CNBC v. Goldman Sachs: The Battle Of The Petty

That's not a dis, btw, everyone here should be fully aware of the fact that battles of the petty variety are our favorite kind. Quick recap, then down to the dirty. Last week, in a CNBC BREAKING NEWS segment, Charlie Gasparino report that Goldman Sachs had held a double secret you must have the password to enter meeting, mere hours after Tim Geithner's Congressional debut. According to Chaz, those gathered at the coffee klatch, which included the likes of Ken Griffin, were of the mind that the boy toy Treasury Secretary has no idea what he's doing. Almost immediately following the hit, Goldman Sachs denied that the meeting was secret, saying it had been planned weeks in advance, and that T. Geith was not the issue. Later that afternoon, Chaspo, in a way only he can, claimed GS was talking BS, because if the meeting hadn't been secret, "where was my invitation?" And speaking of 'BS'? The next morning CG suggested Goldman change its ticker to that, which he believes to be a more fitting acronym for the bank's business model. For those of you who thought that was the end of it-- how wrong you are.

This morning, Gaspo appeared in a bit called "Goldman's losing luster," and though the Times said pretty much the same thing this morning, the rag's piece lacked that angle of vendetta. While he Gasparino charitably noted that GS "is not going under," he went on to wax poetic:

"I'm very disappointed in that firm and their little reaction to my secret private meeting story last week. You know, first they denied there was any sort of meeting anywhere...even though it was at the top levels of the firm...and then they came out with this ridiculous statement afterward about how we got everything wrong, which we really didnt. You know, here's the thing, I think there's a bigger story in their bizarre reaction to that, and I got this from speaking to people on the Street, speaking to people at Goldman Sachs. And it's essentially that they are terrified about losing their stroke in Washington...and their influence broadly on Wall Street...and I think right now they are worried about losing that sort of stroke in the Obama administration. And one of the reactions... you get a reaction like the one to that story because they're worried about losing that stroke...[stuff about how Geithner isn't reaching out to the banks]...now, they do still have stroke there, someone told me, I have to confirm this, but one of Geithner's top liutenents is a Goldman guy. And when you talk to people they say, 'well they're always going to have stroke because they have a thousand of their little minions running around as lobbyists down there.' But clearly, inside Goldman, they're scared about not having the same access they used to have."

And then Joe Kernan Chaz if he was "mad at Lucas Von Trapp or something," in a zinger of a dig to Lucas van Praag, spokesman for Goldman Sachs! And though Gasparino claimed he "likes Lucas" he couldn't in good conscience not characterize GS's denial as "a bonehead move," to which Kernan added, "and now they're gonna pay!"

All this begging the question-- who's going to take a hit on whom first?

Source: Dealbreaker | 17 Feb 2009 | 2:26 pm

Liberty to loan Sirius $530 million and get 40 percent stake

NEW YORK (Reuters) - Liberty Media has agreed to $530 million in loans to Sirius XM Radio Inc, saving the satellite radio provider from possible bankruptcy and giving Liberty a 40 percent equity stake.
Source: Reuters: Business News | 17 Feb 2009 | 2:25 pm

GM and Chrysler ready survival plans

STUTTGART/WASHINGTON (Reuters) - Daimler swung to a hefty loss, hit by exposure to Chrysler, and Opel and Saab braced for news of General Motors' survival plan, as European carmakers saw their fates tied closely to their U.S. peers.
Source: Reuters: Business News | 17 Feb 2009 | 2:22 pm

GM and Chrysler ready survival plans (Reuters)

Reuters - Daimler swung to a hefty loss, hit by exposure to Chrysler, and Opel and Saab braced for news of General Motors' survival plan, as European carmakers saw their fates tied closely to their U.S. peers.

Source: Yahoo! News: Business | 17 Feb 2009 | 2:22 pm

Wall Street poised for lower opening Tuesday (AP)

AP - Investors uneasy about the government's ability to quickly turn the economy around were poised to keep selling Tuesday when stock trading begins for the week.

Source: Yahoo! News: Stock Markets News | 17 Feb 2009 | 2:21 pm

Green News: Efficiency as an Energy Resource

Utility companies have long faced a dilemma. On one hand, in order to grow profits, they must sell more electricity. On the other hand, they must support conservation as a means of keeping their...

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Source: 247 Wall Street | 17 Feb 2009 | 2:19 pm

Metals Stocks: Gold hits 7-month high above $960 on safety buying

Spot gold breached $960 an ounce, reaching its highest level this year, lifted by an unusually strong performance during Asian hours amid heightened risk aversion and a sharp reversal in the Japanese yen’s strength.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:16 pm

Sirius gets lifeline from Liberty Media

CHICAGO (MarketWatch) -- John Malone's Liberty Media has agreed to invest a total of $530 million in Sirius XM Satellite Radio, allowing the beleaguered radio company to avoid a Chapter 11 bankruptcy filing, the companies said Tuesday.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:15 pm

Dacor Offers Economic Solutions for Kitchen Remodeling

New promotions help make it possible to get the kitchen you have always wanted DIAMOND BAR, Calif., Feb. 17 /PRNewswire/ -- Dacor(R), market leader in luxury kitchen
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:15 pm

CLST Holdings is Announcing a Law Suit Against Red Oak Fund, L.P., Red Oak Partners, LLC, and David Sandberg Alleging Violations of Federal Securities Laws

DALLAS, Feb. 17 /PRNewswire-FirstCall/ -- CLST Holdings, Inc. ("CLST") (Pink Sheets: CLHI) announced today that it had filed a lawsuit in the United States District...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:15 pm

Gold Miner Digs for Cash (AGT)

Canadian gold miner Apollo Gold Corp. (NYSE: AGT) is negotiating with its current lenders for an additional $70 million in borrowing to complete the company’s Black Fox project in Ontario. The...

