Ken Lewis Throws Paulson, Bernanke Under Bus

Why didn't Ken Lewis tell Bank of America shareholders that the company they were acquiring was set to report an imperial asston of losses for the fourth quarter, information that would've been more useful to them before the deal went through, rather than after? 'Cause Paulson and Bernanke shoved him in the trunk of a Buick, took him to an undisclosed location and suggested in no uncertain terms he keep his trap shut, that's why! According to testimony from the Bank of America CEO's February sit down with Andrew Cuomo, Lewis was "urged to keep quiet while the two sides negotiated government funding to help BofA absorb Merrill and its huge losses," apparently for the good of the financial system and the country, and since he *is* head of America's Bank, K the the L felt urged to comply (plus the bit about harm to his body if he failed to do so).

Q: Were you instructed not to tell your shareholders what the transaction was going to be?

A: I was instructed that 'We do not want a public disclosure.'

Q: Who said that to you?

A: Paulson...

Q: Had it been up to you would you [have] made the disclosure?

A: It wasn't up to me.

Q: Had it been up to you.

A: It wasn't.

Oh, and there was also the matter of Paulson threatening to take Lewis out (of office) if he didn't do exactly as he was told.

During his testimony, Mr. Lewis described a conversation with Mr. Paulson in which the Treasury secretary made it clear that Mr. Lewis's own job was at stake. Mr. Lewis still was considering invoking his legal right to terminate the Merrill deal. Mr. Paulson was out on a bike ride when Mr. Lewis phoned to discuss the matter, according to the transcript.

"I can't recall if he said, 'We would remove the board and management if you called it [off]' or if he said 'we would do it if you intended to.' I don't remember which one it was," Mr. Lewis said. "I said, 'Hank, let's de-escalate this for a while. Let me talk to our board.' "

For his part, The Hammer is going with the story that Lewis "may have misinterpreted some remarks about the Treasury's disclosure obligations as referring to BofA's obligations."

Source: Dealbreaker | 23 Apr 2009 | 1:07 pm

Opening Bell: 04.23.09

Credit Suisse Tops Analysts, Up In Swiss Trading (Bloomberg)
"Credit Suisse rose as much as 8.2 percent in Swiss trading after reporting net income of 2 billion Swiss francs ($1.7 billion), twice the median estimate of analysts surveyed by Bloomberg News. The Zurich-based bank rebounded from a 2.15 billion-franc loss in the year-earlier period."

US Reconsiders Releasing Bank's Needs After Tests (Bloomberg)
The government is considering revamping their stress test silence rules to include disclosure about which banks are going to need further capital injections (and to what degree) and which aren't.

Reuters Survey Suggests Sales Of Existing Homes Down Slightly (Reuters)
"Economists surveyed by Reuters expect sales of existing homes to have declined slightly to a 4.7 million annual rate in March from 4.72 million units in February."

SunTrust Banks Shows First Quarter Loss (Reuters)
The southern regional had a $714.8MM Goodwill charge due to real estate which significantly affected it's earnings:

"The net loss applicable to common shareholders was $875.4 million, or $2.49 per share, compared with a profit of $281.6 million, or 81 cents a share, a year earlier. Excluding the goodwill charge, Atlanta-based SunTrust said the loss was $160.6 million, or 46 cents per share. Analysts on average forecast a loss of 46 cents per share, according to Reuters Estimates. Revenue on a taxable equivalent basis rose 1 percent to $2.24 billion. Analysts expected $2.09 billion."

Madoff's Trading Firm Draws Offers (DealBook)
"Irving H. Picard, the trustee liquidating Mr. Madoff's assets, said Wednesday that he had received three additional competing offers for the business. Last month, Mr. Picard struck a tentative deal to sell the business to Castor Pollux Securities of Boston for $15 million."

Source: Dealbreaker | 23 Apr 2009 | 12:45 pm

Steve Jobs: 'Nobody looking out for me here'

Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 12:14 pm

Starting a blog to launch a fashion career

One of the newest designers for surf and skate label RVCA doesn't have a design degree, many fashion internships on her resume or even a wealth of sewing experience. What she does have is a little unconventional: a Web site, featuring pictures of her daily outfits, that happens to draw more than a million hits a month.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 12:10 pm

Germany's Bosch warns of 'most difficult' 2009

The German industrial group Bosch said Thursday that 2009 would be one of its toughest years ever and announced plans to cut 3,000 staff worldwide. "The Bosch Group expects 2009 to be...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:09 pm

Apple gets iPhone boost

Apple Inc. said Wednesday that a 123% surge in iPhone sales helped offset slowdown in Mac sales as the company reported quarterly profit and revenue that thrashed Wall Street forecasts.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 12:07 pm

N3L Optics Brings Sport Performance Sunglass Shop to NorthPark Center

DALLAS, April 23 /PRNewswire/ -- N3L Optics is excited to announce the grand opening of its interactive sunglass store at the NorthPark Center in Dallas, Texas. N3L...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:07 pm

UPS profit falls as global downturn hits revenue

CHICAGO (Reuters) - U.S. economic bellwether United Parcel Service Inc reported lower-than-expected quarterly earnings on Thursday, saying the global downturn had taken a bite out of...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:06 pm

Top car dealer chain posts profit, sees sales boost

AutoNation, the country's largest car dealer chain, posted a profit for the first quarter of 2009 despite a 43% decline in new vehicle sales, and said it expects to see improved sales in the second half of the year.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 12:05 pm

Dire straits for state budgets

Even as they await billions in federal stimulus funds, states are racing to close a combined $121 billion budget hole in the coming weeks, according to a report released Thursday.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 12:04 pm

Stocks point higher on profit surprises (AP)

AP - Stocks are pointing to a higher open Thursday after stronger-than-expected earnings from a handful of companies boosted hopes that the economy could be stabilizing.
Source: Yahoo! News: Stock Markets News | 23 Apr 2009 | 12:04 pm

TheMerchantsGuide.com Releases 'Understanding Merchant Account Fees'

Gives Web Merchants and Direct Marketers Insight into New Credit Card Rules BOSTON, April 23 /PRNewswire/ -- TheMerchantsGuide.com announced today that it has...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:04 pm

