|
|
|
|
Stocks: Know when to hold 'emFor most investors, staying the course is easy enough when stocks are climbing. But when the market drops, the urge to dump struggling holdings often proves all too powerful.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 2:36 pm Toll Brothers' home-building revenue cut in halfToll Brothers Inc. on Wednesday estimated its fiscal first-quarter home-building revenue was cut in half by the ongoing housing downturn as the company rolled out 4% fixed-rate mortgages to attract nervous buyers.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:36 pm Stocks set for mixed openU.S. stocks were set for a mixed open Wednesday, with the focus on the banking sector as key executives prepare to testify before Congress.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 2:34 pm Blockbuster to add video games to Total Access offeringBlockbuster will launch a pilot program that allows certain members of its Total Access service to rent games along with movies through the mail as part of their subscription plan, the company's latest competitive counterthrust against Netflix.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:33 pm Oil stays near $38 on bailout skepticismInvestor skepticism about the new U.S. bank rescue plan kept oil prices close to $38 a barrel Wednesday despite evidence OPEC countries are complying with their agreed production cuts. ASource: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:31 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:31 pm Mortgage applications tumble, U.S. trade gap shrinksWASHINGTON (Reuters) - The U.S. trade deficit shrank 4 percent in December, as the global financial crisis cut U.S. imports and exports for the fifth straight month, while U.S. demand for mortgages tumbled nearly 25 percent last week as potential buyers held out for better terms.Source: Reuters: Business News | 11 Feb 2009 | 2:30 pm A Different Take on R-I-M ‘Warning’ (RIMM)Somehow, some way, Wall Street was surprised that Research in Motion Ltd. (NASDAQ: RIMM) is seeing its earnings under consensus estimates. Based on all the corporate layoffs, this should have been...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 2:26 pm Stocks set to open higher on bargain search (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 2:24 pm Stocks set to open higher on bargain searchNEW YORK (Reuters) - Stocks headed for a bounce at the open on Wednesday, with investors set to scour the market for beaten down shares after a sell-off the previous day sparked by concerns about a plan to shore up the financial system.Source: Reuters: Business News | 11 Feb 2009 | 2:24 pm Stocks set to open higher on bargain search (Reuters)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 2:24 pm 4 questions for big bank CEOsWhen you take $165 billion from the U.S. government, you better make yourself available when Congress comes calling.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 2:23 pm Trade gap narrows for 2nd straight yearThe gap between the nation's imports and exports narrowed in December to a six-year low, according to a government report Wednesday. The gap for the year turned sharply lower and marked the second straight year of shrinking annual trade deficits.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 2:21 pm China's January exports, imports plungeChina's trade plunged in January as the global economic crisis drove down demand for its exports, adding to the threat of job losses and unrest and dampening hopes an economic recovery...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:20 pm Futures Movers: Crude futures rebound ahead of U.S. petroleum inventories dataCrude-oil futures move up nearly 2%, erasing a portion of Tuesday's weakness, as traders await data expected to show U.S. crude supplies higher last week. Traders also digested the International Energy Agency's latest revision on oil demand, again cutting its forecast.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:20 pm Shareholders file suit on Madoff links to UBSShareholder group Deminor said Wednesday it has filed a Luxembourg law suit seeking information on how liable Swiss bank UBS AG might be for billions of euros (dollars) in client losses...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:19 pm 'This Is Not A Plan'U.S. Treasury Secretary Tim Geithner unveiled his plan for saving the economy Tuesday, or maybe left it in shrouds. So say the headlines -- and yesterday's falling stock market. "The market is responding to vagueness," economist and Planet Money guest Simon Johnson told TPM Muckraker. "This is not a plan. In the annals of plan-announcing, this is very vague." After the jump, the YouTube video so many of you want to talk about. As part of his answer to an irate caller, Rep. Paul Kanjorski of Pennsylvania describes an electronic bank run back in September. Kanjorski says the Federal Reserve told lawmakers the economy was approaching meltdown. (See also: Planet Money's own "The Week America's Economy Almost Died.") » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 11 Feb 2009 | 2:18 pm BlackBerry-maker RIM sees earnings at low end of forecast (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 2:17 pm BlackBerry-maker RIM sees earnings at low end of forecastTORONTO/NEW YORK (Reuters) - Research In Motion said its quarterly earnings and gross margin would come in at the low end of expectations even as subscriber growth topped forecasts, a warning that sent shares of the BlackBerry maker down 12 percent on Wednesday.Source: Reuters: Business News | 11 Feb 2009 | 2:17 pm 25 Valentine’s Quotes You Can Say in Public
These are mellower quotes that err on the humorous side of things: 25. “True love comes quietly, without banners or flashing lights. If you hear bells, get your ears checked.” Erich Segal 24. “Love is grand; divorce is a hundred grand.” Anonymous 23. “I was nauseous and tingly all over. I was either in love or I had smallpox!” Woody Allen 22. The great question, which I have not been able to answer is, “What does a woman want?” Sigmund Freud 21. “If love is blind, why is lingerie so popular?” Anonymous 20. “Marriage is the triumph of imagination over intelligence. Second marriage is the triumph of hope over experience.” Samuel Johnson 19. “Love wouldn’t be blind if the Braille weren’t so damned much fun.” Anonymous 18. “Falling in love is so hard on the knees.” Aerosmith 17. “Love is like an hourglass, with the heart filling up as the brain empties.” 16. “An archeologist is the best husband any woman can have; the older she gets, the more interested he is in her.” Agatha Christie 15. “It’s not the men in my life that count — it’s the life in my men.” Mae West 14. “Love is much nicer to be in than an automobile accident, a tight girdle, a higher tax bracket, or a holding pattern over Philadelphia.” Judith Viorst 13. “Love may not make the world go round, but I must admit that it makes the ride worthwhile.” Sean Connery 12. “Gravitation is not responsible for people falling in love.” Albert Einstein 11. “We don’t believe in rheumatism and true love until after the first attack.” Marie Ebner Von Eschenbach, Aphorism 10. “What the world really needs is more love and less paper work.” Pearl Bailey 9. “Valentine’s Day is when a lot of married men are reminded what a poor shot Cupid really is. Unknown 8. “Today is Valentine’s Day. Or, as men like to call it, Extortion day.” Jay Leno 7. “Behind every successful man is a woman, behind her is his wife.” Groucho Marx 6. “One should always be in love. That is the reason one should never marry.” Oscar Wilde 5. “You can’t buy love, but you can pay heavily for it.” Henny Youngman 4. “Love is an electric blanket with somebody else in control of the switch.” Cathy Carlyle 3. “Nobody will ever win the battle of the sexes. There’s too much fraternizing with the enemy.” Henry Kissinger 2. “Love is a snowmobile racing across the tundra and then suddenly it flips over, pinning you underneath. At night, the ice weasels come.” Matt Groening 1. “You come to love not by finding the perfect person, but by seeing an imperfect person perfectly.” Sam Keen Source: Business Pundit | 11 Feb 2009 | 2:17 pm Stock futures point to moderately higher open (AP)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 2:16 pm HBOS board should not get special blame over Paul MoorePaul Moore could become a hero of the financial crisis.Source: Telegraph Finance | 11 Feb 2009 | 2:16 pm Bond Report: Treasurys down ahead of 10-year note auctionTreasurys slide, adding to steep declines in the previous session, as the Treasury Department prepares to sell the most 10-year notes ever.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:15 pm Wall St jittery ahead of Congressional hearingUS stocks were set for a mixed opening on Wednesday as investors awaited the testimony of several senior banking executives before Congress and continued to digest Treasury Secretary Geithner's rescue plan.Source: Financial Times - US homepage | 11 Feb 2009 | 2:13 pm Stock futures point to moderately higher openInvestors appeared ready to recover some of the previous day's huge losses, but remained skeptical of the government's ability to pull the economy out of recession. Stock futures pointed toSource: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:13 pm RIM cautious on quarterly earningsWASHINGTON (MarketWatch) -- Research In Motion Ltd on Wednesday said it had signed up "record levels of net subscribers" in December, but the maker of the BlackBerry also said earnings in the fourth quarter would finish near the low end of its prior forecast.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:13 pm Merrill secretly moved up bonus payments: CuomoNEW YORK (Reuters) - Merrill Lynch secretly accelerated bonus payments and gave at least $1 million to each of nearly 700 employees as the brokerage was amassing billions of dollars of losses, New York Attorney General Andrew Cuomo said in a letter to Rep. Barney Frank.Source: Reuters: Business News | 11 Feb 2009 | 2:11 pm Merrill secretly moved up bonus payments: CuomoNEW YORK (Reuters) - Merrill Lynch secretly accelerated bonus payments and gave at least $1 million to each of nearly 700 employees as the brokerage was amassing billions of dollars of...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:11 pm Merrill secretly moved up bonus payments: Cuomo (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 2:11 pm How It Could WorkI left the Treasury Department yesterday with lots of questions about how the proposed public-private fund to buy up toxic assets would actually work. One potential problem: What if the bank has a toxic asset it thinks (hopes) is worth 40 cents on the dollar. But the investors running the fund think there's no way it's worth more than 20 cents. Then no trade, right? The banks are still stuck with it. We haven't fixed the problem. Economists and auction experts Peter Cramton and Larry Ausubel just posted something laying out how you might set up one of these public-private funds. It's basically a kind of investment bank which is co-owned by private investors and the government. It would purchase the toxic assets through a reverse auction. (Reverse auction stories here and here) I could also imagine a solution where the government sets up a few of these banks which would compete to buy the assets. I'm not sure either of these gets around the problem outlined above though.
