In brief: Europe’s debt crisis spreads global concerns
BRUSSELS – Fears of another crisis spiral for the world economy deepened Friday after the Portuguese parliament defeated a government austerity plan, triggering renewed concern that the financial crisis in that country and in Greece could spread through the eurozone and spill across its borders.
Spooked investors worldwide were fleeing risky assets like stocks. And from Shanghai to Sao Paolo, people were awakening to the reality that what is happening in these European minnow states has vast implications for the fate of the fragile global economic recovery.
Stocks fell in Asia and Europe as governments in Portugal and Greece pushed against fierce political resistance at home to cutbacks aimed at getting their deficits under control.
Consumer borrowing down for 11th month
WASHINGTON – Americans borrowed less for an 11th consecutive month in December, paying off credit cards while increasing borrowing for cars and other products.
The mixed picture raises hopes that Americans may soon return to spending, a necessary condition for economic recovery.
But the record 11-month decrease in overall borrowing shows consumers are still holding back amid lingering economic uncertainty and 9.7 percent unemployment.
The Federal Reserve said Friday that total borrowing dropped by $1.8 billion – far less than the revised $10.6 billion for November. It also was well below the $9 billion analysts had expected. Borrowing on credit cards fell by $8.5 billion, while other types of loans increased by $6.8 billion.
Goldman CEO gets $9 million stock bonus
NEW YORK – Goldman Sachs Group Inc. CEO Lloyd Blankfein is getting a $9 million stock bonus for 2009.
The bank said in a securities filing Friday that Blankfein will receive more than 58,000 shares of restricted stock. Blankfein can’t cash in the shares for five years. He will receive no cash as part of his bonus.
Several banks are paying their CEO restricted stock in response to a furor over outsized cash bonuses paid by financial institutions that helped push the economy into a recession and then later took billions in federal bailouts.
JPMorgan gives CEO $16 million stock bonus
NEW YORK – JPMorgan Chase & Co. CEO Jamie Dimon received a stock bonus valued at nearly $16 million for 2009 after steering the big bank through the aftermath of the financial crisis, the company said Friday.
Dimon’s bonus carries several restrictions and can be recouped by the bank at any time and for any reason, a concession to criticism over lavish pay at banks that helped cause the financial crisis and then received taxpayer bailouts.
Like other big bank CEOs, Dimon received no cash bonus for 2009. Instead, he got $7.8 million in restricted stock and 563,562 in restricted stock options, JPMorgan said. The options are valued at about $8.1 million, bringing his total 2009 bonus to $15.9 million.