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Buffett's worst yearBerkshire Hathaway reported today that its net worth fell in 2008 by $11.5 billion, a decline reducing its per-share book value by 9.6%. That was Berkshire's worst result in the 44 years that Chairman Warren Buffett has run the company and, in fact, only the second decline in that period. The other drop was 6.2% in 2001, a year hurt by 9/11 and other problems in Berkshire's insurance operations.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 2:16 pm Mortgage breaks: Wealthy on the hookThe Obama administration plans to tap the rich to help pay for its ambitious programs. Specifically, that will include slashing mortgage interest deductions for high-income taxpayers.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 2:12 pm Buffett admits mistakes in annual Berkshire letterBillionaire Warren Buffett says he made at least one major investing mistake last year by buying a large amount of ConocoPhillips stock when oil and gas prices were near their peak. The...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 2:12 pm Buffett remains optimistic about America's futureBillionaire Warren Buffett says all kinds of investors finished 2008 bloodied and confused because of the dysfunctional credit market and other financial turmoil. Buffett says in his...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 2:10 pm NewsWatch: S&P 500 finishes at worst level since December 1996As stocks tally another month of stiff losses, investors are especially focused on the S&P 500 Index, with the broad market gauge closing below its November lows -- and also below the 740-to-750 range some had hoped for.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 2:00 pm Berkshire reports a 62 percent drop in 2008 profitWarren Buffett's Berkshire Hathaway Inc. has reported a 62 percent drop in its 2008 net income because investment and derivative losses of nearly $7.5 billion weighed on the results. ...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 1:59 pm Berkshire net sinks; Buffett says economy in shamblesNEW YORK (Reuters) - Berkshire Hathaway Inc, Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market, which caused its net worth to tumble $10.9 billion.Source: Reuters: Business News | 28 Feb 2009 | 1:56 pm Berkshire net sinks; Buffett says economy in shambles (Reuters)Reuters - Berkshire Hathaway Inc, Warren Buffett's insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market, which caused its net worth to tumble $10.9 billion.Source: Yahoo! News: Business | 28 Feb 2009 | 1:56 pm After GE Dividend News, What To Expect Next (GE)
The first thing we expected to change was the dividend. That has been cut. The cut is more than we expected as we were only calling for half of the dividend to be cut. Frankly, what’s a few billion between friends….. The dividend is out. This is going to sound like heresy, but we are just going to address it. GE still has a TRIPLE-A rating form the ratings agencies of Moody’s and S&P. We have not been told this by the ratings agencies (particularly since we bash them all the time), but we are just assuming for evaluation purposes that the TRIPLE-A rating will not be around forever. Not in this climate. There are things that G.E. could do further to protect that rating. Moody’s put out a “still under review” notice within about an hour of yesterday’s dividend cut. We hope we are wrong in this assumption in evaluating our position here. We believe that the last two analyst downgrades that were over the same things we have discussed over and over were about as late as the notion that maybe you better pay down your high interest credit cards. Another bit of heresy. We are just already operating under the assumptions that a member of senior management will not be there for much longer. I personally do not endorse that notion. But the drop here has been too big to ignore and the calls for change have been so frequent that you have to wonder. Whether it is more and more reshuffles or whether it occurs in the top few positions, we just won’t be be shocked at all if there is a big change announced at some point not too far out. Again, this is just one of the assumptions that new investors wanting to buy G.E. stock should consider. Earnings metrics… First just address earnings for all of 2009. GE’s consensus estimate from First Call is $1.26 EPS. Just 3 months ago, the consensus estimate was $1.75. This estimate hasn’t come down much at all in the last few weeks. You read much of the same data we do…. Who here would be surprised at all if GE makes new earnings assumptions. Even if it does not, ask yourself if you would be shocked if analysts take those numbers down further. This should already be factored in. Capital… The good news is that in the official statement, Immelt said that the company has no plans to raise more equity. Now here is the deal. We actually expect more capital to be raised. That might not be equity. That could be in units or lines of business. It could come from a thousand sources. We have just already factored it in mentally. They may prove us wrong. Customers and credit… We have seen more credit erosion than we want to discuss. Trust me, it is depressing covering it. So we just expect credit erosion at the company’s customers. Sorry, but we already believe that is the case. Airplane orders, infrastructure projects, alternative energy pacts, oil exploration, and on and on. How many delays or cancellations does it take before deciding that you could expect even more issues to be passed on down the line toward GE’s units. The good news is that if this holds up on a performance metric better, then there will be a pleasant surprise. There is one notion that we want to say in all of our gloom and doom that we believe should already be baked in the cake. But there is one distant outlier that is not. We want to say up front that NONE of the analysts covering it have made this call. We are not making it either. But we want to at least address it because we believe that this is not factored in and would not be a “known” event. What if the company managed to post a loss from operations ? Again, we are not making that call. That would not be factored in by our estimates. We won’t be shocked if and when Immelt and friends in the company talk down numbers, although, again, we do not expect any “loss” scenario on earnings. Here is a part of what the statement from Immelt: “We have made tremendous progress in strengthening GE’s balance sheet to ensure that the Company is well-capitalized and with access to ample liquidity… At the February 6 Board meeting, we announced we would evaluate the dividend for the second half of 2009 in light of current market conditions. After extensive review, we have determined that reducing the dividend, while still maintaining it at a competitive level, is a prudent measure to further enhance our balance sheet and provide us with additional flexibility for potential future opportunities. With these actions and the others we have taken to keep the Company safe and secure, we currently do not have any plans to raise more equity.” We will be addressing this position again in the “10 Stocks Under $10″ newsletter this weekend. We do not expect any miracle cures in the world and we are not expecting everyone to benefit from the changes that are coming. That is one of the reasons that we have a balance between positive and negative calls in the newsletter. Jon C. Ogg       Source: 247 Wall Street | 28 Feb 2009 | 1:51 pm ECB's Trichet: We'll see a pick up in 2010DUBLIN (Reuters) - European Central Bank President Jean-Claude Trichet said in an interview that a pick up in the economy will be seen next year.Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 1:50 pm ECB's Trichet: We'll see a pick up in 2010 (Reuters)Reuters - European Central Bank President Jean-Claude Trichet said in an interview that a pick up in the economy will be seen next year.Source: Yahoo! News: Business | 28 Feb 2009 | 1:50 pm ECB's Trichet: We'll see a pick up in 2010DUBLIN (Reuters) - European Central Bank President Jean-Claude Trichet said in an interview that a pick up in the economy will be seen next year.Source: Reuters: Business News | 28 Feb 2009 | 1:50 pm Volkswagen to cut all temporary staff: chairmanGerman auto maker Volkswagen will cut all of its temporary staff, which numbered some 16,500 in 2008, company head Martin Winterkorn said in an interview with Der Spiegel magazine. AskedSource: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 1:37 pm Stocks end at 12-year lowsStocks tumbled Friday on worries about the government taking a bigger chunk of Citigroup and a bleak reading on the economy, again touching 12-year lows.