US shares close at six-year low

US stocks closed at six-year lows after data showed five million people were collecting unemployment benefits, a record high number that underlined the growing depths of the recession.
Source: Latest Business News from Times Online | 20 Feb 2009 | 11:01 pm

Injured, but still stickin' with the Army

Army Sgt. Angel Herrera drove trucks for an engineering unit in Afghanistan until serious wounds from a rocket-propelled grenade ended her tour of duty. But she's not ready to give up her stripes.
Source: Marketplace Money | 20 Feb 2009 | 7:13 pm

He's not leaving any soldier behind

Patrick Sowers found a good job with higher pay and less work than he'd known as an Army sergeant. That bothered him. He's been paying back ever since, to the benefit of thousands of people in uniform.
Source: Marketplace Money | 20 Feb 2009 | 7:09 pm

She's a veteran of charities' pleas

Yvonne Oppenheimer's brother couldn't say no to charities claiming to raise money for veterans. Now, even though he's deceased, the solicitations keep coming. Nancy Marshall Genzer reports.
Source: Marketplace Money | 20 Feb 2009 | 7:07 pm

The wrong dress blues for this Marine

"Jarhead" author Anthony Swofford recalls how, despite needing to save money for college, he just couldn't schlep deep dish in the desert while still a member of the world's most elite fighting force.
Source: Marketplace Money | 20 Feb 2009 | 7:05 pm

Paying a big price for military service

When duty called, chiropractor Daniel Bordelon didn't turn his back. The Army National Guard colonel, who nearly drowned in Hurricane Katrina, gave up his practice at a huge loss to serve in rebuilding New Orleans.
Source: Marketplace Money | 20 Feb 2009 | 7:03 pm

'I will take care of my son'

When members of the Armed Forces are seriously wounded, their families and friends face putting aside their own careers and goals to lend support. Jeff Tyler reports on the impact of a soldier's injury on his mother and sister's bottom line.
Source: Marketplace Money | 20 Feb 2009 | 7:01 pm

Ex-military in step with middle class

About half of the 16 million Americans who served in World War II parlayed their active duty into a middle-class civilian life. Can today's military personnel anticipate a similar future? Tess Vigeland asked military sociology professor David Segal.
Source: Marketplace Money | 20 Feb 2009 | 6:56 pm

Getting personal finances ship shape

The branches of the military consider financial fitness as important as physical training. About three years ago the Navy ramped up its financial counseling service. Tess Vigeland visited the San Diego Naval Base to see how it works.
Source: Marketplace Money | 20 Feb 2009 | 6:38 pm

TheStreet.com (TSCM) Highlights From Q4 Conference Call; Things Are Tough “But We Have Cash”

TheStreet.com (Nasdaq: TSCM) released its Q4 results tonight and reported EPS of breakeven, in-line with the analyst estimates. Revenue for the quarter was $16.5 million, versus the consensus of...

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Source: 247 Wall Street | 20 Feb 2009 | 2:16 pm

5 Little Known Facts About the Academy Awards

You know them for the red carpet, the stars’ dresses, and the corny acceptance speeches. But did you know that the first Academy Awards were a private function hosting only 250 people? Check out the five little-known facts about the Academy Awards below:

1. The 1st annual Academy Awards were held in 1929. The setting was a private dinner at Hollywood’s Hotel Roosevelt. The audience consisted of fewer than 250 people—amazing by today’s standards.

2. During the first ten years of the Academy Awards’ existence, Oscar winners’ names were handed to newspapers at 11pm on award night. One year, the LA Times announced the award winners before the Academy actually gave them out. Since then, the awards have been sealed in envelopes.

3. The Oscar statue is made of britannium—a type of tin alloy—and plated with gold. It weighs about 8 ½ pounds and is more than a foot tall. Fifty statues per year are manufactured in Illinois by a company called R.S. Owens.

4. Nobody knows where the name “Oscars” came from. One claim says that actress Bette Davis named the award after Harmon Oscar Nelson, her first husbad. Another claim depicts Academy Executive Secretary Margaret Herrick remarking that the statuette reminded her of Oscar, her uncle.

5. Oscar winners don’t actually own their trophies. A 1950 Academy rule dictates that winners and heirs must offer their statuettes back to the Academy for $1 before offering them on the open market. If they refuse, the Academy keeps the Oscar. Pre-1950 Academy Awards have been sold for millions of dollars.

Source: Business Pundit | 20 Feb 2009 | 2:14 pm

Gordon Brown claims new measures will stem home repossessions

Prime Minister believes new measures will ease record numbers of people losing their homes.
Source: Telegraph Finance | 20 Feb 2009 | 2:08 pm

Wall Street poised for losses amid global sell-off (AP)

AP - Wall Street is poised to extend its losses a day after the Dow sank to its lowest level in more than six years and triggered a global sell-off overnight.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 2:08 pm

US prices rise by 0.3% in January

Prices in the US rose in January for the first time in six months on the back of rebounding energy prices
Source: Financial Times - US homepage | 20 Feb 2009 | 2:07 pm

Saab files for creditor protection

General Motors' loss-making Swedish carmaker Saab Automobile said it would seek legal protection from creditors to allow it to restructure and seek new funding
Source: Financial Times - US homepage | 20 Feb 2009 | 2:06 pm

U.S. consumer prices rise in January on energy (Reuters)

Reuters - U.S. consumer prices rose in January as energy costs rebounded, government data showed on Friday, temporarily easing fears of deflation amid a severe economic downturn.

Source: Yahoo! News: Business | 20 Feb 2009 | 2:03 pm

U.S. consumer prices rise in January on energy

WASHINGTON (Reuters) - U.S. consumer prices rose in January as energy costs rebounded, government data showed on Friday, temporarily easing fears of deflation amid a severe economic downturn.
Source: Reuters: Business News | 20 Feb 2009 | 2:03 pm

German insurer AOK postpones generic drug contracts

FRANKFURT, Feb 20 (Reuters) - German health insurer AOK said it is to postpone 2.3 billion euros ($2.94 billion) worth of bulk procurement contracts for generic drugs by about three months, after drugmakers...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 2:02 pm

GM's Saab wins creditor protection, seeks savior

STOCKHOLM (Reuters) - Loss-making Nordic carmaker Saab's fight for survival moved up a gear on Friday as the General Motors unit won protection from creditors while it tries to find a new partner and raise fresh funds.
Source: Reuters: Business News | 20 Feb 2009 | 2:01 pm

Global equities fall as investors shun risk

Global equities fell to levels not seen since November as investor appetite for risk waned benefiting the dollar and gold
Source: Financial Times - US homepage | 20 Feb 2009 | 2:00 pm

NewsWatch: Futures point to more losses for Wall Street

U.S. futures indicate a rough session to finish the week, after the Dow industrials closed below the key 7,500 level in the previous session and with plenty of gloomy news to keep buyers at bay ahead of the weekend.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 2:00 pm

Indications: Stock futures signal opening slide; prices flat over past year

U.S. futures indicate a rough session to finish the week, after the Dow industrials closed below the key 7,500 level in the previous session and with plenty of gloomy news to keep buyers at bay ahead of the weekend.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 2:00 pm

New Issue-DCP Midstream sells $450 mln 10-yr notes

Feb 20 (Reuters) - DCP Midstream LLC, parent of DCP Midstream Partners LP , on Thursday sold $450 million of 10-year notes in the 144a private placement market, said IFR, a Thomson Reuters service.
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:59 pm

Shares of BofA, Citi fall on nationalization fears

NEW YORK/FRANKFURT (Reuters) - Shares of Bank of America Corp and Citigroup Inc plummeted for the sixth straight day on Friday, hammered by increasing fears that the U.S. government could take the control of the banks, wiping out shareholders.
Source: Reuters: Business News | 20 Feb 2009 | 1:59 pm

Lowe's 4Q profit falls sharply as shoppers scrimp (AP)

AP - Lowe's Cos. Inc., the nation's second biggest home improvement retailer, said Friday its fourth-quarter profit dropped 60 percent and forecast 2009 earnings that are short of Wall Street's expectations.
Source: Yahoo! News: Business | 20 Feb 2009 | 1:57 pm

GM's Saab wins creditor protection, seeks savior (Reuters)

Reuters - Loss-making Nordic carmaker Saab's fight for survival moved up a gear on Friday as the General Motors unit won protection from creditors while it tries to find a new partner and raise fresh funds.

