Palm Share Remarketing Effort Overhang (PALM)


Palm, Inc. (NASDAQ: PALM) stock is indicated lower on word from the company that it is exercising its right to re-market approximately 18.5 million common shares underlying 49% of the units of Series C preferred stock and warrants which were acquired by Elevation Partners in January 2009.

Elevation Partners will recoup the $49 million originally paid, and it expects to use those funds to purchase shares of Palm’s common stock in the offering at the public offering price.

If this remarketing is completed, Palm will receive all net proceeds in excess of $49 million and the funds will be used to strengthen Palm’s working capital position and to bolster its ongoing development program.

The underwriters will also have the right to purchase an additional 2.8 million common shares from Palm to cover over-allotments, if any.

Shares were originally down almost 8% at $5.67 in pre-market trading, but shares are down about 6% at $5.80 now on last look.

JON C. OGG

Tagged: PALM


Source: 247 Wall Street | 9 Mar 2009 | 12:51 pm

Opening Bell: 03.09.09

Picture 840.pngMadoff Aide Allegedly Got Fake 'Tickets' of Trading (WSJ)
"A longtime aide to disgraced financier Bernard Madoff instructed two assistants to generate trading tickets, now believed to be bogus, for Mr. Madoff's investing clients, according to information the assistants gave the government in the investigation.

The assistants told prosecutors that their supervisor, Annette Bongiorno, a four-decade veteran of the Madoff firm, would ask them to research daily share prices for blue-chip stocks from the previous month or several months, according to a person familiar with their statements.

A longtime aide to disgraced financier Bernard Madoff instructed two assistants to generate trading tickets, now believed to be bogus, for Mr. Madoff's investing clients, according to information the assistants gave the government in the investigation."

AIG Warned Failure Would Cripple World (Bloomberg)
I can appreciate this strategy, as it's based on inciting fear. Basically, you just convince whoever the target is that the free world will end unless they do exactly what you tell them, and then you take their money. Well, except in this case I'm not sure it's not true - still a fun game.

"AIG warned of turmoil around the globe if the government allowed the insurer to fail, adding "it is questionable whether the economy could tolerate another shock to the system that a failure of AIG would produce." The value of the U.S. dollar might fall, Treasury borrowing costs could rise and the agency would face "doubts about the ability of the U.S. to support its banking system," according to the presentation, parts of which were reported earlier by the New York Times."

Exxon Aims For Bigger Role In Iraq's Oil Sector (Reuters)
The title pretty much says it all: Exxon is looking for a bigger role in the Iraq oil scene post-conflict. This isn't anything new; it's actually what has (thus far) kept the price of gasoline under $8 a gallon.

Blankfein Kind Of Stands Up To Nationalization (CNBC)
"Goldman Sachs' chief executive said he opposed the full nationalisation of banks, but thought government stakes could be sensible in extreme situations, in an interview with German weekly Welt am Sonntag.

"I don't think that nationalisation is a good solution. It is decisive that the financial system is being stabilised and governments have to act in a pragmatic manner," Lloyd Blankfein was quoted as saying.

"In extreme situations, it can be meaningful when the government takes a stake. However, full control should be avoided," he added."

Credit Markets Show Signs Of Re-Freeze (WSJ)
Administrative policy has the debt people worried the current sway towards intervention will have an effect on their right to collect assets if the borrower fails - thus there's been a slight tightening in the credit markets of late.

"Short-term credit markets are still performing better than they did last year thanks to government programs to buy commercial paper and guarantee short-term debt. But Libor, the London interbank offered rate, a common benchmark interest rate, has crept up over the past weeks, from 1.1% in mid-January to 1.3% on Friday, reflecting banks' concerns about being paid back for even short-term loans. It is still well below its peak of 4.8% last October."

BNP To Buy 75% of Fortis (MarketWatch)
"BNP and Belgium reached the new agreement before a Friday midnight deadline, with France's biggest bank now set to buy 75% of Fortis Bank NV -- the group's Belgian banking business -- and to take control of its Luxembourg bank outright, all for 2.88 billion euros ($3.64 billion) in stock."



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Source: Dealbreaker | 9 Mar 2009 | 12:50 pm

Merck to buy Schering-Plough for $41.1 billion (Reuters)

Reuters - Merck & Co Inc said on Monday that it would acquire Schering-Plough Corp for $41.1 billion, uniting the makers of cholesterol drugs Zetia and Vytorin in the second megadeal for Big Pharma in weeks.
Source: Yahoo! News: Business | 9 Mar 2009 | 12:43 pm

Clive Cowdrey: profile of Resolution founder

Clive Cowdrey the founder of Resolution who is being investigated by the FSA is a golden boy of the insurance sector.
Source: Telegraph Finance | 9 Mar 2009 | 12:43 pm

McDonald’s (MCD) Defies Gravity, Again


ronaldmcdonaldSomeone needs to tell McDonald’s (MCD) that there is a recession. The company posted remarkable same-store sales again in February.

After making an adjustment for the different number of days in the month this year and last, MCD comparable sales were positive for all segments and global comparable sales were up approximately 5.4%.

U.S. numbers increased by 6.8% on the same basis.

It seems people will still go out to eat if the food is cheap enough.

Douglas A. McIntyre

Tagged: MCD


Source: 247 Wall Street | 9 Mar 2009 | 12:42 pm

Oil price hits six-week peak on OPEC prospects

Oil prices hit a six-week high in New York on Monday on expectations that the Organization of Petroleum Exporting Countries will decide to cut output further this week, analysts said. ...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:33 pm

When Left Alone, Recessions Correct On Their Own


John Tamny  RealClearMarkets

Banking giant JPMorgan Chase announced Feb. 23 that it would be cutting its quarterly dividend by 87% to a nickel per share. At face level, this sounds bad, but the savings will speed the process by which it repays TARP funds in order to avoid problematic government oversight; plus, the extra capital cushion puts the firm in a better position to make acquisitions of flagging competitors, should difficulties in the banking sector drag on.

The JPMorgan example is important for reminding us that both individuals and companies frequently respond to economic difficulty in ways that ensure recessions are short-lived. To put it simply, when left alone, recessions tend to correct themselves.

Read more….


Source: 247 Wall Street | 9 Mar 2009 | 12:32 pm

Buffett says economy fell off cliff (Reuters)

Reuters - Warren Buffett said on Monday the U.S. economy had "fallen off a cliff" but would eventually recover, although a rebound could kindle inflation worse than that experienced in the late 1970s.
Source: Yahoo! News: Business | 9 Mar 2009 | 12:31 pm

Should You Chase Stem Cell Stocks? (ASTM, CYTX, GERN, NBS, OSIR, STEM, KOOL)


money-stack-image15We are seeing massive gap-ups this morning in stem cell stocks.  President Obama is signing an executive order which will lift the Bush ban on funding of embryonic stem cell funding.  What is interesting here is that this is not really new news other than the timing and the formality.  The following prices are as of 8:19 AM EST.

  • Aastrom Biosciences, Inc. (NASDAQ: ASTM) +87% at $0.62
  • Cytori Therapeutics, Inc. (NASDAQ: CYTX) +38% at $3.20
  • Geron Corporation (NASDAQ: GERN) +29% at $4.99
  • Neostem, Inc. (AMEX: NBS) NOT TRADED
  • Osiris Therapeutics, Inc. (NASDAQ: OSIR) NOT TRADED…. in pact with Genzyme, but for adult stem cells.
  • StemCells Inc. (NASDAQ: STEM) +55% at $2.15
  • Thermogenesis Corp. (NASDAQ: KOOL) +41% at $0.57

Many of these stem cell stocks will trade more on a “vote of confidence” rather than over what this means as far as “new news” is concerned.

JON C. OGG

Tagged: ASTM, CYTX, GERN, KOOL, NBS, OSIR, STEM


Source: 247 Wall Street | 9 Mar 2009 | 12:29 pm

Gov. to sign smoking ban in Marlboro's home Va.