Bank group Lloyds axes 985 staff

Lloyds Banking Group is to cut almost 1,000 staff over the next two years, as it winds up a car finance business.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 12:02 pm

AutoNation 1Q profit falls 32 pct on weak sales (AP)

AP - AutoNation Inc., the country's largest automotive retailer, said Thursday its first-quarter profit dropped 32 percent as consumers continued to avoid car purchases, but the company's results result beat Wall Street estimates.
Source: Yahoo! News: Business | 23 Apr 2009 | 12:01 pm

Altira Invests in Energy Efficiency - Transformative Energy Technology Funding For Battery and Energy Management Software Companies

DENVER, April 23 /PRNewswire/ -- Altira Group LLC, a pioneer and leader in venture capital and private equity funding for energy technology companies, today announced a pair of...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

Greenhill & Co. Reports First Quarter Earnings Per Share of $0.47

- Quarterly advisory revenue of $65.1 million; highest quarterly advisory revenue since first quarter 2008 - Pre-tax profit margin remained strong at 36%
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

Giving MBA Graduates the Edge in a Tough Job Market

BOSTON, April 23 /PRNewswire/ -- - Hult International Business School Gives Two Master's Degrees for the Price of one Hult International...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

SEI Reports First-Quarter 2009 Financial Results

OAKS, Pa., April 23 /PRNewswire-FirstCall/ -- SEI Investments Company (Nasdaq: SEIC) today announced financial results for first-quarter 2009, reporting decreases in revenues, net...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

Big Lots, Inc. Announces Participation in Upcoming Investor Events

Company Updates First Quarter Sales Guidance COLUMBUS, Ohio, April 23 /PRNewswire-FirstCall/ -- Big Lots, Inc. (NYSE: BIG) announced today that it is participating
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

ITT Educational Services, Inc. Agrees to Acquire Daniel Webster College

CARMEL, Ind., April 23 /PRNewswire-FirstCall/ -- ITT Educational Services, Inc. (NYSE: ESI), a leading provider of technology-oriented postsecondary degree programs, today...
Source: RSS feed - channel BNewsBusiness | 23 Apr 2009 | 12:00 pm

Credit Suisse returns to profit

The Swiss bank returned to profit after a strong first quarter saw it report earnings of SFr2bn after tax, compared with a loss of SFr2bn for the same quarter last year and a pre-announced loss of SFr2bn from rival UBS
Source: Financial Times - US homepage | 23 Apr 2009 | 11:56 am

Barclays to increase UK lending by £11bn

Barclays which avoided taking any money from taxpayers today pledged to lift its lending to businesses and homeowners in Britain by £11bn this year.
Source: Telegraph Finance | 23 Apr 2009 | 11:55 am

German economy 'to shrink by 6%'

The German economy will shrink by 6% this year according to a forecast from the country's leading economic think tanks.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 11:55 am

Stocks set to advance

U.S. stocks were poised for gains at Thursday's open as investors were buoyed by a wave of strong results, including Apple.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 11:55 am

Barclays expects 'deep' recession

The UK recession will be "deep and prolonged", the chief executive of Barclays is to tell its shareholders.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 11:54 am

Obama in credit card face-off

Ramping up his campaign to crack down on credit cards, President Obama will meet Thursday with executives of 14 leading companies to press his case for new consumer protections.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 11:53 am

Top10 Analyst Upgrades & Downgrades (ABB, APD, BP, BRCD, NAT, OSG, OVTI, TEVA, TRMB, WBS)

These are ten of the top analyst upgrades and downgrades that are independent of earnings news from Wall Street this Thursday morning: ABB (ABB) Cut to Hold at Societe Generale. Air Products (APD) Raised to Buy at Citigroup. BP plc (BP) Raised to Buy at RBS. Brocade Communications Systems (BRCD) Raised to Buy at Jefferies. Nordic American Tanker (NAT) Cut [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 11:45 am

Apple profit beats expectations on iPhones, iPods

SAN FRANCISCO (Reuters) - Apple Inc's quarterly profit soared past Wall Street expectations on strong sales of iPhones and iPods, underscoring the popularity of the company's relatively expensive products even in the midst of a weak economy.
Source: Reuters: Business News | 23 Apr 2009 | 11:39 am

Apple profit beats expectations on iPhones, iPods (Reuters)

Reuters - Apple Inc's quarterly profit soared past Wall Street expectations on strong sales of iPhones and iPods, underscoring the popularity of the company's relatively expensive products even in the midst of a weak economy.

Source: Yahoo! News: Business | 23 Apr 2009 | 11:39 am

Budget 2009: Facts at your fingertips

Here are the key points from Chancellor Alistair Darling's 2009 Budget and how they affect the economy public finances jobs businesses and your personal finances.
Source: Telegraph Finance | 23 Apr 2009 | 11:39 am

US hails Turkey-Armenia deal

The US, avoiding a potential row ahead of the anniversary of massacres of Armenians in 1915, has hailed a deal between Turkey and Armenia that diplomats hope will resolve one of the disputes left over from the collapse of the Soviet Union – and greatly diminish the risk of a clash between Washington and Ankara
Source: Financial Times - US homepage | 23 Apr 2009 | 11:39 am

SunTrust Banks has big first-quarter loss (Reuters)

Reuters - SunTrust Banks Inc posted its second straight quarterly loss on Thursday, hurt by charges related to the collapsing real estate market.
Source: Yahoo! News: Business | 23 Apr 2009 | 11:33 am

SunTrust Banks has big first-quarter loss

NEW YORK (Reuters) - SunTrust Banks Inc posted its second straight quarterly loss on Thursday, hurt by charges related to the collapsing real estate market.
Source: Reuters: Business News | 23 Apr 2009 | 11:33 am

Intertek shares soar on speculation of bid from Swiss rival SGS

Shares in Intertek the world's biggest tester of consumer goods jumped by more than 10pc on speculation that Swiss rival SGS is preparing a takeover bid.
Source: Telegraph Finance | 23 Apr 2009 | 11:30 am

Stock futures rise as Apple tops expectations (Reuters)

Reuters - Stock index futures pointed to a higher open on Thursday with Apple Inc set to boost technology shares after it reported strong sales even as consumers tightened their belts.

