Fed Forecasts Could Awaken Treasuries
NEW YORK—Treasurys could snap out of their slumber if Federal Reserve officials this week signal an even-longer era of cheap money.
Treasury yields have been moving in a tight range as euro-zone crisis fatigue settles in and as the U.S. economy slowly returns to life. A measure of broad Treasury-market swings from Merrill Lynch, called the MOVE Index, recently fell as low as 75.0, the weakest level since June. Another common volatility gauge is near a three-year low, implying that the market believes 10-year Treasury notes will stay in a narrow range over the next three months. More
BY CYNTHIA LIN
Morgan Stanley Industry Wide Decline
Morgan Stanley, world’s largest brokerage firm, implements smart strategy to recover from industrywide hardships: curtails pay and defers more compensation for senior executives, reduces senior investment bankers and traders’ pay 20 to 30 percent, caps immediate cash bonuses at $125,000. These measures come on the heels of a fourth quarter, which some analysts predicted was the worst for trading since the 2008 financial crisis and bailouts, where financial stocks were the worst performers among the Standard & Poor’s 500 Index’s 10 sectors, and there were sharp across-the-board declines, where even the better situated JPMorgan dropped 22 percent, and Morgan Stanley shares fell 44 percent. Regulatory pressure, since the bailouts, have pushed banks to cut and defer compensation and overhaul policy.
Cuts only affected executive level.
Morgan Stanley reduced Chief Executive Officer James Gorman’s 2011 pay by 25 percent a year prior, while JPMorgan Chase & Co. held Jamie Dimon’s compensation steady.
Dimon is likely to receive $23 million, more than double Gorman’s $10.5 million package. Dimon got about $17.3 million in stock and options, while Gorman received $5.1 million of shares, according to Jan. 20 regulatory filings.
Morgan Stanley’s investment-banking unit set aside 2 percent more cash reserves than operating cost increase, while giving itself a 5 percent safety-buffer, compared to its increase in revenue: 5.74 billion for pay in the first nine months of 2011, an 8 percent increase from a year earlier. Companywide compensation and benefits rose 6 percent to $12.7 billion as revenue climbed 13 percent.
Deferred pay increases to about 75 percent. The firm deferred an average of 60 percent in 2010 and 40 percent in 2009. Deferred cash for 2011 performance will be paid out in two equal installments in the final month of 2012 and 2013, where the previous deferral plan that paid out in thirds over 18 months.
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AN INTRODUCTION TO ………………………………..
CHARTERHOUSE GROUP HOLDINGS LTD.
Charterhouse Group Holdings Ltd., is an entrepreneurial provider of commercial real estate services and a private real estate investment company.
Established in 1985 in Dallas, Texas with projects now in Seattle, Indianapolis and McCall, Idaho, Charterhouse quickly established itself as a result of its unique ability to understand, identify and react to the opportunities in the marketplace and the needs of its customers. Charterhouse Group Holdings Ltd. provides services in the following areas:
Charterhouse Property Group provides specialized expertise in the development and management of real estate investments of the Charterhouse Group. This entity operates as project developer and works in conjunction with outside construction firms and takes on the primary responsibility of a project’s development, monitoring the progress of a project and providing assistance and overview as required. Each real estate investment of the Charterhouse Group, whether it be an existing property or one to be developed is managed by Charterhouse Property Group, thus assuring that each and every detail in the operation of a project is meticulously managed, thereby maximizing the value of each Charterhouse Group investment.