More Recalls

US retail giant Target has become the latest company to recall Chinese-made toys because of safety fears.

Another Chinese product in the United States is under scrutiny. Federal officials ordered a recall of 450,000 Chinese-made tires.

Imagine that. Offshoring production to China (or elsewhere) only results in savings if those other countries cut corners on the safety regulations that are required here in the US. Who could have imagined such a thing? It's not like Economics 101 would suggest that such a thing was likely.

Investment Bank Results

Goldman Sachs earned $2.85 billion, or $6.13 a share, in the three months ended Aug. 31, compared to $1.59 billion, or $3.26 a share, in the third quarter a year ago. Net revenue rose 63% to $12.33 billion from $7.58 billion a year ago.

Bear Stearns reported net income of $171.3 million, or $1.16 a share, for the quarter ended Aug. 31, down from $437.6 million, or $3.02 a share, earned in the same period a year earlier. Net revenue declined 37% to $1.33 billion. Lehman Brothers and Morgan Stanley also reported a profit decline.

In trading (as of 2:40pm today), Lehman Brothers (LEH) is down around 3% and Morgan Stanley (MS) is down around 5%. Goldman Sachs and Bear Stearns are essentially flat. Bear Stearns' troubles had already been priced into its stock since its disastrous bailout of two hedge funds, but I am very surprised that GS has not spiked on the earnings surprise.

Top Ten International Accounting Firms

Ranked by 2007 fiscal year revenue...

PricewaterhouseCoopers International, $25.2B
Deloitte Touche Tohmatsu, $23.1B
Ernst & Young Global, $21.1B
KPMG International, $19.8B
BDO International, $4.7B
Grant Thornton International, $3.5B
RSM International, $3.1B
Praxity, $2.8B
Baker Tilly International, $2.5B
Horwath International, $2.5B

[Updated with 2007 numbers]

Top Ten US Accounting Firms

Ranked by fiscal year 2007 revenue...
1 Deloitte & Touche $9,856,000,000
2 PricewaterhouseCoopers $6,922,000,000
3 Ernst & Young $6,890,000,000
4 KPMG $4,438,000,000
5 RSM McGladrey $1,389,260,000
6 Grant Thornton $939,551,000
7 BDO Seidman $589,000,000
8 CBIZ & Mayer $466,810,000
9 Crowe Group $430,276,000
10 BKD $318,078,000

http://www.wolterskluwer.com/WK/Press/Product+Press+Releases/2007/Sep/pr_19Sep07b.htm

CIT Shuttering Home Lending

CIT Group said it will take a $35 million pre-tax charge in its third quarter associated with its previously announced plans to shutter its home lending business. Its loan collection and customer service activities are unaffected by the announcement.

Men Earn Less Than Fathers at Same Age

In 2004 the median income for a man in his 30s was $35,000. Adjusted for inflation, that's 12% less than what men the same age were making in 1974.