» E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 11 Feb 2009 | 2:10 pm US trade deficit at six-year lowThe US trade deficit falls to its lowest level in almost six years in December, as the slowing economy puts the brake on imports.Source: BBC News | Business | World Edition | 11 Feb 2009 | 2:10 pm Financial Stocks: XL leads financial sector higher in pre-open tradeNEW YORK (MarketWatch) -- Shares of XL Capital Ltd. rose more than 15% in pre-open trade on Wednesday rallying after a well received earnings report and leading an early attempt by the sector to recoup at least some of the previous session's severe losses.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:10 pm U.K. regulator quits after whistleblower's allegationsJames Crosby, deputy chairman of the U.K.’s main financial regulator, resigned Wednesday following allegations he had fired a whistleblower and ignored warnings about excessive risk in his previous role as chief executive of the lender HBOS.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:10 pm Investors shop for good deals on storesThere's hope yet for a bailout for battered merchants, but it's not coming from Washington.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 2:09 pm Lovers’ Island Discovered by Google Earth
(Image from Ananova) A tiny heart-shaped island in the Adriatic has become a holiday hit for St Valentine’s Day after being discovered on Google Earth. Even the uninhabited island’s owner didn’t realise how perfectly heart-shaped the island off the Croatian coast was until he was swamped with requests from lovers to stay there. “It has been incredible. We think it is the most perfect heart-shaped island in the world,” said Vlado Juresko whose family owns the 130,000 square yard islet of Galesnjak, hastily redubbed Lovers’ Island. “Nobody lives there so if lovers really do want to spend time alone it’s the perfect desert island.” Source: Business Pundit | 11 Feb 2009 | 2:07 pm Israel's centrist party wins by 1 -- but nothing is settledIsrael's centrist Kadima Party wins one more mandate for the parliament than the right-wing Likud Party in Tuesday's elections, but the question of who will govern as prime minister is still open.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:07 pm Wall St CEOs to defend use of bailout to CongressWASHINGTON (Reuters) - The kings of Wall Street will try to soothe the U.S. Congress on Wednesday by defending their use of $176 billion in bank bailout money, but it may be a tough sell, even for the one-time "masters of the universe."Source: Reuters: Business News | 11 Feb 2009 | 2:05 pm Wall St CEOs to defend use of bailout to Congress (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 2:05 pm Sun-Times Media selects new CEOSun-Times Media Group Inc. has picked the former president and general manager of the Dallas Morning News as interim chief executive officer and chairman. Jeremy Halbreich replaces CyrusSource: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:03 pm Toll sees revenue drop as high-end buyers cancelNEW YORK (Reuters) - Toll Brothers expects quarterly revenue to decline by half as prospective buyers of its more expensive homes changed their minds, the luxury builder said on Wednesday.Source: Reuters: Business News | 11 Feb 2009 | 2:02 pm NY AG Cuomo Said Merrill “Secretly and Prematurely” Awarded $3.5B In Bonuses Before MergerNew York Attorney General Andrew Cuomo said Merrill Lynch (NYSE: MER) paid out $121 million in bonuses for the top four recipients before being acquired by Bank of America (NYSE: BAC). Cuomo said...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 2:02 pm Change to Win Calls on Financial Services Roundtable to Stop Using TARP Subsidies to Attack Workers' RightsWASHINGTON, Feb. 11 /PRNewswire/ -- With the House Committee on Financial Services scheduled to take up TARP Accountability at today's 10 am hearing, Anna Burger, Change to...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:01 pm Ken Lewis calls for Wall Street bankers to find some humility before CongressKen Lewis called on Wall Street heads to find some "humility" as they testify before Congress.Source: Telegraph Finance | 11 Feb 2009 | 2:00 pm NewsWatch: U.S. futures flat following Tuesday's post-plan plungeU.S. stock futures were flat Wednesday as unease continued over the lack of details surrounding a plan to shore up the U.S. banking system.Source: MarketWatch.com - Top Stories | 11 Feb 2009 | 2:00 pm ClariFI Releases ModelStation v4.0, Featuring Industry-First Event Study for Portfolio ManagementNew version provides investment managers with an expanded platform that bridges qualitative and quantitative needs NEW YORK, Feb. 11 /PRNewswire/ -- ClariFI, a...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:00 pm Photos: Spangler Candy Brings on the Smiles with Dum Dum(R) Pop Art(TM)!href="http://www.dumdumpops.com">Dum Dum Drum Man(R) Displayed in Iconic Artwork BRYAN, Ohio, Feb. 11 /PRNewswire/ -- Because "Everyone Loves a Dum...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:00 pm Raytheon's JLENS Passes Key MilestoneTEWKSBURY, Mass., Feb. 11, 2009 /PRNewswire/ -- Raytheon Company's (NYSE: RTN) JLENS (Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System) has...Source: RSS feed - channel BNewsBusiness | 11 Feb 2009 | 2:00 pm WS Atkins cuts 1,000 jobs despite meeting targetsWS Atkins, the engineering consultancy group, is to cut around 1000 jobs despite promising to meet expectations for the year.Source: Latest Business News from Times Online | 11 Feb 2009 | 1:59 pm Trump Wants You...Donald Trump wants you to jump into the crazy real estate market. Actually he wants you to take his class. Well, it's not his class -- it's taught by "Donald Trump's handpicked instructor." The pitch: "We'll help you by teaching you how to profit from the $700 billion bailout" The ad, which ran in the Baltimore Sun, doesn't mention how much the full course costs. The (unnamed) instructor is in town this week. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 11 Feb 2009 | 1:56 pm What To Expect In House Financial Grilling of Bank CEO’s (BAC, C, JPM, WFC, GS, MS, STT, BK)In no way is there going to be much positive press today about the U.S. banking sector. The top CEO’s of America’s key TARP banks are going to be in front of the House Financial Services...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 1:55 pm Treasury Plan Flaw: Where Is George Soros?A number of aspects of the bank bailout program presented by the Treasury yesterday troubled investors. The biggest problem was that it lacked details about how it would work. One of the most...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 1:54 pm Congress, White House seek final deal on stimulusWASHINGTON (Reuters) - Congressional negotiators and White House officials met behind closed doors late on Tuesday to try to work out disagreements over spending and tax cuts in an economic stimulus bill that could cost taxpayers around $800 billion.Source: Reuters: Business News | 11 Feb 2009 | 1:51 pm 'Independent' KPMG earned millions from HBOSThe "independent" experts hired by HBOS to investigate allegations of serious failings at the bank in 2005 had been receiving millions of pounds in fees from the company for years.Source: Latest Business News from Times Online | 11 Feb 2009 | 1:45 pm Sir James Crosby: a profileSir James Crosby resignation will be felt at the very heart of Gordon Brown's Government.Source: Telegraph Finance | 11 Feb 2009 | 1:43 pm Woman sues British Gas for harassment over repeated letters and billsA woman wrongly threatened over gas bills was praised by a senior judge for her determination in taking on one of the "big battalions" of industry.Source: Telegraph Finance | 11 Feb 2009 | 1:39 pm Google PowerMeter Could Boost Business in Other Sectors
PC Magazine has an interesting article on how the Google PowerMeter is more than just a handy way to go green. It could be the catalyst for a home automation movement (remember those lights that turned on and off when you clapped?): Google’s PowerMeter, which will enable consumers to see how much energy they’re using, is one of the best home automation ideas to come along in a long time. Although still being put through its paces by Google employees, PowerMeter may allow users to cut their power usage by up to 15 percent, a green benefit that transcends the Prius crowd. Indeed, once people find out how much money their ’80s-era Frigidaire is costing them, they’ll see the cost benefits of upgrading to a new, more energy-efficient model. Talk about a stimulus plan. But the real benefactor here may be the home automation vendors who’ve toiled for decades in the consumer electronics shadows. Home-control gadgetry that turns lights on and off, and operates Web-enabled security cameras and thermostats, has been around for two decades or more. Do-it-yourself nerds are familiar with Insteon, X10, and Z-Wave products. (Aside: X10 shamelessly markets its video wares as spy cams for peepers.) And the ultrawealthy who can drop six figures on remote-controlled home theaters and motorized venetian blinds often hire high-end automation installers such as Crestron. Google’s PowerMeter…has a very compelling proposition: It’ll save you money — potentially a lot of money. True, the verdict is still out on how well it’ll work, but Google certainly has the resources to make PowerMeter a success. If the software works as advertised, we’ll likely see a sales surge of smart utility meters and thermostats, two energy-saving products that exist today. Google has a way making room for cottage industries through its breakthrough innovations. If the PowerMeter succeeds in bolstering home automation, like PC Magazine suggests, Google might have a real winner on its hands. Source: Business Pundit | 11 Feb 2009 | 1:38 pm U.S. trade deficit shrinks 4 percent in DecemberWASHINGTON (Reuters) - The U.S. trade deficit shrank 4 percent in December, as the global financial crisis cut U.S. imports and exports for the fifth consecutive month, a U.S. Commerce Department report showed on Wednesday.Source: Reuters: Business News | 11 Feb 2009 | 1:36 pm World stocks fall on skepticism over US bank plan (AP)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 1:26 pm Top Pre-Market Analyst Upgrades (BBY, CPT, CHTT, ETN, HEES, ITW, TAP, URI, VRGY)These are some of the top analyst upgrades or positive calls that we have seen this Wednesday morning: Best Buy (BBY) added to Goldman Sachs Conviction Buy List. Camden Properties (CPT) Raised to...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 1:18 pm Top Pre-Market Analyst Downgrades (ABH, BBX, XEC, LGF, HK, VTNC)These are some of the top pre-market analyst downgrades we have seen this Wednesday morning: AbitibiBowater (ABH) Cut to Underperform at RBC. BankAtlantic (BBX) Cut to Underperform at FBR. Cimarex...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 1:07 pm Holidaymakers to pay more to be protectedThe £1 levy to protect passengers' holidays could rise to as much as £5 next year depsite opposition from the travel industry.Source: Telegraph Finance | 11 Feb 2009 | 1:07 pm UK Bank warns of 'deep recession'The Bank of England says that the UK is entering a deep recession and that further rate cuts may no longer work.Source: BBC News | Business | World Edition | 11 Feb 2009 | 1:07 pm Markets glum on US crisis action, steel in distress (AFP)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 1:06 pm Markets glum on US crisis action, steel in distress (AFP)