Source: Yahoo! News: Business | 20 Feb 2009 | 1:55 pm

Before the Bell: Gold, GM Bank of America in focus

U.S. futures were indicating a rough finish to the week for Wall Street on Friday, after the Dow industrials closed below the key 7,500 level in the previous session and with plenty of gloomy news to keep buyers at bay ahead.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:53 pm

J.C. Penney profit tops view; quarterly loss seen

NEW YORK (Reuters) - Department store operator J.C. Penney Co Inc posted a higher-than-expected profit on Friday, but said its loss in the current quarter would be deeper than Wall Street estimates as shoppers hold off on spending.
Source: Reuters: Business News | 20 Feb 2009 | 1:51 pm

Bond Report: Treasurys gain as bank fears spur new flight to safety

Treasurys gained Friday, pushing yields lower for the first day in three, as investors fear that the government's efforts to rescue the financial system may fall short.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:51 pm

Saab aims to survive without GM

The board of the Swedish carmaker Saab files for reorganisation, seeking to create a fully independent business.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 1:45 pm

Wall Street heads toward lower opening

Wall Street is poised to extend its losses a day after the Dow sank to its lowest level in more than six years and triggered a global sell-off overnight. Prices were already lower ahead...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:43 pm

Futures Movers: Oil futures fall, tracking U.S. stock futures lower

Oil futures decline 4% after their strong rally in the previous session, as falling U.S. stock futures and economic concerns dent investor sentiment.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:42 pm

London Markets: FTSE 100 slides below 4,000 in broad sell-off; Anglo slumps

London shares fall sharply with the top index trading firmly below the key 4,000 level, as banks, oil producers and mineral extractors all decline.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:40 pm

Energy costs push consumer prices up in January

Consumer prices rose by the most in six months in January, propelled by higher energy costs. But over the past year inflation has been flat, the lowest reading in more than a half-century.
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 1:38 pm

January rise in consumer prices largest since July

Consumer prices rose by the most in six months in January, propelled by higher energy costs. But over the past year inflation has been flat, the lowest reading in more than a half-century.
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:37 pm

Swiss bank shares tumble as UBS tax probe widens

ZURICH/GENEVA (Reuters) - Shares in UBS hit record lows on Friday as Swiss bank shares reeled on concern a widening U.S. tax probe will weaken Switzerland's strict privacy rules and damage the country's wealth management industry.
Source: Reuters: Business News | 20 Feb 2009 | 1:36 pm

Metals Stocks: Gold futures hit intraday high of $998.50 an ounce

Gold futures soar as high as $998.50 an ounce as investors spooked by the sell-off in U.S. stock futures and international stock markets sought safety in the precious metal.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:36 pm

Deflation Fears Dry Up

If you can imagine any good news at all on the economic front, the good news is that consumer level inflation is running at very low levels.  January’s CPI was measured at +0.3% and measured at...

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Source: 247 Wall Street | 20 Feb 2009 | 1:34 pm

UPDATE 1-Venoco to record $645 mln charge in Q4

Feb 20 (Reuters) - Venoco Inc said it expects to record a non-cash writedown of about $645 million in the fourth quarter to reflect the fall in value of its reserves following the steep decline in commodity...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:34 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:31 pm

Economic Report: Consumer prices flat over past year

With energy prices tumbling 20%, U.S. consumer prices are unchanged over the past 12 months, the lowest inflation rate since 1955, the Labor Department reports.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:31 pm

Financial Literacy Goes YA

watch?v=iHd4fv3moPE

YA is publishing jargon for ‘young adult’. It describes a genre of fiction designed to appeals to teenagers. And this is the group of people who, if we educate them properly, can make the biggest impact on our economy the soonest. So it’s great that someone is making an effort to entertain them and teach them about money at the same time. The problem is that when financially literate adults try to create something cool for kids, it’s usually a disaster. Take the dreadful Treasury campaign for example.

When I read about the new ‘Buck the Norm’ campaign produced by Oklahoma based Tinker Federal Credit Union to educate young adults about money matters, I couldn’t wait to watch it - so I could pan it. My pre-judgment was based partially the Treasury Department’s similar attempt and partially on the fact that Oklahoma City isn’t exactly the cultural hotbed of America. (I don’t say that as a coast dwelling media elite either - I’m right here in Middle America!)

However, I have to admit the video is not bad. The tune is catchy and the message is on point. Instead of going for a be-responsible-with-your-money angle, they encourage young adults to consume less and not buy into the oppression of the Marketing Man and the Credit Card Man. Rebel and sustain!

The associated website, www.BuckTheNorm.com, is pretty good too. Despite needing to be updated with a little more regularity, there is good information and interactivity. Along with information on how to get a truly free credit report, advice on interviewing and resume development, and a glossary of financial terms, they’re running a video contest, offering downloadable art and ring tones, and featuring some pretty decent local music.

In the words of Matt Stratton, TFCU Senior Vice President of Marketing:

“Personal financial management doesn’t have to be all doom and gloom.”

Buck it, baby!

Source: Business Pundit | 20 Feb 2009 | 1:30 pm

PrivateBancorp, Inc. to Present at the Super Community Bank Conference

CHICAGO, Feb. 20 /PRNewswire-FirstCall/ -- PrivateBancorp, Inc. (Nasdaq: PVTB) today announced its management team is scheduled to present at the Super Community Bank Conference...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:30 pm

Anthony F. Earley, Jr. Resigns From Comerica Incorporated Board of Directors

DALLAS, Feb. 20 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) has announced the resignation of DTE Energy Company Chairman and Chief Executive Officer Anthony F....
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:30 pm

Prudential to take 9.9% stake in China Life

British insurance group Prudential Plc. Friday agreed to acquire a 9.9 percent stake in Taiwan's China Life Insurance, the two firms said after signing the deal. Prudential has agreed to
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:27 pm

J.C. Penney profit tumbles 51%; loss seen in first quarter

J.C. Penney Co.’s fourth-quarter profit falls 51% after a dismal holiday selling season accompanied by steep promotions to attract shoppers reluctant to spend. The company gives a loss forecast for the first quarter that was bigger than Wall Street expectations.

Source: MarketWatch.com - Top Stories | 20 Feb 2009 | 1:26 pm

Prudential to take 9.9% stake in China Life (AFP)

AFP - British insurance group Prudential Plc. Friday agreed to acquire a 9.9 percent stake in Taiwan's China Life Insurance, the two firms said after signing the deal.

Source: Yahoo! News: Business | 20 Feb 2009 | 1:25 pm

Penney reports 51 percent slide in 4Q profit

J.C. Penney says fourth-quarter profit fell 51 percent as customers sharply cut spending on clothing and other more discretionary purchases as the recession deepened. The Plano, Texas...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:24 pm

FBI hands Allen Stanford fraud charges in Virginia

WASHINGTON/ST.JOHN'S (Reuters) - Texas billionaire Allen Stanford, accused of an $8 billion fraud that spooked investors around the world, was served with the formal complaint on Thursday by FBI agents in Virginia.
Source: Reuters: Business News | 20 Feb 2009 | 1:23 pm

Oil prices drop as equities tumble

Oil prices slid on Friday as traders took their cue from tumbling global equity markets amid the worldwide economic slowdown that has slashed energy demand, analysts said. Brent North...
Source: RSS feed - channel BNewsBusiness | 20 Feb 2009 | 1:21 pm

Oil falls below $38 as economic outlook worsens

LONDON (Reuters) - Oil fell more than $2 a barrel to below $38 on Friday, retreating as the global economic outlook deteriorated, dragging stock markets down across the world.
Source: Reuters: Business News | 20 Feb 2009 | 1:19 pm

Oil falls below $38 as economic outlook worsens (Reuters)

Reuters - Oil fell more than $2 a barrel to below $38 on Friday, retreating as the global economic outlook deteriorated, dragging stock markets down across the world.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 1:19 pm

Netanyahu to form unity government in Israel

Benjamin Netanyahu, leader of Israel's right-wing Likud party, moved closer to making his comeback as prime minister after being tapped by the country's president to form a governing coalition
Source: Financial Times - US homepage | 20 Feb 2009 | 1:19 pm

Top Analyst Upgrades & Downgrades (ADPT, CBST, FLIR, MA, TEX, LXK, MCXH, V, XRX, ZRAN)

These are the top pre-market analyst upgrades and downgrades we have seen from Wall Street this Friday morning: Adaptec (ADPT) Raised to Outperform at Morgan Keegan. Cubist Pharamceuticals (CBST)...

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Source: 247 Wall Street | 20 Feb 2009 | 1:18 pm

TRW posts loss, sees 25 percent drop in 2009 sales

DETROIT (Reuters) - TRW Automotive Holdings Corp posted a quarterly loss on Friday, slammed by sharp production cuts by automakers, and the parts manufacturer forecast a decline of at least 25 percent in revenue this year.
Source: Reuters: Business News | 20 Feb 2009 | 1:14 pm

Lowe's posts sharp drop in profit

ATLANTA (Reuters) - Lowe's Cos reported a sharp drop in quarterly profit on Friday as it marked down prices to lure consumers in the recession and it gave profit forecasts that fell short of Wall Street estimates.
Source: Reuters: Business News | 20 Feb 2009 | 1:11 pm

FBI hands Allen Stanford fraud charges in Virginia (Reuters)

Reuters - Texas billionaire Allen Stanford, accused of an $8 billion fraud that spooked investors around the world, was served with the formal complaint on Thursday by FBI agents in Virginia.

Source: Yahoo! News: Business | 20 Feb 2009 | 1:10 pm

Sir Allen Stanford: Warnings about Texan cricket tycoon made six years ago

Several warnings were made about Sir Allen Stanford the Texan cricket tycoon accused of a £5.6billion fraud up to six years ago.
Source: Telegraph Finance | 20 Feb 2009 | 1:10 pm

JCPenney (JCP) Sees Store Sales Off As Much As 15% This Quarter

The good news from JCPenney (JCP) was that it finished the year with $3.4 billion in cash. The bad news is that the company is slowly disappearing. It expects same-store sales in the current quarter...

