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Citigroup (C) Get Chance To Block Wachovia (WB) Takover
Wells Fargo (WFC) moved in under the cover of night and got Wachovia to agree to merge with it. Citi though it had a firm deal of its own with WB. Citi took at baby step toward derailing Well Fargo. According to the FT, "Citigroup Inc said it won a court order late on Saturday blocking Wells Fargo & Co. from buying hobbled U.S. bank Wachovia Corp until the court rules otherwise." Now, Citi can fiddle while Rome burns. Wachovia is extremely troubled, weighed down by toxic assets and mortgage loans. Before the offer from the New York bank to take it over, WB shares had fallen to under $2 from a 52-week high of $52.25. Both Citi and Wells Fargo risk watching their prey destroyed as they fight over ownership. Several large financial institutions from Fannie Mae (FNM) to Washington Mutual have already fallen and been auctioned off or nationalized. Wachovia appeared to be the next company on that list. If the court fight goes on long enough, the value of Wachovia could be severely damaged and the winner of the battle will be left with less than it bargained for. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Oct 2008 | 1:02 pm NewsWatch: Citi gets court order blocking Wells-Wachovia dealCitigroup said late on Saturday that a New York court issued an order extending its agreement under which it has exclusive rights to negotiate a purchase of Wachovia Corp.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 1:00 pm Citi: Judge blocks Wachovia-Wells dealA New York State judge has temporarily blocked the merger of Wachovia with Wells Fargo, according to a news release by Citigroup - which is trying to buy Wachovia itself.Source: Business and financial news - CNNMoney.com | 5 Oct 2008 | 12:53 pm Belgian PM talking to private groups on FortisBRUSSELS (Reuters) - Belgium and Luxembourg are talking to several private groups about the future of troubled financial group Fortis and will send a signal before markets open on Monday, Belgian Prime Minister Yves Leterme said on Sunday.Source: Reuters: Business News | 5 Oct 2008 | 12:51 pm Bold Assertion: JP Morgan (JPM) Destroyed Lehman
The most recent candidate is JP Morgan (JPM). Several Lehman customers say the big NY bank pushed Lehman off the edge. According to The Times of London, "The giant American bank is alleged to have frozen $17 billion (£9.6 billion) of cash and securities belonging to Lehman on the Friday night before its failure." JP Morgan may have locked up the assets because of money Lehman owed it. Whether its methods were legal or not will take some time to decide. Lehman's failure has destroyed a number of hedge funds and cost banks and brokerage firms billions of dollars. They had money with Lehman and that was lost when the firm failed. JPM may never be found guilty of doing anything wrong. But, Lehman investors and customer will never sleep without an answer as to what triggered the demise. Even if they cannot solve the problem in the courts, they hope that through a morality play they can create an ethically liable party. In the end, it is hard to see how that brings anyone comfort. Douglas A. McIntyre Source: 24/7 Wall St. | 5 Oct 2008 | 12:39 pm Amazon plans new version of Kindle e-book reader: WebsiteAmazon.com Inc. is planning a new version of its Kindle electronic-book reader, including a number of improvements over the original, according to Boygeniusreport.com.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 12:19 pm German lender tests Europe's bank stability vowBERLIN/LONDON (Reuters) - Germany struggled on Sunday to rescue lender Hypo Real Estate, underlining the challenge facing European leaders who vowed to restore stability to a banking system hit by the worst crisis since the 1930s.Source: Reuters: Business News | 5 Oct 2008 | 12:00 pm Crisis talks to save German bankGerman ministers meet officials from the central bank and the financial regulator to try to save troubled lender Hypo Real Estate.Source: BBC News | Business | World Edition | 5 Oct 2008 | 11:51 am German officials meet to seek Hypo Real rescueBERLIN (Reuters) - Officials from the German government, central bank and financial regulator met on Sunday in an effort to save lender Hypo Real Estate after a Berlin-brokered deal to rescue the imperiled bank unraveled.Source: Reuters: Business News | 5 Oct 2008 | 11:08 am German officials meet to seek Hypo Real rescue (Reuters)