Source: Yahoo! News: Business | 11 Feb 2009 | 1:06 pm Peugeot Citroen to cut 11,000 jobsFrance's biggest carmaker, Peugeot Citroen, announces it will slash more than 11,000 jobs in 2009, starting with European plants outside France.Source: BBC News | Business | World Edition | 11 Feb 2009 | 12:56 pm Opening Bell: 02.11.09
""Taxpayers want us to manage our expenses carefully, and provide transparency about how we are putting their money to work to restart the economy," Bank of America Corp CEO Kenneth Lewis says in his prepared remarks. "These expectations are appropriate and we are working to meet them." Toward that end, Lewis says, he and other top bank managers went without bonuses for 2008, while less-senior executives had their 2008 incentive payments cut by an average of 80 percent." Credit Suisse 4Q Loss: $5.2B (NYT) "Shares in Credit Suisse were down 5.5 percent at 29.14 francs at 0831 GMT, while UBS shares, which gained strongly on Tuesday, rose 0.2 percent to 13.64 francs, compared with a 1.7 percent weaker DJ Stoxx European banking index." Nadel Seeks Bail In New York (FINalternatives) "U.S. District Judge Mark Pizzo in Tampa, Fla., rejected Nadel's bid for freedom earlier this month, noting that he was unable to put up a significant bond and that "there is a quantifiable risk and simple house arrest with electronic monitoring doesn't resolve the matter." There Seems To Be A Problem With Consensus (Reuters) You decide. 
Source: Dealbreaker | 11 Feb 2009 | 12:53 pm Bank of England Governor Mervyn King says UK economy is in 'deep' recessionMervyn King delivers clearest signal the bank will do more than cut rates to rescue the economy.Source: Telegraph Finance | 11 Feb 2009 | 12:52 pm Mortgage applications at 8-year lowRead full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 12:47 pm How stimulus affects your walletNow it's time to make a deal on economic stimulus: Key members of the Senate and House are in talks to craft a final bill. They hope to reach an agreement ASAP.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 12:46 pm Big trucks get crushed in crash testSource: Business and financial news - CNNMoney.com | 11 Feb 2009 | 12:39 pm UK jobless total at 1.97 millionUK unemployment reached 1.97 million between October and December, a further sign of the slowing economy, data shows.Source: BBC News | Business | World Edition | 11 Feb 2009 | 12:23 pm Dean Foods profit risesCHICAGO (Reuters) - Dean Foods Co , the largest U.S. dairy company, posted an increase in quarterly profit, helped by lower costs for energy and milk.Source: Reuters: Business News | 11 Feb 2009 | 12:22 pm European stocks mixed after Wall Street rout (AFP)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 12:04 pm U.S. mortgage applications slump to 8-year low (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 12:01 pm U.S. offers $2 trillion bank plan (Reuters)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 11:59 am European banks may need massive bailoutEuropean banks sitting on £16.3 trillion of toxic assets may suffer massive losses according to a confidential Brussels document.Source: Telegraph Finance | 11 Feb 2009 | 11:59 am Global oil demand to sinkRead full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 11:54 am EU offers Spanish car workers aidThe European Commission approves 1.7m euros (£1.5m; $2.2m) in aid for unemployed Spanish car workers hit by globalisation.Source: BBC News | Business | World Edition | 11 Feb 2009 | 11:52 am Bank of England: UK inflation to hit 0.5%Read full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Feb 2009 | 11:48 am Top banker Sir James Crosby quits after whistle-blower claimsThe deputy head of the country's financial watchdog resigned today after Gordon Brown withdrew confidence in him over damaging allegations from a bank whistle-blower.Source: Latest Business News from Times Online | 11 Feb 2009 | 11:45 am New Nokia (NOK) Cuts Not Good For Motorola (MOT) And Apple (AAPL)According to several media reports, Nokia (NOK) says it will cut several hundred employees and temporarily lay off 2,500. Nokia blames the move on the declining market for handsets around the...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 11:33 am WS Atkins to cut 1000 jobsDesign and engineering group to cut approximately 1000 jobs as a result of "uncertainty" in its Middle East and UK markets.Source: Telegraph Finance | 11 Feb 2009 | 11:33 am Why A Sirius (SIRI) Chapter 11 Does Not MatterIt does not matter if Sirius (SIRI) goes bankrupt now. Creditors and bondholders may care. It probably will not be noticed by customers. In that way, it will be like an airline bankruptcy. And,...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 11:22 am Comment: Complete capitulation from Standard Life on Sterling fundSorry no longer seems to be the hardest word to say. In a week when bank bosses have been most 'umble in offering their fulsome apologies Standard Life is the latest financial company to say sorry to its customers.Source: Telegraph Finance | 11 Feb 2009 | 11:18 am Bank may cut rates again to reverse 'deep' downturnThe Bank of England looks poised to cut interest rates again to below the current historic low of 1 per cent as it dramatically downgraded its economic outlook and forecast that inflation would sink below the 2 per cent target for the next three years.Source: Latest Business News from Times Online | 11 Feb 2009 | 11:13 am Why Does Congress Care What Wall St. CEOs Make?Wall St. CEOs are going to be hauled in front of Congress, as they are almost weekly, to defend their use of TARP funds. The subject of what they get paid will almost certainly come up, again. The...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 11:08 am Saving for a pension: Should you top up with a Sipp?Doityourself pension plans are flexible but they have their disadvantages too.Source: Telegraph Finance | 11 Feb 2009 | 10:55 am China Export Drop Signals Deepening US RecessionChina’s exports declined 17.5% to $90.45 billion in January. By some measures, the is the biggest drop in a decade. For the same period, China’s imports plunged 43.1% to $51.34...[[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 247 Wall Street | 11 Feb 2009 | 10:44 am Stocks down at the start of trade (AFP)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 10:39 am US bank bosses to face grillingBosses of eight US banks that have received billion dollar baiil-outs are due to face questions before a Congressional hearing.Source: BBC News | Business | World Edition | 11 Feb 2009 | 10:31 am Standard Life to repay clientsStandard Life is to reimburse 97,000 customers who lost 5% of their money in its Pension Sterling Fund.Source: BBC News | Business | World Edition | 11 Feb 2009 | 10:14 am Taliban suicide bombers hit KabulAt least nine people were killed after Taliban insurgents attacked government buildings in Kabul, officials and witnesses said, in one of the most audacious attacks on the capital since 2001Source: Financial Times - US homepage | 11 Feb 2009 | 10:00 am Unemployment hits 12-year high of 1.97mOverall unemployment in the UK rose by 146,000 to 1.97 million between October and December, the highest level of unemployment since August 1997, after Labour came to power.Source: Latest Business News from Times Online | 11 Feb 2009 | 9:50 am Oil demand to fall at fastest rate since 1982The International Energy Agency has cut this year's oil demand forecast by more than half a million barrels a day and now predicts demand will fall at its fastest rate for 27 yearsSource: Financial Times - US homepage | 11 Feb 2009 | 9:47 am Livni wins narrow victory in electionIsrael was bracing itself for weeks of political gridlock, after voters handed a narrow victory to Tzipi Livni and her centrist Kadima party but left her with no obvious partners to form a governing majoritySource: Financial Times - US homepage | 11 Feb 2009 | 9:46 am Bad debts weigh on Credit SuisseCredit Suisse reports the biggest annual loss in its history due to a fall in business, bad debt and cost cutting.Source: BBC News | Business | World Edition | 11 Feb 2009 | 9:42 am SEC mandates 500 U.S. firms to adopt XBRL (Reuters)Reuters - The U.S. Securities and Exchange Commission said it would require 500 largest U.S. companies to file their financial statements using an interactive format by April 13 in a move aimed at bringing more transparency to U.S. capital markets.Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 9:04 am Ex-HBOS chiefs accused over risk controlsFormer HBOS directors faced fresh accusations on Tuesday of ignoring warnings over its rapid growth from an ex-head of regulatory risk at the bank.As former bosses of the UK bank and its troubled peer...