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Source: 247 Wall Street | 17 Feb 2009 | 2:14 pm

PNC Announces Moratorium On Mortgage Foreclosures

PITTSBURGH, Feb. 17 /PRNewswire-FirstCall/ -- The href="http://www.pnc.com">PNC Financial Services Group, Inc . (NYSE: PNC) today announced a moratorium on
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:12 pm

Pacific North West Capital Corp. announces acquisition of the Nixon Fork gold mine in central Alaska

TSX: PFN OTCBB: PAWEF Frankfurt: P7J.F VANCOUVER, Feb. 17 /PRNewswire-FirstCall/ - Pacific North West Capital Corp. (PFN) (TSX: PFN; OTCBB: PAWEF; Frankfurt:...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:12 pm

mobiclear Announces Key Strategic Business Partnership With Transpacific Broadband Group International

- Strategic Investment in mobiclear - MANILA, Philippines and LAGUNA HILLS, Calif., Feb. 17 /PRNewswire-FirstCall/ -- mobiclear, Inc. (OTC Bulletin Board: MOBI;...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:12 pm

Bond Report: Treasurys gain amid fears for European banks

Treasurys jumped, pushing yields down by the most since early December, as worries about European bank exposures to Eastern Europe and concerns about Ireland’s financial stability had investors clamoring for the relative safety of U.S. government debt and fleeing equities.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:11 pm

Smithfield Foods to close plants, cut jobs

Smithfield Foods Inc. said it expects to close six plants and reduce the number of independent operating companies to three from seven in an effort to save $125 million a year by 2011.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:09 pm

The Stanley Works Announces 1st Quarter Dividend

NEW BRITAIN, Conn., Feb. 17 /PRNewswire-FirstCall/ -- The Stanley Works (NYSE: SWK) announced today that its Board of Directors approved a regular first quarter cash dividend of...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:06 pm

Credit Crunch Broadband: Five Ways to Save

CAMBRIDGE, England, February 17 /PRNewswire/ -- It has been a tough 12 months, with the credit crunch turning into a full-blown recession, but it hasn't stopped the...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:05 pm

Media & Entertainment CEOs Struggle to Strike a Balance Between the Digital Future and Today's Turbulent Times

Ernst & Young's Media & Entertainment CEO Study provides a window into top executives' priorities LOS ANGELES, Feb. 17 /PRNewswire/ -- Media...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:05 pm

Stocks set for opening slide on economic gloom (Reuters)

Reuters - Stocks headed for a slide at Tuesday's opening on concern that the recession is worsening and that efforts to stabilize the stricken global financial system may not be enough.

Source: Yahoo! News: Stock Markets News | 17 Feb 2009 | 2:03 pm

Stocks set for opening slide on economic gloom (Reuters)

Reuters - Stocks headed for a slide at Tuesday's opening on concern that the recession is worsening and that efforts to stabilize the stricken global financial system may not be enough.

Source: Yahoo! News: Business | 17 Feb 2009 | 2:03 pm

Stocks set for opening slide on economic gloom

NEW YORK (Reuters) - Stocks headed for a slide at Tuesday's opening on concern that the recession is worsening and that efforts to stabilize the stricken global financial system may not be enough.
Source: Reuters: Business News | 17 Feb 2009 | 2:03 pm

Intellectual Breakthrough?

A senior official (that's how reporters were instructed to refer to the person) at Treasury last week described the public-private partnership idea for buying up the toxic assets as an "intellectual breakthrough."

That view doesn't seem to be widely shared on wall street, especially since Treasury hasn't given any details. But I can see part of the appeal. The government does not want to set the price for these toxic assets. If it pays too much, for instance, the tax payers get ripped off. But if wall street types to put their own money in the best minds in finance will be helping get a good price on the government's behalf.

This senior official by the way kept referring to "Tim" then correcting himself to say "I mean the Secretary." So clearly we're in early days.

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Source: NPR Blogs: Planet Money | 17 Feb 2009 | 2:02 pm

Stronger dollar knocks Wal-Mart

Supermarket giant Wal-Mart reports an 8% fall in quarterly profits, as the higher value of the US dollar ate into its overseas earnings.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 2:01 pm

NY manufacturing slump worsens in February

NEW YORK (Reuters) - Factory activity in New York State fell to a record low in February with new orders and employment falling sharply as the U.S. recession deepened, according to a survey
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:01 pm

NY manufacturing slump worsens in February

NEW YORK (Reuters) - Factory activity in New York State fell to a record low in February with new orders and employment falling sharply as the U.S. recession deepened, according to a survey on Tuesday from the regional central bank.
Source: Reuters: Business News | 17 Feb 2009 | 2:01 pm

European stocks hit by Moody's banking alert (AP)

AP - European stock markets fell sharply Tuesday ahead of an expected drop on Wall Street and after a credit ratings agency warned about potentially massive losses to leading banks exposed to the fragile economies in Eastern Europe.

Source: Yahoo! News: Stock Markets News | 17 Feb 2009 | 2:00 pm

NewsWatch: U.S. stock futures fall to start shortened week

U.S. stock futures drop after a three-day break, as concerns over possible automaker bankruptcy and contagion effects from Eastern Europe’s meltdown weigh on sentiment.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:00 pm

Beacon Equity Issues Technical Trade Alerts on Market Movers: LINTA, CTSH, SIRI, DISH, ATVI, PALM

DALLAS, Feb. 17 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of the daily...
Source: RSS feed - channel BNewsBusiness | 17 Feb 2009 | 2:00 pm

Futures Movers: Oil drops 4% amid falling stocks, economic worries

NEW YORK (MarketWatch) -- Oil futures dropped 4% Tuesday, as falling stocks and concerns about the global economy weighed on investor sentiment.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 2:00 pm

Liberty invests $530M in Sirius

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:57 pm

Schwarzenegger threatens 20,000 layoffs

California lawmakers were told to bring their toothbrushes and prepare for a long day Tuesday, with the goal of passing a budget as the state faces a $42 billion deficit and 20,000 layoff notices were set to go out to state workers Tuesday.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:57 pm

Wall St under pressure on banking fears

US financial stocks could come under fresh selling pressure, extending the previous week's sizeable losses, as investors remained concerned over the health of key institutions
Source: Financial Times - US homepage | 17 Feb 2009 | 1:56 pm

Wal-Mart: Sales up, profits down

Wal-Mart Stores reported Tuesday that sales increased in the fourth quarter while earnings fell.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:55 pm

Wal-Mart's 4Q earnings decline 7.4 percent (AP)

AP - Wal-Mart Stores Inc., the world's largest retailer, said Tuesday that its fourth-quarter profit fell 7.4 percent as it was hurt by the strong dollar and a charge from settling a labor lawsuit. The company also said first-quarter earnings could miss Wall Street expectations.