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 1:35 pm Combative Obama vows to fight for his budgetA combative President Barack Obama warned he was bracing for a fight against powerful lobbyists and special interests who sought to pick apart the $3,550bn budget he wants to advance his agenda of reformSource: Financial Times - US homepage | 28 Feb 2009 | 1:28 pm Personal Finance Daily: The week's 10 best Personal Finance stories: Feb. 23-27In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Feb. 23-27:Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 1:01 pm HSBC plans $17 billion share sale: reportLONDON (Reuters) - HSBC , Europe's biggest bank, plans to raise more than 12 billion pounds ($17 billion) in a share sale aimed at propping up its capital base during the global economic crisis, the Financial Times reported on Saturday.Source: Reuters: Business News | 28 Feb 2009 | 12:56 pm Germany ready for 5bln euro Opel bail out: reportThe German government is prepared to step in to help auto maker General Motors Europe's Opel division with a bail out of up to five billion euros (6.3 billion dollars), a report said...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 12:30 pm Auto Review: 2009 Mercedes Benz GL320 BlueTEC: Attention diesel loversThere are two outstanding features here -- the incredibly refined, clean burning BlueTEC diesel and the fact that two full-grown adults can actually fit in the third row seat.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 11:01 am TRAK, The Producer of the World's First Urban Kayak Announces New LeadershipTRAK Kayaks Inc., the producer of the world's first Urban Kayak is pleased to announce that Nolin Veillard has been appointed Chief Executive Officer and member of the BoardSource: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 11:00 am Wall Street slides after Citigroup-government deal (AP)
Source: Yahoo! News: Stock Markets News | 28 Feb 2009 | 10:04 am Unions try to heal wounds of bitter splitNearly four years after a nasty breakup split organized labor, union leaders are again talking about reuniting under a single, more powerful federation, possibly this year. Leaders from...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 10:02 am SNAPSHOT - Financial Crisis - 0812 GMT- U.S. economy suffers deepest contraction since early 1982 in 4th quarter, shrinking at worse-than-expected 6.2 percent annual rateSource: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 8:12 am Dividend outlook down, not outFor investors, one encouraging note in President Obama's budget proposal this week was his commitment to retain most of the Bush administration's tax break on dividends.Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am Lax IndyMac regulation worsened exposure of depositorsHad the Office of Thrift Supervision done its job, the loss of $270 million in deposits when IndyMac collapsed might have been prevented, a federal report says. ...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am State caught in avalanche of job lossesAfter steep January cuts, more than 1 in 10 Californians is out of work. It's even worse in L.A. County.Unemployment in California shot up to its highest level in nearly 26 years in January, leaving more than 1 in 10 workers without a job. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am California unemployment rate reaches 10.1%With more than 1 in 10 workers unemployed in January, the state registers its highest jobless rate since June 1983. ...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am U.S. taking direct stake in CitigroupTo prop up the ailing giant, Treasury plans to convert preferred shares into as much as 36% of the company. CEO Pandit says it's not nationalization.In agreeing to become the biggest owner of Citigroup Inc.'s common stock, the government is moving as close as it has come in 25 years to nationalizing a major bank, demonstrating a continued willingness to act aggressively to address the financial crisis. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am State caught in avalanche of job lossesAfter steep January cuts, more than 1 in 10 Californians is out of work. It's even worse in L.A. County. Unemployment...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am Univision lays off 300 workersThe nation's largest Spanish-language broadcaster owns KMEX-TV Channel 34, the top-rated Los Angeles station. The company also cancels its weekend newscast. ...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am New airline begins service between Los Angeles and AustraliaV Australia, founded by British billionaire Richard Branson, is the latest volley in a transpacific fare war that has already cut the price of a round-trip ticket by half.A new airline started by flamboyant British billionaire Richard Branson inaugurated service between Los Angeles and Australia on Friday, the latest volley in a transpacific fare war that has already cut the price of a round-trip ticket by half. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am U.S. taking direct stake in CitigroupTo prop up the ailing giant, Treasury plans to convert preferred shares into as much as 36% of the company. CEO Pandit says it's not nationalization. ...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am Redstone, bankers restructure mogul's $1.46-billion debtThe threat to his media empire, which includes CBS and Viacom, is temporarily lifted.Media mogul Sumner Redstone reached an agreement Friday with bankers to restructure the huge debt of his family company, easing the immediate threat that it would be broken apart. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am New burst of bad news knocks stocksThe Dow falls 119 points as Citigroup and dismal GDP data unsettle investors.Wall Street ended another unforgiving month with a steep loss -- one that left the Dow Jones industrial average at less than half its record high. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am Redstone, bankers restructure mogul's $1.46-billion debtThe threat to his media empire, which includes CBS and Viacom, is temporarily lifted. Media mogul Sumner Redstone...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am Lax IndyMac regulation worsened exposure of depositorsHad the Office of Thrift Supervision done its job, the loss of $270 million in deposits when IndyMac collapsed might have been prevented, a federal report says.After selling her Orange County home, Cheryl Hodgson parked an escrow check for about $360,000 with IndyMac Bancorp. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am New airline begins service between Los Angeles and AustraliaV Australia, founded by British billionaire Richard Branson, is the latest volley in a transpacific fare war that has already cut the price of a round-trip ticket by half. ...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am Nick Counter, chief studio negotiator, to retireThe Hollywood veteran helped put together 311 major contracts in 25 years with the AMPTP. Nick Counter, who as...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am California unemployment rate reaches 10.1%With more than 1 in 10 workers unemployed in January, the state registers its highest jobless rate since June 1983.Lackluster spending on clothes, cars, legal services and most everything else has left California's economy listless, just about guaranteeing that the state's 10.1% unemployment in January will march upward until at least the end of the year, economists predicted. Source: L.A. Times - Business | 28 Feb 2009 | 8:00 am New burst of bad news knocks stocksThe Dow falls 119 points as Citigroup and dismal GDP data unsettle investors. Wall Street ended another unforgiving...Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 8:00 am Gordon Brown has as little shame as Sir Fred GoodwinParliament should debate Gordon Brown's salary and perks and slash them writes Simon Heffer.Source: Telegraph Finance | 28 Feb 2009 | 7:59 am Dividend outlook down, not outFor investors, one encouraging note in President Obama's budget proposal this week was his commitment to retain most of the Bush administration's tax break on dividends.Source: RSS feed - channel BNPaperBusiness | 28 Feb 2009 | 6:51 am Britain's HSBC plans $17 billion share sale: reportSINGAPORE (Reuters) - HSBC, Europe's biggest bank, plans to raise more than 12 billion pounds ($17 billion) in a share sale aimed at propping up its capital base in order to cope with the...Source: RSS feed - channel BNewsBusiness | 28 Feb 2009 | 4:43 am Regulators shutter 2 more banksU.S. bank regulators closed two more banks on Friday, the 15th and 16th banks to fail this year, as the worsening recession pulled more regional banks underwater.Source: Business and financial news - CNNMoney.com | 28 Feb 2009 | 2:25 am BofA carries loans $44 billion above market valueNEW YORK (Reuters) - Bank of America Corp is carrying loans on its balance sheet marked at more than $44 billion above their fair value, the company said in its annual report filed with U.S. regulators on Friday.Source: Reuters: Business News | 28 Feb 2009 | 2:14 am Citigroup gets new rescue, U.S. may own 36 percentNEW YORK/WASHINGTON (Reuters) - The U.S. government will boost its equity stake in Citigroup Inc to as much as 36 percent, bolstering the bank's capital base in the latest emergency effort to save the banking giant.Source: Reuters: Business News | 28 Feb 2009 | 1:51 am Citigroup gets new rescue, U.S. may own 36 percent (Reuters)
