Keeping your home insured in a fire zone

Though many companies have dropped home coverage in the state, it's still obtainable -- you just have to make your home fire-safe, do a lot of legwork and pay high premiums. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Do you live in a fire zone? Consider buying flood insurance

Mudslides that damage or destroy buildings often follow blazes that denude hillsides, and that loss isn't covered by your homeowner's policy.

If you own a home in California, chances are you already have some type of fire insurance. But many people don't realize that it's flood insurance -- not fire insurance -- that protects them from the mudslides that often follow the state's wind-blown autumnal blazes.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Energized by solar solutions

The gig: President and chief executive of San Luis Obispo-based REC Solar, one of the nation's largest installers of solar photovoltaic systems. The company installs rooftop solar systems on homes and...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Tackling a mortgage meltdown of their own

A couple hope a bad real estate investment won't hinder college plans for their triplets. Michael and Esther Maston...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Do you live in a fire zone? Consider buying flood insurance

Mudslides that damage or destroy buildings often follow blazes that denude hillsides, and that loss isn't covered by your homeowner's policy. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Energized by solar solutions

The gig: President and chief executive of San Luis Obispo-based REC Solar, one of the nation's largest installers of solar photovoltaic systems. The company installs rooftop solar systems on homes and businesses in California, Arizona, Colorado, Hawaii, New Jersey and Oregon. The firm employs 350 people and continues to hire even amid the economic downturn. "We don't have robots up on the roof" laying panels, Laviziano said. "Solar is creating a lot of jobs."

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Keeping your home insured in a fire zone

Though many companies have dropped home coverage in the state, it's still obtainable -- you just have to make your home fire-safe, do a lot of legwork and pay high premiums.

It's the peak of what is now a year-round fire season. And throughout Southern California, homeowners in blaze-prone regions are having a hard time finding fire insurance. ¶ Tens of thousands of homes are in the region's brushy canyons, with still more under construction. The powerful blazes of the last few years have raised questions about whether people should be encouraged to live in such areas -- and insurance companies have begun to fight back, dropping some customers and raising prices for others. ¶ "The market is frightening, for sure," said Paul Cashman, a State Farm Insurance agent. "Some companies aren't writing any policies, some are not renewing in selected areas, and some will offer policies only on a place-by-place basis." ¶ Still, it is possible to insure most properties -- if you are willing to do a lot of legwork and pay high premiums.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Tackling a mortgage meltdown of their own

A couple hope a bad real estate investment won't hinder college plans for their triplets.

Michael and Esther Maston had hoped the fertility drugs would work, but they weren't ready for the news that they were going to have triplets: a boy and two girls.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Chrysler to axe 25% of staff across the globe

Chrysler, the troubled US carmaker, today admitted that it would cut up to 5,000 jobs as it struggles to cope with falling demand for its vehicles from cash-strapped consumers.
Source: Latest Business News from Times Online | 25 Oct 2008 | 3:09 pm

World leaders call for new rules for economy

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 25 Oct 2008 | 2:40 pm

Asia, Europe close ranks to ease financial crisis

BEIJING/LONDON (Reuters) - Asian and European leaders closed ranks on Saturday to try to bolster confidence among investors who fear that a global credit crunch has ushered in a deep and damaging world recession.

Source: Reuters: Business News | 25 Oct 2008 | 2:35 pm

Asia, Europe close ranks to ease financial crisis (Reuters)

Reuters - Asian and European leaders closed ranks on Saturday to try to bolster confidence among investors who fear that a global credit crunch has ushered in a deep and damaging world recession.

Source: Yahoo! News: Business | 25 Oct 2008 | 2:35 pm

Stocks end dismal week

Stocks slumped Friday, but managed to end off session lows, as Wall Street joined a worldwide market slump on bets that a recession is imminent - if not already under way.

Source: Business and financial news - CNNMoney.com | 25 Oct 2008 | 2:31 pm

Report: GE will cut costs as it braces for 2009

Source: Business and financial news - CNNMoney.com | 25 Oct 2008 | 2:21 pm

Radio Address by President Bush to the Nation

WASHINGTON, Oct. 25 /PRNewswire-USNewswire/ -- The following is a transcript of the weekly radio address by President Bush to the Nation: THE PRESIDENT: Good...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 2:06 pm

NewsWatch: Back to Bretton Woods as world leaders look for new system

Forget Davos. As world leaders attempt to pick up the pieces left by the most terrifying financial crisis since the Depression, it may be time for a New Hampshire mountain resort town to reclaim the spotlight.

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 1:00 pm

Gulf policymakers debate global credit crisis

Finance and economy ministers and central bankers from oil-rich Arab states in the Gulf met for emergency talks on Saturday to forge a common front to battle the global economic crisis.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 12:46 pm

Leaders urge world finance reform

Asian and European leaders called for a fundamental rethink of the global financial system at the end of a summit in Beijing.
Source: BBC News | Business | World Edition | 25 Oct 2008 | 12:03 pm

Personal Finance Daily: The week's 10 best Personal Finance stories: Oct. 20-24

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Oct. 20-24:

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 12:01 pm

Concrete, important decisions are possible in Washington: Barroso

European Commission President Jose Manuel Barroso told AFP Saturday it was possible to reach "concrete and important" decisions at a summit next month in Washington on the global financial...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 11:53 am

Gas prices fall again

Gasoline prices fell again, tumbling to the lowest price in a year, according to a daily survey of credit card swipes released Saturday.

Source: Business and financial news - CNNMoney.com | 25 Oct 2008 | 11:26 am

EU urges more telecoms competition, despite crisis

The European Commission Saturday urged greater competition in the union's telecommunications sector, rejecting calls from operators for a moratorium because of the global financial crisis.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 11:11 am

Asia, Europe reach consensus on financial crisis

Asian and European leaders said Saturday they have reached a broad consensus on ways to deal with the global financial meltdown and will present their views at a crisis summit next month in
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 11:07 am

Auto Review: 2009 Audi A4: A car designed to fit the driver

Every once in a while over the years you get a test car that just fits right. When you first crawl into it, you have the feeling that this car was made for you.