The home state of Marlboro and the world's largest cigarette factory is set to ban most smoking in restaurants and bars. Gov. Tim Kaine plans to sign legislation on Monday in Virginia...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:27 pm

Toyota planning new UK cutbacks

Toyota is finalising plans for fresh cutbacks in production at its UK factories as it seeks to cut costs, the BBC learns.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 12:25 pm

Texas Instruments CEO pay falls 6.6 percent

Much of the compensation for Richard K. Templeton came in stock options that currently have little value. Templeton's salary was $960,780, up 3 percent from 2007 to reflect an expected
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:17 pm

Capital One cuts dividend by 87%

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 12:17 pm

UPDATE 1-CF Industries rejects Agrium's bid

NEW YORK, March 9 (Reuters) - U.S. fertilizer maker CF Industries said on Monday its board has reaffirmed its intention to buy Terra Industries, while also rejecting an unsolicited bid from rival Agrium...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:10 pm

Financial Planners on the Couch (BusinessWeek Online)

BusinessWeek Online - Opened up your retirement savings plan lately? Forget the old quip about a 201(k). A 101(k) seems more apt. The value of your home is down. Your savings have shrunk. And for this you paid thousands to a financial planner?
Source: Yahoo! News: Business | 9 Mar 2009 | 12:08 pm

Stock Markets: When Will the Bull Return? (BusinessWeek Online)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)BusinessWeek Online - The stock market is crashing -- slowly, and in plain view of the people who count on it most. The 53% plunge in the Dow Jones industrials since October 2007 has wrecked the college- and retirement-savings plans of millions of investors. It has permanently lowered the long-term investment projections of private endowments and pension funds. It has sent corporate compensation experts scrambling to figure out how to reward top employees. All told, more than $10 trillion of stock market wealth has vanished, and with it the confidence that springs from financial security.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 12:08 pm

World stocks spiral lower on fresh financial woes

World stock markets fell sharply Monday as banking and economic woes returned to haunt investors, with Tokyo tumbling to a fresh 26-year low and London striking six-year depths. European
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:03 pm

Icelandic bank loses independence

The last major independent Icelandic bank is taken over by the country's financial authorities and closes for business.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 12:02 pm

World stocks spiral lower on fresh financial woes (AFP)

Pedestrians walk past a share prices board in Tokyo. World stock markets fell sharply Monday as banking and economic woes returned to haunt investors, with Tokyo tumbling to a fresh 26-year low and London striking six-year depths.(AFP/Yoshikazu Tsuno)AFP - World stock markets fell sharply Monday as banking and economic woes returned to haunt investors, with Tokyo tumbling to a fresh 26-year low and London striking six-year depths.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 12:01 pm

UPDATE 3-Merck to buy Schering-Plough for $41.1 billion

* Deal offers 34 pct premium for Schering-Plough holders
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:00 pm

UPDATE 3-Merck to buy Schering-Plough for $41.1 billion

* Deal offers 34 pct premium for Schering-Plough holders
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:00 pm

Duff & Phelps Closed-End Funds Obtain $1.19 Billion in Credit Facilities to Provide Liquidity for Auction Market and Remarketed Preferred Securities

CHICAGO, March 9 /PRNewswire-FirstCall/ -- Two closed-end funds advised by Duff & Phelps Investment Management Co. announced today that they have arranged for credit...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 12:00 pm

Stock futures drop as bank woes eclipse drug firms deal (Reuters)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)Reuters - Stock futures signaled Wall Street could hit fresh 12-year lows at the open on Monday as a lack of confidence in steps to shore up ailing banks persists, offsetting news of a $41 billion drug sector takeover.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 11:58 am

Stock futures drop as bank woes eclipse drug firms deal (Reuters)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)Reuters - Stock futures signaled Wall Street could hit fresh 12-year lows at the open on Monday as a lack of confidence in steps to shore up ailing banks persists, offsetting news of a $41 billion drug sector takeover.



Source: Yahoo! News: Business | 9 Mar 2009 | 11:58 am

McDonald's Global Comparable Sales Rise in February

OAK BROOK, Ill., March 9 /PRNewswire-FirstCall/ -- McDonald's February comparable sales results were as follows: -- Global comparable sales increased 1.4%...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 11:58 am

IFMR Capital and Equitas Conclude First-Ever Rated Securitisation of Micro Loans in India

MUMBAI, March 9 /PRNewswire/ -- In a path breaking deal in the micro-finance sector, IFMR Capital and Equitas Micro Finance India Pvt Ltd (Equitas) have completed the...
Source: RSS feed - channel BNewsBusiness | 9 Mar 2009 | 11:56 am

Drug firms in $41bn giant merger

Merck is to buy rival Schering-Plough in a $41.1bn deal, creating one of the world's biggest drug companies.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 11:54 am

Dreary start seen for stocks

U.S. stocks were set to open lower Monday as the global economic crisis continued to cast a pall on world markets.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 11:53 am

Merck to buy Schering-Plough for $41bn$

Merck has agreed to buy Schering-Plough for $41.1 billion ($£30 billion) in a deal that will create a cholesterol drug powerhouse with combined revenues of $47 billion.$
Source: Latest Business News from Times Online | 9 Mar 2009 | 11:51 am

Teen social networks Piczo and Stardoll in merger deal

Social networking website Piczo has merged with Stardoll a hugely popular website aimed at teenage girls that allows them to dress up virtual models.
Source: Telegraph Finance | 9 Mar 2009 | 11:51 am

Merck and Schering-Plough in $41B merger

Drugmaker Merck & Co. announced Monday that it has agreed to acquire rival Schering-Plough Corp. in a deal worth $41.1 billion.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 11:48 am

L'Oreal takes action against eBay

Cosmetics giant L'Oreal is taking online auction site eBay to court for selling fake versions of its products.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 11:45 am

Banking stocks lead world markets down again (AP)

A man looks at stock price monitor at a private securities company Monday March 9, 2009 in Shanghai, China. Chinese shares fell again Monday as investors took profits and waited for new government steps that might boost the market. The benchmark Shanghai Composite Index declined 74.26 points, or 3.4 percent, to close at 2118.75. (AP Photo/Eugene Hoshiko)AP - World stock markets fell Monday, with Japan's benchmark tumbling to a 26-year closing low, amid ongoing concerns about the length and depth of the global economic downturn and renewed fears about the financial industry following news the British government was taking a majority stake in another bank.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 11:45 am

Stocks set to open lower after Merck deal (AP)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)AP - Stock futures are lower Monday as a $41 billion deal between drugmakers Merck and Schering-Plough does little to jolt investors out of their pessimistic mood.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 11:42 am

Top 10 Analyst Upgrades & Downgrades (AMZN, BBY, KO, GENZ, HAL, IPI, RIG, AFL, PBR, VE)


These are some of the top pre-market early bird analyst upgrades and downgrades from Wall Street this Monday morning:

  • Amazon.com (AMZN) Raised to Buy at Piper Jaffray.
  • Best Buy (BBY) Raised to Outperform at William Blair.
  • Coca-Cola (KO) Raised to Outperform at Credit Suisse.
  • Genzyme (GENZ) Raised to Buy at Deutsche Bank.
  • Halliburton (HAL) Raised to Outperform at FBR.
  • Intrepid Potash (IPI) Raised to Outperform at Oppenheimer.
  • Transocean (RIG) Raised to Outperform at FBR.
  • AFLAC (AFL) Cut to Sell at UBS.
  • Petrobras (PBR) Cut to Neutral at JPMorgan.
  • Veolia Environment SA (VE) Cut to Underperform at Credit Suisse.