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Source: 247 Wall Street | 20 Feb 2009 | 1:09 pm

Opening Bell: 02.20.09

BofA's Lewis Subpoenaed Over Merrill; Thain Talks (WSJ)
How about everyone keeps their bonus and we can stop hearing about it?
"Bank of America Chairman and Chief Executive Kenneth Lewis was issued a subpoena by New York State Attorney General Andrew Cuomo, who is investigating whether the bank withheld information from investors in violation of state law, according to people familiar with the matter.

Mr. Lewis, who received the subpoena late last week, is the highest-profile subject of Mr. Cuomo's investigation into the Charlotte, N.C., bank's purchase of Merrill Lynch & Co. on Jan. 1. Mr. Cuomo's office is trying to determine if investors were misled about the depth of Merrill's losses in late 2008 and whether details of the bonuses to Merrill employees, contained in a nonpublic document, should have been disclosed to investors."

Prudential Looking To Expand (Reuters)
"Prudential Financial Inc (PRU.N) is leading the race to buy two Japanese life insurers put on sale by American International Group Inc (AIG.N) in a deal due to close next week, sources familiar with the matter said on Friday.

AIG Edison Life Insurance Co and AIG Star Life Insurance were put on the block last year as part of AIG's efforts to shed assets globally following a bailout by the U.S. government."

Hints Of A Credit Thaw (Bloomberg)
For those of you that can remember back far enough: this actually started as a liquidity problem. That the liquidity problem managed to catapult itself into equities isn't exactly unexpected, but it's a little off putting that there's any expectations that new found liquidity in the debt markets will in turn show growth in equities.

"Corporate bond trading in the U.S. is rising to the highest in two years, adding to evidence that credit markets are thawing even with stocks off to their worst start since the 1920s as the recession deepens.

An average $17.1 billion of corporate bonds traded daily this month, compared with $17.7 billion in January, according to the Financial Industry Regulatory Authority. The business is up from last year's low of $9.4 billion in August and reached the highest level since February 2007, Finra data show."

Government Plans To Float Loans To Hedge Funds and PE Firms (NYT)
The Administration is planning on making available as much as $1T to hedge funds and private equity firms in hopes that they'll take the money and buy bundled loans. The only hedge funds I could imagine would take the money are the ones that are failing miserably, though: there's not a stable fund on the planet that would risk government intervention to source capital.

The BBC's Contribution To Our Graphics Filled Morning (BBC)
The BBC has and graciously provided this morning's chief source of entertainment: the bailout as expressed through nine graphics, with three part harmony.

Source: Dealbreaker | 20 Feb 2009 | 1:07 pm

Centaur warns on profits as ads plummet

Centaur Media, the publisher of Marketing Week and The Lawyer, issued a profits warning this morning after saying that recruitment advertising in January and February was one-third the level seen a year ago.
Source: Latest Business News from Times Online | 20 Feb 2009 | 1:05 pm

Futures signal more Wall Street pain on bank woes

NEW YORK (Reuters) - U.S. stock index futures fell on Friday, putting Wall Street on track to extend a rout that has pulled the Dow Jones industrials to a fresh bear-market low as worries about the fate of major banks mount.
Source: Reuters: Business News | 20 Feb 2009 | 12:59 pm

Futures signal more Wall Street pain on bank woes (Reuters)

Reuters - U.S. stock index futures fell on Friday, putting Wall Street on track to extend a rout that has pulled the Dow Jones industrials to a fresh bear-market low as worries about the fate of major banks mount.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 12:59 pm

Futures signal more Wall Street pain on bank woes (Reuters)

Reuters - U.S. stock index futures fell on Friday, putting Wall Street on track to extend a rout that has pulled the Dow Jones industrials to a fresh bear-market low as worries about the fate of major banks mount.

Source: Yahoo! News: Business | 20 Feb 2009 | 12:59 pm

Pensioner inflation: How the elderly can spend less and boost their income

Inflation - 0.1pc for the population as a whole - is as high as 9pc for pensioners. Here's how they can combat rising prices.
Source: Telegraph Finance | 20 Feb 2009 | 12:43 pm

Citi, BofA down on nationalization fears (Reuters)

Reuters - Shares of Citigroup and Bank of America fell in premarket trade on Friday on the fear that the banks would be nationalized, according to traders.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 12:36 pm

Oil spikes above $40 due to short-covering; bearish case remains intact

Joseph Lazzaro, DailyFinance Oil surged more than 7% Thursday and briefly traded above $40, after U.S. weekly oil inventories unexpectedly declined. But traders don’t view it as a market...

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Source: 247 Wall Street | 20 Feb 2009 | 12:36 pm

World stocks slide after Dow posts 6-year low (AP)

AP - World stock markets fell sharply Friday as the selling pressure on Wall Street was expected to continue at the open later amid pessimism about the ability of governments to prevent the deepest global economic downturn in generations.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 12:34 pm

Banana company hit by salad problems

Chiquita, which distributes bananas and bagged salads, has reported a quarterly loss despite higher banana prices.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 12:19 pm

AAPL Analyst Gene Munster: Good Perspective, Poor Price Targeting

While some folks believe Piper Jaffray’s Gene Munster is an Apple perma-bull (his firm makes a market in AAPL stock), a look back will tell you Gene gets it right more often than his peers. Munster...

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Source: 247 Wall Street | 20 Feb 2009 | 12:18 pm

RBS prepares sale of Asian assets

The stricken UK lender has hired Morgan Stanley assist in the sale of its Asian assets, the clearest sign to date that it is planning to cull some of its international operations
Source: Financial Times - US homepage | 20 Feb 2009 | 12:08 pm

UK car production slumps nearly 60%

Car production in the UK slumped by almost 60 per cent in January as demand for new vehicles evaporated amid the deepening recession, the Society of Motor Manufacturers and Traders (SMMT) announced today.
Source: Latest Business News from Times Online | 20 Feb 2009 | 11:40 am

The Wrong Way To Fix The New York Times (NYT)

The New York Times (NYT) suspended its dividend. That says a lot about what it sees as it looks out of the next quarter.  Print and online advertising must be getting much worse than last year. Less...

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Source: 247 Wall Street | 20 Feb 2009 | 11:35 am

Saab files for creditor protection

Saab the lossmaking carmaker owned by General Motors on Friday sought legal protection from creditors to allow it to restructure and seek new funding for continued production.
Source: Telegraph Finance | 20 Feb 2009 | 11:34 am

The Council of Mortgage Lenders: Buytolet repossessions double

Twice as many buytolet properties were repossessed last year as in 2007 according to the Council of Mortgage Lenders.
Source: Telegraph Finance | 20 Feb 2009 | 11:29 am

Profit alert hits Cattles shares

Shares in loans firm Cattles dive 41% after it warns its profits will be "substantially lower" than market expectations.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 11:26 am

Keeping The Dow Above 6,000

Now that the DJIA has dropped below 7,500 it is clear that its next stop may be much lower. The market is still terribly concerned about the banking system. Rumors about better access to credit are...

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Source: 247 Wall Street | 20 Feb 2009 | 11:23 am

As Saab Moves To Bankruptcy, Concerns About Detroit Rise

Will GM (GM) and Chrysler file for protection from creditors, their unions, and supplier costs? Now there is a recent precedent to do so, maybe they are more likely to. Saab went belly up. According...

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Source: 247 Wall Street | 20 Feb 2009 | 11:13 am

Ask AP: Mortgage help, troops in Afghanistan (AP)

AP - You're struggling to make ends meet, but each month you manage to scrape together your mortgage payment, if just barely. Are there any programs out there that might help you lower your payments to something a little more affordable?

Source: Yahoo! News: Business | 20 Feb 2009 | 11:01 am

US claims 52,000 hid UBS accounts

As many as 52,000 American customers hid UBS accounts from the authorities in violation of tax laws, a US government lawsuit against the Swiss bank alleged
Source: Financial Times - US homepage | 20 Feb 2009 | 10:53 am

Sharp fall in UK car production

The number of new UK-made cars fell dramatically in January, says the Society of Motor Manufacturers and Traders.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 10:49 am

Retail sales rose in January as shoppers searched for bargains

Retail sales rose 0.7pc last month despite the recession the Office for National Statistics said on Friday as shoppers hunted for bargains in the January sales.
Source: Telegraph Finance | 20 Feb 2009 | 10:44 am

March Will Be The Tipping Point Of The Recession

Does the economy get worse from here or do the government programs recently signed into law increase confidence and start to put capital to work to create jobs and build businesses? In a downturn the...

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Source: 247 Wall Street | 20 Feb 2009 | 10:37 am

Repossessions: 10 tips for worried home owners

Repossessions are set to double this year with more than 200000 home owners already three month in arrears.
Source: Telegraph Finance | 20 Feb 2009 | 10:23 am

Home repossessions rise 54pc to 40000

The number of UK homes repossessed last year rose 54pc to a 12year high of 40000 new figures show.
Source: Telegraph Finance | 20 Feb 2009 | 10:21 am

Most Mall Space? That Would Be Us

The story we aired this morning about the giant companies you've probably never heard of that own shopping malls across the country, ended with this fact:

The U.S. has 20 square feet of real estate person per person. That's six times more than any other country.

