Best Buy will acquire music-sharer Napster

NEW YORK -- Consumer electronics retailer Best Buy Inc. said Monday it will acquire online music-sharing site Napster Inc. for about $126.8 million in cash in a move to boost its digital media capabilities.

Source: L.A. Times - Business | 16 Sep 2008 | 7:00 am

Dow Jones slides as Lehman bankruptcy prompts frantic trading

The FTSE 100 slumped almost 3pc at the open in London as traders digested one of the most dramatic weekends in Wall Street's history.
Source: Telegraph Business | 15 Sep 2008 | 2:50 pm

AIG shares fall 52 percent (Reuters)

Reuters - Shares of American International Group fell more than 50 percent in early trading on reports that the insurer had turned to the Federal Reserve for $40 billion in bridge financing to ward off a liquidity crisis and ratings downgrades.

Source: Yahoo! News: Business | 15 Sep 2008 | 2:10 pm

Stocks plummet on Lehman, Merrill

Stocks plummeted Monday morning as investors contended with the biggest financial crisis in years that saw Lehman Brothers file for the biggest bankruptcy in history and Bank of America buy Merrill Lynch in a $50 billion deal.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 2:04 pm

How to Make Sure Your Money's Safe (SmartMoney Magazine)

How to make sure all your cash is safe -- including brokerage accounts and CDs.

Source: SmartMoney.com | 15 Sep 2008 | 2:04 pm

Oil drops 5 percent on financial turmoil

LONDON (Reuters) - Oil plunged $5 on Monday as investors fled to safer havens due to turmoil in the U.S. financial system and on early signs Hurricane Ike had spared key U.S. energy infrastructure.

Source: Reuters: Business News | 15 Sep 2008 | 2:04 pm

Bank of America strikes again

When others get fearful, Bank of America chief Ken Lewis finds opportunity.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 2:03 pm

Stocks plunge amid new Wall Street landscape

NEW YORK -- Stocks tumbled and Treasury bond prices soared today as investors reacted to a stunning reshaping of the landscape of Wall Street. A series of events took out two storied names Sunday: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

Source: L.A. Times - Business | 15 Sep 2008 | 2:03 pm

Take Two shares plunge after EA pulls bid (Reuters)

Reuters - Shares of U.S. video game publisher Take Two Interactive Software Inc plunged nearly 30 percent in premarket trading on Monday after larger rival Electronic Arts Inc abandoned its takeover bid.

Source: Yahoo! News: Business | 15 Sep 2008 | 1:59 pm

Take Two shares plunge after EA pulls bid

NEW YORK (Reuters) - Shares of U.S. video game publisher Take Two Interactive Software Inc plunged nearly 30 percent in premarket trading on Monday after larger rival Electronic Arts Inc abandoned its takeover bid.

Source: Reuters: Business News | 15 Sep 2008 | 1:58 pm

Credit Crunch timeline: From Northern Rock to Lehman Brothers

What began last year as a problem in American funds exposed to subprime mortgages has snowballed into one of the worst financial crises in modern history. These are the key events which led up to the collapse of Lehman Brothers.
Source: Telegraph Business | 15 Sep 2008 | 1:58 pm

Credit Crunch timeline: From Northern Rock to Lehman Brothers

What began last year as a problem in American funds exposed to subprime mortgages has snowballed into one of the worst financial crises in modern history. These are the key events which led up to the collapse...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 1:58 pm

GE (GE) Shares Jammed Down On Credit Risk

A lot of traders think that GE's (GE) financial results will be badly damaged by trouble at its GE Capital unit. The worry has the conglomerate's stock down $24.70, below its 52-week low. The period high is $42.15.

According to Reuters, "The cost of protecting General Electric Capital's debt with credit default swaps rose to 348 basis points from 209 basis points on Friday, according to Markit Intraday. That means it now costs $348,000 a year to protect $10 million of GE Capital's debt."

GE Capital may not be the only unit at the company facing trouble. If the economy continues to slow here and in Asia the earnings at the firm's huge infrastructure unit, the company's growth engine, could also be undermined.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 1:57 pm

Wall Street extends losses

NEW YORK (Reuters) - Stocks extended losses in early trade on Monday, with the Dow industrials and S&P both down nearly 3 percent as investors worried about the stability of the financial system after Lehman Brothers filed for bankruptcy.

Source: Reuters: Business News | 15 Sep 2008 | 1:57 pm

Lehman Bros files for bankruptcy

Top US investment bank Lehman Brothers files for bankruptcy protection, sending shockwaves through financial markets.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 1:56 pm

Wall Street extends losses (Reuters)

Reuters - Stocks extended losses in early trade on Monday, with the Dow industrials and S&P both down nearly 3 percent as investors worried about the stability of the financial system after Lehman Brothers filed for bankruptcy.

Source: Yahoo! News: Business | 15 Sep 2008 | 1:56 pm

Bond Report: Treasurys soar as Wall Street crisis escalates

Treasurys jump Monday, pushing yields down by the most since September 2001, as investors clamor for the safety of government debt in the wake of Lehman’s bankruptcy, Merrill Lynch’s demise and AIG’s need for cash.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:55 pm

Futures Movers: Oil futures tumble 5% to trade below $100 barrel

NEW YORK (MarketWatch) -- Oil futures tumbled to a seven-month low Monday after Lehman Brothers said it would file for bankruptcy protection and assessments of Hurricane Ike showed limited damage to key refineries in the Gulf of Mexico.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:54 pm

Currencies: Dollar falls, yen soars on safe-haven buying

The dollar slipped, the Japanese yen soared and U.S. Treasury yields plunged as traders and investors sought safe-haven protection after the credit crunch claimed Lehman Brothers over the weekend.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:53 pm

Markets in turmoil by Lehman failure and Merrill sale

NEW YORK (Reuters) - Global markets plummeted on Monday after investment bank Lehman Brothers filed for bankruptcy protection, rival Merrill Lynch agreed to be taken over and the Federal Reserve threw a life line to the battered financial industry.

Source: Reuters: Business News | 15 Sep 2008 | 1:52 pm

Lehman files for bankruptcy

Wall Street awoke to a vastly different world Monday morning after one of its own - Lehman Brothers - filed for bankruptcy in one of the biggest corporate failures in U.S. history.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 1:52 pm

Bank of America to buy Merrill for $50 billion

WASHINGTON/NEW YORK (Reuters) - Bank of America Corp said it agreed to buy Merrill Lynch & Co Inc in an all-stock deal worth $50 billion, snagging the world's largest retail brokerage after one of the worst-ever weekends on Wall Street.

Source: Reuters: Business News | 15 Sep 2008 | 1:52 pm

AIG slumps 51%; Wall Street waits for next step

American International Group, the nation's largest insurer that's been rocked by the subprime crisis, plummeted 51% in early trading Monday as the market nervously awaited the company's restructuring plan.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 1:51 pm

Market Snapshot: U.S. stocks begin sharply off on Lehman's demise

NEW YORK (MarketWatch) -- U.S. stocks tanked at Monday's start after Lehman Brothers filed for bankruptcy and Merrill Lynch & Co. Inc.'s sold itself to Bank of America Corp., shaking global markets and fueling worries about the health of other major financial institutions.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:51 pm

US market joins world shares down

Wall Street shares drop tracking market falls in Europe and Asia after confidence was hit by the bankruptcy of Lehman Brothers.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 1:50 pm

Best Buy to acquire Napster for $54 million

Best Buy Co. will acquire digital music provider Napster Inc. for $54 million, giving the retailer a means of taking on Wal-Mart in the increasingly important online-distribution channel.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:50 pm

Central banks boost liquidity on Lehman lending fears

Fears the collapse of Lehman Brothers could freeze lending around the globe prompted central banks around the world to aggressively add liquidity to money markets Monday.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:50 pm

AIG reportedly seeks $40 billion loan from Fed

American International Group, beset by a record stock slump, is seeking a $40 billion bridge loan from the Federal Reserve, according to a media report early Monday.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:49 pm

Merrill Lynch to be bought by B of A in $50 bln all-stock deal

Merrill Lynch & Co., navigating in a global financial storm, agreed to be bought by Bank of America Corp. in an all-stock deal the companies valued at $50 billion.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:49 pm

Economic Report: Industrial production drops 1.1% in August

Led by a big drop in auto production, U.S. industrial output plunges 1.1% in August, the biggest drop since Hurricane Katrina three years ago.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:49 pm

Stocks Tumble on Lehman, Merrill

The major indexes fell more than 2.5% as traders reacted to the disappearance of two banks.