Source: Yahoo! News: Stock Markets News | 23 Apr 2009 | 11:28 am

Stock futures rise as Apple tops expectations (Reuters)

Reuters - Stock index futures pointed to a higher open on Thursday with Apple Inc set to boost technology shares after it reported strong sales even as consumers tightened their belts.

Source: Yahoo! News: Business | 23 Apr 2009 | 11:28 am

Stock futures rise as Apple tops expectations

NEW YORK (Reuters) - Stock index futures pointed to a higher open on Thursday with Apple Inc set to boost technology shares after it reported strong sales even as consumers tightened their belts.
Source: Reuters: Business News | 23 Apr 2009 | 11:28 am

Converter box sales help RadioShack beat Street

BANGALORE (Reuters) - Electronics retailer RadioShack Corp reported a higher-than-expected quarterly profit, bolstered by strong sales of its digital converter boxes, postpaid wireless and flat-panel televisions.
Source: Reuters: Business News | 23 Apr 2009 | 11:23 am

Hershey first-quarter profit rises

CHICAGO (Reuters) - Hershey Co posted higher quarterly profit, helped by price increases and market share gains.
Source: Reuters: Business News | 23 Apr 2009 | 11:20 am

SunTrust: Big loss

Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 11:16 am

Barclays pledges to boost lending by £11bn

Barclays today gave a cautious show of confidence by confirming it would pay a cash dividend before the end of the current financial year and pledging to boost lending to UK companies and individuals by £11 billion.
Source: Latest Business News from Times Online | 23 Apr 2009 | 11:14 am

Gilts continue slide as Budget 2009 sparks UK sovereign rating fears

UK government bonds continued to fall today after the largerthanexpected increase in public debt anounced in yesterday's Budget.
Source: Telegraph Finance | 23 Apr 2009 | 10:55 am

Food aid

Feeding the poor in the world's wealthiest country
Source: BBC News | Business | World Edition | 23 Apr 2009 | 10:50 am

Fiat to sign Opel stake deal on Tuesday: report (Reuters)

Reuters - Fiat will sign on Tuesday a letter of intent to buy a majority stake in General Motors' struggling Opel unit, the website of German magazine Spiegel said on Thursday, citing sources.

Source: Yahoo! News: Business | 23 Apr 2009 | 10:50 am

Fiat to sign Opel stake deal on Tuesday: report

BERLIN/FRANKFURT (Reuters) - Fiat will sign on Tuesday a letter of intent to buy a majority stake in General Motors' struggling Opel unit, the website of German magazine Spiegel said on Thursday, citing sources.
Source: Reuters: Business News | 23 Apr 2009 | 10:50 am

European stocks steady despite US cheer over Apple (AP)

AP - European stock markets were little changed Thursday ahead of an expected solid opening on Wall Street, where investors appear to have been cheered by upbeat earnings from technology firm Apple Inc.

Source: Yahoo! News: Stock Markets News | 23 Apr 2009 | 10:42 am

Dollar under pressure as euro rallies

The dollar came under pressure, giving back some of the gains made in the previous session when markets endured a day of increased volatility
Source: Financial Times - US homepage | 23 Apr 2009 | 10:38 am

Michael Grade at ITV: it seemed like a good idea at the time

When Michael Grade returned to his roots at ITV two years ago it was widely seen as a coup for the commercial broadcaster to have stolen such a charismatic and powerful force from the BBC.
Source: Telegraph Finance | 23 Apr 2009 | 10:34 am

Police investigating death of Freddie Mac official (AP)

AP - The chief financial officer of Freddie Mac, one of the mortgage giants at the heart of the nation's financial meltdown, was found dead in his basement early Wednesday morning in what police said was an apparent suicide.

Source: Yahoo! News: Business | 23 Apr 2009 | 10:28 am

Grade to step down as ITV chief

Michael Grade is to step down as chief executive of ITV by the end of 2009 but will become non-executive chairman.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 10:21 am

Cattles suspends shares on delayed accounts

Investors in Cattles were facing fresh uncertainty today after the stricken sub-prime lender suspended its shares and acknowledged that it would not be able to publish its report and accounts as required by the end of the month.
Source: Latest Business News from Times Online | 23 Apr 2009 | 10:16 am

If Banks Can Challenge Stress Tests, Are They Really Tests At All?

The purpose of the government’s stress tests of the nation’s 19 largest banks is to find out which will need capital. The evaluations are based on several artificial, and, perhaps, unrealistic criteria. One is unemployment reaching 10% and another is a further, sharp drop in real estate values. The standards used for the testing may be [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 10:14 am

ITV chairman Michael Grade to give up daytoday role

Veteran media chief is stepping down as executive chairman and the group is looking for a chief executive.
Source: Telegraph Finance | 23 Apr 2009 | 10:12 am

Treasury Talks With Chrysler May Foul Up GM (GM) Negotiations

The Treasury has started to sweeten terms for Chrysler creditors in an attempt to keep the car company out of Chapter 11. According to The Wall Street Journal, “The Treasury now proposes that the banks and other lenders accept as payment 22% of the $6.9 billion they are owed plus a 5% equity stake in Chrysler.” [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 9:59 am

TNT loses Royal Mail VAT action

TNT Post loses legal action at the European Court of Justice to remove the UK Royal Mail's VAT-free status.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 9:57 am

Treasury raises offer to Chrysler lenders: sources

NEW YORK (Reuters) - The Treasury has raised its offer to Chrysler lenders with just over a week remaining for the embattled automaker to reach deals to cut its debt, labor costs and reach an alliance with Italy's Fiat SpA, sources said on Wednesday.
Source: Reuters: Business News | 23 Apr 2009 | 9:47 am

How Ken Lewis of B of A (BAC) Saved The Global Financial System

Ken Lewis, head of Bank of America (BAC), may be the most reviled financial executive in the United States. He bought Merrill Lynch when it was hemorrhaging money. He let big bonuses to Merrill management slip by.  Some analysts believe that Merrill’s problems were so deep that they forced B of A to take TARP [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 9:40 am

ITV's Michael Grade finally takes note of critical reviews

Cigar chomping Michael Grade has finally listened to shareholders and stepped down from the daytoday running of ITV.
Source: Telegraph Finance | 23 Apr 2009 | 9:24 am