JON C. OGG

Tagged: AFL, AMZN, BBY, GENZ, HAL, IPI, KO, PBR, RIG, VE


Source: 247 Wall Street | 9 Mar 2009 | 11:42 am

Oil rises ahead of Opec meeting on supplies

Oil edged higher to almost $45 a barrel today amid mounting speculation that Opec may agree to trim its crude production at a meeting this weekend.$
Source: Latest Business News from Times Online | 9 Mar 2009 | 11:41 am

Merck to buy Schering-Plough for $41.1 billion

NEW YORK (Reuters) - Merck & Co Inc said on Monday that it would acquire Schering-Plough Corp for $41.1 billion, uniting the makers of cholesterol drugs Zetia and Vytorin in the second megadeal for Big Pharma in weeks.

Source: Reuters: Business News | 9 Mar 2009 | 11:33 am

Miami Herald owner to cut 1,600 jobs

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 11:33 am

Merck to acquire Shering-Plough for $41 billion

The companies are already partners in a pair of popular cholesterol fighters, Vytorin and Zetia.

WHITEHOUSE STATION, N.J. — Merck & Co. is buying Schering-Plough Corp. for $41.1 billion in stock and cash in a deal that gives the maker of asthma drug Singulair more firepower to compete in a drug industry facing slumping sales, tough generic competition and intense cost pressures.


Source: L.A. Times - Business | 9 Mar 2009 | 11:27 am

Merck to acquire Shering-Plough for $41 billion

The companies are already partners in a pair of popular cholesterol fighters, Vytorin and Zetia. WHITEHOUSE STATION,...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 11:27 am

Tiscali sale talks with BSkyB end

Internet provider Tiscali says talks with broadcast giant BSkyB over the sale of its UK assets have collapsed.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 11:26 am

Buffett says economy fell off cliff, fears inflation

NEW YORK (Reuters) - Warren Buffett said on Monday that the U.S. economy had "fallen off a cliff" and eventually would recover, although a rebound could rekindle inflation worse than experienced in the late 1970s.

Source: Reuters: Business News | 9 Mar 2009 | 11:24 am

Merck buys Schering-Plough for $41bn

The US pharmaceutical group unveiled an agreed $41bn takeover of Schering-Plough, in a deal which will substantially strengthen Merck's products pipeline at a time of growing pressure on existing products
Source: Financial Times - US homepage | 9 Mar 2009 | 11:23 am

Roche seen sealing Genentech deal after upping bid

ZURICH (Reuters) - Roche Holding AG looks likely to seal a deal to buy out U.S. biotech group Genentech Inc , analysts said on Monday, after the Swiss drugmaker upped its offer to $45.7 billion.

Source: Reuters: Business News | 9 Mar 2009 | 11:18 am

Oil rises on possible OPEC supply cuts

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 11:09 am

Merck buys ScheringPlough in 41bn deal

Merck ? Co has agreed to buy rival US drugmaker ScheringPlough for 41.1bn £29bn in cash and shares to get a larger experimental pipeline and drugs unhindered by expiring patents.
Source: Telegraph Finance | 9 Mar 2009 | 11:09 am

Driving a bargain: Most car for your money

Given the ongoing state of the economy, hearing about automotive bargains may be cold comfort. But if you are in the position to pick up some new sheet metal, there has never been a better time.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 11:07 am

Modular Windows plan 'welcomed'

Moves to introduce modular features in Windows 7 are welcomed by the European Commission's former monitoring trustee.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 11:03 am

Global equity sell-off amid economic gloom (Reuters)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)Reuters - World stocks sank toward 14-year lows in a broad-based sell-off on Monday, dragged lower by economic gloom in Europe and Asia, where Japan recorded its largest current account deficit on record.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 11:02 am

BP excludes Lord Browne from share bonus scheme

BP's board decided not to allocate any shares to former chief executive Lord Browne after his controversial departure from the group.
Source: Telegraph Finance | 9 Mar 2009 | 10:52 am

Coffee taster's tongue worth £10m

International chain Costa Coffee insures the tongue of its chief taster, Gennaro Pelliccia, for £10m ($13.95m).
Source: BBC News | Business | World Edition | 9 Mar 2009 | 10:50 am

Stock market: Opportunity of a lifetime or priced for a depression?

Diary of a private investor: Some shares - in good defensive companies - seem cheap. But the economy could be falling so fast that the market has got the price right.
Source: Telegraph Finance | 9 Mar 2009 | 10:45 am

McClatchy to cut 1,600 jobs

NEW YORK (Reuters) - U.S. newspaper publisher McClatchy said on Monday it would cut 1,600 jobs, or about 15 percent of its workforce, in an attempt to deal with the faltering economy and a decline in advertising revenue.

Source: Reuters: Business News | 9 Mar 2009 | 10:42 am

Merck’s (MRK) New Merger, Another Way To Save Money


cammonopoly_wideweb__430x32506Merck (MRK) is merging with Schering-Plough (SGP) in a deal that the companies say is worth $41.1  billion. In reality, Merck is making an acquisition. Its shares will be the currency to compete the deal and its CEO will run the new company.

No matter what they two companies have to say about “synergy”, the deal is based on saving money in a rough economy and in a world where Big Pharma companies are losing many of their profitable drugs as their patents expire.

The two firms said that the marriage would strengthen the companies by putting together they drug portfolios and R&D. That is almost certainly clear. But, buried in the announcement is the announcement that the merger will save $3.5 billion a year.

With Merck in a weakening position due to strong competition from generics and other Big Pharma companies fighting to keep their market shares, building a new company with lower costs is the key to the deal.

Douglas A. McIntrye

Tagged: MRK, SGP


Source: 247 Wall Street | 9 Mar 2009 | 10:25 am

EU backs IMF fund boost as Japan swings to deficit

BRUSSELS/TOKYO (Reuters) - The European Union is set to back an International Monetary Fund call for $500 billion to fight the global financial crisis, a document showed on Monday as Japan posted its first current account deficit in 13 years.

Source: Reuters: Business News | 9 Mar 2009 | 10:25 am

EU backs IMF fund boost as Japan swings to deficit (Reuters)

Reuters - The European Union is set to back an International Monetary Fund call for $500 billion to fight the global financial crisis, a document showed on Monday as Japan posted its first current account deficit in 13 years.
Source: Yahoo! News: Business | 9 Mar 2009 | 10:25 am

Lloyds says UK capital stance swayed asset decision

LONDON (Reuters) - Lloyds Banking Group said Britain's requirement for banks to hold enough capital to withstand a "severe" downturn was key to its decision to insure 260 billion pounds ($370 billion) of risky assets with the UK government.

Source: Reuters: Business News | 9 Mar 2009 | 10:19 am

Teathers jobs at risk after Straumur falls into Icelandic state control

The future of UKbased stockbroker Teathers is hanging in the balance after its owner StraumurBurdaras was taken into the control of the Icelandic government.
Source: Telegraph Finance | 9 Mar 2009 | 10:18 am

The high cost of expenses and emotions

You've heard it a million times: Investing expenses and errors can be costly to your long-term gains. But how much do they actually cost you? One way to think about it is in terms of how much money you'll be able to live on in retirement. The difference in your standard of living can be dramatic.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 10:16 am

US Wants Other Governments To Come Up With More Cash, Which They May Not Have


angrybear7The US is calling for other nations to put more money into their credit and financial systems to help pull the world out of a deepening recession.

One of the problems is that many countries may not have access to the capital they would need to pull their own weight.

According to the FT, “Lawrence Summers said the urgent need for a short-term increase in spending by governments temporarily overrode the longer-term goal of tackling the global imbalances many economists believe caused the financial crisis.”

It is not clear that the UK and EU nations can print money the way that the US Treasury can because they may not have the same access to global capital markets. As many nations sells more debt simultaneously the interest rates that they have to pay rises.

The limits to the ability of sovereign central banks and treasuries to raise cash may be at the heart of a breakdown in providing future stimulus. As the recession cuts into tax income and the need for spending on social services rises with unemployment some large countries may be faced with the fact that they have “too many mouths to feed” If the bailout dollars required to keep America out of a flat spin rise sharply from current levels even the world’s largest economy may not have access to trillions of dollars by tapping the debt markets through more sales of Treasuries.