Source: SmartMoney.com | 15 Sep 2008 | 1:48 pm

MarketWatch First Take: Will Lehman's bankruptcy be the last?

After 158 years, Lehman Brothers Holdings Inc. is reduced today to a 19-page filing at the U.S. Bankruptcy Court for the Southern District of New York.

Source: MarketWatch.com - Top Stories | 15 Sep 2008 | 1:46 pm

Take-Two (TTWO) Screws Shareholders, Shares Down Almost 30%

Take-Two Interactive (TTWO) could have taken an overly generous offer from Electronic Arts (ERTS). Instead, it held out for a higher price and hinted that it had other buyers.

The ERTS bid was worth $25.74. Take-Two changed hands at about $15 before the offer. Today its shares are off 28% to $15.75.

The board and management may want to find themselves outstanding attorneys.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 1:42 pm

Best Buy pays $126.8M for Napster

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 1:40 pm

Is anyone left to save WaMu?

Don't forget about Washington Mutual.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 1:39 pm

UBS shares hit by speculation of new writedowns

ZURICH (Reuters) - Shares in Swiss bank UBS AG took a new tumble on Monday, falling further than a hard-hit banking sector after reports it will have to write down another $5 billion on its risky investments in the second half of the year.

Source: Reuters: Business News | 15 Sep 2008 | 1:27 pm

AIG, facing liquidity crisis, seeks Fed lifeline

NEW YORK (Reuters) - Insurer American International Group Inc, working to stave off rating downgrades and shore up the capital of its holding company, has made an unprecedented approach to the Federal Reserve seeking $40 billion in short-term financing, the New York Times said.

Source: Reuters: Business News | 15 Sep 2008 | 1:23 pm

KitchenAid Launches White Stand Mixer with Pink Trim Band as Part of Cook for the Cure

A New Take on the Charitable Program's Icon for Those Who Want to Support the Cause without All the Pink BENTON HARBOR, Mich., Sept. 15 /PRNewswire/ -- To encourage...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:22 pm

Beacon Equity Issues Trade Alerts on Gold Stocks: ABX, GG, AEM, TRE, NEM, KGC

DALLAS, Sept. 15 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:20 pm

Output drops worse-than-expected 1.1 percent

Government data show the nation's industrial output plunged in August by nearly four times the amount that had been expected. It's the worst performance since Hurricane Katrina devastated...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:15 pm

AMR Corporation Completes Sale of American Beacon Advisors, Inc. to Lighthouse Holdings, Inc., an Affiliate of Pharos Capital Group, LLC and TPG Capital, L.P.

FORT WORTH, Texas, Sept. 15 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., announced today that it has completed the sale of...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:15 pm

HBOS leads FTSE 100 lower after Lehman bankruptcy

The FTSE 100 slumped almost 3pc at the open in London as traders digested one of the most dramatic weekends in Wall Street's history.
Source: Telegraph Business | 15 Sep 2008 | 1:10 pm

HBOS leads FTSE 100 lower after Lehman bankruptcy

The FTSE 100 slumped almost 3pc at the open in London as traders digested one of the most dramatic weekends in Wall Street's history.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 1:10 pm

15 Funds on a 7-Year Winning Streak (Fund Screen)

These mutual funds have consistently beaten the market for eight straight years.

Source: SmartMoney.com | 15 Sep 2008 | 1:09 pm

World markets tumble on Lehman news

Stock markets tumbled in Europe and Asia on Monday after the double-fisted blow from Wall Street news that Lehman Brothers had filed for bankruptcy and Merrill Lynch would be sold to a...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:06 pm

BofA to buy Merrill Lynch for $50bn

Merrill Lynch rushed into an agreement to be acquired by Bank of America for $50bn in a sign that the crisis gripping Lehman Brothers is forcing rival investment banks to seek partners to avoid suffering the same fate
Source: FT.com - US homepage | 15 Sep 2008 | 1:06 pm

Major Financials Crushing Their Own Stocks (MER, BAC, LEH, AIG, C, WM, MS, GS)

Source: 24/7 Wall St. | 15 Sep 2008 | 1:05 pm

Oil tumbles below $96 after Ike passes

Oil prices fell sharply Monday after initial reports that Hurricane Ike did not do as much damage as was originally feared to the Gulf Coast region.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 1:05 pm

Charles Prince to Join Global Strategic Consulting Firm Stonebridge International

Prince to advise top management on international strategy NEW YORK, Sept. 15 /PRNewswire/ -- Stonebridge International LLC, the leading global strategic consulting
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:03 pm

Riding Out the Storm (Tradecraft)

Even during a crisis, the same rules apply: Resist the inclination to sell in a panic.

Source: SmartMoney.com | 15 Sep 2008 | 1:02 pm

Southern Home Medical Featured in Proteus Equity Research Profile

LYMAN, S.C., Sept. 15 /PRNewswire-FirstCall/ -- Southern Home Medical Equipment, Inc. (OTC: SHOM) ("Southern Home"), which through its Encore Medical Staffing,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:00 pm

Beacon Equity Issues Trade Alerts on Market Movers: OOIL, CGYV, MITI, GMET, FWLT, LGDI

DALLAS, Sept. 15 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:00 pm

Moshe 'Mo' Koyfman Joins Spark Capital

Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:00 pm

Vermont Pure Holdings, Ltd. Announces Financial Results for its Third Fiscal Quarter Ending July 31, 2008

WATERTOWN, Conn., Sept. 15 /PRNewswire-FirstCall/ -- Vermont Pure Holdings, Ltd. (Amex: VPS) announced its financial results for the third quarter and first nine months...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Sep 2008 | 1:00 pm

Turning point

Does Lehman mark the end of US banking bail-outs?
Source: BBC News | Business | World Edition | 15 Sep 2008 | 12:54 pm

As Economy Slows, China Eases Monetary Policy

After five years of tightening monetary policy to fight inflation, China abruptly reversed course Monday afternoon, cutting interest rates and easing bank lending restrictions.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:53 pm

2 Wall St. Banks Falter; Markets Shaken

In a reshaping of the landscape of American finance, Lehman Brothers said it will file for Chapter 11 bankruptcy, while Merrill Lynch agreed to sell itself to Bank of America.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:49 pm

Financial crisis sends oil prices tumbling

Oil prices fell further below $100 a barrel today to a seven-month low on forecasts that demand for fuel will decline as the global financial crisis worsens following Lehman Brothers' bankruptcy.$
Source: Latest Business News from Times Online | 15 Sep 2008 | 12:45 pm

Ten banks commit to $70 billion borrowing facility

NEW YORK (Reuters) - Ten of the world's biggest banks on Sunday committed to establish a $70 billion borrowing facility to bolster worldwide liquidity and reduce volatility in what they called an "extraordinary market environment."

Source: Reuters: Business News | 15 Sep 2008 | 12:41 pm

Shares Fall in Europe; U.S. Index Futures Slide

Pledges of support from central banks failed to stem selling, but the atmosphere stopped short of panic.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:41 pm

Bullet-Proof Your Portfolio (Today From Barron's)

Risk experts explain how to keep your nest egg from cracking in shaky markets.