Source: Yahoo! News: Business | 5 Oct 2008 | 11:08 am German officials meet to seek Hypo Real rescueBERLIN (Reuters) - Officials from the German government, central bank and financial regulator met on Sunday in an effort to save lender Hypo Real Estate after a Berlin-brokered deal to...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 11:08 am German bank rescue failure clouds European united frontGermany weighed the fallout Sunday from the failure of the country's biggest financial rescue in history, after Europe's top four economic powers pledged a coordinated approach to the...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 10:34 am Merkel to make statement on Hypo Real: government sourceBERLIN (Reuters) - German Chancellor Angela Merkel will make a statement on the financial crisis and the plight of lender Hypo Real Estate on Sunday afternoon, a government source said.Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 10:26 am Merkel to make statement on Hypo Real: government sourceBERLIN (Reuters) - German Chancellor Angela Merkel will make a statement on the financial crisis and the plight of lender Hypo Real Estate on Sunday afternoon, a government source said.Source: Reuters: Business News | 5 Oct 2008 | 10:26 am Citi gets court order blocking Wells-Wachovia dealCitigroup said late on Saturday that a New York court issued an order extending its agreement under which it has exclusive rights to negotiate a purchase of Wachovia Corp.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 10:07 am Honeywell sees 2009 as 6th year of higher new-business-jet salesHoneywell’s aerospace division projects the business-jet industry’s sales of new planes will rise in 2009, marking what would be the sixth straight year of increases after the sector’s last slowdown.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 10:02 am Citi wins court order in battle for WachoviaCitigroup Inc said it won a court order blocking Wells Fargo & Co. from buying hobbled U.S. bank Wachovia Corp until the court rules otherwiseSource: FT.com - US homepage | 5 Oct 2008 | 9:52 am Germany's HRE says rescue collapsedHypo Real Estate was racing to find a way to save itself after the German property lender revealed the collapse of a previous rescue plan that could pose the biggest threat to Germany's financial system amid reports a consortium of banks had reassessed the bank's funding needsSource: FT.com - US homepage | 5 Oct 2008 | 9:07 am Citi wins court order in battle for Wachovia (Reuters)Reuters - Citigroup Inc said it won a court order late on Saturday blocking Wells Fargo & Co. from buying hobbled U.S. bank Wachovia Corp until the court rules otherwise.Source: Yahoo! News: Business | 5 Oct 2008 | 8:55 am Citi wins court order in battle for WachoviaNEW YORK (Reuters) - Citigroup Inc said it won a court order late on Saturday blocking Wells Fargo & Co. from buying hobbled U.S. bank Wachovia Corp until the court rules otherwise.Source: Reuters: Business News | 5 Oct 2008 | 8:55 am UAW affirms 4-year pact at Mitsubishi Motors' Normal, Ill., plantMitsubishi Motors North America and the United Auto Workers said on Saturday that the union’s members at the Normal, Ill., plant ratified a new four-year accord.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 8:47 am UBS chairman to earn less than $8.8 million: reportZURICH (Reuters) - UBS AG's chairman, Peter Kurer, will earn less than 10 million Swiss francs ($8.83 million) this year, he told Swiss newspaper Sonntag on Sunday.Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 8:31 am UBS chairman to earn less than $8.8 million: reportZURICH (Reuters) - UBS AG's chairman, Peter Kurer, will earn less than 10 million Swiss francs ($8.83 million) this year, he told Swiss newspaper Sonntag on Sunday.Source: Reuters: Business News | 5 Oct 2008 | 8:31 am SEC charges 5 L.A.-area brokers over subprime-mortgage fundingsThe Securities and Exchange Commission charged that five Los Angeles-area brokers “put their customers at risk by refinancing their homes with subprime mortgages that they could not afford.”Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 8:28 am Up from apartheid, Soweto millionaire a role modelWhen Richard Maponya did well as a clothes salesman, his white boss could not promote him under the rules of apartheid. So the boss offered instead to sell Maponya damaged clothes for...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 8:00 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 Chew on prices, coverage when considering pet insuranceYour bank account and level of attachment to your pet are key factors when pondering whether insurance is worth it.Justin and Brandy Besemer were newly married and trying to pay off their wedding debt when they decided their family needed a dog -- an American Bulldog named Kaila. 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 to improve your credit score without carrying a debtDear Liz: Last I looked I had a credit score of 680. I think it should be better as I haven't even missed a payment in well over seven years.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. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am Chew on prices, coverage when considering pet insuranceYour bank account and level of attachment to your pet are key factors when pondering whether insurance is worth it. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am How to improve your credit score without carrying a debtDear Liz: Last I looked I had a credit score of 680. I think it should be better as I haven't even missed a payment in well over seven years.Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am Money scams don't slow down in bad economic timesThe offers -- We'll repair your credit! We'll help you avoid foreclosure! Work from home! -- can seem promising to folks seeking relief. Be wary of such claims, particularly if there's an upfront fee...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am Disney park visitors to get free birthday admissionENTERTAINMENT Free birthday admission to Disney parksSource: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am Money scams don't slow down in bad economic timesThe offers -- We'll repair your credit! We'll help you avoid foreclosure! Work from home! -- can seem promising to folks seeking relief. Be wary of such claims, particularly if there's an upfront fee.Bad economic times can be boom times for scammers. Source: L.A. Times - Business | 5 Oct 2008 | 7:00 am $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 $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...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am FHA: Understaffed, underfunded and overwhelmed?-- In the current credit squeeze, if you have less than a 20% down payment, there's pretty much only one major source of mortgage financing available: FHA, the Depression-era home loan insurance agency that still offers 3% down, 30-year fixed-rate mortgages, even on jumbo loans.Source: L.A. Times - Business | 5 Oct 2008 | 7:00 am FHA: Understaffed, underfunded and overwhelmed?-- In the current credit squeeze, if you have less than a 20% down payment, there's pretty much only one major source of mortgage financing available: FHA, the Depression-era home loan insurance agency...Source: Infocious RSS raw feed - channel BNPaperBusiness | 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. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 7:00 am Wells Fargo-Wachovia deal on hold, Citigroup saysNEW YORK — The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, Citigroup announced in a news release.Source: L.A. Times - Business | 5 Oct 2008 | 6:02 am Citi: Wells Fargo blocked from buying WachoviaThe fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, Citigroup announced in a news release. State Supreme...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 5:39 am Singapore GIC's key man sees opportunities in gloomSINGAPORE (Reuters) - When Tony Tan, executive director of Singapore's biggest sovereign wealth fund, warned in July the world might plunge into its worst recession in 30 years, many shrugged off his remarks as too gloomy.Source: Reuters: Business News | 5 Oct 2008 | 5:25 am Singapore GIC's key man sees opportunities in gloomSINGAPORE (Reuters) - When Tony Tan, executive director of Singapore's biggest sovereign wealth fund, warned in July the world might plunge into its worst recession in 30 years, many...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 5:25 am Vietnam economy back from brink, global crisis spells new worriesVietnam's economy, which started overheating months ago, has begun to stabilise, but experts warn the government must stay the course as the global financial system is plunged into crisis.Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 4:45 am Will $700 billion bailout unfreeze credit markets?Getting the financial rescue through Congress may have been the easy part. Getting it to work may prove the tougher task. After two weeks of anguishing debate, Congress passed and...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 4:41 am Judge blocks Wells Fargo from acquiring WachoviaA New York judge has temporarily blocked Wells Fargo from acquiring Wachovia. Citigroup says in a news release that state Supreme Court Justice Charles Ramos issued the order late...Source: Infocious RSS raw feed - channel BNewsBusiness | 5 Oct 2008 | 4:39 am Economic Preview: Bernanke, trade data, pending homes sales on tapCongress has thrown a lifeline to the drowning markets, but that doesn't mean the economy is on dry land.Source: MarketWatch.com - Top Stories | 5 Oct 2008 | 4:01 am European Leaders Vow to Fight Financial CrisisDespite their pledge, the leaders of Europes largest economies failed to offer a systemwide answer to a credit crisis that has forced them to bail out several banks in just the past week.Source: Infocious RSS raw feed - channel BNPaperBusiness | 5 Oct 2008 | 12:18 am Boomtown of Dubai Feels Effects of Global CrisisAs recession looms in the West, cracks are appearing in the boom that has made Dubai a global byword for unfettered growth.Source: Infocious RSS raw feed - channel BNPaperBusiness | 4 Oct 2008 | 11:29 pm Peter Mandelson's banks warningINCOMING business secretary Peter Mandelson warned yesterday that the EU could be hit by a surge of “economic nationalism” after European governments enacted a series of unilateral moves to shore up their financial systems at the expense of other member states.