Value investing: A how to guide

Value investing in a deep recession is a bit like trying to bargain hunt at a dollar store. At first blush you're overwhelmed by the prices on just about everything. A value investor is, after all, drawn to beaten-down stocks trading at low prices relative to earnings.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 9:16 am

The Land Mine On Bank Balance Sheets

When General Growth, the big mall owner, declared bankruptcy last week, experts speculated that large banks were about to face another string of losses from commercial real estate. Bank stocks have been down over the last trading week and the Chapter 11 filing of the mall company has done little to support them. But, the [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 9:13 am

Apple (AAPL): Why Brands Matter

As the executives at Apple (AAPL) were passing around the Dom Perignon, their counterparts at other companies which design and manufacture smartphones were putting all sharp objects out of reach. In a recession, there is only so much air in any room. Smart phone sales are suffering like all consumer electronics. If the iPhone is [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 9:03 am

Revenue to name and shame tax evaders

People who deliberately evade paying tens of thousands of pounds in tax are to be "named and shamed" by the HMRC
Source: Telegraph Finance | 23 Apr 2009 | 8:59 am

eBay wins regulator approval for Gmarket deal

SEOUL (Reuters) - U.S. online auctioneer eBay Inc won final approval from South Korea's antitrust watchdog for its planned acquisition of Gmarket Inc, subject to conditions such as a commission freeze for the next three years.
Source: Reuters: Business News | 23 Apr 2009 | 8:49 am

New grab for hidden offshore cash

A campaign to squeeze tens of millions of pounds in unpaid tax from people with offshore bank accounts is launched.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 8:40 am

Budget 2009 ataglance

Source: Telegraph Finance | 23 Apr 2009 | 8:33 am

U.S. boosts offer to Chrysler lenders - reports

The U.S. Treasury has increased its offer to Chrysler's lenders in a bid to lower the automaker's debt ahead of its restructuring deadline, according to published reports.
Source: Business and financial news - CNNMoney.com | 23 Apr 2009 | 8:32 am

Credit Suisse returns to profit

Credit Suisse returns to profit for the January to March period, following a recovery by its investment banking division.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 8:23 am

FTSE holds steady as retailers rise

London equities held stead on Thursday, with retailers cheered by signs of improving conditions on the UK high street. The FTSE 100 held steady at 4,032.76, with the top three spaces on the leaderboard...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 8:22 am

London stocks decline at open (AFP)

AFP - Shares in London started in the red on Thursday as high metal prices took a toll on miners.

Source: Yahoo! News: Stock Markets News | 23 Apr 2009 | 8:16 am

Media Digest 4/23/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, a bill to restrict credit card charges cleared a key committee in Congress. Reuters reports that Ken Lewis of Bank of America (BAC) says his firm what urged by the Treasury to keep quiet about Merrill Lynch’s troubles. Reuters reports that US existing home sales probably slipped in March. Reuters writes that the Treasury has [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 8:05 am

Budget 2009: What is salary sacrifice?

Changes to pension tax relief for higher earners will put the spotlight on salary sacrifice schemes for those earning more than £100000.
Source: Telegraph Finance | 23 Apr 2009 | 7:41 am

ANC poised for victory in S Africa election

The African National Congress, the party that has held power in South Africa since the end of white rule, was on the brink of another election victory after a campaign that showed the country's economic, social and racial wounds to be far from healed
Source: Financial Times - US homepage | 23 Apr 2009 | 7:39 am

Grade to step down as ITV executive chairman

Michael Grade confirmed this morning that he would stand down as executive chairman of ITV, as the troubled broadcaster begins its search for a new chief executive.
Source: Latest Business News from Times Online | 23 Apr 2009 | 7:26 am

Asia Markets And Europe Open 4/23/2009

Markets in Asia were mostly higher. The Nikkei was up 1.4% to 8,847. The Hang Seng was 1.5% to 15,094. The Shanghai Composite rose .1% to 2,464. At the open in Europe, the FTSE was down .3% The Dax was off .9% to 4,553 and the CAC 40 was down 1.1% to 2,991. Data from Reuters and MarketWatch. Douglas A. McIntyre [...]

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Source: 24/7 Wall Street | 23 Apr 2009 | 7:23 am

Kirin eyes Australian brewery bid

Japanese brewer Kirin says it is interested in taking full control of Australian beer and wine group Lion Nathan.
Source: BBC News | Business | World Edition | 23 Apr 2009 | 7:05 am

Darling stands firm on 'extraordinary' Budget

Alistair Darling denied today that he had been overoptimistic to predict in his Budget that the British economy would pull out of recession by the end of the year.
Source: Latest Business News from Times Online | 23 Apr 2009 | 7:00 am

Falling bank stocks sink the Dow

Lackluster first-quarter results from financial firms lead to a drop of 82 points. Investors await 'stress tests.'

Nagging worries about banks upended a stock market rally Wednesday.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Freddie Mac CFO's death adds to turmoil

David Kellermann, 41, the mortgage firm's acting chief financial officer, apparently committed suicide. His death is yet another blow suffered by the government-seized financing giant.

Troubled mortgage financing giant Freddie Mac and its employees were dealt another blow Wednesday when one of the company's top executives was found dead in his Virginia home, an apparent suicide.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Falling bank stocks sink the Dow

Lackluster first-quarter results from financial firms lead to a drop of 82 points. Investors await 'stress tests.' ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Executive whining about salary caps is getting tiresome

Watching people desperately trying to hang on to their little all following a disaster is an experience, as Aristotle would have appreciated, certain to excite pity and terror in the human breast.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

California municipal-bond yields fall with advent of U.S.-backed Build America Bonds

On robust demand, California Treasurer Bill Lockyer boosts the size of a debt offering that includes the subsidized federal bonds.

California on Wednesday became the biggest issuer so far of a new type of municipal bond that has caused investors to rethink the muni market overall -- in a way that is driving down bond interest rates.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Mortgage defaults rise but homeowners stay put

More Californians are missing their mortgage payments -- some deliberately -- but fewer are having their homes repossessed. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Low expectations for Concerto condo project in downtown Los Angeles

Profits? The developer of the $300-million Concerto project would be happy to break even.

