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$10.1-trillion national debt? Let's cut taxes!Even when trying to save the economy, Congress can't resist its pork addiction.Even before the current financial crisis, a federal budget deficit of nearly $500 billion was projected for next year. Now an additional $700 billion has been committed to bailing out Wall Street, not to mention as much as $200 billion for mortgage giants Fannie Mae and Freddie Mac. Source: L.A. Times - Business | 5 Oct 2008 | 7:00 am A home page for bidding on foreclosuresSome firms see a place for an online market in distressed properties. Drawn by the convenience, faraway investors won't know what they're getting into.As the nation prepares to pay the price for years of unfettered property speculation, a collection of online companies is hoping to cash in on an oncoming wave of foreclosure sales by auctioning distressed homes online -- with significant consequences for homeowners as well as purchasers.¶ Next month, Duval County in Florida will be the first in the country to hold an Internet foreclosure auction, forgoing the traditional courthouse sale in the hope of attracting buyers from other areas. ¶ If the sales proceed and other states sign on, it will be an earth-shifting change in the way foreclosures are handled because it will eliminate a key requirement meant to protect homeowners from unscrupulous lenders. ¶ By law in California -- and every other state save Florida -- lenders may not simply claim that a homeowner has defaulted on payments and move to take over the house. Instead, they must hold a public sale, in the county where the property is located, after notice has been provided to the borrower and the sale has been advertised. ¶ Internet sales will also have important ramifications for bidders. ¶ Because potential buyers may be out of the area, many won't be able to fully research the properties and might wind up, as happens even in courthouse sales, finding faucets with no running water, foundations that are crumbling and even the occasional corpse. Source: L.A. Times - Business | 5 Oct 2008 | 7:00 am How I Made It: Peter Y. LevinIt's never too early to draft a game plan for your career -- the chief of a tech investment group and co-owner of football team Chicago Rush began his at 19 in Creative Artists Agency's mail room.The gig: Levin is chief executive of GYL, a Santa Monica technology investment portfolio focused on digital media companies and video game platforms. He serves as a board member for online virtual world Habbo Inc.; in-game advertising company Double Fusion Inc.; Power Challenge, a maker of multi-player sports games; and game developer Mind Control Software Inc. Levin is also the founder and co-owner (along with former Chicago Bears coach Mike Ditka) of the Arena Football League's Chicago Rush team; a managing partner in Palisades Baseball, which owns and operates two minor league baseball teams; and minority partner in and strategic advisor to Strikeforce, a mixed martial arts promotional entity. Source: L.A. Times - Business | 5 Oct 2008 | 7:00 am Personal Finance Daily: The week's 10 best Personal Finance stories: Sept. 29-Oct. 3In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Sept. 29-Oct. 3:Source: MarketWatch.com - Top Stories | 4 Oct 2008 | 12:01 pm EU leaders to discuss bank crisisAn emergency summit of European leaders is due to be held in Paris on the global financial crisis.Source: BBC News | Business | World Edition | 4 Oct 2008 | 11:48 am European leaders seeks remedies for financial crisisPARIS (Reuters) - French President Nicolas Sarkozy hosts a meeting of European leaders Saturday to try to shore up confidence in a banking system hit by the worst financial crisis since the 1930s.Source: Reuters: Business News | 4 Oct 2008 | 11:43 am Auto Review: 2009 Vokswagen TiguanYou may have a dictionary that is so big and heavy it has to sit on its own stand. Well don't go rushing to it trying to find out what a Tiguan is. It won't be in there.Source: MarketWatch.com - Top Stories | 4 Oct 2008 | 10:00 am Tata plant move may affect India investments, growthMUMBAI (Reuters) - The decision by India's Tata Motors Ltd to move a factory out of West Bengal state after violent protests may affect the broader investment climate in the country,...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 9:38 am Tata plant move may affect India investments, growthMUMBAI (Reuters) - The decision by India's Tata Motors Ltd to move a factory out of West Bengal state after violent protests may affect the broader investment climate in the country, deterring foreign investors and denting economic growth.Source: Reuters: Business News | 4 Oct 2008 | 9:38 am Dutch media split over Fortis nationalizationAMSTERDAM (Reuters) - The government decision to nationalize the Dutch banking and insurance units of Fortis after the financial services group hit an acute cash crunch divided the country's media on Saturday.Source: Reuters: Business News | 4 Oct 2008 | 9:36 am Dutch media split over Fortis nationalizationAMSTERDAM (Reuters) - The government decision to nationalize the Dutch banking and insurance units of Fortis after the financial services group hit an acute cash crunch divided the...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 9:36 am UBS management will earn less after crisis: reportZURICH (Reuters) - UBS AG will not introduce a cap on salaries, but management will earn less that before the credit crisis, the Swiss bank's chairman said in an interview published on...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 9:13 am UBS management will earn less after crisis: reportZURICH (Reuters) - UBS AG will not introduce a cap on salaries, but management will earn less that before the credit crisis, the Swiss bank's chairman said in an interview published on Saturday.Source: Reuters: Business News | 4 Oct 2008 | 9:13 am Allianz, others consider buying AIG's Japan units: reportsGermany's Allianz Group and other major insurers are considering buying American International Group's three life insurance units in Japan, news reports said Saturday. On...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 7:52 am U.S. loses 159,000 jobs in September, worst one-month drop in five yearsEconomists say the accelerating pace of unemployment, combined with the most severe credit crisis since the Great Depression, makes the label of 'recession' increasingly likely.As the presidential election season nears its climax, there is growing evidence that the country is slipping into the deepest recession in decades. Source: L.A. Times - Business | 4 Oct 2008 | 7:00 am Wells Fargo offers to buy all of Wachovia for $15 billionCitigroup objects, citing its own agreement Monday to acquire the troubled bank but not its mutual fund units and its brokerage arm, Wachovia Securities.Wells Fargo & Co.'s agreement to acquire troubled Wachovia Corp. for $15 billion is a dream deal that bank analysts have discussed for years: a marriage of the strongest regional bank west of the Mississippi with a powerhouse in the Eastern and Southeastern United States. Source: L.A. Times - Business | 4 Oct 2008 | 7:00 am Government's bailout path a maze of unknownsTreasury will have a tough time divining the value of the complex mortgage securities and ensuring a fair deal for taxpayers.Now comes the hard part. Source: L.A. Times - Business | 4 Oct 2008 | 7:00 am Reversal of fortune: House approves $700-billion bailout billFour days after rejecting a similar plan, the House of Representatives approves the measure by a 263-171 vote. Bush quickly signs the bill into law.The House of Representatives approved the $700-billion Wall Street bailout Friday, setting in motion the biggest government intervention in the financial system since the Great Depression. Source: L.A. Times - Business | 4 Oct 2008 | 7:00 am Mastermind in one of California's largest real estate scams gets 14 yearsCharles Elliott Fitzgerald, 48, pleaded guilty in May to charges of bilking mortgage lenders of more than $40 million. He is the first of 11 defendants to be sentenced in the case. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am Wells Fargo offers to buy all of Wachovia for $15 billionCitigroup objects, citing its own agreement Monday to acquire the troubled bank but not its mutual fund units and its brokerage arm, Wachovia Securities. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am Government's bailout path a maze of unknownsTreasury will have a tough time divining the value of the complex mortgage securities and ensuring a fair deal for taxpayers. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am U.S. loses 159,000 jobs in September, worst one-month drop in five yearsEconomists say the accelerating pace of unemployment, combined with the most severe credit crisis since the Great Depression, makes the label of 'recession' increasingly likely. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am Steepest job losses in five years reportedLabor Department survey shows cuts in most sectors of the economy, raising recession fears. Experts expect the trend to continue. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am Reversal of fortune: House approves $700-billion bailout billFour days after rejecting a similar plan, the House of Representatives approves the measure by a 263-171 vote. Bush quickly signs the bill into law. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 7:00 am AIG to sell Japanese life insurance unitsTOKYO (Reuters) - American International Group Inc, plans to sell its three Japanese life insurance businesses, an AIG spokesman said on Saturday, in sale Japanese media estimated could top $9.5 billion.Source: Reuters: Business News | 4 Oct 2008 | 6:16 am AIG to sell Japanese life insurance unitsTOKYO (Reuters) - American International Group Inc, plans to sell its three Japanese life insurance businesses, an AIG spokesman said on Saturday, in sale Japanese media estimated could topSource: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 6:14 am AIG to sell Japanese life insurance units (Reuters)
Source: Yahoo! News: Business | 4 Oct 2008 | 6:14 am GM launches new Traverse crossover at Tenn. plantGeneral Motors Corp. on Friday officially launched full-scale production of the new Chevrolet Traverse at its overhauled former Saturn plant on the outskirts of Nashville. Troy A....Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 4:43 am Bush warns challenges remainPresident Bush says the US economy still faces "serious challenges", after signing a $700bn financial rescue plan.Source: BBC News | Business | World Edition | 4 Oct 2008 | 4:16 am Bailout Bill Fails to Reassure InvestorsWall Street finally got what it had been demanding all week, a financial rescue package, but investors had already turned their attention to other problems in the economy.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 4:03 am Market Snapshot: U.S. stocks seek credit market, economic reliefInvestors will enter next week relieved that a $700 billion financial bailout passed Congress, but still concerned about seized-up credit markets and a worsening outlook for the economy and earnings, as reporting season officially kicks off.Source: MarketWatch.com - Top Stories | 4 Oct 2008 | 4:01 am European Banks Expect to Benefit From the Chaos in Their IndustryExecutives at Europes still-solvent giants see an opportunity to crack businesses long dominated by more nimble American companies brought low by the financial crisis.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 3:47 am Netherlands Takes Over Fortiss Dutch OperationsThe deal comes less than a week after the government of the Netherlands, along with Belgium and Luxembourg, had agreed to invest 11.2 billion euros in Fortis.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 3:46 am Paulson vows to speed rescue to financial systemSigned and sealed, the $700 billion bailout now must be delivered. After 14 days, three votes and billions of dollars in stock market losses to get the massive financial rescue through...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 3:29 am Administration rushes to begin financial rescueSigned and sealed, the $700 billion bailout now must be delivered. After 14 days, three votes and billions of dollars in stock market losses to get the massive financial rescue through...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 3:27 am Wells bids $15 billion for Wachovia; scuffles with CitiNEW YORK (Reuters) - Wells Fargo & Co agreed to buy Wachovia Corp for about $15 billion, upstaging a government-backed Citigroup Inc bid for Wachovia's banking assets with a deal that would catapult it into the top ranks of national consumer banking.Source: Reuters: Business News | 4 Oct 2008 | 3:23 am Notice From the Securities Law Firm of Klayman & Toskes to all Investors who Held Large, Concentrated Positions in Wachovia StockNEW YORK, Oct. 3 /PRNewswire/ -- The Securities Law Firm of Klayman & Toskes, href="http://www.nasd-law.com">www.nasd-law.com , announced today that a class...Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 3:15 am CCH Issues Special Briefing on Tax Provisions of Financial Rescue LawRIVERWOODS, Ill., Oct. 3 /PRNewswire/ -- CCH, a Wolters Kluwer business and a leading provider of tax, accounting and audit information, software and services (Source: Infocious RSS raw feed - channel BNewsBusiness | 4 Oct 2008 | 3:13 am Chinas Dairy Farmers Say They Are VictimsIn Chinas widening milk scandal, dairy farmers say that the real culprits are dairy companies and the milking stations that they operate.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 2:51 am Lehman creditors seek to probe firm: report (Reuters)
Source: Yahoo! News: Business | 4 Oct 2008 | 1:37 am Lehman creditors seek to probe firm: reportNEW YORK (Reuters) - Unsecured creditors of Lehman Brothers Holdings Inc asked a court overseeing Lehman's bankruptcy proceedings for permission to investigate how the firm ran out of money, The Wall Street Journal reported on its website on Friday.Source: Reuters: Business News | 4 Oct 2008 | 1:37 am New Drug-Coated Stent Grabs Market Share, Exceeds ExpectationsIt didn't take Abbott Laboratories long to hit the ground running with its newly approved stent.Source: Investor's Business Daily: BUSINESS | 4 Oct 2008 | 1:28 am In Brief - FridayUBS (UBS), the Swiss bank giant, will cut an additional 2,000 jobs at its troubled investment banking unit, on top of 4,000 previously eliminated.Source: Investor's Business Daily: BUSINESS | 4 Oct 2008 | 1:28 am Are Safety Firms A Safe Bet?No doubt about it, the innocence is gone. Since 9/11, airlines have tightened safeguards, barricades have gone up around government buildings and...Source: Investor's Business Daily: BUSINESS | 4 Oct 2008 | 1:28 am Trends & Innovations - FridayMore letting go of their landlinesSource: Investor's Business Daily: BUSINESS | 4 Oct 2008 | 1:28 am Business Briefs - FridayAmgen wins anemia drugs ruling. The drug maker scored a legal victory as a federal court in Boston upheld a jury decision backing Amgen's patents...Source: Investor's Business Daily: BUSINESS | 4 Oct 2008 | 1:28 am Kasman Says Bailout Won't Get Economy `Out of the Woods'Source: Bloomberg - All Podcasts | 4 Oct 2008 | 1:01 am Stocks to Watch: Stocks in focus for MondayAmong the companies whose shares are expected to see active trade in Monday's session are Wells Fargo, Wachovia, Citigroup, and AIG.