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:36 am ArcelorMittal loses $2.6bn on demand slump$ArcelorMittal, the world's largest steel group, announced fourth-quarter losses of $2.6 billion ($£1.8 billion) today and warned of worse to come as demand for material from the construction and automotive industries continues to plunge.Source: Latest Business News from Times Online | 11 Feb 2009 | 8:18 am Shares fall after US banking planGlobal markets give the $1.5 trillion US bank bail-out plan a muted response, following sharp falls overnight on Wall Street.Source: BBC News | Business | World Edition | 11 Feb 2009 | 8:14 am For some, financial risk-taking may be all in the genesSome people who take big risks on the stock market can blame their genes for their behaviour, work suggests.Source: BBC News | Business | World Edition | 11 Feb 2009 | 8:11 am Signs of a stimulus plan bolder than the New DealTreasury chief Geithner may have been short on specifics, but it's clear that the Obama administration is moving forward with a recovery program far more ambitious than anything FDR ever proposed. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Anger over costly projects as nursing home is set to shutFamilies of residents at the motion picture fund's facility are angered over the approval of such costly plans as new offices and a gym. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Obama campaigns for economic stimulus planSpeaking to a crowd in hard-hit Fort Myers, Florida, the president shifts the spotlight to people who urgently need government assistance. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Online real estate brokerage Redfin to post consumer reviews of agentsRedfin has persuaded 35 agents -- 18 of them in California -- to participate. Although they risk being panned by their clients, the agents also hope the publicity will lead to referrals. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Lockheed lobbies for F-22 production on job groundsThe firm tells Washington that continuing the fighter-jet program would save about 100,000 jobs in the U.S., including in California. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am China's January exports plunge 17.5%Fallout from global financial crisis deepens concerns of rising unemployment China said today that its exports...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Stocks tumble after Geithner unveils financial planThe Dow falls about 400 points and other major indexes slump after the Treasury secretary's announcement. Market watchers cite a lack of specifics in his speech. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Smaller grape harvest could help state's winemakersThe amount of the fruit squeezed in the fall is down about 6% from the previous year, a government report says. That should help keep inventories down and reduce pressure to slash prices. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Anthem Blue Cross agrees to take back clients, pay $1-million fineAs part of a deal with California regulators, the state's largest health insurer will offer new coverage to 2,330 people it dropped after they submitted bills for expensive medical care. ...Source: RSS feed - channel BNPaperBusiness | 11 Feb 2009 | 8:00 am Credit Suisse losses widen to SFr8bnFourth-quarter writedowns of SFr6bn on financial assets dragged the Swiss bank to an annual loss of more than SFr8bn, more than investors had been expecting following a warning at the end of last yearSource: Financial Times - US homepage | 11 Feb 2009 | 7:51 am Ergen offers troubled Sirius a lifeline: reportsNEW YORK (Reuters) - Satellite mogul Charles Ergen has offered to boost the capital and restructure the debt of Sirius XM Radio Inc, which has been preparing for a possible bankruptcy filing, newspapers reported.Source: Reuters: Business News | 11 Feb 2009 | 7:51 am Australian stocks: Market closes downPERTH - The Australian stock market closed in negative territory amid waning investor confidence after US stocks tumbled over 4 per cent in the biggest sell-off since December. The benchmark S&P/ASX200 index was down 14.3 points,...Source: New Zealand Herald - Business | 11 Feb 2009 | 7:06 am NZ stocks: Market down after big US fallsThe New Zealand share market fell today after a big fall in United States equities affected markets throughout the Asian time zone. US stocks tumbled 4.62 per cent as a lack of detail in the government's plan to bolster the financial...Source: New Zealand Herald - Business | 11 Feb 2009 | 6:47 am Congress, White House seek final deal on stimulus (Reuters)
Source: Yahoo! News: Business | 11 Feb 2009 | 6:20 am NZ currency: Dollar drops backThe New Zealand dollar fell as investors took shelter in the greenback and yen amid concerns Washington's bank rescue plan will not revive the ailing financial sector. After climbing to a three-week high above US54.40c early yesterday,...Source: New Zealand Herald - Business | 11 Feb 2009 | 5:59 am China exports at lowest level in a decadeChinese exports and imports slumped in January for the third month in a row, underlining how badly the world's third-largest economy has been hit by the global financial crisisSource: Financial Times - US homepage | 11 Feb 2009 | 5:33 am The Tortoise Wins Again (Consumer Action)"WE DON'T LIKE SEXY STORIES, BUT WE DO LIKE consistent ones, especially when it comes to the dividend." That's how Matthew McCormick, a 38-year-old portfolio manager and banking analyst at Bahl & Gaynor Investment Counsel, describes his firm's approach. It has served the Cincinnati-based money manager well over the years -- particularly during bear markets like the one that now has stocks firmly in its grip. Founded in 1990, Bahl & Gaynor typically invests its $2.5 billion of assets in blue-chip, large-capitalization growth stocks issued by companies that make stuff people need rather than things they want. These would include Procter & Gamble (PG) and Johnson & Johnson (JNJ). Such companies go in and out of market favor -- as the consumer deleverages, they are in vogue again -- but tend to provide market-beating total returns with less volatility over the long haul, due in great part to steady growth and fat dividends, regularly increased. For Bahl & Gaynor, flashy but short-lived earnings gains don't cut it. "We're the turtle in the growth area, as opposed to the hare," says McCormick. "Capital preservation is our No. 1 objective. Second, we want to grow, and income is third." B&G ISN'T A FLAVOR-OF-THE-MONTH SHOP. In health care, for example, the firm prefers needles to nanotechnology, and in the consumer sector, diapers over iPods. The money manager does best in tough markets: In 2000, 2001 and 2002, Bahl & Gaynor returned 3.8%, minus-7.8% and minus-12.9%, respectively, net of fees; the Standard & Poor's 500 lost 9.1% in 2000, 11.9% in 2001, and 22.1% in 2002. Yet in 2003, as the U.S. exited a recession and bear market, Bahl & Gaynor's quality-growth strategy was up about 20%, versus the index's 29% rise. All clients, typically high-net-worth individuals or institutions such as foundations, are managed as separate accounts. Results over the long term are similar: Bahl & Gaynor posted a 1% average annual total return for the seven years ended 2008, and 0.6% for the 10 years, outperforming the S&P's declines of 1.5% and 1.4%, respectively. In a tough 2008, when the S&P plummeted 37%, Bahl & Gaynor was down less than 25%. Fund managers who are down, say, 50% for the past year will need a 100% return just to get even, so they will have to take on more risk by "swinging for the fences," McCormick says. The Jesuit-trained native of Kettering, Ohio, likens his firm's approach to the champion Cincinnati Reds of the 1970s, known as the Big Red Machine. "We would rather have singles and doubles and just keep the ball in play," says McCormick -- who is a rugby enthusiast, too. When the economy and stock market recover, "we will participate, but not as much as the high-flyers," he says. The money manager's philosophy is growth at a reasonable price -- with a little value thrown in. "We are from Cincinnati, OK? We aren't going to overpay...[and] we want companies that can double their earnings every five to seven years, regardless of the economic environment," he says. B&G also seeks companies that have raised their dividends each year for the past five. Such companies tend to be mature, have been seasoned in recessions and bear markets, and have strong free cash flow and balance sheets, offering a cushion in tough times. Unlike share buybacks, McCormick adds, dividends hold the CEO's feet to the fire, because they must be maintained "or you get whacked. In our quality-growth portfolio, none of our holdings has had a dividend cut." STOCK SELECTION IS DONE AS TEAMWORK, says McCormick, who has been with Bahl & Gaynor since August 2003: "I'm just one of 13 oars in the water." The firm is owned by those 13 portfolio managers. Out of a universe of 15,000 stocks, there are only about 250 that fit Bahl & Gaynor's basic template. The investment committee whittles that list down to 45 to 50 mostly U.S. names for clients. It is a low-turnover list, and the Sell discipline is straightforward. A reduction in the rate of dividend growth is "a tremendous signal to us," McCormick says. Nor does B&G care for mergers. "Managing a company is tough, but integrating another one is increasingly difficult. We would rather sit it out and come back after the kinks are worked out," McCormick says. The firm held shares of Rohm & Haas (ROH), for instance, when Dow Chemical (DOW) bid for it, but sold before the deal ran into trouble. Bahl & Gaynor's largest and oldest position is a hometown stock, household-goods giant P&G. Consensus sees P&G increasing earnings about 12% for the fiscal year ending June 2010, and sports a 3% dividend yield. Procter & Gamble has raised its payout every year for the past 52 years, McCormick notes. It will face margin pressures and tougher competition this year, but people use diapers, detergents and other P&G products every day. P&G also will be able to expand its brands, he says, noting that "the management team is