When the Concerto high-rise condominium project opens this year in downtown Los Angeles, developer Hassan "Sonny" Astani will be lucky not to lose his shirt.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Executive whining about salary caps is getting tiresome

Watching people desperately trying to hang on to their little all following a disaster is an experience, as Aristotle would have appreciated, certain to excite pity and terror in the human breast.
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Surging sales of Apple iPods, iPhones boost profit and revenue

The company reports $1.21 billion in net income on $8.16 billion in sales that include 11 million iPods, up 3% from the year-earlier period, and 3.79 million iPhones, up 123%. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Wells Fargo's first-quarter profit jumps 52% to $3.05 billion

Wells' earnings are in line with estimates. The bank says it is hiring 5,000 workers to handle a boom in mortgage refinancings. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Low expectations for Concerto condo project in downtown Los Angeles

Profits? The developer of the $300-million Concerto project would be happy to break even. When the Concerto high-rise...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Six Flags' CEO seeks a new track for debt

Mark Shapiro is pushing for an equity swap to reduce obligations by $1.2 billion. He says the theme-park chain is better positioned than some rivals to weather the recession. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

California municipal-bond yields fall with advent of U.S.-backed Build America Bonds

On robust demand, California Treasurer Bill Lockyer boosts the size of a debt offering that includes the subsidized federal bonds. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Apple drops 'Baby Shaker' game

The iPhone application, which encouraged players to quiet a crying baby with a vigorous shake, prompted outrage. ...
Source: RSS feed - channel BNPaperBusiness | 23 Apr 2009 | 7:00 am

Wells Fargo's first-quarter profit jumps 52% to $3.05 billion

Wells' earnings are in line with estimates. The bank says it is hiring 5,000 workers to handle a boom in mortgage refinancings.

Wells Fargo & Co., confirming that its profit jumped 52% to $3.05 billion in the first quarter despite the deep recession, said its mortgage volume had surged so much that the San Francisco bank was hiring 5,000 workers to help handle the load.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Surging sales of Apple iPods, iPhones boost profit and revenue

The company reports $1.21 billion in net income on $8.16 billion in sales that include 11 million iPods, up 3% from the year-earlier period, and 3.79 million iPhones, up 123%.

Shrugging off a bad economy, Apple Inc. on Wednesday reported a 15.2% jump in profit and an 8.6% uptick in revenue for its first quarter, juiced by sales of its iPhones and iPods.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Boeing, Northrop earnings disparity show shifting fortunes

Boeing's first-quarter profit falls 50%, hurt by lower demand for commercial aircraft. Northrop, highly reliant on military pacts, sees sales and net income climb. It also raises its 2009 forecast.

Two of the nation's largest aerospace companies reported sharply contrasting first-quarter financial results Wednesday as Boeing Co. said its earnings fell by half while Northrop Grumman Corp. posted a 48% jump in profit.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Mortgage defaults rise but homeowners stay put

More Californians are missing their mortgage payments -- some deliberately -- but fewer are having their homes repossessed.

More Californians are failing to make their mortgage payments than at any time in the last 20 years, but fewer of them are losing their homes, according to new figures.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Six Flags' CEO seeks a new track for debt

Mark Shapiro is pushing for an equity swap to reduce obligations by $1.2 billion. He says the theme-park chain is better positioned than some rivals to weather the recession.

Six Flags Inc., the theme-park chain owned by Washington Redskins chieftain Dan Snyder, has done a solid job of cleaning up its parks, with both revenue and attendance improving last year. But now it faces a bigger challenge trying to clean up its balance sheet.

Source: L.A. Times - Business | 23 Apr 2009 | 7:00 am

Obama to prod credit card firms on fee practices

WASHINGTON (Reuters) - President Barack Obama will weigh in on Thursday on the lending practices of U.S. credit card companies, an issue that has triggered an outcry from consumers hit with high fees and interest rates.
Source: Reuters: Business News | 23 Apr 2009 | 6:42 am

Little change in NZ markets

The New Zealand share market was little changed on light volume today as trends in the leading stocks countered each other. Telecom, the largest stock, rose 9c to 263, but the second and third largest stocks were down. Fletcher...
Source: New Zealand Herald - Business | 23 Apr 2009 | 6:21 am

Obama to prod credit card firms on fee practices (Reuters)

Reuters - President Barack Obama will weigh in on Thursday on the lending practices of U.S. credit card companies, an issue that has triggered an outcry from consumers hit with high fees and interest rates.
Source: Yahoo! News: Business | 23 Apr 2009 | 6:19 am

Lewis testified that U.S. urged silence on Merrill deal: report

(Reuters) - Bank of America Corp Chief Executive Kenneth Lewis testified under oath that U.S. Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson pressured the bank to not discuss its plan to buy Merrill Lynch & Co, the Wall Street Journal said.
Source: Reuters: Business News | 23 Apr 2009 | 5:28 am

Investor caution keeps NZ dollar weak

The New Zealand dollar was mixed today as nagging worries about the global financial system generally kept investors from taking on too much risk. By 5pm the NZ dollar was buying US55.73c, up from US55.56c yesterday. Dealers said...
Source: New Zealand Herald - Business | 23 Apr 2009 | 5:26 am

Lewis testified that U.S. urged silence on Merrill deal: report (Reuters)

Reuters - Bank of America Corp Chief Executive Kenneth Lewis testified under oath that U.S. Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson pressured the bank to not discuss its plan to buy Merrill Lynch & Co, the Wall Street Journal said.
Source: Yahoo! News: Business | 23 Apr 2009 | 5:23 am

Lion Nathan approached by Kirin for full takeover

Trans-Tasman brewer Lion Nathan has been approached by its biggest shareholder, Japanese beer-maker Kirin Holdings, to buy the remaining stock in the company. Lion Nathan is Australia's second largest brewer and one of the biggest...
Source: New Zealand Herald - Business | 23 Apr 2009 | 4:15 am

Richard Li scraps PCCW buy-out plans

Richard Li has thrown in the towel on a proposed $2bn buyout of PCCW, his Hong Kong telecommunications company after a protracted legal battle, saying the saga has been 'unnecessarily divisive to society'
Source: Financial Times - US homepage | 23 Apr 2009 | 4:00 am

Govt expands nine day fortnight plan

The Government is expanding its nine-day fortnight job support scheme to include businesses with 50 to 100 workers, Prime Minister John Key said today. When the scheme was introduced after February's jobs summit it applied...
Source: New Zealand Herald - Business | 23 Apr 2009 | 4:00 am

Could Municipal Bonds Really Default? (On the Street)

When Warren Buffett speaks, it’s usually worth paying attention. This time, the Oracle of Omaha is voicing concerns about the ability of some battered local and state governments to pay off their debts. The idea of cities and states facing insolvency is alarming for sure, and Buffett isn’t alone. Moody’s recently assigned a “negative outlook” to the creditworthiness of all the nation’s local governments. The agency has rarely made such a sweeping generalization but said the magnitude of this recession warranted the move. The comments are the latest to have shaken the once-staid world of municipal bond investing.

