Prison Prep: Shana Madoff Learning The (Soap On A) Ropes

Peter's wondering how he'll survive on only $10,000 a month, Ruth's jewelry shopping in Palm Beach and Andy and Mark Madoff are most likely off on a 6 month fishing trip funded by gal pal Bob Rubin, but at least one member of Ponzi Nation is facing facts. Shana Madoff, niece of Bernie and wife of former SEC employee Eric Swanson has apparently started getting worried about the fact that she "signed a lot of documents" in her role as a Madoff Securities compliance officer, which may result in some orange jump suit time. Resourceful girl she is, Shanala's enlisted the services of Larry Levine founder of Wall Street Prison Consultants, which, for $850, gives white collar criminals a "wake-up call" on how to act behind bars and secure early releases. Shana is said to have enrolled in Fed101, a course that covers, among other things:

Source: Dealbreaker | 13 Apr 2009 | 1:43 pm

Wall Street set for lower open

US equity markets were set for a lower open as investors prepare for a big week of earnings news and key economic data
Source: Financial Times - US homepage | 13 Apr 2009 | 12:52 pm

Express Scripts buys Wellpoint unit for $4.7bn

Wellpoint's NextRx subsidiaries provide pharmacy benefits management services to about 25m Americans and manage more than 265m adjusted prescriptions annually
Source: Financial Times - US homepage | 13 Apr 2009 | 12:44 pm

Express Scripts to buy WellPoint prescription unit

NEW YORK (Reuters) - Express Scripts Inc will buy health insurer WellPoint Inc's NextRx prescription business for $4.68 billion in a significant expansion for the large U.S. pharmacy benefit manager.
Source: Reuters: Business News | 13 Apr 2009 | 12:42 pm

Express Scripts to buy WellPoint prescription unit (Reuters)

Reuters - Express Scripts Inc will buy health insurer WellPoint Inc's NextRx prescription business for $4.68 billion in a significant expansion for the large U.S. pharmacy benefit manager.
Source: Yahoo! News: Business | 13 Apr 2009 | 12:42 pm

UPDATE 3-Express Scripts to buy WellPoint prescription unit

* Includes 10-yr contract to provide services to WellPoint
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:41 pm

Wall Street set for moderately lower opening (AP)

AP - Wall Street was poised for a moderately lower opening Monday as investors prepare for earnings season to begin in earnest and await new economic data that will provide more details on the struggling economy.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 12:40 pm

Fertilizer Mergers in the Backstretch (CF, AGU, TRA)

The proposed acquisition of CF Industries Holdings, Inc. (NYSE:CF) by Canadian firm Agrium Inc. (NYSE:AGU) is heading for the shareholders meeting on April 21st. CF Holdings has received an opinion from RiskMetrics Group, a risk management firm that now owns former Institutional Shareholder Services, supporting the re-election of CF’s three nominees to its board of [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 12:38 pm

GM preparing for possible bankruptcy, report says

The Treasury is directing GM to lay the groundwork for a bankruptcy filing by a June 1 deadline, the New York Times reports.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 12:36 pm

Asia closes mostly higher on upbeat lending data, resource gains

Asian markets close mostly higher Monday, with Shanghai getting a boost from upbeat lending data and gains in resource shares, while Indonesia rallied after successful elections.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 12:35 pm

Oil falls towards $51

LONDON (Reuters) - Oil fell to around $51 a barrel on Monday after the International Energy Agency cut deeply its forecast for oil demand, offsetting the impact of data showing Chinese crude imports rose to their second highest ever.
Source: Reuters: Business News | 13 Apr 2009 | 12:24 pm

Express Scripts to pay $4.7B for WellPoint units

Express Scripts has agreed to buy WellPoint's pharmacy benefits management business for $4.68 billion, the companies said Monday.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 12:23 pm

HSBC says considering sales of office buildings

HONG KONG (Reuters) - Europe's largest bank, HSBC Holdings , confirmed on Monday it was considering selling three of its major office buildings and said it had received interest from potential buyers.
Source: Reuters: Business News | 13 Apr 2009 | 12:21 pm

Shaky start seen for stocks

U.S. stocks looked set for a shaky start Monday as investors returning from a holiday weekend focused their attention on upcoming quarterly results.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 12:21 pm

Stock futures lower as investors await earnings (Reuters)

Reuters - Stock index futures pointed to a lower open on Monday as investors paused after a five-week rally to prepare for key company earnings later in the week, and braced for a potential bankruptcy filing from General Motors.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 12:20 pm

Stock futures lower as investors await earnings

NEW YORK (Reuters) - Stock index futures pointed to a lower open on Monday as investors paused after a five-week rally to prepare for key company earnings later in the week, and braced for a potential bankruptcy filing from General Motors.
Source: Reuters: Business News | 13 Apr 2009 | 12:20 pm

Stock futures lower as investors await earnings (Reuters)

Reuters - Stock index futures pointed to a lower open on Monday as investors paused after a five-week rally to prepare for key company earnings later in the week, and braced for a potential bankruptcy filing from General Motors.

Source: Yahoo! News: Business | 13 Apr 2009 | 12:20 pm

Action on AIG unit may cost taxpayers: report

(Reuters) - The controversy surrounding American International Group Inc's bonuses to employees could make the process of winding down the insurer's financial products unit more costly for taxpayers, the Wall Street Journal cited the unit head Gerry Pasciucco as saying.
Source: Reuters: Business News | 13 Apr 2009 | 12:20 pm

AP Poll: Taxpayers more frugal with refunds (AP)

AP - Most people say they plan to use this year's tax refund to pay bills, deciding in this sour economy to be more frugal with their annual windfall.

Source: Yahoo! News: Business | 13 Apr 2009 | 12:20 pm

Bailed-out banks face probe over fee hikes: report

(Reuters) - U.S. banks that received money under the Troubled Asset Relief Program (TARP) are facing a probe over increases in rates and fees, the Wall Street Journal said. The Congressional Oversight Panel, the body named by Congress to oversee the federal bailout, is working on a report examining instances of potentially inappropriate lending by banks that got taxpayer capital, according to the paper.
Source: Reuters: Business News | 13 Apr 2009 | 12:19 pm

GM told to prep for bankruptcy filing: report

WASHINGTON, April 12 (Reuters ) - The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday.
Source: Reuters: Business News | 13 Apr 2009 | 12:19 pm

Tech Mahindra wins bid to acquire Satyam (Reuters)

Reuters - India's Tech Mahindra will pay more than $500 million for a controlling stake in Satyam Computer Services Ltd , throwing a lifeline to the fraud-hit firm and propelling itself into the top tier of Indian outsourcing firms.
Source: Yahoo! News: Business | 13 Apr 2009 | 12:18 pm

Tech Mahindra wins bid to acquire Satyam

MUMBAI (Reuters) - India's Tech Mahindra will pay more than $500 million for a controlling stake in Satyam Computer Services Ltd , throwing a lifeline to the fraud-hit firm and propelling itself into...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:18 pm

Tech Mahindra wins bid to acquire Satyam

MUMBAI (Reuters) - India's Tech Mahindra will pay more than $500 million for a controlling stake in Satyam Computer Services Ltd , throwing a lifeline to the fraud-hit firm and propelling itself into the top tier of Indian outsourcing firms.
Source: Reuters: Business News | 13 Apr 2009 | 12:18 pm

Currencies: Dollar edges higher vs. yen; bank earnings awaited

The U.S. dollar edged higher versus the Japanese yen in thin holiday trading in Europe, with markets awaiting earnings news this week from major U.S. banks.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 12:17 pm

Tech Mahindra beats out rivals for Satyam stake

Tech Mahindra Ltd. was named the successful bidder for a one-third stake in Satyam Computer Services, effectively gaining control and likely catapulting it into the heavyweight league of software-services businesses.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 12:17 pm

The Drain of MBAs to Washington

John Tamny of RealClearMarkets In trying to explain why capitalism in the U.S. thrived in the late 19th and early 20th centuries, Austrian economist Joseph Schumpeter broke it down to the flow of talent. According to him, “the scheme of values that arose from the national task of developing the economic possibilities of [the U.S.] drew [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 12:16 pm

Bailed-out banks face probe: WSJ

The committee that oversees the government’s bailout programs is looking into whether banks that took taxpayer money to improve their balance sheets have since been raising interest rates and fees, according to The Wall Street Journal.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 12:16 pm

Opening Bell: 04.13.09

Stress Tests Meet Earnings (Bloomberg)
With earnings for some (now most?) of the major banks coming in the next week/two and the results of the stress tests coming shortly thereafter, there's going to be a bit of a battle between numbers, as it were. As fair-value isn't an issue any longer it's going to be near impossible to accurately assess holdings, which is a definite mark against earnings reports. On the other hand, the "stress-test" has politics written all over it, and chaos theory hasn't developed enough to be modeled by Excel masters.

