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Compound your gains, not lossesHoyt Cory doesn't know quite what hit him. The 61-year-old holistic wellness practitioner in Sonora, Calif. expected steep losses in his $890,000 retirement funds, given the market crash. But when he added up the damage at the end of last year and saw that he had only $542,000 left in his stock and bond portfolio - nearly a 40% decline - the former corporate training and development consultant couldn't believe it.Source: Business and financial news - CNNMoney.com | 1 Mar 2009 | 5:00 am Andrew Cuomo seeks order to force Merrill bonus disclosureThe attorney-general of New York went to court yesterday to force John Thain, the former Merrill Lynch chief executive, to reveal details of $3.6 billion ($2.5 billion) in bonuses paid to the investment bank$’s workers.Source: Latest Business News from Times Online | 24 Feb 2009 | 7:58 pm Citigroup shares rebound as prospect of US Government takeover recedesThe Obama Administration yesterday tried to dampen speculation that it was about to wrest control of some of America’s biggest banks, in a desperate attempt to prevent further falls in financial stocks after Friday’s rout.Source: Latest Business News from Times Online | 24 Feb 2009 | 7:28 pm Obama's rescue plans: What's on tapThe president has gotten the ball rolling on rescue plans for the economy, jobs, homes and banks. But there's a lot of work left.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:55 pm Slashing the deficit: Can it be done?President Obama has set a very public and very tough challenge for himself: To cut the annual 2013 deficit in half.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:53 pm Stock bounce after breakdownStocks rallied early Tuesday, with the Dow and S&P 500 bouncing after ending the previous session at nearly 12-year lows.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:48 pm Stocks open moderately higher after steep selloff (AP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 2:47 pm FirstEnergy Reports Falling Demand (FE, AEP)
FirstEnergy’s performance is nearly identical with that of American Electric Power Corporation (NYSE:AEP). AEP reported 2008 EPS of $3.43, and guided 2009 EPS to a range of $3.00-$3.40. FirstEnergy did not provide guidance, but falling demand for electricity, especially from industrial customers does not inspire confidence. Analysts had early 2009 EPS estimates for FirstEnergy at $4.73. Barring a significant turnaround in demand, that does not seem likely. Shares in FirstEnergy are up about 1.25% in early trading. Paul Ausick       Source: 247 Wall Street | 24 Feb 2009 | 2:45 pm Obama's first 100 days: How he's faringSource: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:44 pm Home prices in record dropHome prices declined at a record pace around the nation in the final three months of 2008, according to an industry report released Tuesday.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:41 pm Wall St. rises on bargain hunting (Reuters)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 2:41 pm Wall St. rises on bargain huntingNEW YORK (Reuters) - Stocks opened higher on Tuesday as investors scoured the market for beaten-down shares after Wall Street skidded to a 12-year low a day earlier.Source: Reuters: Business News | 24 Feb 2009 | 2:41 pm Wall St. rises on bargain hunting (Reuters)
Source: Yahoo! News: Business | 24 Feb 2009 | 2:41 pm Israel Stocks: Market lower; Israel Chemicals and Ormat in focusIsraeli stocks continue their volatile ways, dropping due to declines in major blue chips including Israel Chemicals and Teva Pharmaceutical.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:41 pm Custom Credit Systems, William James & Associates Partner to Meet Expanded NeedCompanies join forces to offer more robust system to current, new clients RICHARDSON, Texas, Feb. 24 /PRNewswire/ --Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:41 pm Economic Report: German business sentiment index slumps to record lowAn important gauge of German business confidence slips to a record low in February, indicating the euro-zone’s biggest economy is set to continue shrinking in early 2009.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:41 pm Microsoft prepared for very weak 2009Microsoft Corp. on Tuesday reiterated its prior forecast for weaker results in the rest of fiscal 2009, citing the depressed economy and dim prospects for a quick recovery.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:38 pm Stocks open moderately higher after steep selloffWall Street is up moderately higher as investors await a reading on consumer confidence and Federal Reserve Chairman Ben Bernanke's testimony on monetary policy. The market's early...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:37 pm Thomson Reuters profit beats and sees 2009 revenue growthNEW YORK (Reuters) - Thomson Reuters Corp reported a stronger-than-expected quarterly profit and said it expected revenue to grow in 2009 despite job cuts and decreased spending among financial industry customers, sending its shares up about 6 percent.Source: Reuters: Business News | 24 Feb 2009 | 2:36 pm Valley National Bank's Chairman, President & CEO, Gerald H. Lipkin, to Appear on CNBC TelevisionWAYNE, N.J., Feb. 24 /PRNewswire-FirstCall/ -- Gerald H. Lipkin, Chairman, President and CEO of Valley National Bancorp (NYSE: VLY)("Valley"), the holding company for...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:36 pm JPMorgan slashes dividendNEW YORK (Reuters) - JPMorgan Chase & Co, the second-largest U.S. bank, slashed its common stock dividend 87 percent on Monday, a surprise move by a lender considered among the strongest in the U.S. financial sector.Source: Reuters: Business News | 24 Feb 2009 | 2:34 pm JPMorgan slashes dividend (Reuters)Reuters - JPMorgan Chase & Co, the second-largest U.S. bank, slashed its common stock dividend 87 percent on Monday, a surprise move by a lender considered among the strongest in the U.S. financial sector.Source: Yahoo! News: Business | 24 Feb 2009 | 2:34 pm Stimulus: Can it feed the hungry?For Jesse Taylor, the debate over the federal stimulus plan wasn't about politicians trying to score points or economists parsing the unemployment rate.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:34 pm Goldman Sachs Disses Sporting Apparel (UA, COLM, NKE)
The “less negative” call was a Neutral rating initiation on Nike, Inc. (NYSE: NKE) with a $48.00 target. The only good news is that this is at least over $6.00 of implied upside in Nike based upon a $41.61 close Monday. Jon C. Ogg       Source: 247 Wall Street | 24 Feb 2009 | 2:33 pm Gov't looks to quell nationalization fearsThe U.S. government on Tuesday sought to quell concerns that the administration is moving toward nationalization of the country's ailing financial system, but said it would provide...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:33 pm Gov't looks to quell nationalization fears (AP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 2:33 pm Gov't looks to quell nationalization fears (AP)
