Search

Andrew Cuomo, attorney general of New York, has filed a civil fraud lawsuit against accounting firm Ernst & Young, accusing it of helping Lehman Brothers Holdings Inc. disguise its financial situation for years before Lehman's collapse.

Prolonged low interest rates in the U.S. may be affecting some banks' profit margins and pension funds' returns, which may eventually prove detrimental to the economic recovery.

Goldman Sachs Group Inc.'s second-quarter profit fell 40% to $1.9 billion, while revenue dropped 28% to $8.9 billion from $12.37 billion a year ago. Net revenue from Goldman's investment-banking operations rose 24% to $1.12 billion.

A weak economy, volatile markets, and regulatory changes may lead to a wave of job cuts among banks and securities firms. Securities-industry employment has dropped 6.7% since 2007.

Wall Street firms will have to reduce the size of their operations to abide by new government regulations, but the impact on profit could be less severe than expected as companies rush to reintegrate their most talented employees into different areas.

Entrepreneur Warren Buffett's Berkshire Hathaway Inc. will invest $3 billion, and possibly as much as $6 billion, in General Electric Co. in the form of preferred stocks from which Berkshire will receive $300 million in annual dividends. Berkshire also gains the option of buying $3 billion in GE common stock at $22.25 per share. Article discusses GE's stock value, relations with investors, access to capital, and planned realignment of operations.

Goldman Sachs Group Inc. may face financial losses derived from its private-equity branch GS Capital Partners' investments in student-loan company First Marblehead Corp. Article discusses corporate funding in a troubled capital market, and First Marblehead's financial standing, stock value, and relations with Goldman Sachs.