The next hurdle to government stimulus packages in developed nations may be very simple. They may simply run out of money and lose the capacity to raise more.

Douglas A. McIntyre


Source: 247 Wall Street | 9 Mar 2009 | 10:12 am

Movers & Shakers: Monday's biggest gaining and declining stocks

Among the companies whose shares are expected to see active trade in Monday's session are AT&T, Elan, Genta, McClatchy, Merck, Northrop Grumman, Schering-Plough, Sterlite, Vedanta and Watson Pharma.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 10:12 am

Merck inks deal to buy Schering-Plough for $41.1 billion

Pharmaceutical giant Merck & Co., Inc on Monday says it will buy rival Schering-Plough for $41.1 billion in cash and shares to expand its presence in emerging markets and bolster its pipeline of potential new medicines.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 10:12 am

Swiss Re takes on Credit Suisse's Kielholz as chairman

ZURICH (Reuters) - Credit Suisse chairman Walter Kielholz relinquished his post at Switzerland's number two bank to become chairman of troubled reinsurer Swiss Re, which has turned to Warren Buffett for cash after a hefty loss.

Source: Reuters: Business News | 9 Mar 2009 | 10:10 am

London shares in the red (AFP)

Stocks in London dived after investors reacted to the government taking a majority stake in Lloyds Banking Group over the weekend.(AFP/File/Ben Stansall)AFP - Stocks in London dived on Monday after investors reacted to the government taking a majority stake in Lloyds Banking Group over the weekend.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 10:01 am

The AIG (AIG) “Save Us Or We Will Destroy You” Card


aig1Other companies that need federal bailouts should use the AIG (AIG) approach. It told the the government that if it did not get a large slug of money the global financial system would burn to the ground.

Impressive threat, and all the more powerful because it is probably true.

According to Bloomberg, “American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.”

That almost certainly means that AIG will get more money if it runs low on capital. It is also a illustration of the sword that every major financial firm in the US holds. These banks and insurers have a labyrinth of relationships that span the world. If they are forced to renege on significant obligations, the ripple effect would cause central banks outside American to put hundreds of billion of dollars in additional capital into the banks in their countries to protect them from the loses caused by the failure of a large US financial house.

And, it has come to that. The largest financial companies need to be saved in increments, day-by-day, week-by-week, and month-by-month. The money needs to be dripped in as it is needed. If the flow is interrupted the global financial system could still be shocked at a level which does not have a precedent.

Given the trillions of dollars that would be required to make the largest banks around the world whole with one set of investments by central banks, the need for financial  life support as a prophylactic could last for years.

Douglas A. McIntyre

Tagged: AIG


Source: 247 Wall Street | 9 Mar 2009 | 9:53 am

Stock index futures fall; economy in focus

(Reuters) - Dow Jones futures fell 2.2 percent by 0920 GMT (5:20 a.m. EDT) and S&P 500 futures were down 2.4 percent while Nasdaq futures were 2.0 percent lower, signaling that Wall Street would decline on Monday.

Source: Reuters: Business News | 9 Mar 2009 | 9:51 am

Comment: Work may not be an option for pension victims

Do you think you can't afford to retire? After a court ruling this week you may have no choice.
Source: Telegraph Finance | 9 Mar 2009 | 9:46 am

Takeda shares fall on fears over delay in drug's U.S. approval

Shares of Takeda Pharmaceutical trade sharply lower in Tokyo, with selling fueled by concerns that U.S. regulatory approval could be delayed for a key diabetes medication.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 9:45 am

FSA launches investigation into Resolution

Clive Cowdery and four other former directors at Resolution, the closed life funds consolidator, are being investigated by the Financial Services Authority over its £5 billiion sale more than a year ago to the pubs-to-pizza entrepreneur Hugh Osmond, it emerged today.
Source: Latest Business News from Times Online | 9 Mar 2009 | 9:44 am

Japan's exports halved in January

Japan imported more than it exported for the first time for 13 years in January, official figures show.
Source: BBC News | Business | World Edition | 9 Mar 2009 | 9:40 am

Asia Markets: Nikkei marks lowest close in 26 years

Japanese shares give up early gains to end lower Monday, with the benchmark Nikkei 225 Average marking its lowest closing level in at least 24 years as investors sell down financials and pharmaceutical shares amid a weak economic outlook.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 9:38 am

Hang Seng skids and Nikkei hits multi-year low in Asia

Most Asian markets register declines, with renewed economic gloom sending shares to a 26-year low in Tokyo, while HSBC Holdings plunges in Hong Kong as skittish investors dumped the stock ahead of the banking giant's rights issue.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 9:25 am

Africa next

Recession is about to hit the world's poorest
Source: BBC News | Business | World Edition | 9 Mar 2009 | 9:23 am

AIG warned of global turmoil before rescue: report

(Reuters) - American International Group Inc had warned of turmoil around the globe if the government allowed the insurer to fail when it appealed to U.S. regulators for its latest rescue, Bloomberg said citing an AIG presentation dated February 26.

Source: Reuters: Business News | 9 Mar 2009 | 9:20 am

AIG warned of global turmoil before rescue: report (Reuters)

A man stands in front of an AIG logo in Tokyo March 3, 2009. Japan's Nikkei stock average touched a four-month low on Tuesday but later pared losses to 1 percent, with banks such as Mizuho Financial Group down on fear about the U.S. financial system after AIG posted huge losses. REUTERS/Issei Kato (JAPAN)Reuters - American International Group Inc had warned of turmoil around the globe if the government allowed the insurer to fail when it appealed to U.S. regulators for its latest rescue, Bloomberg said citing an AIG presentation dated February 26.



Source: Yahoo! News: Business | 9 Mar 2009 | 9:20 am

A Depressing Assessment From The World Bank: The Truth About Global Economic Disparity


earth1Economists and public officials need to be optimistic about the economy. It they are too dour, they just encourage the public to think that they should be replaced.  Economists, after all, might be considered  a luxury in a down economy. Politicians who predict only hopelessness may be seen as ineffective stewards of their country’s finances.

So far, the great majority of analysts and world leaders have said that, while some nations will experience economic contractions this year, the world as a whole will continue to have aggregate GDP improvement. The usual argument is that the strength of large, emerging nations like China and India will offset trouble in the US, EU, UK, and Japan.

The World Bank is having none of it. According to The New York Times, “In a bleaker assessment than those of most private forecasters, the World Bank predicted that the global economy would shrink in 2009 for the first time since World War II.”

In the report, called “Crisis Reveals Growing Finance Gaps for Developing Countries”, the organization makes three critically important points. The first is that as developed nations like the US go into the debt markets to finance deficits, they crowd out smaller nations which have much worse debt ratings, effectively denying them access to the capital markets. The next problem is that poor nations will need to depend more on richer ones for items that are essential such as food and medical supplies. The last point is that global industrial production could be down as much as 15% by the middle of this year, compared with 2008, making the strength of the Chinese and Indian economies less dependable.

Taken together, the problems are a Rubik’s Cube without an apparent solution. Developed countries with falling GDP and shrinking industrial production may not have the financial resources to right their own economies, and may choose not to afford to help nations which have the unimaginable issues of feeding and housing their impoverished citizens.

The only immediate solution to this crisis would appear to be a form of global socialism where some portion of the money available though the debt markets to countries like the US and Japan would be funneled to nations like Cambodia and Ukraine.  But, recessions have tended to move nations toward Darwinism and away from generosity to those outside their own borders.

The World Bank message is simple but is likely to fall on deaf ears. The natural urge to protect one’s own country is likely to trump the act of giving, and getting around that is nearly impossible.

The fact that poor countries can and will be crushed under the wheel of the global recession makes one point extremely clear. There is no league of nations, nor has there ever been one, perhaps because the interests of the largest powers are too widely separated. Since there is no forum to address the issues that could undermine the future health of all countries, the current lack of cooperation becomes a form of fatalism.