"The stress tests, designed by President Barack Obama's administration to show how much extra capital the 19 largest U.S. banks may need to survive a deeper economic downturn, are controversial. Wells Fargo Chairman Richard Kovacevich called them "asinine" in a speech at Stanford University in California on March 13, saying the results would provide opportunities for short sellers to drive down bank stocks."

Goldman Launches $5.5B Secondary Market PE Fund (WSJ)
"The market for such limited-partnership interests has become one of the hottest sectors of the private-equity market, as some pension funds and endowments scramble to reduce their exposure to the sector.

The new Goldman fund, GS Vintage Fund V, would be the largest secondary fund ever raised. The investment bank has emerged as one of the leading players in the secondary-buyout area, having raised four previous funds totaling some $6 billion. Other prominent secondary-fund firms include Lexington Partners Inc., Coller Capital and Pomona Capital."

Attorney Pulls In 80k To Take Year Off (NYT)
I can appreciate this on so many levels. The sixth year associate at Skadden is taking the year to "teach English to monks in Sri Lanka and possibly help bring solar power to parts of the Himalayas."

Barclays Is Fine. Everything Is Cool. (Reuters)
I can see where you'd all be a little concerned about the bank: they just dumped iShares for a little less than I think it might have been worth at what we'll concede was an upbeat pace. And sure, it looks like they're on the verge of selling their "entire asset management arm", but what does that mean, really? This isn't the core business, people. Asset management is just like, you know, extra.

"The report quoted "people close to Barclays" as saying the bank would "consider, rather than solicit" interest in the whole of BGI -- the bank's San Francisco-based asset management arm.

The newspaper said analysts believed bids for BGI, including iShares, would need to be in the region of at least 8 billion pounds to persuade Barclays' board of the merits of selling the business."

HSBC May Put Headquarters And Other Buildings On Block (NYT)
"As part of managing a significant global real estate portfolio HSBC is testing the market with three of its landmark property assets," HSBC said in a statement. "HSBC constantly monitors the commercial property market carefully, making decisions based on what is most appropriate for the business and our stakeholders."

AIG To Taxpayers: You Screwed Yourselves (WSJ)
As a result of spineless endeavors to placate, it appears that 20 or so members of the Financial Products group have quit and the remaining members are less than enthused about the daily grind.

"In the wake of the controversy, however, Mr. Pasciucco suggested that the unit's employees are wary that their pay could again come under political attack. He said within the coming weeks and months, AIG in concert with the government needs "to give them some certainty about how they're going to be compensated."

Among the employees who resigned were two top executives at Banque AIG, a French subsidiary of the financial-products unit. Before the resignations, AIG had described a scenario to the Treasury Department under which $234 billion in trades could default amid resignations."

Source: Dealbreaker | 13 Apr 2009 | 12:15 pm

Oil falls below $52

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 12:12 pm

Top Analyst Upgrades (BRY, BRCD, GS, LULU, MWW, CRM)

These are some of the top analyst upgrades or positive research calls that we have seen early this Monday morning from Wall Street: Berry Petroleum (BRY) Raised to Outperform at Morgan Keegan. Brocade (BRCD) Raised to Buy at Piper Jaffray. Goldman Sachs (GS) Started as Buy at Citigroup. Lululemon Athletica (LULU) Raised to Outperform at William Blair. Monster Worldwide (MWW) [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 12:07 pm

Global Capacity to Hold Investor Call on April 15, 2009 to Discuss 2008 Operations

CHICAGO, April 13 /PRNewswire-FirstCall/ -- Global Capacity (OTC: CGSY), the world's leading telecom information and logistics company, today announced that it will hold an...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:01 pm

RPT-PREVIEW-Defensive pharma promises solid Q1 results

* First Q1 results from J&J, Abbott, Roche this week
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

First Financial Network, Inc. Announces $292 Million FDIC Loan Portfolio Offering

Franklin Bank Loans Up for Sale OKLAHOMA CITY, April 13 /PRNewswire/ -- First Financial Network, Inc., the nation's leading loan sale advisor, today...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

Emerald Dairy Inc. Reports 2008 Results: Revenues Rise By Nearly 50%, to $44.3 Million, Exceeding Expectations; Gross Profit Increases by More Than 68% To $17.78 Million

RESTON, Va., April 13, /PRNewswire-Asia/ -- Emerald Dairy, Inc. (OTC Bulletin Board: EMDY), a leading producer and distributor of infant and children's formula, milk powder...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

Venture Capital Fundraising Activity Slows Considerably in the First Quarter of 2009

NEW YORK, April 13 /PRNewswire/ -- Just 40 venture capital funds raised $4.3 billion in the first quarter of 2009, according to Thomson Reuters and the National Venture Capital...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

James River Coal Company Announces Date of First Quarter Results

RICHMOND, Va., April 13 /PRNewswire-FirstCall/ -- James River Coal Company (Nasdaq: JRCC), will release its first quarter results for 2009 before the market opens on May 1, 2009.
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

Detroit Tool Metal Products Names Director of Engineering and Quality

William Scruggs Named to New Position LEBANON, Mo., April 13 /PRNewswire/ -- Detroit Tool Metal Products (DTMP) today announced the appointment of William Scruggs...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 12:00 pm

India outsourcing firm buys stake in Satyam

Indian telecommunications outsourcing firm Tech Mahindra has bought a controlling stake in Satyam Computer Services, the outsourcing giant nearly brought down in a $1 billion fraud. ...
Source: RSS feed - channel BNewsBusiness | 13 Apr 2009 | 11:57 am

Indications: Stock futures point to lower start for Wall Street

U.S. stock index futures were down Monday, pointing to a lower opening for Wall Street after a three-day weekend.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 11:51 am

Top Analyst Downgrades (GLW, ETN, EBAY, GMCR, INTU, WFR, VDSI, WFC, WYNN)

These are most of the top pre-market analyst downgrades and cautious research notes we have seen from Wall Street analysts this Monday morning: Corning (GLW) Cut to Perform at Oppenheimer. Eaton (ETN) Cut to Neutral at UBS. eBay (EBAY) Cut to Sell at Collins Stewart. Green Mountain Coffee (GMCR) Cut to Neutral at Sun Trust Robinson Humphrey. Intuit (INTU) Cut [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 11:50 am

Time to pay back Uncle Sam

Wall Street is counting down to Tuesday morning, when Goldman Sachs is due to report quarterly earnings. But the firm's first-quarter profits aren't the main source of suspense.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 11:46 am

U.S. institute names 99 top ethical companies

NEW YORK (Reuters) - The Ethisphere Institute on Monday named 99 companies it says are the world's most ethical, its third annual listing designed to encourage ethical practices within the global business community.
Source: Reuters: Business News | 13 Apr 2009 | 11:27 am

As China Slows US Debt Purchases, Will Treasury Rates Rise

The Administration is going to have to raise hundreds of billons of dollars to support its stimulus package, budget, and mortgage bail-out programs. Several things could make the process difficult, and the most troubling one is that buyers of Treasuries may want to put their money elsewhere. If so, the interest rates Uncle Sam will [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 11:12 am

Thailand locked in deadly stalemate

Twelve hours after Abhisit Vejjajiva, the prime minister, announced a state of emergency, anti-government protesters and the army were still fighting running battles in Bangkok and surrounding areas
Source: Financial Times - US homepage | 13 Apr 2009 | 11:10 am

Wal-Mart wants your rash and strep throat

Americans, frustrated by endless waits at the doctor's office, are sidestepping their family physician and taking their rashes, strep throat and pink eye to stores such as Wal-Mart and Walgreens instead.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 11:04 am

Asian markets up as dealers remain confident (AFP)

AFP - Asian markets were broadly up Monday as investor confidence continued to flow following welcome positive news from China and after a massive stimulus plan was unveiled in Taiwan.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 11:04 am

Can Ford Fusion win against Volt or Prius?

Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 10:55 am

Oil falls as demand set to slow

The price of oil falls after the International Energy Agency predicts that the global recession will cut demand for crude.
Source: BBC News | Business | World Edition | 13 Apr 2009 | 10:32 am

Express Scripts to buy Wellpoint unit in $4.68 billion deal

Express Scripts Inc. plans to acquire WellPoint Inc.’s in-house pharmacy-benefits-management business in a $4.68 billion deal, the companies said Monday.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 10:25 am

UK makes poor showing on ethical company list

Just five UK companies have made it on to a list of the world's most ethical corporations, published by an American research institute today.
Source: Latest Business News from Times Online | 13 Apr 2009 | 10:24 am

Apple: Nearing the billion apps mark

Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 10:21 am

Don't buy an iPhone, Palm until June

Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 10:19 am

The World’s Most Ethical Companies? A Joke

An organization called Ethisphere has put out a list called “2009 World’s Most Ethical Companies” There is nothing wrong with the list, but the basis on which it was put together is a bit naive and it appears to be troubled by several conflicts of interest. Ethisphere reports that the categories it used were Corporate Citizenship and [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 10:14 am

Satyam announces winning bidder

Satyam, the fraud-hit Indian IT firm, says local company Tech Mahindra is to buy a controlling stake in it.
Source: BBC News | Business | World Edition | 13 Apr 2009 | 10:13 am

The car company Buffett is banking on

Warren Buffett is famous for his rules of investing: When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact. You should invest in a business that even a fool can run, because someday a fool will. And perhaps most famously, Never invest in a business you cannot understand.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 10:01 am

GM (GM) Creditors May Simply Get Robbed

GM’s (GM) creditors seem to believe that they should get a better deal than the car company is offering them so that it can reduce its debt. Even the most senior creditors are being asked to take a very modest portion of the face value of their loans to help the huge car company get [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 9:51 am

TARP Recipients Face Another Charge Of Mismanagement: A Customer Bill Of Rights

There would appear to be no end to the extent to which banks which received TARP funds will go to make Congress and the public unhappy with the program and its results. Executive pay and perks started the process of eroding confidence in how well TARP money has been used. Now, the greed of the banks [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 9:32 am

Microsoft’s (MSFT) Key Bargaining Chip—Yahoo!’s (YHOO) Earnings

There have been a number of news reports recently saying that Microsoft (MSFT) and Yahoo! are back in the process of negotiating a combination of their search businesses to take on the industry leader, Google (GOOG). Since Microsoft is a distant third in US market share with less than 10% by most measures, it would [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 9:09 am

China Makes Claim To Lead World Economies

Based on claims from the Chinese government, which should not be a revelation to anyone given their source, the economy of the world’s most populous nation has begun to turn around. That would put it several months, if not quarters, ahead of the world’s other large economies. If the pretensions are correct, China has the [...]

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Source: 24/7 Wall Street | 13 Apr 2009 | 9:02 am

How to sell your business - even now

Rick Hunt was working hard to sell his environmental services company, Risk Removal. The business, based in Fort Collins, Colo., removes asbestos and lead paint for commercial, residential and government clients. Since acquiring it with three partners in 2002, Hunt had seen the business double in size; by the end of 2008, Risk Removal was generating annual revenues of $3 million. The business attracted a lot of attention from potential buyers, but tightening credit markets were making it difficult to close a deal.
Source: Business and financial news - CNNMoney.com | 13 Apr 2009 | 9:00 am

Baugur boss Jon Asgeir Johannesson's property deal under scrutiny

The administrator to failed Icelandic investor Baugur is investigating the transfer of properties to its chairman Jon Asgeir Johannesson.
Source: Telegraph Finance | 13 Apr 2009 | 8:13 am

Asia markets rise on Japan stimulus, China lending (AP)

AP - Asian markets gained more ground Monday as Japan's new $150 billion stimulus plan and upbeat news about Chinese bank lending boosted hopes for recovery in the region's major economies.

Source: Yahoo! News: Stock Markets News | 13 Apr 2009 | 8:07 am

Iceland banking inquiry finds murky geysers run deep

When investigators get beyond the secrecy and complexity they may find another Enron writes Rowena Mason.
Source: Telegraph Finance | 13 Apr 2009 | 8:00 am

Asia Markets: Asia shows signs of recovery, but Japan lags behind

Hope for recovery in Asian economies is on the rise, with some analysts seeing the region, and especially its emerging markets, showing signs of improvement. But the one exception looks to be Japan, where evidence of a turnaround is mixed at best.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 7:41 am

Pfizer offers to boost stake in Indian business

Pfizer is offering $136 million to boost its stake in its India business unit, Pfizer Ltd., to 75% from it current 41%.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 7:29 am

Bailed-out banks face probe over fee hikes: report (Reuters)

Reuters - U.S. banks that received money under the Troubled Asset Relief Program (TARP) are facing a probe over increases in rates and fees, the Wall Street Journal said. The Congressional Oversight Panel, the body named by Congress to oversee the federal bailout, is working on a report examining instances of potentially inappropriate lending by banks that got taxpayer capital, according to the paper.
Source: Yahoo! News: Business | 13 Apr 2009 | 7:24 am

Tech Mahindra wins bid for 'India's Enron'

Tech Mahindra, the IT group part-owned by BT, has bought Satyam, the company at the centre of India’s biggest corporate fraud, in a deal that values the stricken outsourcing group at £760 million.
Source: Latest Business News from Times Online | 13 Apr 2009 | 7:22 am

India's Tech Mahindra wins bid for Satyam

Indian information technology company Tech Mahindra filed the highest bid for scandal-tainted Satyam Computer Services, valuing India's fourth largest outsourcing group at $1.1bn and far exceeding market expectations
Source: Financial Times - US homepage | 13 Apr 2009 | 7:08 am

Internet payday lenders with ties to Indians dodge California regulators

The state has been trying for three years to force the businesses to adhere to the same rules as brick-and-mortar store, but the issue of tribal sovereignty has complicated those efforts. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

How car dealerships operate

How car dealerships operate By law, automakers must use franchised dealers instead of selling new cars directly to the public. GM has about 6,200 dealers. Chrysler has 3,300.
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

Thinning dealer ranks is key to reducing GM and Chrysler's costs

But contracts make it nearly impossible for the automakers to simply put these independent business owners out of commission, the way they can lay off employees. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

Lay 'death tax' debate to rest

The tax currently hits fewer than 3 in 1,000 estates and has exemptions and deferments for the rest. Yet it consumes enormous time and energy in Washington.

Everybody's familiar with Ben Franklin’s old saw about nothing being certain but death and taxes. But how about the "death tax"?

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Plan to close nursing home for film workers stirs emotions

The longtime assistant to the late Lew Wasserman says the studio mogul would be furious if he knew the facility he championed was closing. Wasserman's heirs defend the decision. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

How car dealerships operate

How car dealerships operate By law, automakers must use franchised dealers instead of selling new cars directly to the public. GM has about 6,200 dealers. Chrysler has 3,300.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Plan to close nursing home for film workers stirs emotions

The longtime assistant to the late Lew Wasserman says the studio mogul would be furious if he knew the facility he championed was closing. Wasserman's heirs defend the decision.

The longtime secretary to the most powerful man in Hollywood said he "would roll over in his grave."

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Thinning dealer ranks is key to reducing GM and Chrysler's costs

But contracts make it nearly impossible for the automakers to simply put these independent business owners out of commission, the way they can lay off employees.

Car dealers -- sponsors of Little League, fixtures of Main Street, vibrant symbols of the American entrepreneurial dream -- could now prove to be the biggest threat to the future of the very industry they built.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

'Hannah Montana' is No. 1, thanks to the girls

Preteen as well as teenage girls show up on the holiday weekend to push the Miley Cyrus film over $30 million. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

'Hannah Montana' is No. 1, thanks to the girls

Preteen as well as teenage girls show up on the holiday weekend to push the Miley Cyrus film over $30 million.