Source: Yahoo! News: Business | 24 Feb 2009 | 2:33 pm Movers & Shakers: Tuesday's biggest gaining and declining stocksAmong the companies whose shares are expected to see active trade in Tuesday’s session are AIG, Basilea, Genentech, HealthSouth, Hertz, Home Depot, MAP Pharma, Medco, Nordstrom and RadioShack.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:33 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:31 pm Seven Summits Research Releases Alerts on WFC, GRMN, CF, M, and KLACCHICAGO, Feb. 24 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:31 pm Seven Summits Research Releases Alerts on INTC, X, SBUX, CHL, and RMBSCHICAGO, Feb. 24 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:31 pm U.S. home prices drop at record pace in December: S&PNEW YORK (Reuters) - Prices of U.S. single-family homes plunged 18.5 percent in December from a year earlier as the monthly pace accelerated, according to a Standard & Poor's/Case-Shiller home price index on Tuesday.Source: Reuters: Business News | 24 Feb 2009 | 2:30 pm U.S. home prices drop at record pace in December: S&P (Reuters)Reuters - Prices of U.S. single-family homes plunged 18.5 percent in December from a year earlier as the monthly pace accelerated, according to a Standard & Poor's/Case-Shiller home price index on Tuesday.Source: Yahoo! News: Business | 24 Feb 2009 | 2:30 pm Nokia cuts 1,000 jobs in new restructuringNokia, the world's leading mobile phone maker, said Tuesday it has launched new restructuring measures and plans to cut 1,000 jobs globally through voluntary departures. "As part of its...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:30 pm Allegiant Professional Business Services Inc. to Exceed $30M in Revenue for Period Ending September 30, 2008.ANAHEIM, Calif., Feb. 24 /PRNewswire-FirstCall/ -- Allegiant Professional Business Services Inc. (Pink Sheets: APRO), in response to shareholder inquires, is pleased to...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:30 pm Global 8 Environmental Technologies, Inc. Provides Update to ShareholdersCEO Javan Khazali discusses achieving key milestones in 2008 and growth strategy for 2009 NEWPORT BEACH, Calif., Feb. 24 /PRNewswire-FirstCall/ -- Global 8 ...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:30 pm Northern Trust Appoints James D. McDonald as Chief Investment StrategistCHICAGO, Feb. 24 /PRNewswire-FirstCall/ -- Northern Trust (Nasdaq: NTRS) announced today that James D. McDonald has been named Chief Investment Strategist. In this newly...Source: RSS feed - channel BNewsBusiness | 24 Feb 2009 | 2:30 pm Citi's road to nationalizationCitigroup may be on the verge of nationalization. But what exactly that means remains to be seen.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 2:27 pm Microsoft (MSFT) Ballmer Wants to Have Conversation with Yahoo! (YHOO)Microsoft (Nasdaq: MSFT) CEO Steve Ballmer is stirring up Yahoo! (Nasdaq: YHOO) speculation again, speaking at an analyst conference this morning. Some comments:       Source: 247 Wall Street | 24 Feb 2009 | 2:27 pm Futures Movers: Crude futures add more than 1% following Monday's pullbackCrude-oil futures make early gains Tuesday, playing off the likelihood of further potential OPEC production cuts.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:26 pm Indications: U.S. stock futures nudge higher before BernankeU.S. stock futures nudge higher ahead of testimony from Federal Reserve Chairman Ben Bernanke, with traders waiting to see if the Fed chairman can shake markets out of the gloom that has sent stocks to nearly 12-year lows.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:26 pm "Buffers" for banks is key issue: FDIC's BairWASHINGTON (Reuters) - As U.S. regulators prepare for a stress test of big banks, the head of the Federal Deposit Insurance Corp said on Tuesday these institutions need adequate buffers against severe economic conditions.Source: Reuters: Business News | 24 Feb 2009 | 2:25 pm "Buffers" for banks is key issue: FDIC's Bair (Reuters)Reuters - As U.S. regulators prepare for a stress test of big banks, the head of the Federal Deposit Insurance Corp said on Tuesday these institutions need adequate buffers against severe economic conditions.Source: Yahoo! News: Business | 24 Feb 2009 | 2:25 pm Housing Takes Another Awful Beating
According tothe new S&P Case-Shiller Home Price Index, The research showed home prices dropped nearly 19% in the fourth quarter, a record. In the ten largest cities in the US, the decline topped 19%. The report says that since home prices peaked in Q2 2006, they have dropped 26%. The data raise the question of whether the new mortgage assistance package being proposed by the Administration can stop falling real estate prices or whether that money would come into the market “behind the curve” of price contraction. The inventory of homes on the market may be so large that supporting people who want to stay in their homes would have very little effect on the much larger market of “for sale” and abandoned home. Certainly, the task of putting a floor under the housing prices is getting much, much harder. Douglas A. McIntrye       Source: 247 Wall Street | 24 Feb 2009 | 2:21 pm BlackRock Launching Distressed Fixed Income Fund (BLK, XFIVO)BlackRock, Inc. (NYSE: BLK) is launching a new fund that is designed to essentially be a vulture in fixed income securities. This is is technically a distressed fund being created to take advantage of the high return possibilities that have been created by the discourse and malaise of the capital and credit markets. This also has somewhat of a limited life as a trust rather than as an indefinite closed-end or open-ended fund. The fund raising period for the BlackRock Fixed Income Value Opportunities should be closing today if no changes were made under the prospectus or offering information. The fund is not open to anyone or everyone as investors are required to have at least $1.5 million in net worth. One of the reasons for this is that no liquid market will exist for the fund’s shares and the fund may not offer any liquidity before December 31, 2014. It states specifically that shareholders will not have the right to cause the Fund to redeem their common shares. The initial net asset value per share is $1,000.00 and there is also a 25 share minimum to buy in. There is a chance that certain return of capital may occur after the first two years. Beginning in 2011, the fund may choose to conduct annual tender offers for up to 25% of its common shares outstanding. But that is in the sole discretion of its board of trustees. The primary objective here is high current income, with a secondary objective of capital The trust does not currently anticipate using any leverage, but there are allownaces for leverage if deemed appropriate. It is authorized to borrow money in amounts of up to 33 1⁄3% of the value of its total assets. The total annual expense is listed as 2.00%, with 1.25% of that being management fees. There is a sales load of 2.5% for amounts up to $149,999, which then drops to 1.75% for amounts of $150,000 to $499,999, then 1% for amounts of $500,000 to $999,999, and no load for amounts of $1 million or greater. It is great to see that reputable firms are still willing to go create distressed or vulture funds. There is a belief that there will be many opportunities created from the forced selling and liquidation which will occur in the coming months and years. You just never know if the first waves of these will be all-risk or all-reward in nature. Until true market values are set this is an issue that is still open for debate. Jon C. Ogg       Source: 247 Wall Street | 24 Feb 2009 | 2:19 pm Metals Stocks: Gold falls for a second day, holds the line above $985 markThe retreat in gold futures carries into a second session, sliding modestly to trade above $985 an ounce as traders cite further profit-taking on the precious metal’s recent rally.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:17 pm Target profit falls nearly 41 percentNEW YORK (Reuters) - Target Corp said on Tuesday profit fell nearly 41 percent, worse than Wall Street expected, as consumers pared spending on its fashionable clothing and fell behind on payments for Target credit cards.Source: Reuters: Business News | 24 Feb 2009 | 2:15 pm Bmi cuts routes between Heathrow and the NorthBmi has abandoned its services from Heathrow to Durham Tees Valley and Leeds Bradford Airports.Source: Telegraph Finance | 24 Feb 2009 | 2:12 pm Home Depot results top estimatesATLANTA (Reuters) - Top home improvement retailer Home Depot Inc delivered stronger-than-expected quarterly results on Tuesday as it held down expenses, sending its shares up 3 percent in pre-market trade.Source: Reuters: Business News | 24 Feb 2009 | 2:09 pm Home Depot results top estimates (Reuters)