Source: SmartMoney.com | 15 Sep 2008 | 12:34 pm

From bad to worse as markets open in London

Traders in the City knew it would be a bad day well before the lines of red figures scrolled across their screens to mark the opening of the London market.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:32 pm

From bad to worse as markets open in London

Traders in the City knew it would be a bad day well before the lines of red figures scrolled across their screens to mark the opening of the London market.
Source: Telegraph Business | 15 Sep 2008 | 12:32 pm

Zimbabwe parties sign power-sharing deal

Leaders of the three Zimbabwean parties have signed a power-sharing deal at a ceremony attended by heads of government or foreign ministers from the 14 members of the Southern African Development Community
Source: FT.com - US homepage | 15 Sep 2008 | 12:31 pm

Bank shares plummet in Europe

Banking stocks fell across Europe on Monday after the dramatic overnight news of Lehman Brothers' bankruptcy and Bank of America's $50bn takeover of Merrill Lynch. Frankfurt-listed shares of Wall Street...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:20 pm

Oil and commodities prices plunge

Commodities prices plunged on Monday, with crude oil dropping to a seven-month low of $94 a barrel, as commodity dealers rushed to cut risk amid an acute crisis on Wall Street after Lehman Brothers filed...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:20 pm

Bank trims China interest rates

China's central bank cuts interest rates for the first time in six years amid growing turmoil in global financial markets.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 12:17 pm

Spain's Colonial agrees to debt restructuring

Colonial, one of Spain's largest property groups, said on Monday it had agreed to a refinancing deal in a bid to keep the company from administration.The reorganisation involves around 7bn of debt and...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 12:11 pm

World Turned Upside Down

This is the day of reckoning for Wall Street. The bankruptcy of Lehman Brothers, the sale of Merrill Lynch, and the troubles at American International Group have combined to send huge shock waves throughout the financial world.

Who could be next and when does the credit storm ease up? How does Washington deal with the fallout?

Here is where we stand:

The Fallout: European markets are tumbling and U.S. stock-index futures are poised to open sharply lower. London is down 5 percent, while Frankfurt is down 4 percent. Bank stocks are among the biggest losers. The major Asian markets—Tokyo, Hong Kong, and Shanghai—were closed for a holiday today. Australia closed down 1.8 percent, while Singapore fell 3.3 percent.

The Unwinding: The parent company, Lehman Brothers Holdings, filed for Chapter 11 bankruptcy protection in U.S. bankruptcy court in Manhattan. None of its broker-dealer subsidiaries are included in the filing, and they are continuing to operate. Lehman's bankruptcy is the biggest by a financial institution since Drexel Burnham Lambert, the firm whose fortunes rose and crashed with the junk-bond market, filed for Chapter 11 in 1990. Like Drexel, Lehman is expected to ultimately go into a runoff as it unwinds its trades.  

Whether an unwinding can be orderly in the current environment is the $1 trillion question.

On Sunday, the International Swaps and Derivatives Association, a trade group, organized an extraordinary ad hoc Sunday trading session. The goal was to give financial institutions a chance to offset their exposure to credit derivatives tied to the weakest of the stricken banks, Lehman Brothers.

But analysts say that the liquidation of Lehman will put the financial markets under pressure for some time as banks are forced to take additional write-downs and credit spreads widen. And the Wall Street Journal reports that some traders are having trouble trying to find new counterparties for their trades with Lehman.

The Next Victim: The financial firm seen as the most vulnerable is now clearly the American International Group. The insurance giant, desperate for new capital as its losses mount, may announce asset sales as soon as today. The company has also reportedly asked the Federal Reserve for $40 billion in short-term financing.

A.I.G. lost more than $13 billion in the first half of this year, most of it due to investments in mortgaged-backed securities and other debt-related instruments.

And there may be others. Still overhanging the financial-services industry is the fate of Washington Mutual, one of the nation's largest mortgage lenders. A team of private equity firms pumped $7 billion into the thrift last April, but its losses have continued to mount and its shares barely paused in their slide. They have lost more than 90 percent of their value in the last year, and closed on Friday at just over $2.

The End of the Investment Bank: With Bank of America's $44 billion acquisition of Merrill Lynch, only two independent Wall Street firms remain: Goldman Sachs and Morgan Stanley. Will they now feel pressure to merge with a big commercial bank?

When it was clear that there would be no rescue deal for Lehman, Merrill Lynch chose to welcome a suitor before its own situation was untenable.

With the deal, Bank of America leaps over Citigroup to become a behemoth in every niche of finance, from credit cards to derivatives. Is the financial supermarket back?

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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 12:00 pm

A Dose of Tenacity

Decked out in his shimmering gold uniform and thrashing all comers, Eric Heiden made winning five speed-skating gold medals at the 1980 Lake Placid Olympics look easy.

But en route to Olympic and cereal-box fame, Heiden developed a tough-as-nails mental approach to his training, then he used that tenacity long after he stepped off the medal stand.

In fact, he became a world-class cyclist and then followed in his father's footsteps and by becoming a surgeon—making both look pretty easy too.

A 17-year-old Heiden began his Olympic speed skating-career in 1976 when he finished seventh in the 1,500 meters and 19th in the 5,000 meters. During the following three years, he became unstoppable, capturing the world championships from 1977 to 1979.

In addition to Heiden, there was another little story brewing at Lake Placid—something called the Miracle on Ice. The U.S. hockey team, a group of college players, upended the heavily favored Soviet Union on their way to capturing the gold medal.

But unlike the hockey team, there was pressure on Heiden because he was supposed to win. And he did not disappoint, winning all five speed-skating events from the 500 to the 10,000 meters. He was the first person in Olympic history to win five gold medals in individual events in the same Games.

After the Olympics, Heiden decided to go in a different direction—sort of. He would try his luck at cycling, which had been an integral part of his Olympic training.

Heiden won the U.S. Championship and went on to fulfill a dream by racing in the 1986 Tour de France. It was the only time Heiden competed in the Tour de France, and he had to drop out of the race when he crashed and suffered a concussion.

Yet, for all of his physical prowess, Heiden believes that in sports at the elite level, there is very little separation among great athletes.

"In my eyes, what separates the best from the very best is mental toughness," Heiden says, adding that in cycling, "there are a lot times you want to jump in the car and give up and jump on the next plane home. But when you think about the people who have supported you, the time and effort you put in, you can't give up. You talk your way out of quitting."

That same mental toughness from his sports training prepared him to pursue another career change—a jump into medicine.

"A lot of skill sets I learned came up through sports," Heiden says. "You can use those skill sets in other pursuits. I found that a lot of my success as a physician and my ability to get through medical school...is due to those characteristics I developed as an athlete—perseverance, overcoming obstacles, and staying focused even through long stretches when your not rewarded by accolades."

Heiden graduated from medical school in the 1990s and became an orthopedic surgeon with an emphasis in sports medicine. He has been a team physician for the NBA Sacramento Kings and the WNBA Sacramento Monarchs, as well as the U.S. Olympic team.
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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 12:00 pm

Gut Check

Tony Hawk is rich and chief executive of his own company, but that doesn’t mean he’s changed all that much from the skateboarding kid with a junk food diet. In fact, it’s something he says makes him a better C.E.O.
 
For Hawk, it's always been about being true to one's self, or at least his constituency—the skaters.

"You have to be approachable and identify with your audience," Hawk said. "I never forgot where I came from. I still continue to skate with the kids and see what they're up to. I still eat at McDonald's."

Hawk has never lost touch with that audience and doesn't want to. And that may be the key to the success of his Tony Hawk Inc., a privately held business with 30 employees working from an office park 40 miles north of San Diego.

"(I want to) actually experience it and not hire a marketing group to do it for you and then you're out of touch and you're relying on whatever their vision is," Hawks said.

Hawk started skating at the age of nine and three years later he gained his first sponsor.

