1. JPMORGAN SLASHES DIMON'S BONUS DESPITE PROFITS
JPMorgan Chase's board revealed Wednesday that it had slashed the pay of its chief executive, Jamie Dimon, by 50 percent, even though the bank ran up a record profit of $5.7 billion in the fourth quarter of 2012. Dimon's pay cut — to $1.5 million in salary and a $10 million bonus for 2012 — was part of the mounting fallout from a $6 billion trading loss last year from a bad bet on derivatives — a fiasco often referred to as the "London Whale." Sources close to the board said the decision was made to hold Dimon accountable for lapses in oversight that allowed the massive losing gamble to happen. [New York Times]
………………………………………………………………………………
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
SUBSCRIBE & SAVE
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
2. FACEBOOK LAUNCHES NEW TYPE OF SEARCH
Facebook is unveiling a new smart search engine it calls graph search to make it easier for users of the social network to find material that truly interests them. The feature lets people search content shared by friends using "natural" searches, with terms such as "friends who like Star Wars and Harry Potter." Founder and chief executive Mark Zuckerberg said Facebook wasn't trying to lure people away from Google, as the tool isn't intended to be used to do broad web searches. "But in the event you can't find what you're looking for," Zuckerberg said, "it's really nice to have this." [BBC]
………………………………………………………………………………
3. GOLDMAN SACHS' FOURTH QUARTER PROFITS SMASH EXPECTATIONS
Goldman Sachs' stock jumped by 2.7 percent in early trading Wednesday, after it reported that its quarterly profit almost tripled, far exceeding expectations. Analysts predicted profits of $3.78 per share, according to Thomson Reuters, but Goldman's profit of $2.89 billion for the final three months of 2012 — up from $1 billion for the same period in 2011 — amounted to $5.60 per share. The company's own investments and CEO Lloyd Blankfein's $1.9 billion expense-reduction effort contributed to the strong finish, which capped the bank's first year of revenue growth since 2009. [Bloomberg]
………………………………………………………………………………
4. JAPANESE AIRLINES GROUND DREAMLINERS
Boeing shares sank by 4 percent early Wednesday after Japan's two leading airlines — Japan Airlines and All Nippon Airways — grounded all of their Boeing 787 Dreamliners after one of the new passenger jets had to make an emergency landing. It was the latest in a series of mishaps on Dreamliners, including fuel leaks, a battery fire, wiring trouble, and other problems. In Wednesday's incident, an All Nippon pilot had to land after one instrument indicated a battery error and another warned of smoke. "I think you're nearing the tipping point where they need to regard this as a serious crisis," said analyst Richard Aboulafia of the Teal Group in Fairfax, Virginia. [Forbes, Reuters]
………………………………………………………………………………
5. AUTHORITIES FIND HORSEMEAT IN TESCO BURGERS
British supermarket chain Tesco has removed two store-brand frozen hamburger lines from shelves in Britain and Ireland pending an investigation after authorities allegedly found horsemeat in samples provided by a distributor. Low levels of horse DNA were detected in one type of Tesco burger the company yanked — Beef Quarter Pounders. Another product — Everyday Value Beef Burgers — contained as much as 29 percent horsemeat. Inspectors, from the Food Safety Authority of Ireland, also reported detecting traces of porcine DNA. Tests on burgers sold in several other chains, including Lidl, Aldi, Iceland, and Dunnes Stores, also reportedly included traces of horse DNA. Authorities said there was no threat to public health, only consumer confidence. [Sky News]
