• 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]