Two years later at 14, he turned professional and in the following two years, he was considered the best skateboarder in the world. Over the next 17 years, he won enough contests–enough to think he was set for life.
 
He launched a skateboarding company, Birdhouse Projects, but it struggled as pubic interest slumped. Hawk slumped, too, financially. But when skateboarding and extreme sports began to grab the spotlight, he seized the opportunity.

His defining moment could be deemed when he went to the 1999 X-Games in San Francisco and completed the first "900" in skateboarding competition. (A 900 is a jump of two-and-one-half rotations, 360 degrees + 360 degrees + 180 degrees = 900).

"I didn't really anticipate making (the 900) that night," Hawk said. "I told myself that night that I was going to make that trick or get taken to the hospital."

That kind of determination served Hawk in business, too.

"I go with my gut feeling," Hawk said. "Is this is something that is truly connected with what I do."

He trusts his instinct because "I do live in this world. I didn't learn about it through videos or books. I actually did it and struggled with it."

As a businessman, Hawk now has racked up unusual success.

His video game series with Activision has sold more than 30 million copies and the newest releases are frequently among the top 10 sellers in the business. He’s done a direct-to-DVD movie, a clothing brand that’s sold at Kohl’s and last year, the Tony Hawk Big Spin roller coasters made their debut at Six Flags’ Amusement Parks.

That's all in addition to his skateboarding business and an extreme sports tour called Tony Hawk's Boom Boom HuckJam, which he started in 2002.

Hawk also founded the Tony Hawk Foundation, which is designed to promote and help finance public skate parks in low-income areas.
 
The foundation has distributed more than $2.3 million to non-profit groups building skate parks everywhere from Homer, Alaska to Needles, Calif., to Greencastle, Ind., to Livermore Falls, Maine.

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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 12:00 pm

Medals and Mettle

For Cathy Rigby, it's all about passion.

At 10 years old, she knew she was going to be a gymnast; it became her passion.

"I found (gymnastics) because my brother came home one day and said 'Cathy, there's a trampoline at the local youth center. Do you want to jump on it?' And I said, 'Are you nuts?' And with each jump, I went higher and higher and it was just like flying," Rigby remembers.
 
Years later, after competing in the Olympics and winning world championship medals, Rigby jumped into being a sports commentator, actress, pitchwoman, and entertainment executive as quickly and fearlessly as she bounced on a trampoline when she was 10.

Rigby became America's sweetheart in the late 1960s, and competed for the United States in the 1968 and 1972 Olympics. Her shining moment came, however, in 1970, when she became the first-ever American gymnast, male or female, to win a medal at the World Championships, capturing the silver medal in the balance beam.

Before she was done, Rigby had won eight gold medals in international competition.

After Rigby retired from gymnastics, she became a fixture on television as a sports commentator with ABC and a spokesperson for Stayfree maxi pads. She also started a production company with her second husband Tom McCoy.

But what she is probably best known for in life after gymnastics is her acting career. She played the lead in Peter Pan and even earned a Tony award nomination in 1991 for best actress in a musical.

Other performances include turns in Annie Get Your Gun, Meet Me in St. Louis, South Pacific, Paint Your Wagon,  They're Playing Our Song, The Unsinkable Molly Brown, and Seussical the Musical.

Rigby points to three keys to success in each of her careers.

"You have to have a passion for what you do," Rigby says. "Second is you have to work really hard. Sometimes you have to work twice as good as somebody else to get the same result.
 
"And third, and one of the hardest, is to acknowledge and savor the success. We tend to blow them off and go on to the next thing. You need those little successes to sustain you when life is not kind and things are not going well."

Through McCoy Rigby Entertainment, Rigby and her husband have successfully produced many seasons of musicals, plays, concerts, and special events at the La Mirada Theatre for the Performing Arts in La Mirada, California. They even produced a pre-mass ceremony for Pope John Paul II in 1987.

The company has also launched many national touring productions, including Jesus Christ Superstar and Peter Pan.

Rigby is also a motivational speaker, providing inspiration from her days as a gymnast as well as her struggle with eating disorders—covering the warning signs, the risk factors, and the road to recovery.
 
And while her beginnings as a gymnast were solo, she carries the idea of teamwork close to her as an executive and considers it crucial.
 
"I don't care if it's the janitor or the star of the show," Rigby says. "Everybody is part of the team. Everybody is important and they need to feel that way and they matter."

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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 12:00 pm

Success, by George!

When Tate George finished his basketball career at the University of Connecticut, stardom seemed on the horizon.

Who could forget his last-second, game-winning shot against Clemson in the Sweet 16 of the 1990 N.C.A.A. Tournament? With one second remaining and the Huskies trailing by a point, 70-69, Scott Burrell heaved a full-court pass to George, who then turned around and buried a jumper to win the game, propelling Connecticut to the "Elite Eight."

And while that moment may have immortalized George forever, thanks to YouTube and ESPN Classic, his biggest lessons didn’t come from that success.

What drives him now as the head of his own real estate development company are the lessons he learned as his sports career was winding down.

In his third year with the New Jersey Nets—who made him a first-round pick in the 1990 N.B.A. Draft--he found himself headed to the bench or out of town instead of the starting role he’d expected. The Nets had drafted another phenom, Kenny Anderson, to play guard and had invested millions in him.

George remembers Nets coach Chuck Daly telling him that life wasn’t fair. Daly, George says “was letting me know that it had nothing to do with talent. It had a lot to do with the business of professional sports. Typically, the guy that makes the most money plays. It's a bigger investment. That stuck with me."

But he also learned that when he came off the bench, he needed to make the most of his opportunities when he was called upon.
 
And while George's N.B.A. career didn’t match his years at UConn, that time in the pros might have been more important to the rest of his life. It was then—during stints with three teams—that he learned life lessons, especially those four words, "Life is not fair," and to seize opportunities when you can.
 
Since he left the hardwood, he has gone on to launch the George Group, establishing the stable and substantial real development portfolio of the company that currently exceeds $500 million. His business education began with a degree from the University of Connecticut and continued with a real-world education in Wall Street banking in New York.
 
Since the founding of the George Group, he has built relationships and raised millions of dollars for an extended variety of clients in the fields of commercial development, real estate development, and international finance, as well as the entertainment and sports industries.
 
His relationships in professional sports endure and he enjoys serving as a financial mentor to young N.B.A. players. More so, the values that stem from his early career have formed the foundation for the values of the George Group: teamwork, efficient strategy, and the execution of excellence.
Related Links
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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 12:00 pm

Tomb Raider firm unveils losses ahead of new Lara Croft saga

The company that makes the Tomb Raider computer games reveals an annual loss of £136m following a year of major restructuring.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 11:53 am

Wall Street's troubles are yours, too

In the end, the weight of the housing collapse was too much for the weaker players in an over-leveraged U.S. financial sector to bear.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 11:53 am

Markets in turmoil by Lehman failure and Merrill sale (Reuters)

Reuters - Global markets plummeted on Monday after investment bank Lehman Brothers filed for bankruptcy protection, rival Merrill Lynch agreed to be taken over and the Federal Reserve threw a life line to the battered financial industry.

Source: Yahoo! News: Business | 15 Sep 2008 | 11:53 am

Lehman's dying hours

The last hours, minutes really, of one the world's largest investment banks make for a pretty unusual spectacle.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 11:49 am

Oil falls below $97 on low Ike damage

The storm destroyed about 10 oil and gas platforms in the Gulf of Mexico, a small fraction of the 3,800 total platforms there. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Sep 2008 | 11:46 am

Oil falls below $97 on low Ike damage

The storm destroyed about 10 oil and gas platforms in the Gulf of Mexico, a small fraction of the 3,800 total platforms there.

LONDON — Oil prices fell below $97 a barrel on Monday after Hurricane Ike inflicted minimal damage to oil installations on the Texas coast.