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:56 pm After Hours: National City slumps after ratings cut; financials mixedFinancial stocks are mixed in the evening as investors digest the passage of the Bush administration’s massive financial-sector rescue plan by the House of Representatives.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:55 pm ETF Investing: Credit jolt takes toll on stocks and commodities ETFs in quarterIt was a quarter to forget for most exchange-traded funds that invest in stocks as the credit storm ripped through financial markets. Meanwhile, commodities were also crushed on economic jitters and a rising U.S. dollar.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:49 pm Economic Diary on U.K., Japan Interest Rate DecisionsSource: Bloomberg - All Podcasts | 3 Oct 2008 | 11:43 pm Citigroup moves to thwart Wells-Wachovia dealWells Fargo sparked a regulatory and legal dispute with a surprise $15.1bn all-share offer for Wachovia, trumping Citigroup's $2.2bn government-aided deal to buy most of the sixth-biggest US lender.Source: FT.com - US homepage | 3 Oct 2008 | 11:36 pm Google, Yahoo delay search ad partnershipWASHINGTON (Reuters) - Google Inc and Yahoo Inc have decided to delay implementing a controversial search advertising partnership, Yahoo said on Friday.Source: Reuters: Business News | 3 Oct 2008 | 11:32 pm Google delays Yahoo ad dealRead full story for latest details.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 11:24 pm International stock funds tumble hard in an unforgiving quarterMany investors like to think of international-stock mutual funds as a part of their portfolio that can offer respite from domestic market troubles. But results this year are disproving that idea with alarming force.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:15 pm Treasurys stand out in losing quarter for most bond fundsMost low-risk bond fund managers earn some bragging rights in the third quarter. Their funds' slim returns in a period when the bottom fell out of the global financial markets meant these folks did their job.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:15 pm Weekend Investor: U.S. stock funds' sharp quarterly losses test investors' mettleThere’s an old saying among investors that a stock doesn’t know you own it, so don’t get attached. In the tumultuous third quarter, investors did everything they could to run as far as they could from stocks.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:14 pm US to go ahead with $6bn Taiwan arms dealThe US plans to sell $6.5bn in weapons to Taiwan as part of a long-awaited package intended to boost the island's ability to defend itselfSource: FT.com - US homepage | 3 Oct 2008 | 11:13 pm Microsoft reviews hiring plans, but no job freezeSEATTLE (Reuters) - Microsoft Corp said on Friday it is reviewing its hiring plans in light of tough economic conditions, but denied reports it had instituted a company-wide hiring freeze.Source: Reuters: Business News | 3 Oct 2008 | 11:13 pm Rescue packageWhat happens now the bail-out has been passed?Source: BBC News | Business | World Edition | 3 Oct 2008 | 11:09 pm AIG puts many businesses up for sale as it seeks to repay FedAmerican International Group plans to refocus on its core property and casualty insurance businesses and is looking into the sale of other units as it seeks to repay a massive loan from the Federal Reserve.Source: MarketWatch.com - Top Stories | 3 Oct 2008 | 11:06 pm California may seek $7bn emergency loanArnold Schwarzenegger, California's governor, has told the federal government that upheaval in the credit markets could leave his state in need of an emergency $7bn loan to pay for public services such as law enforcement, hospitals and firefighting.Source: FT.com - US homepage | 3 Oct 2008 | 11:03 pm Funding cut forces aAIM to adjust targetsThe Bank of Scotland has cut off future funding for a real estate investment fund that attracted the backing of Sir Alex Ferguson and is advised by Sir David Frost.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm $700bn US banking bailout gets Congress go-ahead$A week of tumult in Washington that spread panic throughout the world’s economies ended last night with the US House of Representatives passing the $700 billion rescue package amid emotional scenes on Capitol Hill.$Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm Virtual stage strikes chord with rock fansJudy McGrath, the chairman and chief executive of MTV Networks, remembers the first time that she saw one of the pretend guitars that are used in the video game Guitar Hero. “I'm like, are you kidding me?” she recalled recently. McGrath, after all, is a pop culture maven who is on first-name terms with Bono (or whatever the equivalent is for someone who only goes by one name). Put another way, she helped to start MTV and probably has logged as many nights at real concerts and hanging with real rock stars as anyone.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm The race is on to revive GuestInvestThe founder of GuestInvest, the buy-to-let hotel operator that promised investors that they would “earn money while others sleep”, is trying to secure funding to buy the company back after its collapse into administration, The Times has learnt.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm Homeowners steer clear of equity release loansFearful homeowners have finally called a halt to a decade-long spree of cashing-in on the value of their properties to pay for big-ticket consumer spending and paying off debt, the Bank of England revealed yesterday.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm AIG launches asset sell-off to repay bailout loanAmerican International Group, the insurance giant bailed out this month with an emergency $85 billion ($£48 billion) government loan, announced plans on Friday to slim down operations dramatically while seeking new funds to repay its debts and return the group to profit.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm Need to know: TNK-BP resolves dispute ... Tata relocates ... Adili upEconomicsSource: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm Dutch Government buys Netherlands part of FortisThe break-up of Fortis began last night when the Dutch Government bought the Benelux financial group’s Netherlands operations in a €16.8 billion (£13 billion) rescue. Fortis is already partly state-owned after the governments of Holland, Belgium and Luxembourg each took a stake in it at the weekend at a cost of €11.2 billion.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm UBS cuts jobs in proprietary trading and commoditiesUBS will drop most of its commodities business and cut its involvement in proprietary trading, leaving a further 2,000 workers at the troubled bank jobless.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm British banks react angrily to poaching by Irish rivalsBritish bankers reacted furiously last night to Irish banks cold-calling their customers in an effort to poach their deposits after the controversial guarantee issued this week by Dublin. An estimated £400 billion of corporate deposits is sloshing around the British banking system and is regarded as vulnerable to attack from foreign banks.Source: Latest Business News from Times Online | 3 Oct 2008 | 11:00 pm GM closing Ohio SUV assembly plantRead full story for latest details.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 10:48 pm Congress passes bailout, focus shifts to fallout (Reuters)