Traditionally, muni bonds offered lower yields — usually about 20% less — than Treasury bonds, since their income isn’t taxed. But the group was crushed last year, sending prices down and yields up. Now bargain hunters have started to emerge, attracted by yields that are as much as 70 basis points, or 0.7%, more than similar 10-year Treasurys, for example. As a result, the S&P Muni index has climbed 7% this year, compared with the nearly 6% decline in the broader stock market. 

These low prices reflect investor concerns about possible downgrades, says Daniel Solender, director of municipal bond management at Lord Abbett. The Federal Reserve’s buying spree in other areas of the bond market is also depressing yields of Treasury bonds and making municipal bonds all that more attractive. And then there is the $100 billion fiscal stimulus headed toward the states that should help offset the shortfall in tax revenue, says TD Ameritrade Chief Investment Strategist Stephanie Giroux, who adds that historically there has only been a 1% default rate for muni bonds.

“There is some risk, but if you can earn three times buying municipal bonds diversified across the United States and backed by the taxing authority of the states, maybe it’s worth it,” said Gregg Fisher, chief investment officer for advisory firm Gerstein Fisher.

The key is to pick carefully. Here are some tips for bargain-hunters:

• For the most part, it’s worth sticking with so-called general obligation bonds that finance essentials like water and sewers which can be paid back with tax revenue the city or state collects. The recent stimulus spending for health care and education has some pros dabbling with high-quality hospital and university bonds funded by those institutions’ revenue. But it may be worth paying the experts to do the picking or at least sticking with shorter-term options since stimulus spending won’t last forever.

• While most individual investors buy bonds offered by their own state for the extra tax advantage, it pays to diversify nationally by buying bonds of states facing different economic prospects. In other words, don’t invest only in states dealing with, say, a battered real estate market. While Fisher says allowing a state like California to go bankrupt would be akin to throwing it in the ocean, it’s worth protecting against an unlikely default. “In a portfolio of 20 bonds, if one defaults, you only lose at most 5%,” he says.

• Stick with shorter-term durations in general, preferably less than five years. Fisher recommends laddering municipal bonds, buying durations of one to five years, perhaps more maturing sooner if you expect inflation down the line.

• Keep an eye on bond ratings — not just the actual rating but also the trend of the rating to gauge whether the city or state’s health is improving or deteriorating. Check a state or city’s web site to find the sources of income for the bond.

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 | 23 Apr 2009 | 4:00 am

Stocks Set to Rebound on Earnings (Market Update)

News at a Glance

• Hail Steve: Apple posts 15% increase in net income.
• Futures Jump: Stocks look to recover in early trading.
• Steady Energy: Crude remains close to $49 a barrel.
• Data Coming: Jobless claims, existing home sales due.

The Lowdown

Wall Street's topsy-turvey earnings week continues to waver.

Stocks looked to open higher Thursday, rebounding from late losses after strong earnings from the tech and financial sectors. Shortly before 6 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

In tech, traders welcomed an unexpectedly strong quarter from Apple (AAPL). Strong sales of the firm's iPods and iPhones helped lift its net income 15% of that of the year-ago period. Separately, eBay (EBAY) posted a decline in net income but exceeded analysts' projections. The firm also got the nod from South Korean regulators to acquire GMarket.

In finance, Credit Suisse (CS) beat the Street on gains in its investment banking division, heretofore an albatross associated with a culture of bad investments.

In Washington, President Obama plans to meet with executives of 14 top credit card firms to push for new industry guidelines to protect consumers.

In energy, crude oil traded up 27 cents at $49.12 a barrel.

World markets were mixed. In Asia, Japan's Nikkei ended up 1.4%, while Hong Kong's Hang Seng finished up 2.7%. In Europe, the major indexes of London, Frankfurt and Paris were fairly flat in afternoon trading.

Corporate News

• Apple (AAPL) posted a 15% jump in second-quarter net income on the strength of its iPhone and iPod brands. Apple earned $1.21 billion, or $1.33 a share, up from $1.05 billion, or $1.16 a share, in the year-ago period. Apple issued third-quarter guidance below estimates, but traders appeared more concerned with celebrating the second-quarter surprise.
• Toyota (TM) is still the world's top automaker. The firm reported a 27% drop in first-quarter global sales. Volkswagen has Toyota's title in its sites for 2018.
• Credit Suisse (CS) easily bested analysts' first-quarter expectations after an unexpectedly sharp rise in trading volume yielded big gains in its investment banking division.

The Economy

• The weekly jobless claims report for last week is scheduled to be released at 8:30 a.m. by the Labor Department. In the prior week, claims came in at 610,000. Economists predict the number people seeking unemployment benefits for the first time will have risen to 639,000.
• The March reading of the annual rate of existing home sales is scheduled to be released at 10 a.m. by the National Association of Realtors. In February, the annual rate stood at 4.72 million sales. For March, economists expect the rate to have dipped to 4.65 million sales a year.