Source: L.A. Times - Business | 15 Sep 2008 | 11:46 am

China Cuts Rates, Europe Central Banks Open Vaults

Central banks in Europe said they were ready to put billions of dollars into the financial markets to ease the current credit crisis.

According to The New York Times, "The central bank said it was “ready to contribute to orderly conditions in the euro money market” and that it would lend as much cash as banks wanted at its benchmark interest rate of 4.25 percent."

At the same time China cut interest rates for the first time in six years.

Bloomberg reports that "The People's Bank of China reduced the one-year lending rate to 7.20 percent from 7.47 percent."

Those actions plus a promise by the Fed to provide emergency fund may put a net under the US markets when they open.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 11:35 am

Lehman Brothers files for bankruptcy: Employees' futures uncertain

At the London headquarters of Lehman Brothers, a trickle of downcast former workers carrying armfuls of personal belongings is the first sign of the troubles besetting the investment bank.
Source: Telegraph Business | 15 Sep 2008 | 11:34 am

How Much Will John Thain Get For Selling Merrill Lynch (MER): Probably Not Much

When Merrill Lynch (MER) CEO John Thain signed the employment agreement that made him the S&P 500's best-paid CEO of 2007, shares of Merrill were trading at more than $55 dollars per share. Now Merrill Lynch has agreed to sell itself to Bank of America ( BAC) for $25 per share -- hardly an impressive saga of valuation in the less than 12 months that Thain was at the helm.

But here's an interesting question: how much will Thain be paid for this romp? The insanely arcane 8-K, arcane even by 8-K standards, tells the story:

"... In the event of a Change in Control (as defined in the Company Stock Plan), (i) (A) 100% of the Tranche 1 Sign-on Options shall automatically vest and become exercisable, (B) 100% of the Tranche 2 Sign-on Options shall vest and become exercisable if the price per share of Company common stock paid in the Change in Control is equal to or greater than the First Price Target and (C) 100% of the Tranche 3 Sign-on Options shall vest and become exercisable if the price per share of Company common stock paid in the Change in Control is equal to or greater than the Second Price Target and (ii) (A) two-thirds of the then unvested Sign-on RSUs shall automatically vest, (B) one-sixth of the then unvested Sign-on RSUs shall vest if the price per share of Company common stock paid in the Change in Control is equal to or greater than the First Price Target and (C) one-sixth of the then unvested Sign-on RSUs shall vest if the price per share of Company common stock paid in the Change in Control is equal to or greater than the Second Price Target."

If that gives you a headache, it can be summarized like this: because the buyout price is so much lower than the price when Thain took the helm, none of those options will be worth anything. In addition, the contract states that Thain "shall not be offered a change in control severance agreement."

The only windfall that Thain appears likely to walk away with is restricted stock -- but that was only granted to compensate for the shares he gave up for leaving the New York Stock Exchange.

Thain joined Merrill Lynch optimistic that he could lead a turnaround that would make the company's shareholders and himself extremely rich. It became apparent that the story wasn't going to play out like that, and so Thain jumped ship and sold to BofA. But shareholders can take some comfort in the fact that Thain isn't getting rich off the deal.

Zac Bissonnette

Source: 24/7 Wall St. | 15 Sep 2008 | 11:24 am

Wall Street crisis deepens

Lehman Brothers filed for bankruptcy protection and Merrill Lynch agreed to a $50bn takeover with Bank of America after a dramatic weekend on Wall Street. The Federal Reserve, European Central Bank and the Bank of England rushed to introduce emergency measures to ease pressures in money markets but European equity markets slumped and the oil price dropped below $95 a barrel
Source: FT.com - US homepage | 15 Sep 2008 | 10:46 am

GKN buys Airbus plant for £136m

Part of the Airbus factory at Filton near Bristol is being sold to engineering giant GKN in a deal worth £136m.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 10:31 am

Europe's central banks add liquidity to markets

The European Central Bank has pumped $42.6 billion into nervous money markets because of the volatility and concern over the bankruptcy of Lehman Brothers Holdings Inc.

Source: Business and financial news - CNNMoney.com | 15 Sep 2008 | 10:22 am

China cuts lending rates, small banks' reserves

BEIJING (Reuters) - China's central bank, acting against a background of extreme stress in global financial markets, cut benchmark lending rates by 0.27 percentage point on Monday.

Source: Reuters: Business News | 15 Sep 2008 | 10:17 am

Can AIG (AIG) Pay Back $40 Billion? Not Likely

AIG (AIG) may lose over $20 billion for the trailing four quarters ending with the current period. It says the unprecedented credit crisis bought on by the failure of Lehman (LEH) requires it to ask outside investors and the Fed for $40 billion.

One plan would involve private equity firms. According to The Wall Street Journal Kohlberg Kravis Roberts & Co. and TPG offered to inject capital into AIG if the Fed agreed to provide the insurer with a bridge loan until its restructuring plan was completed.

The trouble is that the assets that AIG plans to sell may not bring in nearly enough money to cover the borrowing that it wants to take on. AIG may sell its auto insurance operation, annuities unit, and aircraft leasing company. If the current credit crisis worsens and AIG becomes desperate, buyers may offer low-ball numbers to pick up the assets leaving that company with a relatively small pile of cash to cover its new debt.

The government may turn down AIG's request on the basis that it is not willing to risk any capital to help a failing US financial company. AIG will make the case that it only wants the money for a short time. What it cannot say is if it will have the capacity to pay that loan back.

AIG's market cap is only $32 billion. That does not speak to the value of its better assets. Their value is masked by the huge amount of toxic paper the parent company has on its books. But, even with an infusion of capital, AIG could fail for the simple reason that its best businesses are being devalued by a flat spin in the markets.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 10:10 am

Lehman bankruptcy shakes world financial system (AFP)

AFP - Lehman Brothers declared itself bankrupt Monday and Wall Street rival Merrill Lynch had to be taken over in a new financial earthquake that sent global markets into a slump.

Source: Yahoo! News: Business | 15 Sep 2008 | 10:07 am

Merrill Lynch sold in $50bn deal

Merrill Lynch is sold to Bank of America in a $50bn deal amid a hectic weekend of activity on Wall Street.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 10:00 am

Washington Mutual (WM) Bail-Out Could Cost $24 Billion

A bail-out of Washinton Mutual (WM) could cost tax-payers another $24 billion.

According to Bloomberg, Richard Bove, an analyst at Ladenburg Thalmann & Co., said the federal government may have to provide that much in mortgage guarantees in order to attract a buyer for the Seattle-based bank.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 9:32 am

Saving Sirius XM (SIRI) In A Credit Crunch: Mel Kamazin's Last Stand

Mel Karmazin, CEO of the new Sirius XM (SIRI) satellite radio company, gone public with his plan to fix the firm.

Shares in Sirius have traded around $.90 over the last several days. They are likely to drop further due to the spread of the credit crisis.

The most immediate problem Sirius faces is that the merged radio firms have long-term debt of more than $2 billion. Sirius would like to re-finance much of that on better terms. There has never been a worse time to do so.

According to The Wall Street Journal, Karmazin will offer potential customers listening packages less expensive than the current ones. That may bring in consumers who see the present monthly price of the service as being too high. Unfortunately, it gives today's subscribers the chance to "downgrade" to lower packages with fewer channels to save money. Sirius may end up with more customers with the average revenue-per-client actually falling.

Satellite radio sales depend in large part on new car sales. Karmazin is facing another 18 months of more of that industry struggling through its worst period in decades. That partially blocks Sirius's ability to add new customers.

The Achilles Heel of satellite radio is that it has been replaced by portable electronics devices like the Apple (AAPL) iPod and multimedia phones which work on 3G networks. Consumers only want so many gadgets for getting their entertainment.