The most convenient way for the developed nations to look at the global economic problem is that there is nothing that can be done to prevent some poor nations from disappearing.  Other third world nations will return to financial and business infrastructures prevalent decades ago.

It is almost certain that some of the weakest nations in the world will be destroyed by the current economic calamity. It is astonishing that no one in the developed countries has had the courage to speak this truth. That would at least give those countries, likely not to survive, the knowledge that no help is coming.  At least, then, they could desperately try find an alternative to outside aid.

Douglas A. McIntyre


Source: 247 Wall Street | 9 Mar 2009 | 9:19 am

Swiss Re names Credit Suisse's Kielholz as chairman

Swiss Reinsurance the world's secondbiggest reinsurer has appointed Credit Suisse's chairman Walter B. Kielholz to head its board of directors after losses that forced it to turn to Warren Buffett for capital.
Source: Telegraph Finance | 9 Mar 2009 | 9:18 am

Indications: U.S. stock futures fall as overseas markets retreat

U.S. stock futures lurch lower on Monday as selling continued in overseas markets, with the World Bank offering a pessimistic outlook on the global economy.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 9:13 am

Bank shares drag down FTSE 100

Banking shares fell sharply on Monday dragging the FTSE 100 down in early trading
Source: Telegraph Finance | 9 Mar 2009 | 9:08 am

Euthanizing The Fortune 500


empire1It is time for the Fortune 500 to go. It should not be published again after this year. The issue will be mailed to the magazine’s subscribers in about a month. The franchise has become an annual reminder of what is wrong with Fortune and other big business magazines. Not long ago, putting a list of the 500 largest US companies ranked by revenue was prestigious for both the publication and the corporations. Annual revenue numbers meant something. They really don’t any more. Now, the yearly ritual is a reminder of the weakness of print. It is tied to freezing data at a moment in time and holding it there for a year. Much of that data used to change slowly but now changes daily.

Taking an annual snapshot of large company’s financial information for a calendar year lost its usefulness several years ago when the data became available online. Some figures included in the list, like market capitalization, change every day and the public has easy access to those changes. Other data, like annual return to investors, may lose their value before the magazine comes out.

Of the top 54 companies on last year’s list, one out of eight have either become insolvent or are no longer in existence because of forced mergers due to the results of poor management. Now, ten months later, they are still on the list, at Fortune.com, which only serves to remind people how senseless the process is.

BusinessWeek, Fortune, and Forbes have lost a large amount of their advertising revenue because of the significant downturn in the budgets of print marketers. The publications compound their problems by having flagship editorial products that become quickly outdated lists. It serves as a reminder to the reader that a great deal of what these media do is obsolete.  This stale information, which is such a big part of Old Media business magazines, makes it easy for online sites like MarketWatch and Bloomberg to compete for the reader’s time. It demonstrates that magazines which often criticize corporations for refusing to change are killing their own businesses by hanging onto franchises which were valuable in the past but have almost no utility for their audiences now.

Magazines could turn what is a liability into an asset now that they have online editions. The Fortune 500 could become a living list that changes every day as the data on the companies do. The market cap rankings of each corporation should change every day, or instantaneously with every trade. Balance sheet and P&L data should not be for the last year, but for the trailing twelve months ending with the most recent quarter. Companies that fold or are taken over should come off the list the day of the event that changes their status. Changes in top management should happen the day that they are announced. Having Martin J. Sullivan listed as the CEO of AIG makes the content of Fortune.com outdated. Sullivan was thrown out months ago.

Killing the Fortune 500 would give readers the impression that the editors at Fortune had moved into the 21st Century. It would also allow them to replace the list with an alternative that would have real value.

Douglas A. McIntyre


Source: 247 Wall Street | 9 Mar 2009 | 9:06 am

Equality soon?

EU must take lead promoting women, commissioner says
Source: BBC News | Business | World Edition | 9 Mar 2009 | 9:05 am

London Markets: Banks help pull London shares back to 2003 levels

London’s top index falls to a fresh multiyear low on Monday, pressured by losses for many of Britain’s leading banks.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 9:00 am

Brit Insurance targets tax move to the Netherlands

Brit Insurance the Lloyds of London insurer is hoping to move from Britain to the Netherlands after pretax profits fell by 50pc on catastrophe claims and falling investment returns last year.
Source: Telegraph Finance | 9 Mar 2009 | 8:49 am

Japan account in first deficit since 1996

Japan’s current account plunged into its first deficit for 13 years in January, as the “irrational” strength of the yen obliterated the overseas profits of the country’s main exporters.
Source: Latest Business News from Times Online | 9 Mar 2009 | 8:39 am

Lloyds shares drop as government stake increases

Shares in Lloyds Banking Group drop around 14% in early trading Monday after the government takes a tough line on its asset insurance deal, leaving existing shareholders with an even slimmer stake in the struggling bank.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 8:24 am

Barclays shares plunge on Treasury debt talks

Shares in Barclays slid more than 10 per cent today before expected tense negotiations with the Government over whether it will receive taxpayer guarantees for its "toxic loans".
Source: Latest Business News from Times Online | 9 Mar 2009 | 8:23 am

Kielholz steps down at Credit Suisse

Walter Kielholz said on Monday he would step down as chairman of Credit Suisse, to concentrate his efforts on being the next chairman of Swiss Re.The move followed criticism that Mr Kieholz, currently...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 8:12 am

Europe Markets: Banks pressure as European shares drop again

European shares fell on Monday, after closing at fresh multi-year lows last week, with banks by far the worst performers as investors continued to fret about the health of the sector.


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 7:50 am

Australian stocks: Market slightly higher

SYDNEY - The Australian share market closed marginally higher, buoyed by the major miners, amid a quiet session because of the Victorian public holiday. At the 1615 AEDT close, the benchmark S&P/ASX200 index was up nine points,...
Source: New Zealand Herald - Business | 9 Mar 2009 | 7:15 am

Earnings Watch: Updates, advisories and surprises

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


Source: MarketWatch.com - Top Stories | 9 Mar 2009 | 7:01 am

'Watchmen' dominates movie box office

The adaptation of Alan Moore's graphic novel takes in an estimated $55.7 million, making it the biggest-opening film this year.

Dressed in skinny black jeans and rocker T-Shirts, teenagers Raven McGee and Charles Valencia were perusing comic books at a store in Glendale, capping what the two friends considered a perfect Saturday after seeing the superhero blockbuster "Watchmen."


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Why the world's biggest insurance company is still getting taxpayer funds

AIG is too interconnected to fail, some experts say. Its ties with other companies, markets and economies are so numerous that consequences of its collapse are unforeseeable.

To understand why federal officials keep pumping astronomical sums of money into companies such as insurance giant American International Group Inc., it might help to take a high-altitude view of the situation.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Developing nations' gains at risk in global recession

Needs exceed funds of multilateral lenders, World Bank reports. Concerns mount over political stability. The world...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

One layoff leads to another

A video game company lets go a writer, who then lays off his nanny, who stops visiting his barber, who can no longer afford the waitress' meals. ...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

Movies with 'legs' keep industry running strong

More hold up beyond debuts, helping box office race past last year.

Hollywood is witnessing a phenomenon it hasn't seen in more than a decade -- movies with legs.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Thousands of Charter Communications customers temporarily lose service

A severed fiber-optic cable shuts off Internet, phone and some TV service for subscribers in Pasadena, Glendale and Burbank for nearly five hours Sunday afternoon.

A severed fiber-optic cable shut off Internet, telephone and some television service for thousands of Charter Communications Inc. subscribers in Pasadena, Glendale and Burbank for nearly five hours Sunday afternoon.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Insurers' commitment to healthcare reform is only skin-deep

The industry claims to have had a change of heart, but its position hasn't changed at all.