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 10:00 am

Saudi bourse sheds more than 9%

The Saudi stock market, the largest in the Arab world, opened trading on Saturday with a sharp drop of more than nine percent to its lowest point in four years. The Tawadul...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 9:55 am

The Shorts Get Out Of Banks And Into Tech (C)(WFC)(WB)(BAC)(MBI)(AIG)(INTC)(MSFT)(ORCL)(DELL)(QCOM)(SIRI)(F)

For the period ending October 15, short sellers got out of most banks and brokerage stocks. That is a shame for them. They could have made a killing this week.

The short interest in Citigroup (C) fell over 5% to 116.8 million shares. Probably due to its purchase by Wells Fargo (WFC) shares sold short in Wachovia (WB) dropped by 54% to 91 million. Short interest in Bank of America (BAC) dropped 14% to 94.1 million. Short interest in MBIA (MBI) fell 21% to 62 million.

The government bailout did not do much for AIG (AIG) is was the only big financial to see a sharp increase in share sold short, up up 11% to 93.7 million.

Short seller put their money into tech shares. Intel (INTC) saw its short interest up a fraction to 77.8 million.Shares short in Microsoft (MSFT) moved up 13% to 69.3 million. The short interest in Dell (DELL) moved up 18% to 40 million. Orcacle's (ORCL) short interest was up 8% to 32 million. Shares short in Qualcomm (QCOM) moved up 24% to 21.8 million.

To no one's surprise, shares short in Sirius (SIRI) jumped 17% to 232 million and the short interest in Ford (F) rose 8% to 295 million.

Data from NYSE and Nasdaq

Douglas A. McIntyre

Source: 24/7 Wall St. | 25 Oct 2008 | 9:52 am

China's Wen calls for more regulation of global financial system

China's Premier Wen Jiabao called Saturday for more regulation of the world's financial system, and for developed nations to take quick measures to stabilise their stock markets.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 9:51 am

German finance minister predicts crisis to last until end 2009

The financial crisis will last at least until late 2009 and it will take years for Germany to determine any costs of its rescue plan, its finance minister said in a interview to be...
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 9:04 am

KBC bank to seek 3.5bln euros state aid: report

Belgian bank KBC, whose shares have fallen heavily in recent weeks, is seeking 3.5 billion euros from the state to recapitalise before Monday, the daily Le Soir reported Saturday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 8:16 am

China, Vietnam seek sea border resolution "this year"

BEIJING, Oct 25 (Reuters) - China and Vietnam have agreed
Source: Infocious RSS raw feed - channel BNewsBusiness | 25 Oct 2008 | 8:08 am

OPEC plan to cut production fails to buoy oil prices

Some say the cartel's decision greases the slide in the market instead of applying the brakes. OPEC controls 40%...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

OPEC plan to cut production fails to buoy oil prices

Some say the cartel's decision greases the slide in the market instead of applying the brakes.

OPEC controls 40% of the world's oil production, but Friday the cartel was just one more hoarse voice on the trading floor, straining to be heard above the din of another day of steep stock market declines.

Source: L.A. Times - Business | 25 Oct 2008 | 7:00 am

New signs of global downturn drive flight from stocks

Losses in overseas indexes outdo the Dow's 312-point plunge. Investors' hopes again turn to Washington.

Investors who pushed the world's stock markets off another cliff Friday are increasingly convinced that a global recession is afoot despite unprecedented steps by governments to thaw frozen credit markets.

Source: L.A. Times - Business | 25 Oct 2008 | 7:00 am

Too late to sell? Clearly, many investors don't think so

Maybe you can relate to this, after seven calamitous weeks in the stock market.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

Guitar Hero World Tour video game to debut this weekend

When it hits stores Sunday, the new version of Guitar Hero could become a test of the game industry's ability to weather the economic storm. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

Chrysler slashing 5,000 jobs

The struggling automaker says it will cut 25% of its salaried workforce as talks continue over a possible sale or merger. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

Pension agency loses almost $5 billion on stocks

The Pension Benefit Guaranty Corp. loses 6% to 7% on its investment portfolio in the year ended Sept. 30. The...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

PNC Financial buying National City for $5.6 billion

NEW YORK -- PNC Financial Services Group Inc. said Friday it is acquiring National City Corp. for $5.58 billion, the first bank to use fresh investments from a federal bailout program to make an acquisition.

Source: L.A. Times - Business | 25 Oct 2008 | 7:00 am

Wall Street wives had the richer, now they're a bit poorer

Limiting spending -- and dreaming -- may take some getting used to.

Mona Mond had a plan -- and it didn't include Wall Street going haywire and giving up a three-bedroom house with a half-acre yard for a small apartment.

Source: L.A. Times - Business | 25 Oct 2008 | 7:00 am

Existing-home sales in the U.S. rise 5.5%

As foreclosures crowd the market, sales balloon to their highest level in a year. The median price in September is $191,600. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 25 Oct 2008 | 7:00 am

Robust Halloween sales are a treat for retailers

Consumers battered down by a weak economy, plunging stock market and rising unemployment rate set aside their worries and spend heartily on merchandise for the upcoming holiday.

Finally, some not-so-spooky news for retailers: With Halloween on a Friday, many consumers are putting aside recession worries and snapping up Batman Joker masks, Sarah Palin glasses and Hannah Montana wigs.

Source: L.A. Times - Business | 25 Oct 2008 | 7:00 am

GM/Chrysler talks intensify, Europe carmakers warn

DETROIT/PARIS (Reuters) - General Motors Corp intensified talks to acquire Chrysler LLC on Friday amid a worsening global auto downturn that forced deep cuts of salaried jobs at Chrysler and a warning from France's PSA Peugeot Citroen .

Source: Reuters: Business News | 25 Oct 2008 | 5:26 am

Market Snapshot: U.S. stocks search for bottom with Fed, GDP ahead

Stocks will start the coming week with weary investors hopeful that a wave of selling in markets around the world will either abate or reach a climax, while reports are expected to show the economy contracting for the first time since 2001.