Source: Yahoo! News: Business | 28 Feb 2009 | 1:51 am U.S. charges Stanford with massive Ponzi schemeHOUSTON (Reuters) - U.S. securities regulators on Friday accused Texas billionaire Allen Stanford, his college roommate and three of their companies of carrying out a "massive Ponzi scheme" over at least a decade and misappropriating at least $1.6 billion of investors' money.Source: Reuters: Business News | 28 Feb 2009 | 1:38 am U.S. charges Stanford with massive Ponzi scheme (Reuters)Reuters - U.S. securities regulators on Friday accused Texas billionaire Allen Stanford, his college roommate and three of their companies of carrying out a "massive Ponzi scheme" over at least a decade and misappropriating at least $1.6 billion of investors' money.Source: Yahoo! News: Business | 28 Feb 2009 | 1:38 am Weekend Investor: Investors ditch market-beating attempts, embrace index fundsMutual fund investors in 2008 yanked more money out of actively managed stock-funds than they put in for only the third time ever, and index-fund rivals took the spoils.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 1:03 am Manhattan DA Morgenthau to retireAfter 35 years on the job, Manhattan District Attorney Robert Morgenthau said on Friday he will not seek re-election to a position in which he has focused in recent years on prosecuting serious financial crimesSource: Financial Times - US homepage | 28 Feb 2009 | 12:58 am AIG talks weigh securitizing life policies: source (Reuters)
Source: Yahoo! News: Business | 28 Feb 2009 | 12:57 am AIG talks weigh securitizing life policies: sourceNEW YORK (Reuters) - American International Group Inc may securitize some U.S. life insurance policies and have the interest rate on a government loan lowered, as talks continue to help the insurer deal with its financial problems, a source familiar with the matter said on Friday.Source: Reuters: Business News | 28 Feb 2009 | 12:57 am Five reasons buying a house now is a wise movePeople are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 12:52 am Five reasons buying a home in 2009 is a bad ideaThe unemployment rate is creeping up and home prices keep falling: Two great reasons why it might be best to put your home buying plans on hold. Here are three more:Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 12:52 am Trends & Innovations - FridaySearch spurs new town namesSource: Investor's Business Daily: BUSINESS | 28 Feb 2009 | 12:38 am Software's Semi-Safe HavenTech spending is receding as the economy founders, but security software vendors have a safer haven than other segments. They're still growing,...Source: Investor's Business Daily: BUSINESS | 28 Feb 2009 | 12:38 am Maker Of Diagnostic Tests Strengthened By Novartis AgreementTwo back-to-back deals announced in January kicked Gen-Probe's stock up another notch in a climb that began back in November. After hitting a...Source: Investor's Business Daily: BUSINESS | 28 Feb 2009 | 12:38 am Business Briefs - FridayNTT DoCoMo, Japan's No. 1 wireless operator, halted sales of Research In Motion's RIMM BlackBerry Bold because it said the smart phone can...Source: Investor's Business Daily: BUSINESS | 28 Feb 2009 | 12:38 am Taxing Times: Tax hikes are coming -- but you already knew thatPresident Barack Obama’s budget plans riled up the media pundits even before he unveiled it Thursday, in large part because of the tax hikes proposed on higher-income Americans. But most of those tax increases shouldn’t be a surprise, given that back on the campaign trail Obama detailed his intent to let the Bush-era tax cuts expire on higher-income taxpayers.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 12:36 am Investors await Buffett letter as Berkshire hits 5-1/2 year lowsWarren Buffett’s letter to investors may be the most highly anticipated missive from the legendary investor in almost a decade as his conglomerate suffers from big exposure to the troubled U.S. financial-services sector.Source: MarketWatch.com - Top Stories | 28 Feb 2009 | 12:29 am Stanford and aide took 1.2bn in bogus loans accuses SECPair allegedly provided fake personal loans to the Texan billionaire.Source: Telegraph Finance | 28 Feb 2009 | 12:16 am HSBC to launch record 20bn share issueFundraising to offset deterioration in its core Asian markets and escalating losses in the US.Source: Telegraph Finance | 28 Feb 2009 | 12:09 am Need to know: Tata drops ... C&C adds variety ... Serco profitsView video and Need to Know interactive heatmapSource: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am It's all about fairness, Mr Mervyn KingAsked about Sir Fred's pension in Parliament this week, Mervyn King refused to be drawn. The Governor of the Bank of England said that he did not want to “jump on the bandwagon of a rather unappealing sort of vengeance”. In other circumstances, those words might have come across as generous, high-minded and judicious.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am William Hill's Gibraltar move seen as a warning to TreasuryWilliam Hill, the bookmaker, has issued a thinly veiled threat to move its internet sports betting operation offshore unless the Government changes the tax regime in the next Budget.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Lloyds counts cost of HBOS takeover and property slump as 500,000 customers slip into negative equityThe number of mortgage-holders borrowing from Lloyds Banking Group that are trapped in negative equity surged last year to half a million, the group, which is 43 per cent owned by the taxpayer, revealed yesterday.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Toxic effect of these golden goodbyesWidening inequalities have been the cost of the expansion and integration of the global economy in the past two decades. As societies overall have become richer, critics of the market economy have focused on the unequal distribution of the fruits of growth. With the world in recession, inequality in unemployment is becoming at least as potent a political issue as inequality in income.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Fear of global depression rises as US reveals true extent of declineThe US was hit by its most brutal slump in a quarter of a century at the end of last year as consumers and businesses reined in spending, fuelling fears that the world recession may be deeper than already feared.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Allen Stanford borrowed £1.6 billion from his investment empireThe Texan cricket impresario Allen Stanford borrowed $1.6 billion from his investment empire, it emerged yesterday as his chief investment officer was due in a court in Houston to hear charges that she had obstructed regulators.$Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Gordon Brown pins his hopes of recovery on Barack ObamaSource: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Lawyers examine payoff of banker blamed for losing billions at HBOSSource: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Grudge between Lord Myners and Sir Fred Goodwin born at board tableIt is not clear when Lord Myners first met Sir Fred Goodwin, but it is highly likely that their earliest meetings may not have been in the most cordial of circumstances.Source: Latest Business News from Times Online | 28 Feb 2009 | 12:00 am Asian trade breakthrough in ThailandAs fears of increased protectionism grow during the international financial crisis, New Zealand products are to benefit from a new trade deal signed up to in Thailand last night. New Zealand and Australia entered the free trade...Source: New Zealand Herald - Business | 28 Feb 2009 | 12:00 am Holocaust survivor Elie Wiesel's anger at 15m Bernard Madoff lossBernard Madoff should be locked up and forced to look at pictures of his alleged victims Nobel laureate Elie Wiesel has said.Source: Telegraph Finance | 27 Feb 2009 | 11:53 pm After Hours: Citigroup remains under pressure in evening tradesCitigroup Inc. shares drop in late trade, adding to steep monthly declines after the U.S. government agrees to take a greater stake in the embattled firm.Source: MarketWatch.com - Top Stories | 27 Feb 2009 | 11:50 pm GE slashes dividend by two-thirdsGeneral Electric said Friday that it plans to cut its dividend by 68%, to 10 cents from 31 cents a quarter, a move the conglomerate says should save it $9 billion a year.Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 11:48 pm GE makes rare cut in dividendGeneral Electric makes a rare cut in its shareholder dividend in a bid to conserve cash amid the economic downturn.Source: BBC News | Business | World Edition | 27 Feb 2009 | 11:47 pm Canadian Markets: Financial group slumps; benchmark logs sixth monthly lossFurther concerns about banks and the U.S. economy lead Canadian shares broadly lower.Source: MarketWatch.com - Top Stories | 27 Feb 2009 | 11:34 pm Louisiana bank is first to return TARP fundsIBERIABANK Corp. became the first bank to pull out of the government's bailout program Friday, saying it would be returning the $90 million it received from the government in early December under the Troubled Asset Relief Program.Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 11:33 pm HSBC plans £12bn-plus share issueBank seeks to strengthen its capital buffers to cope with global downturnSource: Financial Times - US homepage | 27 Feb 2009 | 11:30 pm President thinks big in budget planPresident Obama last week -- his sixth in office -- showed his hand on how he hopes to shape the government's federal budget and the U.S. economy along the way.Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 11:28 pm AIG: The bailout that won't quitTroubled insurer American International Group is looking for more help from the federal government as it struggles to sell off assets and keep its core businesses afloat.Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 11:25 pm How the Dow Jones industrials fared Friday (AP)
Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 11:15 pm Banks and economy to keep bears' grip on stocks (Reuters)
Source: Yahoo! News: Business | 27 Feb 2009 | 10:58 pm Banks and economy to keep bears' grip on stocks (Reuters)
Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 10:58 pm Banks and economy to keep bears' grip on stocksNEW YORK (Reuters) - Wall Street is unlikely to get a reprieve next week as relentless worries about U.S. banks and the economy could embolden bears to drive the market below the 12-year lows hit on Friday.Source: Reuters: Business News | 27 Feb 2009 | 10:58 pm Work Life: Board game designerOn this week's Day in the Work Life, we meet someone who hopes we all stay in -- but do something other than stare at the boob tube.Source: Marketplace Money | 27 Feb 2009 | 10:54 pm American Express revises fourth quarter profit upwardNEW YORK (Reuters) - American Express Co revised upward its fourth quarter profit by almost 40 percent to $240 million, due to a hedge accounting error, the company said in a regulatory filing on Friday.Source: Reuters: Business News | 27 Feb 2009 | 10:54 pm What to do with your worthless stockIf you've bought into a worthless stock, is it hopeless to try to make a gain? Cash Peters went to find out and learned some valuable lessons along the way -- including not trust his financial advisers.Source: Marketplace Money | 27 Feb 2009 | 10:51 pm Apple picks new accountantRead full story for latest details.Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 10:48 pm Microlending is no small dealAt a time when many banks are reeling from the hit they took on subprime mortgages, one New York institution has no problem collecting on its loans. Joel Rose reports on tiny bank loans making a big impact.Source: Marketplace Money | 27 Feb 2009 | 10:47 pm The end of exuberanceJohn Authers on a grim day for US marketsSource: Financial Times - US homepage | 27 Feb 2009 | 10:46 pm US stocks: Bad corporate news brings sharp dropNEW YORK - Stocks have fallen sharply after Citigroup and General Electric announced moves that will reduce the value of the companies' shares. Citigroup will turn over a big piece of itself to the government. That is fanning worries...Source: New Zealand Herald - Business | 27 Feb 2009 | 10:45 pm Taking a family stress testHow do you test the financial stability of a group slightly smaller than a major bank? Tess Vigeland talks to personal finance expert Knight Kiplinger -- of Kiplinger's Personal Finance about working on a family budget.Source: Marketplace Money | 27 Feb 2009 | 10:43 pm 6 companies born during horrible timesThink a recession is a bad time to launch? Imagine if the founders of these 6 major corporations had thought the same...Source: Business and financial news - CNNMoney.com | 27 Feb 2009 | 10:40 pm Why is the focus of the banking crisis still revolving around pay?Source: Telegraph Finance | 27 Feb 2009 | 10:35 pm Nationalization fears are mountingIt was a wild week for bank stocks as rumors of nationalizations, bailouts and massive losses created a roller-coaster for investors. Steve Henn reports on what this might mean for you.Source: Marketplace Money | 27 Feb 2009 | 10:34 pm The dirty 'D' word is coming backA dirty word that is slowly creeping into financial crisis dialogue: Depression. What's the difference between a recession and a depression? Tess Vigeland talks to professor Robert Reich about whether we're really in one.Source: Marketplace Money | 27 Feb 2009 | 10:29 pm Write-Offs: 02.27.09$$$ Talking Shop With a Vulture Investor [Daily Intel] $$$ Criminal Complaint HAS Been Issued For Sir Allen [Clusterstock] $$$ "A former Chicago nightclub owner whose investment firm, Tsunami Capital, was sued by the federal government amid fraud allegations, has been indicted for allegedly running a Ponzi scheme, authorities said today." [CBN] $$$ "Oppenheimer: Dropping Coverage Summary: We are dropping coverage of the U.S. banks and brokers sector, owing to a * The decision is unrelated to any awareness on our part of any material change in the fundamental condition of the firms. Rather, it stems from a reorganization of our financial services coverage. PERFORM UNDERPERFORM 
Source: Dealbreaker | 27 Feb 2009 | 10:20 pm Bank fear sends S&P to worst-ever start to a year (Reuters)
Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 10:16 pm Banking your time to save you moneyYou say your neighbor wants help with her gardens, and you're pretty good at fixing cars? Some communities are quantifying this kind of neighborly good will. Paul Rockower checked out the barter system at a time bank in Los Angeles.Source: Marketplace Money | 27 Feb 2009 | 10:13 pm Something Brewing At Mosaic? (MOS, AGU, CF, TRA)
We might not cover this, except that there is now a merger trifecta in the ag-fertilizer space. Agrium Inc. (NYSE: AGU) is involved in an offer for CF Industries Holdings, Inc. (NYSE: CF) and interestingly enough, CF had itself launched a $2.1 billion hostile bid Terra Industries, Inc. (NYSE: TRA). So we do not know if the pre-weekend traders were looking for somewhat related sector plays or if this was different speculation. Here is the options movement for MARCH, meaning that the expectation (if there is an expectation) is for an event to occur soon: STRIKE Volume Op.Int. Shares closed up 8.5% at $43.05 and its 52-week trading range is $21.94 to $163.25. Jon C. Ogg Tagged: AGU, CF, MOS, TRA      Source: 247 Wall Street | 27 Feb 2009 | 10:10 pm McManus, Rangel Discuss U.S. Fiscal Stimulus PackageSource: Bloomberg - All Podcasts | 27 Feb 2009 | 10:10 pm SEC accuses Idaho businessman of $40M fraud (AP)AP - Federal regulators are accusing an Idaho businessman of conning at least $40 million from investors and using the money to make credit card payments, pay for snowmobiles and a mansion in Idaho Falls.Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 10:08 pm Getting PersonalTess Vigeland and economics editor Chris Farrell give advice to listeners who call in with their pressing financial questions.Source: Marketplace Money | 27 Feb 2009 | 10:04 pm Bove Says Bank Stress Test Designed to Not Show ProblemsSource: Bloomberg - All Podcasts | 27 Feb 2009 | 9:58 pm US economy suffers sharp nosediveThe US economy shrank by 6.2% in the last three months of 2008 revised official figures show, sending stocks spiralling lower.Source: BBC News | Business | World Edition | 27 Feb 2009 | 9:57 pm PNC's Hoffman Sees `Back to Back Swan Dives' for U.S. EconomySource: Bloomberg - All Podcasts | 27 Feb 2009 | 9:57 pm Apple Swaps Auditors (AAPL)