Source: Yahoo! News: Business | 3 Oct 2008 | 10:43 pm Wells bids $15 billion for Wachovia; scuffles with Citi (Reuters)
Source: Yahoo! News: Business | 3 Oct 2008 | 10:42 pm The bailout: An owner's manualA taxpayer's guide to the economic rescue package.Congratulations. If you're an American taxpayer, you've just become the owner of a brand-new $700 billion attempted bailout of the U.S. financial system. After a 263-171 vote by the U.S. House of Representatives Friday, President Bush signed the legislation, aimed at rescuing the freezing credit markets in an effort to shore up the failing economy. Source: L.A. Times - Business | 3 Oct 2008 | 10:27 pm Congress sets stage for solar boomSource: Business and financial news - CNNMoney.com | 3 Oct 2008 | 10:26 pm September proves tough month for hedge fundsEven the savviest operators have been hit by ban on short selling and poor liquiditySource: FT.com - US homepage | 3 Oct 2008 | 10:15 pm Apple's stock hit by Web rumorApple shares fell sharply Friday morning after an erroneous Web report saying founder and CEO Steve Jobs had suffered a heart attack. Shares quickly recovered after it became clear the rumor was not true.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 10:09 pm VIX Index of U.S. Stock Option Prices Retreats 0.3% to 45.14Source: Bloomberg - All Podcasts | 3 Oct 2008 | 10:04 pm Fall in markets as bail-out is approvedThe US Congress passed the Bush administration's $700bn financial rescue package after a tense week on Capitol Hill, but stocks fell sharply afterwards amid continuing turmoil in the credit marketsSource: FT.com - US homepage | 3 Oct 2008 | 10:01 pm University of California's Navarro Says Global Recession LoomsSource: Bloomberg - All Podcasts | 3 Oct 2008 | 9:57 pm Bailout is lawAfter two weeks of contentious and often emotional debate, the federal government's far-reaching and historic plan to bail out the nation's financial system was signed into law by President Bush on Friday afternoon.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 9:52 pm Straight Story: Taking the long viewAfter a week of chaos, we finally have a bailout bill. Economics editor Chris Farrell sets the story straight on the implications of the rescue plan in the coming months and years.Source: Marketplace Money | 3 Oct 2008 | 9:19 pm The down payment assistance debateA popular measure aimed at helping prospective homebuyers make their down payment is no longer an option. Marketplace's Rachel Dornhelm reports on the efforts to restore down payment assistance programs.Source: Marketplace Money | 3 Oct 2008 | 9:19 pm Day in the Work Life: Financial plannerIn a shaky economic time, it's always nice to have a little help from an expert. On this week's Day in the Work Life, we meet Rick Zettlemoyer, a professional financial planner.Source: Marketplace Money | 3 Oct 2008 | 9:19 pm Mormons take care of their ownAs host Tess Vigeland hosts the show from Salt Lake City, we get a brief history of Mormons and their unique way of providing for one another in crisis from journalist and author Ken Verdoia.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm Getting PersonalChris Farrell and Tess Vigeland take questions on your protections against an ailing market, from PODs to SIPC, FDIC to NCUA.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm Putting investors on the couchIn all the chaos around the current crisis, it's hard to keep a level head. Host Tess Vigeland talks with Dr. Richard Peterson about the mind games the market plays with investors.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm Short- and long-term views of the crisisReporter Dan Bammes asks Utah residents how the financial crisis has affected them, and a few of our younger listeners weigh in on how the state of the economy has changed their investment strategy.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm After the bailoutEven though Congress has agreed on a revised bailout plan, Marketplace Senior Business Correspondent Bob Moon tells host Tess Vigeland that the economy isn't out of the woods yet.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm The view from Main StreetHost Tess Vigeland and reporter Amy Scott are on the road to see how the financial crisis is affecting people all over the country. Tess reports on how residents in Salt Lake City are weathering the storm.Source: Marketplace Money | 3 Oct 2008 | 9:18 pm California needs hard-to-get $7B loanRead full story for latest details.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 9:15 pm Stocks drop on economic concerns despite bailoutNEW YORK (Reuters) -Wall Street ended its worst week in seven years with another tumble on Friday on fears that the $700 billion financial rescue package may not unblock credit markets and stave off a U.S. recession.Source: Reuters: Business News | 3 Oct 2008 | 9:12 pm 8 Ways to Cut Your Grocery Bill (Deal of the Day)How to lessen the pain of skyrocketing food prices when buying groceries.Source: SmartMoney.com | 3 Oct 2008 | 9:07 pm Pelosi: Bailout bill just the beginningKai Ryssdal talks with House Speaker Nancy Pelosi about passage of the bailout bill. The congresswoman says plans are in the works to establish regulatory policies and other reforms.Source: Marketplace | 3 Oct 2008 | 9:03 pm The Best Binoculars (SmartMoney Magazine)We had an expert from Yellowstone help us pick the best pair of top-of-the-line binoculars.Source: SmartMoney.com | 3 Oct 2008 | 8:52 pm Carmakers ask EU for US-style loanEurope's carmakers are to ask the European Commission for a €40bn loan to develop environmentally-friendly vehicles and engines in response to a US move to support domestic manufacturersSource: FT.com - US homepage | 3 Oct 2008 | 8:49 pm Stocks Fall as Bailout PassesPresident Bush signed the revised rescue package into law, but traders turned anxious and bearish.Source: SmartMoney.com | 3 Oct 2008 | 8:46 pm ETFs Sell Off Despite Bailout Plan Passage (Daily ETF Wrap-Up)Congress finally passed a bailout plan. But exchange-traded funds sold off anyway.Source: SmartMoney.com | 3 Oct 2008 | 8:46 pm Stocks drop on economic concerns despite bailout (Reuters)
Source: Yahoo! News: Business | 3 Oct 2008 | 8:44 pm Justice Department Brings Google (GOOG) To Its Knees
The news also begs the question of whether Google will make a similar concession to EU antitrust authorities and those in Canada who are also looking over the arrangement with Yahoo!. The decision is only a modest blow to Google. Its piece of the Yahoo! advertising brokerage deal is likely to be an extremely small piece of its revenue going forward. For Yahoo! is is another matter. The partnership with Google was part of the portal company board's list of excuses for not selling out to Microsoft (MSFT). The news makes Carl Icahn, who traded board seats for laying off Yahoo! management, look like a fool. First, Redmond left the table, and now Google is essentially admitting that it may be blocked from acting as a Yahoo! sales agent. Yahoo! hit a five-year low this week. Expect that to get worse when the market reopens. Douglas A. McIntyre Source: 24/7 Wall St. | 3 Oct 2008 | 8:40 pm Blog: Is that all there is? Bailout in hand, markets want moreSource: L.A. Times - Business | 3 Oct 2008 | 8:33 pm Stocks droop as concerns lingerUS stocks end lower as investors take profits following the approval of a $700bn plan to rescue the US financial system.Source: BBC News | Business | World Edition | 3 Oct 2008 | 8:32 pm Lea Delaria Gets Back to Jazz Standards With New AlbumSource: Bloomberg - All Podcasts | 3 Oct 2008 | 8:31 pm On the Ball: Cashman on Yankees Future, Baseball PlayoffsSource: Bloomberg - All Podcasts | 3 Oct 2008 | 8:29 pm Insurance stocks bounce backBig life insurance stocks surged Friday morning, with MetLife and Hartford Financial Services leading the way after suffering steep losses Thursday.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 8:24 pm Bank IPO On Deck: First Savings Financial Group (FSFG)