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 4:01 am

Treasury mulls insurer aid program-sources

WASHINGTON (Reuters) - The U.S. Treasury Department is studying how it could give relief to insurance companies under a $700 billion financial services rescue package, two sources familiar with the deliberations said on Friday.

Source: Reuters: Business News | 25 Oct 2008 | 3:32 am

Banks getting capital, National City sold (Reuters)

Reuters - The U.S. government took further steps to prop up the U.S. banking system on Friday, starting to inject capital into a new group of banks, and helping to finance a $5.2 billion takeover of National City Corp by PNC Financial Services Group Inc .

Source: Yahoo! News: Business | 25 Oct 2008 | 2:56 am

Banks getting capital, National City sold

NEW YORK (Reuters) - The U.S. government took further steps to prop up the U.S. banking system on Friday, starting to inject capital into a new group of banks, and helping to finance a $5.2 billion takeover of National City Corp by PNC Financial Services Group Inc.

Source: Reuters: Business News | 25 Oct 2008 | 2:56 am

Wall Street drops on worries about deep slowdown

NEW YORK (Reuters) - Stocks dropped on Friday in a worldwide sell-off with investors cashing out of stocks as signs mounted that the global economic slowdown could be deeper than feared and the corporate profit outlook darkened.

Source: Reuters: Business News | 25 Oct 2008 | 1:49 am

U.S. changes plan on announcing cash infusions: source

WASHINGTON (Reuters) - The U.S. government will allow banks to be first to announce Treasury Department capital infusions, backtracking from a plan to announce a list of some 20 banks as early as Friday, according to a source familiar with the U.S. Treasury Department's plans.

Source: Reuters: Business News | 25 Oct 2008 | 12:56 am

U.S. changes plan on announcing cash infusions: source (Reuters)

Reuters - The U.S. government will allow banks to be first to announce Treasury Department capital infusions, backtracking from a plan to announce a list of some 20 banks as early as Friday, according to a source familiar with the U.S. Treasury Department's plans.

Source: Yahoo! News: Business | 25 Oct 2008 | 12:56 am

Citadel seeks to end talk of liquidations

BOSTON/NEW YORK (Reuters) - Citadel Investment Group, one of the world's biggest hedge funds, said on Friday it has more than $10 billion in available credit and sought to quell rumors it was liquidating some portfolios after its two main funds had lost 35 percent since January.

Source: Reuters: Business News | 25 Oct 2008 | 12:47 am

Stocks to Watch: Stocks in focus for Monday

Among the companies whose shares are expected to see active trade in Monday's session are Verizon Communications Inc., Humana Inc., and Fidelity National Information Services Inc.

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 12:24 am

Latin American Markets: Argentina leads weekly drop in regional indexes

Latin American markets stumble as risk-adverse investors shift out of regional assets because of mounting fears of a sharp pullback in worldwide economic growth.

Source: MarketWatch.com - Top Stories | 25 Oct 2008 | 12:13 am

Oil prices plunge despite Opec cut

COLUMBUS, Ohio - Crude tumbled Friday and the price for a gallon of petrol in the US fell below year-ago levels for the first time in 2008, even as Opec announced a huge production cut in an attempt to halt the declines. Crude...
Source: New Zealand Herald - Business | 25 Oct 2008 | 12:06 am

GE cuts costs, prepares for more regulation: report

NEW YORK (Reuters) - General Electric Co is cutting costs and preparing for a wave of regulation from Washington, the Wall Street Journal reported on Friday.

Source: Reuters: Business News | 24 Oct 2008 | 11:44 pm

Top Ten: MarketWatch's top stories of the week, Oct. 20-24

Everybody makes mistakes, even Alan Greenspan. That may well have been the biggest news of the week.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:26 pm

Hedge Funds: Citadel's Griffin says firm will change amid market turmoil

Citadel Investment Group founder Ken Griffin says that his $15 billion firm has to change some of its businesses in the face of unprecedented deleveraging and fear in financial markets.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:23 pm

Weekend Edition: As recession goes global, big companies' profits hit hard

Midway through corporate earnings season, more large U.S. companies are warning their overseas businesses -- once an area of strength -- are flagging as the global economy looks headed toward a deep recession.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 11:19 pm

PNC to buy National City for $5.2bn

PNC Financial has agreed to buy National City, its beleaguered Ohio rival, in $5.2bn all-stock deal after it became the first regional US bank to sell preferred stock to the US government under the Treasury's bank recapitalisation program
Source: FT.com - US homepage | 24 Oct 2008 | 11:12 pm

PNC to buy ailing National City for $5.6 billion

NEW YORK (Reuters) - PNC Financial Services Group Inc agreed to buy ailing National City Corp in a government-supported $5.6 billion deal to rescue the large Ohio lender and create the No. 5 U.S. bank by deposits.

Source: Reuters: Business News | 24 Oct 2008 | 11:06 pm

John Lewis's sales drop for fifth week

Sales at John Lewis, the department store chain, plunged for a fifth consecutive week as shoppers kept their wallets firmly in their pockets.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

US Treasury adds $7.7bn to National City rescue$

National City, one of the biggest mortgage lenders in the Midwest, was acquired in a rescue deal yesterday after months of speculation about whether the bank would survive at all.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Aviva reviews its offer of £1bn payout

