Finance professionals are just not trusted these days (as seen in this ad from Strongbow Cider), and perhaps with good reason as white collars get hauled off to court with glaring media headlines.
In the latest round, six executives from Sky Capital LLC were indicted by the feds for a $160 million stock fraud.
In a devious scheme, the brokers manipulated shares in Sky Capital to make themselves look more successful than they were, according to Bloomberg News.
Meanwhile, regulators in Britain have decided to curb banker salaries. If a firm's pay packages promote risky behavior, the Financial Services Authority will force the firm to set aside capital to cover the added risk that the compensation promotes. This is expected to act as a detriment to establishing bonus-heavy pay packages that reward short-term gains.
"We need a change of culture in the banks and their boardrooms, with pay practices that are focused on long-term stability and not short-term profit," said Alaister Darling in the House of Commons.
The only profession more distrusted currently would be law. The U.S. government today asked for a 145-year sentence for lawyer Marc Dreier, who committed fraud on hedge funds and other investors to a tune of $400 million.
"An Officer and a Gentleman"
Veteran trader and Minyanville founder Todd Harrison's fifth installment of Memoirs of a Minyan details his high-flying days and an epic power struggle in the gold towers of Morgan Stanley. (Minyanville)
Meriwether Sinks Fund Again
John Meriwether (of the Long-Term Capital Management LP fame whose failure in 1998 caused global ruckus) is about to shut down his Relative Value Opportunity II fund, part of JWM Partners LLC. (Bloomberg)
Aladdin Expands
Aladdin Capital Holdings is set to expand its capital markets business, as the small boutique firm embarks on a hiring spree. It acquired Carlyle Peake of Merrill Lynch as COO, and plans to grow to 125 employees by the end of the year. (Reuters)
Merrill's Disappearing Act
Once one of Wall Streets premier investment banks, Merrill Lynch is gradually disappearing into Bank of America. About 18 bankers have jumped since the sale. Is M&A an afterthought at the big bank? (FINS)
Citi Retains Banker
Despite reshuffles, Citi has managed to hold onto veteran dealmaker Raymond J. McGuire as the sole head of global banking. (Dealbook)
Layoffs
Jobs cuts in finance spanned the country, as MetLife has laid off several employees in the New York tri-state area, and more layoffs will happen at the end of the month (Layoff Tracker). Colonial Bank announced 136 job cuts in five states (Montgomery Advertiser).