Source: Yahoo! News: Business | 17 Feb 2009 | 1:54 pm

A Miracle In Mustique

Back in December, the gut-wrenching rumors circulated that Fairfield Greenwich Group founder Walter Noel, his wife Monica, and their five daughters would not be spending Christmas at the family's home in Mustique, which they were-- and my fingers are recoiling in horror here but I'm powering through it-- renting out by the week, like a common street whore. The sadness was almost too much to bear, and though we pleaded with Uncle Bernie to do something, anything, our cries fell on deaf/under 24-hour surveillance ears. We were gazing into the abyss and you know what was staring back at us? A vision of the two once vibrant human being you see at left, sitting in a Seaside Heights motel. And then, like an angel descended from a heaven that takes whatever money could be returned to bilked investors and places it in the hands of the truly deserving, came this glimmer of hope that everything is going to be alright. Page Six reports that Walter and Mon have returned home. Yes, mon chichis, the duo is safely ensconced in Yemanja. And though, due to the matter of selling their share of a private jet, they were forced to fly commercial, it sounds like M and Dubs are going to be okay. Provided the plot to fake their own deaths, being hatched as we speak, goes of without a hitch. Otherwise I don't know what they're going to do. If anyone has any get rich quick schemes to speak of, let us know and we'll pass them on.

Source: Dealbreaker | 17 Feb 2009 | 1:51 pm

Bill Gates Top Holdings (ABT, AN, BRK-A, BP, CNI, CAT, KO, COST, CCI, EK, XOM, FMX, JNJ, MCD, OTTR, RSG, SGP, WMT, WMI)

We compiled a list of the equity holdings of the Bill & Melinda Gates Foundation and for Bill Gates’ personal investment vehicle Cascade Investment.  These are as of December 31, 2008 and...

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Source: 247 Wall Street | 17 Feb 2009 | 1:48 pm

Before the Bell: Wal-Mart, General Motors, Google in the spotlight

U.S. stock market futures dropped Tuesday after a three-day break, as concerns over possible bankruptcies in the auto sector returned and a New York index of manufacturing activity hit an all-time low, outweighing a better-than-expected result from Wal-Mart Stores.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 1:47 pm

Wal-Mart's profit drops 7.4%, hurt by higher expenses

Retail giant Wal-Mart Stores Inc. said fourth-quarter profit fell 7.4%, hurt by higher expenses and a stronger dollar even as its low-price position has helped it win traffic and sales from budget-conscious shoppers.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 1:46 pm

HTC launches new Android phone with Vodafone

Taiwanese handset maker HTC on Tuesday unveiled the successor to its first “Google” phone, a slimmer, touch-screen device that will be available exclusively from Vodafone in key European markets this spring.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 1:42 pm

Domino's Pizza surges on cash-strapped diners

Domino's, the pizza delivery group, today beat profit forecasts and boasted of an exceptional start to the new year as recession hit consumers shunned restaurants in favour of staying in with a takeaway.
Source: Latest Business News from Times Online | 17 Feb 2009 | 1:40 pm

Medtronic profit, sales higher

WASHINGTON (MarketWatch) -- Pharmaceutical giant Medtronic Inc. on Tuesday posted sharply higher third-quarter earnings, benefiting from a favorable comparison with the year-earlier period.

Source: MarketWatch.com - Top Stories | 17 Feb 2009 | 1:37 pm

Stocks are (finally!) cheap

Every major market crash is considered a teachable moment. And the lesson for investors invariably centers on the risk of overreacting to the news, in this case by attempting to flee equities when they're down. Countless studies have shown that this type of market timing will cost you dearly.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:35 pm

Eastern Europe triggers new bank fears

LONDON (Reuters) - A new report suggesting eastern Europe's economic slump will drag Western banks further into the red fanned fears on Tuesday that emerging economies will deepen the recession in the West.
Source: Reuters: Business News | 17 Feb 2009 | 1:35 pm

Pork producer to cut 1,800 jobs

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:33 pm

Tech bargain bin - 3 to bounce back

If you thought Nortel looked cheap in mid-December at 27 cents a share, you were right. At that price, Canada's largest networking equipment and services company, with estimated 2008 sales of $10.5 billion, had a market value of $131 million.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:33 pm

Malone comes to aid of Sirius

John Malone's Liberty Media offered about $250m in a senior secured loan as the first step in a 'multi-stage' deal to rescue the satellite radio group from an imminent debt deadline
Source: Financial Times - US homepage | 17 Feb 2009 | 1:31 pm

L?G learns you can never have too much capital

The exceptional statement responding to market speculation has become the norm in the financial crisis. Now it is the insurers' turn.
Source: Telegraph Finance | 17 Feb 2009 | 1:28 pm

Will prepaid cards keep the fraudsters at bay?

More than half of the population are so worried about becoming a victim of fraud that they refuse to shop online but a prepaid card may put their fears at rest.
Source: Telegraph Finance | 17 Feb 2009 | 1:25 pm

Trump Entertainment files for bankruptcy

NEW YORK (Reuters) - Casino operator Trump Entertainment Resorts Inc filed for Chapter 11 bankruptcy protection on Tuesday, according to court documents, wiped out by the recession and a mountain of debt.
Source: Reuters: Business News | 17 Feb 2009 | 1:22 pm

Safra customers fall victim to Madoff

The Financial Times believes that Banco Safra of São Paulo for several years marketed a fund called Zeus Partners Limited, one of many 'feeder' funds that channelled money to Bernard Madoff Securities
Source: Financial Times - US homepage | 17 Feb 2009 | 1:20 pm

Toyota's U.S. workers avoid layoff threat for now

SAN ANTONIO (Reuters) - Even though Toyota Motor Corp touts its mighty Tundra pickup as "the truck that's changing it all," workers who build it in San Antonio are not immune from the threat of layoffs that have beset the Big Three U.S. automakers.
Source: Reuters: Business News | 17 Feb 2009 | 1:16 pm

Toyota's U.S. workers avoid layoff threat for now (Reuters)

Reuters - Even though Toyota Motor Corp touts its mighty Tundra pickup as "the truck that's changing it all," workers who build it in San Antonio are not immune from the threat of layoffs that have beset the Big Three U.S. automakers.

Source: Yahoo! News: Business | 17 Feb 2009 | 1:16 pm

Wal-Mart profit beats Wall St. view (Reuters)

Reuters - Wal-Mart Stores Inc posted a quarterly profit that beat Wall Street forecasts, helped by higher U.S. sales at its namesake discount stores, and said it expected to continue to perform better than its competitors.