Aviva, Britain’s largest insurer, is reconsidering the terms of a planned £1 billion payout to with-profits policyholders, in a move likely to disappoint up to a million loyal customers. The Times understands that the owner of Norwich Union will tell the stock market next week that it remains committed to the deal, agreed in July, but that it will say that it will have to revisit the plan if stock market turbulence continues. Faced with the most volatile share markets in living memory, Aviva is understood to be considering whether to trim or delay the payment. It is highly unlikely to scrap it entirely. Aviva is understood to have consulted some leading shareholders on the reattribution aand they are thought to be comfortable with it. The insurer agreed the terms of a reattribution of its inherited estate – the surplus capital that has built up over years in its with-profits fund – three months ago after tense negotiations with Clare Spottiswoode, the advocate for policyholder interests. The insurer wants to retain some of the surplus capital and has offered policyholders a cash payment for forgoing future bonus payments. Aviva argues that it needs the capital to help to underwrite new business and to shore up the strength of the fund. The FTSE has fallen by almost 25 per cent since the agreement with Ms Spottiswoode was struck, putting heavy strain on Aviva’s financial strength. Its shares have fallen more than 60 per cent so far this year. Yesterday they closed down 27¾p, or 10 per cent, at 247¼p ahead of next week’s statement. This month, Aviva was forced to deny that it needed to carry out a rights issue or raise fresh capital from existing shareholders. Philip Scott, the finance director, has said that Aviva cannot rule out modifying its proposed payout. Ms Spottiswoode’s office declined last night to be drawn on implications of a reduced payment or a delay. A spokesman said: “We are not going to speculate ahead of time. We are going to continue to work towards the deal that was agreed in July.” Aviva said that the reattribution, and its terms, had always been subject to market conditions. At the same time, when it updates the City on third-quarter trading next week, Aviva will say that it is happy with the capital cushion it holds to protect it against investments going sour. After putting in place increased hedges this summer, Aviva has a £1.9 billion buffer of regulatory capital and could withstand even a 40 per cent fall in the FSTSE100
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Care home providers struggle to agree deals

The future of Britain's two largest care home companies was clouded in uncertainty last night as talks to refinance Southern Cross stalled and Four Seasons, its rival, was under pressure to sell up even if a deal were to generate big losses for its backers.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Wall Street halts futures trading amid panic

Stock markets across the world cracked yesterday, forcing Wall Street to suspend trading on a key futures contract to stem panic-selling while Moscow shut for business altogether.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

DWP says few women will claim pension rights

Only a fraction of the half a million “stay-at-home mothers” who have won the right to a higher state pension are expected to take up their entitlement, it emerged yesterday, as the Government was urged to do more to end poverty in retirement. Landmark reforms announced yesterday aimed at ensuring a comfortable retirement for a generation of women who prioritised child-rearing over their careers were in danger of blowing up in the Government’s face as a result of the meagre likely interest. The Conservatives accused the Department for Work and Pensions (DWP) of playing politics with its policy initiative. Chris Grayling, the Shadow Work and Pensions Secretary, told The Times: “This is clearly good news for the women who are eligible and take up their entitlement. “However, the suspicion will be that the Government has delayed this announcement until they need some good news and in the likelihood that in the current economic climate fewer people will take it up.” The department unveiled proposed changes to the Pensions Bill that would allow hundreds of thousands of people approaching retirement age to make up to six years of additional national insurance (NI) contributions to qualify for the full state pension. Up to 550,000 people – 90 per cent of them women – are eligible for the scheme, which will mean that they can fill in the gaps in the NI contributions they missed while raising children or tending to sick relatives. At the moment only about a third of women reaching pensionable age qualify for full state benefits. But the DWP, which unveiled the top-up scheme to great fanfare yesterday, admitted that “about 20 per cent” of those eligible were expected to buy additional contributions. A spokesman said that “not everyone would be better off”. He said that the estimate was based on the success of previous NI schemes. It will cost £420 to buy each additional year of state provision, to receive an additional £160 a year. The reforms will apply to those reaching retirement age between April 5 this year and April 5, 2015, with 20 years of NI payments notched up. Women in their fifties will benefit, in particular. It comes before other reforms in the Pensions Bill that will reduce to 30 the payment years needed to qualify for a full pension. James Purnell, the Pensions Secretary, said: “The Pensions Bill will transform pension provision and finally bring equality for women and carers so that by 2010 around 75 per cent of women reaching state pension age will be entitled to a full basic state pension, rising to 90 per cent by 2025, compared to around 35 per cent today.” Yesterday’s proposals also mark a policy U-turn by the Government, which last year overturned an amendment to the same Bill that would facilitate the additional top-up payments. An investigation by The Times last year exposed shortfalls of up to £1 billion in state pension payments to 500,000 women. Michael Warburton, senior tax partner at Grant Thornton, welcomed the reforms but expressed surprise at the low expected take-up. “I’m surprised it’s as low as 20 per cent,” he said. “Unfortunately, it will not help women who retired before April 2008, nor will it help those women who elected for the reduced married women’s stamp [lower NI contributions], often without realising the consequences. Nevertheless, it’s a very generous move. The cost will be paid for by higher Class 3 contributions in future years, which may upset some. On the other hand women who gave up work to bring up that next generation . . . have been a silent voice for too long.”
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