The genius of modern marketing is pouring old material into new packaging. Over the years this has given us yogurt in tubes, prechopped salad greens in cellophane bags and, most recently, the health insurance industry's new image as a friend of reform.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Developing nations' gains at risk in global recession

Needs exceed funds of multilateral lenders, World Bank reports. Concerns mount over political stability.

The world is falling into the first global recession since World War II as the crisis that started in the U.S. engulfs once-booming developing nations, confronting them with massive financial shortfalls that could turn the clock back on poverty reduction by years, the World Bank warned Sunday.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Economic, corporate data hold little Wall Street sway

Fear and pessimism are ruling, and investors are looking for a better market mood and any sign of a bottoming. ...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

Economic, corporate data hold little Wall Street sway

Fear and pessimism are ruling, and investors are looking for a better market mood and any sign of a bottoming.

The weekly calendar holds little meaning on Wall Street these days.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

Middle managers more in demand but less secure

They are the glue that holds organizations together, but they have lost their loyalty to their companies. Reports...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

Why the world's biggest insurance company is still getting taxpayer funds

AIG is too interconnected to fail, some experts say. Its ties with other companies, markets and economies are so numerous that consequences of its collapse are unforeseeable. ...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

Movies with 'legs' keep industry running strong

More hold up beyond debuts, helping box office race past last year. Hollywood is witnessing a phenomenon it hasn't...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

Thousands of Charter Communications customers temporarily lose service

A severed fiber-optic cable shuts off Internet, phone and some TV service for subscribers in Pasadena, Glendale and Burbank for nearly five hours Sunday afternoon. ...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

In Taiwan, unpaid leave instead of layoffs carries its own cost

The practice gives workers some security but, over time, employee morale still suffers. There are cultural and practical reasons behind avoiding termination.

As California and the rest of the nation stagger from massive layoffs and soaring unemployment, companies in Taiwan have largely opted to cut pay and work hours to deal with the economic crisis.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

One layoff leads to another

A video game company lets go a writer, who then lays off his nanny, who stops visiting his barber, who can no longer afford the waitress' meals.

When customers sit beneath an intricate gold mural, order kung pao chicken and confide that they've just lost their jobs, waitress Alice Lau understands their hurt and fear. She's feeling the pinch too, as the repercussions of decisions made by others trickle down to her.


Source: L.A. Times - Business | 9 Mar 2009 | 7:00 am

'Watchmen' dominates movie box office

The adaptation of Alan Moore's graphic novel takes in an estimated $55.7 million, making it the biggest-opening film this year. ...
Source: RSS feed - channel BNPaperBusiness | 9 Mar 2009 | 7:00 am

NZ stocks: NZ market little changed

The New Zealand share market was little changed today in which there was a dearth of corporate news. The near-flat performance followed similar market performances overseas and brokers said it was a matter of waiting for confidence...
Source: New Zealand Herald - Business | 9 Mar 2009 | 6:30 am

Currency: Dollar steady ahead of OCR decision

The New Zealand dollar was little changed today ahead of the Reserve Bank of New Zealand's (RBNZ) interest rate decision on Thursday. By 5pm today the New Zealand was buying US50.25c from US50.31c at 8am and US50.16c at 5pm on...
Source: New Zealand Herald - Business | 9 Mar 2009 | 6:12 am

GM, banks' fate to keep investors on edge (Reuters)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)Reuters - With stocks mired in multi-year lows and the fate of General Motors and banks hanging in the balance, investors are unlikely to curb their flight from risk this week, putting Wall Street on track for another brutal sell-off.



Source: Yahoo! News: Stock Markets News | 9 Mar 2009 | 5:41 am

GM, banks' fate to keep investors on edge (Reuters)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)Reuters - With stocks mired in multi-year lows and the fate of General Motors and banks hanging in the balance, investors are unlikely to curb their flight from risk this week, putting Wall Street on track for another brutal sell-off.



Source: Yahoo! News: Business | 9 Mar 2009 | 5:41 am

Japan in record current account deficit

Japan's current account balance swung to its largest deficit on record in January, with the income surplus tumbling about a third from a year earlier, as the global recession crushes export demand and income from overseas investments
Source: Financial Times - US homepage | 9 Mar 2009 | 5:39 am

Tax Tips: Borrowing From Uncle Sam (Tax Tips)

WORRIED THAT YOU don't have enough cash to pay your tax bill this year? Well, the worst thing you can do is miss the deadline while you try to scrounge up the money. Rest assured that if you fail to file on time, Uncle Sam will get very cranky and smack you with combined interest rates and penalties that are along the lines of what you'd expect from, say, Tony Soprano.

A better course of action? Get a loan. And remarkably, Uncle Sam himself may be your best source. Generally speaking, the interest rates charged by the Internal Revenue Service are comparatively low and most people who apply for an IRS loan are granted one.

As Tony might say, here's what you're gonna do. First off, you should still file your 2008 return by April 15. Be sure to include Form 9465 (the Installment Agreement Request) with your return. On that form, you can suggest your own easy payment plan to the IRS. Assuming you owe less than $10,000 and are proposing to pay the total over 36 months or less, it's virtually automatic the IRS will accept. (The exception is when you haven't been current on your taxes during the last five years, in which case the IRS may be less than enthusiastic about agreeing to a deferred-payment arrangement.)

Of course, paying late is going to cost you something. When you receive an approval notice (which should happen within 30 days), you'll be charged a one-time $52 setup fee (assuming you agree to automatic payments from your checking account). You'll also be subject to interest charged on your deferred payments (which is currently 5% annually, subject to quarterly adjustments), plus a "failure to pay" penalty of 0.25% a month. Together, those two charges equate to an 8% annual interest rate on your unpaid tax balance.

That may sound like a lot, but it's probably less than what you're paying on your credit cards. (Too many people look at that tax bill and figure they can just slap it on plastic.) Moreover, if you don't file at all, you'll face the outrageously expensive 5%-a-month "failure to file" penalty. It continues to accrue until it equals 25% of your unpaid tax balance. That's an awfully heavy price to pay when you could just apply for a loan.

Keep in mind, if you owe more than $10,000 with your 2008 return or will need more than 36 months to get caught up, the IRS will usually require you to fill out some financial disclosure forms. Still, the agency is generally pretty reasonable about agreeing to installment payment terms you can live with.

Borrowing From Estimated Taxes

If you are one of those lucky people who get to pay the tax man not once but four times a year, you too can borrow from Uncle Sam. As you probably know, estimated payments are the government's way of getting even with people when withholding from their paychecks (if any) doesn't come close to keeping up with what they owe. These are usually people who are one (or more) of the following: self-employed, earning a fair amount or more from taxable investments or taking withdrawals from tax-deferred retirement accounts. (Pay-ins for the 2009 tax year are due on April 15, June 15, Sept. 15 and Jan. 15, 2010.)

So what happens if you can't pay or can only afford a partial payment? To be honest, not much. You're simply charged interest on the shortfall, which currently is 5% annually (subject to quarterly adjustment). The only requirement is that you must catch up on your estimated payment obligations by April 15, 2010. Otherwise, the IRS starts piling a 0.5%-a-month penalty on top of the interest charge.

With an interest rate this low, not paying your estimated taxes offers a reasonable source for a short-term loan. After all, the interest rate is certainly much lower than what many commercial lenders and credit-card companies charge.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.


Source: SmartMoney.com | 9 Mar 2009 | 4:00 am

Stories of pain emerging from US heartland

In cubicles, factories and stores these days, anxious workers are trying to ease each other's economic fears with something akin to, "Well, at least we still have a job." Yet for many, that's becoming small comfort as more employers...
Source: New Zealand Herald - Business | 9 Mar 2009 | 4:00 am

Banks Offering Big Perks to Lure New Savers (Deal of the Day)

Skittish consumers are finally saving more money -- and now the banks are trying all sorts of gimmicks to get their hands on it, including offering some pretty nice upfront perks.