superior, and they have weathered the storm well." A more recent pick, with the latest purchases made in October 2008, is McDonald's (MCD), the world's biggest fast-food restaurant chain. It has improved its product offerings while many competitors stood still, and could gain in a recession as people trade down in their restaurant choices. Maybe a steak costs too much now, he says, but a burger and Happy Meal for the kids is a nice break. With McDonald's stock yielding 3.5% and 10-year Treasury bonds around 2.9%, "over a 10-year period, I'm willing to bet that McDonald's is going to be a superior investment," McCormick says. The second-largest holding is Johnson & Johnson, which looks much like a health-care mutual fund without riskier biotechs and health-maintenance organizations in its portfolio, McCormick says. It isn't just a place to hide, but with the U.S.'s aging demographics and product-patent issues at companies such as Merck (MRK) and Pfizer (PFE), which Bahl & Gaynor doesn't own, J&J is a stock that will keep getting better, he predicts. A 3.2% yield doesn't hurt, either. Another health-care pick is Becton, Dickinson (BDX), which makes basic medical supplies like drug-delivery systems, syringes, and diagnostic-screening products, "the bricks-and-mortar area of the health-care industry." As such, it isn't in the cross-hairs of politicians. The stock, up 12% since Christmas -- a feat few names have managed, as markets have been dragged downward on the bad recent economic news -- has a yield of 2%. Generally, Bahl & Gaynor eschews consumer-discretionary stocks, and Best Buy (BBY) and Apple (AAPL), where earnings growth is inconsistent, and the company is more dependent on economic growth and new applications. One exception is footwear maker Nike (NKE), whose stock is down 36% and yielding 2.2%. It does well in a recessionary environment, McCormick says, and "has had the ability to grow its earnings. Kids need shoes, and shoes wear out. Its pricing issues aren't as bad as others'. It is the dominant brand." B&G bought the stock at more than 60 (it's now 48) in the last two years. One key move that helped portfolio performance last year was the sale of many financial stocks, such as Bank of America (BAC) and Cincinnati Financial (CINF), in the late summer of 2007, taking the firm's position in financials down to an 8% weighting from 22%. Stocks such as Northern Trust (NTRS) and US Bancorp (USB) remain. Some banks are wholly dependent on government life-support to survive, McCormick says: "It is going to take years, not months, to get off that ventilator." The most recent financial sold was Wells Fargo (WFC), amid concerns about integration risk due to its purchase of Wachovia. In place of Wells, Bahl & Gaynor bought shares of AT&T (T) and Florida utility FPL Group (FPL) -- another stock up since Christmas -- with yields of 6.7% and 3.4%, respectively. B&G's core philosophy explains the switch: Americans won't be taking out so many mortgages in coming months, but they will need to communicate, and will need electricity and natural gas, too. As a result, earnings streams for both types of utilities are consistent. And while traditionally telecoms and utilities are overregulated, McCormick says, these are safe plays now; certainly in the case of AT&T, regulations will be less onerous than coming financial regulations. In an uncertain future, the focus should be on quality stocks, says the portfolio manager. Even when the bull returns, he argues, odds are investors first will gravitate to big, stable growth stocks like the ones Bahl & Gaynor favors. At some point, "when we come out of this recession, people are going to drop some of these stocks like hot potatoes" to rush into more speculative names, he concedes. But unlike those sexier shares, Bahl & Gaynor stocks won't have to make up as much ground to outperform again. Then the next bear market will show, as in Aesop's Fables, that the tortoise still beats the hare. Except that, in Bahl & Gaynor's case, it isn't a fable. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 11 Feb 2009 | 5:00 am Credit-Card Issuers: Buy Something or Else! (Consumer Action)One of the biggest causes of the financial crisis was that Americans were borrowing (and spending) more money than they could afford to pay back. So how are credit-card issuers reacting to consumers’ attempts to live a more financially responsible lifestyle? They’re threatening to cut their credit cards off if they don't spend enough. Loretta Maxwell of Troy, Mich., thought her credit score of 790 buffered her against most of the fallout of the credit crunch. When Chase (JPM) closed her $6,000-limit card in December without warning after two years of inactivity, she called to fight it. She was unsuccessful. “If you’re not using it, they entice you to do so, and then the moment you don’t spend enough, they cut your limit,” she says. (Chase says it is standard practice is to review inactive accounts. “Inactive cards with large open credit lines present a real risk of fraudulent use and large potential liabilities for Chase,” says spokeswoman Stephanie Jacobson.) Maxwell’s experience is far from an isolated incident. Most major issuers, including Chase, Bank of America (BAC), American Express (AXP) and Citibank (C) have been slashing credit lines and closing the accounts of those who don’t spend on their card regularly. While these issuers are required to notify you in writing of an account closing, there’s no requirement that they do so in advance. Even when they do give early notice, the only way a cardholder can stop their account from getting shut down is to start spending again. In December, Discover (DFS) reported that it closed three million accounts during 2008 due to inactivity, and plans to cull up to two million more. A Discover spokeswoman says the issuer is constantly reevaluating cardholder’s credit and assessing whether they have the most appropriate credit line and product. Capital One (COF) is suspending accounts that have been inactive for at least a year, warning account holders they only have 60 days to redeem their rewards. “Some of these accounts had literally never been used,” says spokeswoman Pamela Gerard. A spokeswoman for Bank of America, meanwhile, says the bad economy prompted it to close accounts with zero balances that have been inactive for more than a year. American Express spokeswoman Lisa Gonzalez says it periodically reviews inactive accounts for cancellation. Citibank did not respond to requests for comment. From a business perspective, cutting off certain customers is a smart financial move, says Sanjay Sakhrani, an analyst with investment bank Keefe, Bruyette & Woods. Closing rarely-used accounts lowers a card issuer's risk profile by keeping their potential liabilities (i.e., the amount of credit available they extend to cardholders) from outweighing their assets. Inactive accounts also cost the issuer money to maintain, without providing the benefit of income from interest or merchant fees, he says. For consumers, however, account closings can be devastating -- especially to their credit score. Your credit utilization ratio – the amount of your debt in relation to the amount of your available credit -- comprises 30% of your score, says Craig Watts, a spokesman for Fair Isaac Corporation (FIC), the company that calculates and issues the FICO credit score that most lenders use. So when an account is closed, you have less credit available to you -- and the ratio immediately jumps higher. A person with a solid credit score of 720 or so, whose utilization ratio jumps from 35% to 75% after one of their accounts is closed is likely see their score drop by “several dozen points,” to somewhere in the 600s, he says. That’s a far cry from the 760 (or higher) consumers need to get the best rates from lenders. One thing that somewhat softens the blow is that FICO factors in closed accounts when calculating the longevity of your credit history, which accounts for 15% of your score. While lenders may make a note on your report indicating whether the account was closed by them or you, the information isn’t used in the scoring formula, says Watts. Ironically, an excellent credit score can actually serve as more of a bulls-eye than a shield, says Dennis Moroney, a research director and senior analyst for consulting firm Tower Group. He says banks figure they can limit cardholder backlash by targeting consumers with few debts and plenty of other accounts. That way, a closed account won't have as much of a detrimental effect on their creditworthiness. Even years of loyalty and regular spending won't spare some cardholders. David Good of Houston, used to be devoted to American Express, with which he had two credit cards: an unlimited charge account and a $7,500 revolving account. Yet a solid credit score, eight years of on-time payments and fairly frequent purchases on the cards -- including more than $100,000 last year alone -- weren’t enough to save his accounts. In December, Good received a written notice that the issuer had closed both due to “low activity in the past six months.” “I was shocked,” he says. “They lost my trust, totally.” (American Express declined to comment on Good's or any other individual's accounts.) New Yorker Veronica Eady Famira was vacationing in Germany when she discovered that her $1,500-limit Delta (DAL) SkyMiles card from American Express had been shut down. “I must have spent $300 in cellphone charges calling banks,” she says. “I was pretty stranded.” Adding insult to injury, Famira had just earned a free companion ticket on the card valued at up to $400 for a domestic flight – now she can't redeem the ticket. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 11 Feb 2009 | 5:00 am Preferred Stock Isn't Always Preferable (Ticked Off)
It’s an old saw but one worth repeating, especially in today’s market: If it sounds too good to be true, it probably is. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 11 Feb 2009 | 5:00 am Obama pushes stimulus, sees no easy out for banks (Reuters)
