Tuesday, April 17, 2012

Goldman beats earnings expectations

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

Goldman beats expectations. Goldman Sachs Group Inc. reported higher-than-expected earnings and boosted its dividend, Reuters reports. The bank said its results were due to aggressive cost-cutting and strong investment banking and trading revenues.

BofA real estate. Charlotte's Bank of America Corp. has reached a deal to sell one of its Manhattan office buildings, the Wall Street Journal reports, citing people familiar with the matter. The bank is selling the 31-story 222 Broadway building to an investment group for about $230 million and will lease back part of the building, the people said. BofA announced plans to sell 222 Broadway and two towers in uptown Charlotte in February.

CEO pay widens gap. JPMorgan Chase & Co. CEO Jamie Dimon earned 67 times the average amount set aside for his investment bankers and traders, Bloomberg writes. That's the widest gap among firms that report divisional pay.

Tax day debate. Two French economists studying earnings in the U.S. propose tax rates on the rich that are much higher than those outlined in the Buffett Rule, the New York Times reports. They say the rule, a 30 percent minimum tax on earnings above $1 million, wouldn't do much to correct the income gap - adding to the political debate over taxes.