Citigroup scored a major coup on Friday, taking an entire team of bankers specializing in financial services deals from Lehman brothers. The defectors are led by Henry Michaels and John Roddy, and includes director Jerry Wiant, VP Sean Burke and associates John Minor and Donald Lacey. The best part--or at least a really great part of the deal--is that whole group isn't starting for a month, after taking a thirty day break to comply with exisiting non-compete agreements.

Contractually obligatory summer vacations. So effin hot.

Citigroup Hires Six FIG Bankers From Lehman [Dow Jones Wire on CNNMoney.Com]

As we mentioned this morning, Lehman brothers made a billion bucks last quarter and trumpeted it in this morning's press release. Despite a 47% increase in earnings, shares of Lehman fell today.

A former Lehman trader who still owns shares and options in his former employer expressed his dismay to us in language suitable for late-night cable television and SEC filings.

Sector Snap: Brokers Fall [Associated Press in the Houston Chronicle]

Lehman Brothers reported a 47 percent increase in profits for the second-quarter of 2006, soundly surpassing market expectations. Net income reached $1 billion dollars, largely thanks to gains in stock-trading and M&A advisory fees.

Details on Lehman's gains after the jump.

From Market Watch.

Lehman Brothers Holdings Inc.'s (LEH) biggest geographical gap lies in Asia, the fastest-growing markets for investment banks, the company's chief financial officer said Monday.

Lehman generated 37% of its revenue outside the United States last year, beating all its peers, CFO David Goldfarb said in a Webcast of a UBS investors' conference in New York. However, the company trails them in most businesses in Asia and in some areas such as prime brokerage and investment banking.

The firm's share price and profitability have beaten its competitors in recent years as it strives to close gaps through hiring and some acquisitions, he said.

Goldfarb has previously said that Lehman's top investment priority this year is building its business in Asia. The firm employed 800 people there in the late 1990s, currently has about 1,500, and expects to grow the number to 2,500.

Despite the concerns of the India Times blogger, we think this might be a good thing. Afterall, there has been plenty of concern raised about the out-of-control skewing of sex ratios in some Asian countries. In short, the problem is that some countries, are producing many more young men than women. Some observers worry that an excess of young, aggressive men will threaten world peace. Or maybe they'll just all become investment bankers.

Lehman's biggest gap is Asia, CFO Goldfarb says [Market Watch]

Lehman and Goldman both came in at the top ranks of Barron's survey of corporate performance. DealBook has the details.

Both companies, of course, have benefited from hot capital markets around the world. Barron's depicts Lehman, which ranked No. 1, as having successfully transformed itself from a stodgy old bond house into a hot-shot player in both investment banking and asset management. It recorded record profits this year, and its stock price has doubled.

Phrases like "hot capital markets" and "hot-shot player" make us happy. It's as close as we get to literary bank smut.

Lehman, Goldman Top Barron's 500 List[DealBook]

Reuters is reporting that Lehman Brothers and Goldman Sachs are battling it out for the love of George H. Walker, IV. Walker is President George W. Bush second cousin. At 29 he became the youngest ever partner at Goldman and currently heads its alternative investment group. He reportedly lives on Greene Street in Soho.

More importantly, according to at least one source inside of Goldman, he's a "total fox."
Lehman Trying To Poach Goldman Star Walker [Reuters]

Correction: Our commenters are correct. Eric Mindich holds the "youngest Goldman partner ever" record. He made partner in October, 1994 at the tender age of 27. He had been at Goldman since 1988.

With today's Wachovia-Golden West merger news, Lehman jumps from 15th to 2nd place among M&A advisors to financial companies on deals announced in the U.S. this year, according to Thomson Financial. The big boys at Citigroup hold on to the numero uno slot, while Goldman has shrunk to third place. This is big news because, regardless of what anyone says, on Wall Street size still matters.
Lehman M&A profile rises with Monday's deals [MarketWatch]