Girl power and Good Friday combined to propel "Hannah Montana: The Movie" to the top of the weekend box office with $34 million in ticket sales.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Business events scheduled this week

At a glance TODAY Internal Revenue Service Commissioner Douglas Shulman speaks at the National Press Club.
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

The market's hurdle this week: corporate earnings

A flood of quarterly results and outlooks is due from companies as varied as banks, toy sellers and computer chip makers.

Is Wall Street still in a bear market, or beginning a bull market? Either way, it's probably due for a major pullback.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Internet payday lenders with ties to Indians dodge California regulators

The state has been trying for three years to force the businesses to adhere to the same rules as brick-and-mortar store, but the issue of tribal sovereignty has complicated those efforts.

California business regulators are stumbling in their efforts to find and ban an unlicensed form of high-interest consumer credit: payday loans available on the Internet.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

Business events scheduled this week

At a glance TODAY Internal Revenue Service Commissioner Douglas Shulman speaks at the National Press Club.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

IPhone changes dynamics of game software industry

After years of building large, graphics-intensive blockbusters, developers are starting to make shorter, less expensive games for the iPhone and its phone-less sibling, the iPod Touch.

Only a few years ago, bigger guns, badder enemies and louder explosives mattered most in video games.

Source: L.A. Times - Business | 13 Apr 2009 | 7:00 am

IPhone changes dynamics of game software industry

After years of building large, graphics-intensive blockbusters, developers are starting to make shorter, less expensive games for the iPhone and its phone-less sibling, the iPod Touch. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

The market's hurdle this week: corporate earnings

A flood of quarterly results and outlooks is due from companies as varied as banks, toy sellers and computer chip makers. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

Lay 'death tax' debate to rest

The tax currently hits fewer than 3 in 1,000 estates and has exemptions and deferments for the rest. Yet it consumes enormous time and energy in Washington. ...
Source: RSS feed - channel BNPaperBusiness | 13 Apr 2009 | 7:00 am

Peter Brimelow: Schultz poised between inflation and deflation

Some say we're due for poisonous deflation, while others predict runaway inflation, but big thinker Harry Schultz says we may get both.

Source: MarketWatch.com - Top Stories | 13 Apr 2009 | 6:43 am

GM told to prep for bankruptcy filing: report (Reuters)

Reuters - The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday.

Source: Yahoo! News: Business | 13 Apr 2009 | 4:45 am

6 Smart Ways to Spend Your Tax Refund (Deal of the Day)

Chances are you're about to come into a cash windfall.

So far, the average tax refund this year is $2,740, according to the latest IRS statistics. That's not chump change — and it comes in handy at a time when many consumers are trying to tackle their debts and save as much as they can each month. In fact, with so many competing priorities, figuring out where to spend your refund can be a bit overwhelming.

To help you decide, here are four ways you can use your tax refund to bolster your finances:

Create a Cash Cushion

Conventional wisdom used to be that keeping three to six months' worth of living expenses in a savings account for an emergency was the way to go. But with today's unemployment rate at a 25-year high, you'll need an emergency fund that can cover at least six to nine months of expenses, the amount of time most laid-off people now need to get back on their feet, says Sheryl Garrett, founder of the Garrett Planning Network, an international network of fee-only financial planners.

Stash your savings in a safe and liquid cash account like an FDIC-insured money market savings account. For the best rates consider online accounts, like those available on HSBC Direct and Emigrant Direct, which currently offer 1.65% annual percentage yield on your cash. (Not bad considering that the federal funds rate is between 0% and 0.25%.)

Pay Off Debt

Think earning 18% (or more) on your cash is impossible these days? Well, you can by wiping out your high-interest credit-card debt.

“A lot of people don't think of paying off credit card debt as a return on investment, but reducing the cost of borrowing is the equivalent of increasing the total return on your investments,” says Michael Kresh, a financial planner in Islandia, NY.

The smartest debt-repayment strategy? Start with any department store cards you have since they tend to charge the highest interest rates of any consumer card — often 22% or higher — even for their best customers.

After that, tackle your highest-rate credit cards or the card with the lowest balance, which will give you the satisfaction of wiping out at least one debt entirely. (For more tips on beating debt, read our story. )

Fund Your Retirement

By now, you're hopefully contributing enough money to your 401(k) to receive your employer's matching contribution. So consider investing some extra money in a deductible IRA, where (assuming you qualify) your contribution is tax-free but your withdrawals are taxed, or a Roth IRA, where you contribute after-tax dollars and withdraw your contributions and earnings tax free after you've held the account for at least five years and you're at least age 59 1/2.

You can contribute up to $5,000 to a Roth or traditional IRA in 2009 or $6,000 if you'll be age 50 or older by the end of the year. (Married couples who are filing jointly can contribute up to $10,000 or up to $12,000 if both spouses will be age 50 or older by the end of the year.) For help choosing an IRA, click here.

Using a traditional or Roth IRA to plan for retirement is especially helpful if your employer has eliminated or reduced their 401(k) match. According to Watson Wyatt, a human resources consulting firm, 12% of employers have already reduced their match and another 12% plan to do so this year.

Save for College

During the past year, 529 college savings plans have taken a hit as the stock market plummeted. Still, these plans, which let money grow tax-deferred and allow for tax-free withdrawals when used for higher education, can help families pay for the increasing costs of college – especially if their child is 10 or more years away from attending.

Over the long term, families who invest in 529 plans can earn returns large enough to keep up with the spikes in college costs. But, if a child is just a few years away from college, parents should consider a more conservative investment choice, like having FDIC-insured savings options within their 529 plans. (These aren't available in every state.)

Invest in Yourself

More than five million people have lost their jobs since December 2007, according to the Bureau of Labor Statistics. That’s resulted in stiff competition for any job opening. Whether you’re currently unemployed or worried about losing your job, it may be time to freshen up your resume, sharpen your interviewing skills, and even take an extra course or two to gain an edge on the competition.

Career coaches, for example, can help you with your resume, put together a portfolio of your work and practice interviewing and networking skills. A one-on-one session runs anywhere from $100 to $250 per hour, says Laura DeCarlo, president of Career Directors International, a professional career association in Melbourne, Fla. Long-term programs can run into the thousands of dollars. For the best result, seek coaches who come recommended, have practiced for several years, and are certified by an accredited association, like Career Directors International or those recommended by the American Society for Training & Development.

If you can’t afford to fork over hundreds or thousands for a career coach, consider working with an “expert” at career web site Vault.com who can review and edit a resume and cover letter starting at $199 and $79, respectively.

Splurge a Little

Once you’ve set some of your refund aside in an emergency fund and tackled some of those pesky debts, consider spending some cash on yourself. Retailers of all kinds are slashing prices, so you may be able to get a great deal on that coveted designer dress or take that once-in-a-lifetime trip.

Hotels and airlines, for example, are offering bargain-basement package deals on some popular destinations, including Hawaii and the Caribbean. Even better, deals that would normally have expired by now are getting extended well into May, says Kelly Pelletier, spokeswoman for Kayak.com, a travel search engine.

Just try not to feel guilty while lounging on the beach. "Someone who's wealthy in retirement but lived a life unable to spend anything certainly didn't live a happy life," says Gary Schatsky, a New York-based financial planner. You can also think of your splurge as your own personal bailout package. After all, consumer spending helps the economy.

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 | 13 Apr 2009 | 4:00 am

New Ideas from Not-So-New Investors

What do you invest in if you’ve seen it all? We asked three longtime money managers just that. Only these weren’t any three investors. These gentlemen worked on Wall Street during the Great Depression and have been investing ever since, racking up impressive records through numerous bull and bear markets. Their long-term outlook on the economy and markets are relatively upbeat, so we wanted to know where they’re putting their money today. Not surprisingly, they’re sticking with what’s worked over their lengthy careers: Picking up cheap companies, preferably those with little debt and loads of cash.

Seth Glickenhaus, 95, has been looking for dividend-paying stocks to cushion his portfolio from the current market turmoil. While dividends are becoming harder to come by, he has found several amid master limited partnerships like Enterprise Products (EPD). The oil pipeline operator, which transports oil and natural gas, yields nearly 10 percent and even raised its dividend last fall. And the company has been buying other pipelines. “It offers stability on the downside, huge income and improving earnings — three characteristics in stocks we like.”

