BoAML recovery hit by crisis-era mortgage costs January 17, 2013 BANK of America Merrill Lynch’s (BoAML) profits recovered strongly through 2012, the institution reported yesterday, though mortgage charges hit profits in the last quarter. Profits came in at $4.188bn (£2.62bn) for 2012, almost three times the $1.446bn recorded in 2011. Over the past three quarters mortgage origination has grown by an average of 10 per [...]
Citi falls behind rivals as profits dip on legal and layoff costs January 17, 2013 CITI’S profits dropped sharply on the year as legal bills and layoff costs took a major chunk out of its rising revenues, the bank said yesterday. In contrast with JP Morgan and Goldman Sachs’ healthy figures, Citi’s income dropped 32 per cent to $7.54bn for 2012 as a whole. Profits increased in the fourth quarter, [...]
Barclays tells staff to behave well or get out January 17, 2013 STAFF at Barclays must obey a new code of conduct or leave the bank, chief executive Antony Jenkins said yesterday, in an internal memo sent to staff. Six months on from the bank’s £290m Libor fine and several years into the payment protection insurance (PPI) scandal, Jenkins has laid down a set of five basic [...]
E*Trade to name Idzik as chief executive January 17, 2013 E*Trade is expected to name former Barclays chief operating officer Paul Idzik as its chief executive, according to Sky News. Idzik, who left Barclays in 2008 and then headed estate agent DTZ until 2011, would be the US online retail brokerage’s fifth chief executive since 2009. E*Trade, which made a $157m profit in 2011, after [...]
Rio Tinto chief resigns after $14bn write-off January 17, 2013 THE CHIEF executive of miner Rio Tinto quit his post immediately yesterday, in a surprise move following a $14bn (£8.7m) write-down on two of his recent acquisitions. Outgoing Tom Albanese, who joined Rio two decades ago, will be replaced by Rio Tinto’s iron ore chief Sam Walsh with immediate effect. The $14bn charge includes around [...]
Buy high, sell low: The price of aluminium’s meltdown January 17, 2013 RIO Tinto’s share price dropped sharply on its announcement of a $14bn (£8.7bn) impairment charge and the resignation of its chief executive Tom Albanese but the miner went on to recover most of that value over the course of the day, proving a certain amount of market respect for such decisive action. What went wrong? [...]
BlackRock sees profits surge on equity demand January 17, 2013 FUND titan BlackRock soared to a three year share price high yesterday after posting a 24 per cent increase in profits, led by high demand for its exchange traded funds (ETFs). The New York based money manager, the world’s biggest with $3.8 trillion of assets under management, attracted $47bn of extra cash from investors in [...]
Intel’s $13bn investment unnerves Wall St January 17, 2013 OUTGOING Intel chief executive Paul Otellini said yesterday the chipmaker would spend $13bn (£8bn) in 2013 on expansion, higher than the $10bn forecast, as it reported net income for the last three months of 2012 fell 27 per cent to $2.47bn. Its shares fell three per cent in after-hours trading as analysts said the higher [...]
Air watchdogs ground all 50 Dreamliners January 17, 2013 AIRLINES were left racing to rearrange flights yesterday after regulators decided to temporarily ground the entire 50-strong fleet of Boeing’s 787 Dreamliner planes due to safety fears. Europe, India and Qatar followed Japan and the US in keeping the new planes indefinitely confined to airports following several reports of burning batteries as well as brake [...]
Hammerson and Westfield call truce in battle for Croydon January 17, 2013 AUSTRALIAN mall owner Westfield Group has made peace with Anglo-French developer Hammerson in a long-running battle over an ageing Croydon shopping centre, agreeing to redevelop it together. The two have been wrangling for over a year about the Whitgift Centre in Croydon whose owners sided with both developers on the right to redevelop the site, [...]