There is no end in sight for this particular storm

It is hard to recall a grislier day in the financial markets. We’ve experienced nastier economic shocks. We’ve seen bigger share market falls. We’ve witnessed uglier profit warnings. We’ve heard doomier pronouncements. But never quite so many squeezed into so few hours. The GDP numbers were horrific. The British economy is shrinking at a far greater than predicted speed. The pound is collapsing at an astonishing rate, plumbing $1.55 at one point yesterday. Shares slid to new five-year lows. The world economy no longer looks remotely immune to Europe$’s and America’s woes. Shares in emerging markets, the regions supposed to soften the economic agony in the West, are down by 15 per cent on the week. Even the most cautious officials have been rocked by the forces threatening the world’s financial institutions. “This is . . . possibly the largest financial crisis of its kind in human history,” says Charlie Bean, the Deputy Governor of the Bank of England, not a man prone to hyperbole. The gloom has spread far beyond the world of banking and financial services. Sony, Air France-KLM, Samsung, Microsoft, Daimler, Fiat and Renault are among the groups to have sounded warning notes in the past 48 hours. The cost of insuring against blue-chip companies defaulting on their bonds ballooned to a record high. The premiums paid on these insurance policies - credit default swaps – are regarded by many officials as the best measure of stress in financial markets, more important even than the wholesale interbank lending rates. No business is immune. More than £13 billion was wiped from the value of HSBC yesterday. For a bank as broadly based as HSBC to be clobbered like this shows the breathtaking way sentiment is souring in markets and boardrooms. Morgan Stanley reckons the HSBC dividend will have to be cut. The consolation for UK shareholders is that sterling is diving so fast that a cut in the dividend, which is set in dollars, would not necessarily preclude arise in puny pound terms. Hopes that some of the £37 billion of fresh capital being sought by Lloyds TSB, HBOS and Royal Bank of Scotland could be provided by existing shareholders, rather than taxpayers, are receding again. Their share prices are each below the price at which HMG has promised to underwrite their share issues. Again, too, the market doubts that Lloyds will go ahead with its takeover of HBOS on current terms. HBOS shares are trading at a 40 per cent discount to the value of the Lloyds offer. Meanwhile Barclays’ decision to shun taxpayer help and go it alone is beginning to look brave. Its shares fell 12 per cent to 192p, suggesting that at best it will have to sweeten terms to private investors to persuade them to disburse the £6.6 billion it needs. At worst it will have to do a U-turn and go back to the Treasury for help, help likely to be on penal terms only. Heads might have to roll in those circumstances. At that point the Government investment would be up to £44 billion and even that might not be enough. We are told that officials have stress-tested the capital needs of the banks to ensure they could withstand even an economic blizzard. That was a fortnight ago, however. Even in that short period, prospects for the British and world economy have further darkened. More borrowers, personal and corporate, seem likely to default. That £44 billion may look colossal, but it is modest beside the £4,100 billion of total bank assets it has to help underpin. It wouldn’t take such a deterioration in those assets for the banks’ newly fattened capital cushions to look thin again. The worst-case scenario is that the banks will have to return to the Government for yet more capital. With luck, that won’t be necessary. Mr Bean reckons the banking system is “on a path to recovery”. But after a day as torrid as yesterday, worst-case outcomes should not be ruled out.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Kebabs, corpses and some tips in marketing

It's not often that an inner-city restaurant in the West Midlands makes international headlines, but that's what happened with the Pappu Sweet Centre last week, after a court in Wolverhampton heard that its owner, 45-year-old Jaswinder Singh, had been found preparing kebabs just feet away from a dead man lying on a sofa.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Iceland leaves British depositors out in the cold

Iceland is poised to receive a bailout loan from the International Monetary Fund (IMF) without giving the UK Government assurances about how it will reimburse thousands of British savers with money in Icelandic banks.
Source: Latest Business News from Times Online | 24 Oct 2008 | 11:00 pm

Movers & Shakers: Friday's gaining and losing stocks

A rundown of shares making notable moves in the U.S. stock market Friday.

Source: MarketWatch.com - Top Stories | 24 Oct 2008 | 10:58 pm

Tough transition for new prez

The next United States president won't have long to savor victory after Election Day.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 10:57 pm

Shares hit by recession worries

Global stock markets fall back, as fears grow among investors of a sustained worldwide economic recession.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 10:57 pm

Chrysler axes 5,000 white-collar jobs

Detroit suffered a further blow yesterday with Chrysler announcing that it would slash one-quarter of its white-collar workforce, or almost 5,000 jobs, as merger talks with General Motors intensified
Source: FT.com - US homepage | 24 Oct 2008 | 10:55 pm

Wall Street drops on worries about deep slowdown (Reuters)

Reuters - Stocks dropped on Friday in a worldwide sell-off with investors cashing out of stocks as signs mounted that the global economic slowdown could be deeper than feared and the corporate profit outlook darkened.

Source: Yahoo! News: Business | 24 Oct 2008 | 10:54 pm

Treasury urged to aid car and insurance sectors

The US Treasury is coming under increasing pressure to expand its financial rescue plan beyond banks to include direct assistance to the ailing car and insurance sectors
Source: FT.com - US homepage | 24 Oct 2008 | 10:45 pm

Real Groovy Wellington reopens

Wellington's Real Groovy music store, part of the nation's biggest retail chain selling new and second-hand music which went into receivership recently, is back in business. The Wellington store reopened yesterday after it was...
Source: New Zealand Herald - Business | 24 Oct 2008 | 10:27 pm

GM/Chrysler talks intensify, Europe carmakers warn (Reuters)

Reuters - General Motors Corp intensified talks to acquire Chrysler LLC on Friday amid a worsening global auto downturn that forced deep cuts of salaried jobs at Chrysler and a warning from France's PSA Peugeot Citroen .

Source: Yahoo! News: Business | 24 Oct 2008 | 10:09 pm

On the Ball: Effects of Credit Crisis on Sports, NBA Season

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 9:53 pm

Insurers jump on bailout speculation

While the rest of Wall Street got clobbered again Friday, a handful of insurance stocks rallied sharply on speculation that the Treasury Department may soon invest in companies in the battered industry.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:51 pm

Desperate discounts: Many world markets now off 50% or more

Source: L.A. Times - Business | 24 Oct 2008 | 9:49 pm

VIX Index of U.S. Stock Option Prices Advances 16.7% to 79.13

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 9:47 pm

US bail-out cash buys rival bank

A US bank becomes the first to use some of the $700bn government bank bail-out to buy a rival.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 9:47 pm

LPL Financial's Anderson Says Growth Trumps Value With ETFs

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 9:42 pm

Tech teeters on the brink

The tech sector took another beating Friday as fears of a global recession fed a widespread market selloff.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:38 pm

Georgia shutters Atlanta bank

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:32 pm

What I'm Doing: Robert Latson

In the latest installment of our series, "What I'm Doing," we talk to Robert Latson, a 69-year-old retiree of General Motors, who's hesitant to touch his retirement money.
Source: Marketplace Money | 24 Oct 2008 | 9:25 pm

Getting Personal

This week, Chris and Tess answer listener questions about withdrawing from a 401K and investing extra money made from a second job after retirement.
Source: Marketplace Money | 24 Oct 2008 | 9:23 pm

Straight Story: A crisis checklist

As we watch global markets collapse, economics editor Chris Farrell tells us to take a proverbial deep breath and shares with Tess Vigeland his checklist of constructive things we can do in these troubled times.
Source: Marketplace Money | 24 Oct 2008 | 9:18 pm

US, European stocks fall, but resist global panic (AFP)

AFP - World stock markets plunged deep into negative territory Friday as gloom gathered over the global economy and dismal corporate news left investors stunned.