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 | 23 Apr 2009 | 4:00 am

iPhone powers Apple profits up 15pc, Jobs returning as planned

SEATTLE - Strong sales of the iPhone helped Apple lift its quarterly profit 15 per cent, well ahead of Wall Street's expectations Wednesday despite the global economic downturn. The company also said co-founder Steve Jobs still...
Source: New Zealand Herald - Business | 23 Apr 2009 | 3:30 am

Airline says bigger bums on seats will cost more

Low-cost Irish carrier Ryanair plans to introduce a 'fat tax' after more than 30,000 people supported such a move in an online poll run by the airline. The poll asked people to vote on five potential measures which would cost some...
Source: New Zealand Herald - Business | 23 Apr 2009 | 2:30 am

IRD damaging system with approach to tax disputes - KPMG

Inland Revenue and its advisers are using tortuous tactics in key disputes with business that will ultimately damage the country's voluntary compliance based tax system, an accountancy firm says. KPMG takes the example of conduit...
Source: New Zealand Herald - Business | 23 Apr 2009 | 1:30 am

Altman, Patterson, Mason Discuss Distressed Investing

Source: Bloomberg - All Podcasts | 23 Apr 2009 | 1:11 am

Online travel sites up the ante

MINNEAPOLIS - Airline booking fees charged by Travelocity, Orbitz and Expedia are on vacation throughout May. That's giving travellers who had avoided those sites a reason to reconsider. The fees are generally around US$7 (NZ$12.60)...
Source: New Zealand Herald - Business | 23 Apr 2009 | 1:00 am

Kiwis pay too much for petrol, says AA

Petrol users are paying over eight cents per litre too much when it comes to petrol taxes used for roads, according to the Automobile Association. AA spokesman Mike Noon said a law change last year effectively meant more of the...
Source: New Zealand Herald - Business | 23 Apr 2009 | 12:30 am

DeWolfe to step down as MySpace chief

Chris DeWolfe, one of the co-founders of MySpace, is to step down as chief executive of the popular social networking site just weeks after telling the Financial Times that he was 'very happy' with the company
Source: Financial Times - US homepage | 23 Apr 2009 | 12:25 am

Freddie Mac's finance chief found dead

David Kellermann, acting chief financial officer of mortgage giant Freddie Mac, was found dead in his suburban Virginia home, Fairfax County police say
Source: Financial Times - US homepage | 23 Apr 2009 | 12:02 am

Tumazos Says Recession in China Not as Severe as in U.S.

Source: Bloomberg - All Podcasts | 23 Apr 2009 | 12:01 am

Next year too late for action on global recession, IMF warns

WASHINGTON ? The International Monetary Fund has urged governments worldwide to make contingency plans for spending immediately, warning that the economy is likely to lurch into reverse this year. The IMF's World Economic Outlook...
Source: New Zealand Herald - Business | 23 Apr 2009 | 12:00 am

IMF sees 1.3% drop in global output

The global economy will contract sharply this year and recover only sluggishly in 2010, the International Monetary Fund said as it called on governments to sustain or even increase fiscal stimulus next year
Source: Financial Times - US homepage | 22 Apr 2009 | 11:55 pm

Lane Says Morgan Stanley's Balance Sheet in Good Shape

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:48 pm

Bachman Sees `Significant Upside' for Solar Stocks

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:42 pm

Kohler Says Oil Prices `Too High', Sees No Support for $50 Oil

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:41 pm

Write-Offs: 04.22.09

$$$ Bill Ackman's plan to fix the financial crisis [Portfolio]

$$$ Roots of $3 Billion Fraud Case Lie in DVD Players, Not CDOs [WSJ]

$$$ S.E.C. Has Failed Madoff Victims [Dealbook]

Source: Dealbreaker | 22 Apr 2009 | 11:40 pm

Rochdale's Bove Says Morgan Stanley Is in Turnaround Mode

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:38 pm

ICAP's Shah Says Microsoft-Yahoo Partnership Makes Sense

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:37 pm

Milsaps Says Difficult for Builders to Get Construction Loans

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 11:35 pm

iPhone sales help Apple buck trend

Apple set itself apart from most of the struggling consumer electronics sector as it reported an unexpectedly strong 9 per cent increase in revenues in the first three months of 2009, despite the depth of the recession and a lack of hot new products to draw consumers to its stores
Source: Financial Times - US homepage | 22 Apr 2009 | 11:24 pm

Divided Carphone Warehouse to stay under Dunstone

Charles Dunstone is facing a potential investor backlash after announcing plans to install himself as chairman of the two businesses that will be created from a planned carve-up of his telecommunications empire.
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

Cheese and pickle sandwich and a heart attack anyone?

You've shunned a lunchtime pasty and chips and feel virtuous tucking into a lean and healthy sandwich. Looks can be deceptive, however. Some pre-packaged sandwiches are laced with the same levels of salt as in 11 bags of crisps, according to a new study - and a cheese sandwich sold by Asda was found to have more saturated fat than a Big Mac.
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

Apple reports 15% rise in second-quarter profits on strength of iPods and iPhones

Strong sales of iPhones and iPods helped Apple fend off the worst of the recession to report a better than expected 15 per cent rise in second quarter profits.
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

ITV, YouTube and Simon Cowell miss out on Susan Boyle windfall

ITV, YouTube and Simon Cowell have missed sharing a million-pound windfall because they have failed to reach a deal to sell advertising against clips of Susan Boyle, the internet singing sensation.
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

Red all over: Chancellor reads last rites over New Labour

Matthew Parris | Anatole Kaletsky | David Wighton | Peter Riddell | Leading article | Sketch | Blog: Comment Central | Blog: Red Box | Blog: Money Central | Podcast: Maurice Fitzpatrick | Budget calculator | Graphic | Budget 2009 full coverage
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

When a break-up makes sense

Three years ago Charles Dunstone's main high street rival, the feisty John Caudwell, called the top of the market on mobile phone retailing, selling out to private equity groups for a cool £1 billion.
Source: Latest Business News from Times Online | 22 Apr 2009 | 11:00 pm

UBS Chairman: I'm Counting On You!

From: Kaspar-Villiger, Chairman

Sent: Monday, April 20, 2009 4:54 AM

To: 'All UBS staff globally'

Subject: Initial thoughts on UBS and on winning back the trust of our stakeholders / Erste Gedanken zu UBS und wie wir das Vertrauen unserer Anspruchsgruppen zurückgewinnen können

Additional language versions can be accessed on the intranet: (fra, ita)

Dear colleagues

Last Wednesday at UBS's annual general meeting I was elected Chairman of the Board of Directors by our shareholders. In assuming this post I am well aware that I have taken on a great responsibility. I also know that UBS continues to find itself in a difficult situation. No one is certain how the markets will develop. Past mistakes have shaken the trust of investors, clients and public authorities, as well as Swiss citizens. The state aid the bank has received has exposed it to the competing interests of politics. We have not yet been able to return to profitability, and many of you feel insecure. But these are problems that can be conquered.

