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Market Briefing For Oct 19, 2009
By: John Mugarian   Monday, October 19, 2009 10:54 AM

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Today, Bank of America (BAC) CEO, Ken Lewis, was stripped of his 2009 salary and bonus by the U.S. Treasury Department's pay czar. Lewis, who was not a "brother" of the Wall Street Gang gets burned at the stake, while the the other "brothers from another mother" continued to collect millions in bonuses.

By no means is Lewis suffering financially, but the former Chairman of Bank of America is just a country boy from Walnut Grove, Mississippi, who tried to take on the immoral gang on Wall Street, and got trampled.

It all started when Lewis fired Wall Street's favorite "boy toy", John Thain. Publicly embarrassing one of the "gangs" favorite members turned out to be the death-nail in Lewis' coffin. To show you how powerful and arrogant the gang really is, they got the media to report that Thain was actually in contention for the BAC CEO position after Lewis announced he was stepping down.

To further piss off BAC shareholders, the gang also got the media to report that another potential replacement for Lewis might be the former interim failure at Wachovia, Robert Steel.

If Lewis is to give up his bonus, everyone on Wall Street (Yes, Goldman too), and the banking industry should do the same.

Today's Market:

The DJIA battled back all day as a rally in energy stocks helped the major market index close up 47.08 points on the day. Goldman Sachs and Citigroup reported earnings that were better than forecast, but Goldman Sachs closed down 1.9% at 188.63, and Citigroup fell 5% to 4.75.

The S&P 500 closed up up 4.54 points to 1,096.56, and the Nasdaq Composite inched up up 1.06 to 2,173.29.

After the bell, Google blew away their third-quarter estimates on higher advertising sales. I still don't understand how Google makes so much money. I've tried to get my arms around the model, and it still doesn't make any sense.

I've read the AdSense partner site programs, and everyone has a hand in the Google til. I sure would like to see a comprehensive breakdown of their accounting. This would include, total dollars in, total dollars out. I want to see if employee compensation for grants and stock options are expensed on the balance sheet. Revenue of $5.94 billion seems to be too good to be true when you look at the current economic environment, and a business that basically produces nothing.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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