Morgan Stanley, Bank of America to reform to bankers pay |
|
|
| Economy | |
| Written by Roberta Murray | |
| Thursday, 21 January 2010 | |
|
Morning Business News, Thursday 21 January: Morgan Stanley, Bank of America, Barack Obama, AIG, Chinese economy and Youtube.
Both Morgan Stanley (NYSE:MS) and Bank of America Corporation (NYSE:BAC) has pledged to change remuneration structures and practices in light of continued public pressure over the issue. Morgan Stanley said yesterday that it had cut pay in 2009 and signalled further reductions this year, as it reported its second straight annual loss. The Wall Street bank made a $907 million (£556 million) net loss last year, down from a $731 million loss in 2008. Despite the assurances, James Gorman, newly installed boss at Morgan Stanley, and Brian Moynihan, at Bank of America Corp, which owns investment bank Merrill Lynch, revealed increases in bonus payments to staff for 2009, reports the Independent. Morgan Stanley shares closed lower by 1.70% at 30.63 on Wall Street yesterday while Bank of America Corp shares closed higher 1.04% at 16.49. The bonuses at Bank of America Corp will be especially hard to swallow considering the bank posted a quarterly loss of $5.2 billion, or 60 cents per share, compared with a year-earlier loss of $2.4 billion, or 48 cents a share. Barack Obama to toughen approach to Wall StreetMorgan Stanley and Bank of America will be wary of reports that President Barack Obama is set to toughen his approach to Wall Street regulation on Thursday, announcing limits on the size of proprietary trading operations in the second broadside against banks this month, according to the FT. AIGThe ultimate cost to the taxpayer of bailing out the insurance giant AIG could be less than first feared, it is emerging. The New York Federal Reserve, the arm of the US central bank, which directed the rescue, could reap $9bn (£6bn) in repayments if a deal to sell one of AIG's biggest divisions goes ahead as planned in the coming weeks, writes the Independent. Chinese economyChina’s economy grew 10.7 per cent in the fourth quarter from the same period a year earlier but the strong growth was accompanied by higher inflation, raising fears that Beijing may introduce stronger measures to avoid economic overheating, reports the FT. Youtube cricket onlineAnd finally YouTube has sealed a deal to show Indian Premier League (IPL) cricket live online , "the next frontier" for events streamed over the internet, says the Independent.
|
|
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