After a competitive review, Apple has engaged Ernst & Young LLP as its independent registered public accounting firm for the remainder of the fiscal year ending September 26, 2009. It has dismissed KPMG from that role. Apple also noted that KPMG’s audit reports did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The audit reports of KPMG on the effectiveness of internal control over financial reporting as of September 28, 2008 and September 29, 2007, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles. Here is the full filing containing the rest of the language. Jon C. Ogg       Source: 247 Wall Street | 27 Feb 2009 | 9:53 pm US increases stake in CitigroupCitigroup agrees a deal which sees the US government increase its stake in the ailing bank from 8% to 40%.Source: BBC News | Business | World Edition | 27 Feb 2009 | 9:49 pm US government increases Citi stakeSource: Telegraph Finance | 27 Feb 2009 | 9:44 pm Broken by debtHungarians feel the force of the economic crisisSource: BBC News | Business | World Edition | 27 Feb 2009 | 9:38 pm Vauxhall turns to private investorsCar maker seeks backing after Europe approves UK's £2.3bn industry bailout.Source: Telegraph Finance | 27 Feb 2009 | 9:33 pm Retirement: Test your financial planning IQ (AP)AP - The formula for a financially successful retirement used to be straightforward: Work for decades for one employer and then live happily ever after on the pension, Social Security and whatever personal savings you were able to amass.Source: Yahoo! News: Business | 27 Feb 2009 | 9:31 pm Banker: “Take This TARP and Shove It” (IBKC)
Daryl G. Byrd, President and CEO, said “…..We believe recent actions, interpretations, and commentary regarding various aspects of the program places our Company at an unacceptable competitive disadvantage. Our Board of Directors has determined that continued participation in this program is no longer in the best interest of our Company and its shareholders.” The company showed what its ratios look like after the redemption as of December 31, 2008. Its pro forma regulatory capital ratios would have been tier 1 leverage ratio of 9.51%, tier 1 risked based capital ratio of 11.87%, total risk based capital ratio of 13.29%, and its ratio of tangible equity to tangible assets would have been 7.24% at December 31, 2008. Between the period it received the TARP funds and February 25, 2009, its loan portfolio increased by 2% or approximately $68 million. The loan growth included total loan originations net of scheduled principal payments, loan pay-offs, and other factors. This stock closed up over 5% at $43.20 on about double its normal average volume. Its 52-week trading range is $35.78 to $70.66 and it has a market cap of about $687 million. It seems like other banks should take heed here and follow suit…. assuming they can. Jon C. Ogg       Source: 247 Wall Street | 27 Feb 2009 | 9:29 pm China warns of unemployment riskChina's commerce minister tells the BBC the country's biggest challenge is rising unemployment, which could trigger social unrest.Source: BBC News | Business | World Edition | 27 Feb 2009 | 9:24 pm Straight Story: Obama's budget planPresident Obama's budget proposal has some interesting ideas involving student loans, Pell Grants, retirement and taxes. Tess Vigeland talks to our Economics Editor Chris Farrell, who breaks down portions of Obama's proposed 134-page budget.Source: Marketplace Money | 27 Feb 2009 | 9:22 pm Treasury holds up Lloyds asset planLloyds unveils £10.8bn loss at HBOS but says it was a good deal.Source: Telegraph Finance | 27 Feb 2009 | 9:21 pm Hear: He Nationalized A Bank
Architect's February cover asks, "Fees: How low should you go?" Sent by Connie Holloway On today's Planet Money: -- William Isaac says he's the only person in America who has ever nationalized a bank. Isaac, who led the FDIC during the Savings and Loan crisis of the 1980s, doesn't recommend it. (Isaac's WSJ op-ed.) -- Ever since U.S. Treasury Secretary Tim Geithner gave an interview to Planet Money this week, listeners have debated whether he said anything of substance. Now three economists -- Amir Sufi, Russ Roberts and Simon Johnson -- reveal what they heard. -- Architect Celeste Lewis runs her own shop in Portland, Ore. She says business has almost dried up, and the end may not be far. Download the podcast; or subscribe. Intro music: M.I.A.'s "Hussel." Find us: Twitter/ Facebook/ Flickr » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 27 Feb 2009 | 9:09 pm The 52-Week Low Club (TSCM)(EBAY)(GE)(SNTA)(ABK)(C)
AMBAC Inc (ABK) Market hates it earnings. Drop to $.56 from 52-week high of $12.37. Synta Pharmaceuticals (SNTA) Drug trial suspended. Multiple broker downgrades. The daily double. Off to $1.31 from 52-week high of $10.30. GE (GE) Cuts dividend. Falls to $8.40 from 52-week high of $38.52. Ebay (EBAY) Concerns recession will hurt e-commerce. Sells down to $10.50 from 52-week high of $33.47. TheStreet.com (TSCM) Financial advertising falling apart. Down to $1.87 from 52-week high of $9.49. Douglas A. McIntyre Tagged: ABK, C, EBAY, GE, SNTA, TSCM      Source: 247 Wall Street | 27 Feb 2009 | 8:55 pm Household Debt Vs. GDPThis chart tracks the relationship between household debt and gross domestic product. You'll see two years when Americans' debt becomes 100 percent of GDP -- 1929 and 2007. It's the chart that made Columbia professor David Beim say: "The problem is us. The problem is not the banks, greedy though they may be, overpaid though they may be. The problem is us... We've been living very high on the hog. Our living standard has been rising dramatically in the last 25 years. And we have been borrowing much of the money to make that prosperity happen." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 27 Feb 2009 | 8:45 pm 90 Out Of 8000 Isn't BadThank the heavens the FBI and a receiver are on the case. If the SEC were in charge we would have found assets of -$1.8 billion by this time. Yes, we could be angry. We could be very angry indeed. Fortunately, cooler heads have prevailed, and instead we have begun the slow process of financial fraud recovery. Specifically: 1. We admitted we were powerless over Ponzi schemes and fraud--that our lives had become unmanageable. 2. Came to believe that a Power greater than money could restore us to sanity. 3. Made a decision to turn our will and our lives over to the care of unemployment checks as we understood them. 4. Made a searching and fearless moral inventory of our assets. 5. Admitted to the bank, to ourselves, and to another investor the exact nature of our wrongs. 6. Were entirely ready to have the bankruptcy judge remove all these defects of character. 7. Humbly asked Him (the judge) to remove our shortcomings. 8. Made a list of all creditors we had harmed, and became willing to make amends to them all. 9. Made direct amends to such creditors wherever possible, except when to do so would injure them or others. 10. Continued to take personal inventory and when we were wrong promptly admitted it to our auditors. 11. Sought through our attorney to improve our conscious contact with Him as we understood Him, pleading only for knowledge of His will for us and the power to carry that out. 12. Having had a financial awakening as the result of these steps, we tried to carry this message to others, and to practice these principles in all our affairs. So, this news seems... well... beneath us. We'd write more, but we have a meeting to go to. The court-appointed receiver overseeing the financial empire of Texas billionaire Allen Stanford, who is charged with fraudulently selling $8 billion in certificates of deposit, has located $90 million in assets so far, an FBI agent said on Friday. Stanford receiver finds $90 million in assets: FBI [Reuters]
Source: Dealbreaker | 27 Feb 2009 | 8:40 pm Call The DowYes, on a day like today (we've seen over 2% down on the S&P 500, about break even, and back to 1.25% down) we figured it would be the prefect time to play "guess today's Dow close." It's 7138 right now. What say you, Dealbreaker? Same rules as always. Closest without going under. Go.