Source: Yahoo! News: Business | 24 Oct 2008 | 9:14 pm

Recession hits the local country club

Three weeks ago, several hundred residents of Bonita Springs, Fla., received letters containing a word that no homeowner wants to see: foreclosure. But the property in danger didn't belong to them.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:10 pm

How to tell it's finally over

Stocks plunged again Friday. Ugh! It's getting more difficult by the day to maintain that the worst may be over.

Source: Business and financial news - CNNMoney.com | 24 Oct 2008 | 9:09 pm

Can the markets shock us anymore?

With worldwide sell-offs and 700-point swings, what can possibly be surprising in the markets anymore? Tess Vigeland seeks answers and a little context from senior business correspondent Bob Moon.
Source: Marketplace Money | 24 Oct 2008 | 9:04 pm

Mary Robinson Calls Human Rights `Birthright of People'

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 9:00 pm

Work Life: He's a solar man

Need to feel a little sunshine in this dark, cloudy economy? We don't blame you, so we thought we'd help find you some. If your house is solar-friendly, solar systems consultant Paul Scott can help you save money.
Source: Marketplace Money | 24 Oct 2008 | 8:50 pm

Oil falls $4 as OPEC cut fails to halt slide

NEW YORK (Reuters) - Oil dropped nearly $4 a barrel on Friday as concerns about a global recession and slowing fuel demand took the steam out of an OPEC agreement to cut output.

Source: Reuters: Business News | 24 Oct 2008 | 8:50 pm

How safe is your pension?

Many companies are expected to suspend 401k's in the near future, and pension plans are becoming a rarity. But if you do have a pension, is it safe? Tess Vigeland asks Olivia Mitchell of the Wharton School of Business.
Source: Marketplace Money | 24 Oct 2008 | 8:34 pm

Fast Times at Microsoft

Microsoft's billion-dollar bet on a Norwegian search-software company was troubled before it began, and it quickly went downhill from there.

Now it has become a criminal matter. Officers from Økokrim, the Norwegian authority for the investigation of economic and environmental crime, raided the Oslo offices of the company, Fast Search & Transfer, and seized documents.

The raid last week was prompted by an investigation into what began several years ago as a seemingly routine earnings restatement but has now developed into a full-blown criminal investigation that could put a Microsoft executive behind bars.

Microsoft paid $1.23 billion for Fast last January to acquire the company's cutting-edge search technology, which Microsoft sees as a crucial weapon in its war against Google.

The growing scandal over Fast's finances presents increasing risks for Microsoft.

"The key point is that Microsoft Fast is not in control. Control has shifted to the police," said Stephen E. Arnold, an industry consultant who writes a blog called Beyond Search. The episode, while hardly fatal to giant Microsoft, does raise questions about the company's ability to conduct due diligence in M&A, an increasingly important area.

Among technologists, Fast was respected as the Google of Norway. It has been a leader in the market for the largest-scale corporate and governmental search customers. Its clients have included Comcast, the Walt Disney Co., the Financial Times, and AT&T. Google dominates the search market for consumers and medium-size businesses, but the high end is up for grabs.

Unfortunately, Fast also has earned unfavorable comparisons to Enron. It was forced to restate its revenue for 2006 and 2007. For the latter year, its last as an independent company, Fast ended up with a loss of $135 million on revenue of $143 million.

As of last January, when the Microsoft deal was announced, Fast said it expected 2007 revenue of $161 million. The accounting problems stemmed from the practice of booking revenue from deals before customers actually paid.

Last May, financial regulators in Norway referred the matter to Økokrim; its six-month investigation culminated in the charges and the October 13 raid.

So far, Microsoft is taking the criminal charges in stride. The company issued a statement after the raid saying that the actions by Økokrim concerned Fast accounting practices in 2006 and 2007.

 "Since completing our acquisition in April 2008, Microsoft has taken ongoing steps to align Fast's financial reporting and controls to Microsoft's high standards," a company spokesman said. "We are fully committed to taking all appropriate actions to ensure consistency with our company's core values."

Industry sources say Fast C.E.O. John M. Lervik is still in charge of the unit, although he has been forced to step aside as chairman of its international unit. Microsoft also has moved the headquarters of its global enterprise search business to Norway, a strong show of confidence in Fast.

Microsoft, which has faced down the U.S. Justice Department and the European Union, probably figures it has little to fear from the Norwegian police. That may be true—for now. But allegations of criminal accounting fraud raise the level of risk for the company, and is bout to be a huge distraction for Lervik as he leads Microsoft's battle against Google, a potent rival.

And there's always the possibility that the matter will go beyond the Norwegian police. Tech companies face intense scrutiny in Europe. The National Hi-Tech Crime Unit in London, for example, was launched with great fanfare in 2001.

Internally, the question is whether Microsoft did adequate due diligence on the Fast deal. It was an expensive transaction, even before Fast restated its results. Microsoft paid a 42 percent premium to Fast's share price when the deal was announced. The restatements last spring make the price seem even pricier.

There were signs of trouble before Microsoft bought the company. Fast reported a $100 million loss during the third quarter of 2007, citing accounting issues. The accounting issues had led to the loss of several key executives and infighting among board members.

One director, Tomas Fussel, reportedly bought a company called Hercules Communications and sold it to Fast for a big profit. This led to criticism in the Norwegian press, which follows the Fast story closely.

In a separate episode, director Robert Keith reportedly said in 2007 that he should have "shot" fellow director Oystein Spay Spatelan the first time he saw him. Both men have since left the board.

Ultimate accountability for the deal rests with Microsoft C.F.O. Christopher Liddell, who oversees acquisitions.

