Daily Archives: March 7, 2016

Obama denies he let Wall Street off the hook

President Barack Obama said Monday it was “not true” that his administration allowed Wall Street to go back to business as usual in the wake of the financial crisis of 2008.

The president, speaking to reporters after a Monday meeting with regulators including Federal Reserve Chair Janet Yellen and Treasury Secretary Jack Lew, said it was “popular” to suggest that “nothing happened” after the crisis that helped touch off the Great Recession.

“That is not true,” Obama said. “We did not just rebuild this, we rebuilt it better and we’ve rebuilt it stronger.”
In a briefing held later, White House Press Secretary Josh Earnest noted the economy has staged a strong recovery, including the “longest streak of job creation in history,” even as Wall Street reform was enacted.

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It’s hard out there for a banker: Wall Street slashes bonuses

It’s hard out there for a bankster pimp…

It’s getting a lot tougher to make a living on Wall Street.

Average bonuses paid out in New York’s financial services sector tumbled 9 percent last year, to an average $146,200 — its lowest level in three years, the state’s fiscal watchdog said on Monday.

The decline in the treasured bonus was the result, in large part, of a 10.5 percent decline in profits on Wall Street to $14.3 billion in 2015, according to the report from the watchdog, state Comptroller Thomas DiNapoli.

The slip in profits shrank the bonus pool at the state’s broker-dealers 6 percent to $25 billion, DiNapoli said, which could reduce tax revenues for both the Empire State and the Big Apple.

The 6 percent drop in the bonus pool — plus the addition of 4,500 jobs, for a 2.7 percent jump in payrolls, to 172,400 jobs — resulted in the 9 percent decline in average bonuses.

Read on.Read on.

SEC charges Wells Fargo, Rhode Island agency with securities fraud

The question of the day: Is Wells Fargo’s execs going to jail?

(Reuters) – The U.S. Securities and Exchange Commission on Monday charged a Wells Fargo & Co unit and a Rhode Island agency with civil fraud stemming from a bond deal for a now-bankrupt video-game company founded by former Boston Red Sox pitcher Curt Schilling.

Wells Fargo Securities and Rhode Island’s economic development agency defrauded investors to finance the company, called 38 Studios, the SEC said. The company was named after Schilling’s Major League jersey number.

The charge stems from a $75 million bond offering in 2010 that was part of a Rhode Island program intended to spur economic development, the SEC said.

Wells Fargo disputes the SEC’s allegations and will respond to them in court, a spokesman said.

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