Source: Yahoo! News: Stock Markets News | 11 Feb 2009 | 2:18 am 10,000 jobs go at General MotorsGeneral Motors is planning to slash another 10,000 jobs this year, saying the cuts are unavoidable with a government restructuring deadline looming and industrywide sales in one of the worst downturns in history. The Detroit-based...Source: New Zealand Herald - Business | 11 Feb 2009 | 1:20 am Business Briefs - TuesdayAecom meets, backs '09 outlook. The engineering and design firm met Q1 EPS views for a 31% gain to 38 cents. Revenue rose 35% to $1.45 bil, below...Source: Investor's Business Daily: BUSINESS | 11 Feb 2009 | 1:01 am Gear Maker's Hardware Speeds Data Along Cellular NetworksSmart phones are getting smarter. More and more customers want more messaging, video and other data delivered to their handhelds.Source: Investor's Business Daily: BUSINESS | 11 Feb 2009 | 1:01 am In Brief - TuesdayCubist Pharma (CBST), a biotech, fell 15.1% after generic giant Teva Pharmaceutical (TEVA) filed for approval for a copycat version of its...Source: Investor's Business Daily: BUSINESS | 11 Feb 2009 | 1:01 am Trends & Innovations - TuesdayDevices unlocking seized phonesSource: Investor's Business Daily: BUSINESS | 11 Feb 2009 | 1:01 am After The Close - TuesdayCERNER (CERN), a health care IT services firm, said its Q4 EPS rose 17% to 65 cents ex items, beating views by 4 cents. Revenue rose 18% to $466...Source: Investor's Business Daily: BUSINESS | 11 Feb 2009 | 1:01 am US unveils $2,000bn bank clean-upUS shares tumbled as investors gave a thumbs-down to plans by the Obama administration to deploy up to $2,000bn to clean up toxic assets in the financial system and restart credit marketsSource: Financial Times - US homepage | 11 Feb 2009 | 12:52 am Bank chiefs draft their Congress apologiesWall Street leaders will confront mounting public anger at their banks' role in the crisis by telling an influential Congressional committee that they are using government money to kick-start the economy and lend to companies and consumersSource: Financial Times - US homepage | 11 Feb 2009 | 12:34 am ANZ National cuts credit card interest ratesANZ National Bank is lowering the interest rates it charges on credit cards. The move comes at a time that banks have been criticised for not cutting interest rates as fast as the central bank has cut interest rates, though banks...Source: New Zealand Herald - Business | 11 Feb 2009 | 12:30 am GE to inject finance arm with $9.5bn cashGeneral Electric plans to shore up the balance sheet of its finance arm, GE Capital, by diverting the remaining $9.5bn in cash from the conglomerate's stock sale last yearSource: Financial Times - US homepage | 11 Feb 2009 | 12:23 am Jobcentres given new mission to save the middle-class joblessAn overhaul of unemployment services to cope with the rapidly rising numbers of out-of-work professionals has been ordered by ministers as the jobless total hits two million.Source: Latest Business News from Times Online | 11 Feb 2009 | 12:01 am Any job is better than taking time out to travel, graduates toldUnemployed graduates should be prepared to stack shelves or work in a bar rather than travel the world or undertake further study, according to a report that predicted the first fall in recruitment in six years.Source: Latest Business News from Times Online | 11 Feb 2009 | 12:01 am Four-day week spreads to the City as firms prepare for recessionThe four-day week has now spread from the factory floor to the heart of the City, freezing pay among white-collar workers and forcing top-earning executives into the slow lane.Source: Latest Business News from Times Online | 11 Feb 2009 | 12:01 am UK trade gap narrows after imports declineA steep drop in imports as the recession eats into the national appetite for goods from overseas triggered a bigger-than-expected fall in Britain's trade gap in December.Source: Latest Business News from Times Online | 11 Feb 2009 | 12:00 am Koskinen Says Demands on Freddie Could Exhaust U.S. AidSource: Bloomberg - All Podcasts | 10 Feb 2009 | 11:50 pm Profits down 11pc at ASB BankASB Bank's profits have fallen 11 per cent, with the bank reporting a $238m operating profit for the six months to December 2008. The fall includes a $41 million accounting loss that stems from applying new global accounting rules. Profits...Source: New Zealand Herald - Business | 10 Feb 2009 | 11:45 pm More fights before stimulus bill signedThe Senate passed its fiscal stimulus bill, clearing the way for Congress to thrash out final legislation for President Barack Obama to sign into lawSource: Financial Times - US homepage | 10 Feb 2009 | 11:21 pm Infrastructure package positive, but 'more needed'The Government's announcement that it is accelerating nearly $500 million of publicly funded building projects is a positive and encouraging step, says Goldman Sachs JBWere economist Shamubeel Eaqub. Along with the $480m small...Source: New Zealand Herald - Business | 10 Feb 2009 | 11:00 pm How the major market indexes fared Tuesday (AP)
Source: Yahoo! News: Stock Markets News | 10 Feb 2009 | 10:52 pm Obama plan holds off on foreclosure rescue details (AP)
Source: Yahoo! News: Business | 10 Feb 2009 | 10:45 pm NZ stocks: Market stumbles after big US fallThe New Zealand sharemarket is down about 1 per cent after a big fall on Wall St. Just before 1pm, the benchmark NZX-50 index was steady at 2721, down 28 points from yesterday's close. Telecom was down 4c early to 259, Contact...Source: New Zealand Herald - Business | 10 Feb 2009 | 10:45 pm Retail card transactions fall once moreRetail spending through electronic card transactions (ECT) fell for the third consecutive month in January. Figures published today by Statistics New Zealand (SNZ) show ECT spending in the retail industries fell by a seasonally...Source: New Zealand Herald - Business | 10 Feb 2009 | 10:40 pm Wal-Mart cutting 700-800 jobs at headquarters (AP)
Source: Yahoo! News: Business | 10 Feb 2009 | 10:23 pm Wachovia's Wren Recommends Financial ETFsSource: Bloomberg - All Podcasts | 10 Feb 2009 | 10:12 pm US stocks: Market 4pc down on 'rescue plan'US investors are frustrated with the Obama government's latest bank bailout plan - and showing it by unloading stocks. The Dow industrials index fell 381.99, or 4.62 per cent, to 7,888.88. The Standard & Poor's 500 index fell...Source: New Zealand Herald - Business | 10 Feb 2009 | 10:10 pm Write-Offs: 02.10.09$$$ Hedge-Fund Managers Help Raise $1.7 Million at backyard BBQ [Bloomberg] $$$ Birthday Boy! [Cityfile] $$$ Mark Cuban's Plan To Fix The Economy With His Money [SAI] $$$ DJ Dick Parsons [Page Six]
Source: Dealbreaker | 10 Feb 2009 | 10:05 pm Holzer Sees a Lot in Common Between Lincoln, ObamaSource: Bloomberg - All Podcasts | 10 Feb 2009 | 9:36 pm Indicator: The End Of Free Coffee
Good news for Starbucks. Jason D'cruzJason writes: Here's an indicator for you: $1.65. That's the cost of procuring a small coffee at the Harvard Barker Center after the recession made it "impossible" for Harvard to pay for free coffee for faculty or students. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 10 Feb 2009 | 9:20 pm The Markets SolutionUpdated to reflect the latest bailout plan from Washington. Treasury Secretary Timothy Geithner announced Tuesday that the government will expand its efforts to rescue the U.S. banking system from its huge, and rapidly growing, overhang of "toxic" assets. The good news appears to be an inclusion of some encouragement to the private sector to invest alongside the government. Unfortunately, early indications are that the scale and true risk of private capital will be very limited, putting private investors in a passive role in those elements where they can make the greatest contribution—valuation and work-out management. If so, it's likely that whatever the new structure is ultimately labeled—a "bad bank" or "aggregator" or "investment fund"—it will fail for the reasons the earlier approaches have failed—lack of transparency, of competition, of clear principles and incentives, and of true private at-risk capital. As such, the new program would be yet another expensive lost opportunity to restore the private financial sector and its essential flow of funds to enterprise and consumers. We would suggest an alternative approach: make the participation of private capital the centerpiece of any bailout plan, using it in full partnership with government funds to buy the toxic assets through a broad group of newly capitalized secondary financial institutions. We believe the government can more successfully use its capital by jump-start shuttered secondary asset markets—and thereby creating the necessary asset clearing pricing for the expansion of new credit—than by pumping ever more capital into existing primary institutions that are failing and already functionally insolvent. By establishing these new "TARP Investment Companies" ("Tarpics" to borrow the most recent bailout acronym), the government would achieve faster and more efficient valuation of the toxic assets, a greater range of options for banks seeking liquidity, significant support for restarting the critical secondary markets, and proper incentives for managers to maximize toxic asset value. Done properly, it would reduce both the amount of taxpayer funds required and the duration of the rescue. The original TARP legislation of last fall envisioned the government buying toxic assets, but that idea was quickly set aside for a fundamental problem: How and at what price should the government purchase bad loans and other toxic assets? If the price were at "market," all financial institutions would suffer meaningful asset impairments, and many would become instantly technically insolvent. Of course, any price above "market" would have come at taxpayer expense, as a real subsidy to the financial sector. In addition, bad assets are diverse and disparate, so the original idea of a seller's auction had no practical meaning. The asset-pricing problem remains insolvable, but, we argue, it's essentially academic. If banks are to resume their role as loan generators, these assets must be removed from their oversight, and the sooner the better. At any reasonable asset valuations, many of