Source: Yahoo! News: Business | 24 Feb 2009 | 2:09 pm Vodafone announces 500 job cutsMobile phone operator Vodafone announces plans to cut about 500 jobs in the UK in an effort to reduce costs.Source: BBC News | Business | World Edition | 24 Feb 2009 | 2:01 pm Bond Report: Treasurys fall before Bernanke's remarksTreasurys were under pressure early Tuesday ahead of Federal Reserve Chairman Ben Bernanke’s testimony to Congress.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:01 pm NewsWatch: U.S. stock futures nudge higher before BernankeU.S. stock futures nudge higher ahead of testimony from Federal Reserve Chairman Ben Bernanke, with traders waiting to see if the Fed chairman can shake markets out of the gloom that has sent stocks to nearly 12-year lows.Source: MarketWatch.com - Top Stories | 24 Feb 2009 | 2:00 pm Quiz: How tax smart are you?This year you can't afford not to take every deduction available to you -- better bridge the gaps in your tax knowledge.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 1:58 pm Peter Chernin: ProfilePeter Chernin the chief operating officer at News Corp has been widely credited with the success of the media group's film and television division. Hits under Mr Chernin includes the Oscarwinning Slumdog Millionaire.Source: Telegraph Finance | 24 Feb 2009 | 1:54 pm Wall St looks for hope after sell-offWall Street stocks could struggle on Tuesday to make a strong recovery from the previous session's heavy sell-off that took the market to its lowest level since 1997, as investors braced themselves for a fresh bout of glum economic dataSource: Financial Times - US homepage | 24 Feb 2009 | 1:52 pm Home Depot sinks to a fourth quarter lossHome Depot the US home improvements retailer, said on Tuesday swung to a loss in the fourth quarter on slowing sales and a $602m charge related to exiting several businesses and cutting jobsSource: Financial Times - US homepage | 24 Feb 2009 | 1:52 pm Fame ? Fortune: Opera singer Lesley GarrettKeeping pigs in Doncaster helped opera singer Lesley Garrett learn the value of money as a child.Source: Telegraph Finance | 24 Feb 2009 | 1:36 pm The economy: Why it feels even worseIn October we looked at five key measures of the economy. Now, we look again at the CNN 'Real Feel Economic Index' and find it's tougher still.Source: Business and financial news - CNNMoney.com | 24 Feb 2009 | 1:30 pm Sterling strengthens after decline in UK retail sales slowsSterling rose against a broadly weaker dollar on Tuesday helped by a strongerthanexpected UK retail sales survey though dovish comments from a Bank of England policymaker kept it under pressure versus the euro.Source: Telegraph Finance | 24 Feb 2009 | 1:24 pm World markets down amid US banking woes (AP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 1:19 pm GMail Problems Illustrate that Google Rules the World
Were you a member of the panicked masses who could not handle today’s GMail problems? I certainly was. I spent hours obsessively refreshing the GMail site, refusing to believe that GMail–my GMail–wasn’t working. Now that GMail is back online, I’m no longer sitting in a cold sweat. See, I’m convinced that if GMail had stopped working for, say, one day, I would miss a career-altering email, or perhaps some important family news, and become obsolete. The fear is irrational, but almost inevitable when you’re so used to having something like GMail functioning properly all the time. GMail is just technology. So is Google. These are tools that we humans use. But we have a tendency to interpret them as extensions of ourselves. These silent, helpful, reliable mental partners become as automatic as breathing or blinking. And when they go down, all hell breaks loose. Last month, Google marked every webpage as spam. Being the responsive company that it is, Google soon fixed the problem. But for a short time, people were truly disoriented. Google’s malfunction led to emotional turmoil that temporarily froze people. We just don’t know what to do when our silent mental partner goes down. We’re so reliant on Google, and Google alone, that we freeze right along with it. As humans, we are independent of it and able to function without it–for short periods of time. But we’re not trained to understand that. A Google catastrophe is a world catastrophe. It follows that: a) Humans are emotionally dependent on Google When I worked at Google, there was a wonderful, satirical world domination plan sketched out on a whiteboard in one of the buildings. The idea was that Google would take over every aspect of daily life with products like Google Cola, Google gas stations, Google countries, etc. Ironically, I think that Google has managed to rule the world, just not in the way the whiteboard illustrated. GMail’s problems today prove it. Source: Business Pundit | 24 Feb 2009 | 1:16 pm Bank Nationalization Is a Truly Awful IdeaBy John Tamny, RealClearMarkets In the past week a number of boldfaced names including Sen. Lindsey Graham, Harvard economist Greg Mankiw, economist of the moment Nouriel Roubini, and ex-Fed Chairman Alan Greenspan have suggested that the surest path out of our government-driven financial crisis is for that same government to take over some of our struggling banks. This isn’t The Twilight Zone - that show was cancelled years ago - but this is the growing consensus among some of the best known economic thinkers here and around the world. On its very face, nationalization is a truly awful idea. We’re regularly told that the collapse of major banks is the major risk to our economic health, but it’s more realistic to say that the greater risk involves government control of those same institutions. Be it a bank or any kind of business, when their owners aren’t motivated by profits, and that describes the federal government perfectly, they no longer face the exacting discipline of investors who demand market returns.       Source: 247 Wall Street | 24 Feb 2009 | 1:15 pm UK businesses slash investment as fastest rate in 18 yearsThe UK's slide into recession saw businesses slash investment at the fastest rate in 18 years during the final quarter of 2008 new figures showed on Tuesday.Source: Telegraph Finance | 24 Feb 2009 | 1:14 pm Fraud search at Anglo Irish BankFraud investigators and police are searching the headquarters of Anglo Irish Bank in Dublin.Source: BBC News | Business | World Edition | 24 Feb 2009 | 1:08 pm Opening Bell: 02.24.09Thain Can Testify, Cuomo Soils Pants (Reuters) "A judge on Monday ruled that former Merrill Lynch & Co Chief Executive John Thain is free to disclose the names of individuals who received bonuses awarded by the former investment bank before it was bought by Bank of America Corp. The ruling by New York State Supreme Court Justice Bernard Fried is a victory for state Attorney General Andrew Cuomo, who filed a motion in court on Monday to compel Thain to testify about bonuses awarded to individuals other than Merrill's top five executives." William Isaac Says Bank Nationalization Isn't The Answer (WSJ) "So-called experts frequently cite the success of the Swedish experience with bank nationalization in the last decade. Nothing could be less relevant. Sweden's population, economy and banking system are roughly the size of Ohio's. Sweden's largest bank is roughly 10% the size of each of our three largest banking companies. Moreover, Sweden nationalized only Gota Bank -- and that was after it had already collapsed." UBS Fights For Names In Court (Reuters) UBS, the world's largest banker to the rich, agreed last week to pay a $780 million fine and disclose the identity of about 300 of its U.S. clients to avert criminal charges, raising hopes the troubled bank could end its U.S. legal problems." AIG May Convert Government Held Shares To Common (Bloomberg) Not that the government is one for responsible/rational. ""Paying a huge dividend on the preferred only makes you bleed slowly over time, so this would help," said Robert Haines, an analyst at CreditSights Inc. in New York. AIG is facing a "huge potential loss on its investment portfolio," which could lead to credit-rating downgrades, he said." UAW Concedes To Ford, There May Be Hope Yet (NYT) AIG Gets Bid From MetLife, Axa (Reuters) "American International Group Inc received bids from MetLife Inc and Axa SA for its American Life Insurance Co unit, Bloomberg reported on Tuesday, citing people familiar with the situation. MetLife made a preliminary offer of $11.2 billion for the life insurer, a price that may drop to about $8 billion because of a deterioration in the unit's financial condition, the people told the agency. A rival bid from Axa excludes operations in Japan, the unit's biggest market, the people told the agency." 