Source: Dealbreaker | 27 Feb 2009 | 8:29 pm Moody’s Worthless Review Of GE Dividend Cut (GE)
The report says that the reduction in the dividend will address some of the concerns over teh stress upon GE. But the report also states that the review for possible downgrade continues. The initial January 27, 2009 report remains centered on GECC’s performance prospects over asset quality, the industrial cash flows, and continued tight credit markets. In short, there is really nothing new here. We still think a shot has been fired across the bow at G.E. by the ratings agencies. We at 24/7 Wall St. still consider all of this as part of a long process of a “Downgrade-Lite Call” from the agencies. Maybe there is some good news here right now. Technically, GE is still officially Triple-A. Jon C. Ogg       Source: 247 Wall Street | 27 Feb 2009 | 8:25 pm GE U-turns to slash dividendGE slashed its quarterly dividend for the first time since 1938, a step that marks both a reversal of the conglomerate's repeated defence of the pay-out and an admission that the severity of the financial crisis continues to defy its expectationsSource: Financial Times - US homepage | 27 Feb 2009 | 8:20 pm Agnico-Eagle Raised to `Outperform' at Raymond JamesSource: Bloomberg - All Podcasts | 27 Feb 2009 | 8:18 pm For ailing Nortel, quarterly revenue is crucialTORONTO (Reuters) - When Nortel Networks Corp reports its quarterly results on Monday, the focus is likely to fall on the top line as investors look to see how well sales at the ailing telecom equipment maker are holding up in the global economic meltdown.Source: Reuters: Business News | 27 Feb 2009 | 8:16 pm Answer: A Hot Pocket, That Has Non-Consensual Sex With You
Source: Dealbreaker | 27 Feb 2009 | 7:54 pm Is time up for the accidental Chancellor?Isolated and lacklustre Alistair Darling is surely doomed says Andrew PierceSource: Telegraph Finance | 27 Feb 2009 | 7:47 pm US economy contracts 6.2%The US economy contracted by an annualised 6.2 per cent in the final quarter of last year, revised government figures showed, the sharpest quarterly contraction since 1982 and a sign of an even deeper recessionSource: Financial Times - US homepage | 27 Feb 2009 | 7:39 pm Top Stanford lieutenant appears in courtChief investment officer faces obstruction of justice chargesSource: Financial Times - US homepage | 27 Feb 2009 | 7:35 pm The Essence Of Class WarfareDoes anyone else find it interesting that, while the Mets managed to seal their stadium naming deal with Citibank, the Yankees are shit out of luck? The Yankees and troubled Bank of America have ended talks for a major sponsorship deal for the new Yankee Stadium. Funny how that worked out, eh? I'm going to resist the temptation to call Ken Lewis Barney Frank's bitch, but you know that's what's on my mind. I mean really. What's next? Taking away the tax deferral and capital gains advantages of carried interests in general partnerships? Yankees, Bank of America end stadium sponsorship talks [Newsday.com]
Source: Dealbreaker | 27 Feb 2009 | 7:34 pm City diary: Putting the case for Myners the remuneratorSource: Telegraph Finance | 27 Feb 2009 | 7:09 pm US company takes over WedgwoodWaterford Wedgwood, which went into administration last year, has been sold to a US private equity firm.Source: BBC News | Business | World Edition | 27 Feb 2009 | 7:06 pm Question
Do you think CNBC overlord Immelt personally put in a special request for the 10-boxer to accompany the GE news?
Source: Dealbreaker | 27 Feb 2009 | 7:06 pm US Treasury to take 36% Citi stakeThe US government agreed to become the biggest single shareholder in Citigroup, in the latest attempt to save the ailing financial group and to shore up the country's banking systemSource: Financial Times - US homepage | 27 Feb 2009 | 7:06 pm Barclays's Englander Says U.S. Fiscal Policies Will WorkSource: Bloomberg - All Podcasts | 27 Feb 2009 | 6:41 pm GE’s Dividend Cut Yields $9 Billion Savings (GE)
A report has come out of CNBC and on Dow Jones confirming the dividend cut news, and our calls and emails into the company have not yet been confirmed. You can bet that the naysayers will come out of the woodwork calling management a traitor. The degree to which the dividend was cut is more than what we had modeled in. But this is a good thing for the current climate where companies have to go into survival mode rather than try to keep paying out shareholders. $9 billion is a hell of a savings, even if it is much more than what we expected. Jon C. Ogg       Source: 247 Wall Street | 27 Feb 2009 | 6:41 pm Highland Capital Will Turn It Around, One Shot In Your Ass At A Time
Highlanders,
Source: Dealbreaker | 27 Feb 2009 | 6:38 pm Levitt Says U.S. Public `Fed Up' With Bank BailoutsSource: Bloomberg - All Podcasts | 27 Feb 2009 | 6:31 pm This Week’s LinksMashable on why big brands have trouble adopting social media. Wired on the human population (6.5 billion!) Zen Habits on essential money skills for a bad economy. Dean Baker on home inventories being higher than statistics show. Source: Business Pundit | 27 Feb 2009 | 6:24 pm Dire growth data fuel Asian fearsWeak data from India and Malaysia provided fresh evidence of the recession's impact Asia and are likely to put pressure on authorities to intervene more forcefullySource: Financial Times - US homepage | 27 Feb 2009 | 6:23 pm Lloyds sees HBOS loss of £10.8bnLloyds Banking Group says its subsidiary HBOS made a pre-tax loss of £10.8bn in 2008, while profits at Lloyds fell 80%.Source: BBC News | Business | World Edition | 27 Feb 2009 | 6:14 pm Madoff Exec: "The situation is obviously fluid"
February 24, 2009
Source: Dealbreaker | 27 Feb 2009 | 6:13 pm Cafeteria jobs serve up some stabilityThere was a time when school cafeteria jobs were hard to fill. But in this downturn, demand for lunchroom jobs has more than tripled in some places. Gigi Douban find out why from a cafeteria in Birmingham, Ala.Source: Marketplace | 27 Feb 2009 | 6:02 pm FDIC raises rates due to bank failuresThe FDIC is raising its rates to compensate for the slumping bank sector. The insurance corporation has shut down 14 banks this year and sold what's left to healthier financial institutions. Mitchell Hartman reports.Source: Marketplace | 27 Feb 2009 | 5:59 pm An opportunity in China's dairy industryChina's dairy industry took a hit when the chemical melamine was found in every brand of its milk. But that hasn't stopped one entrepreneur from entering the industry. Scott Tong reports.Source: Marketplace | 27 Feb 2009 | 5:59 pm Weekly Wrap: Of banks and bucksNews about the banks generated a lot of talk this week. Kai Ryssdal speaks with Fortune Magazine's Leigh Gallagher and Clusterstock.com's John Carney about what's next for the banking sector.Source: Marketplace | 27 Feb 2009 | 5:58 pm What U.S. share stake means for CitiThe Treasury Department will become Citigroup's biggest single shareholder. But will this move be the last for the struggling financial giant? Ashley Milne-Tyte reports.Source: Marketplace | 27 Feb 2009 | 5:58 pm What if there's no economic growth?The GDP shrinkage was worse than expected. With the U.S. economy plummeting, Kai Ryssdal speaks with economist Barry Bosworth about what might happen if we don't see the economic growth the White House is banking on.Source: Marketplace | 27 Feb 2009 | 5:58 pm Government underestimates GDP dropGross Domestic Product shrank 6.2% in the fourth quarter of 2008, much worse than the 3.8% the Commerce Department had predicted just a month ago. How did the government get it so wrong? Steve Henn reports.Source: Marketplace | 27 Feb 2009 | 5:58 pm US troops to quit Iraq by August 2010Most US troops will be out of Iraq by the end of August next year, according to a plan that President Barack Obama is expected to announceSource: Financial Times - US homepage | 27 Feb 2009 | 5:51 pm Foreclosure = Deals!Listener Steve Rhodes sends this firsthand look at the southern California housing crisis. Bonus: Planet Money Flickr group » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 27 Feb 2009 | 5:50 pm FTSE closes sharply down (AFP)
Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 5:45 pm Presented By:Source: Dealbreaker | 27 Feb 2009 | 5:44 pm Right. Except That If You Watch His Eyes, He Blinks "Geithner waterboarded me" In Morse Code
CRITTENDEN: I have to tell you Mark, we are appreciative of the investment that the government has made in us. You know, they've made a significant commitment to the company. As you know, $45 billion.
Source: Dealbreaker | 27 Feb 2009 | 5:44 pm Fertilizer’s Merger Triangle (AGU, CF, TRA)Canadian-based fertilizer maker Agrium Inc. (NYSE: AGU) made an unsolicited offer for CF Industries Holdings, Inc. (NYSE: CF) earlier this week of one share of stock plus $31.70 cash for each CF share. The offer was valued at $3.6 billion. At the time of the offer, the deal was worth a total of $72 per share of CF. Since then, Agrium shares have fallen from Tuesday’s close at $40.30 to yesterday’s $34.89, about 13%. Interestingly, CF had itself launched a $2.1 billion hostile bid for rival fertilizer maker Terra Industries, Inc. (NYSE: TRA) in January. Terra, of course, thinks the offer is too low, and has resisted CF’s cooing noises. Still, these two proposed deals mark the first sign of life in the fertilizer market for the last couple of years. Shares in these companies hit a peak last summer and then fell off the table along with every other stock in September, reaching 2-year lows in November. Shares have been recovering some since then, both as a result of decent earnings from the fertilizer makers, and on the coming growing season. The Obama administration’s commitment to ethanol, which hasn’t had much effect on ethanol makers, is likely to push ag stocks like these fertilizer makers up. Shares in Agrium, CF, and Terra are up about 50% already from those November lows. If one or the other of these deals goes through, all of them could go up even more. P/E ratios for these three companies top out at 5.2 for CF and around 4 for the other two. All are quite low for their size and cash flow. Its no wonder the M&A game has started again. The CF bid for Terra, which includes no cash for Terra shareholders, looks to be totally resistible. The Agrium bid for CF, while offering about 50% cash, has a better chance, especially because Agrium already has the financing in place. CF has not responded to Agrium’s offer yet, but it could surprise by saying ‘yes.’ More likely is that CF will try to drive up the price to see if Agrium does in fact have the cash. Should be interesting to watch. Paul Ausick       Source: 247 Wall Street | 27 Feb 2009 | 4:23 pm A pound to spend a penny as Ryanair mulls charge for toiletsThe Irish budget airline says it is considering charging passengers for using the toilet while flying.Source: BBC News | Business | World Edition | 27 Feb 2009 | 4:00 pm Poor big rich boy sees Packer billions melt awayThe shadow of Andrew Carnegie hangs over James Packer, inheritor of the Australian media dynasty's fortune and captain of its halving in the turmoil of the global financial crisis. Carnegie, the self-made 19th century Scottish...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm Brian Gaynor : Debt falls out of fashion in hard timesDebt has been one of the major issues at the latest round of company result presentations. This is consistent with other countries, particularly Australia, where companies with high debt levels have fallen out of favour with investors. It...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm Liam Dann : Equity fund idea best of bad lotJohn Key advocates a rolling maul approach to fixing the economy. Hard then to know how seriously he will take a Jobs Summit that has come up with 21 ideas that look like the rugby equivalent of spinning it wide from inside your...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm US newspaper crisis claims Denver iconThe newspaper crisis roiling the United States has claimed its biggest victim so far: The Rocky Mountain News, Colorado's oldest newspaper and a Denver fixture since 1859, will publish its last edition today. Owner E.W. Scripps...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm Beating the bear marketThe outside reflections on the polished board room table - mainly cloud, some of it with foreboding grey undersides, and and a few glimpses of blue sky - seems entirely appropriate. While he's well aware that "no one has escaped the...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm Plunging dollar drives Pike River Coal to $9.6m lossAn unrealised foreign exchange loss of $10.8 million pushed Pike River Coal to a $9.6 million loss for the half year to the end of December. The company, which is developing a hard coking coal mine on the West Coast, said the result...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm More staff face axe at Radio NetworkThe Radio Network is shedding jobs in the face of the economic downturn. But the company - which owns half of the New Zealand commercial radio industry - declined to comment on claims that it had already cut more than 80...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm Fairfax looking for $872mA lieutenant from David Kirk's days heading Fairfax Media has left the company as it unveils its scheme to raise A$684 million ($872 million) and reduce debt from A$2.5 billion to A$2.1 billion. Sankar Narayan stepped down after...Source: New Zealand Herald - Business | 27 Feb 2009 | 4:00 pm European, US stocks plunge as economic fears weigh (AP)
Source: Yahoo! News: Stock Markets News | 27 Feb 2009 | 3:40 pm Investec's King Says Bank Rescue Proposals Gaining CredibilitySource: Bloomberg - All Podcasts | 27 Feb 2009 | 3:39 pm O'Neill Sees Another 10% Drop in U.S. Housing PricesSource: Bloomberg - All Podcasts | 27 Feb 2009 | 3:23 pm Bhar Sees Gold Peaking at $1,100 an OunceSource: Bloomberg - All Podcasts | 27 Feb 2009 | 3:22 pm Sony centers power at top in StringerTOKYO -- Sony sent a message of change today in centering power in Chief Executive Howard Stringer, who will also become president and gain greater say over its core electronics business as Japan's iconic electronics maker tackles a painful global slump.Source: L.A. Times - Business | 27 Feb 2009 | 3:21 pm Stannard Sees European Economy Declining `Rapidly'Source: Bloomberg - All Podcasts | 27 Feb 2009 | 3:18 pm Bank ends Yankee Stadium sponsorship dealBank of America and baseball team the New York Yankees end talks about a major sponsorship deal.Source: BBC News | Business | World Edition | 27 Feb 2009 | 3:02 pm How Not to Advertise a Restaurant