So what country is number two?

Here's the ranking according to some numbers compiled by Shopping Centers Today magazine in 2005.

#1: U.S. (20.2 square feet per person)
#2: Sweden (3.3)
#3: Netherlands (3.0)
#4 Austria and U.K. (2.5)
#5: France (2.3)
#6: Spain (2.1)
#7: Portugal (1.7)
#8: Germany (1.4)
#9: Italy (1.1)

Thanks to June Williamson, co-author of Retrofitting Suburbia, and an architecture professor at The City College of New York/CUNY for the tip.

The ranking above looks at something called Gross Leasable Area. June says she thinks Sweden is #2 because of what she calls the "Ikea effect."

Gross Leasable Area is the square footage in a building that can be rented out to tenants, so it excludes common space like shared service areas and the "malls" in malls, but would include the storage space in big box warehouse stores like Costco and Ikea.

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Source: NPR Blogs: Planet Money | 20 Feb 2009 | 10:06 am

UK car production falls 58.7pc

The dramatic decline in the UK auto industry has been confirmed by a 58.7pc fall in car production in January.
Source: Telegraph Finance | 20 Feb 2009 | 10:05 am

UK retail sales rise in January

UK retail sales increased in January, as shoppers took advantage of big price cuts, official figures show.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 9:53 am

Home repossessions jump 54% as mortgage arrears soar

The number of people losing their homes rose by 54 per cent last year to a 12-year high, while the number of homeowners in arrears soared by 70 per cent, figures show.
Source: Latest Business News from Times Online | 20 Feb 2009 | 9:48 am

Slump hits China multinationals

Nearly 70% of multinational firms in China plan to cut recruitment, and more than a quarter have laid off staff, a survey suggests.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 9:39 am

Prudential allays market fears over capital

Prudential, the life assurer, allayed market fears over its capital position this morning and said that it could withstand a near-collapse in the stock market.
Source: Latest Business News from Times Online | 20 Feb 2009 | 9:38 am

Rentokil shares tumble after scrapping dividend

Shares in Rentokil the world's largest pestcontrol provider tumbled on Friday morning after the company scrapped its final dividend as it seeks to preserve cash.
Source: Telegraph Finance | 20 Feb 2009 | 9:35 am

Anglo American to cut 9,000 jobs

Mining giant Anglo American is to cut 9,000 jobs, on top of the 10,000 losses already announced at its Anglo Platinum unit.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 9:10 am

Saab seeks bankruptcy protection in battle for survival

Saab, the embattled carmaker, filed for bankruptcy protection today after losses threatened its survival.
Source: Latest Business News from Times Online | 20 Feb 2009 | 8:55 am

Economy fears hurt stock markets

Stock markets fall in Friday trading after the Dow Jones index slid to its lowest close in six years, hitting investor confidence.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 8:50 am

London stocks sink in early trade (AFP)

AFP - London stocks sank in early trade on Friday led by mining and energy stocks amid intensifying investor fears about the state of the global economy.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 8:50 am

Stocks slide, Obama rejects protectionism (AFP)

AFP - Asian stocks fell on Friday after Wall Street sank to six-year lows as rising unemployment stoked fears of a deep US recession and investors shrugged at a US vow to avoid protectionism.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 8:17 am

Rentokil's profits almost halve

Rentokil Initial sees its annual profits almost halve due to restructuring work, and tougher trading conditions.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 8:06 am

Global downturn: In graphics

Some of the key facts and figures behind the turmoil in the global financial markets.
Source: BBC News | Business | World Edition | 20 Feb 2009 | 8:04 am

Rentokil scraps dividend as profits plunge

Rentokil Initial, the UK's leading pest-controller, said today that it will scrap its dividend to preserve cash as pre-tax profits last year plunged almost 84 per cent from £142 million to £22.8 million.
Source: Latest Business News from Times Online | 20 Feb 2009 | 8:03 am

Australian stocks: Market closes in the red

PERTH - The Australian stock market closed firmly in the red due to profit taking following a negative lead from United States markets overnight. The benchmark S&P/ASX200 index was down 46.5 points, or 1.35 per cent, at 3,402.4...
Source: New Zealand Herald - Business | 20 Feb 2009 | 8:02 am

U.S. files new lawsuit in UBS bank secrets case

The government is seeking the identities of thousands of possible U.S. tax cheats who hid billions of dollars in assets in Swiss accounts. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Southern California home prices fall to 2002 levels

January's median sales price falls 40% from a year earlier, to $250,000. As the Southland's bubble continues to deflate, the ratio of price to income has returned to normal, analysts say. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Unemployment numbers are worse than expected

The number of laid-off workers receiving unemployment benefits has jumped to an all-time high near 5 million while new jobless claims remain well above 600,000. Both figures were worse than expected and...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Westfield malls to cut shopping hours

Most of the centers in the U.S. will open 30 minutes later and close 30 minutes earlier on weekdays. Some will close an hour earlier Sundays. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

John Laing Homes files for Chapter 11

Little demand for new homes knocked the 161-year-old Irvine firm back on its heels, a representative says. Some say the bankruptcy protection filing may be mainly a strategic business move. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Better fuel economy of Lexus RX450h doesn't justify the extra cost

But buyers may still be attracted to the luxury crossover, given the increasing acceptance of hybrids as a socially approved good thing. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

SAG talks collapse as studios hold firm

After three days, negotiations falter over the start date and duration of the actors' contract. No new talks are scheduled. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Housing relief becomes a fence between neighbors

Some believe the $75-billion proposal could provide the help they need to stay in their homes. Others -- even though they 'feel for people who are having trouble' -- say it's a taxpayer-funded bailout...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

FBI locates financier R. Allen Stanford in Virginia

The Texas billionaire is served civil papers in an SEC case accusing him of running an $8-billion investment scam. No criminal charges have been filed. ...
Source: RSS feed - channel BNPaperBusiness | 20 Feb 2009 | 8:00 am

Massive ad fall could lead to redundancies: TVNZ CEO

The boss of state-owned broadcaster TVNZ said all options are being considered in a bid to cut costs by $25 million after an unprecedented decline in advertising revenue. "Once January hit, boof. I've never seen anything like it...
Source: New Zealand Herald - Business | 20 Feb 2009 | 7:50 am

Anglo American cuts 19,000 jobs

Anglo American is to cut another 9,000 jobs in addition to 10,000 previously announced and scrap its dividend after posting lower than expected profits, the mining giant said this morning.
Source: Latest Business News from Times Online | 20 Feb 2009 | 7:39 am

NZ stocks: Market down over corporate debt concerns

The ongoing collapse of the PGG Wrightson share price was a feature on a very bleak day on the share market. The US stock market dived and the local news even from well regarded listings was bad. "You'd have to say that the...
Source: New Zealand Herald - Business | 20 Feb 2009 | 6:32 am

Savings in store for sailors, Marines

While visiting the San Diego Naval Base, Marketplace Money stopped in at the Navy Exchange where products are discount-priced to set sale.
Source: Marketplace Money | 20 Feb 2009 | 6:00 am

Clinton urges N Korea back to nuclear talks

US Secretary of State Hillary Clinton has warned North Korea against making provocative moves and urged it to get back to nuclear talks, adding that ties with Washington will not improve if it keeps insulting the South
Source: Financial Times - US homepage | 20 Feb 2009 | 5:40 am

Currency: NZ Dollar drifts lower

The New Zealand dollar embarked on a slow drift down today and is expected to remain hostage to events outside New Zealand next week. The NZ dollar was worth US50.36c at 5pm from US51.20c at 5pm yesterday. The big move was on...
Source: New Zealand Herald - Business | 20 Feb 2009 | 5:37 am

Ratings agency downgrades Qantas outlook

SYDNEY - Ratings agency Moody's Investor Service has downgraded its outlook for Qantas Airways Ltd due the carrier's high debt and strained profitability. Moody's downgraded the long-term senior unsecured rating of Qantas from...
Source: New Zealand Herald - Business | 20 Feb 2009 | 5:34 am

FBI tracks down Texas financier in fraud case (AP)

AP - Texas financier R. Allen Stanford was tracked down Thursday in Virginia, where FBI agents served him with legal papers in a multibillion-dollar fraud case.

Source: Yahoo! News: Business | 20 Feb 2009 | 4:22 am

FBI tracks down Texas financier in fraud case (AP)

AP - Texas financier R. Allen Stanford was tracked down Thursday in Virginia, where FBI agents served him with legal papers in a multibillion-dollar fraud case.

Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 4:22 am

BNZ offers special 4.99pc mortgage rate

BNZ has announced it is offering a 4.99 per cent mortgage interest rate for a special six month mortgage rate as part of its "out of the box" package, which requires borrowers to take out two other products (such as credit cards...
Source: New Zealand Herald - Business | 20 Feb 2009 | 3:57 am

Govt accounts take KiwiRail hit

There is an admission of an accounting kind in the Government's latest accounts that the Government paid too much for rail. A note reveals that the rail business the Government paid $690 million for on July 1 last year valued up...
Source: New Zealand Herald - Business | 20 Feb 2009 | 3:30 am

Sky TV profits down on hi-def spend up

Sky TV's profits fell 16.5 per cent in the six months to the end of December, despite increased revenue and an all-time high in subscriber numbers. The pay television network today said it would pay a dividend of 7 cents per share,...
Source: New Zealand Herald - Business | 20 Feb 2009 | 3:00 am

SEC names Robert Khuzami new enforcement chief (AP)

AP - The Securities and Exchange Commission on Thursday named a former federal prosecutor as its new enforcement chief to lead the embattled agency's drive to strengthen its pursuit of financial fraud.
Source: Yahoo! News: Stock Markets News | 20 Feb 2009 | 2:52 am

Billionaire Stanford found by FBI

WASHINGTON - Texas financier Allen Stanford has been found in Virginia and served with legal papers in a multibillion-dollar fraud case. FBI spokesman Richard Kolko says FBI agents, acting at the request of the Securities and Exchange...
Source: New Zealand Herald - Business | 20 Feb 2009 | 2:30 am

Sprint: Google phone on the way

Source: Business and financial news - CNNMoney.com | 20 Feb 2009 | 2:08 am

Missing billionaire found in Virginia

Federal agents have located financier Robert Allen Stanford and served him with papers accusing him and three of his companies of orchestrating a $9.2 billion investment fraud scheme, the FBI said Thursday.
Source: Business and financial news - CNNMoney.com | 20 Feb 2009 | 1:41 am

Department of Energy unveils spending timeline

Source: Business and financial news - CNNMoney.com | 20 Feb 2009 | 1:26 am

U.S. sues UBS to disclose secret accounts

The U.S. government Thursday sued UBS, Switzerland's largest bank, to force the firm to give the Internal Revenue Service secret account information on thousands of accounts believed to be worth nearly $15 billion.
Source: Business and financial news - CNNMoney.com | 20 Feb 2009 | 1:26 am

Iran holds enough uranium for bomb

UN officials say Tehran has produced more nuclear material than previously thought
Source: Financial Times - US homepage | 20 Feb 2009 | 12:51 am

Business Briefs - Thursday

Watson beats, raises '09 guidance. The branded and generic drugmaker said its Q4 EPS rose 51.4% to 53 cents ex items, beating views by 3 cents....

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:36 am

FBI agents locate Stanford in Virginia

Sir Allen Stanford, whose whereabouts had been unknown since being charged this week by the Securities and Exchange Commission in connection with an alleged $8bn fraud, was located in Virginia by the FBI
Source: Financial Times - US homepage | 20 Feb 2009 | 12:30 am

Hyundai sweetens deal for laid off buyers

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 20 Feb 2009 | 12:21 am

Big Mortgages Are Available, For A Price

Big loan, big headache? The housing and financial crises have made the path to finding a jumbo mortgage trickier to navigate. But loans of $1...

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:18 am

In Brief - Thursday

Coca-Cola (KO), a soft drink giant, raised its quarterly dividend by 8% to 41 cents from 38 cents. It is payable April 1. It rose 1.5% to 43.30.

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:18 am

Medical Company's Products Make Tests Easier, Quicker

For Inverness Medical Innovations, it's all about simplicity and speed.

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:18 am

Trends & Innovations - Thursday

Mobiles boost savings accounts

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:18 am

After The Close - Thursday

MYLAN (MYL), a generic drugmaker, said its Q4 EPS more than doubled to 26 cents ex items, beating views by 12 cents. Revenue grew 4% to $1.20 bil,...

Source: Investor's Business Daily: BUSINESS | 20 Feb 2009 | 12:18 am

Obama reassures Canada on open trade

Barack Obama has assured Canada that the US remains committed to open markets but renewed his call for strengthened labour and environmental protections in the North American Free Trade Agreement
Source: Financial Times - US homepage | 20 Feb 2009 | 12:15 am

Need to know: Airbus production cuts ... BP joint venture ... Tele2 deal

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 20 Feb 2009 | 12:00 am

RBS's pioneer of debt-heavy deals, Leith Robertson, is to go

Royal Bank of Scotland's deputy head of global banking and markets will step down as the nationalised bank prepares to announce further cuts in its investment banking division.
Source: Latest Business News from Times Online | 20 Feb 2009 | 12:00 am

Tax revenue tipped to fall by $1bn, says Treasury

The Crown Accounts continue to paint a gloomy picture for the economy, with Treasury expecting things to get worse. Treasury today released the Government's Financial Statements for the year ended December 31. Treasury deputy...
Source: New Zealand Herald - Business | 19 Feb 2009 | 11:30 pm

How the major market indexes fared Thursday (AP)

AP - Wall Street sold off again Thursday, driving the Dow Jones industrials to their lowest close in more than six years. Investors see no immediate end for the recession, already 14 months old, and have been unassuaged by the Obama administration's economic stimulus package and mortgage relief plan.

Source: Yahoo! News: Stock Markets News | 19 Feb 2009 | 11:16 pm

Dow stumbles to 6-year low

The Dow Jones industrial average slumped to a more than 6-year low Thursday, as fears of a prolonged recession sent stock investors heading for the exits.
Source: Business and financial news - CNNMoney.com | 19 Feb 2009 | 11:12 pm

Deflation warning bells ring louder

Prices are falling for just about everything these days.
Source: Business and financial news - CNNMoney.com | 19 Feb 2009 | 10:48 pm

The most affordable city in America

Crashing home prices have led to the most affordable housing market in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released Thursday.
Source: Business and financial news - CNNMoney.com | 19 Feb 2009 | 10:46 pm

Write-Offs: 02.19.08

$$$ Cheer up: cocaine prices are falling [Cityfile]

$$$ Goldman Sachs Exec's Retirement Seen Tied To Succession [DJ via Clusterstock]

$$$ Coping When a Close Co-Worker Is Laid Off [WSJ]

$$$ Wilbur Ross: Obama Foreclosure Fix Not Enough [Housing Wire]

Source: Dealbreaker | 19 Feb 2009 | 10:24 pm

Presented By:

Source: Dealbreaker | 19 Feb 2009 | 10:24 pm

Dupas Sees `High Hopes' for Novartis's Malaria Treatment

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 10:21 pm

Totally Unfounded Rumor Of The Day: Lazard Canada Kills Everyone

The situation is fluidicy.

Source: Dealbreaker | 19 Feb 2009 | 9:29 pm

Moving Picture: Credit Crisis

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

A lot of our listeners wanted share this video with us, including its designer Jonathan Jarvis. He writes:

I wanted to send you this animation I just posted explaining the subprime crisis simply and in a way (that I think) is good-looking and fun to watch. I am sending it to you because listening to your podcasts and the This American Life episodes in no small way inspired and helped me along the way.

Thanks Jonathan! My favorite part -- the depiction of a subprime mortgage (it's at about 7:30).

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 9:27 pm

Sir Stanford Found!

In the US, by FBI agent, according to NBC, though that's all they're willing to tell us at this time.

Update: He was served with "a number of papers" in Virginia, though he was not arrested (and is now running free??).

Source: Dealbreaker | 19 Feb 2009 | 9:22 pm

Oil jumps 14% on surprise supply drop

Oil prices rose more than 8% Thursday after the government reported that the nation's supplies of crude fell last week for the first time in two months.
Source: Business and financial news - CNNMoney.com | 19 Feb 2009 | 9:16 pm

The problem with Health Savings Accounts

Source: Business and financial news - CNNMoney.com | 19 Feb 2009 | 8:59 pm

You Can Thank Countrywide For The Fire In Ken Lewis's Loins

Late last June, Countrywide CEO Angelo Mozilo told CFC shareholders that Bank of America "will reap the benefits of what we have sowed." And though we were deeply interested seeing how what has got to be the greatest veiled threat EVER would play out, another, possibly more disastrous BAC integration gripped our attention. Today we decided to circle back and see what's been a poppin' re: Bank of Countrywide, and we are delighted to inform you that things are going just great. Here's what Barbara Desoer, the Bank of America executive "in charge of cleaning up and integrating Countrywide" said in an interview with the Charlotte Observer:

Q. Your chief executive (Ken Lewis) recently said that Countrywide is "on fire, in a positive sense." Can you tell us more about what that means?

We're seeing the lowest rates that we've had in a long, long time, so we're the beneficiary of that, with a tremendous amount of volume in both refinancing and purchasing. The capacity that Countrywide brought is enabling us to take advantage of it, so this is reinforcement of "Thank goodness we did the transaction."

Traditionally, fourth quarter takes a meaningful dip in volume, but we've really seen a lot of activity from Nov. 25 forward. That's when the Fed committed to buy up to $500 billion in mortgage-backed securities, in an attempt to bring rates lower. And psychologically, for the consumer, being able to get a rate below 5 percent - that's where the markets are hottest.

Both brands are being very aggressive in marketing. We're paying overtime, extending hours, hiring contractors, hiring full-time employees, taking them from parts of our business that are slower and bringing them into first mortgage.

Source: Dealbreaker | 19 Feb 2009 | 8:38 pm

Ken Griffin Doesn't Need You, Ken Griffin Doesn't Need Any Of You!