Glickenhaus has also picked up battered shipping firms Diana (DSX) and Navios (NMM) in recent months, encouraged by their decisions to buy back stock — a sign that management expects “reasonably good prospects,” he says. Both companies have taken a sharp hit as slowing exports reduce demand for shipping, but Glickenhaus expects both to recover — and in the meantime is collecting a nearly 20 percent dividend on Navios.

Irving Kahn, 103, and his son Tom, who runs Kahn Brothers on a daily basis, have spotted some bargains that even Kahn’s mentor, veteran value investor Benjamin Graham, would have approved. One recent example: Car stereo equipment firm Audiovox (VOXX). The company trades at about a quarter of the value of its assets or book price. And as an extra cushion, Audiovox sits on $1.72 a share in cash — almost half its current stock price. Syms (SYMS) is another recent addition. While the company is known for its bargain clothes, the company could easily be viewed as a real estate investment trust — one that happens to have little debt and owns its properties. “It’s like a dollar bill for 35 cents,” Tom says.

In good times or bad, the elder Kahn says he has always been a fan of government bonds, and this period is no different. Bonds also make up about half of Walter Schloss’ personal holdings, but with Treasuries offering paltry yields, the 92-year-old also owns stocks in companies with little debt and that are cheap, preferably trading below book value (essentially what the company would have in assets if it went bankrupt). Over the past year, International Paper (IP) made the cut, especially after it was trading at a faction of its recent highs. The company has since cut its dividend but still is maintaining a payout.

What to avoid? Although Glickenhaus actively bet on municipal bonds in the 1930s, he is staying away from them during this downturn. The deficits states like California and New York face are immense, he says: “They frighten me.”

The bottom line from the men who truly have seen it all: The economy is definitely in the dumps but those who look beyond and ignore the panic are likely to come out ahead. That’s not to say investors should throw caution to the wind. The trio recommends sticking with cheap companies that have little debt — even better if they are trading for a fraction of the worth of their assets. It’s an approach that has carried these men through numerous downturns.

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 | 13 Apr 2009 | 4:00 am

3 Ways Investors Can Navigate This Market (On the Street)

This week the heart of the first quarter earnings season starts to report its numbers. While the results during the next few weeks are widely expected to be dismal — at the conclusion it should be the seventh consecutive quarter of negative earnings growth — many investors are looking for signs in the corporate releases that show this 12-week period represents the low point in the economic downturn. The thinking goes that once it’s in the rear view mirror, the stock market will hopefully resume an upward trajectory.

Investors have already seen glimpses of that. The Dow Jones Industrial Average gained 22% during a four week period that started at the March 9 bottom of 6547 and cooled off shortly before Alcoa (AA) announced its results last week, traditionally the start of earnings reporting. Along the way there have been streaks of triple-digit trading days that made headlines but not a lot of money for most long-term investors. The end result of that volatility adds up to little in a stock market that seems like it can’t sustain a rally — at least for now.

For long-term investors, big swings don’t equal big gains, especially when fast-money hedge funds drive the action, profiting from moves on volatile stocks with prices that bear no relationship to their earnings fundamentals. Nevertheless, fund managers are making changes to their portfolios in this tricky environment, whether it’s to play certain broad trends, profit a little on the margins of a long-term strategy or because they are setting themselves up for what they believe will be a rebound later this year and in 2010. These are three different approaches, and you can easily follow them, too, even if your investment horizon is ten years out not ten minutes.

The day-to-day volatility will certainly continue this week as the banking sector releases its results. Even a change in mark-to-market accounting rules won’t prevent these firms from posting miserable results. The inevitable knee jerk reaction will be to sell. Indeed, J.P. Morgan (JPM) equity strategist Thomas Lee believes trading activity without solid fundamentals will keep the benchmark S&P 500 stock index between 750 and 1100 until the housing and financial sectors bottom out and stabilize. “We still think a final low is ahead of us,” he wrote recently.

Charlie Mercer, manager of the Aston/Veredus Select Growth Fund (AVSGX), points out that throughout 2008, the market has endured 28 one-day swings of 4% or more. Between 1945 and 2007, he says, the S&P had 49. That’s “the type of volatility we see in frontier and emerging markets,” he says. “Not the biggest, most developed market in the world.”

“That creates a different environment, and what you do depends on your appetite not so much for risk taking, but more about your desire to trade in a trader’s market,” he says. That’s not for everyone, particularly small investors who can’t be as nimble as professional traders. “The volatility bubble won’t last forever, and being long in it at this stage of the game is a very risky bet.”

We asked Mercer and two other managers with long term perspectives how they were playing this market. Of course, we got three different answers.

Mercer remains cautious about earnings, but he does see positive signs in how some sectors are performing. “Earnings are not good,” he says, adding that conventional wisdom predicts nine consecutive quarters of negative growth will come to an end in the third quarter of 2009. “But there are some sectors where estimates have simply been too low.”

Technology has traditionally done well coming out of downturns as investors flock to stocks that have big growth potentials. That trend is playing out in a big way in 2009. Through last week, Lipper says the average technology fund returned 9.2% in 2009 vs. a 7% loss for S&P 500 index funds. Mercer says semiconductor stocks like Qualcomm (QCOM), Broadcom (BRCM) and Intel (INTC) have been oversold.

He’s also looking at low-end dining chains like Darden Restaurants (DRI), Chipotle Mexican Grill (CMGB) and Panera Bread (PNRA) as a way to play the cash-strapped consumer angle. These stocks have outperformed this year albeit against extremely low expectations.

“The market is priced for near Armageddon,” he says. “People simply got too negative with those industries.”

One option for long-term investors is to develop a keen short game, says David James, portfolio manager and senior vice president at James Advantage Funds, a mutual fund company based outside of Dayton, Ohio. James says investors should lower their overall stock allocation but shoulder a bit more risk with small sums of cash. “It’s more of a counterpuncher situation,” he says. “Remember not to fall in love with your stocks – you’re looking to buy them and hold them for a period of time, and enjoy a portion of the rally.”

James Balanced: Golden Rainbow (GLRBX), the firm’s $533 million flagship fund, currently splits its assets between bonds (42%), stocks (33%) and a large cash position. Top equity holdings as of its last filing date include Hess (HES), IBM (IBM) and Western Digital (WDC). The fund holds the top spot in its Morningstar peer group over the last decade and only lost 5.5% last year.

Or, investors could look at these short-term blips as just that — temporary fluctuations that shouldn’t influence a long-term strategy. That’s an idea Adriana Posada recommends. Posada, who manages the American Beacon Large Cap fund (AADEX), says it’s better to think years ahead, not get caught up in the moment. Her fund, whose major holdings include IBM, Verizon Communications (VZ) and Wyeth (WYE) (which proved to be a wise name to stay with – the pharmaceuctical company was bought out by rival Pfizer (PFE) at a 32% premium at the end of March), has very little turnover despite current market turmoil.

“If you have to take a beating, that’s what you do,” she says. “We think that a lot of the retrenchment is not permanent, not due to fundamentals. These companies are not broken. As long as they can have internal or alternative sources of short-term funding they can survive.”

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 | 13 Apr 2009 | 4:00 am

Futures Mixed as Traders Await Earnings (Market Update)

News at a Glance

• Banks Scrutinized: TARP recipients drilled on lending.
• Mixed Morning: Futures point to mixed start after rally.
• Crude Slips: Oil down after weak demand forecast.
• Next Chapter: GM told to prepare for bankruptcy: NYT.

The Lowdown

Concern over the financial sector and uncertainty over earnings season left Wall Street cautious after a long weekend.

Stocks looked to open mixed Monday as traders weighed a report that the nation's top banks were coming under scrutiny from a government watchdog and awaited key earnings reports from blue chips across a variety of sectors. Shortly before 8 a.m., Dow futures were trading slightly above fair value, while Nasdaq and S&P 500 futures were trading below.

In finance, the Congressional Oversight Panel has begun investigating reports of "potentially inappropriate lending" on the part of banks receiving funds through the Trouble Asset Relief Program, The Wall Street Journal reported. The banks in question include Pacific Capital Bancorp (PCBC), Bank of America (BAC) and Citigroup (C).