This offering is actually the conversion of the bank from a mutual company to a public company. It expects closing to occur on Monday and to begin trading its common stock Tuesday. First Savings Financial Group will trade on NASDAQ under the ticker "FSFG". This is going to be a small offering with 2,432,042 shares of common stock. These shares were sold at $10.00 per share in the subscription and community offerings to certain depositors of the bank, bank employee stock ownership plan, and to the general public. Keefe, Bruyette & Woods, Inc. acted as financial adviser to First Savings Financial Group.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 8:19 pm Bacevich Says U.S. War on Terror Is `Deeply Flawed Idea'Source: Bloomberg - All Podcasts | 3 Oct 2008 | 8:15 pm Bouncing Back After Being Laid Off (Deal of the Day)How to handle a layoff and get yourself back into the work force.Source: SmartMoney.com | 3 Oct 2008 | 8:13 pm Most Powerful Women in BusinessSource: Business and financial news - CNNMoney.com | 3 Oct 2008 | 8:13 pm Oath in Florida to Support Obama-Biden Ticket: CommentarySource: Bloomberg - All Podcasts | 3 Oct 2008 | 8:00 pm The 52-Week Low Club 10/3/2008 (AAPL)(YRCW)(MGM)(LVS)(OMX)(FR)(IAR)
First Industrial Realty (FR) Cuts guidance and plunges to $18.32 from 52-week high of $42.71. Officemax (OMX) Office supply stocks hit by bad economy. Drops to $7.04 from 52-week high of $34.64. Las Vegas Sands (LVS) Analyst cuts price target. Sells down to $22.87 from 52-week high of $148.76. MGM Mirage (MGM) Trouble in Macau hurts most stocks in sector. And, who has money to gamble? Dips to $20.28 from 52-week high of $100.50. Yrc Worldwide (YRCW) Truck company borrows from credit line. Down to $7.44 from 52-week high of $28.83. Apple (AAPL) Rumors about Jobs health. Dips to $94.85 from 52-week high of $202.96. Douglas A. McIntyre Source: 24/7 Wall St. | 3 Oct 2008 | 7:51 pm Richard Branson will answer your questionsSource: Business and financial news - CNNMoney.com | 3 Oct 2008 | 7:36 pm House of Representatives approves bailout planUS President George Bush has wasted no time in signing into law the US$700 billion dollar rescue plan for the financial sector, saying the bailout will prevent the crisis on Wall Street from widening. The US House of Representatives...Source: New Zealand Herald - Business | 3 Oct 2008 | 7:20 pm Oil drifts down after House voteCrude prices didn't move much on Friday after the House of Representatives passed a bailout plan to shore up the nation's financial system, which could help restore demand for oil.Source: Business and financial news - CNNMoney.com | 3 Oct 2008 | 7:01 pm Global Bond Funds Add Diversity, Cut Risk (Ticked Off)Global bond funds can diversify portfolios, decrease fixed-income risk.Source: SmartMoney.com | 3 Oct 2008 | 6:50 pm Warren Buffett Comments on Bailout & Bank Merger Fight (BRK-A, C, WB, WFC)
On the current fight between Citigroup Inc. (NYSE: C) and Wells Fargo (NYSE: WFC) over the buyout of Wachovia Corp. (NYSE: WB), Buffett said the Wells Fargo offer is a better deal for Wachovia holders. Buffett also commented the he only owns two stocks personally in his own account:
We'll see what the total bailout package does. Here is our own take on the bailout package which was just passed and is about to be signed into law.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 6:50 pm Declining economy could force Fed to actFriday's report of a 159,000 decline in non-farm jobs in September reinforces mounting evidence of a rapid deterioration in the US economy that could force the Federal Reserve to resume cutting interest rates.Source: FT.com - US homepage | 3 Oct 2008 | 6:30 pm 18 Funds Offering Consistent Returns (Fund Screen)Tired of your ping-ponging portfolio? These funds are known for consistent returns.Source: SmartMoney.com | 3 Oct 2008 | 5:38 pm Wells Fargo's Wachovia Offer, Jobs Report, Auto Sales DownSource: Bloomberg - All Podcasts | 3 Oct 2008 | 5:34 pm Start BailingWith the bang of a gavel on the House side of Capitol Hill on Friday, the TARP was born.The Troubled Asset Relief Program, which is otherwise known as the $700 billion financial bailout bill, still needs a signature from President Bush, but that's just a formality at this point. (Update: He signed.) The House of Representatives approved the controversial legislation in a 263 to 171 vote. This was the House's second vote on this bill in just a week. After it defeated a slimmer version of the legislation on Monday, the Dow Jones industrials suffered their biggest point drop in history. An amended bill easily passed in the Senate on Wednesday night, which stepped up pressure on the House to find the votes needed to pass it. Today's vote marks the end of what has seemed like a long journey for the bill, but it was really a very short time period for such a massive legislation to make its way through the system. The bill authorizes the Treasury secretary to spend as much as $700 billion for buying up the illiquid assets on the balance sheets of many U.S. financial institutions. Details of precisely how the buyouts will be executed and by whom have yet to be worked out. Skeptics of the bill warned that the plan was flawed from the start, but the frozen credit markets forced legislators into action now instead of waiting until after the election. (For more on the pros and cons of the bailout, see this interactive) While the passage of this bill is certainly a good start to unclogging the credit markets, it's obvious it will be no quick fix. Indeed, the stock market seemed to reflect that observation as well. After surging nearly 300 points while the vote was underway, the Dow pared back its gained after the vote ended. As unhappy as investors were when the bill failed on Monday, they should be positively gleeful with the news that it passed today. That they aren't is just another example of the general sense of anxiety in the economy today. Related Links Six Paths to (Possible) Bailout Success Let Boehner Write It, or Have the Fed Go Solo Incentives for Inflation Source: Portfolio.com: Top 5 | 3 Oct 2008 | 5:30 pm Financial Crisis 101: CDOs explainedInvestment instruments known as collateralized debt obligations are partially to blame for the mortgage crisis. They're complicated and hard to explain, but Rico Gagliano gives it a try with help from Marketplace Senior Editor Paddy Hirsch.Source: Marketplace | 3 Oct 2008 | 5:27 pm Dutch government takes over Fortis unitsThe Dutch government agreed to take over the banking and insurance activities of the troubled financial services company in a €16.8bn deal that amounts to a break-up of the cross-border groupSource: FT.com - US homepage | 3 Oct 2008 | 5:26 pm $700B Bailout Passage Keeps The