Source: Yahoo! News: Business | 17 Feb 2009 | 1:15 pm

Wal-Mart profit beats Wall St. view

NEW YORK (Reuters) - Wal-Mart Stores Inc posted a quarterly profit that beat Wall Street forecasts, helped by higher U.S. sales at its namesake discount stores, and said it expected to continue to perform better than its competitors.
Source: Reuters: Business News | 17 Feb 2009 | 1:15 pm

House price fall of 10% wipes out recovery hopes

House prices are 10 per cent lower than a year ago, the local Government house price index revealed today, further deepening the economic gloom.
Source: Latest Business News from Times Online | 17 Feb 2009 | 1:13 pm

GM and Chrysler to detail plans

Troubled GM and Chrysler must later submit their survival plans to the government, under the terms of their bail-outs.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 1:09 pm

Economy fears weigh on stocks

Stocks were poised to open significantly lower on Tuesday as investors weighed the impact of the new stimulus plan - expected to be signed into law later in the day - against results from retailing giant Wal-Mart.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 1:02 pm

Joan Bakewell: 'My tenant was a professional con artist'

Dame Joan Bakewell 75 was appointed the government's Voice of Older People last year. Twice divorced she lives alone in Primrose Hill.
Source: Telegraph Finance | 17 Feb 2009 | 12:53 pm

Opening Bell: 02.17.09

California Announces 20% Cut In Staff (Reuters)

California has announced it's cutting roughly 20% of its staff after failing to pass their budget, which included both cuts in spending and tax hikes. Skipping the Terminator jokes for the moment (just too easy), we should look to California to start a war: given the correlation of recession -> conflict it wouldn't be out of line to expect The Golden State to pony up and take out/reform a not-so-allie'ish state (or small foreign entity, though we'll disavow any knowledge officially.)

British Columbia would fit nicely in to the fold.

Data Hints At Slowing Of Decline (NYT)
"But recently, a handful of lesser-known indexes and indicators measuring things like overseas shipping rates and manufacturing outlooks have begun to paint a picture that, while bad, is not quite as bleak as a few months ago.

"It's too early to get excited, but I think there are a couple of green shoots that say we're not going down as heavily in the first quarter as we were in the fourth quarter," said Bruce Kasman, chief economist at JPMorgan Chase."

Wal-Mart Earnings Top Analyst Estimates (Reuters)
"Wal-Mart Stores Inc on Tuesday posted a quarterly profit that beat Wall Street expectations, helped by strong U.S. sales at its namesake discount stores.

Profit fell to $3.79 billion, or 96 cents per share, for its fiscal fourth quarter that ended January 31, from $4.096 billion, or $1.02 share, a year ago.

The company said earnings per share excluding a 7 cent charge for the settlement of class action lawsuits was $1.03 per share. Analysts, on average, had been expecting it to earn 99 cents per share, according to Reuters Estimates."

UBS Sees 35% Drop In Hedge Fund Assets (Reuters)
The firm is calling for a drop in assets in hedge funds, calling the sweet spot at $1.2T end of Q1, down from the high water mark at $1.93T mid 2008.

Money Shot:

"We are gonna see a reduction in hedge fund assets, we are gonna see decline in the number of hedge funds, we are gonna see some strategies that will not work in this environment," Timothy Bell, global head of hedge funds advisory at UBS Wealth Management, told reporters in Singapore."

Soon after, Bell left the conference to make himself a nice soup from chopped up hot dogs and Stove Top stuffing.

Japan's Finance Chief Resigns For Being Hammered At G7 Press Conference (Bloomberg)
I'm not sure I can attack this with any grace: given the whole gang was back together, and under the circumstances, I'm not sure I would have handled it any differently. Maybe, maybe I would have had a junior member step into the Press for me: but who can resist cameras?

Trump Entertainment Files For Ch 11 (NYT)
"The casino operator had assets of about $2.1 billion and total debts of about $1.74 billion on Dec. 31, 2008, it said in its filing with the U.S. Bankruptcy Court for the District of New Jersey.

Nine affiliates of the casino operator including Trump Plaza Associates, Trump Plaza Associates, Trump Marina Associates and Trump Taj Mahal Associates simultaneously sought protection, according to the filing."

Stanford Investors Head To Antigua For Redemptions (WSJ)
The run on Stanford investments continues as investors scramble for redemptions that may be contractually locked. It appears as though the CDs have provisions (similar to gates) built in to them that allow for the host firm to close redemptions should they chose.

None the less, investigations looming/ongoing - situation is fluid.

Source: Dealbreaker | 17 Feb 2009 | 12:52 pm

World's largest market falls silent as China suffers

The twomile corridors of the world's greatest bazaar in Yiwu are packed with 60000 Chinese companies desperate for business.
Source: Telegraph Finance | 17 Feb 2009 | 12:46 pm

Driven to drink no bad thing, for wine investors

ZURICH (Reuters) - Financial turmoil may drive investors to drink but this could be a boon for some of them.
Source: Reuters: Business News | 17 Feb 2009 | 12:46 pm

Top 10 Analyst Upgrades & Downgrades (CCC, ETR, GOOG, HST, MAR, HOT, CYN, DE, FARO)

These are some of the early bird Wall Street analyst calls we are seeing this Tuesday morning with over two hours to the market open: Calgon Carbon (CCC) Started as Outperform at...

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Source: 247 Wall Street | 17 Feb 2009 | 12:43 pm

Wal-Mart (WMT) Brings Home The Bacon

The last time Wal-Mart (WMT) made official forecasts for Wall St. there was a sense that the recession might be taking down the world’s largest retail despite its appeal to cost-conscious...

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Source: 247 Wall Street | 17 Feb 2009 | 12:43 pm

Inflation: Britain in 1960

In 1960 Britain had recovered from the postwar austerity and entered a new era of optimism cultural expression and social revolution.
Source: Telegraph Finance | 17 Feb 2009 | 12:39 pm

Japan's finance minister resigns

In a blow to Japan's beleaguered government, Shoichi Nakagawa, finance minister, resigned amid harsh criticism of his erratic performance at a weekend meeting of the Group of Seven.
Source: Financial Times - US homepage | 17 Feb 2009 | 12:22 pm

UK inflation rate declines to 3%

Consumer price inflation fell in January to an annual rate of 3%, down from 3.1% in December, official figures show.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 12:18 pm

Comment: Who are the losers when inflation disappears?