Source: Dealbreaker | 24 Feb 2009 | 1:04 pm Firm cuts 5,500 S Africa mining jobsPlatinum producer Lonmin is to cut up to 5,550 jobs at two mines in South Africa amid falling demand.Source: BBC News | Business | World Edition | 24 Feb 2009 | 12:59 pm Lloyds' government freebie needs strings attachedLloyds Banking Group shouldn't get something for nothing. The UK government looks set to restructure its £4bn of preference shares in the bank saving Lloyds the £480m annual cost of servicing their chunky 12pc coupon.Source: Telegraph Finance | 24 Feb 2009 | 12:56 pm Mortgage lending sinks 43% in JanuaryThe number of mortgages approved rose slightly during January but lending levels were still 43 per cent lower than in the same month a year ago, figures indicate today.Source: Latest Business News from Times Online | 24 Feb 2009 | 12:54 pm Asian stocks rattled by US fallsAsian stocks slide amid renewed fears over the global financial sector and after US stocks hit a near 12-year low.Source: BBC News | Business | World Edition | 24 Feb 2009 | 12:53 pm Hunan Valin buys A$1.2bn stake in FortescueHunan Valin Iron & Steel on Tuesday joined the swelling ranks of Chinese investors in debt-strapped Australian resources companies by agreeing to buy a 16.5 per cent stake in Fortescue Metals for A$1...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 12:49 pm German business confidence falls to record lowGerman business confidence hit an alltime low in February the closely watched Ifo indicator revealed Tuesday as leaders in the manufacturing sector reported deeper gloom in Europe's biggest economy.Source: Telegraph Finance | 24 Feb 2009 | 12:48 pm Rosneft signs up to 2014 OlympicsRussian state energy giant is named as oil partner for the 2014 Winter Olympic Games in Sochi, in a $180m deal.Source: BBC News | Business | World Edition | 24 Feb 2009 | 12:28 pm Top Pre-Market Anlyst Upgrades & Downgrades (IHG, MRVL, VAL, VSAT, MDRX, AAPL, COF, CHRW, NHY, TSON)These are some of the top pre-market analyst upgrades and downgrades we have seen on Wall Street early this Tuesday morning:
Jon C. Ogg       Source: 247 Wall Street | 24 Feb 2009 | 12:23 pm AIG in talks with U.S. government, sees $60 billion loss: sourceNEW YORK (Reuters) - American International Group, rescued twice last year by the U.S. government, is asking for more aid and bracing for a fourth-quarter loss of roughly $60 billion, a source familiar with the matter said. It would be the biggest loss in a quarter in corporate history.Source: Reuters: Business News | 24 Feb 2009 | 12:22 pm AIG in talks with U.S. government, sees $60 billion loss: source (Reuters)
Source: Yahoo! News: Business | 24 Feb 2009 | 12:22 pm Prudential cuts bonuses in £65 billion fundPrudential slashed annual bonuses in its £65 billion with-profits fund today, leaving some of its 4.5 million policyholders facing cuts of up to 10 per cent in their payouts.Source: Latest Business News from Times Online | 24 Feb 2009 | 12:21 pm NetSpend: An Option for Patient People Without Bank Accounts
NetSpend offers prepaid Visa and MasterCard debit cards. The cards are especially useful for people without bank accounts or with bad credit. Rather than being linked to a bank account, they are reloadable, meaning that customers can head to a local Safeway, Winn-Dixie, gas station, or other participating establishment to load cash onto the card. Netspend gives people the ease and convenience of a credit card without the required bank account or paperwork. Card usage is not reported to credit bureaus, so users do not build credit history by using them. Customers have also experienced longer-than-expected holds on funds and arduous identity verification procedures–byproducts of the relative anonymity involved in the card–so it does come with a potential price. Also, watch out for fees: The card costs $9.99 to purchase, and $4.95 to reload. It’s a good deal if you: a) Don’t have a bank account, or cannot get one Source: Business Pundit | 24 Feb 2009 | 12:17 pm UBS to fight U.S. bid for client names in court in JulyZURICH (Reuters) - UBS AG shares fell to a new all-time low on Tuesday after news the Swiss bank will have to wait until July to fight in court a U.S. bid to force it to disclose client names in a tax fraud probe.Source: Reuters: Business News | 24 Feb 2009 | 12:11 pm Thain can testify on Merrill bonuses, judge rulesNEW YORK (Reuters) - A judge on Monday ruled that former Merrill Lynch & Co Chief Executive John Thain is free to disclose the names of individuals who received bonuses awarded by the former investment bank before it was bought by Bank of America Corp.Source: Reuters: Business News | 24 Feb 2009 | 12:07 pm Daily Sport and Sunday Sport publisher up for saleSport Media Group owner of the Daily Sport and the Sunday Sport is in talks about selling all or part of its struggling newspaper business.Source: Telegraph Finance | 24 Feb 2009 | 12:05 pm A Call for $3,000 Gold (GLD)
We just outlined over the weekend about how and why the $1,000 per ounce today is completely different than the $1,000 gold a year ago.
Just yesterday we also highlighted how the largest gold ETF, the SPDR Gold Trust (NYSE: GLD) has also now amassed some $30 billion in assets. Lord only knows how much might be in there if gold were triple between the value of the holdings and the added inflows of capital into that. We have seen many calls for this flight to safety, but $3,000…. This guest’s call is based upon hard assets being sought at a time that paper money will be foregone for assets which preserve wealth. The key is “against what?” because that dollar and paper money are not going to be what they were. this call is either going to prove to be genius or just another nut job making end of the world predictions. Here is a link to his synopsis.       Source: 247 Wall Street | 24 Feb 2009 | 12:01 pm Markets reel as US bank rescue plan offers little comfort (AFP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 12:01 pm Royal Mail protest amid 'dirty tricks' row over leaked pension letterHundreds of postal workers are staging a protest against the Government's plans to sell-off 30 per cent of the Royal Mail, which could leave Gordon Brown facing his biggest backbench rebellion since becoming Labour leader.Source: Latest Business News from Times Online | 24 Feb 2009 | 11:59 am Lonmin finalises 5,500 mining redundanciesLonmin, the platinum miner, will let up to 5,500 workers go at its South African operations as part of a restructuring. The losses have been finalised after months of negotiations with trade unions.Source: Latest Business News from Times Online | 24 Feb 2009 | 11:52 am Expert advice for pension trusteesThere are going to be some difficult meetings for pension trustees this spring it is likely they will have to review some dreadful performance numbers.Source: Telegraph Finance | 24 Feb 2009 | 11:44 am Yen falls to 3-month low against dollarThe yen fell to a three month low against the dollar on Tuesday even as global stock market suffered a fresh sell-off, sparking renewed speculation that the Japanese currency's days as a safe haven currency were numbered.Source: Financial Times - US homepage | 24 Feb 2009 | 11:44 am World markets fall after Wall Street tumbleHONG KONG -- Asian stock markets tumbled Tuesday, with Hong Kong and South Korea down around 3 percent, after relentless fears about the financial system and world economy drove Wall Street to its worst...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 11:42 am CellPhones.org Announces Blogger Appreciation Contest
How would you like to use your cell phone as much as you want, for free, all year? You can, if CellPhones.org chooses you as its winning blogger. Here are the details on the contest: Cell Phones .org thinks that bloggers don’t get enough appreciation and for that reason they are running a Blogger Appreciation Contest. The contest will reward the three winners with some really cool prizes: First Prize: a full year’s worth of your cell phone bill (up to $1000) Nominations for the contest will be accepted until February 28th 2009. Blogs that have been nominated will then ask their readers to show their appreciation by voting for them over the next few weeks. Voting will be held from March 1st until March 17th. Each visitor can vote once per day during the voting period. To nominate your blog or any other blog, go to the Cell Phones.org nomination page. Source: Business Pundit | 24 Feb 2009 | 11:37 am European industrial output slumpsEuropean industrial orders fell sharply in December, figures show, as factories report a steep drop in demand.Source: BBC News | Business | World Edition | 24 Feb 2009 | 11:29 am Housing Catches Up With Home Depot (HD)
Home Depot reported a fiscal 2008 fourth quarter consolidated net loss of $54 million, or $0.03 per share, compared with net earnings of $671 million, or $0.40 per share. Sales fell 13.7 percent to $14.6 billion from the fourth quarter of fiscal 2007. Last year had one less week so all of the weakness was not in sales per day. Same-store sales were off over 9%. To make matter worse, Home Depot expects sales to be down another 9% this year. The news shows how the retail industry’s problem has moved from the streets and malls into operations which allow people to improve their homes which they may not be able to sell for years. Since their house is the largest asset that most Americans have, the fact that they would let it go to pot is extraordinary. It is an excellent indication of how broke people really are. Douglas A. McIntyre Tagged: HD      Source: 247 Wall Street | 24 Feb 2009 | 11:28 am What trustees can do to strengthen the pension fundTrustees of final salary pension schemes are being urged to flex their muscles to protect members' benefits from the economic downturn.Source: Telegraph Finance | 24 Feb 2009 | 11:27 am UK retail sales 'decline further'Retail sales have fallen again this month, but the rate of decline has slowed, according to the latest figures from the CBI business organisation.Source: BBC News | Business | World Edition | 24 Feb 2009 | 11:27 am 3i reveals first investment under new chief3i's $1.2bn Indian infrastructure fund on Tuesday revealed a $161m investment in a deep water port on India's east coast, the first deal by the UK private equity group since Michael Queen took over as...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 11:24 am Vodafone culls 500 in £1billion cost-cuttingVodafone is to axe 500 UK jobs as part of efforts to slash costs by £1 billion as it grapples with the recession.Source: Latest Business News from Times Online | 24 Feb 2009 | 11:21 am Dumping Dead Beats–American Express (AXP) Buys Out Members