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:06 pm Bet on Warren Buffett, not on slogansTHERE’S only one set of people that finance firms have thrown money at more willingly than subprime borrowers in recent years and that’s ad execs. And a fat lot of good it’s done them.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Bailout of German property lender Hypo Real Estate in doubtGERMANY’S second biggest commercial property lender was on the brink of collapse last night after a consortium of banks backed out of a €35 billion (£27 billion) bailout of the stricken lender.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Oiling the financial machineJohn Hole, a Hereford-based trader selling ceramic wall and floor tiles, has just received a letter from his bank telling him that the interest charge on his overdraft of £20,000 will go up three percentage points this month.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Interest rates to drop to 50-year lowInterest rates in Britain will drop to a new 50-year low in the coming months, economists say, as the Bank of England tries to head off a serious recession. The Bank’s monetary policy committee (MPC) is expected to start the process by cutting rates this week.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Iceland's Kaupthing seeks to calm fears on financesTHE biggest bank in Iceland, Kaupthing, last night mounted a strong defence of its financial position in the face of heightened fears over its future.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Time for a big, bold cut in interest ratesWriting about the economy these days is a bit like being in an HG Wells novel. Everything is compressed in time. The speed of events is dizzying. We are in an economic time machine.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm JP Morgan ‘brought down’ Lehman BrothersJP MORGAN has been accused by its Wall Street rivals of dealing the final hammer blow that forced Lehman Brothers into collapse in a sensational claim that threatens to spark a colossal legal battle.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Plea from chief of Renault and Nissan for EU car subsidiesCARLOS GHOSN, the chief of Renault and Nissan, has called for European governments to support their motor industry in the way that America has pledged $25 billion of soft loans to speed development of more fuel-efficient, low-emission vehicles.$Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm Frozen out by utility billsA THREE-MAN frozen-food business in Essex is facing insolvency after Npower, the energy utility, sent it a £38,580.30 electricity bill. Dennis Barbrook, owner of Rigby Frozen Foods in Maldon, said he was shocked when he received the letter from Npower in December.Source: Latest Business News from Times Online | 4 Oct 2008 | 11:00 pm European leaders vow to fight financial crisis (Reuters)
Source: Yahoo! News: Business | 4 Oct 2008 | 10:51 pm Honeywell sees '09 bizjet sales up, but peak loomsBOSTON (Reuters) - Worldwide business jet deliveries will rise 8 to 17 percent next year to what may be a peak as high fuel costs and global economic worries depress demand, according to a forecast by Honeywell International Inc released on Saturday.Source: Reuters: Business News | 4 Oct 2008 | 10:04 pm Honeywell sees '09 bizjet sales up, but peak looms (Reuters)Reuters - Worldwide business jet deliveries will rise 8 to 17 percent next year to what may be a peak as high fuel costs and global economic worries depress demand, according to a forecast by Honeywell International Inc released on Saturday.Source: Yahoo! News: Business | 4 Oct 2008 | 10:04 pm No banks bail-out fund for EuropeAn 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 | 9:02 pm NewsWatch: 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 | 9:00 pm EU leaders promise to support financial institutionsEuropean leaders pledge to continue bailing out financial institutions in their respective countries without a collective-government rescue fund, according to news reports.Source: MarketWatch.com - Top Stories | 4 Oct 2008 | 8:11 pm Belgium, Luxembourg scramble to sell Fortis (Reuters)
Source: Yahoo! News: Business | 4 Oct 2008 | 7:46 pm European car markers look for EU loan - reportEuropean automakers plan to ask the European Commission for a $55 billion loan in a request similar to their U.S. counterparts, according to Italy's Fiat SpA.Source: MarketWatch.com - Top Stories | 4 Oct 2008 | 6:52 pm No business rush to Irish banksThere has been no significant move on the part of UK businesses to transfer savings to Irish banks, a BBC poll suggests.Source: BBC News | Business | World Edition | 4 Oct 2008 | 4:51 pm Banks get tougher on home buyersProspective home buyers are battling with cautious banks to get home loans approved in the wake of the global credit crunch - and facing expensive rates for the privilege. Things have changed "out of all recognition" in the past...