Hangman Away, For Now This bill may not be enough and it may already be too late. Those two issues are already believed by many people. At some point we all have to be responsible for our actions and it is important to have a plan that is not reliant on Uncle Sam. Wilbur Ross predicted 1,000 bank failures. Warren Buffett said we are at the edge of the abyss of something "terrible, terrible, terrible." Bill Gross and Jeff Immelt have already shown how the access to the capital markets has been altered greatly. Triple-AAA rated debt issuers have now been forced to pay 300 to 400 basis points higher than treasuries and junk bond issuers are forced to pay rates that look like loan shark usury rates. The worst case may have been taken out. But there are still very cautious times ahead for the near future and the new president is going to be walking into very difficult times. The timing in which this TARP bailout package was approved is amazing. The Patriot Act took roughly six weeks to pass into law after September 11 as it was signed into law by President Bush on October 26, 2001. This will have taken less than three weeks from start to finish to pass. This bailout package may help banks start lending to each other. It might not. It is our belief that the FDIC insurance limit should have been taken up to $500,000 rather than the new $250,000 limit. One thing is for sure, that $100,000 limit was very old and had not been updated in most of our lifetimes. The banks are still going to be very cautious in lending to customers. If you are still financially leveraged at this point then it isn't going to be a smooth road ahead. There are still many bank mergers coming that will prevent failures where the strong will get to pick up the weak for pennies. There are also going to be more bank failures and there is likely to be more turbulence. But this bailout passage will at least help some. How this plays out is yet unknown. As we said, this chapter is not finished in the history books. The process and the levels at which these mortgage derivative securities is yet to be an assured outcome. It may turn out that the banks cannot afford to sell the assets at even an inflated value into this buyout pool. It may turn out that the amount the banks want to sell back to Uncle Sam is so great that the package cannot handle the total problem. We calculated the cost of $700 billion on a "per tax filer basis" and it is going to be heaped on the nation's debt pile for us and for generations to come. We can hope and pray that this package is enough, but experience should bring the reminder that hoping and praying are very poor core investment strategies. Stay tuned. You know we will.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 5:24 pm Rice Says U.S.-Syria Relations Have `Long Way to Go'Source: Bloomberg - All Podcasts | 3 Oct 2008 | 5:22 pm Netherlands to buy Fortis assetsThe Netherlands takes control of the Dutch operations of ailing financial giant Fortis in a deal worth 16.8bn euros.Source: BBC News | Business | World Edition | 3 Oct 2008 | 5:20 pm Bailout anger cooling among AmericansMarketplace Money Host Tess Vigeland and New York City Bureau Chief Amy Scott give Kai Ryssdal an update from their cross-country trips to see how Americans are doing in our "Road to Ruin?" series.Source: Marketplace | 3 Oct 2008 | 5:07 pm This week: Adventures of a bailout planThe Senate tinkered with the bailout plan, then passed it. And, lo and behold, the House passed it too. Meanwhile, the Dow took a dizzying fall. Kai Ryssdal takes a look at a week that could best be summed up as a real doozy.Source: Marketplace | 3 Oct 2008 | 5:06 pm Suitors joust to rescue WachoviaWachovia has billions of dollars in toxic mortgage debt, which Wells Fargo wants to buy. But Citigroup says it has first dibs, and Warren Buffet also wants to join the party. Janet Babin sorts it all out.Source: Marketplace | 3 Oct 2008 | 5:06 pm What's next for the bailout plan?With the financial bailout plan approved, Treasury Secretary Henry Paulson wants the operation set up within weeks to instill confidence in the markets. Washington Bureau Chief John Dimsdale looks into what that entails.Source: Marketplace | 3 Oct 2008 | 5:05 pm Fonterra cuts dairy pricesIn response to a Herald report yesterday, Fonterra says it will drop prices of its dairy products, and managing director Peter McClure says shoppers will start to see lower prices before Christmas.Source: New Zealand Herald - Business | 3 Oct 2008 | 5:00 pm Irish bank governor defends guaranteesCentral bank will charge a commercial rate for access to package to appease Vrussels and LondonSource: FT.com - US homepage | 3 Oct 2008 | 4:52 pm London shares rally (AFP)
Source: Yahoo! News: Business | 3 Oct 2008 | 4:40 pm Paris scepticismUS help for Big 3 rattles the car industrySource: BBC News | Business | World Edition | 3 Oct 2008 | 4:25 pm Financial freezeHow the turmoil is threatening Iceland's currencySource: BBC News | Business | World Edition | 3 Oct 2008 | 4:13 pm Battle to buy Wachovia heats upThe US bank Wells Fargo is set to buy Wachovia in a $15.1bn deal, but its rival, scorned suitor Citigroup is objecting.Source: BBC News | Business | World Edition | 3 Oct 2008 | 4:09 pm Credit squeeze robs economy of its lifeblood"You're joking, aren't you?" mutters businessman Ben Ridler, when the Business Herald asks if small to medium-sized enterprises (SMEs) have been finding it tough to get funds out of their banks lately. Ridler runs The Results Group,...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Banks not rationing credit yet, says ANZNew Zealand's largest bank, ANZ National, says international turmoil and the rising cost of increasingly scarce international funding has not yet forced it to begin rationing credit to homebuyers and businesses. Chief executive...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Brian Gaynor : Reaction to Super Fund loss overblownThe negative reaction to the New Zealand Superannuation Fund's June 2008 year results tells us more about public perceptions than the fund's performance. The disapproving response indicates that we are not used to dealing with...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Bailout fear sends NZ shares spinningNew Zealand stocks plunged back into the red yesterday following another overnight drop in the US prompted by negative economic data, worsening credit conditions and nervousness over today's US$700 billion bailout vote. The NZX-50...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm 30 lose jobs in Pumpkin Patch trimA difficult retail environment has forced children's clothing company Pumpkin Patch to slash 30 jobs at its Auckland head office. The company said yesterday that it was making 30 of its 400 staff redundant - the largest number...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Auckland Airport hopeful $130m bond offering will take offAuckland International Airport is considering a public offering of bonds to raise up to $130 million. Amidst a global credit crunch and a less than stellar local economy, the company yesterday said it was proposing an issue of...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Maybe now the price of a Martini won't leave us shakenMaybe now the city will be just a little more affordable. That's what more than a few New Yorkers not employed in finance are thinking somewhere way in the back of their cluttered minds, between "pick up dry cleaning" and "what's...