Amex prides itself on its members. It runs ads about the famous ones and talks about all the things that they can do with their cards. Being a member, however, is not what it used to be. The company is buying out some card holders for $300. That does not seem like much for the members, some of whom has been loyal customers for years. According to the AP, “We sent the offer out to a select number of card members,” said Molly Faust, a company spokeswoman. “We are looking at different ways that we can manage credit risk based on the costumers overall credit profile.” Between the lines, that means that customers who are not likely to pay their balances are being dumped. That means more people in the economy without access to credit, which means less consumer spending. No one expects Amex to put patriotism above profit, but as banks and credit card companies cut loose a large portion of their customer bases, the time it will take for the economy to recover will be stretched further into the future. Douglas A. McIntyre Tagged: AXP      Source: 247 Wall Street | 24 Feb 2009 | 11:18 am Mortgage approvals up in JanuaryThe number of mortgage approvals across the UK rose slightly in January, says the British Bankers' Association.Source: BBC News | Business | World Edition | 24 Feb 2009 | 11:17 am Wall Street plunges to 1997 levels (AFP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 11:02 am AIG seeks more aid on $60 billion loss fears$AIG, the insurance giant that has been twice rescued by the US Government, is looking for fresh state funding as it prepares to post one of the biggest losses in corporate history.Source: Latest Business News from Times Online | 24 Feb 2009 | 10:51 am Defensive stocks help limit London's lossesThe FTSE 100's initial resilience in the face of a major sell-off overnight on indices faded as the session developed on Tuesday. But defensive stocks continued to fare well, helping limit the overall...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 10:46 am Murdoch at Fox helm as boss quitsThe Fox movie and broadcast firm will report directly to Rupert Murdoch when its chief executive leaves this summer.Source: BBC News | Business | World Edition | 24 Feb 2009 | 10:44 am Rate-setter makes case for 'printing money'A member of the Bank of England’s monetary policy committee today made the case for quantitative easing, the controversial measure to boost the economy by "printing money" to increase the money supply.Source: Latest Business News from Times Online | 24 Feb 2009 | 10:38 am IHOP Free Pancake Day 2009: Free to Those Who Hate Children
It’s IHOP Pancake Day 2009, and what better way to celebrate free food than to feel guilty if you don’t pay for it? ABC has details on the event: It’s National Pancake Day and to celebrate, free pancakes will be handed out all over the (nation) today… as local IHOPs join with that chain’s restaurants across the country to help the Children’s Miracle Network. National Pancake Day dates back several centuries to when the English prepped for fasting during Lent. Strict rules prohibited the eating of all dairy products during Lent, so pancakes were made to use up the supply of eggs, milk, butter and other dairy products…hence the name Pancake Tuesday. Since beginning its National Pancake Day celebration in 2006, IHOP has raised nearly two million dollars to support charities in the communities in which it operates. With your help, we hope to raise $1,000,000 for Children’s Miracle Network in 2009! IHOP will serve one free short stack per customer, then ask for a donation for the Children’s Miracle Network. In other words, if you take the free pancakes and don’t donate, you’re a soulless freeloader. If you do donate, the pancakes aren’t free. But hey, it’s for a good cause, so get out there! Source: Business Pundit | 24 Feb 2009 | 10:25 am Khodorkovsky moved to Moscow jailRussian ex-tycoon Mikhail Khodorkovsky is transferred to Moscow from his Siberian prison to face trial on new charges.Source: BBC News | Business | World Edition | 24 Feb 2009 | 10:24 am Insurers and banks under pressure in EuropeEuropean shares fell for the seventh consecutive session on Tuesday as the continent's bourses tracked overnight losses on Wall Street and in Asia, and worries over banks and insurers showed no sign of...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 10:10 am FTSE 100 fall at the start of trade (AFP)
Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 8:52 am Akzo Nobel takes 1.2bn charge on ICIAMSTERDAM, Feb 24 - Dutch chemical group Akzo Nobel reported a full-year loss of 1.1bn ($1.4bn), hit by a non-cash impairment on its acquisition of ICI and warned of a very challenging year.Akzo Nobel...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 8:39 am Japan considers share market supportKaoru Yosano, finance minister, said the government was studying measures to support the share market, as tumbling share prices threatened to erode further Japanese banks' capital and damage their ability to lendSource: Financial Times - US homepage | 24 Feb 2009 | 8:38 am Japan considers share market supportThe Japanese government is considering ways to prop up the ailing stock market, as tumbling share prices threaten to erode further Japanese banks' capital and damage their ability to lend to cash-strapped...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 8:38 am ICI drags Akzo to first loss in eight yearsAkzo Nobel, the Dutch chemicals giant, was dragged to a €1.1 billion (£960 million) loss this year after taking a €1.2 billion writedown on ICI, the British paint group it acquired last year.Source: Latest Business News from Times Online | 24 Feb 2009 | 8:36 am Peter Chernin to leave Rupert Murdoch's News Corp.As president and chief operating officer, Chernin has headed the Fox movie and TV operations and been a key link to Wall Street and Hollywood. Murdoch plans to take over day-to-day operations. ...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 8:00 am Nordstrom profit drops 68% but beats forecastsShares rise after hours on the report, in which the department-store chain also forecasts a profit for the full year. ...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 8:00 am Ford reaches deal with UAW on retiree healthcareThe pact will allow the automaker, which owes billions of dollars to a healthcare trust, to make as much as half its payments in equity rather than cash. ...Source: RSS feed - channel BNPaperBusiness | 24 Feb 2009 | 8:00 am Aust dollar closes flatThe Australian dollar has closed little change, despite advancing almost one US cent during afternoon trade on continuing US dollar weakness. At 1700 AEDT, the Australian dollar was trading at US$0.6476/79, down marginally from...Source: New Zealand Herald - Business | 24 Feb 2009 | 7:51 am Central Europe acts to bolster currenciesCentral Europe's battered currencies rallied after four of the region's central banks issued statements raising the possibility of intervention on foreign exchange marketsSource: Financial Times - US homepage | 24 Feb 2009 | 7:21 am World markets swoon as U.S. slumps to bank aid (Reuters)Reuters - The United States vowed to prop up ailing banks if needed, but worries that yet more cash injections would fail to staunch the global economic crisis weighed on stock markets around the world on Tuesday.Source: Yahoo! News: Stock Markets News | 24 Feb 2009 | 7:20 am Aust stocks close weaker after Wall St fallsSYDNEY - The Australian share market closed weaker, dragged lower by the big miners and most of the major banks, after Wall Street fell to its lowest levels in 12 years. At the 1615 AEDT close, the benchmark S&P/ASX200 index was...Source: New Zealand Herald - Business | 24 Feb 2009 | 7:01 am Market closes at five-year lowThe New Zealand sharemarket slid further today, showing no sign of wanting to rise from its five year low. The benchmark NZSX-50 was down 50.758 points, or 2 per cent, from 2538.286 to 2487.528 at the close of trading today. There...Source: New Zealand Herald - Business | 24 Feb 2009 | 6:27 am NZ dollar struggles to US51c markThe New Zealand dollar limped back up to US51c today, struggling against weak equity markets and little local information. At 5pm today it was worth US51.01c, down on US51.25c at the same time yesterday. During today it reached...Source: New Zealand Herald - Business | 24 Feb 2009 | 5:38 am N Korea says 'satellite' launch imminentNorth Korea says it is planning to fire a satellite into space, heightening regional fears that an inflammatory long-range missile test could be imminentSource: Financial Times - US homepage | 24 Feb 2009 | 5:29 am ASB announces billion dollar jobs fundASB says it is setting up a new NZ$1 billion loan fund for New Zealand businesses to borrow at below market rates if they can show the loans will create employment, or prevent people losing their jobs. The opening interest rate...Source: New Zealand Herald - Business | 24 Feb 2009 | 4:00 am Powerco sale on hold, Babcock Infrastructure shares in trading haltThe sale of a half-stake in New Zealand electricity and gas distributor, Powerco has been put on hold. Powerco is second largest electricity and gas distribution business with more than 400,000 customers across 39,000sq km in the...Source: New Zealand Herald - Business | 24 Feb 2009 | 3:45 am We're overstaffed, say a third of NZ businessesA third of New Zealand businesses surveyed by Business New Zealand say they have more staff than they need and are planning redundancies and reducing working hours in the face of a worsening economy. The business lobby group surveyed...Source: New Zealand Herald - Business | 24 Feb 2009 | 3:30 am House to take up housing bill on Thursday (Reuters)Reuters - The U.S. House of Representatives is expected to vote on a bill on Thursday that would let bankruptcy judges rewrite home loans and shield mortgage servicers who modify loans from bondholder lawsuits.Source: Yahoo! News: Business | 24 Feb 