As inflation falls to its lowest level since 1960 savers and borrowers to play "Let's Twist Again" as winners and losers in the money illusion swap places.
Source: Telegraph Finance | 17 Feb 2009 | 12:15 pm

FTSE loses 100 points as banks and miners weigh

The FTSE 100 came close to crossing the 4,000 point threshold on Tuesday after the gloomy outlook for the world economy brought about heavy falls.London's benchmark index was under renewed pressure, giving...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 12:13 pm

Savers the winners as real returns rise

Now that inflation has fallen to its lowest level since 1960 it's time for savers and borrowers to play 'Let's Twist Again' as winners and losers in the money illusion swap places.
Source: Telegraph Finance | 17 Feb 2009 | 12:11 pm

Market surprised by size of Daimler's loss

Daimler, the German premium carmaker and truck group, on Tuesday underscored the drastic downturn in the car industry when it reported a much worse than expected loss in the fourth quarter.The group's...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 12:03 pm

Market surprised by size of Daimler's loss

The German premium carmaker and truck group underscored the drastic downturn in the car industry when it posted a much worse than expected loss in the fourth quarter
Source: Financial Times - US homepage | 17 Feb 2009 | 12:03 pm

Steel Partners withdraws Sapporo offer

Steel Partners on Tuesday withdrew its offer to raise its stake in Sapporo Holdings, the beer company it has been in confrontation with for over two years, underlining the waning interest of activist shareholders...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 11:57 am

Alchemy Oaktree and Polygon to take control of Countrywide estate agents

The three distressed debt investors are expected to announce they have taken a controlling stake in Countrywide Britain's biggest estate agency group.
Source: Telegraph Finance | 17 Feb 2009 | 11:52 am

European equities extend sharp falls (AFP)

AFP - European stock markets slid for a second day running on Tuesday, dragged down by ailing banks, as investors awaited the reopening of Wall Street after a long holiday weekend in the United States.

Source: Yahoo! News: Stock Markets News | 17 Feb 2009 | 11:51 am

Jump in German investor sentiment

German investor confidence unexpectedly rises in February, according to research firm the Zew Institute.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 11:51 am

Countrywide sells stake to distressed debt firm

Oaktree, the US specialist distressed investor, is about to seal its first major British investment with a cash injection into Countrywide, the estate agency chain, in a deal that may signal the bottom of the property market.
Source: Latest Business News from Times Online | 17 Feb 2009 | 11:48 am

Japan finance minister steps down

Japan's finance minister resigns amid claims he was drunk at a G7 meeting - a further blow to Prime Minister Taro Aso.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 11:41 am

Deflation is here but 40pc struggle to pay their bills

Many people are struggling to pay their bills according to one charity even though the Telegraph's measure of "real" inflation shows prices falling rapidly.
Source: Telegraph Finance | 17 Feb 2009 | 11:38 am

Online Advertising: Too Many Ad Pages, Too Few Ads

Internet display advertising is being challenged by the recession. Traditional media is not the only business being hurt as marketers curtail spending to save money. Barry Diller recently said that...

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Source: 247 Wall Street | 17 Feb 2009 | 11:38 am

Mandelson urges ministers to avoid knee-jerk response over banker bonus 'frenzy'

The Government must not be rushed into hurried judgments about tackling the banking crisis because of demands for action from the media and political opponents, Lord Mandelson will say in New York today.
Source: Latest Business News from Times Online | 17 Feb 2009 | 11:37 am

How Facebook is taking over our lives

Facebook held no appeal for Peter Lichtenstein. The New Paltz, N.Y., resident had checked out so-called social networking sites before, and he wasn't impressed. ("MySpace," he recalls, "was ridiculous.")
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 11:25 am

Thomas Green's MD Philip Evans caters for the "best of British"

A company specialising in British fare for expats and Anglophiles is looking for new franchisees to take it further afield. Victoria Taylor reports
Source: Telegraph Finance | 17 Feb 2009 | 11:25 am

Oaktree Capital in talks to control Countrywide

US distressed debt fund Oaktree Capital is in talks to take control of Countrywide, the UK's biggest residential estate agency, indicating that some investors are starting to believe that conditions in...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 11:17 am

Microsoft (MSFT) Pushes Mobile (AAPL)(GOOG)

Microsoft (MSFT) is pushing hard to show that it can be a viable competitor in the business of providing operating systems for smartphones. It has done a deal with handset giant LG which will put the...

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Source: 247 Wall Street | 17 Feb 2009 | 11:16 am

What will (and won't) save Detroit

Washington wants answers, but there are no simple solutions to what's ailing the nation's automakers.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 11:16 am

Japan's finance minister quits, jolts government

TOKYO -- Japanese Prime Minister Taro Aso's already shaky government was rocked Tuesday by the sudden resignation of his finance minister over allegations he appeared drunk after a recent G-7 meeting...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 11:14 am

Why you can't get a loan

Bankers say they are lending but try telling that to consumers having difficulty getting approved for mortgages, credit cards or auto loans.
Source: Business and financial news - CNNMoney.com | 17 Feb 2009 | 11:10 am

Fears about Eastern European debt push banks lower

European shares fell for the fifth time in six sessions on Tuesday as banks with exposure to ailing central and eastern European economies came under heavy selling.Many in the market cited a report from...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 11:03 am

The Rise Of The $5 Phone (VZ)

Something like a billion handsets are sold worldwide every year. That is good news for the large phone companies with big cellular businesses. Wireless handsets, calling plans, and data charges have...

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Source: 247 Wall Street | 17 Feb 2009 | 11:02 am

Asian demand helps gold break $960

Gold prices surged on Tuesday to a fresh seven month high on Tuesday, trading above $960 a troy ounce and hitting record highs denominated in euros and sterling, boosted by strong buying by Japanese and...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 11:00 am

Potential buyers seek only Citi's good parts: report

(Reuters) - Citigroup's quest to raise cash by selling assets is falling flat as would-be suitors have more interest in the parts of the business that Citi would like to keep, the New York Post said on Tuesday.
Source: Reuters: Business News | 17 Feb 2009 | 10:50 am

Potential buyers seek only Citi's good parts: report (Reuters)

Reuters - Citigroup's quest to raise cash by selling assets is falling flat as would-be suitors have more interest in the parts of the business that Citi would like to keep, the New York Post said on Tuesday.

Source: Yahoo! News: Business | 17 Feb 2009 | 10:50 am

Eastern European outlook undermines euro

The euro dropped to a two-month low against the dollar on Tuesday on heightened concerns over eurozone banks' exposure to the worsening conditions in eastern Europe. Rating agency Moody's said Austrian,...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 10:46 am

The Long-Shot Case For Oil Going Back Above $100

By most accounts, The International Energy Agency is the leading expert on the future of the price of oil. It collects production data, future yield from existing fields and those that may be drilled...

