Thursday, 4 Nov 2010 | 12:40 PM ET

Goldman Compensation Down 26%...But It's Still Better Than the Rest of Wall Street

Posted By: Ash Bennington

The mood at the Park Avenue Ferrari dealership may be more dolorous than usual this bonus season. Traders may be about to take a big hit .

Historically, Wall Street traders have received the highest bonuses on The Street; this year, with trading profits down 12% so far, there may be some belt tightening by the boys and girls on the trading desks.

At Goldman Sachs , where most revenue is generated by trading, there has been a 26% reduction in average compensation for the first nine months of 2010. Still, in relation to the other big banks, Goldman is set to pay out the largest dollar figure amount in total compensation, according to the article cited above: a total of $387,655 in total compensation per employee.

\(If $387,655 doesn't sound like enough cash to lead the lifestyle of a Goldman Sachs trader, fear not: the money isn't distributed equally.

» Read More
  Thursday, 4 Nov 2010 | 12:11 PM ET

Britain Holds Steady: Rates to Remain Unchanged, with No New Easing

Posted By: Ash Bennington

One day after the U.S. Federal Reserve announced a decision to spend an additional $600 billion on easing, The Bank of England has opted to leave rates where they are , and not to escalate its own quantitative easing policy.

The growth situation has been gradually improving in the U.K., posting a reasonably strong number of .8% this past quarter. But inflation is well ahead of the 3.1% annualized target. And there have been warnings from retailers that higher raw goods prices are beginning to creep into the price of finished products.

It's worth remarking that, overall, fears of inflation are higher among the British people than they are in the United States.

In the mid-1970s, The U.K. experienced a ruinously high inflation rate of nearly 25% per year — and that memory is deeply seared into the DNA memory of the British public. Even at its worst — during the miserable malaise era of Jimmy Carter — inflation the United States remained well under 15%. That's nearly 10% lower than what the British had endured just a few years earlier.

Perhaps we have lessons to learn from our stoical brethren on the other side of The Pond?

»Read more
  Thursday, 4 Nov 2010 | 11:44 AM ET

Blanche Lincoln Is Gone. Will Dodd-Frank Derivatives Rules be Next?

Posted By: John Carney

The hard fought battle last summer over derivatives regulation reform may be about to be replayed—but this time one of the strongest proponents of stricter legislation will be absent on the field of battle.

U.S. Sen. Blanche Lincoln (D-AR)
Getty Images
U.S. Sen. Blanche Lincoln (D-AR)

Democratic Senator Blanche Lincoln became a staunch advocate of derivatives reform while facing a primary challenge from her party's left. Many thought that she would soften her stance on derivatives following her primary victory, especially because even many Democrats thought her proposals went too far.

Instead, she stuck to her guns, proposing amendments to Dodd-Frank that limited the ability of banks to engage in proprietary trading of derivates, forcing them to spin-off or separately capitalize derivatives trading desks. A slightly modified compromise version of this proposal made it into the final bill, albeit with an implementation time table that stretched out for years.

» Read More
  Thursday, 4 Nov 2010 | 11:30 AM ET

Jobs In The Rough

Posted By: Stephanie Landsman, Producer for "Squawk Box"

Prameela Nagaraj holds a bachelor's degree from the State University of New York at Binghamton. Since graduating in 1997, she has held regulatory paralegal positions at UBS and Merrill Lynch. But, you won't find her working for a financial services firm now. Nagaraj starts this week as a seasonal salesperson at a Coach Outlet Store in New Jersey.

Out of work man
Out of work man

"This job is from November third until January fifth. The day of the interview it was made clear this was only seasonal work. But, I hope this job opens a door for me... after a long time of looking and being frustrated. " says Nagaraj.

Nagaraj isn't alone.

» Read More
  Thursday, 4 Nov 2010 | 10:34 AM ET

The GOP Victory Could Make 2011 the Year of the Put-Back

Posted By: John Carney
Fannie Mae and Freddie Mac may throw a surprise wrench into the profits of our largest banks next year by demanding sizable repurchases of mortgages contained in flawed pools that underlie mortgage-backed securities. »Read more
  Thursday, 4 Nov 2010 | 9:02 AM ET

Kanjorski Loss Leaves Big Void on Finance Panel

Posted By: Jeff Cox
With Rep. Paul Kanjorski vanquished, the congressional horse-trading will begin to determine the leadership structure of the House Financial Services Committee. »Read more
  Thursday, 4 Nov 2010 | 8:53 AM ET

Did the Fed Not Go Far Enough?

Posted By: Ash Bennington
A roundup of the morning headlines. »Read more
  Wednesday, 3 Nov 2010 | 6:26 PM ET

When Men Cry (or, Boo Hoo Boehner)

Posted By: Lori Spechler
If you were watching CNBC election coverage last night, you were treated to a tearful victory speech by Rep. John Boehner. »Read more
  Wednesday, 3 Nov 2010 | 5:01 PM ET

Priced in? No Boost for Equities after Fed Announcement

Posted By: Ash Bennington
A roundup of the day's headlines. »Read more
  Wednesday, 3 Nov 2010 | 4:43 PM ET

Mohamed El-Erian's Phony Political Courage

Posted By: John Carney
We were discussing the order in which the Devil had invented war, pestilence, and risk-weighted securities at the back table of a small restaurant. The waiter kept coming by offering small bowls of bread, menus and other things intended to encourage us to take solids with our lunch. »Read more

About NetNet

  • NetNet is where you'll find the low-down and the high jinks of Wall Street. It's the place for insider stories, trader gossip, and tales of the foibles of the moneyed crowd and the culture of finance.Wall Street news and commentary served fresh all day long.


  • Jeff Cox is finance editor for CNBC.com.

  • Lawrence Develingne

    Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.

  • Stephanie Landsman is one of the producers of "Fast Money."

NetNet TV

Wall Street