Source: Business Pundit | 27 Feb 2009 | 2:58 pm If The Problem Is UsThis morning on the radio, Alex Blumberg and Adam Davidson reported on the inevitable pain for ordinary folks of saving the banks. In the report, Columbia Business School professor points out that U.S. consumer debt rose sharply between 2000 and 2008 (see chart). In 2007, it came to equal gross domestic product -- we owed as much as our entire economy was worth. The last time that happened? 1929. "The problem is us," Beim says. Evelyn Way heard the report and wrote: "It is a shame that we were told after 9-11 that it was out patriotic duty to shop and now we are being blamed for not living within our means." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 27 Feb 2009 | 2:54 pm This Week’s Weird Jobs
Sometimes, the most important part of a job posting isn’t what it says, but what it doesn’t say. For example, the people who need someone to do a “small job” on their door. You can only imagine what kind of pain that little understatement could result in: 1. Amsterdam: Honest Driver is needed
3. Pittsburgh: American Clothing Company Looking For Fresh Ideas We need graphic designers with ability to produce ideas and graphics with screen printing in mind. Highly experienced designers who demand a high hourly rate need not apply. This is a paying job, but it important to note we are a small company with a limited design budget. Respond for more details 4. Nationwide: US cable TV show wants to by your sports crash videos Fatal accidents OK, too, as long as they’re exciting to watch. 5. Berlin: Wood work Looking for someone able to do a small work to fix a door (wood work). Our dog chewed off the side of the door, and we need you to make it look square again. Nobody else could figure out how to do it. Just a small work, though, no problem. Really. Source: Business Pundit | 27 Feb 2009 | 2:52 pm Utilities Merger Looks More Promising (EXC, NRG)In mid-October, Exelon Corporation (NYSE:EXC) offered to acquire NRG Energy, Inc. (NYSE:NRG) in an all-stock deal at a fixed exchange ratio of 0.485 shares of Exelon stock for each share of NRG stock. The deal was worth about $6.2 billion at the time. Exelon is now in the driver’s seat. According to Exelon’s announcement, the extended expiration date on the offer “enables Exelon to focus on seeking regulatory approvals for the transaction and the solicitation of proxies for the election of NRG directors at the NRG annual meeting of shareholders.” NRG has not yet scheduled its annual meeting, but Exelon is clearly ready to play hardball the minute NRG announces a date. Maybe that’s why no meeting is scheduled yet. Paul Ausick       Source: 247 Wall Street | 27 Feb 2009 | 2:51 pm Worse Than We ThoughtFridays often bring a flood of economic numbers -- lately, most of them are awful. Today, we also have lots of news. Economy shrinks at fastest pace in 25 years: The government first estimated the fourth-quarter contraction as an annualized 3.8 percent. Economists expected that to be revised to 5.4. The final number: 6.2. Youch! Government to take bigger stake in Citigroup: The U.S. will get as much as 36 percent of the corporation, with Citigroup converting up to $25 billion of the government's $45 billion in preferred stock to common stock. This makes Citigroup look better by upping its level of "tangible common equity." Plus: President Barack Obama has turned in his first budget -- with its $1.75 trillion deficit. The Washington Post calls it "eye-popping." If you're thinking about national debt, you might start with "National Debt for Beginners," a primer from Simon Johnson and James Kwak of Baseline Scenario. National debt is a tough nut, a long debate, but here's the gist from Johnson and Kwak: [T]he short answer to the question of how much debt is sustainable is simple: We don't know. If we were close to the edge of some fiscal cliff, the market would warn us, under ordinary circumstances. But these are not ordinary times: Due to the upheaval in all markets, there is a level of demand for Treasuries that is . . . how shall we put this . . . probably not justified by economic fundamentals, and as a result market signals don't work as well as they should. Right now, the markets are saying that the U.S. government is as good a place to lend money as any and are implicitly giving us time to sort out our fiscal problems. At what point that will change, though, no one can predict. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 27 Feb 2009 | 2:47 pm Bill Ackman Talking With Target (TGT) About Board Seats; Sold Call OptionsIn an amended 13D filing on Target (NYSE: TGT), Bill Ackman’s Pershing Square Capital, a 7.8% shareholder, disclosed they are currently engaged in discussions with the company regarding the consideration by the Board of Directors of certain candidates proposed by the hedge fund as directors. Tagged: TGT      Source: 247 Wall Street | 27 Feb 2009 | 2:10 pm Economy shrinks even more than expected in 4th quarterThe economy contracted at a staggering 6.2 % pace at the end of 2008, the worst showing in a quarter-century.The economy contracted at a staggering 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession. Source: L.A. Times - Business | 27 Feb 2009 | 1:55 pm Iberia profits see 90% nosediveSpanish airline Iberia, in merger talks with British Airways, says 2008 profits fell by 90%.Source: BBC News | Business | World Edition | 27 Feb 2009 | 1:38 pm
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We already noted what is happening on the General Electric Co. (NYSE: GE) dividend. The company’s plans to save $9 billion from the $0.31 dividend cut being taken down to $0.10 is much more than what we were expecting. We expected “only” a cut by half. But what we want to review here is what we expect to occur from here. There are many more issues that could be coming down the pipe.
Mosaic Co. (NYSE: MOS) was lost in the financial shuffle today. Perhaps it should not have been. There was a severe volume and price move. A review of the stock had this one up 8.5% at $43.05 today on what is actually more than double the normal volume. And options were extremely active too.
Apple Inc. (NASDAQ: AAPL) has taken an interesting action. It could be a completely harmless one, but in today’s climate of convicting companies and individuals before there is even a trial it could raise some eyebrows. The company has changed auditors.
IberiaBank Corp. (NASDAQ: IBKC) is a small regional bank which we have hardly ever covered. But we wanted to take a chance to outline the community bank. This was not among the community banks that 
Citigroup (C) Government will take a 36% share. Drops to $1.42 from 52-week high of $27.35.
Unfortunately, the ratings agencies still have some who rely upon what they say. That is still the case when it comes to General Electric Co. (NYSE: GE) and its triple-A rating. Now that the company has formally cut the dividend, Moody’s is updating its review of the company.
General Electric Co. (NYSE: GE) is finally cutting its dividend. We predicted this over and over, and it has finally come to fruition. We said that a cut in half could 