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Ferry driving islanders awayLow to middle-income earners could be driven off Waiheke Island unless the Fullers ferry route is opened up to fair competition or regulated as a monopoly, ferry users say. The cost of travelling from Waiheke to Auckland has increased...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Bailout points to more regulationSigned and sealed, the US$700 billion ($1 trillion) bailout now must be delivered. After 14 days, three votes and billions of dollars in stock market losses to get the financial rescue through Congress, the Government is rushing to...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm US plan helpful, but relief here months awayThe Wall St bailout will help ease the credit crunch, but relief for Kiwi homeowners and some businesses may be months away, say experts. Overnight on Friday, New Zealand time, US president George W Bush signed off a US$700 billion...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Bernard Hickey : Pray credit freeze thaws fastThese are nervous times for banks all around the globe as they try to refinance debt they owe to banks in other countries. The international inter-bank credit markets almost froze last week as banks stopped trusting each other. Reserve...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Top Tips: On what a business can do to avoid employment problemsWhat is the first thing to do when taking on new staff? The basis of a successful employment relationship is established by adhering to careful recruitment policies and not rushing. It is usually a matter of urgency because a...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Kerre Woodham: Credit where it's dueIt seems everyone has an opinion on how to fix the American economic crisis. Retired governors of the Federal Reserve are being wheeled out on to every US news channel to give their insight and projections. Former Wall St executives...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Martin Hawes: Stay Super cool through crisisSo the New Zealand Superannuation Fund has lost $880 million. This is the fund's first loss and the turmoil in the markets represents its first crisis. The fund looks after a huge amount of money (currently $14 billion) and is in...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Deborah Coddington: Reckless risks supersede fear of failureGreed is not good, but it's not the same as capitalism. Pure free-market capitalism exists only in Ayn Rand's novels, but according to some commentators, even our "mixed economies" (means of production both private and state-owned,...Source: New Zealand Herald - Business | 4 Oct 2008 | 4:00 pm Debbie Mayo-Smith: It's the little things that count and revenge is sweetYou have no business if you have no customers. And to customers it's often the little, inexpensive things that matter most. This simple truth was highlighted in the repercussions resulting from a fuss I made at my local Pak'N Save...Source: New Zealand Herald - Business | 4 Oct 2008 | 3:00 pm Steve Jobs rumor: What the SEC can do?Source: Business and financial news - CNNMoney.com | 4 Oct 2008 | 2:36 pm Anger over Tata car factory moveThousands in India's West Bengal state protest against the Tata group's decision to abandon plans to make cars there.Source: BBC News | Business | World Edition | 4 Oct 2008 | 1:34 pm SocGen solid, ready to look at acquisitions: CEOPARIS (Reuters) - French bank Societe Generale , hit by a massive rogue trading scandal this year, is solid and is ready to look at acquisitions, chief executive Frederic Oudea told Le Parisien newspaper.Source: Reuters: Business News | 4 Oct 2008 | 12:36 pm The Credit Markets Emasculated: Altria (MO) Delays Deal, Or Kills It
All of that makes Altria's (MO) decision to delay its buyout of UST (UST) more troubling. The credit markets have been mauled to the extent that the banks helping finance the deal have suggested it be delayed until early next year. The MO press release on the acquisition said "While Altria currently has fully committed financing to complete the transaction, Altria’s lenders advised that it would be preferable to close the transaction in 2009." That is double-talk for saying the banks wanted junk-bond rates to consummate the marriage of the two companies, an acknowledgment of how significantly access to credit has fallen in the last two weeks. The message in a bottle is that no deal, no matter how credit-worthy the firms involved may be, is going to get done over the next quarter. If matters do not improve, Wall St. can assume Altria will pay a break-up fee of $300 million and walk on UST sometime after the first of the year. The markets should have seen the announcement coming. The 10% coupon that GE (GE) and Goldman Sachs (GS) had to pay Warren Buffett for money was remarkable evidence of how expensive cash is for even iconic American firms. M&A died last week and the Altria announcement buried it. Douglas A. McIntyre Source: 24/7 Wall St. | 4 Oct 2008 | 12:18 pm
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