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Source: 247 Wall Street | 17 Feb 2009 | 10:43 am

Trump casino files for Chapter 11

Trump Entertainment Resorts files for bankruptcy protection as its casino revenues have been hit by the global downturn.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 10:30 am

Americans Become A Nation of Renters

One by-product of people being evicted from their homes during foreclosure proceedings is that they often end up renting a place to live. After losing a house to the bank, they are not likely to be...

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Source: 247 Wall Street | 17 Feb 2009 | 10:27 am

S Korea leads fall in Asian share markets

South Korean shares dropped 4.1 per cent on Tuesday to lead a broad retreat by stock markets across Asia Pacific as fears deepened about the effect of the global economic slowdown on the region, especially...
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 10:22 am

Daimler reports 1.5bn euro loss

Daimler reports a loss of 1.5bn euros for the fourth quarter of 2008, much worse than analysts had forecast.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 10:18 am

Japan finance minister submits resignation

TOKYO -- Kyodo news agency says Japan's embattled finance minister has submitted his immediate resignation.
Source: RSS feed - channel BNPaperBusiness | 17 Feb 2009 | 10:06 am

Deflation nears as living costs hit 49-year low

Concerns grew today that the recession could push Britain’s economy into the grip of deflation as a key gauge of price pressures showed annual inflation tumbling to the lowest rate since 1960.
Source: Latest Business News from Times Online | 17 Feb 2009 | 9:48 am

The penny drops

Is innovation creating a cashless society in the UK?
Source: BBC News | Business | World Edition | 17 Feb 2009 | 9:31 am

Trump Entertainment files for Chapter 11

The casino operator, of which Donald Trump owns 28 per cent, filed for Chapter 11 protection at a court in New Jersey after bondholders rejected Mr Trump's attempt to take the company private
Source: Financial Times - US homepage | 17 Feb 2009 | 9:25 am

London stocks open down (AFP)

AFP - Stocks opened lower in London on Tuesday following losses the day before and ahead of the release of inflation data which is expected to show another fall.

Source: Yahoo! News: Stock Markets News | 17 Feb 2009 | 9:02 am

Laura Ashley in profits warning

Laura Ashley warns that it will not hit its full-year profit targets for 2008 due to the slowdown in the economy.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 8:32 am

Weak oil prices hit StatoilHydro

Norwegian oil and gas producer StatoilHydro reports a 68% drop in quarterly profit amid weaker oil prices and a stronger dollar.
Source: BBC News | Business | World Edition | 17 Feb 2009 | 8:12 am

Foster's to keep struggling wine business

Foster's Group, Australia's largest brewer, will keep its struggling $3.2bn wine business and reshape it, as tough debt and equity markets cut out the option of a sale
Source: Financial Times - US homepage | 17 Feb 2009 | 8:11 am

InterContinental sees 'tough' year amid profit fall

InterContinental Hotels Group, which operates the Crowne Plaza, Holiday Inn and InterContinental brands, reported that a “very tough” market pushed profits down by 32 per cent last year and gave warning that demand was unlikely to pick up in 2009.
Source: Latest Business News from Times Online | 17 Feb 2009 | 8:00 am

NZ stocks: F&P rebound steadies market

The sharemarket eased today but pockets of strength among top stocks, including a rebound for Fisher & Paykel Appliances, helped ward off the larger falls seen offshore. Asian stocks slid, with Japan's Nikkei hitting a three-month...
Source: New Zealand Herald - Business | 17 Feb 2009 | 6:14 am

Currency: NZ dollar joins plunge against US

The New Zealand dollar joined the sinking tide against a stronger United States dollar today as concerns grew globally about the state of banks in Europe. By 5pm, the kiwi had fallen to US51.24c from US51.93c late yesterday afternoon,...
Source: New Zealand Herald - Business | 17 Feb 2009 | 5:39 am

Thousands scoop up Jetstar's $1 ticket offer

Australian budget airline Jetstar sold 30,000 $1 fares within three hours today to kick off its expansion into the New Zealand domestic market and replace Qantas here. The five-year-old airline said the response had broken records...
Source: New Zealand Herald - Business | 17 Feb 2009 | 4:45 am

Bailout talk could harm F&P prospects - export group

Shares in Fisher & Paykel Appliances are up seven cents on the New Zealand stock exchange, after the Prime Minister said letting such an important company fail because of a temporary crisis would be unacceptable. Talk of committing...
Source: New Zealand Herald - Business | 17 Feb 2009 | 4:45 am

Telecom credit rating downgraded by Moody's

Increased competition, tight regulations and economic problems have seen ratings service Moody's downgrade Telecom's senior and unsecured short term commercial paper ratings. The ratings have gone from A2/P-1 to A3/P-2. The outlook...
Source: New Zealand Herald - Business | 17 Feb 2009 | 4:30 am

NZ Refining boosts annual profit 11pc

New Zealand Refining has boosted annual after-tax profit by 11 per cent to $124.9 million, at the upper end of expectations, on the back of high refining margins and a favourable exchange rate. NZ Refining, which operates New Zealand's...
Source: New Zealand Herald - Business | 17 Feb 2009 | 4:00 am

Clinton stresses 'harmony' in Japan

US Secretary of State Hillary Clinton spoke of promoting "balance and harmony" in US foreign policy as she visited Japan, drawing an implicit contrast to the administration of former President George W. Bush
Source: Financial Times - US homepage | 17 Feb 2009 | 3:05 am

Even Lloyds bank is not immune

British prime minister Gordon Brown's government came under growing criticism over a major banking crisis today. The Labour leader is under fire as fears mounted that Lloyds Banking Group might be nationalised because of a takeover...
Source: New Zealand Herald - Business | 17 Feb 2009 | 2:35 am

Krukziener told by High Court to pay up

Auckland property developer Andrew Krukziener lost $2.8 million in 10 minutes in the High Court at Auckland this morning. The court ruled Krukziener, best known for building Auckland's Metropolis Tower, must pay financially-crippled...
Source: New Zealand Herald - Business | 17 Feb 2009 | 2:30 am

NZ fund manager award finalists named by Morningstar

Investment research company Morningstar has announced the finalists in its annual fund manager of the year awards, including two new awards; KiwiSaver fund manager of the year and emerging fund manager of the year. Winners are...
Source: New Zealand Herald - Business | 17 Feb 2009 | 2:00 am

Mortgagee sales still on the rise

The squeeze is still on many homeowners who are overburdened with debt and cannot meet their commitments. More and more houses are coming up for mortgagee sales, in the figures which emerge from research compiled by a banking and...
Source: New Zealand Herald - Business | 17 Feb 2009 | 1:30 am