2009 | 3:11 am NZ Shares: Market falls to new five-year lowThe New Zealand sharemarket tumbled to a new five-year low in early trading this morning, following further big falls on equity markets in the United States. Major indexes in the US overnight fell to 12-year lows, with tech stocks...Source: New Zealand Herald - Business | 24 Feb 2009 | 3:00 am Swiss banks feeling the pinch tooIn finance circles, it became a cliché - if you wanted to put money where it would be most secure, that location was "a Swiss bank account". Nowadays, however, even a Swiss bank doesn't have the magic allure and air of invincibility...Source: New Zealand Herald - Business | 24 Feb 2009 | 2:30 am Change at the helm of News CorpLOS ANGELES - The president and chief operating officer of News Corp will step down when his contract expires in June, the company said today. Peter Chernin's departure probably clears the eventual path for a member of the Murdoch...Source: New Zealand Herald - Business | 24 Feb 2009 | 2:30 am Murdoch to take control at FoxPeter Chernin is leaving News Corp after failing to agree a new contract with Rupert Murdoch, who will step in and take direct control of the Fox studio and broadcast businesses that his right-hand man has run for 12 yearsSource: Financial Times - US homepage | 24 Feb 2009 | 2:23 am Thain ordered to disclose Merrill bonus detailsNY attorney general files motion to compel former chief to testify about specific payouts to employees last yearSource: Financial Times - US homepage | 24 Feb 2009 | 2:18 am Housing bill to shield firms modifying loans (Reuters)Reuters - U.S. bankruptcy judges would get power to modify home loans and mortgages services who alter loans would win protection from bondholder lawsuits under a bill to be considered by U.S. lawmakers later this week, sponsors of the legislation said on Monday.Source: Yahoo! News: Business | 24 Feb 2009 | 1:21 am JPMorgan cuts dividend by 87%JPMorgan Chase surprised investors by slashing its quarterly dividend by 87% to preserve capital, saying that 'extraordinary times call for extraordinary measures'Source: Financial Times - US homepage | 24 Feb 2009 | 1:20 am Trends & Innovations - MondayResearchers gain by giving freelySource: Investor's Business Daily: BUSINESS | 24 Feb 2009 | 12:29 am In Brief - MondayCareer Education (CECO), a for-profit educator that posted strong Q4 earnings last week, rose 5% to 24.80 after BMO Capital Markets and Robert W....Source: Investor's Business Daily: BUSINESS | 24 Feb 2009 | 12:29 am Business Briefs - MondayCV Therapeutics remains in play. Astellas Pharma, Japan's No. 2 drugmaker, said it would continue to pursue Calif. biotech firm CV Therapeutics...Source: Investor's Business Daily: BUSINESS | 24 Feb 2009 | 12:29 am Cost Cutting Proves Prescient For This Maker Of Medical ProductsMillipore sees the economy through its own filters. That's its business -- filters.Source: Investor's Business Daily: BUSINESS | 24 Feb 2009 | 12:29 am After The Close - MondayGENENTECH (DNA) said a special panel recommended that investors reject Roche's $42 bil, 86.50-a-share, bid to acquire the 44% of the biotech it...Source: Investor's Business Daily: BUSINESS | 24 Feb 2009 | 12:29 am AIG in talks with Fed over another bail-outAIG is in talks with the US government over a new bail-out aimed at giving the stricken insurer, which is already 80 per cent owned by the authorities, fresh capital to absorb an expected fourth-quarter loss and more time to sell assetsSource: Financial Times - US homepage | 24 Feb 2009 | 12:28 am How the Dow Jones industrials fared Monday (AP)
Source: Yahoo! News: Stock Markets News | 23 Feb 2009 | 11:21 pm Write-Offs: 02.23.09$$$ Microsoft overpaid severance, wants money back [The Deal] $$$ Madoff: The Monster Mensch [NYM] $$$ Zachary Michaelson to Teach Portfolio Management Course as Part of New York University's Credit Crisis Offerings [PRN] $$$ AmEx Offers Some Holders $300 To Pay And Leave [DJ] $$$ J.P. Morgan Cuts Dividend 87% [WSJ]
Source: Dealbreaker | 23 Feb 2009 | 10:17 pm Presented By:Source: Dealbreaker | 23 Feb 2009 | 9:51 pm Uncommon Interest In CommonYes, yes, we know that the excuse to start pushing for common stock with voting rights is that Tangible Common Equity is the standard for bank health that everyone is raving about- as if the voting rights were just an afterthought- but we told you before what this would mean when it came right down to it: In an unexpectedly assertive joint statement, the Treasury Department, Federal Reserve and federal bank regulatory agencies announced that the government might end up demanding a direct ownership stake in major banks after they undergo a tough evaluation of their strength, which is to begin shortly. You can't get a little bit pregnant, people. Best you can do is to offer to go halfzies on an abortion. Plus, if you don't seem to care about preferred anymore, its likely at least partly because you have given up any attempt to claim that taxpayers are ever going to see a dime of the money back. In Latest Plan for Banks, U.S. Could Demand Voting Stake [The New York Times]
Source: Dealbreaker | 23 Feb 2009 | 9:51 pm Hear: Sink Or SwimOn today's Planet Money: -- Citigroup spent the weekend in talks with the U.S. government over a plan to convert the taxpayers' holdings from preferred to common stock. Rolf Winkler of Option Armageddon walks guest host Uri Berliner through what that means. -- Eastern Europe owes banks in Western Europe something like $1.5 trillion. As economies stumble in the former Soviet bloc, those banks have gotten distinctly nervous. Janos Samu of Concorde Securities gives a brief history of Europe's own subprime crisis. -- Caroline Raye serves as president of Glen Springs Elementary School in Gainesville, Fla. This year, as supplies ran low, her role including funding a request for classroom paper. Bonus: After the jump, an Oscars indicator. David Sweeney writes: Planet money indicator: 1 As in, number of best picture winners movies made without Kodak film. "Best picture winner is first since 1928 not to be shot on Kodak film." Rochester, NY, has been shrinking right along with Kodak over the years, with people lining up to watch spectacular implosions of film processing facilities in the city. This may be another interesting sign of the times. Download the podcast; or subscribe. Intro music: Gogol Bordello's "Baro Foro." Find us: Twitter/ Facebook/ Flickr » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 23 Feb 2009 | 9:39 pm Cooler Banks In CanadaMark in Toronto wonders: How is it that while all aspects of the recession are being mirrored across the border in Canada our banks are feeling none of the pain as yours. My vague understanding is that it had something to do with an unpopular (at the time) decision by former PM Chretien. Former Prime Minister Jean Chretien would probably like us to see brilliant foresight in his 1998 decision to block two banking mega-mergers at the same time that the U.S. Congress decided to allow investment and commercial banks to merge. The American deal paved the way for such now-troubled giants as JP Morgan Chase and Citigroup. Last year, all five major Canadian banks took hits. They had to recalculate the worth of their assets, but the writedowns were on the order of hundreds of millions, rather than tens of billions of dollars. Though considerable, those millions weren't enough to spark significant questions about the Candian banks' solvency. A Canadian banker I know told me the two main reasons for their fiscal soundness have to do with a more conservative banking environment and a bit of luck. First, it's much harder for Canadian consumers to get a risky home loan than Americans. They pay heavy fees for adjusting a mortgage, which has generally prevented them from seeking out terms that they might not be able to keep. Most importantly, in Canada, all mortgages have "full recourse," meaning that people who walk away from their homes still have to pay the loans. As a result, banks there have not been stuck with as much wreckage of developers' get-rich-quick schemes. Second, the Canadian banks are generally more cautious about new types of financial products. They sat on the sidelines as American banks snapped up adjustable-rate mortgages, mortgage-backed securities and other "exotics" throughout the boom years. They got involved in subprime mortgages relatively late in the game, and were lucky that the housing bubble burst when it did. If real estate values had kept climbing, and they'd have kept buying, they would eventually have found serious trouble. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 23 Feb 2009 | 9:05 pm Logan Sees Transition to Higher Savings Rate, Lower SpendingSource: Bloomberg - All Podcasts | 23 Feb 2009 | 9:02 pm Nationalization Cluster**** In 4... 3... 2...It literally was only a matter of time, and it really makes no difference how "temporarily" businesses are absolutely-definitely-totally-not-really nationalized. Patronage politics will show their ugly face and give us the insanity of a government tempted to dumb down a business it had to take over because of poor performance. Citi isn't even technically nationalized yet and already, it's starting. Latest nonsense follows: Citigroup's rivals are lobbying the government to shackle its investment banking business and international operations if the authorities nationalise or take a large stake in the troubled financial group. Apparently, the slippery slope is covered in melted butter runoff from all the popcorn being consumed on the sidelines. Rivals want curb on nationalised Citi [The Financial Times]
Source: Dealbreaker | 23 Feb 2009 | 8:57 pm Madoff WinnersThey're few and far between (pawn shops, anti-Semites, Gary Busey...so much you don't know) but the number of people making bank as a result of the greatest Ponz of all time is growing by the day. Like the guy who took this photo of Bernie-boy back in the day, when he was a mostly anonymous rich prick. Now that he's an infamous poor schmuck, the photog, Jonathan Saunders, has found his work in high-demand. And that got us thinking-- we should try and make some cash-money off the pic we recently came across when cleaning out a former co-worker's desk. So we're pimping it out to the highest bidder, after the jump. Next, the Ruth y Fish files.
