Earnings Beat Expectations and Geithner Cleans Out His Office: Morning Buzzers

MoneyMorgan Stanley’s (NYSE:MS) CEO James Gorman is reportedly taking a pay cut for the second year in a row. The firm’s relatively strong performance last year masks an ROE of just 5 percent, about half of what it should be, and about half of the ROE at Goldman Sachs (NYSE:GS), whose CEO Lloyd Blankfein could be getting a raise.

Already one of the most talked about stocks in the market, speculation surrounding Apple is rampant after its 12 percent post-earnings drop on Thursday. Long-time bulls are backing off and slashing their price targets as investors and the market adjusts to the loss… (Read more.)

Secretary of the Treasury Timothy Geithner will leave office today and will be replaced on a temporary basis by Neal Wolin. President Barack Obama has nominated Jack Lew for the position, who is expected to be confirmed by Senate despite some opposition. Many critics wanted to see someone with more private-sector experience take the office. Meanwhile…

The Federal Reserve’s balance sheet grows to $3 trillion on the back of its massive, on-going asset-purchase program. More and more economists and even members of the Federal Open Market Committee have expressed their concern over the Fed’s growing balance sheet. Unwinding its massive position grows riskier every month as the positive effect of its spending diminishes.

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