Anti-foreign strikes branded baseless by Acas

Union claims that foreign construction workers had an unfair advantage over their British counterparts — sparking unofficial strike action last month — have been dismissed by the conciliation service Acas.
Source: Latest Business News from Times Online | 17 Feb 2009 | 12:00 am

Need to know: Samsung pays Dyson ... Cape talks ... Umeco job cuts

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 17 Feb 2009 | 12:00 am

3i Infrastructure quits Gatwick bidding

An investment fund run by 3i, Britain’s largest quoted private equity group, has pulled out of bidding for Gatwick airport amid speculation that it could not raise sufficient financing.
Source: Latest Business News from Times Online | 17 Feb 2009 | 12:00 am

Angry Rio investors stake their claim

If Rio Tinto thought its big shareholders would calm down over the weekend it will have been disappointed. Investors who expressed anger at its proposed $19.5 billion fundraising from Chinalco, announced last week, now seem even more steamed up.$
Source: Latest Business News from Times Online | 17 Feb 2009 | 12:00 am

Clinton suggests Tarp go green

Bill Clinton has waded into the debate about the allocation of funds from the troubled asset relief programme, saying banks should be directed to loan money to businesses embarking on environmentally sustainable projects
Source: Financial Times - US homepage | 16 Feb 2009 | 11:50 pm

US general stresses need for time

Iraq needs almost three years to prepare its security forces for a sustained fight against insurgents, according to a senior US general in the country
Source: Financial Times - US homepage | 16 Feb 2009 | 10:00 pm

Oregon Beer Tax Would Increase Price of Beer by 1,900%

Oregon’s government is thinking about increasing the state beer tax. Taxing cigarettes is one thing, but is a beer tax taking it too far? The Oregonian reports:

The Oregon state tax on beer is less than a penny a glass. It’s among the lowest in the country, untouched in more than three decades and guarded by powerful interest groups. Never before, it seems, has the climate been so ripe to raise taxes on sin. Democrats command supermajorities in both chambers, which means they can increase taxes without Republican votes.

Two-term Rep. Ben Cannon, D-Portland, is the chief sponsor in the House of a bill that would raise the tax on a 12-ounce beer to 15 cents for drug and alcohol abuse prevention and treatment.

Oregon’s market-small but vocal craft beer makers oppose the bill, arguing that increasing the $2.60 tax on a barrel of beer to nearly $50 would crimp the industry and result in layoffs. Kurt Widmer, one of the brothers behind Widmer Brothers Brewing, says the actual tax paid by drinkers will be much higher than legislators claim, after middlemen slice their share.

“The lie of the 15 cents is that a pint (actually) goes from $4 to $5.50,” he says.

Kulongoski wants to raise the tax on a pack of cigarettes from $1.18 to $1.78, netting about $112 million every two years, most of it for the Oregon Health Plan.

Scott Jantze would be thrilled if somebody - anybody - would price cigarettes so high he wouldn’t buy them. The warehouse forklift driver has smoked for most of his 46 years and he hates it.

“If they were to tax cigarettes really high, that would be the best thing for me to quit,” says Jantze, parked in front of a television at Claudia’s Sports Bar on Hawthorne, crunching on potato chips and drinking from a small pitcher of beer.

But a tax on his beloved Budweiser?

“I got to draw the line on that one.”

Oregon’s KGW News reports that if the measure passes, a pint of beer will cost $6, 1,900% more than it does now.

If the government is willing to consider a beer tax to fund alcohol recovery programs, why doesn’t it start taxing junk food, too, in order to combat obesity? The beer tax–or a wine tax–just don’t make much sense.

Source: Business Pundit | 16 Feb 2009 | 6:09 pm

Less product, same price

Have you noticed there's less peanut butter in your jar? Some packaged goods companies have been reducing the weight of certain products and selling them for the same price. Sean Cole asks: Is it deceptive?
Source: Marketplace | 16 Feb 2009 | 6:07 pm

Rethinking what 'long term' means

If your investment portfolio took a big hit in 2008, you'd be forgiven for wondering if the markets aren't just a big Ponzi scheme. Roger Lowenstein explored that sentiment recently in The New York Times. He talks with Tess Vigeland.
Source: Marketplace | 16 Feb 2009 | 6:07 pm

Social networking sites help job search

What's the first thing you do when you lose your job? Blog about it or update your status? More laid-off workers are using social networking sites to make connections -- and get hired. Curt Nickisch reports.
Source: Marketplace | 16 Feb 2009 | 6:07 pm

Would you like a pay cut or layoff?

To cope with the recession, many companies are considering layoffs or pay cuts. But is it better for companies to cut pay or let employees go? Jeremy Hobson reports.
Source: Marketplace | 16 Feb 2009 | 6:07 pm

Clinton's Asia trip signals region's clout

Secretary of State Hillary Clinton has kicked off her first foreign trip to Asia as the nation's top diplomat, a sign of the region's increasing economic power. Scott Tong reports.
Source: Marketplace | 16 Feb 2009 | 6:06 pm

Panel to steer weakened auto industry

As Chrysler and GM prepare their recovery plans, President Obama is setting up a task force to take charge of restructuring the crippled auto industry instead of appointing a "car czar." John Dimsdale reports on the president's plan.
Source: Marketplace | 16 Feb 2009 | 6:06 pm

Golden State tarnished without budget

California is on the brink of financial disaster. The Golden State is $42 billion in debt and lawmakers still haven't agreed on a budget. If they don't come up with a plan, California might be facing bankruptcy. Stacey Vanek-Smith reports.
Source: Marketplace | 16 Feb 2009 | 6:06 pm

Taiwanese University Offers Porn Analysis Class

From Ananova:

A university in Taiwan has opened a course to teach students how to appreciate and analyse porn movies. The Mass Communication Department of Providence University opened the course this semester, reports United Daily News.

To pass the course, students must give a 15 minute presentation in which they analyse an audience’s psychological reaction to a porn clip from an academic perspective. One worried student, who did not wish to be named, commented: “If I get a very good score in this course, I don’t know how I’ll explain it to my parents.”

When registering for the voluntary course, students signed a paper agreeing that if the scenes were too explicit, they could choose to leave the classroom. The teacher, assistant professor Miss Chen Mingmei, said no students had ever left her class but some would briefly cover their eyes during the stronger scenes.

More than 50 students registered for the course, and most of them confessed that they had watched porn videos before. Curiosity was given as the main reason for taking the course and most admitted their parents did not know what they were studying.