Source: Dealbreaker | 23 Feb 2009 | 8:15 pm Forced Nakedness And Sexual Humiliation Is Next
Merrill Lynch's former chief executive, John A. Thain, was questioned by the New York State Attorney General Office last week. In a six-hour session [complete with stress positions, extended standing, cultural humiliation (for example, exposure to retail banking executives, state employees), exploitation of phobias (for example, the use of dogs, poor people, coach class seating)]* Mr. Thain answered wide-ranging questions about the bonuses he paid Merrill employees and about his interactions with officials at Bank of America, which acquired Merrill at the end of the year. What did the Thain dish? Take a look after the jump. * Dramatization. May not have actually happened.
Source: Dealbreaker | 23 Feb 2009 | 7:47 pm Just One More Hit, That's All We Need...You Know We're Good For It[voice, body shaking] "We're really gonna to make it work this time, promise...Seriously, really, from one Joe to a Bro." AIG Is In Talks With Government To Secure Additional Funds to Keep Operating [CNBC]
Source: Dealbreaker | 23 Feb 2009 | 7:42 pm Meyer Says U.S. House Prices Will Fall FurtherSource: Bloomberg - All Podcasts | 23 Feb 2009 | 7:16 pm Bloomberg's Friedman Sees DeFacto Nationalization of U.S. BanksSource: Bloomberg - All Podcasts | 23 Feb 2009 | 7:02 pm 'A Voting Stake'"In Latest Plan for Banks, U.S. Could Demand a Voting Stake," reports the New York Times. Key quote: The Obama administration put the nation's biggest banks on notice Monday that the government could become their biggest shareholder if regulators decide they are not strong enough to weather a deeper-than-expected downturn in the economy. In an unexpectedly assertive joint statement, the Treasury Department, Federal Reserve and federal bank regulatory agencies announced that the government might end up demanding a direct ownership stake in major banks after they undergo a tough evaluation of their strength, which is to begin shortly. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 23 Feb 2009 | 6:57 pm Trone Says Investors `Fearful' of U.S. Bank NationalizationSource: Bloomberg - All Podcasts | 23 Feb 2009 | 6:39 pm Lavorgna Says U.S. Bank Nationalization May Be UnavoidableSource: Bloomberg - All Podcasts | 23 Feb 2009 | 6:36 pm Yeah, So That Car Czar Slot You Were Hoping For? Not So Much.You had to know that appointing a "Car Czar" with the kind of powers that might actually get something done when it came to Big Auto was just never going to happen. There is, after all, only one Lord of the Bailout, and he does not share power (unless it is via a gridlocked committee of varied interests and affiliations to make sure every view is represented and no major initiative ever sees the light of day). Yeah, ok, but you have to give Steven Rattner an "advisory position" after you taunted him with a Czar slot. I mean you can't take away his favorable taxation setup at Quadrangle Group and deny him the promised Car Czar slot. Sheesh. Rattner Is Said to Join Treasury as Adviser on Autos [Bloomberg]
Source: Dealbreaker | 23 Feb 2009 | 6:33 pm Laffer Says `So Be It' If Citigroup Goes Out of BusinessSource: Bloomberg - All Podcasts | 23 Feb 2009 | 6:26 pm How the banks' stress tests will workThe Treasury Department will submit the nation's largest banks to stress tests before they receive more aid as part of its rescue program. But how exactly will these tests work? John Dimsdale explains.Source: Marketplace | 23 Feb 2009 | 6:19 pm Bank's cheesy solution to hedge lossesA bank in northern Italy is surviving the downturn by relying on an unusual tradition. It's stockpiling Parmesan cheese from local producers to hedge against losses. Megan Williams reports.Source: Marketplace | 23 Feb 2009 | 6:19 pm Give banks vouchers so we get bucksPresident Obama says taxpayer bucks that will go to the banks must be passed on to businesses or individuals for credit. Commentator Benjamin Barber offers one solution to ensure that we really do see the money: vouchers.Source: Marketplace | 23 Feb 2009 | 6:17 pm Suburb holds on to history in downturnThe Temecula Valley is a developing suburb in Southern California, but it's also rich with history. Steven Cuevas reports on how the area is trying to preserve its ties to the past while facing an uncertain economic future.Source: Marketplace | 23 Feb 2009 | 6:17 pm Who consumer protection plans benefitFirst Hyundai let laid-off consumers give their cars back within a year of purchase. Now Toll Brothers will cover six months of mortgage payments for homeowners who lose their jobs. Who really benefits from these plans? Mitchell Hartman reports.Source: Marketplace | 23 Feb 2009 | 6:17 pm Is a bank takeover 'nationalization'?The U.S. government's possible takeover of troubled banks has prompted concerns about nationalization. Bob Moon talks with analyst Josh Rosner, managing director at financial research firm Graham Fisher, about what nationalization really means.Source: Marketplace | 23 Feb 2009 | 6:17 pm Citigroup seeks more government helpCitigroup has already received $45 billion in government aid, but the struggling banking giant is seeking more money. Ashley Milne-Tyte reports on why the bank needs more help and what form it might take.Source: Marketplace | 23 Feb 2009 | 6:17 pm Layoffs Watch '09: BAC WestThe BAS Commercial paper group in San Francisco was apparently, in large part, axed this morning. According to one of the victim's of the population restructuring, "no bonuses, despite being profitable."