Citi is scheduled to report its earnings at the end of the week. JPMorgan Chase (JPM) plans to release its results Thursday, and Goldman Sachs (GS) is expected to post on Tuesday. Whether the last month's rally holds its gains will depend largely on these banks' results.

Financials rode a wave of optimism into today's session. Last week's report that Wells Fargo (WFC) expects to post a $3 billion profit lifted the broader market, and the Dow closed Thursday at its highest point in two months.

Several blue chips outside the financial sector are set to report their quarterly numbers this week, including Intel (INTC), Johnson & Johnson (JNJ) and Google (GOOG).

In energy, oil prices declined before the opening bell on an International Energy Agency report suggesting a drop in demand. By 7:34 a.m., crude traded down $1.29 at $50.95 a barrel.

In world markets, Japan's Nikkei slipped 0.4%. Most of the major European indexes remained closed for the Easter holiday.

Corporate News

• General Motors (GM) has been told by Treasury officials to prepare for a bankruptcy filing by June 1, The New York Times reported, citing anonymous sources. GM has been instructed to brace for a "surgical" bankruptcy, in which its functional pieces would be teased out from its unhealthy ones.
• Express Scripts (ESRX) has agreed to agree the NextRx divisions of WellPoint (WLP) for $4.68 billion, the companies said in a statement. The deal will expand Express Script's pharmacy benefits management customer base by roughly 25 million accounts.
• Toyota Motors (TM) could post a full-year operating loss of more than $5 billion for the period ending March 2010, the business daily Nikkei reported. Annual sales could decline by about 7 million units to about 6.5 million cars and trucks for the year.

The Economy

• There are no substantial economic reports scheduled to be released today.

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 | 13 Apr 2009 | 4:00 am

Stock Pros Who Survived the Depression

IRVING KAHN SITS AT HIS CLUTTERED DESK, PEERING AT his computer screen through thick, dark glasses. The Dow inched up 38 points today, a small move in light of its 332-point drop earlier in the week. But Kahn has made a career of betting on beaten-down stocks, and he’s hard at work poring over annual reports and studying balance sheets looking for companies that have lots of cash, not much debt and good long-term growth prospects. General Electric has a solid business and looks pretty good at these prices, he muses. General Motors? Not so much.

Like a lot of us, Kahn has seen good times and bad, bull markets and bear markets, recessions and recoveries. But he’s also seen something most of us haven’t: the Great Depression. Kahn, who still shows up at work every day and puts in a good six hours, worked as a stock analyst and brokerage clerk on Wall Street in the 1930s. He’s 103 years old.

That’s right — 103. As pundits half their age dominate the airwaves with prognostications on whether the next Great Depression is just around the corner, a small group of overlooked folks who not just lived through it but worked through it — on Wall Street — are still here. What’s more, they’re still at it, running their own sizable portfolios and, in a few cases, managing money for clients. Despite innumerable bull and bear markets, 17 presidents, and countless economic policies, they’ve remained remarkably true to their investing philosophy. They’ve also remained remarkably true to their methods: Forget BlackBerrys; most of them hardly touch their desktop computers. And you won’t find CNBC blaring in their offices throughout the day; that’s more noise than news to these gentlemen. Instead, you’ll find stacks of reading material (these guys actually read a firm’s annual report before investing) and a lot of old-fashioned...what do you call it? Oh, right. Math.

This cohort has perspective most of us lack: They know what the Depression looked like and how it felt. They saw bread lines on the street and despair in the faces of friends and strangers. Some lost money in the stock market, while others made enough to make it through the Depression rather comfortably. A few began their 80-year careers working for a legendary investor whose investing principles are still taught in business schools. And their take on today’s markets might surprise you.

Now, lest this sound like an “in my day, we walked to school barefoot in the snow” admonishment, rest assured these veteran investors are all quick to acknowledge that times are indeed tough. At just over 8 percent, unemployment is at its highest level in decades, and some number crunchers argue that if it were calculated to include discouraged workers who have given up their job search, it would be more like 15 percent. Stocks fell 40 percent in 2008, the worst annual return since 1937. When these Depression-era investors reflect on what they faced in the 1930s, it’s clear they view today’s crisis differently — we’re certainly not seeing bread lines or a resurgence of tenement living — but the tactics they used to cope are remarkably similar. So we sat down with three of these old hands, in their Midtown Manhattan offices and their Park Avenue homes, to hear their stories and note their strategies, then and now.

AFTER DROPPING OUT OF CITY College to work on Wall Street in 1928, Irving Kahn had a front-row seat to investors’ successes and failures during the Depression, especially those of mentor and friend Benjamin Graham. Investing buffs know Graham as the legendary father of value investing, whose disciples include Warren Buffett. After taking a beating in the 1929 crash, Graham set out to find the least risky way to make money — conveying his findings in the landmark book Security Analysis and through investing courses. (Not to mention racking up millions over a multidecade investment career.) Kahn helped him on all fronts, crunching numbers and researching stock picks. In fact, when you talk to Kahn, it often seems as if he sees the Depression through Graham’s eyes, peppering his recollections with self-effacing comments, such as, “I can tell you about myself by telling you what I did for Graham.”

Like many investors (and many New Yorkers), Kahn is supremely skeptical — be it of a company’s prospects or of inquiries from a curious reporter asking about the similarities between now and the 1930s. Kahn, who sounds more like a professor than a money manager, actually asks more questions than he answers, dodging most queries about himself. When prodded, the public school-educated son of Polish immigrants says the problem after the Depression was not so much the lack of money to invest but rather “knowing how to use it without losing it. There were too many bargains.” A bargain isn’t a sure thing, and Kahn learned from Graham to buy only investments he deemed “riskless.” He also learned when to get out even if that meant leaving money on the table.

Kahn hasn’t deviated from that philosophy, even now that he’s chairman of his investment firm, Kahn Brothers Group. He still shows up five days a week to hunt for overlooked companies with good businesses and little debt that are trading for less than the value of their assets. Kahn’s youngest son, Tom, 64, runs the firm, which has returned an average of 10.9 percent a year since 1994 through the end of 2008, better than the S&P 500’s 6.8 percent average. After that kind of performance in his nearly eight decades as an investor, the elder Kahn can clearly afford the finer things in life. But he steadfastly prefers hamburgers at low-key neighborhood joints over the haute cuisine at the many pricey restaurants near his Upper East Side home. At 103, he has succumbed to taking a cab to the office but takes the bus home — using his senior citizen’s discount. After so many years in the business, it’s a wonder Kahn continues the grind. But his son Tom says, “Investing is his hobby. It keeps him alive.” That’s quite a tonic, but the Kahn genes also have something to do with it. The family — including Kahn’s 107-year-old elder sister and their 99-year-old “baby” brother — has been the subject of several studies on aging.

Despite the constant comparisons with the Depression, Kahn says it’s “absurd” to think the U.S. is headed for a repeat of the 1930s when people “felt so helpless.” Back then, the Feds refused to aid banks and were powerless to adjust interest rates or insure accounts. In fact, Kahn points out, up through 1971, the Federal Reserve couldn’t even lend money if it wasn’t backed by gold. Today our government is creating billions of dollars — literally — to help get the economy back on track, we have programs to insure individuals don’t lose their bank deposits, and there’s a general sense that Washington will do what it takes to help both Wall Street and Main Street. That’s not to downplay the troubles ahead, and Kahn is the first to suggest ultrasafe government bonds for part of a portfolio. But as an investor who has seen dozens of economic downturns, Kahn plainly says this is just part of the natural cycle of the market. “Investors have no reason to feel bearish,” he says. “True value investors are glad the markets are down.”

IN A 1984 SPEECH AT COLUMBIA Business School, Warren Buffett called Walter Schloss a “superinvestor” with a singular knack for finding undervalued stocks. That’s high praise from one of the most celebrated investors ever. The root of Buffett’s admiration may seem clear enough: You could point to the fact that Schloss, like Kahn, started his career working for Ben Graham. Or you could note Schloss’s record — an average annual return of nearly 16 percent over 47 years, more than five percentage points ahead of the S&P 500. (He ran his eponymous, hedge fund-like portfolio out of a small office at Tweedy, Browne & Co.) But really, the avuncular 92-year-old with the big smile came to appreciate the merits of a well-chosen stock much earlier; it was a dividend stock that helped ease the strains of the Depression.