It remains to be seen whether Microsoft will get its $1.23 billion's worth from Fast. That all depends upon whether Fast turns out to be more Enron than Google, or vice versa.

The atmosphere is uneasy, according to one rival. "Microsoft is 'role mapping' former Fast field employees to new roles, so things are a bit chaotic there," says Steve Papa, C.E.O. of Endeca, a Fast rival. "Its all a bit murky."Related Links
The Fast and the Curious
Fast Trouble for Microsoft
Nerds Talking Browsers


Source: Portfolio.com: Top 5 | 24 Oct 2008 | 8:30 pm

Small businesses have big concerns

Starting your own business, you have to expect to take a few hits at first -- and the current economic crisis doesn't make it any easier. Tess Vigeland sits down with three small business owners to talk survival strategy.
Source: Marketplace Money | 24 Oct 2008 | 8:24 pm

Market Turbulence, Fed Policymakers Meet, Help for Detroit

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 8:14 pm

Looming global recession batters stocks

Global stocks slumped and currencies collapsed against the Japanese yen as investors rushed to sell risky assets, fanned by fears about the severity of the approaching global economic recession and bleak outlook for corporate earnings
Source: FT.com - US homepage | 24 Oct 2008 | 8:11 pm

Kotok Says Hedge Funds `Definitely' Causing Pushdown in Markets

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 8:00 pm

Opec cuts fails to stop oil price slide

The oil cartel slashed production on Friday but prices continued to fall as concerns about the global economic crisis sent crude to its lowest level in 16 months
Source: FT.com - US homepage | 24 Oct 2008 | 7:10 pm

World stocks, oil and gold plummet

NEW YORK - Stock markets around the world plummeted overnight and oil prices plunged to their lowest in more than a year. Even gold, the traditional safe haven in times of panic, fell sharply. The common denominator was growing...
Source: New Zealand Herald - Business | 24 Oct 2008 | 7:00 pm

Oil falls despite production cuts

World oil prices fall more than $4 a barrel, undermining Opec's attempts to steady prices by cutting output.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 6:55 pm

Cut Your Taxes Without Selling Low (The Motley Fool)

The Motley Fool - As we start winding our way toward the holidays, investors eager to cut their income taxes start looking at their portfolios for stocks that have lost them money. Selling your losers lets you lock in a capital loss that you can use on your taxes to offset gains on other stocks, as well as some other forms of income.
Source: Yahoo! News: Business | 24 Oct 2008 | 6:47 pm

Kenya readies for Obama tourist boom

Ten days away from the US presidential election, tour operators and hotel owners in the east African nation are positioning themselves for an Obama boom
Source: FT.com - US homepage | 24 Oct 2008 | 6:33 pm

Don't give the house to a scammer

In a world of questionable mortgage lenders and credit gone wrong, who can you trust to help you out of a foreclosure? Alisa Roth tells us stories of scammers that troubled homeowners should be careful to avoid.
Source: Marketplace Money | 24 Oct 2008 | 6:26 pm

Recession fear as economy shrinks

The economy shrank for the first time in 16 years between July and September, confirming the UK is on the brink of recession.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 6:15 pm

Westpac's Franulovich Sees China Growth Slowing `Dramatically'

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 5:54 pm

Surprise bounce in existing home sales

The pace of existing home sales in the US rose unexpectedly by 5.5 per cent in September as sharply lower prices attracted buyers in every part of the country except the north-east
Source: FT.com - US homepage | 24 Oct 2008 | 5:30 pm

Chimera & Annaly, Venturing Further With Vulture Capital (CIM, NLY)

Source: 24/7 Wall St. | 24 Oct 2008 | 5:23 pm

Iceland set for $2.1bn IMF help

Iceland's government has said it has asked for $2bn (£1.3bn; 1.58bn euros) of support from the International Monetary Fund.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 5:02 pm

How The New York Times (NYT) Should Save Itself

Source: 24/7 Wall St. | 24 Oct 2008 | 4:59 pm

Peugeot to launch 'massive' cuts

Peugeot Citroen says it will start "massive" production cuts as the automotive sector is hit by the downturn.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 4:53 pm

Aghanistan's pre-Islamic art

Ancient artifacts from Afghanistan's pre-Islamic past are the focus of a exhibit touring the U.S., but as Gregory Warner reports, many valuable artworks still in Afghanistan need protection.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

20 years of helping enterprising women

Twenty years ago, Congress passed the Women's Business Ownership Act to improve chances for women entrepreneurs. Entrepeneurship reporter Mitchell Hartman reports on accomplishments so far and what lies ahead.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

Bailout plan turns to foreclosures

Kai Ryssdal talks to David Leonhardt of the New York Times and Leigh Gallagher of Forbes about Congress' decision to funnel more cash to struggling homeowners and other news from a busy week.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

British economy shrinking fast

The economic situation in Britain is so bad that one restaurant sells meals for 1 pound to get customers to come back. London Bureau Chief Stephen Beard reports on dire predictions for the British economy.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

IMF to help emerging economies

The International Monetary Fund is in talks with developing nations desperately in need of loans to keep their economies afloat. As Ashley Milne-Tyte reports, the root of their problems is us.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

OPEC cuts production as prices tumble

OPEC ministers meeting in Vienna announced a 1.5-million barrel cut in oil production to try to drive up prices on the international market. Washington Bureau Chief John Dimsdale reports.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

Economies hammered worldwide

Recessionary fears have really gone global now. And on Wall Street, some wondered if the Dow would drop low enough to trigger "circuit breakers," which halt trading. Kai Ryssdal turns to Jeremy Hobson for perspective.
Source: Marketplace | 24 Oct 2008 | 4:45 pm

Court threat over eBay feedback

A seller on the online marketplace eBay threatens to sue a customer in a row over negative feedback
Source: BBC News | Business | World Edition | 24 Oct 2008 | 4:32 pm

Sudden plunge hits European markets

Europe's sharemarkets were in a tailspin early today, mirroring an earlier plunge in Asia. Official figures suggesting Britain is entering a prolonged recession and a torrent of woeful company results rattled jumpy investors. Britain's...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:30 pm