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm PGG works to save meat industry dealThe meat industry is still waiting to see if rural services business PGG Wrightson can save its plan to buy half of meat processor co-operative Silver Fern Farms. The Weekend Herald understands talks are now likely to continue...Source: New Zealand Herald - Business | 3 Oct 2008 | 4:00 pm Teck Cominco to Get New Name, New Business Units (TCK, FDG, BHP, BTU)Canadian miner Teck Cominco (NYSE:TCK) is changing its name to Teck Resources, and the company intends to build its brand just on the name Teck. The new name takes effect legally in April 2009. In addition, Teck is restructuring its business into five separate units: copper, zinc, coal, gold, and energy. Last July, Teck agreed to acquire Fording Canadian Coal Trust (NYSE:FDG) for an estimated $13-$14 billion, of which Teck is borrowing $9.8 billion. The most significant piece of the deal is Fording's 60% interest in the Elk Valley metallurgical coal operation, the world's second largest producer of hard coking coal for export. Teck already owned a 40% interest in Elk Valley and was the mine operator. The Canadian government approved the deal earlier this week, and the takeover is set to take effect on October 29th. Coking coal is used to manufacture steel, and its price has risen significantly in the past year. Fording exports its coal primarily to Asian and European markets, and Teck expects the acquisition to add to its bottom line immediately. It had better. Teck's share price is within pennies of its 52-week low, down more than 50% from a year ago. Competitors BHP Billiton (NYSE:BHP) and Peabody (NYSE:BTU) are also down, but by significantly less. Fording's share price has been up about 100% in the past year, so if Teck can execute to its plan it should see its share price begin to turn back upward. A couple of analysts were not impressed. BMO Capital Markets cut Teck's rating to 'underperform' and set a price target of C$30/share, 50% lower than its earlier target. The high cost of operations in Teck's Fort Hills oil sands project is also weighing on the share price. Taking on nearly $10 billion in new debt and issuing new shares to pay for a huge acquisition is not a recipe for warm feelings from analysts and traders. And while Teck's timing could have been better, this could be a really good deal for the company if it can bring up the rest of its operations to match the expected results from Fording.
Paul Ausick Source: 24/7 Wall St. | 3 Oct 2008 | 3:48 pm Tata abandons cheapest car plantTata Motors abandons plans to build the world's cheapest car in the Indian state of West Bengal following a row over land.Source: BBC News | Business | World Edition | 3 Oct 2008 | 3:45 pm Bailout Will Slowly Rebuild Confidence in Markets (Ahead of the Curve)It's time for the much-improved government bailout plan to be put into action.Source: SmartMoney.com | 3 Oct 2008 | 3:41 pm Past lessonsHas bailing out failing industries worked in the past?Source: BBC News | Business | World Edition | 3 Oct 2008 | 3:08 pm Citi Cries Out Demands To Wachovia, Ramifications Are Game Changing (C, WB, WFC)
Citi further says that Wells Fargo's conduct constitutes tortuous interference with the existing exclusivity agreement. That stated Wachovia was not to enter into any transaction with any party other than Citi, and would not participate in any discussions or negotiations with any third party. Citi says that the exclusivity agreement also provides that the parties would be irreparably harmed by any breach of the agreement. What is interesting is that this statement states that the value of the Citi agreement to Wachovia shareholders was substantially in excess of Wachovia's closing price on Thursday, and that Citi has also been providing liquidity support to Wachovia Bank since Monday's announcement. Citi is demanding that Wachovia and Wells Fargo not proceed with any proposed transaction. Citi did not update the status of its $10 billion offering that has not yet come to market but said that it has strong liquidity, total deposits exceeding $800 billion and a Tier 1 capital ratio of 8.7% as of the second quarter. We would make some key observations here and note that this will become a legal mess. They can scream "bloody murder" all they want, but the winner here should be based on what is best for shareholders and for taxpayers. This morning we pondered whether the FDIC would get involved and also whether Citi would make legal claims. It now seems that both are likely. But what is not certain is the outcome. The Wells Fargo deal is not government sponsored and therefore does not come out of the taxpayer till as long as no future implosions come from it. The FDIC was going to share in Citi's losses after the hurdle was hit. Wells Fargo is offering to do this on a standalone basis with no help from Uncle Sam. Citi is also considered a troubled institution even if the government has included it as "being in the club" of banks that will survive. The biggest impact is for common stock holders. The common holders were going to get a shell of the asset management assets with Evergreen and A.G. Edwards in the common stock while Citi was getting to essentially take the deposits and banking assets. The Wells Fargo deal is for the entire company and it appears that all holders of common stock, preferred shares, and debt will now come under the Wells Fargo flag. So, they can sell now and lock in or they can stay on as Wells Fargo shareholders rather than as a standalone Wachovia shell holders. The outcome on this one is not going to come easily. Not by a long shot. You can be assured that this will become core case study material for capstone classes in universities. This truly is proof of those "government-mandated mergers" we discussed earlier this year. Now the private sector is saying, "Not so fast!" to the government. This will also bring up the debate about whether the government can seize or do a private sector joint venture to seize what belongs to shareholders without notice. Hold on to you chair here, this is going to be a long ride.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 3:02 pm Tata to move car plant from West BengalThe Indian group is withdrawing its ground-breaking low-cost Nano car project from the state of West Bengal, after more than a month of violent protests by local farmers brought construction to a haltSource: FT.com - US homepage | 3 Oct 2008 | 2:39 pm How to Save $150,000 (And Still Have a Life) (SmartMoney Magazine)Here's a game plan for saving like the dickens without living like Scrouge.Source: SmartMoney.com | 3 Oct 2008 | 2:34 pm Yours Truly, the GovernatorIn an unprecedented move, California governor Arnold Schwarzenegger has communicated to Treasury Secretary Henry Paulson that the state may need $7 billion in emergency funding from the federal government in order to pay its bills. The real letter is here. Our translation is here: The Honorable Henry M. Paulson Jr. Incentives for Inflation Fed's Yellen: Interest Rates Not 'Excessively Stimulatory' The Downside Source: Portfolio.com: Top 5 | 3 Oct 2008 | 2:30 pm Citigroup (C): Vikram Pandit Continues To Play The Fool