All it took was the 100 shares in American Telephone & Telegraph that his grandmother owned to improve his family’s experience of the 1930s. Schloss’s parents, brother, sister and grandmother all shared a three-bedroom apartment on the Upper West Side of Manhattan, where horse-drawn wagons still delivered milk and the ice truck came by weekly. AT&T’s annual dividend of $9 a share went a long way at a time when median rents in that neighborhood were $32 a month. Back then, Schloss says, a dividend was the primary reason “regular” folks invested in the stock market.

Schloss always had an affinity for numbers, though he didn’t dedicate himself to Wall Street immediately. He enlisted in the army right after Pearl Harbor and was tasked with decoding messages. The born-and-raised New Yorker was stationed in Iran where he worked in a factory assembling the Studebaker trucks that were key to the Russian victory in Stalingrad. (Schloss received a belated letter of thanks from the Russian government in the 1990s.) It wasn’t until he returned to New York in 1946 that he took a job as a stock analyst. He and his son, Edwin, who joined the business during the 1970s bear market, folded up the fund in 2002. But Schloss still keeps his head in the game by managing his own personal multimillion-dollar portfolio.

Schloss remembers the Depression well: Bank chiefs were getting hauled before Congress, the president of the New York Stock Exchange stood accused of defrauding investors, and regulators were contemplating a ban on short selling. Sound familiar? The only difference, Schloss says, is that these weren’t the headlines cried on the street corner. With just 10 percent of the population invested in stocks (in other words, just the wealthy), market news wasn’t yet mainstream and rarely made it to the front page.

Economic similarities aside, Schloss won’t succumb to déjà vu; instead he sits in his cramped home office poring over financial statements. No meetings with management, no relying on computers for data gathering — Schloss has always dug into the numbers himself. “I can sleep at night when I know their assets and can see their worth,” he says.

While he understands investors’ hesitation today, Schloss doesn’t think our current situation compares with the Depression. Back then, he says, the economy was dependent on only a handful of businesses, like banks, railroads, utilities and oil companies. Today economic growth comes from a much broader array of industries, many of them fueled by the huge gains in technological development we’ve seen over the past eight decades — including communications, biotechnology and the Internet. Sure, General Electric is still a powerhouse, but so are Google and Amgen. That means a much wider array of job possibilities — and more engines of growth for our economy. If investors today “were a little less emotional, they would see that this could be a good opportunity, so long as they move carefully and keep an eye on balance sheets,” he says.

Moving carefully has paid off handsomely over Schloss’s long investing career, but while you may think that means an all-bond portfolio, you’d be wrong. A 1 percent return, as is the case with government bonds now, “is no way to live,” he says. So Schloss, who has about half his portfolio in stocks, is still keeping an eye out for companies like International Paper, which he bought because it was trading at a fraction of recent highs, paid a dividend and had little debt. “Debt bothers me,” he says. “The companies in trouble are usually the ones that owe a lot of money.”

DURING THE DEPRESSION, SETH Glickenhaus had the chance to make it big in Arkansas — bonds, that is. While a municipal-bond trader at Salomon Brothers, the acerbic New Yorker made a gutsy call: Even though the state of Arkansas was near bankruptcy and had defaulted on its debt, Glickenhaus thought the newly issued state bonds were a steal. His bosses weren’t convinced, and another investor made a fortune on the deal, Glickenhaus, now 95, recalls with some residual indignation. His next step was to start his own firm.

During his 70-year career as an investor, Glickenhaus has been right more often than not. Six months after the 1987 stock market crash, the money manager predicted the Dow would rally 40 percent by the end of 1988. It took a few months longer, but the contrarian’s call came through in 1989. In 2002 and 2003, Glickenhaus railed against mounting consumer debt and “the deteriorating caliber of our political leaders” on both sides of the aisle, predicted a housing bust, and forecast the Dow tumbling to 7000. It fell below 6500 in March. “It fooled me in taking so long,” says Glickenhaus, whose Dorchester fund has racked up an annual average return of 13 percent since its inception in 1981, four percentage points better than the S&P 500.

While colleagues now describe him as laid-back and partial to light, healthy breakfasts of green tea and a banana, Glickenhaus is still quick to react when irked — and few topics irk him more than politics. In the 1970s, he took out full-page ads in major papers protesting the Vietnam War (landing him on Nixon’s “enemies list”), and in 2004 he rejected a White House dinner invitation with a blistering letter to George W. Bush signed “disrespectfully yours.”

Glickenhaus is a much bigger fan of President Obama and thinks he may be able to work the same magic FDR did during the Depression. But that’s not to say he thinks it’ll be easy. Some industries like autos, brokerages and home builders are unlikely to return to their former glory and will push unemployment higher, he says. But he doesn’t envision the same dire scenario he witnessed 80 years ago. Glickenhaus gravely remembers the time his father broke down in tears at dinner because he’d had to lay off an employee at his modest insurance brokerage firm, knowing the likelihood of this man finding another job was very, very slim. But today, he adds, the safety nets created since the 1930s — from food stamps to unemployment insurance — will soften the blow. Plus, the power of countries like Brazil, India and China, whose economic growth is slowing but not yet contracting, give him confidence that “a new bull market may soon be in the making.”

Ultimately, though, the man who has an opinion on just about everything acknowledges this economy is confounding. “I’m not sure I’m right,” Glickenhaus says, which is why he’s keeping at least 30 percent of his clients’ money in cash. He still fields calls from irate clients but has no plans of quitting: “I love the game and do it quite well.” Plus, after enduring countless downturns, Glickenhaus has learned one important lesson: “There always are opportunities and ways of making money, even on the worst days. You just have to have patience.”

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 | 13 Apr 2009 | 4:00 am

China offers funds to boost Asean

China offers a package of investment funds and credit for infrastructure and trade projects to south-east Asia.
Source: BBC News | Business | World Edition | 13 Apr 2009 | 2:59 am

EBay buys Korean rival's stake for $413 million: report

SEOUL (Reuters) - EBay Inc has agreed to buy a controlling stake in South Korean online retailer Gmarket Inc for $413 million, at a 32.5 percent premium, news service eDaily reported on Monday.
Source: Reuters: Business News | 13 Apr 2009 | 2:10 am

EBay buys Korean rival's stake for $413 million: report (Reuters)

Reuters - EBay Inc has agreed to buy a controlling stake in South Korean online retailer Gmarket Inc for $413 million, at a 32.5 percent premium, news service eDaily reported on Monday.
Source: Yahoo! News: Business | 13 Apr 2009 | 2:10 am

Comment on this column: Soak the rich, or soak the dead?

Source: RSS feed - channel BNPaperBusiness | 12 Apr 2009 | 11:27 pm

Twitter: midlife chatterers show they prefer to keep it short and tweet

Twitter appears to be the embodiment of youth culture with tech-savvy and fast-thumbed teens firing off short updates filled with abbreviations about their lives. But it turns out that the keenest users are the greying brigades of the middle-aged.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

Union anger at Virgin Media bosses’ bonuses after jobs cull

Virgin Media, the indebted cable operator, has angered unions by unveiling plans to award its executives bonuses just months after cutting more than 2,000 jobs.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

Sir David Jones confident of saving JJB

When Sir David Jones received his knighthood his grandson was disappointed to discover that the title did not come with complementary sword and armour. Perhaps JJB's executive chairman has also wondered whether such equipment might have come in handy over the past four months as he has fought to rescue the once mighty sports chain now teetering on the brink of bankruptcy.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

Cheers! Why the credit crunch has led to a sudden restocking of cellars

You might not feel like drinking fine wine in these straitened times but, if you have the cash, it could be worth investing in a few bottles anyhow. Fine wine is slowly returning to form as an investment class and auction houses are seeing increasing numbers of buyers who are willing to pay top dollar for the best vintages.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

With the right strategy, retailers can profit from property

Property occupancy costs account for a significant part of a retailer's turnover. For most, they comprise the second or third biggest cost after staff.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

FSA to investigate banks' risk management practices

The City regulator is to launch a formal inquiry into the financial crisis in a move that could see banking bosses being brought to account for their actions.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

