: Credit Markets [Bloomberg]

White House Proposes New Banking Rules, Wall Street Freaks Out

White House Proposes New Banking Rules, Wall Street Freaks Out

So, we used to have this thing called the Glass-Steagall Act, which separated investment banking from commercial banking. Then we didn’t anymore. Now the President has proposed new rules that would effectively restore some of the provisions of Glass-Steagall. Wall Street is like, so not cool with it, however. [More]

Goldman Secretly Bet On Housing Crash

Goldman Secretly Bet On Housing Crash

A 5-month investigation by McClatchy Newspapers has found that Goldman secretly bet on the housing crash, went out and pimped the dickens out of assets it knew were junk, and may have broken securities laws in doing so. McClatchy found that Goldman…

Advanta Shuts Down Small Business Credit Card Accounts

Advanta Shuts Down Small Business Credit Card Accounts

UPDATE: Advanta Moves Up Credit Freeze Deadline, Still Doesn’t Notify Customers

NYC Mayor Wants To Spend $45 Million Retraining Investment Bankers

NYC Mayor Wants To Spend $45 Million Retraining Investment Bankers

New York City Mayor Michael Bloomberg wants to spend $45 million in government money retraining investment bankers, brokers and others who have lost jobs on Wall Street, says the New York Times.

Lehman Brothers CEO "Sold" $14 Million House To His Wife For $100

Lehman Brothers CEO "Sold" $14 Million House To His Wife For $100

Dick Fuld is in the news again — this time for selling a $14 million Florida house to his wife for $100. No one is quite sure why he felt he needed to do this, but some are speculating that he may be trying to hide assets from Lehman Brothers shareholders in case they are getting ready to sue to him.

Merrill Lynch: We Just Lost $9.8 Billion

Merrill Lynch: We Just Lost $9.8 Billion

Merrill Lynch just lost $9.8 billion.

http://consumerist.com/2008/01/16/bank-of-america-will-scale/

Bank of America will “scale back its structured products unit, stop offering collateralized debt obligations and sell the prime brokerage that caters to hedge funds, eliminating 650 jobs.”

Millions Donated by Gareth Morgan, Benevolent Kiwi

Millions Donated by Gareth Morgan, Benevolent Kiwi

A New Zealand investment banker has donated $47 mil to charity.