Yeah, it looks kinda bad that Misha Malyshev, the Citadel trader who was instrumental in two of the firm's funds gaining 40 percent last year, as opposed to losing nearly 50, has up and peaced, and taken two members of his team with him, but that's because you're thinking about it in the completely wrong way. This isn't a sign of sinking, this is a sign of soaring, and an opportunity for KG to roll up his sleeves and get back into the scrum of things, like he was planning on doing anyway (answering phones, makin' calls, just getting dirty in general, like the old days). As for where traitor-boy is headed, that's unclear, though, like they always say, follow the cookie crumbs. (Or just shoot us a line and say definitively.)

Source: Dealbreaker | 19 Feb 2009 | 8:22 pm

You Can't Hurt Us, Ken Lewis

Because we're already dead inside. But no, seriously, while it is deeply upsetting that former Countrywide CEO and current Bank of America window-washer Angelo Mozilo will no longer be able to log-on to this here site from the comfort of your desktop, as Dealbreaker was blocked at BAC as of 2:30PM today, a mobile version of DB is being rolled out shortly, and we had the foresight to buy the lil' fella an iPhone for his birthday. That's all, and good luck with your firings.

PS: If this was an "accident," like asking the Bank of Amerillwiders who landed in the Hudson to hand over the reimbursed money from US Airways, let us know and it's all good.

Source: Dealbreaker | 19 Feb 2009 | 8:04 pm

Movement From The Fixed Fortifications

Can it be? Could they pull it out of the fire?

Fortress blocked redemptions from its flagship Drawbridge Global Macro Fund in December, telling investors at the time that they would get 72% of their requested withdrawals by April. But on Jan. 22, the New York firm moved up the timetable, promising investors they would get the 72% back this month, subject to a 10% hold-back pending a final audit. The remaining 28% of assets that the investors sought to redeem -- representing illiquid investments -- has been put into a side pocket to be paid out over 18 months.

Fortress, Tudor and Threadneedle Permit Redemptions Again [Hedge Fund Alert via Zerohedge]

Source: Dealbreaker | 19 Feb 2009 | 7:57 pm

At Long Last

You waited. You hoped. You prayed. You bribed. You begged. Now, it has all paid off. You can revel in the details. You can embrace the hypocrisy. You can share in the reflected glory of abject corruption. (Pending appeal).

A Manhattan judge has ordered the government to make public sealed documents about wiretaps in the Eliot Spitzer scandal.

U.S. District Judge Jed S. Rakoff ordered prosecutors Thursday to release documents detailing calls on cell phones used by a prostitution ring whose clients included the former governor. The documents were not immediately released; prosecutors will have a chance to appeal.

Judge orders release of Spitzer wiretap documents [Associated Press]

Source: Dealbreaker | 19 Feb 2009 | 7:51 pm

BofA and Citi shares fall on nationalization fear (Reuters)

Reuters - Citigroup Inc shares fell to almost 18-year lows on Thursday, with Bank of America Corp stock also plunging, amid renewed fears that growing losses could lead to government control of troubled U.S. banks, wiping out shareholders.

Source: Yahoo! News: Business | 19 Feb 2009 | 7:17 pm

Hormats Says U.S. Housing Issues Bigger Than in 1930s

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 6:56 pm

UBS Meets IRS

Papers filed in the U.S. case against UBS contain one particular item that caught the eye of NPR's Avie Schneider. The Swiss bank has agreed to pay $780 million to the U.S. over allegations that it helped American customers skip out on taxes.

Schneider noticed that Exhibit D, a letter telling alleged tax-dodging customers how to close their accounts, urges customers to get straight with the IRS:

What other considerations might apply in connection with the closure of your account.

UBS recommends that you consult with your U.S. tax advisor or tax preparer to determine any applicable U.S. tax consequences in connection with the closure of your existing UBS account, including whether you have any additional U.S. tax return filing or other disclosure obligations with respect to prior tax years or the closure of your account. In the event that you and your tax advisor identify any issues arising from prior tax years, UBS would like to inform you that the Internal Revenue Services (IRS) has a voluntarily disclosure practice to encourage U.S. taxpayers to bring themselves voluntarily into full compliance with the U.S. tax laws, and, in exchange, the IRS may provide for substantial relief from otherwise applicable penalties and fines.

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 6:50 pm

Rabobank's Stretch Sees Yen Losing Perceived Safe-Haven Premium

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 6:25 pm

ING's Carnell Sees Need for More U.S. Stimulus

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 6:20 pm

Service members find work in business

Thousands of men and women leave the military every year and many struggle to find work in the civilian world. Some businesses are making it easier by hiring military workers. Amy Scott visited one of them.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Business opportunities in recession

Businesses are hurting in this recession. But there is a silver lining. Tess Vigeland speaks with Professor Donald Sull about how businesses can thrive in turbulent markets.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Difficulty in diagnosing health of banks

When regulators take a look at the banks' books, they might be in for a surprise. The 38 banks the FDIC has taken over in the past two years have overstated their assets by more than $20 billion. Steve Henn reports.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Wrapping your head around a trillion

In this financial crisis, there are tons of numbers being bandied about -- hundreds of billions of trillions of dollars used to stimulate, bailout and lose. Commentator K.C. Cole says these days, a big number like a trillion is something we can't even grasp.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Bloomberg wants your business in NYC

New York Mayor Michael Bloomberg wants to help his city's slumping financial sector. He announced a plan that will invest millions of dollars to strengthen Wall Street and encourage start-ups to come to the Big Apple. Ashley-Milne Tyte reports.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

What will it take for SEC to regulate?

The SEC is accused of dropping the ball with Madoff. Now there are allegations that Robert Allen Stanford scammed investors out of $8 billion. What does someone have to do to get the watchdog commission's attention? Ronni Radbill reports.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Processing the economic numbers

The economic numbers released today were a mixed bag. Some were bad, others were good -- at least at first glance. Nancy Marshall Genzer takes a closer look at what the numbers add up to.
Source: Marketplace | 19 Feb 2009 | 6:17 pm

Rochelle Says U.S. Bankruptcy Rate Worst in 35 Years

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 6:16 pm

The Foreclosure Debate

We've been interviewing people today about President Obama's foreclosure plan. So far, reaction to it seems to running along two tracks:

First, will it work? Is it aggressive enough to arrest the slide of housing prices and the overall economy? (See Simon Johnson's "Insufficient Boldness.")

Second, should the government be in the business of trying to keep home prices from falling? If the problem is that we had a housing bubble, why try to re-inflate it? (See Patrick.net's "US Housing Crash Continues.")

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 6:16 pm

The Scene In Seattle

Tom O'Brien from Seattle writes:

This is a sign in a restaurant window in Ballard. Welcome to our era. Not exactly a breadline shot.

More pictures after the jump.

This is graffiti from a bathroom in a nice antique store in downtown Seattle. Bad quality photo (suits the subject, I guess). The cuffs of the shackles are labeled "debt"

This was taken tonight, a Wednesday, at our favorite restaurant, Circa, in West Seattle. Neighborhood place, really good food. dinner for 2 was $60 including the tip. Place was full with a 10 minute wait. The great recession does not seem to have hit so hard. Yet. Word is that tips are down.

To see more pictures of the economy or share your own, visit the Planet Money Flickr Pool.

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 5:20 pm

California Budget Passes, to Popular Dismay

A new California budget plan has been approved this morning, after 15 weeks of indecision. The Wall Street Journal reports:

California’s legislature approved a plan Thursday morning to close the state’s $42 billion budget deficit through steep cuts and new taxes, after state leaders corralled the last Republican vote needed to end a 15-week partisan impasse that has battered an already-crippled state economy.

The budget calls for California to generate up to $13 billion in revenue by raising sales taxes one percentage point and adding a surcharge on state income taxes, among other steps. One feature represents a remarkable capitulation for Mr. Schwarzenegger: an increase in the vehicle-license fee from 0.65% to 1.15%. The governor won his post in 2003 after campaigning to cut back the so-called car tax, which he did soon after taking office.

The proposal calls for the state to slash $15 billion in spending, including $8.6 billion from education. To save $1.4 billion from payroll costs, the government will eliminate two state holidays, change overtime rules and furlough workers at least one day a month. The remaining deficit was to be closed mostly through borrowing or with money from a federal-stimulus package.

The spending plan also includes $700 million in tax breaks for large corporations. Voters later this year will have to approve some aspects of the plan, such as a spending cap. The proposed budget outlines spending for the next 17 months. Some of the taxes and cuts will go into effect almost immediately, while others will begin July 1.

The Sacramento Bee reports on how people feel about the budget:

Even before it passed, the budget drew almost universal criticism in California, which, with 37 million residents and a gross state product of $1.6 trillion, is the nation’s most-populous state and is the equivalent of the world’s eighth-largest economy by some measures. “Certain elements of this [budget] will exacerbate future challenges, rather than minimize them, and will make it harder for California to have a healthy economy,” said Jean Ross, executive director of the nonpartisan California Budget Project. “Individuals, particularly those teachers who lose their jobs, people who depend on certain public-assistance problems, will experience a very major impact.”