Today, Pandit lost out on his purchase of Wachovia (WB). While he was busy elsewhere, Wells Fargo (WFC) stepped in and robbed him. As Reuters says, "Pandit, who hailed from the investment banking side of the business, firmly put his stamp on Citi's retail side by taking on stricken Wachovia Corp's banking assets and sharing the risk with the Federal Deposit Insurance Corporation." In a matter of days, and after Citi's stock popped up, the deal was gone. The FDIC may try to undo the Well Fargo deal, but that is far from certain. Today, Citi is trading down over 12% to $19.62. Pandit has made a habit of disappointing investors. According to the FT, in April Pandit, "vowed to slash the beleaguered financial group's cost base by up to 20 percent." So far, the cost-cutting program has not worked out. People expected that Pandit would reshape the bank. He might have sold off the retail brokerage division, Smith Barney, to raise capital. Or, he could have put the bank's international banking branches up for auction. That did not happen either. Since the beginning of the year, Citi is down more than 20%. JP Morgan (JPM) is up more than 10% and Bank of America (BAC) is off slightly. Is it any wonder? Most of what Pandit has done has hurt the bank and now his only major decision has turned out badly. Douglas A. McIntyre Source: 24/7 Wall St. | 3 Oct 2008 | 2:18 pm ISM Service Economy Holding Positive, Barely
INDEX SEP AUG Change In construction, business activity stayed steady over the last month. In retail, conditions were listed as "still not good, but there are signs of improvement." In information, "Continue to see a retrenchment in expenses as we continually adjust expectations downward." Transport and warehousing was noted as "Business is good," In public administration, "Public sector facing continued financial and revenue pressures. Most all capital expenditures are being deferred. Orders for routine supplies are reviewed for savings opportunities." The good news here is that services are not crashing as we saw in yesterday's manufacturing numbers. The employment situation is bad too, but we already knew that from weekly jobless claims and from unemployment this morning.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 2:16 pm Something Good Is Brewing at Starbucks (Today From Barron's)Starbucks aims to get its buzz back -- and its stock up -- with new products.Source: SmartMoney.com | 3 Oct 2008 | 2:05 pm Did General Growth Just Save Itself? (GGP)
CFO Bernard Freibaum is out effective immediately and will be replaced by Edmund Hoyt on an interim basis while a search for a permanent replacement is conducted. Hoyt has been the chief accounting officer since 2000. Due to the current uncertainty and volatility in the capital markets, the company has suspended its dividend. If it had maintained that payout, shareholders would have been clipping a 13% yield at yesterday's closing price. Yesterday's sell-off came from reports out of the Wall Street Journal showing that between Sept. 23 to Sept. 25, Freibaum had unloaded 1.6 million shares to take home more than $28 million. General Growth noted that Freibaum had sold about 2.95 million shares yesterday to cover margin calls. He still owns roughly 1.3 million shares of General Growth Properties stock and he has roughly $3.4 million of margin debt outstanding. We had previously featured this company as one of the troubled REIT's facing hurdles in the tight capital markets and contracting economy. Shares are indicated up more than 30% at $10.49 right before the open. After yesterday's tanking stock price its 52-week trading range is now $7.08 to $57.84.
Jon C. Ogg Source: 24/7 Wall St. | 3 Oct 2008 | 1:26 pm Looking DownThe financial crisis has put the world "on the edge of the abyss," the prime minister of France says.If that is the case, then the U.S. is in the very front of the pack, looking down from the lip. Today's employment report is just the latest sign of the impact that the credit crunch is having on all kinds of American businesses. Employers cut 159,000 jobs in September, the deepest loss since March 2003. So far this year, 760,000 jobs have been lost, the Labor Department says. "The financial panic is a body blow to business confidence, and companies are now battening down the hatches," Mark Zandi, chief economist at Moody's Economy.com, told Bloomberg News before the release of today's report. "We're in store for very sizable job losses across many industries." The unemployment rate was unchanged at 6.1 percent. While the decline in payrolls was higher than some forecasts, U.S. stock-index futures rose on relief that the numbers were not much, much worse. The Labor Department said that hurricanes in the Gulf last month did not have a substantial impact on the data. And the job losses were broad based, affecting nearly every sector of the economy. The service sector lost 82,000 jobs in September, the fourth consecutive monthly decline. Manufacturing jobs declined by 51,000. Construction lost 35,000 jobs. The jobs data are heightening expectations that the Federal Reserve will cut its benchmark interest rate to below 2 percent when its meets this month. The report will also be cited by supporters of a House bill to enable the Treasury to buy as much as $700 billion of troubled mortgage assets. The financial crisis has long spread from beyond Wall Street to every other industry. As a result, the employment reports for October and November will almost certainly be uglier than September's. The outlook is bleak, and the humor is black. As Jon Ogg says on 24/7 Wall Street: "What kind of bread do they offer in those free breadlines?" Related Links Summer's Over. So's Your Job. Not a Bad Job The Slo-Mo Recession Source: Portfolio.com: Top 5 | 3 Oct 2008 | 1:00 pm Family Dollar profit tops estimates (Reuters)Reuters - Family Dollar Stores Inc posted a higher-than-expected quarterly profit on Friday, helped by shoppers who spent tax rebate checks at the discount retailer and by closely controlling costs.Source: Yahoo! News: Business | 3 Oct 2008 | 12:01 pm The Bank HeistWhat does Wells Fargo want? Wachovia, as it turns out. Citi, as one could guess, is not very happy, saying the deal "is in clear breach of an exclusivity agreement between Citi and Wachovia." "Citi has demanded that Wachovia and Wells Fargo terminate and not proceed with any proposed transaction." (Karen Donovan examines the core legal issue here and here. Megan Barnett notes the errant question mark on Citi's Web site here.) The Wells Fargo raid clearly took regulators by surprise. Felix Salmon contends that "Citi's best hope of derailing the Wells Fargo-Wachovia deal would be if Citi can persuade the regulators not to approve it" If the Wachovia deal survives any legal challenges from Citi, Wells Fargo will have confirmed its membership in the elite club of U.S. commercial banks. Because of the credit crunch, the balance of power in the U.S. financial system is now largely in the hands of four banks: Citigroup, Bank of America, J.P. Morgan, and Wells Fargo. (For a look at the banking behemoths, click here.) "J.P. Morgan's assumptions signal that Wells still could sustain substantial losses," Eavis says. What Does Wells Want? Citi Examines its Carrots and Sticks Worldwide Bank Clearance Sale Source: Portfolio.com: Top 5 | 3 Oct 2008 | 12:00 pm Toyota announces zero-percent financing (AP)AP - Toyota Motor Corp. has announced zero-percent financing on 11 models as it tries to woo would-be buyers sidelined by the consumer credit crunch.Source: Yahoo! News: Business | 3 Oct 2008 | 10:59 am Asian stocks fall on fear of U.S. slumpSINGAPORE — Asian markets fell today in the wake of another plunge on Wall Street amid doubts that Washington's bank bailout plan will prevent a recession in the U.S. and an economic slump around the world.Source: L.A. Times - Business | 3 Oct 2008 | 10:30 am
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