Americans socked away 5% of their disposable income in January, pushing the personal savings rate to a 14-year high, according to the Commerce Department. (To put that in perspective: from 2005 to early 2008, the quarterly personal-savings rate only once topped 1% -- and, at one point, even fell into negative 1% territory.)

“Everyone is running scared right now,” says Sam Gott, a San Antonio-based certified financial planner.

That fear could pay off. Hoping to lure newfound savers into their branches -- and bolster their own balance sheets -- some banks are offering sign-up bonuses of up to $100 and attractive rates that far surpass the current record-low fed funds rate of 0% to 0.25%.

Here’s how (and where) to dig up these bank deals:

Open a Reward Account

If you’re willing to jump through a few hoops, you could earn as much as 6% by opening a so-called reward account. To get that enticing rate, you’ll need to meet (and stick to) some strict requirements, including a set number of debit purchases each month, signing up for direct deposit and opting out of paper statements. Fail to stick to the plan and your rate will drop to less than 0.50%. (For more on how reward accounts work, click here /spending/deals/new-high-yield-accounts-come-with-plenty-of-restrictions-22679/.) Here are some of reward account deals currently being offered:
BankAPY (%)Details
Southern Missouri Bank (Missouri and Arkansas)6.01Make at least 12 debit-card transactions a month, and set up at least one direct deposit or automatic payment. Good on balances of up to $25,000.
Kansas State Bank (Kansas)6.01Make at least 10 debit-card transactions a month, receive statements electronically, and set up at least one direct deposit or automatic payment. You must also access your online account at least once a month. Good on balances of up to $25,000.
Rocky Mountain Bank (Montana)6.01Use your debit card, receive statements electronically, and set up at least one direct deposit or automatic payment. Good on balances of up to $25,000.
First Robinson Savings Bank (Indiana and Illinois.)6.01Make at least 10 debit-card transactions a month, receive statements electronically, and set up at least one direct deposit or automatic payment. Good on balances of up to $25,000.
Bank of Blue Valley (Kansas)5.51Make at least 12 debit-card transactions a month and set up at least one direct deposit or automatic payment. Good on balances of up to $25,000.
* Data from Money-rates.com

Bank Bonuses

To woo new customers, many banks are offering sign-on bonuses when you open a new checking or savings account. While big-name banks such as Citibank (C) and HSBC offer widely-promoted deals, local community banks and credit unions may also extend such bonuses, says Gott. Wainwright Bank & Trust in Boston, for example, currently offers a $200 savings bond for new customers who open a Value Checking account and fund it with at least $10. (You’ll need $500 in the account, however, to avoid a monthly maintenance fee.) Here are some more offers you can find:

BankBonusDetails Citibank$25Open and fund an Ultimate Savings Account with $1,000 by April 30. (The account carries a 2.10% APY). You must maintain the balance for three months to receive the bonus. Compass Bank$100Open a new Build-to-Order Free Checking account with a minimum deposit of $100 before March 21. You must also set up direct deposit and opt out of paper statements. HSBC$25 to $75Open either of two eligible checking accounts by March 31. Get $75 for opening an HSBC Plus Checking account with a minimum $1,500 deposit. (You must maintain a combined $15,000 in HSBC accounts to avoid a $15 monthly fee.) Or get $25 for opening an HSBC Choice Checking account with a debit MasterCard (MC) and a minimum $500 deposit. (You must maintain $1,500 to avoid the maintenance fee.) M&T Bank (MTB)$25 to $100Open and fund a new checking account by April 4. Bonus earned varies by account type. M&T Totally Free Checking earns $25, for example, while M&T Direct Checking (free when you sign up for direct deposit) yields $100. Wachovia$25Current customers: Entice a friend to open a Free Checking Account with a minimum deposit of $100, and you’ll each get $25. Offer expires December 31. * Data from individual banks.

Online-Only Savings Accounts

Don't want to jump through all the hoops of a reward account to get a better rate? Try going online where you can still snag an inflation-beating annual percentage yield of more than 2.5%, says Greg McBride, senior financial analyst for Bankrate.com. Here are some of the best yields currently being offered:

BankAPY (%)Details GMAC Bank (Midvale, Utah)2.65$1 minimum deposit to open, no minimum balance, no monthly service fees. Beverly National Bank Online (Beverly, Mass.)2.60$5,000 minimum deposit to open. Must maintain a balance of at least $5,000 to avoid a $15 monthly maintenance fee. Heartland Bank Direct (St. Louis, Mo.)2.55$500 minimum deposit to open, no minimum balance, no monthly service fees. Goldwater Bank (Scottsdale, Ariz.)2.49$1,500 minimum deposit to open. Must maintain a balance of at least $1,500 to avoid a $5 monthly maintenance fee. FNBO Direct (Omaha, Neb.)2.40$1 minimum deposit to open, no minimum balance, no monthly service fees. * Data from Bankrate.com

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.


Source: SmartMoney.com | 9 Mar 2009 | 4:00 am

Searching for Signs of a Rally (Tax Tips)

Everywhere investors looked this week there were reasons to be gloomy, whether it was AIG’s (AIG) $30 billion rescue package, the threat of a General Motors (GM) bankruptcy or a Department of Labor report that put the unemployment rate at 8.1%, the highest level in 25 years. Our pundits struggled to find any sense of clarity among those dismal headlines as they searched for signs of a rally.

These days market forecasting is a tough gig. Ed Hyman, whose ISI Group relies heavily on survey data, pointed to March 3 numbers that showed the rate of decline of the gross domestic product was actually slowing -- not a bottom, but a sign that one loomed. New economic numbers released a few days later -- in combination with the 8.1% unemployment rate -- had him revising his prognosis. We “do not suggest a moderating rate of decline in GDP,” his Thursday report said.

Needless to say, it’s easy to see why experts like Hyman may be drained from following this economic downturn. As markets plunged to levels not seen since 1996, Charles Schwab chief strategist Liz Ann Sonders wrote on March 2 that investors should remember “market bottoms are processes over time, not moments in time.” Sonders says today’s market has echoes of 2002, when it hit lows in July, rallied and sold off to its ultimate October lows, then rallied again and declined to the pre-Iraq war lows of March 2003. “The pressure on the market currently feels a lot like 2002-2003, when every speckle of hope was dashed and the cycle of negativity continued,” she wrote.

Government policies are a major overhang on stocks. The policy responses aren’t coming through clearly or quickly enough to reassure investors, LPL Financial strategist Jeffery Kleintop wrote on March 2. “Market participants are unhappy to have to wait for specifics.” This week details about the Homeowner Affordability and Stability Plan were released. However, questions still remain about other programs.

Until investors get answers, volatility will continue. Indeed, Thomas Lee, a U.S. strategist for J.P. Morgan Chase (JPM), recently withdrew his buy recommendation on the S&P 500 after the index plunged past his stop-loss point of 725. There is no doubt equities are oversold, he wrote, but the more glaring question is: Where is the next catalyst? “Washington has not proven to be the cavalry expected,” he says. “Perhaps because populist notions of income redistribution have overshadowed impressive accomplishments like $790 billion in fiscal stimulus, TARP II and TALF, all of which should benefit the economy in the second half.”

If that’s the case, stocks tend to rally six months before the economy does, which would portend a rebound in the near future, right? Barry Knapp, U.S. strategist at Barclays, wrote Monday that timing a rally down to the day simply won’t be possible until the policy and panic fog clears a bit. “In our view, it’s just too early for a rally,” he says. “However, conditions might be in place for that to happen around May.”

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.


Source: SmartMoney.com | 9 Mar 2009 | 4:00 am

Virgin's Branson says to return to mortgage finance (Reuters)

Reuters - Virgin Group will return to the mortgage market and obtain a license to operate a high street bank, the group's billionaire founder Richard Branson told the Times newspaper.
Source: Yahoo! News: Business | 9 Mar 2009 | 3:51 am

Virgin's Branson says to return to mortgage finance

LONDON (Reuters) - Virgin Group will return to the mortgage market and obtain a license to operate a high street bank, the group's billionaire founder Richard Branson told the Times newspaper.