Labor unions blasted the compensation cutbacks. Taxpayers associations decried new levies in one of the country’s highest-taxed states. And economists said the cuts and taxes will exacerbate the woes of a state facing rising unemployment and foreclosure rates.

So people are dissatisfied, but the government said it had to take immediate action. Sounds like the national crisis.

Why doesn’t anyone in California address the bloated state workforce and inefficient budgeting system?

Source: Business Pundit | 19 Feb 2009 | 5:14 pm

Explaining the Crisis to Gamers

Still confused by who is who on Wall Street? The cast and crew of CB Fresh have an answer, especially for those of you spent the early '90s developing carpal tunnel syndrome and poor eyesight playing video games for hours on end.

Packed with cartoon violence and toting a warning label for children, it's Wall Street Fighter 4. Watch your favorite investment banks and rating agencies throw "Sonic Bloombergs" at each other as they battle for market dominance.

(Hat tip to the blog Wall Street Fighter, which notes, "Do we have a copyright case against these dudes? Nevermind, this is the awesomest thing I've seen about Wall St. in months!")

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 5:05 pm

What About The Cramdown?

In unveiling his plan to stop foreclosures, President Barack Obama said he'd continue to "support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair market value -- as long as borrowers pay their debts under a court-ordered plan."

Bankers have a word for the idea of letting judges cut the principal homeowners owe: a cramdown. They hate it, because banks have to eat the loss -- they lend $1 million, say, but will get back only what a judge says the house is now worth.

When I asked bank lobbyist Scott Talbott about the cramdown yesterday, he noted that Congress would first have to change the bankruptcy laws to allow for it. Then he said that the political and economic climate make exactly that change all but inevitable.

Barron's has a different take: "Banks win reprieve on bankruptcy cramdowns."

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 4:55 pm

Laid Off? Cash In!

Earlier this week, budget carrier JetBlue announced that anyone who loses a job would be allowed to cancel their reservation without penalty. Based on the British carrier Flybe's "redundancy insurance," the program is schedule to run through June 1.

According to the fine print, "Full time job is defined as working at least 30 hours per week for a single employer. Freelance and/or self-employed individuals are not eligible."

I found it interesting that there was no requirement that one be unemployed for a minimum length of time or that the job loss be permanent. Each month, millions of people are laid off from their jobs; however, under normal circumstances, a slightly larger number are hired, resulting in net job creation. It appears that if you are laid off Friday and are hired Monday, you still qualify for the program. Incidentally, if you are that person, drop us a line!

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 4:40 pm

Gartman Sees Banking Improving First in Economic Recovery

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 4:33 pm

Urquhart Stewart Sees Risk Aversion Throughout Stock Market

Source: Bloomberg - All Podcasts | 19 Feb 2009 | 4:24 pm

Barack’s Semen Sells for $2,500

(Note: That image isn’t of Barack himself, but of another Simmental bull)

A funny piece from Westword’s Jared Jacang Maher:

Hopes are riding high on Barack right now, with many people counting on the Illinois resident to produce amazing results. In fact, so much is riding on Barack that his semen is selling for $2,500 a share!

A Westword operative cruising the livestock exchange at the National Western Stock Show…spotted a stack of glossy blue fliers advertising Barack. But this wasn’t presidential memorabilia; rather, it was touting a huge bull from rural Illinois. “Barack was producing flush quality semen at 11 months of age,” the flier read. “One semen share contract includes 50 units of semen in the first year.” The cost for a share of sperm: $2,500.

Barack the bull didn’t, um, come to the Stock Show himself, says Todd Line, whose Line Show Cattle is a co-signer on the animal, because he was too busy, if you know what we mean. So far, he and Barack’s co-owner, Jim Bloomberg, have sold 35 of the 50 sperm shares they’re offering.

Republican Line admits that in the ranching world, where politics typically skew as red as the meat, having a bull named after the most famous liberal in the world can make for some awkward moments around the cattle trailers. But with the new president’s inauguration, he’s been thinking a lot about the challenges faced by Obama the man.

“He’s got a mountain of work ahead of him to fix the country,” Line says. “And Barack the bull, he’s got a mountain ahead of him, too. He’s got to live up to what everyone expects of him because of who his (blue-blood) parents were.”

But the bull’s work has got to be easier than Obama’s…

Source: Business Pundit | 19 Feb 2009 | 3:47 pm

20 Animals That Have Been Cloned

With cloned steaks hitting supermarket shelves, cloning is gaining momentum as a major (ahem) cash cow. Scientists have been effectively cloning animals since the early 1960s, when a Chinese embryologist cloned an Asian carp. It’s just a matter of time until cloned humans start emerging from test tubes; meanwhile, we natural-borns are just starting to chow down on cloned meat (which the USDA does not require producers to label). Below is a rundown of 20 animals that scientists have successfully cloned:

1. Carp

(Featured above: A common carp, as-yet-uncloned)

An Asian carp was cloned successfully in 1963; ten years later, scientist Tong Dizhou also cloned a European crucian carp.

2. Dolly the Sheep

Dolly saw the light of day in 1996. She lived until the age of six. The first cloned mammal, Dolly is considered to be a great success. Later, several hundred other Dollies were cloned.

3. Cumulina the Mouse

Cloned in Hawa’ii in 2000, Cumulina was the first successful mouse clone. She lived until the ripe old age of two years and seven months, a victory for her researchers.

4. Noto and Kaga (Cows)

These cows were cloned in 1998 and duplicated several thousand times. Made in Japan, the cows pave the way for other clones engineered to produce better meat and milk.

5. Mira the Goat

Also cloned in 1998, Mira and her sisters came from a US lab as predecessors for livestock engineered to contain pharmaceutical products beneficial for humans.

6. A Family of Pigs: Millie, Alexis, Christa, Dotcom, and Carrel

Labs intend to modify pigs so that they can grow cells and organs that humans can use. Millie and her sisters (if you can call them that) were cloned in 2000 by a US-based company.

7. Ombretta the Mouflon

The successful cloning of this endangered animal (2000) exemplifies how cloning can rescue a species from the brink of extinction.

8. Tetra the Rhesus Monkey

The lab monkey world received its first clone in 2000. US-based Tetra is the first in a series of cloned monkeys that scientists could use as test subjects to learn more about diseases like diabetes.

9. Noah the Gaur

A gaur is an Asian wild ox whose numbers are dwindling. Cloned in 2001, Noah only lived for two days before dying of dysentery.

10. Rabbit

Cloned in 2001, a white rabbit like the one featured above–and its 30 clones–wasn’t given a cute name.

11. Copy Cat (CC)

This cat, cloned in 2001, was the starting gun for a pet-cloning process that may eventually become an industry.

12. Ralph the Rat

Cloned in 2002, Ralph eventually came out of the womb 15 separate times (his clones, that is). Though rats like Ralph may eventually be used in labs, cross your fingers that his ilk won’t find their way into New York sewers.

13. Idaho Gem

Mules are sterile–unless you clone them, as proven by Idaho Gem, the pride of a 2003 American research team.

14. Prometea the Horse

An Italian team produced Prometea in 2003. They hoped to produce more Italian stallions, but their attempts failed. Prometea birthed her own in 2008. Racehorses could come in the future.

15. Ditteaux the African Wildcat

Although African wildcats aren’t endangered, US scientists cloned one in 2003 as a sort of template for cloning other, more vulnerable animals.

16. Dewey the Deer

This white tail, cloned at Texas A&M University in 2003, is one of those clones lacking a solid premise. His ilk are some of the most abundant game in North America; still, scientists say clones could be used to research deer genes and produce better deer stock for hunters. As importantly, they managed to clone a deer before anyone else could do it.

17. Libby and Lilly, Ferrets

These ferrets, cloned in 2004, almost beg another “why the heck did you do that?” It turns out that ferrets are very useful for studying human respiratory diseases, and some types are endangered.

18. Buffalo

This cloned Murrah buffalo from India could eventually become a high-volume milk source.

19. Snuppy the Dog

South Korean scientists accomplished the notoriously challenging task of cloning a dog in 2005. Snuppy’s predecessors could be used to study human diseases.

20. Wolves: Snuwolf and Snuwolffy

Seoul National University (SNU) hit the canine cloning jackpot again with these two gray wolves as precursors for eventual conservation projects in 2005.

Source: Business Pundit | 19 Feb 2009 | 3:41 pm

Dismal Scientists Find Center

Harvard econ professor Greg Mankiw has a handy list of consensus items for economists. At the top: Rent control is bad, and so is protectionism.

(Thanks, Andrew Sullivan and the Next Right.)

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 3:22 pm

Oscar Gets Lean

From Sharon Stone to Ginnifer Goodwin, the 40-person table beneath the stone colonnade at the Chateau Marmont here was filled with Champagne-drinking stars.

It appeared to be business as usual for Dior Beauty, back to host its sixth annual Oscar week dinner on Tuesday night.

With the worldwide economy in turmoil, glamour lives in the run-up to Hollywood’s annual Academy Awards extravaganza on Sunday night, but brands are finding ways to save a buck: staging a cocktail party instead of a dinner, flying in fewer staffers or cutting back on or eliminating gift suites.

