Goldman earns record $4.79B in Q4, cuts
bonus pool NEW YORK (AP) -- Goldman Sachs Group
Inc. responded to intense criticism of big Wall Street paychecks by putting
less money into its bonus pool, a move that helped it earn a record $4.79
billion fourth-quarter profit. The big bank said Thursday it rewarded
employees with $16.2 billion in salaries and bonuses for 2009. That's up 47
percent from the previous year but much lower than many expected. In all,
compensation accounted for 36 percent of Goldman's $45.17 billion in 2009
revenue, the lowest annual ratio since the company went public in 1999. In
2008, Goldman set aside 48 percent of its revenue to pay employees. Rise in jobless claims signals bump in
recovery WASHINGTON (AP) -- A surprising jump in
first-time claims for unemployment aid sent a painful reminder Thursday that
jobs remain scarce six months into the economic recovery. The surge in last week's claims
deflated hopes among some analysts that the economy would produce a net gain in
jobs in January and help fuel the recovery. A Labor Department analyst said much of
the increase was due to holiday-season-related administrative backlogs at the
state agencies that process the claims. Still, economists noted that that would
mean claims in previous weeks had been artificially low. Those earlier declines
had sparked optimism that layoffs were tapering and that employers would add a
modest number of jobs in January. Stocks slide as Obama calls for tougher
bank rules NEW YORK (AP) -- The stock market
stumbled Thursday as President Barack Obama proposed an overhaul of the
nation's banking system that could limit financial companies' ability to make
huge profits on trading. The Dow Jones industrial average
skidded 213 points to 10,389.88 after dropping 122 on Wednesday, giving the Dow
its biggest two-day point drop since late March. The index has seen four
straight triple-digit moves and the latest slide erased the Dow's gains for
2010. Bond prices rose as the stock market became more volatile. Obama said he would seek to limit the
size and complexity of large financial companies so that a bank's collapse
wouldn't endanger the overall financial system. Tightening the rules on
risk-taking and trading at banks could hurt profits at those companies. Obama steps up campaign against Wall
Street banks WASHINGTON (AP) -- President Barack
Obama stepped up his campaign against Wall Street on Thursday with a
far-reaching proposal for tougher regulation of the biggest banks. It was a stern, populist lecture from
the president to Wall Street for what he perceives as its abandonment of Main
Street. Obama said the government should have the power to limit the size and
complexity of large financial institutions as well as their ability to make
high-risk trades. He said it wasn't appropriate that
banks have been able to run these trading operations with the protections
afforded to regular banking services. Toyota recalls 2.3M US vehicles to fix
gas pedals NEW YORK (AP) -- Toyota is recalling
2.3 million U.S. vehicles to correct sticking accelerator pedals, the latest in
a string of quality problems that have bedeviled the Japanese automaker. The recall includes the 2009-2010 RAV4,
the 2009-2010 Corolla, the 2009-2010 Matrix, the 2005-2010 Avalon, the
2007-2010 Camry, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010
Sequioia. Toyota Motor Corp. spokesman Brian
Lyons says the recall is due to the vehicles' pedal mechanism becoming worn
and, in some cases, stuck. The recall comes just months after
Toyota issued a larger 4.2 million-vehicle recall because of pedals getting
stuck due to insecure floor mats. China declares crisis past, inflation a
concern BEIJING (AP) -- China declared it is
over the global crisis and signaled a shift in focus to controlling inflation,
sparking concern it could hamper growth and the country's contribution to a
worldwide rebound. Economic growth accelerated to 10.7
percent in the final quarter of 2009, the government said Thursday, beating
most forecasts and driving the full-year expansion to 8.7 percent. But
inflation also picked up, driven by a jump in food costs amid a torrent of
stimulus spending and bank lending. The strong numbers keep China on a
course to replace Japan sometime later this year as the world's second-largest
economy after the U.S. State employment data show frustrated
job-seekers WASHINGTON (AP) -- Frustrated by the
harshest job market in the country, 31,000 unemployed Michigan residents
stopped looking for work last month. So did thousands in Oregon, Massachusetts
and West Virginia. Layoffs struck government workers in
Washington state and New Jersey. Retail hiring fell in Missouri, Minnesota and
Massachusetts. Such trends have emerged in a dozen
states that have released their employment data in advance of a federal report
Friday on state joblessness. The data illustrate patterns visible nationwide
but more pronounced in some areas. Google rides rising online ad sales to
big 4Q SAN FRANCISCO (AP) -- Google Inc.
revved up its fourth-quarter Internet advertising sales and approached $2
billion in quarterly profit for the first time, providing the strongest sign
yet that Internet search leader has shaken off the recession's doldrums. The earnings announced Thursday topped
analyst estimates, but revenue only matched forecasts. Investors evidently were
hoping Google's revenue would accelerate even faster, and the company's shares
nearly 5 percent in extended trading. Google earned $1.97 billion, or $6.13
per share, in the final three months of 2009. That was up dramatically from
income of $382 million at the same time last year, when Google's earnings were
deflated by charges to reflect the eroding value of some investments. Oil tumbles as stock market stumbles NEW YORK (AP) -- Oil prices dropped
Thursday to the lowest level in a month after a government report showed the
country continues to use less energy than last year, raising doubts about the
strength of the fragile economic recovery. A proposal by President Barack Obama
for tougher bank regulations also pulled the stock market sharply lower and
left traders wondering how it would affect commodities markets. Goldman Sachs
and other major banks have helped funnel billions of dollars of speculative
money into oil and natural gas contracts during the past several years. Benchmark crude for March delivery fell
$1.66 to settle at $76.08 a barrel on the New York Mercantile Exchange. The
contract dropped as low as $75.66 earlier in the day, the lowest price since
Dec. 23. State employment data show frustrated
job-seekers WASHINGTON (AP) -- Frustrated by the
harshest job market in the country, 31,000 unemployed Michigan residents
stopped looking for work last month. So did thousands in Oregon, Massachusetts
and West Virginia. Layoffs struck government workers in
Washington state and New Jersey. Retail hiring fell in Missouri, Minnesota and
Massachusetts. Such trends have emerged in a dozen
states that have released their employment data in advance of a federal report
Friday on state joblessness. The data illustrate patterns visible nationwide
but more pronounced in some areas. By The Associated Press The Dow fell 213.27, or 2 percent, to
10,389.88, its biggest point and percentage drop since Oct. 30. The broader Standard & Poor's 500
index fell 21.56, or 1.9 percent, to 1,116.48. The Nasdaq composite index fell
25.55, or 1.1 percent, to 2,265.70. Benchmark crude for March delivery fell
$1.66 to settle at $76.08 a barrel on the New York Mercantile Exchange. In other Nymex trading in February
contracts, heating oil lost 3.55 cents to settle at $1.9856 a gallon, while
gasoline dropped 6.36 cents to settle at $1.9829 a gallon. Natural gas futures
gained 11.9 cents to settle at $5.615 per 1,000 cubic feet. In London, Brent crude for March
delivery lost $1.74 to settle at $74.58 a barrel on the ICE Futures exchange.