adminpersonal wealth this month – more than the combined losses of four other Wall Street CEOs.
The heads of Bank of America Corp. (BAC), Citigroup Inc., JPMorgan Chase & Co. (JPM), Morgan Stanley and Goldman Sachs saw the value of their combined shareholdings fall by US$94 million on paper since July 29, based on regulatory filings. That includes a US$40 million plunge yesterday. The S & P 500 Financials Index (S5FINL) of 81 companies fell 7,1 percent yesterday and is down 18 percent this month amid concern that the US economy is weakening and firms may face losses linked to European sovereign debts.
Bank of America declined the most among the five banks, dropping 11 percent yesterday to shed almost one-third of its market value since July 29.
“My entire net worth is in this company,” Bank of America CEO Brian T. Moynihan, 51, said yesterday on a conference call hosted by mutual-fund manager Bruce R. Berkowitz, whose funds own the lender’s shares.
“We believe in the stock, and you’ll see us buy the stock,” Moynihan said of his management team. The value of Moynihan’s 485 904 shares dropped to US$3,3 million yesterday from US$4,7 million on July 29 as the Charlotte, North Carolina-based company fell to US$6,77 in New York Stock Exchange composite trading.
Morgan Stanley (MS)’s James P. Gorman, who entered the market to purchase 100 000 shares on August 4, at an average price of US$20,62 a share, watched his stock drop to US$16,45 yesterday. Last week’s purchase accounted for US$417 070 of Gorman’s US$5,4 million in total stock losses since July 29. Moynihan’s and Gorman’s holdings paled next to Blankfein’s 2,1 million Goldman Sachs shares, which were worth US$232 million at yesterday’s closing price of US$110,34, down 18 percent since July 29.
After Blankfein (56), the biggest loser was JPMorgan’s James Dimon.
His 5,08 million shares lost US$31 million so far this month as New York-based JPMorgan slid 15 percent to US$34,37 from US$40,45. – Bloomberg.
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