Greed under fire

In the United States more than $1 billion in bonuses for failed Wall St executives have been frozen, politicians around the world are railing against corporate greed and here the squeeze has been put on directors' fees and executive...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

Brian Gaynor : Stats paint unsettling picture for economy

Attention has turned to the international and domestic economy now that the world credit crisis is showing signs of abating. Economists and investors are trying to predict how long the recession is going to last, whether it will...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

GE Money to cut 80 NZ jobs

The credit crunch is forcing GE Money to pull back from the home loan and car finance markets - with the loss of 335 jobs. The Australasian financier says the cost of wholesale funds means these businesses are no longer viable. In...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

John Roughan : Money turns to dust when markets get high on cash

What an extraordinary phase of history these past weeks have been. Money, one of the foundations of economic life, has turned to fairy dust. Governments are manufacturing it by the billions to sprinkle on moribund banks. Does it...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

From Wall St to Dominion Rd

In a dusty corner window of Russ Noble's Roskill Sheetmetal Works there's a plastic card advertising "youth wanted". The sign has been sitting in full view of passers-by for years - through good economic times and bad. Mr Noble...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

Food giant predicts end of massive price hikes

Food prices are likely to remain high for some time, but the enormous hikes consumers experienced over the past year are probably over, says Australasia's leading food manufacturer, Goodman Fielder. Managing director and chief...
Source: New Zealand Herald - Business | 24 Oct 2008 | 4:00 pm

Chrysler plans further job cuts

US car firm Chrysler continues its cost-cutting by unveiling plans to axe 25% of its white collar workforce by the of end of 2008.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 3:59 pm

Governments tackle market crisis

Russia, Denmark and Turkey take steps to protect their economies from the onslaught of the global financial crisis.
Source: BBC News | Business | World Edition | 24 Oct 2008 | 3:56 pm

When Going Bankrupt Buy a Beach House as Shelter, Woolner Says

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 3:52 pm

Prosecutors in Subprime Probes Look to Enron, Refco Strategies

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 3:48 pm

Levitt Says Market Limits, Closure Are Ultimately Destructive

Source: Bloomberg - All Podcasts | 24 Oct 2008 | 3:35 pm

What The NCC (NCC) Deal Says About Bank Balance Sheets

NCC (NCC) was bought today by PNC in what most people would view as a classic "takeunder" The price of the deal was well below where the shares traded yesterday.

NCC's stock is down 20% on the news. PNC will pay a total of $2.23 a share or $5.58 billion.

The government had a hand in the deal and probably even forced it. PNC says it received a $7.7 billion investment from the government, under its $750 billion bailout plan.

The amount of the write-offs when the deal is done will be extraordinary. PNC's CEO said $19.9 billion of losses on the National City portfolio will come in as write-downs at the time the acquisition closes.

That says a great deal about major US bank balance sheets. Wachovia (WB) reported a third-quarter loss of $23.9 billion on Wednesday, which say a mouthful about that state of its financials. Under the provisions of its merger deal with Wells Fargo (WFC), it was required to fess up to everything bad it could find. According to Reuters, loan losses from Wachovia could hit $74 billion.

Odd that the really big write-offs only get exposed when these firms are bought. It is almost as if those banks which are still independent are moving a bit slowly in getting all of their cards onto the table.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Oct 2008 | 2:46 pm

Data confirm UK on brink of recession

Gross domestic product shrank by a sharper than expected 0.5% in the three months to September, official data showed – the first official confirmation that the UK is entering a recession
Source: FT.com - US homepage | 24 Oct 2008 | 2:22 pm

Can The VIX Hit 100?

Source: 24/7 Wall St. | 24 Oct 2008 | 2:10 pm

NatCity Gets Saved

PNC Financial Services hasn't even gotten its money from the Treasury Department yet, but it's already finding ways to spend it.

The Pittsburgh, PA-based bank is acquiring the troubled National City for $5.6 billion in cash and stock, or $2.23 per share.  PNC also announced it will sell $7.7 billion worth of preferred shares to the government as part of its plan to bolster the banking sector by injecting capital.

Although the deal is mostly being done with stock, PNC indicated that the capital from the government helped make it happen by giving the combined company a stronger capital ratio. "We are also gratified that we have been selected to participate in Treasury's Capital Purchase Program, which has helped to put this transaction on a very solid footing," said PNC chief executive James Lohr in a statement.

Although the Treasury Department is encouraging banks to use the money to start lending, it can't prevent them from sitting on the cash or using it to buy up weaker rivals. It's in the government's interest to save National City and its FDIC insured deposits.

On a conference call, Lohr did not say if the government forced the sale, but he did say that there was a competitive bid for National City last night.

The combination will create the fifth-largest bank in the U.S. by deposits. National City brings a strong presence in the Midwest to PNC's footprint in the mid-Atlantic region.

National City has been crushed by its portfolio of bad mortgage loans and its fate has been speculated about for months. Earlier this week, the bank reported its fifth consecutive quarter of losses and announced plans to cut 14 percent of its workforce.

National City's loan portfolio is now PNC's problem. The bank said it would continue to try and sell off as many of the bad assets as it can.

On a conference call, Lohr said the bank will also consider raising another $1 billion by issuing common shares, but only after consulting with key shareholders.

PNC shares provided an anomalous bright spot in an otherwise ugly market today. Shares in National City plummeted more than 20 percent to below the offering price from PNC.

Related Links
Incentives for Inflation
The Blurry Bailout
Thanks, Hank


Source: Portfolio.com: Top 5 | 24 Oct 2008 | 2:00 pm

5 Friday Stock Winners Despite Market Carnage (CLS, COLM, INSU, IPCR, WDC)

Source: 24/7 Wall St. | 24 Oct 2008 | 1:53 pm

PNC and National City Banks Merge Despite Armageddon (PNC, NCC)

Source: 24/7 Wall St. | 24 Oct 2008 | 1:35 pm