Money Management Executive Latest News

State Street Corp. will slash 1,800 more jobs on top of the 1,000 recently announced as part of a cost-reduction package that aims to cut operating expenses by $125 million throughout the remainder of 2003. The announcement came just before State Street reported a 46% decline in first quarter earnings, to $96 million, down from $178 million a year ago.

T. Rowe Price Chairman George A. Roche said first-quarter earnings would fall significantly below the 41 cents per share earned in the first quarter of 2002. The results, which are scheduled to be released this Friday, could be 30% lower, Roche said.

In the same breath as announcing its inclusion in the S&P 500 index, Federated Investors preannounced its first-quarter earnings will be $49 million, down 6% from $52.3 million a year earlier.

Vanguard reportedly filed a civil suit against Citibank and Salomon Smith Barney alleging the firms fraudulently sold it $70 million of worthless Enron bonds.

Franklin Resources, the money and mutual fund manager that operates Franklin Templeton Investments, is reportedly preparing to pay up to $521.1 million in cash to buy back its convertible bonds that mature this year.

Equity fund fees are down, the industry insists. Not so fast, academics, Lipper and the General Accounting Office counter. As proof, they take a close look at how declines in assets and increases in turnover - pressures the business has succumbed to in this bear market - put upward pressure on fees.

Junk funds have been investors’ darling in the past two months due to their strong performance, and they attracted $555.2 million last week, their eighth straight week of inflows, Reuters reports.

Janus Capital Management announced yesterday Helen Young Hayes, portfolio manager of Janus Worldwide Fund and managing director of investments, will resign from her daily responsibilities, effective June 16.

Pension reform pioneers representatives Rob Portman (R-OH) and Ben Cardin (D-MD) have just introduced their newest bill, the Comprehensive Retirement Security and Pension Reform Act (H.R. 1776).

Think the new certifications that top fund company executives are going to personally give their shareholder reports will result in more insightful, vivid descriptions of their business? Think again, fund executives and attorneys tell The Wall Street Journal.