The credit crunch has stolen our smiles

As George Bernard Shaw said: “The man with toothache thinks everyone is happy whose teeth are sound.” William Shakespeare felt the same: “For there was never yet philosopher that could endure the toothache patiently,” he said in Much Ado About Nothing.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

Barclays fund managers set to win higher cash payouts if group sells whole of BGI

Hundreds of fund managers at Barclays will scoop multimillion-pound cash windfalls if the bank completes the sale of Barclays Global Investors (BGI), its asset management arm.
Source: Latest Business News from Times Online | 12 Apr 2009 | 11:00 pm

Tarp investigator seeks evidence of book fiddling

The official policing the $700bn Tarp fund says he is investigating whether banks have 'cooked their books' to secure bail-out money
Source: Financial Times - US homepage | 12 Apr 2009 | 10:32 pm

Nomura shifts focus overseas

Japan's largest securities group has long focused on on the domestic market but is now is shifting its focus overseas – and reconfirming London as a pre-eminent financial centre by moving key positions to the City
Source: Financial Times - US homepage | 12 Apr 2009 | 10:31 pm

Goldman to buy discounted private equity holdings

Goldman Sachs has raised $5.5bn for a fund to buy discounted private equity holdings – the largest amount ever raised for a fund of this type – as investors anticipate a flood of forced sellers trying to offload private equity stakes
Source: Financial Times - US homepage | 12 Apr 2009 | 10:30 pm

AIG in spotlight over derivatives

The unit that all but destroyed AIG has failed to sign up for the overhaul of the global derivatives market which was given added impetus by the troubles at the US insurance group
Source: Financial Times - US homepage | 12 Apr 2009 | 10:29 pm

US forces free captain from pirates

The US navy rescues ship captain held hostage by Somali pirates for five days, in an operation that has left three pirates dead
Source: Financial Times - US homepage | 12 Apr 2009 | 9:40 pm

Barclays open to BGI bids

Barclays is poised to receive bids for the whole of its asset management arm Barclays Global Investors
Source: Telegraph Finance | 12 Apr 2009 | 9:29 pm

Congo's miners look to benefit as western investors turn to gold

The economic crisis has created a windfall for handpanning gold miners but will the true benefits of the boom again pass them by.
Source: Telegraph Finance | 12 Apr 2009 | 9:07 pm

Banks threaten to withdraw support for Tiger Tiger

The owners of Tiger Tiger one of Britain's largest bar chains are heading for crunch talks with landlords in an attempt to avert the collapse of the business and save thousands of jobs.
Source: Telegraph Finance | 12 Apr 2009 | 8:03 pm

Triple boost for car industry

Hopes have been raised within the UK automotive industry at the prospect of a stimulus that would safeguard thousands of vulnerable jobs.
Source: Telegraph Finance | 12 Apr 2009 | 7:58 pm

Eurostar feeding on hunger for travel

Here's a tiny piece of consolation for travellers stuck in security hell on one of the year's busiest days for holiday travel. Richard Brown the Eurostar chief has to do this too.
Source: Telegraph Finance | 12 Apr 2009 | 7:48 pm

Everything in the Wyevale garden is blooming lovely

James Hall finds a company utterly intent on growth and a chief executive keen to get his hands dirty.
Source: Telegraph Finance | 12 Apr 2009 | 7:40 pm

Happy days We still make enough stuff to trade our way out of recession

Source: Telegraph Finance | 12 Apr 2009 | 7:31 pm

Goldman closer to 10bn cash call

Goldman Sachs may announce as early as this week a multibillion dollar rights issue to repay its 10bn £6.8bn US government loan.
Source: Telegraph Finance | 12 Apr 2009 | 7:25 pm

Real-time updates open frontier for websites

Online social networking services such as Facebook are attracting millions of new users seeking faster 'real-time' functionality – in a trend that is leaving established players such as Google and Microsoft behind
Source: Financial Times - US homepage | 12 Apr 2009 | 6:32 pm

Rally's fate turns on bank results (Reuters)

Reuters - If Wells Fargo's strong first-quarter preliminary performance is any sign, stocks could rally further this week on any reassuring news when three other big banks post quarterly results.

Source: Yahoo! News: Stock Markets News | 12 Apr 2009 | 6:04 pm

Planet Money Meets The Press

Just back from watching our guys on NBC's Meet The Press with David Gregory. (Yes we always dress like that.)

And check out the "Take Two" video there where Alex and Adam explain the "don't ask don't tell" approach to saving the banks.

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Source: NPR Blogs: Planet Money | 12 Apr 2009 | 5:46 pm

The market's hurdle this week: Corporate earnings (AP)

AP - Is Wall Street still in a bear market, or beginning a bull market? Either way, it's probably still due for a major pullback.

Source: Yahoo! News: Stock Markets News | 12 Apr 2009 | 5:26 pm

Boots of recovery

Match fees are the new indicator for economic recovery
Source: BBC News | Business | World Edition | 12 Apr 2009 | 4:31 pm

UK moves towards car scrap scheme

The government is likely to introduce an incentive scheme to scrap old vehicles in exchange for new ones, the BBC learns.
Source: BBC News | Business | World Edition | 12 Apr 2009 | 4:13 pm

Claws are out for Ruth Madoff

For once, there is no one camped on the corner of Lexington Ave and 64th St. No television camera crew. No breathless newspaper reporters. Not even a lone paparazzo. For more than three months, 64th and Lex were the co-ordinates for...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Doom merchant attacks 'Mad' tipster

Jim Cramer, the ranting, raving share tipster from United States television, is in the middle of another high-profile feud, just weeks after being worsted by satirist Jon Stewart. Now, the Mad Money host is waging a war of words...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Slump changes game for firms

Smart companies will spot gaps and boost profits in the tough economic climate, according to research by New Zealand Trade and Enterprise. The research focused primarily on 13 companies on the Global Fortune 500 list for at least...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Sarah Gibbs: Innovative approach gathers strength in these tough times

There's no ignoring it. Times are tough and likely to get worse before they improve. But at Trilogy we see this difficult economic climate as an opportunity for us, our business partners and New Zealand businesses to think outside...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Giant firms squabble over trinkets

NEW YORK - Lehman Brothers and Barclays have argued over deal value, real estate and the finer points of bankruptcy law. And now, teddy bears. The bears are among thousands of trinkets including golf tees, paperweights, umbrellas...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

KiwiRail wants to boost branch line

KiwiRail is optimistic that a rail line it runs one train a week on can be improved at minimum cost to carry higher containers and attract new business. The Napier-to-Gisborne line is a marginal branch line on which KiwiRail makes...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Starting small: Robots feed and water tomatoes

CAMBRIDGE, MASSACHUSETTS - These gardeners would have green thumbs - if they had thumbs. A class of undergraduates at the Massachusetts Institute of Technology has created a set of robots that can water, harvest and pollinate...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Visa rules clip work for shearers

Stricter work visa regulations could prevent hundreds of New Zealand sheep shearers from helping Britain shear its 25 million sheep next month. For decades New Zealand and Australia have contributed about 500 professional shearers...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

New World sips steadily as Europe cuts wine

PARIS - Shun that bottle and save your euros: That's what French and Italians are saying as the recession cuts into wine consumption in traditional lands of the vine. An industry group says the crisis hasn't choked off everyone's...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Philip Gregan: Vineyard areas need new rules

The grape and wine industry is an important component of the changing face of agricultural land use. Over the past decade or so the producing area of vineyards has grown from around 6000ha to more than 30,000ha, making viticulture...
Source: New Zealand Herald - Business | 12 Apr 2009 | 4:00 pm

Market player

Handel may have been a smart financial operator
Source: BBC News | Business | World Edition | 12 Apr 2009 | 3:27 pm

Zimbabwe dollar 'not back soon'

Zimbabwe's government says the suspension of its national currency will last for at least a year.
Source: BBC News | Business | World Edition | 12 Apr 2009 | 3:21 pm

Cut in VAT 'boosts retail sales'

The chancellor's cut in VAT is working and has led to a big boost in consumer spending, a leading economics group says.
Source: BBC News | Business | World Edition | 12 Apr 2009 | 1:29 pm

China seeing 'gradual recovery'

Chinese Premier Wen Jiabao says that his country's economy is showing some signs of recovery from the global financial crisis.
Source: BBC News | Business | World Edition | 12 Apr 2009 | 11:44 am