Speaking at Georgetown University’s Business School alongside his best-bailed-out buddy BofA’s CEO Brian Moynihan, Warren Buffett has some rules (or goals) for the “wealthy” that are summed up perfectly in this quote:
*BUFFETT: RICH MUST LEARN TO LIVE ON $500 MILLION, DONATE REST
*BUFFETT SAYS WE HAVEN’T LEARNED WELL ENOUGH HOW TO SHARE WEALTH
*BUFFETT SAYS PEOPLE WILL CONTINUE TO MAKE MISTAKE OF GREED
*BUFFETT: SOCIETY MUST ENSURE PEOPLE DON’T FALL TOO FAR BEHIND
The number of chief executives in banking that are at the helm of the same institution that they were in 2007 has become a pretty select group.
Step forward, Brady Dougan, the tightly-controlled Credit Suisse CEO who has somehow manoeuvred between heightened regulatory demands, post-crisis political outrage in Switzerland and sweeping cultural and operational changes within his own bank.
There was a time when it was thought time was running out for Mr Dougan to prove that his strategy of maintaining a full-service, de-risked investment bank alongside Credit Suisse’s top tier wealth management business was viable in a Basel III world.
The bank’s second quarter results, just released, show that Credit Suisse, like its US rivals, benefited from a better quarter in sales and trading, where revenues increased 19 per cent year on year.
Q3 Revenue of $35.32 billion beats expectations of $35.04 billion; This compares to $35.0 billion a year ago, or the firm barely posted a revenue increase this quarter – the first time in yearsQ3 EPS of $7.47, Exp. $7.31
sees Q4 revenue of $34-37 billion, Exp. $36.97 billion;
Q3 Gross margin of 36.9%, Exp. 36.7%; Sees Q4 margin of 36%-37%
iPhone sales of 31.2 million, Expected 26.1 million
iPad sales of 14.6 million, Expected 17.4 million
And since margin did not reflect a pick up in iPhone sales, sure enough the Q3 iPhone ASP was $581, vs Expectations of $597
AAPL total cash and investment rose to a record $146.6 billion up from $144.7 billion, however the sequential growth of “only” $1.9 billion was the lowest since March 2010
And on those news the stock is up some $15 after hours: hardly representative of the epic upward moves in days gone by. Read More
Is the “hip” Marissa Mayer’s honeymoon with Wall Street finally over? After getting the vast benefit of the doubt from Wall Street for some 50%+ upside in the stock price without generating any actual results, moments ago the search engine that everyone used over a decade ago before the arrival of such better alternatives as GOOG, once again failed to deliver. Specifically, while the company beat the EPS estimate of $0.30 with eash and a print of $0.35, it was the top line that the firm posted a miss, revenue coming at $1.07 billion on expectations of $1.08 billion. But it was the outlook that really impacted the stock, which initially was trading higher only to turn lower as the company’s guidance cut was released. To wit:
YAHOO SEES 2013 ADJ OPER INCOME $900M-$1B, SAW $1.05B-$1.1B
YAHOO SEES 3Q REVENUE EX TAC $1.06B-$1.10B, EST. $1.12B
YAHOO SEES YR REV. EX-TAC $4.45B-$4.55B, EST. $4.54B Read More
John Thain, former chairman and CEO of Merrill Lynch and COO at Goldman Sachs, told Bloomberg Television’s Erik Schatzker and Sara Eisen on “Market Makers” today that a crisis like the one in 2008 could “absolutely” happen again.” Thain said, “If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail.”
Thain, who is currently CEO of CIT Group, also commented on selling the company to a larger bank, saying that would be “obvious.” He said, “The big banks are awash in deposits and they can’t generate attractive assets. We, in all our businesses, are able to generate very high-yielding, attractive assets, so the logic of that is obvious.”
Thain on how comfortable we should be with what Wall Street has become since September 2008:
“If you are asking about too big to fail and can what happened in 2008 could happen again, the answer is yes, it absolutely can happen again. If anything, too big to fail is a bigger problem because the biggest financial institutions are more concentrated today than they were. Dodd Frank did not solve too big to fail.” Read More
Berkshire Hathaway CEO Warren Buffett (R) watches friend Microsoft Chairman Bill Gates throw a newspaper in a competition just before the Berkshire annual meeting in Omaha May 4, 2013. Buffett and the board of his conglomerate Berkshire Hathaway Inc are “solidly in agreement” on who should be the company’s next chief executive, he said at Berkshire’s annual shareholder meeting on Saturday.
Signs of extreme physical tightness in the gold and silver markets continue to intensify, with reports of banks and firms refusing their customers physical delivery of their own bullion are increasing nearly hourly. The latest report comes from the CME’s former CEO Leo Mahlamed, who reportedly was refused delivery of 2 gold contracts Tuesday! Mahlamed attempted to stand for delivery of 2 April gold contracts (a measly 200 oz), and according to reports from the floor, the CME reportedly refused to physically deliver 200 oz of gold to its former CEO, and would only provide Mahlamed a warehouse receipt! The music appears to be stopping, and the paper game is up!