the major institutions are already essentially insolvent and require recapitalization, regulatory forbearance, or both. Hiding an implicit capital infusion in an administered price for toxic assets further muddles the accuracy of bank accounts and prevents the re-emergence of asset markets. Only greater transparency and confidence in the restoration of true asset markets will entice private capital back to the banking sector. Far better to utilize decentralized private capital and resulting competition, either through auctions or negotiated transactions, to push up the price of the toxic assets. By some estimates, there is upwards of $400 billion of private capital available either in limited partnership fund commitments (which will be surrendered by general partners if not utilized in the next few years) or with institutions searching for a way to capitalize upon the distressed loan markets. Instead of a centralized TARP fund or guarantees against losses, the government should encourage decentralization and clear capital commitments, offering to match the equity capital provided by any reputable for-profit managers in forming these new investment vehicles. The current structure anticipates private capital sources backing one large institution, a model that fails to capture the skills of various work-out and turnaround managers, each accustomed to leading their own investment transactions and restructuring efforts. If necessary, the government could offer to match Tarpic private equity on a two-to-one, three-to-one, ten-to-one or greater basis, subject to some minimum threshold investment by private investors. It could also lever equity returns by purchasing subordinated debt of the new entities. The key is speed, simplicity, and decentralization; the plan will marshal private capital quickly only by establishing a clear template (including meaningful private investment minimums) under which the government will match investors' funds in creating the Tarpics. This approach is not without precedent. The Small Business Administration has a long-standing program of partnering with private equity managers to deploy capital to small businesses through Small Business Investment Companies, or SBICs. Various structural protections for the government in the SBIC program, such as fees for capital commitments, redemption periods and priority of capital, can be incorporated as appropriate as private capital begins to compete for access to Tarpic capital. The key to our plan is that the government would be utilizing its TARP capital in the manner most likely to maximize the value of the toxic assets and the speed of their ultimate resolution. By contrast, establishing the federal government as lead buyer of bad loans and securities will invariably politicize the clean-up of toxic assets. Instead of bringing to bear the creativity of private managers in maximizing value, the government's so-called bad bank will at least have to navigate the political optics of—if not the actual political interference in—its decisions. Imagine trillions of dollars in bad residential and commercial real estate mortgages, consumer loans, and corporate debt from every region of the U.S. being worked out by a federal agency under the interested eyes of hundreds of congressmen, senators, and governors, plus unlimited numbers of mayors and political contributors. At best, an aggregator bad bank or fund will be hampered by the inevitable oversight questions—as to dispositions, corruption, choice of contractors, conflicts of interests, and "fair" representation of interest groups in the process. At worst, political interference and genuine corruption will increase the cost and timetable of the bailout. Whatever one may think of the theory of a government bad bank, in practice a bureaucracy managing trillions of dollars of heterogeneous assets is a recipe for disaster, and a likely drag on the re-establishment of functioning markets and new lending for many years. A government bad bank will further crowd out private capital when we need to encourage its deployment to restart lending. To date, bailout efforts have been focused on major banks and other large traditional financial institutions. The government's efforts may have prevented a complete seizure of credit markets, but they certainly have failed to re-start credit growth. Perhaps this is no longer a realistic goal for traditional financial institutions. Before our year of collapses, banks increasingly made mostly loans they could sell; it was the vigorous secondary market that provided the assurance of liquidity and valuation needed for the banks to fulfill their role of primary generator of assets. The Tarpic plan we propose will re-start the secondary market that is now fundamental to the health of the entire financial sector. These new Tarpics may well become the successor healthy institutions that ultimately drive new credit growth. The government's goal in any effort to work out toxic assets must be to save our financial system, not to save particular banks. Saving the system means restoring as quickly as possible and at lowest possible costs to the taxpayers the flow of credit to businesses and consumers. Tarpics will be a key first step in the essential process of coaxing private capital back into the financial system for risky assets. Most importantly, for us taxpayers, it will decentralize the monumental task of financial cleanup, offering us our best hope of maximum recovery, quickest resolution, and lowest cost.Related Links The Markets Solution Fannie Mae's Last Stand Defending TARP Source: Portfolio.com: Top 5 | 10 Feb 2009 | 9:00 pm Kearns Goodwin Says Lincoln Sought Diversity of AdvisersSource: Bloomberg - All Podcasts | 10 Feb 2009 | 8:59 pm I Believe The Term Is 'Rectal Exam,' Thank You Very Much
Pandit was apparently so uneasy about his possible appearance that at first he told committee staffers he had a conflict: A long-planned trip to China. The committee, which has subpoena power, told Pandit's people that it would probably be a smart move if he reconsidered his travel plans. "We said 'Look, this would appear a little odd if all your peers are all going to be here and you're not," said Steven Adamske, a spokesman for the committee. "We said 'It's a good idea for you to be here, too.'" The second is that these guys feel like scapegoats! and someone doesn't know his rectals from his anals (and for the offense should be summarily dismissed):
Source: Dealbreaker | 10 Feb 2009 | 8:48 pm Hooper Sees U.S. GDP Contracting 6.5% in First QuarterSource: Bloomberg - All Podcasts | 10 Feb 2009 | 8:46 pm Samuelson Says Stimulus Gives Delayed Economic ImpactSource: Bloomberg - All Podcasts | 10 Feb 2009 | 8:43 pm Keller Says GM Over-Staffed for Its Entire HistorySource: Bloomberg - All Podcasts | 10 Feb 2009 | 8:42 pm I'm Cracking Your Safe... I'm Cracking Your SafeFrom the mail bag. Annoying animation after the jump.
Source: Dealbreaker | 10 Feb 2009 | 8:30 pm Bonus Watch '09: UBSThe tax specialists are apparently doling out bonus ranging from 0 to 10k to associate analysts in equity research today. Down 90 percent on the whole, not 80, like they would have you think. Related: Bonus Watch '09: You Get NOTHING (Not Even Toxic Waste)
Source: Dealbreaker | 10 Feb 2009 | 8:22 pm New CNBC Broadcast Book Guideline: When Showing Tim, Show Industrials
Source: Dealbreaker | 10 Feb 2009 | 8:03 pm Progress Report
Earlier: We've Reached An Agreement
Source: Dealbreaker | 10 Feb 2009 | 8:01 pm Take... These Broken WingsCarlyle is going to have to do without their Gulfstream 450, apparently. Those, of course, are not its only problems. In December, the firm announced plans to slash 10 percent of its staff--the first layoffs in Carlyle's 20-year history--and it also said it planned to close down its Silicon Valley office. Tough times for the mile high club. The Corporate Jet Exodus: Welcome, Carlyle Group! [Cityfile]
Source: Dealbreaker | 10 Feb 2009 | 7:44 pm Layoffs Watch '09: Lehman Brothers' Family Jewels Slammed In DrawerThe gangrene that has all but killed Lehman has finally spread to otherwise healthy nether regions. Apparently there were deep cuts at Neuberger Berman this morning. Waiting for comment from Einhorny. Stand by. Update: We're told that the reduction in headcount was mostly relegated to "support staff" and, percentage-wise, was single digits.
Source: Dealbreaker | 10 Feb 2009 | 7:17 pm Striving to keep familiar brands freshKraft Foods, the company that invented pasteurized processed cheese food is losing market share to lower-priced competitors. Kai Ryssdal talks with CEO Irene Rosenfeld about how Kraft is trying to put the bounce back in its cheese business.Source: Marketplace | 10 Feb 2009 | 6:30 pm Not A Nation Of QuittersOne of my favorite statistics pinged in today, courtesy of the Bureau of Labor Statistics. The BLS released the latest Job Openings and Labor Turnover Survey for December, including the quits rate. "Quits" account for people who leave a job for any reason other than retiring, being fired or dying. Essentially, it measures how willing or able people are to change jobs. Back in December 2006, quits made up 61 percent of all changes in job status. The BLS says it's goodbye to that: "Quits dropped to only 40 percent of total separations in December 2008, a new series low, as layoffs and discharges increased substantially." In recent months, the quits rate has been at its lowest since the government started tracking it in 2000. The rate for December ticked up a tenth of a percent to 1.5 of the workforce. (You know who never quits? The government employee, at .5 percent overall.) » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 10 Feb 2009 | 6:24 pm Bonus Watch '09: You Get NichtsNo love from the Germans: second and third year Structured Products analysts at Deutsche Bank receiving stub bonuses in July are said to have gotten $0. And in a fit of perverse genius from the higher-ups, third years were promoted to associates and given zero increase in base. For their next trick, promotion to CEO, which, after the next set of salary caps, will mean clocking out at $35k.