Source: Business Pundit | 16 Feb 2009 | 4:14 pm

It's The Bank Lobbyists

Folks, we're mostly taking President's Day off, but we did get a couple of notes from economists that I thought you'd like to see.

The first, from Simon Johnson, details the collapse of a consensus on what to do about faltering U.S. banks. Johnson's open to ideas, but he's not moving on this:

"The banking lobby has become too powerful, in large part because big banks have balance sheets that are too big relative to the size of the economy. If a bank has total assets of over 10% of GDP, it is obviously too big to fail. Of course, the smart people who run these banks know this and act -- politically and economically -- accordingly."

Which brings me to the second note, from Amir Sufi, also a Planet Money guest. Sufi recommends this Business Week article arguing that banks are undermining efforts to keep homeowners in their homes. You'll notice yet another Planet Money guest is featured, bank lobbyist Scott Talbott.

Sufi writes:

"My take on all of this is that the banking industry has basically shot themselves in the foot over this issue. Even though they should WANT to facilitate renegotiations of mortgages to prevent foreclosures, their lack of foresight has led them to try and stall any meaningful government help in getting around the legal difficulties in writing down principal.

"The Housing and Economic Recovery Act passed in July 2008 did not make write-downs by banks mandatory. Instead, the banking industry lobbied hard to make sure that the participation of banks was voluntary. As this article points out, the act was a miserable failure which is part of the reason the housing market continues its death spiral."

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Source: NPR Blogs: Planet Money | 16 Feb 2009 | 2:58 pm

Meetings: The Practical Alternative to Work

Source: Business Pundit | 16 Feb 2009 | 2:49 pm

Tax Tip of the Week: Understand Your Education Benefits

Isn’t it great when your employer subsidizes your higher education? Education is a wonderful benefit if you can get it and turning in that reimbursement form may feel great, but many employees are surprised when they find at the end of the year that they have been taxed for the value of tuition reimbursements.

Employees are hunkering down to save their jobs, or try to get their resumes in order in case they are victims of the wave of layoffs. Many are looking to increase their market value with more education, and that education isn’t cheap. Take an MBA for example. If you want to get an online or traditional MBA it’s going to cost a minumum of $20,000. Anything your employer reimburses over $5,250 in a calendar year is considered taxable income.

Ouch.

The good news is that up to $5,250 of the assistance is totally tax free so long as your employer has a written  educational assistance policy in place. The assistance can be spent on tuition, fees , books, supplies, and equipment for undergraduate- or graduate-level courses and the course don’t have to be work-related. The only things you can’t use the assistance for are meals, lodging, and transportation.

If your employer shells out more than $5,250, you will see the amount over this figure in Box 1 of Form W-2 and you must include it in income.

The Loophole

There is a way around the $5,250 threshhold, but as an employee you probably have little influence over it. Benefits paid under the working condition fringe benefit can exceed $5,250 IF the benefit is one which, had you paid for it yourself, you could deduct as an employee business expense. (If it’s something you MUST do to maintain your current job.) This type of plan is allowed by Section 132(d) of the IRS code. Your human resources department should be familiar with this and can let you know what type of plan you have.

If the benefits over $5,250 also qualify as a working condition fringe benefit, your employer does not have to include them in your wages.

Easing the Pain

Many employers pay only a portion of the tuition. The portion of tuition you pay will probably qualify for the Lifetime Learning Credit. This credit is equal to 20% of the out of pocket expenses up to $10,000, allowing a maximum credit of $2,000.

Image Credit: blmurch, Flickr

Source: Business Pundit | 16 Feb 2009 | 2:18 pm

Obama to appoint panel for auto recovery (AP)

AP - It will take more than one "car czar" to help get the embattled U.S. auto industry back on track, President Barack Obama has decided. Instead, his administration is establishing a presidential task force to direct the restructuring of General Motors Corp. and Chrysler LLC, a senior administration official said Sunday night.

Source: Yahoo! News: Business | 16 Feb 2009 | 2:02 pm

Opening Bell/Closing/President's Day Bell: 02.16.09

Chavez Wins Vote To Scrap Term Limits (FT)

Venezuelans have given Hugo Chavez's "Bolivarian revolution" fresh impetus after voting in favour of a referendum that will allow the socialist leader to continue running for president indefinitely.

"The gates to the future have been opened wide," said an emotional Mr Chavez from the balcony of the presidential palace, as a throng of ecstatic followers chanted in unison, "Hey, ho, Chavez won't go."

G7 Tries To Light A Flame Under Geithner's Ass (Bloomberg)
It's pretty much the world consensus at this point that the US is responsible for the economic downturn; the German Finance Minister called us the "departure and focal point". They're (not the emphatic "they're", but rather something approaching the entire world) calling for speed, clarity, and magic:

"A concrete U.S. plan would have positive spillover effects on markets and economies elsewhere," said Marco Annunziata, chief economist at UniCredit MIB in London. "They are also probably hoping Geithner unveils the magic formula, which they could then also adopt."

In related news (Reuters), President Obama's administration warns not to expect magic (miracles), though "there will be signs very quickly, but it's going to take time for that to show up in the statistics" says David Axelrod.

Car Czar Replaced By Panel (NYT)
The idea of the car czar didn't last long; what we're seeing instead is a panel of three people: Geithner of Treasury fame, Summers, Chairman of the Economic Council, and Ron Bloom.

"Mr. Bloom is known for bringing his Wall Street experience as an investment banker to an advisory role as the "in-house" banker for the steel workers' union. With the auto union locking horns with bondholders in the G.M. revamping deliberations, Mr. Bloom appears to bring credibility with both the union and the debtors. Mr. Bloom could not be reached for comment Sunday night.

Another senior administration official said that Mr. Obama had considered appointing a car czar, and among those considered for the job was the private equity executive Steven Rattner. It was not clear why the administration changed course or whether Mr. Rattner would have a role on the task force."

From Prisoners To Chief Executives (BBC)

"Four years ago Catherine Rohr was a venture capitalist on Wall Street. Then she left her job with its six-figure salary and decided to create the Prison Entrepreneurship Program, or PEP.

[...]

"They don't all understand risk management as well as they should because they all got busted when they came to prison, but when it comes to execution and marketing - they get it.""

BofA workers can keep Flight 1549 refunds (Charlotte Observer)
It turns out Bank of America really did ask its employees on the flight that landed in the Hudson to turn the money the airline refunded them over to the bank. But, according to BAC, it was an accident.

Source: Dealbreaker | 16 Feb 2009 | 1:25 pm