Financial Business Review: Citigroup’s MSSB Writedown, BofA Overpaid By Fannie Mae
Citigroup Inc’s (NYSE:C) $4.7 billion writedown of its Morgan Stanley Smith Barney investment is not likely to decrease Chief Executive Vikram Pandit’s profit-sharing plan award, an amount that might reach almost $24 million. The reason for this is because the plan fails to count losses at Citi Holdings, the firm’s the dead-letter unit that holds its toxic assets which include the Smith Barney brokerage.
Morgan Stanley (NYSE:MS) is experiencing difficulties from the Volcker Rule’s restrictions as to how much of its own capital a domestic investment bank is permitted to put at risk. The bank is currently attempting to raise a new multibillion-dollar infrastructure fund, according to Reuters.
Bank of America Corporation (NYSE:BAC) was paid approximately 20 percent more in 2011 by Fannie Mae (FNMA.OB) than was contractually obligated for the transfer of the servicing of troubled loans to another firm, according to a report by the inspector general for the Federal Housing Finance Agency, says Reuters.
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