Street Talk
- As expected, Lehman announced it will pay more of employees' compensation in stock this year; the bank also granted a mid-year equity bonus on July 1st. [Reuters]
- John Thain's dilemma: How to raise capital without depressing Merrill's already saggy stock price? [Forbes]
- Carl Icahn's hedge funds are struggling. They fell 7 percent between October and April. [Bloomberg]
- American Airlines says it will lay off about 7,000 employees, or 8% of its workforce, by the end of the year. [NYT]
- Morgan Stanley commodities chief John Shapiro is stepping down. [WSJ]
- Highbridge Capital is trying to raise $1 billion for a fund to buy battered banks' debts. [NYP]
- Merrill analyst John Murphy deems a GM bankruptcy "not impossible." [Bloomberg]