Here’s a fun accounting term to remember: accretable yield. That’s the difference between a loan’s value on a bank’s balance sheet and the expected cash flow from the loan. Bloomberg reports:
JPMorgan Chase & Co. stands to reap a $29 billion windfall thanks to an accounting rule that lets
Just a few weeks after Rep. Edolphus Towns (D-N.Y.) requested information from Treasury Secretary Tim Geithner about White House plans to sidestep executive pay limits for bailed out firms (information that still hasn’t been provided), Towns is asking Geithner about his role in Bank of America’s reportedly shady More…
When Merrill Lynch snuck in $4 billion in executive bonuses just before its sale to Bank of America, nearly everyone I spoke with said that while the move was despicable, there wasn’t anything anyone could do. Taxpayers aren’t shareholders of Merrill, and they had to just stand by and watch. More…
President Obama’s scolding of the financial industry Thursday for awarding itself nearly $20 billion in bonuses during one of its worst years in decades pretty much speaks for itself. Instead of piling on here, let’s just turn instead to the late Myron Cope, the longtime voice of the More…
Merrill Lynch — the former Wall Street titan that was recently acquired by Bank of America — like most investment banks, typically pays about 50 percent of its revenue in compensation. The chart (after the jump) depicts Merrill’s revenue and compensation data since 2000 — and it More…
Former Merrill Lynch CEO John Thain apparently is having second thoughts about a fancy $1.2 million redecoration of his office, which he undertook before his firm nearly tanked and was merged with Bank of America. Thain has decided to reimburse the bank for the $1,045 trash can, the $35,115 commode, More…
Not only are some bailed-out companies spending billions of dollars on bonuses even as taxpayers spend billions more to save them, but some firms are using portions of that cash to lobby Congress as well. From the Wall Street Journal:
Bank of America Corp., whose heavy losses prompted
As our story pointed out Thursday, investors are worried about a lot of banks lately — including the Federal Home Loan Banks, the 12 regional institutions that are a crucial source of low-cost mortgage money to many other banks.
For years, the obscure banks had a reputation for poor More…
With the bankruptcy of Lehman Bros. and the Bank of America takeover of Merrill Lynch roiling Wall Street, Sen. John McCain attempted to reassure voters about the economy at a rally this morning in Jacksonville, Fla.
Before an audience of about 3,000, McCain repeated More…
To keep the markets from melting down today in the wake of the Lehman Bros. bankruptcy filing and the sale of Merrill Lynch, ten of the world’s largest banks have created a $70 billion pool of money, the Financial Times says.
Banks can borrow from the fund, using the More…
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