Sirius may not ever trade above $1 again for any significant period of time.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 9:27 am

A Farmer's And Truck Driver's Guide To Lehman's (LEH) Failure

Lehman (LEH) says it will go into Chapter 11. Richard Fuld, the company's CEO, will almost certainly end up being loathed more than the heads of Drexel, Long-Term Capital Management, or any of the firms that failed in the S&L crisis. His mark as a symbol of Wall St.'s monumental greed and stupidity will live long after he is gone.

Outside New York and the global financial community, Fuld has less name recognition than the giant panda, Yang Yang, in the Atlanta zoo.

More at issue than Fuld's legacy is the burden that the failure of his company and other financial firms will put on the US taxpayer, not just in the next year, but over time. The Treasury may get money to cover the bill by pushing the deficit higher and borrowing money by selling bonds, most of which will be snapped up by China. The IRS will want it pound of flesh at some point. That money may come from the pocket of the working man today. Or it will end up as part of the payroll deductions of his adult children.

It is a shame that Henry Paulson and Ben Bernanke are the only people with a "vote' when it comes to spending the government's money on emergency funds for banks. In reality, that money make not be paid back. More bank failures are likely. Some pessimists including NYU economics professor Nouriel Roubini and Wilbur Ross see that number going as high as 1,000. The FDIC does not have the capital to handle that level of depositor obligations.

There is not enough time for a national referendum on what should become of America's banks and financial system. Paulson would argue that the average citizen is too simple-minded to understand how intricate the tapestry is.

Paulson would also argue that only sophisticated experts can fathom the current troubles and navigate the complexities that are necessary to fix them.

But, it is the genius that ran Lehman and the Harvard-educated experts who operated other banks and brokerage firms who destroyed a framework which has served the country well for decades.

The system would have been better off if it had been run by farmers and truck drivers. At least they know how to fix something.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 9:04 am

Progress in move to save Alitalia

Four of Italy's main unions agree to a new plan to save airline Alitalia, but pilots and cabin crew do not back the package.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 8:52 am

Woolworths opens talks with Walker as £90m loss revealed

Richard North, the chairman of troubled Woolworths, has met Malcolm Walker, the retail entrepreneur who wants to buy the group's retail chain.
Source: Telegraph Business | 15 Sep 2008 | 8:40 am

Frenchman aims to revolutionise the very fabric of the Liberty brand

Geoffroy de La Bourdonnaye, a suave Frenchman with a penchant for football and poker, is the missing link between Mickey Mouse and Christian Lacroix.
Source: Telegraph Business | 15 Sep 2008 | 8:35 am

Arab shoppers drive West End sales boom in luxury goods

The oil-rich sheikdoms of the Persian Gulf are helping to keep the tills ringing in London's West End as British consumers tighten their purse strings.
Source: Telegraph Business | 15 Sep 2008 | 8:35 am

Poor security blamed for Indian bombs

India's opposition leaders blamed security and intelligence failures for multiple bomb blasts that killed 21 people in New Delhi, and declared the country to be at war with Islamist militants
Source: FT.com - US homepage | 15 Sep 2008 | 8:19 am

Lehman Brothers files for bankruptcy: Reaction to the collapse

The collapse of Lehman Brothers is one of the worst banking crises in decades. Below is a selection of reactions and predictions of the extent of the fallout.
Source: Telegraph Business | 15 Sep 2008 | 8:12 am

FTSE 100 slumps as Lehman bankruptcy sparks fear

The FTSE 100 slumped almost 3pc at the open in London as traders digested one of the most dramatic weekends in Wall Street's history.
Source: Telegraph Business | 15 Sep 2008 | 8:00 am

US Financials Trading in Europe: Huge Sell-Off, LEH Down 84%

Shares of Lehman (LEH) were off 84% in European trading.

Bank of America (BAC) was down 14%.

UBS (UBS) shares fell 7% at the open.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Sep 2008 | 7:48 am

Jury to deliberate satellite case pitting ICO Global against Boeing

The telecommunications firm hopes to get its plan for offering services to mobile users off the ground.

A legal battle that could play a key role in the future of wireless phone pioneer Craig McCaw's dream to provide video and other services to mobile users around the globe is now in the hands of a Los Angeles jury.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

BofA purchase of Merrill will make a megabank even bigger

Bank of America will become a giant in retail brokerage and investment banking.

Defending his controversial purchase of Countrywide Financial Corp. early this year, Bank of America Corp. Chief Executive Kenneth D. Lewis emphasized that the nation's largest consumer bank would now be No. 1 in three "anchor" financial products: deposits, credit and debit cards and mortgages.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

U.S. gasoline prices surge in Hurricane Ike's wake

With refineries down in the Gulf of Mexico, prices go as high as $5 a gallon at some pumps in the Midwest and East. The jump is expected to be short-lived, however.

Motorists far from the Gulf Coast on Sunday continued to feel the ripple effects from Hurricane Ike's trek through refinery-rich Texas, as the cost of gas throughout the Midwest and East leaped higher, going above $5 a gallon at a growing number of stations.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

'Burn After Reading' fires up the box office

The Coen brothers' film and 'Tyler Perry's The Family That Preys' help Hollywood exceed year-ago ticket sales after seven weekends of declines.

Finally, a weekend to hooray about in Hollywood.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

Wall St. braces for Lehman bankruptcy; BofA will buy Merrill

Lehman will file for bankruptcy and BofA will take over Merrill; the Fed eases its emergency lending terms.

Transforming the face of Wall Street, two major securities firms succumbed Sunday to the country's long-running mortgage crisis as Merrill Lynch & Co. agreed to a hastily arranged, $50-billion takeover by Bank of America Corp. and Lehman Bros. Holdings Inc. spiraled into bankruptcy.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

Duarte Design helps other firms make a point

The Silicon Valley company turns ideas and data into memorable presentations.

They drop off boxes of material and e-mail huge amounts of data, hoping Nancy Duarte's Silicon Valley firm can turn their mishmash of ideas and facts into a presentation that can rally people behind a cause or product.

Source: L.A. Times - Business | 15 Sep 2008 | 7:00 am

SEC to act on abusive short selling: source

WASHINGTON (Reuters) - U.S. securities regulators plan to take action on abusive short selling of stock before the end of the week, a source briefed on the matter said on Monday.

Source: Reuters: Business News | 15 Sep 2008 | 6:59 am

Putin fails to dispel doubts over Medvedev

The president has insisted that, as commander-in-chief, he called the shots in the Georgian crisis. But most Russians believe that the his predecessor still takes all the big decisions
Source: FT.com - US homepage | 15 Sep 2008 | 6:59 am

Currency: Dollar rises as US dollar falls

The New Zealand dollar pushed higher today with the United States dollar tumbling in Asian trading as Lehman Brothers said it would file for bankruptcy. By 5pm today the NZ dollar was at US66.87c from US66.43c at 8am and US65.37c...
Source: New Zealand Herald - Business | 15 Sep 2008 | 5:48 am

Bank of America to buy Merrill for $50 billion (Reuters)

Reuters - Bank of America Corp said it agreed to buy Merrill Lynch & Co Inc in an all-stock deal worth $50 billion, snagging the world's largest retail brokerage after one of the worst-ever weekends on Wall Street.