Source: Reuters: Business News | 9 Mar 2009 | 3:51 am

Recovery to be 'slow and fragile'

Economic recovery, when it comes, will be slow and fragile - not a swift return to normal in the sense of conditions prevailing before last year's crash. That was the warning from several economic commentators last week. AXA...
Source: New Zealand Herald - Business | 9 Mar 2009 | 3:30 am

Farmers getting 'raw deal' from banks

Federated Farmers today attacked banks for not passing on all the recent cuts in wholesale and official interest rates to farmers' overdraft rates, saying banks appear to be offering much lower home mortgage rates at the expense of...
Source: New Zealand Herald - Business | 9 Mar 2009 | 3:00 am

Nuplex calls in advisers

Nuplex Industries has named three advisers to help consider the terms of its debt and the need to raise capital, and expects to them to report within days. The maker and marketer of speciality resins and chemicals said Bancorp...
Source: New Zealand Herald - Business | 9 Mar 2009 | 2:30 am

Building slump accelerating, say new figures

The slump in house building continued for a fifth consecutive quarter in the three months to December and the decline is accelerating, new Statistics New Zealand (SNZ) figures show. In the latest quarter the volume of residential...
Source: New Zealand Herald - Business | 9 Mar 2009 | 2:00 am

Summers: Global growth coordination needed

World leaders need to pump more money into the economy in a coordinated effort to boost demand and pull the world out of recession, the White House's chief economic adviser said Monday.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 1:08 am

Need to know: Greggs results ... Orange partnership ... GM sales

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 9 Mar 2009 | 1:00 am

My business failed. What can I write off?

f your company went under, you can salvage some of the losses when you file your taxes.
Source: Business and financial news - CNNMoney.com | 9 Mar 2009 | 12:40 am

BofA withdraws job offers to foreign MBAs

Bank of America has pulled job offers made to some MBA students, citing conditions laid out in its bail-out deal as the reason
Source: Financial Times - US homepage | 9 Mar 2009 | 12:07 am

Brown cannot shirk the blame for Lloyds

Some years ago I served on the board of a well-run bank, with a traditional view of the way to avoid bad debts. I learnt that we should not take any step without first looking at the books. That is “due diligence” and is the essential safeguard. We now know that Lloyds Bank bought Halifax Bank of Scotland after only a cursory view of the books; little or no “due diligence” occurred.
Source: Latest Business News from Times Online | 9 Mar 2009 | 12:00 am

De Beers stops mining diamonds in Botswana

De Beers, the diamonds group, has halted production in Botswana, the world's largest producer of diamonds by value, because Russia's nouveau riche can no longer afford to spend so much on the precious stones.
Source: Latest Business News from Times Online | 9 Mar 2009 | 12:00 am

British beef, reduced salt, lower sugar, free range eggs, roast coffee — is this really McDonald's?

Pity poor Steve Easterbrook. The boss of McDonald's UK has just presided over the company's most successful year since it opened its first outlet in Woolwich in 1974, achieving double-digit like-for-like sales growth — but all anybody wants to talk about is the salt content of its fries and child obesity.
Source: Latest Business News from Times Online | 9 Mar 2009 | 12:00 am

When cutting your cloth to fit a new, bleaker economic fashion, size still matters

Derek Lovelock thought that he had learnt his lesson. As a survivor of the implosion of Sears, once Britain's biggest fashion conglomerate, he swore that never again would he take on a group with more than five chains.
Source: Latest Business News from Times Online | 9 Mar 2009 | 12:00 am

Plunging assets cost $50,000bn

Falls in the value of financial assets worldwide may have reached more than $50,000bn, equivalent to a year's global economic output, warns the Asian Development Bank
Source: Financial Times - US homepage | 8 Mar 2009 | 11:31 pm

Greenberg attacks US over AIG

Hank Greenberg, the former chief executive of AIG, has accused the US government of bungling the insurer's rescue by imposing a high-interest loan and forcing the repayment of $30bn-plus to banks and partners
Source: Financial Times - US homepage | 8 Mar 2009 | 11:30 pm

NYSE Euronext launches trading platform

NYSE Euronext is to launch NYSE Arca Europe, an alternative trading platform for European investors while US group Pipeline will unveil plans for a "dark pool" block trading system
Source: Financial Times - US homepage | 8 Mar 2009 | 11:30 pm

'Worst since World War 2' says bank

The World Bank predicts the global economy will shrink this year for the first time since World War II, and sees trade at its lowest point in 80 years. The World Bank also said today the growing global financial crisis will create...
Source: New Zealand Herald - Business | 8 Mar 2009 | 11:30 pm

GM agrees to concessions with Canadian workers

General Motors workers in Canada agreed to concessions that help clear the way for the struggling carmaker to receive billions of dollars in aid from the federal government and the province of Ontario
Source: Financial Times - US homepage | 8 Mar 2009 | 11:10 pm

Owen Hembry: Signs of a bounce but maybe not a trend

World dairy prices have tumbled from the highs of the past few years that pumped billions of welcome extra dollars into the economy. The price drop was not unexpected but the rate of descent was ear-poppingly fast and the question...
Source: New Zealand Herald - Business | 8 Mar 2009 | 10:40 pm

Timeline of Circuit City Stores Inc. (AP)

AP - A look at the history of consumer electronics retailer Circuit City Stores Inc.:
Source: Yahoo! News: Business | 8 Mar 2009 | 10:39 pm

Summers calls for boost to demand

Barack Obama's top economic adviser has urged world leaders to pump more public money into the economy in a co-ordinated effort to boost demand and lift the world out of recession
Source: Financial Times - US homepage | 8 Mar 2009 | 10:03 pm

Traders look past data to measure mood of market (AP)

An employee of the Tokyo Stock Exchange checks a monitor at the TSE in Tokyo, March 9, 2009. Japan's benchmark Nikkei stock index lost 57.91 points, or 0.81 percent, from Friday to end morning trade at 7,115.19. (AP Photo/Shuji Kajiyama)AP - The weekly calendar holds little meaning on Wall Street these days.



Source: Yahoo! News: Stock Markets News | 8 Mar 2009 | 8:45 pm

Is a New Financial Bloc Underway Between Japan, Europe, and US?

Breitbart reports:

Chief executives of leading banks from Japan, Europe and the United States will meet in London to discuss regulation of the financial sector, according to a report.

The British government will host the talks on March 24, ahead of an April summit of Group of 20 leaders, the Nikkei economic daily said, without naming sources. Invitations have been sent to the chiefs of leading institutions including US-based JPMorgan Chase and Co. and British bank HSBC, it said.

No confirmation of the report was available from the Japanese bank on Saturday. Leaders of the Group of 20 developed and developing nations are to get together in London on April 2.

Supervision of financial institutions is expected to be high on the agenda.

Who will supervise in this new world order? How much power does that entity have over the world economy? How does it enforce its laws, and where do violators get incarcerated? Though the full extent of the financial crisis remains unknown, one thing is almost certain: International regulatory bodies will become more powerful than ever.


Source: Business Pundit | 8 Mar 2009 | 7:57 pm

Seeds of its own destruction

Assumptions that prevailed since the 1980s embrace of the market lie in shreds. The era of free-wheeling finance is over. But the current crisis could have consequences that stretch much further
Source: Financial Times - US homepage | 8 Mar 2009 | 7:13 pm

Orszag promises better spending bill - next time

Facing mounting criticism of a spending package packed with billions of dollars in earmarks, the Obama administration made a vow Sunday: this president will bring a halt to pork-laden bills.
Source: Business and financial news - CNNMoney.com | 8 Mar 2009 | 6:57 pm

Hedge funds turn to gold

Investors are now buying gold as a way of betting against central banks
Source: Financial Times - US homepage | 8 Mar 2009 | 6:13 pm
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