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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Losses and bankruptcies and no bonuses for anyone

Breaking: David Cameron has said to limit bonuses in banks bailed out by the government to £2,000. read article

Kodak has failed in raising money from selling off some of its 1,100 patents [as announced in earlier this month], andhas filed for Chapter 11 bankruptcy protection additional to a $950m loan from Citigroup. Kodak used to be known for a very decent benefits scheme, but since the company’s financial turmoil, things have changed. The company hadpromised to pay $800m into their UK pension fund the coming decade, but the reorganization of the company could make that impossible. read article

Goldman Sachs announced earnings literally two seconds after yesterday’s news brief went out, reporting losses[compared to Q4 of 2010] in virtually everything. The bank missed its target revenue of $6.54bn by about $500m, and investment banking turnover slumped by 43%. But FT Alphaville points out:

Then again, which ratio is up from 2010?

Goldman’s employee compensations fell by 15% in comparison to 2010 levels, averaging at $367,057. (See NYTimes Economix article below…)

Today, everybody [else] and their mother is announcing earnings, among them Google, IBM and Microsoft. Morgan Stanley has announced a losses of $250m compared to last year, after announcing on Tuesday that it will cap bonuses at $125,000 this year. Bank of America, which had made losses [like whoa] last year (16ct per share), actually made a profit, with a net income of $15ct a share, just like Morgan Stanley.

The New York Times Economix blog posted a breakdown of university majors in the 1%. I hope for your sake that you were an economics and biology double-major. read article

And in case you didn’t read the leader in last week’s Economist, here you go: Save the City.

So long.

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One Response

  1. […] finally, in case you have been educated in economics and biology, a chart showing why the 1% end up becoming investment bankers. view chart (read full […]

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