Cityfile: New York's Most Notable and Influential

Good news for senior execs at bailed-out banks and auto companies. While Treasury Department "pay czar" Ken Feinberg announced last week that he was slashing overall compensation at the companies under his control, he's since decided to raise base salaries. Why? Because the banks complained, of course, which prompted Feinberg to re-review the matter. More

Wall Street CEOs make a fortune, as you're undoubtedly aware. Even the chief executives of banks that have been bailed-out by Washington or have gone bust usually end up doing nicely. But despite the riches and perks these men have accumulated and massive egos they've developed along the way, few of them would do all that well in a beauty contest. Because it's high time that Wall Street take advantage of the miracle of modern science—and because we care, dammit—we took the liberty of contacting Dr. Anthony Youn, a board-certified plastic surgeon who has made appearances on Dr. 90210 and the Rachael Ray Show, to ask him what procedures he'd suggest these titans of finance consider if they want to look their very best. Dr. Youn's answers and cost estimates—and our commentary—is below.More

Ken Lewis Comes Up Empty | Ken Lewis, the outgoing CEO of Bank of America, won't be collecting a salary or bonus for 2009, according to the Wall Street Journal. Why? Because the Treasury Department's pay czar, Ken Feinberg, demanded it and the bank conceded rather than put up a fight. Don't shed any tears for Lewis: His retirement package is still worth between $69.3 million and $120 million. But there's reason to believe Citigroup chief executive Vikram Pandit is quaking in his Ferragamo loafers this evening:More

Goldman Sachs announced third-quarter earnings today and, as expected, Lloyd Blankfein has good reason to smile. The firm raked in $3.1 billion in profits, which was three times what the bank made during the same period in 2008. And Goldman bonuses will set a new record when they're doled out in a few months: A whopping $5.25 billion was set aside this quarter alone to pay for them. (As several people predicted, the firm also announced it was putting a big chuck of money—$200 million—into its foundation this quarter in what appears to be an attempt to counter negative press over the big bonuses.) But travel a few miles north from Goldman HQ to the offices of Citigroup CEO Vikram Pandit and the mood isn't as cheery. More

Citigroup chairman Dick Parsons hasn't been all that successful in fixing the ailing bank. Although Citi indicated yesterday that plans to reduce the government's stake in the bank—and return part of the $45 billion of taxpayer money it's received—it remains the most troubled major financial institution in America. (And it continues to be led by Vikram Pandit, who is probably the worst CEO of a major financial institution that still has a full-time job.) But don't let that stop you from pursuing a little freelance work, Dick.More

There's lot of financial news to be cheerful about today. According to Federal Reserve Chairman Ben Bernanke, the worst recession since the Great Depression is "probably over" at this point, which is certainly nice to hear even if Bernanke did say that it would be some time before the economy really turned around and new jobs were created. But that's not all!More

John Mack announced plans to step down as Morgan Stanley's CEO at the end of the year. He'll won't be departing the bank entirely: Mack will become Morgan's chairman on January 1, and the chief executive role will be handed over to James Gorman, the former McKinsey consultant and Merrill Lynch exec who joined Morgan Stanley four years ago and now heads up the firm's brokerage business. Mack has been making plans to retire long before the financial crisis battered the bank. But the events of the past year certainly played a role in the change in power, and what sort of legacy Mack will leave behind remains an open question.More

It's lonely at the top, as you may have heard. But we didn't realize it was this lonely. According to BusinessWeek, a big bunch of CEOs have joined social networking sites like LinkedIn and Facebook, but most of them have very few friends to speak of:

There are about 19 CEOs on Facebook but most don't have very many friends. Kenneth Lewis at Bank of America has 13 friends, John Strumpf at Wells Fargo has 12 friends and Vikram Pandit at Citigroup has only 8 friends. A handful only have one friend each and Rex Tillerson, CEO of Exxon Mobil, doesn't have any Facebook friends.

Could Vikram Pandit be so unpopular that he'd only have eight friends? Couldn't he, like, send out a memo to Citigroup employees with Facebook accounts to rectify this situation? Maybe the issue is that the Vikram Pandit on Facebook they're referring to isn't the real Vikram. We don't know for sure, but we're going to guess that the real McCoy would have figured out by now that "Citi" and "Group" aren't two separate words. Even one as dimwitted as Vikram Pandit. [BusinessWeek via Dealbreaker]

• There's a shortage of banking industry CEOs—decent ones, at least—which explains why Vikram Pandit is still in charge at Citigroup and Ken Lewis is still running the show at Bank of America. "The best players won't risk their careers going to a troubled enterprise," explains one recruiting expert. [WSJ] 
• Andrew Cuomo has been investigating pension fund corruption for the past few months. Now his own ties to just such an entity are raising questions. [BN]
• Wanna invest in a hedge fund? You're in luck. A number of them are looking to diversify their investor bases and are now targeting the middle class. [NYP]
• Stocks rose this morning ahead of a report by the Fed this afternoon. [CNN]
• Good news for JPMorgan Chase: It's "the world's strongest bank." [DB]
• Good news for Barclays: Its name will grace a Brooklyn subway station. [NYT]
• Jeffry Picower was once considered one of Bernie Madoff's victims. Not so much any longer, now that it appears he withdrew as much as $5 billion from his various Madoff accounts between 1995 and 2008. [ProPublica]