Source: Dealbreaker | 10 Feb 2009 | 6:23 pm And the stability plan bill goes to...The government's plan to stabilize the financial system may cost more than a trillion dollars in new spending. But there's less than $350 billion left in the original bailout. As Steve Henn reports, private investors and the Federal Reserve may be footing the bill.Source: Marketplace | 10 Feb 2009 | 5:28 pm Global cooperation is way to recoveryU.S. Treasury Secretary Timothy Geithner recently criticized China for currency manipulation. But with many of the world's advanced economies in financial crises, commentator Helen Popper says now is the time to cooperate with them to boost our own.Source: Marketplace | 10 Feb 2009 | 5:28 pm Chinese investors cash in on crisisThe global financial crisis is creating buying opportunities for investors with cash. Chinese investors showed they have deep pockets this week in two mega-deals. Scott Tong reports.Source: Marketplace | 10 Feb 2009 | 5:28 pm Money for Gaza repairs in short supplyThere's a lot to be rebuilt in the Gaza Strip after the Israeli military operation -- roads, sewers and homes were all destroyed. But the money to pay for those repairs is in short supply in Gaza. Daniel Estrin reports.Source: Marketplace | 10 Feb 2009 | 5:28 pm Under scrutiny, banks get seriousWith all the scrutiny banks are getting these days, the industry is being extra cautious. Goldman Sachs is moving its annual investor conference from Las Vegas to San Francisco, the latest sign of a new, more serious era on Wall Street. Amy Scott reports.Source: Marketplace | 10 Feb 2009 | 5:28 pm Web site to track TARP spendingTo protect taxpayers, Treasury Secretary Timothy Geithner promised more accountability and transparency. So a new Web site will be launched to track TARP spending. But will it work? Nancy Marshall Genzer reports.Source: Marketplace | 10 Feb 2009 | 5:27 pm Banks seeking aid to get stress testThe Treasury Department announced that banks with more than $100 billion in assets will be required to undergo a comprehensive stress test to check their viability before receiving more aid. But can a test really tell us how healthy these banks are? John Dimsdale reports.Source: Marketplace | 10 Feb 2009 | 5:27 pm Timothy Geithner Announces New Financial Stability Plan
Timothy Geithner today explained the government’s new financial stability plan (also found here: http://financialstability.gov/). From the NYT: Mr. Geithner laid out a multi-pronged program that will include several major components: — A new program, jointly run by the Treasury and the Federal Reserve, with financing from private investors, to buy up hard-to-sell assets that have bogged down banks and financial institutions for the past year. The program, often described as a “bad bank,” is expected to spend $250 billion to $500 billion. — Direct capital injections into banks, which would come out of the remaining $350 billion in the Treasury’s rescue program. — A vast expansion of lending program that the Treasury and Federal Reserve had already announced, which is aimed at financing consumer loans. The two agencies had originally announced their intention to finance as much as $200 billion in loans for student loans, car loans and credit card debt. Instead the program will be expanded to as much as $1 trillion. A separate $50 billion initiative to enable millions of homeowners facing imminent foreclosure to renegotiate the terms of their mortgages is to be announced next week. The plan is calibrated to work on multiple fronts, with promises to invest billions of dollars in scores of ailing banks and creation of a new institution to relieve bank balance sheets of their most troubled assets. It will also renew a legislative proposal giving bankruptcy judges greater authority to modify mortgages on more favorable terms to borrowers and over the objections of banks. The plan stops short of strict executive compensation limits or replacing company management. Why is the government creating a bad bank–but keeping bad bankers? Who are the “private investors” that are going to buy up the assets that bog others down? He also failed to address the credit default swap system, which makes me wonder about whether the government will address the shadow banking system at all. Why aren’t they bringing back Glass-Steagall? It’s a plan, but it doesn’t purport to do anyone justice. I hope the government’s new website (http://financialstability.gov/) allows for comments. Source: Business Pundit | 10 Feb 2009 | 4:56 pm The Geithner PlanU.S. Treasury Secretary Tim Geithner revealed his strategy for fixing the nation's financial institutions. In a speech today, Geithner listed initiatives designed to ease this essential pair of problems: Instead of catalyzing recovery, the financial system is working against recovery. And at the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it. The Geithner plan includes a so-called bad bank (though he didn't call it that himself), a $500 billion to $1 trillion public-private partnership that would buy up toxic assets from banks and work to sell them off; up to $1 trillion for an increased flow of credit for consumers and businesses through the TALF; and a $50 billion program to ward off foreclosures, details to come. A pair of reactions, after the jump. From Marc Chandler, currency strategist at Brown Brothers Harriman: Obama's presidential campaign was regarded as near flawless, but over the last few weeks, it has been underwhelming, and today's delayed Treasury presentation is more of the same. The details were largely leaked which essentially sacrifices any element of surprise. There seems to be little that is bold or new that will break the negative psychology. On top of that there is concern that the fiscal stimulus measures, which were ostensibly the reason the Treasury's announcement was delayed a day, may be delayed for another week or so. The Financial Services Roundtable, which lobbies for banks and credit card companies, liked what it heard: The plan is bold and large enough to address the problem. By helping banks, small business, and consumers, it speeds targeted relief to all sectors of the economy. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 10 Feb 2009 | 4:50 pm Herrmann Sees Higher 10-Year Treasury Yields This YearSource: Bloomberg - All Podcasts | 10 Feb 2009 | 4:39 pm Schnautz Sees 10-Year Treasury at 3.5% By End of YearSource: Bloomberg - All Podcasts | 10 Feb 2009 | 4:32 pm What's It Worth To You, III
The darker the state, the greater percentage of schools marked for an upgrade in the stimulus bill. Click for full graphic, with key.More charts based on White House data about the impact of the stimulus on each state. One category of stimulus spending is aimed at improving public schools. I divided the numbers provided in the White House report by the total number of schools in each state, which is provided by the Department of Education. You see a wide variation from place to place. For example, 3.4 of schools in Minnesota and 18.4 percent of schools in New York will be provided with the "the labs, classrooms and libraries" necessary to ensure competitiveness in the twenty-first century. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 10 Feb 2009 | 4:28 pm Haynes Says Equities Are Historically `Cheap'Source: Bloomberg - All Podcasts | 10 Feb 2009 | 4:27 pm UK Bank Chiefs Apologize for Failure
The former bosses of the two biggest UK casualties of the banking crisis have apologised “profoundly and unreservedly” for their banks’ failure. Former Royal Bank of Scotland chief executive Sir Fred Goodwin told MPs on the Treasury Committee he “could not be more sorry” for what had happened. The former bank chiefs also said the bonus culture had contributed to the crisis and needed to be reviewed. But Sir Fred said if bankers felt they were not paid enough, they would leave. The apologies could be a cultural thing, or the beginning of a trend. I hope it’s the latter. Source: Business Pundit | 10 Feb 2009 | 3:53 pm GM Layoffs: 10,000 Dismissed; Bailout Money Goes to Brazil
General Motors latest round of layoffs will target 10,000 salaried workers. The New York Times reports: General Motors, which must submit a satisfactory restructuring plan to the government next week to keep billions of dollars in loans, said Tuesday that it would lay off 10,000 salaried workers worldwide this year and reduce pay for those who remain by as much as 10 percent. The announcement comes a week after G.M. extended more buyout and early retirement offers to its hourly work force and three months after it shed 5,100 salaried jobs, also through buyouts. This time, however, the cuts are being made through layoffs rather than voluntary programs because the government loan terms prevent G.M. from using money from its overfunded pension fund to pay for buyout packages, as it has previously. Because G.M. is using taxpayer money to avoid having to file for bankruptcy protection, it must bring payments to departing workers more in line with what is typical of companies in other industries. As part of its restructuring, G.M. has said it needs to eliminate about 31,500 hourly and salaried employees. So much for bailing out a company to save American jobs. MarketWatch commenter Gars250 pointed out this Latin American Herald Tribune article, that says GM will be using $1 billion (where’d that come from?) to “avoid the kinds of problems (GM is facing) in its home market”: According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to “complete the renovation of the line of products up to 2012.” “It wouldn’t be logical to withdraw the investment from where we’re growing, and our goal is to protect investments in emerging markets,” he said in a statement published by the business daily Gazeta Mercantil. There’s no pointing in bailing out GM if the money is going into the Brazilian economy. Let them file Chapter 11 and restructure without sending remittances to their subsidiaries abroad. Source: Business Pundit | 10 Feb 2009 | 3:19 pm Tim Geithner's Big DayToday, U.S. Treasury Sec. Tim Geithner is unveiling his plan for saving the nation's banks. The Washington Post puts the eventual price tag on the various initiatives, including the so-called bad bank, at $1.5 trillion. After yesterday's podcast about getting tougher on banks, these paragraphs from the New York Times caught my eye: In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials. Mr. Geithner, who will announce the broad outlines of the plan on Tuesday morning, successfully fought against more severe limits on executive pay for companies receiving government aid. He resisted those who wanted to dictate how banks would spend their rescue money. And he prevailed over top administration aides who wanted to replace bank executives and wipe out shareholders at institutions receiving aid. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 10 Feb 2009 | 2:24 pm
|
