Wednesday, April 4, 2012

Average Wall Street salary rose in 2011

Welcome to the morning roundup. Here's a look at what's news in banking and finance.

Wall Street salaries rise. The average salary for a Wall Street worker rose in 2011, a survey from says, according to Bloomberg. About 54 percent reported a rise in salary -- not including bonus -- and 40 percent said there was no change. Employees at banks like Bank of America and Goldman Sachs saw an average 3 percent raise, while hedge fund workers and boutique firms fared much better. When bonuses are taken into account, however, average pay fell.

BK to face Countrywide suit. Bank of New York Mellon will have to face a lawsuit over its position as trustee for mortgage-backed securities sold by Countrywide, a judge ruled Tuesday, Reuters reports. The lawsuits claim that the bank did not do its job in making sure the securities marketed by the company later acquired by Bank of America were properly documented.

U.S. to name risky non-banks. The federal government will soon name its "systemically important" non-bank financial institutions, MarketWatch reports. These firms, which could include companies like GE Capital, would be subject to tighter oversight and reporting requirements.

JPMorgan to be penalized for Lehman failure. U.S. regulators are expected to penalize JPMorgan Chase for its actions leading up to Lehman Brothers' failure in 2008, The New York Times reports. JPM, a major lender to the investment bank, improperly took into account customer money in valuing Lehman, leading it to overextend credit.