Source: Dealbreaker | 23 Feb 2009 | 6:16 pm Professor: Enrollment's UpI've been thinking about starting a category just for sunny news -- because occasionally, there is some. Today, Simon Johnson of Baseline Scenario suggested the name "Green Shoots." And now, economics professor Joe Cavanaugh of Wright State University in Celina, Ohio, has sent the first entry: You always bring up the bad news but here is a some good news brought on by the recession -- kind of. 15.86 is the percentage change in enrollment at our campus this past year. The enrollment in higher education runs countercyclical so, as has happened in past recessions, the lower GDP the higher our enrollment. For example during the recession in 2001, when GDP was only .8%, our enrollment was up by 12.41%. There are a number of reasons for this including students being retrained following layoffs, closings, and forced early retirements. The biggest reason is probably that not as many well paying jobs are available for recent high school graduates. Staying in school is something that will increase their potential to land a better paying job once the economy improves. Unfortunately, the opposite effect also often takes place. When GDP was up over 3.5% in 2004 our enrollment was -11.14%. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 23 Feb 2009 | 5:18 pm Is it time to overhaul the Dow index? (Reuters)Reuters - There was a time when a tumble below $10 in the share price of a company in the Dow Jones industrial average (.DJI) meant ignominy.Source: Yahoo! News: Stock Markets News | 23 Feb 2009 | 5:03 pm Dan Smith Sees Gold at $1,100 an Ounce Next YearSource: Bloomberg - All Podcasts | 23 Feb 2009 | 5:00 pm Ostwald Sees Aggregator Bank as Solution to CrisisSource: Bloomberg - All Podcasts | 23 Feb 2009 | 4:44 pm Cantor's Pope Says Nationalizing Banks `Lesser of Two Evils'Source: Bloomberg - All Podcasts | 23 Feb 2009 | 4:34 pm After The Bailout, Floats
Barbara Baldwin added this picture from Mardi Gras to our Flickr pool. She writes: The Krewe d'Etat throws a satirical parade - the theme of the parade this year was "The Dictator goes to Broadway", but the economy was a big part of the parade. The title of this float was "Brother Can you Spare a Trillion?" Here's a close up of the top of the float - the fat cats are parachuting, and there's 70 trillion flowing out of a bucket. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 23 Feb 2009 | 4:13 pm How to Put Together a $305,000 Mardi Gras OutfitMardi Gras doesn’t have to be all about Made in China plastic beads and $3 masks. We tasked ourselves with finding the most expensive Mardi Gras costume in the world, and found out that with some effort, discerning shoppers can put together a Mardi Gras getup–complete with Hurricane–for the same amount of money as a decent-sized house. Here’s a step-by-step guide to crafting a ridiculous Mardi Gras outfit that will cost in excess of $305,000: 1. Buy the duds If you’re a man, start with the men’s costume below. Made you a plush velvet jacket, knickers, hat, gloves, and a hefty dose of Mardi Gras spirit for…well, at $729.00, you could be paying more for it, theoretically.
Ladies, try the super-expensive women’s renaissance dress featured below. Women wore dresses just like these to medieval courts. Now you wear this elaborate period piece for a night of Mardi Gras debauchery for pocket change (if you happen to be a millionaire). Cost: $749.95
Make sure you stay warm. The period hooded cape below, which Natalie Portman wore when when she played Anne Boleyn, will protect you from the elements for $4,880.00:
2. Accessorize to the hilt You wouldn’t want to be caught dead without the right Mardi Gras accessories. For one, you’re not showing true high-roller Mardi Gras spirit until you flaunt the Fleur de Lis in as many places as possible. Here are the necessary adornments for women and men: Men: Onyx and Diamond Fleur de Lis cufflinks: $2,750
Women: 14K Fleur de Lis Diamond Earrings: $1,375
14K Gold and Diamond Pendant: $3,250
Don’t forget to adorn your hair and face. The feather headdress below costs $230. The mask below that retails at $495.
Have you noticed that one thing is still missing? You got it, it’s the alcohol. Although it may be traditional to pour a Hurricane into a highball glass (like these $120 Vera Wang glasses http://www.bestcrystal.com/products/detail/index.cfm?Product=958), they don’t exactly make a statement, do they? Better to accessorize with this Florentine champagne glass, which, might we add, fits all kinds of beverages. And hey, it’s only $2,950.
Next: The finest rum and gin, for an unforgettable Hurricane. That’ll be $250,000, please. Here’s how: Rum: Wray and Nephew–$50,000
This rare Jamaican rum was bottled in the 1940s using traditional methods that have since become obsolete. It is estimated that only four unopened bottles of it exist worldwide. Now that’s something you can indulge in. Gin: Bombay Sapphire in a jeweled bottle–$200,000
Designer Karim Rashid collaborated with Bombay Sapphire gin to create this $200,000 bottle of gin. Sapphires decorate the stopper on this stylized bottle, which contains—what else—Bombay Sapphire. In order to make the perfect Hurricane, you need the perfect vessel of gin. Diamond cocktail shaker to blend the Hurricane: $45,000
Amsterdam’s Coster Diamonds created this 35,000 euro (approx. $45,000) cocktail shaker made of silver, 18 karat gold, and 480 19-karat diamonds. Hope your mixing skills measure up. Now you’re ready to book those exclusive parties… Source: Business Pundit | 23 Feb 2009 | 3:39 pm Retiree Builds Submarines in his Spare Time
Ananova reports on a retired Chinese man whom the government has allowed to build amateur submarines: The retired shoe maker spends all his free time inventing things: “I like challenges, especially those which seem impossible,” he said. Li’s first four submarines were not fully seaworthy and the fifth one he built was the first to notch up a successful voyage. His latest creation is an unmanned submarine which is just one metre long but which can dive to a depth of 30 metres. Experts say Li?s spirit is commendable, but his submarines are not entirely practical. “Most of his constructions are based on imagination and the final products are quite rough,” one told IC Media. Source: Business Pundit | 23 Feb 2009 | 3:31 pm Bucyrus Int. Rated `Overweight' by BarclaysSource: Bloomberg - All Podcasts | 23 Feb 2009 | 3:21 pm Responsible Renters
Belmont Avenue in Chicago Seth Elliot Meyer After Friday's podcast on President Obama's foreclosure plan: Bill Payne writes: One of the things I would like Planet Money to address at some point are those who saw this whole mess coming and stayed away from buying a house period. Again and again there is discussion about angry responsible homeowners, but what about angry responsible renters. I have lived in Chicago for 10 years and watched the city flattened and rebuilt lot by lot at an amazing pace. I knew many who bought condo after condo sight unseen because of the collective fear we would never be able to afford a home and somehow falling for all the new paradigm nonsense that the financial media trumpeted. I have rented year after year which has made me a pariah until about a year ago when those who kept lecturing me about not building up equity, in fact I had pointed discussions with many of them 4-5 years ago. I also had to comfort my better half a number of times as to why we were not jumping on the bandwagon and she got to feel the sting of not conforming with her girlfriends. The thing that really angers me about this ponzi scheme is the fact that those in control had to see it coming, I am not that smart. Now I get to bail homeowners out, "responsible" and not. I consider no one who bought not seeing this irresponsible. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 23 Feb 2009 | 3:19 pm
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FirstEnergy Corporation (NYSE:FE) reported 2008 fully diluted EPS of $4.38, higher than anticipated EPS of $4.33. Revenue for the year also beat expectations, coming in at $14.6 billion compared with average estimates of $14.51 billion. What may be more interesting than the earnings is the trends in usage.
If you thought things were tough in the economy for retailers and apparel manufacturers, it looks like Goldman Sachs thinks they are going to get worse. The trend seen in these calls is just outright negative, or cautious at best. Under Armour, Inc. (NYSE: UA), Columbia Sportswear Company (NASDAQ: COLM), and Nike, Inc. (NYSE: NKE) were all part of the call.
Housing prices continue to cascade.
A guest on CNBC this morning predicted that Gold was ready to go through the roof. The 20 to 25 year unwinding of the credit boom has led Hans Goetti, Chief Investment Officer of LGT Bank in Liechtenstein, is saying that there could be a move to $3,000.00 per ounce of gold. His guess is that gold could head to to $2,000 or $3,000…..
It was probably predictable that the housing market would catch Home Depot (HD) from behind and drag it to the ground. That certainly happened last quarter.
At American Express (AXP) customers are not called customers. They are called “members.” Warren Buffett has probably been a member since 1955. George Soros may go all the way back to 1950.