Source: Yahoo! News: Business | 15 Sep 2008 | 5:46 am

Banks pump in £30bn as Lehman goes bust

Analysis: Black Monday | Two-minute catch up | Countdown to bankruptcy | Merrill Lynch seals future | Oil prices tumble
Source: Latest Business News from Times Online | 15 Sep 2008 | 5:35 am

Merrill Lynch seals future with Bank of America deal

Merrill Lynch, the Wall Street investment bank, managed to seal a $50 billion ($£27.9 billion) all-share deal to secure its long-term future just as its smaller rival Lehman Brothers filed for bankruptcy.
Source: Latest Business News from Times Online | 15 Sep 2008 | 5:12 am

Lehman set to go into insolvency

Preparations are made for investment bank Lehman Brothers, the latest victim of the US credit crisis, to file for bankruptcy.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 4:33 am

Blog: Where things stand as markets brace for Monday

Source: L.A. Times - Business | 15 Sep 2008 | 3:33 am

AIG seeks to shore up balance sheet

US insurer AIG has asked buy-out investors Kohlberg Kravis Roberts, TPG, and JC Flowers to raise $10bn-$20bn in equity, as part of an emergency plan to shore up its balance sheet
Source: FT.com - US homepage | 15 Sep 2008 | 3:18 am

NEW NEW NEW: {ts '2008-09-14 23:03:16'} (Pundit Watch)

Source: SmartMoney.com | 15 Sep 2008 | 3:07 am

Wall St bank crisis deepens - $US70bn plan to avert global panic unveiled

NEW YORK - A failed plan to rescue Lehman Brothers was followed by more seismic shocks from Wall Street, including a government-brokered takeover of Merrill Lynch by the Bank of America for $US50 billion. A forced restructuring...
Source: New Zealand Herald - Business | 15 Sep 2008 | 3:00 am

Southern Cross surplus falls - insurance claims up 16pc

Southern Cross Medical Care Society today reported a surplus of $7.83 million in the year to June 30, down from $48.01 million the year before. The medical insurer paid out 89.6 cent in every dollar of premiums collected, up from...
Source: New Zealand Herald - Business | 15 Sep 2008 | 2:30 am

China's Wall Street Blues

As China Investment Corp. joined the possible suitors hoping to snap up a battered Lehman Brothers, an interview with th the sovereign wealth fund’s chief showed even though that deal didn't happen, he was sticking with investments in Wall Street stalwarts Morgan Stanley and Blackstone—positions that have turned out to be losers so far.
 
"Yes, the valuations of Blackstone and Morgan Stanley have fallen after we bought our stakes. But we believe both are strong financial-services companies and have bright futures," said Lou Jiwei, the $200 billion fund’s chairman and chief executive officer, in an interview with Institutional Investor magazine. "Over the longer term we remain confident with both companies."
 
(The entire interview can be found on the magazine’s website).

The Financial Times reported Friday that C.I.C. had joined a group that included private equity fund J.C. Flowers and Bank of America to bid on the stumbling Lehman. Now that Lehman was left to fall and Merrill gobbled up by Bank of America, those whispers didn't become real. Still it shows that the C.I.C. under Lou is no longer shy about jumping into the fray, especially when it comes to U.S. financial firms. Now that the world has shifted, investors in Blackstone and Morgan will be watching C.I.C. closely.

During his interview with I.I., Lou takes pains to portray C.I.C. as a "stakeholder" in the global financial system. The fund, he says, aims to be a mostly passive investor that pursues commercial objectives and usually doesn’t seek board representation, although the board doesn’t rule that out.
 
"Roughly 60 percent to 70 percent of China’s gross domestic product is tied to the world economy. You can see how open China’s economy is to global trade," he says in the interview. "We want to see long-term stability in global financial markets because long-term stability is to our benefit. The U.S. markets are going through turbulent times. We hope to see the U.S. recover after the subprime crisis.

The fund bought 9.9 percent of private-equity giant Blackstone Group for a cool $3 billion in June 2007, even before its formal establishment. In December, C.I.C. helped recapitalize Morgan Stanley with a $5.6 billion injection.
 
"They’re trying to do something no one else has done, which is to jump-start a sovereign wealth fund with $200 billion," one senior financier, who spoke on condition of anonymity, told I.I. "The people who have that kind of money have been doing this for 10, 20, 30 years."
 
Blackstone shares have fallen by more than 50 percent from the company’s June 2007 initial public offering price, to close at $15.91 Friday.
 
The deal, according to the magazine, was arguably a symbol of C.I.C.’s inexperience. Blackstone senior managing director Antony Leung, a former Hong Kong financial secretary, approached C.I.C. executives about the investment before the fund was formally established.
 
"It has been a black eye for China Investment. It’s a sign of incompetence," says Guan Anping, a Beijing-based securities lawyer with Anjing & Partners and a onetime aide to former vice premier Wu Yi, who was China’s top trade official before retiring in March.
 
Morgan Stanley hasn't fared much better; its shares are down more than 25 percent since January.
 
According to the I.I. article, observers say the Blackstone investment has turned up the heat in a turf war between C.I.C. and the State Administration of Foreign Exchange, an arm of the People’s Bank of China that previously enjoyed a monopoly on managing China’s reserves.
 
C.I.C. executives are sensitive to criticism of the performance of the fund’s early investments, the magazine reports.
 
"Our ultimate investors are the Chinese public," explained Wang Shuilin, a former senior economist at the World Bank Lou recruited to serve as C.I.C.’s head of communications and international relations. "We can’t mess around and make bad investment decisions. We have a huge responsibility, a huge burden on our shoulders."
 
Still, Wang tells I.I., C.I.C. is committed to keeping its Blackstone shares as a long-term investment.
 
"I met Dr. Henry Kissinger recently in the U.S., and he asked if China Investment would sell," says Wang. "I said, 'No, we have confidence in Blackstone. The fundamentals are strong. We haven’t lost money because we haven’t sold.'"

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Source: Portfolio.com: Top 5 | 15 Sep 2008 | 2:00 am

CBI latest to warn of recession

The CBI becomes the latest organisation to predict the UK will fall into recession before the end of this year.
Source: BBC News | Business | World Edition | 15 Sep 2008 | 12:34 am

Lehman Brothers and Merrill Lynch's lost weekend

To lose one major investment bank in the course of a weekend, to paraphrase Oscar Wilde, might be considered a misfortune. To lose two looks dangerously like a catastrophe.
Source: Latest Business News from Times Online | 15 Sep 2008 | 12:02 am

Meat and dairy pull down manufacturing stats

Total manufacturing sales volumes fell 1 per cent in the June quarter, mainly due to a fall in meat and dairy product manufacturing, Statistics New Zealand (SNZ) says. Meat and dairy product manufacturing volumes fell 9.4 per cent,...
Source: New Zealand Herald - Business | 14 Sep 2008 | 11:59 pm

Retailers grapple with impacts of Hurricane Ike (Reuters)

Reuters - Retailers in the Houston area scrambled on Sunday to stock shelves and open stores forced to close, as they tried to meet high demand for emergency supplies in the wake of Hurricane Ike.

Source: Yahoo! News: Business | 14 Sep 2008 | 11:37 pm

Wall Street on the Ropes

Brace yourself for a mad, mad, mad, mad Monday.

The slow-motion meltdown of Wall Street picked up momentum on Sunday as one crippled investment bank reportedly agreed to be acquired, a second failed to find a buyer at any price, and a third major financial firm was forced to seek capital and sell a jewel asset it had sworn to keep just a few months ago.

Eager to ease fears and facilitate trading, the Federal Reserve took several steps to increase liquidity in the markets. Among other things, it agreed to accept any investment-grade debt as collateral on its loans to investment banks. [See related article.]

The cascade of bad news was enough to lead the International Swaps and Derivatives Association, a trade group, to organize an extraordinary ad hoc Sunday trading session. The goal was to give financial institutions a chance to offset their exposure to credit derivatives tied to the weakest of the stricken banks, Lehman Brothers.

The trade group said the extraordinary session was needed "to reduce risk associated with a potential Lehman Brothers Holdings Inc. bankruptcy filing." Any trades made on Sunday were "contingent on a bankruptcy filing on or before 11.59 p.m. New York time," it added. Without such a filing, the trades would be canceled, the group said.

Sunday began on a grim note when Bank of America and other potential rescuers of Lehman Brothers backed away from the venerable firm in the morning after the federal government declined to guarantee any of the failing firm's assets. The last known potential buyer, Barclays PLC of Britain, threw in the towel early on Sunday afternoon.

The absence of a credible buyer greatly increased the likelihood that Lehman, which has suffered life-threatening losses on mortgage investments it made with borrowed money, would be forced to liquidate in bankruptcy court, perhaps within a matter of hours.