Some New York-based jewelers, including Kwiat, have not returned with Oscar week suites. Others, such as Verdura, are bringing select pieces for one-on-one stylist appointments. Harry Winston and Chopard, which have stores on Rodeo Drive, are simply working out of their boutiques.

Even at Dior Beauty, where Oscar week marketing has been a significant piece of the events budget, cuts have been made. The Chateau Marmont dinner was identical to last year’s, but the company will eliminate its presence at the Independent Spirit Awards talent lounge, the day before the Oscars, for the first time in five years. It also trimmed the staff that comes to Los Angeles.

“Having a presence in L.A. during Oscar week remains important for our brand image, but just like with everything else, we need to adapt and adjust,” said Dianne Vavra, Dior Beauty spokeswoman.

In terms of what to expect on the red carpet, a general consensus is forming that the emphasis on glamour will be about the same as ever.

“It’s still the Oscars,” said Elizabeth Stewart, a Hollywood stylist who works with Calista Flockhart and Kristin Davis. “It may be a little more toned down, but the few awards shows so far have generally been business as usual.”

Jennifer Lopez said the question of what looks appropriate is slightly ridiculous because nothing people wear to events is anything more than public relations for the designers.

“I don’t think there’s anything wrong with playing dress up right now,” she said. “Who wouldn’t want to wear borrowed dresses and borrowed jewelry? And anyway, I think you can get criticized if you’re wearing borrowed dresses now because it’s borrowed, and I think you can get criticized for it if it’s not because you bought it during the current economy. So I say do what makes you happy and wear what you want because the only thing that really matters is if your mother calls you up the next day and says, ‘What were you wearing?’”

Almost every major fashion house (Oscar, Donna, Ralph, Chanel, Gucci, Versace, Dior, Armani among them) is cooking up a gown in hopes that a stylist and her celebrity client will choose it. There are many approaches to the game. Some houses, such as Armani, Prada, Versace and Dior have staffers based in Beverly Hills who work year-round on VIP dressing. Others, such as Ralph Lauren and Oscar de la Renta, have sent New York-based staffers to Los Angeles to facilitate fittings in years past. Several of those brands aren’t in town this year because of New York Fashion Week. Still others, including Donna Karan, Vera Wang, Caroline Herrera and Narciso Rodriguez, work with stylists and celebrities when they are in New York.

“I’m the stylist who takes a dress right off the runway and on the plane with me back to L.A.,” said Rachel Zoe. “You do what you need to do.”

The calendar for the week seems to be as full as ever. It includes marquee events such as Variety’s pre-Oscar party and Vanity Fair’s post-Oscar blowout. The VF event went on hiatus last year because of the Writers Guild strike. It had been at the now-closed Morton’s, but this year will be at the smaller Sunset Tower hotel restaurant.

 At the Chateau Marmont, the trend is to reduce quantity, not quality. In the past, major studios have thrown 1,000-person parties, but those have been replaced by events for 300, such as Paramount’s pre-Golden Globe party last month. And financier and socialite Nicolas Berggruen downsized his Oscar week gala Wednesday night to about 600 guests from 800.

“Everything is smaller, said event planner Lara Shriftman, a guest at Berggruen’s party. “Everyone is budget-conscious, and when you are trying to save, you invite fewer people, make the party shorter and don’t serve dinner. People also don’t spend what they used to on flowers and invitations and more people are entertaining at home.”

The Oscars show, which producers hope will at least match last year’s record low viewership of 32 million, generates $130 million for the local economy (plus ancillary publicity and sales that companies worldwide get from Oscar-related placement). That is no small number in a state that is in financial crisis with a $42 billion budget deficit.

“The Academy Awards is a signature event for Los Angeles that creates jobs and has a big overall impact on our economy,” said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. While he underscored that parties may be fewer or more low key, he stressed, “They haven’t reached the point [of shuttering Oscar Week] and they never will.”

Jimmy Choo co-founder Tamara Mellon has been operating an Oscar week suite since 1999. The brand is opening the suite later than usual, but Jimmy Choo has maintained its presence not only during Oscar week but also at the Golden Globes and the British Academy of Film and Television Arts awards, as well as for the Cannes Film Festival in May. Mellon will again host an Oscar lunch on Friday for 100 people.

“The Academy Awards act as the biggest global red-carpet platform for luxury brands and has offered [us] a huge awareness opportunity,” she said.

Nadja Swarovski who heads her family company’s fashion division, is another 10-year Oscar week veteran who has partnered with Jimmy Choo in past seasons to create custom Oscar accessories.

“Nonetheless…we are sensitive to the climate,” she said.

Swarovski was the host at a cocktail party for 250 people on the rooftop of the Thompson Beverly Hills hotel Wednesday night, which was a more intimate gathering—cocktails only, no dinner—than in previous years, when she had taken over the Ace Gallery in Beverly Hills for a runway fashion presentation and 500-person-plus event.

“The Oscar season…provides an opportunity to highlight how crystal remains an affordable luxury for women in spite of the economic climate,” Swarovski said.

But simply giving things away is not as economical, so while swag suites still abound—there are no fewer than 10 offering everything from diamond facials to eyelash extensions—the booty has considerably dropped in value.

“This year, as everyone’s marketing budgets are tightening up, I suspect the gifting will be more focused on A-list actresses, and still those will be small discreet modest things,” said Sally Morrison, president of the Diamond Information Center. “If someone fabulous comes through the door they will get something, but it’s much less of anyone coming through the door and leaving with a little bag of stuff.”

The center used to have a multiday suite for stylists and press but this year is sticking with a 50-person dinner hosted by Julianne Moore as its sole marketing event.

“I’m not sure if the gifting will be missed in terms of overall marketing results,” Morrison said. “I don’t know what the return on investment is vis-à-vis a suite, but it’s not immediate and at a time when dollars are under pressure it’s a relatively easy thing to give up.”

Of course, it’s all relative.

Montblanc hopes to make a splash by launching a new initiative with longtime charity partner UNICEF on Friday night at a 250-person seated dinner on the Paramount Studios lot .

“It’s an intimate private dinner with a more modest atmosphere, not a big party or show,” said Ingrid Rooson, the company’s director of cultural affairs. “We have the feeling celebrities like to sit down to dinner surrounded by people they know.”

Related Links
Globes Downgrade--Now What Of The Oscars?
Fashion Breakfast
Morning Hemlines: Rochas, Retail, Narciso, Lululemon, LA Fashion Week, Project Runway



Source: Portfolio.com: Top 5 | 19 Feb 2009 | 1:30 pm

Why We Don't Know Nothing About Nationalization

I had a fascinating talk with a government official who will, sadly, have to go unnamed and undescribed.

I wanted to know if the rumors are true and many in government see nationalization of the banks as an inevitability; that several large banks are, basically, insolvent. If the government shuts them down, there is no other bank big enough to buy them all. So, the government has no choice but to own them.

This is, of course, a huge topic in the news. It's a massive transformation of the U.S. government's role in private markets. In short, it's the kind of thing that someone like me--a business reporter--would like to hear a loud, healthy debate about.

Not gonna happen.

The government official told me that if word leaked out in any way that the government was even considering nationalization, it could spook the stock markets so badly that all those troubled banks would, instantly, become dead banks.

Citi, Bank of America and other big banks, have shockingly low stock prices. But some people think that they are still overpriced--that those banks are insolvent and the only reason their stock has any value is because many investors believe the government will bail them out.

Nationalization would, in most scenarios, mean the stock would lose all of its value instantly.

So, rumors of nationalization will encourage people who own bank stocks to sell in a wild rush. Even though those banks stock prices are low, they're not zero. Not yet.

Even worse, any bank needs to borrow money constantly in order to survive. That's their business model: they borrow money and then lend the money out. If they can't borrow money, they are out of business. Would you lend money to a bank that you heard might be taken over by the government? Probably not.

So, if I can report on NPR that someone told me the government is considering nationalization (I'm not, by the way. Nobody has told me that), then those banks might collapse immediately and the government would have no choice. They'd have to nationalize.

This government official is the kind of person who normally, well, leaks; tells reporters interesting things off the record. This person wouldn't budge. Not an inch. I asked: so, if you were just in a meeting where you decided nationalization is, clearly, the best option, you'd tell me you had never discussed it, right? This person said: yup.

This is why so much of the big government moves happen on a Sunday afternoon. They wait until the markets in NY close on Friday, then they pounce. They spend a sleepless weekend--when global markets are closed--putting everything together and then announce it on Sunday afternoon, NY time, before Tokyo's stock market opens.

If the economists who tell us that nationalization is inevitable are right, then we'll probably see things happen just like that. We'll get breathless, hurried rumors on a Friday evening followed by a Saturday of confusing, contradictory leaks and a Sunday news conference announcing that the U.S. government now owns and operates several of the world's largest banks.

I think we all wish this crucial moment could be discussed and debated in public for as long as is needed. However annoying partisan politics can be, it does bring most of the issues out front and we get to see who stands

I don't know what the government could do. There's got to be some way of discussing this without sending the markets into chaos.

But, for now, we can know for sure that many of the most important decisions in U.S. financial history are happening right now, in secret.

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Source: NPR Blogs: Planet Money | 19 Feb 2009 | 12:28 pm