It's Good to Be CEO | According to Crain's, New York's 100 top-paid executives took home $1.2 billion in compensation last year. And a handful of them, it turns out, are execs who happen to work at banks that received bailouts from Washington: "Number four on the list is Goldman's CEO Lloyd Blankfein, with $42.9 million. Following him is Citigroup's CEO Vikram Pandit, raking in $38.2 million. Jamie Dimon, head of JPMorgan Chase, comes next in line with $35.7 million. Goldman and JPMorgan, which received $10 billion and $25 billion, respectively, in government aid, have recently moved to repay the funds. Citigroup is still saddled with the $45 billion in aid it's accepted." Topping the list, in case you're wondering, is Peter Kraus of Alliance Bernstein, who was paid $52 million just to take the job. But American taxpayers also had a hand in making 2008 a very good year for Kraus: In addition to his take from Alliance, he earned $25 million for the three months he put in at Merrill Lynch in late 2008. [NYP]

• Showdown in DC: Bank of America CEO Ken Lewis is testifying before a House committee today and getting a pounding, as expected. [WSJ, Dealbreaker]
• Will Citigroup ever get its house in order? FDIC boss Sheila Bair would like some answers, not that the board—or Vikram Pandit—have any. [NYT]
• Jim Simons held talks recently to sell a stake in his hedge fund, Renaissance Technologies, but has decided against retiring for the time being. [WSJ]
• BlackRock is close to a deal to acquire Barclays Global Investors for $13 billion; the deal would make the Larry Fink-led company the world's largest money manager, with $2.8 trillion in assets under management. [WSJ]
• JPMorgan Chase is acquiring the piece of Glenn Dubin and Henry Swieca's Highbridge Capital Management that it does not already own. [DB]
• AIG is moving out of its downtown HQ now that the company has sold off the real estate to a Korean bank and a US developer for $100+ million. [FT]
• Better than expected unemployment data and retail sales figures have lifted the major markets this morning. [CNN, BN, CNN]

• Chrysler's alliance with Fiat is a done deal. [CNN]
• Good news, bankers: The Obama administration is dropping its plan to cap salaries at firms receiving government bailout money. [WSJ]
• Citigroup is swapping $58 billion of preferred stock into common shares, a move that will make the U.S. government the bank's largest shareholder. [BN]
• The ten banks that were given to go-ahead to repay U.S. aid had planned on returning a combined $68.3 billion. Add another $4.6 billion to the tab! [DB]
•  FDIC chair Sheila Bair stirred the pot the other day when she said she hoped to oust Citi's Vikram Pandit. Now both sides are defusing tensions. [FT]
• Hedgie John Paulson is investing $100 million in CB Richard Ellis. [WSJ]

Are Vikram's Days Numbered? | This isn't shaping up to be a good day for Citigroup chief Vikram Pandit. Sheila Bair, the chair of the FDIC, is now looking to change up the bank's management team, per today's Wall Street Journal, and has even reached out someone else—Jerry Grundhofer, the former CEO of U.S. Bancorp—to "gauge his interest" in the top job. No word on how likely this scenario is. But if Vikram really unleashed an "obscenity-laced tirade about the FDIC chairman" last fall when Citigroup lost out in its bid to acquire Wachovia—as the Journal recounts—it's safe to say his neighbors got an earful this morning when he picked up the copy of the Journal on his doorstep. [WSJ]

Wall Street's Worst CEO Is Also Third Highest-Paid | "Citigroup Chief Executive Officer Vikram Pandit weathered almost six hours of grilling from shareholders at the bank’s annual meeting on April 21. He had a lot of explaining to do: The company lost $27.7 billion in 2008 and stayed afloat only with help from a $45 billion government bailout. Even as his bank was floundering, Pandit in 2008 earned $38 million in salary and stock, No. 3 among the best-paid CEOs of the top 50 U.S.-based financial companies, according to data compiled by Bloomberg. In February, Pandit told a congressional committee that, starting in 2009, he would take just $1 in annual salary until the bank is profitable again. 'I get the new reality,' he said." Clearly! [Bloomberg]

• Bank of America sold off a $7.3 billion stake in China Construction Bank as it seeks to raise cash. Good news: only $26.6 billion to go! [DB]
• Andrew Cuomo is expected to announce that Hank Morris has pleaded guilty in the pension fund probe and will be cooperating with the investigation. [WSJ]
• Citigroup has lent out the same amount it's taken from Washington ($45 billion), a sign that Vikram may have a heart, after all. [AP, Dealbreaker]
• AIG's Ed Liddy will defend his company's rep in front of a Congressional panel  today. At the very least, he can report the busted insurance giant is $1.2 billion richer now that it's sold off its Tokyo headquarters. [WSJ, DB]More