While the company has some valuable assets remaining, liquidation could strain derivatives markets in which the 158-year-old firm was a counterparty on credit default swaps and other instruments.

A desire to minimize chaos in those markets on Monday in the event of Lehman's liquidation, the International Swaps and Derivatives Association hastily arranged its ad hoc trading session on Sunday afternoon.

As that was getting underway, Bank of America dropped another bombshell: It was in talks to acquire a different investment bank, Merrill Lynch. Like Lehman, that firm has seen its stock hammered in recent weeks as investors grew wary of its exposure to mortgage investments.

Rather than risk the fates of other Wall Street firms pole axed by leveraged mortgage bets gone bad—Bear Stearns hastily sold itself to JPMorgan in March after its stock collapsed and its reputation evaporated, and now Lehman, which was in a similar position—Merrill Lynch opted to welcome a suitor before its situation was untenable.

  Merrill had been widely seen as the next domino to fall after Lehman Brothers, and its stock began to sink rapidly last week. Merrill shares fell more than 12 percent on Friday, and are now worth about one-fifth what they were a year ago.

In an article posted late Sunday on its website, the Wall Street Journal said Bank of America and Merrill Lynch had reached a deal valuing the investment bank at $44 billion, or roughly $29 a share.

The Journal article didn't cite the source of this information as of 11 p.m. Neither Bank of America nor Merrill mentioned a merger on their websites at that hour.

If accurate the sale price would represent a 40 percent premium over Merrill's closing price on Friday, when speculation about its future drove shares down to $17.05. They had traded for $78.66 about a year ago.

At the same time, American International Group, the insurance company, raced to hammer out a major reorganization, including the sale of its coveted aircraft leasing company and other units, to shore up its balance sheet, the New York Times reported, citing only "a person briefed on the company's strategy."

AIG, like Merrill, had seen its share price pummeled as it revealed the breadth and depth of its exposure to now-suspect mortgage-backed securities—and the losses it has sustained on them. AIG's stock fell more than 30 percent on Friday alone, trading for as little as $11.49. Less than a year ago, its shares fetched more than $70.

Besides offering to sell its International Lease Finance Corporation unit, which owns almost 1,000 commercial aircraft that it leases to airlines around the world, AIG is also seeking a capital boost of $40 billion, the Times said. As of the close of Friday's trading, all of AIG's outstanding shares combined were worth less than $33 billion.

AIG lost more than $13 billion in the half of this year, most of it due to investments in mortgaged-backed securities and other debt-related instruments. If that weren't bad enough, Standard & Poor's, the credit-rating agency, said Friday that it may cut AIG's rating [subscription required]. Lower credit ratings would increase AIG's cost of doing business, likely deepening its losses.

Unaddressed on Sunday, but still overhanging the financial services industry is the fate of Washington Mutual, one of the nation's largest mortgage lenders. A team of private equity firms pumped $7 billion into the bank last April, but its losses have continued to mount and its shares barely paused in their slide. They have lost more than 90 percent of their value in the last year, and closed on Friday at just over $2. Related Links
World Turned Upside Down
The End of Lehman
Wall Street Huddles for Safety


Source: Portfolio.com: Top 5 | 14 Sep 2008 | 11:30 pm

Need to know: EDF bid for BE ... Kingfisher results ... A&L takeover vote

Economics
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:28 pm

Europe wants IT trade pact back on table

Brussels has proposed renegotiating a deal covering almost all global trade in information technology goods after the US, Japan and Taiwan started WTO litigation against the EU for breaking the agreement
Source: FT.com - US homepage | 14 Sep 2008 | 11:03 pm

City big guns turn on planned bank rescue laws

The Government will come under pressure today to rewrite its controversial plans for dealing with ailing British banks as some of the City's most powerful fund managers claim that the new rules would ride roughshod over their rights.
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:00 pm

City big guns turn on planned bank rescue laws

The Government will come under pressure today to rewrite its controversial plans for dealing with ailing British banks as some of the City's most powerful fund managers claim that the new rules would ride roughshod over their rights.
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:00 pm

Does anyone know what's going on? You bet

In the middle of a squalid news story there is sometimes a sliver of genuine cheer and hope for humanity. If that is not available, the next best thing is a spark of levity. When genuine uplift is unlikely, then the spirit of mischief can take you a long way back to equanimity.
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:00 pm

Growing boneyards are trouble for aircraft industry

They call them the boneyards, the places where elderly aircraft go to die, but in the normally silent desert cemeteries for the old and the unwanted the sound of alarm bells is being heard by the multibillion-dollar aircraft-leasing industry.
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:00 pm

CBI forecasts unemployment of two million by end of 2009

Unemployment in Britain will surge by 450,000 to 2.12 million by the end of next year, a level not seen since 1997, when Labour came to power, as the country endures its first recession since the early 1990s, the CBI forecasts today.
Source: Latest Business News from Times Online | 14 Sep 2008 | 11:00 pm

Times tough for NZ service sector

The service sector is still doing it tough, according to the latest results of a "performance of services" index collated by Business NZ and the BNZ. The "Performance of Services Index" for August stood at 47.9, down 1 point from...
Source: New Zealand Herald - Business | 14 Sep 2008 | 11:00 pm

NZ Shares: Market eases down in early trade

The New Zealand sharemarket eased down in early trade, as furious speculation surrounded the future of troubled giant United States investment bank Lehman Brothers. As trading started in this country, the outlook for Lehman Brothers'...
Source: New Zealand Herald - Business | 14 Sep 2008 | 10:41 pm

Nato head attacks EU's Georgia deal

The deal brokered by the European Union for the withdrawal of Russian troops from Georgia has been condemned by Jaap de Hoop Scheffer as 'not acceptable' because it cedes too much ground to Moscow
Source: FT.com - US homepage | 14 Sep 2008 | 10:35 pm

NZ dollar rises against weakening greenback

The New Zealand dollar is higher against the greenback as the United States currency posted its worst one-day decline against the euro in six months. Weak US economic data and uncertainty over the future of troubled investment...
Source: New Zealand Herald - Business | 14 Sep 2008 | 10:30 pm

Fifth of wealth funds 'unaccountable'

One fifth of sovereign wealth funds are not accountable to their domestic legislatures, according to a survey backed by the IMF as part of moves to press for a voluntary code of conduct
Source: FT.com - US homepage | 14 Sep 2008 | 9:59 pm

Airport Amenities That Make Long Waits Bearable (Deal of the Day)

Stuck at the airport? These amenities will make the wait much more bearable.

Source: SmartMoney.com | 14 Sep 2008 | 9:27 pm

Air NZ flies in to new era for fuel saving

Air New Zealand's chief pilot, Dave Morgan, thinks a lot about fuel. He's recently had the painful duty of signing off the airline's fuel purchases, and this year it's been hitting $5 million a day at times. Like other airlines,...
Source: New Zealand Herald - Business | 14 Sep 2008 | 9:00 pm

SkyCity deals hard to appease investors

SkyCity Entertainment Group will head into its annual general meeting next month with a very different line-up to face investors, who last year called for its board to be censured. The casino and hotel operator has been through...
Source: New Zealand Herald - Business | 14 Sep 2008 | 8:30 pm

Fed won't bail out faltering Lehman

NEW YORK - With the global financial system holding its collective breath, the US government worked through the weekend to force a rescue deal for Lehman Brothers and restore confidence in Wall Street and the American financial structure. The...
Source: New Zealand Herald - Business | 14 Sep 2008 | 8:00 pm

Deposit insurance system may face WaMu test

Attention has focused on the danger presented by a Lehman failure. But the failure of a commercial bank such as Washington Mutual can have systemic consequences if it threatens a run on other weak banks
Source: FT.com - US homepage | 14 Sep 2008 | 7:38 pm