Source: Dealbreaker | 22 Apr 2009 | 10:55 pm

Portfolio Software Still A Hot Seller Despite Sinking Stock Market (Investor's Business Daily)

Investor's Business Daily - It's not easy to navigate a business along a steady course when your customers have been rocked by severe turbulence.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 10:44 pm

Volkswagen eyes move on Porsche

Volkswagen considers audacious bid for Porsche's carmaking business in a move that would bring relief to indebted holding company
Source: Financial Times - US homepage | 22 Apr 2009 | 10:33 pm

Ebay suffers further profits fall

Profits and sales at online auction giant eBay fall for the second quarter in a row as it continues to be affected by the downturn.
Source: BBC News | Business | World Edition | 22 Apr 2009 | 10:22 pm

Hear: Pirates Have Timesheets

On today's Planet Money:

-- U.S. Treasury Secretary Tim Geithner trekked back up to Capitol Hill this week, this time for a hearing with Elizabeth Warren's Congressional Oversight Panel.

-- Even pirates need a business plan. J. Peter Pham, an analyst of African affairs at the James Madison University, looks at the economics of guns, captains, and $2 million dropped into the sea in waterproof containers. Plus, Per Gullestrup, CEO of Danish shipping company Clipper Group, has dealt with pirates first-hand -- he says they're tough negotiators.

Bonus: An IMF chart challenge.

Download the podcast; or subscribe. Intro music: A Tribe Called Quest's "Da Booty." Find us: Twitter/ Facebook/ Flickr

Read more about the economics of piracy from Peter Leeson, an economist at George Mason University on npr.org

After David Kestenbaum posted this chart from the IMF, we asked the Twitter crowd if they understood it.

They understood it, all right, but each in his or her own way.

@OnOneCondition: OH! I know, It's a jellyfish blowing little banking bubbles. What do I win?

@dmoneye: I get it. Scary & stupid.

@reneerico: Isn't the best system regulator a market that is transparent and where no participant holds market power?

@ananelson, part one: That graph is yet another illustration of how everyone conveniently forgot the "uncorrelated" part of diversification of risk.

@ananelson, part two: I do actually find it worrying that the IMF doesn't understand hyperlinks.

@MLeaverton that chart means that we're all screwed!

@DocPowers: that is what a dangerous oligopoly, unregulated markets and the myth of shared risk looks
like

@karlw00t looks like Bear Stearns and AIG had all the arrows going to them ...

@TbroOnline I understand it perfectly, it's a mushroom, actually It's a smurf house since it has a chimney

And finally, the challenge, from @bucknam:

that IMF chart is ripe for re-visualization. A good challenge for idle hands in the design studio this morning!

It's all yours. We await the results.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 10:18 pm

The Dow Jones industrials' moves since Lehman fall (AP)

AP - How far the Dow Jones industrial average has fallen or advanced each trading day since Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection on Sept. 15. Since Lehman's fall, which touched off a paralysis of the credit markets and deepened the recession, the stock market has gone through an extended period of volatility that subsided during December but that has returned in 2009. The numbers are the closing levels for the Dow:
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 10:07 pm

Treasurys dip even as stocks sell off late in day (AP)

AP - Treasurys dipped Wednesday, even as stocks fell in a late-day slump on renewed worries about problems at banks.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 9:33 pm

How the Dow Jones industrials fared Wednesday (AP)

AP - Nagging worries about banks upended a stock rally Wednesday after Morgan Stanley and credit card issuer Capital One Financial Corp. posted lackluster quarterly reports. Investors have been worried about rising levels of souring debt on bank balance sheets. A late-session drop in bank stocks left Wall Street's major benchmarks mixed.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 9:31 pm

How the Dow Jones industrials fared Wednesday (AP)

AP - Nagging worries about banks upended a stock rally Wednesday after Morgan Stanley and credit card issuer Capital One Financial Corp. posted lackluster quarterly reports. Investors have been worried about rising levels of souring debt on bank balance sheets. A late-session drop in bank stocks left Wall Street's major benchmarks mixed.
Source: Yahoo! News: Business | 22 Apr 2009 | 9:31 pm

The Obama Portfolio: Flat Today

The Obama Portfolio (Since Inception): +19.01%

Earlier: The Obama Portfolio

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

Apple (AAPL): The iPhone Saves The Day

Apple (AAPL) posted financial results for its fiscal 2009 second quarter ended March 28, 2009. Revenue was $8.16 billion and  net quarterly profit was $1.21 billion, or $1.33 per share. These results compare to revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per share, in the year-ago quarter. Gross margin was 36.4 [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 22 Apr 2009 | 8:48 pm

Oh, Yeah.

GM is defaulting.

GM Plans to Skip $1 Billion Debt Payment [The Wall Street Journal]

Source: Dealbreaker | 22 Apr 2009 | 8:47 pm

What Ever Happened With That Whole AIG Bonus Thing Anyhow?

Basically, nothing.

We suspected, and told you, dear reader, that there was very little that the government could, should or would do. Not only did they do very little, other than nearly incite a riot (including here in the comments sections), but *gasp* AIG employees in all the groups are still actually getting paid- and there are few if any restrictions on those payments going forward.

Steven Davidoff sums it up for us in "We Fought AIG and AIG Won," which amuses us to no end because it implies that AIG and "The Law" are synonymous- though we doubt Davidoff caught the overt cheer for sanctity of contract implicit in his poorly chosen title.

Just in case you might have forgotten that DealBook is a New York Times venture, Davidoff salts his piece with thinly disguised indignant rage, but the key stuff is here:

The only thing in these agreements (accessible here, here and here) that the Treasury did to pursue these retention bonuses is to deduct the $165 million in total payments from the approximately $183.5 billion made available to A.I.G. In addition, the Treasury charged A.I.G. a commitment fee of $165 million to be paid from the operating cash flow of the company. Since money is fungible, and the government has now agreed to support the company anyway, the latter requirement is meaningless.

How'd you like to be one of the AIG people who bothered to return your bonus now?

We Fought A.I.G. and A.I.G. Won [Dealbook]

Source: Dealbreaker | 22 Apr 2009 | 8:37 pm

eBay Lackluster, But Not Too Pessimistic (EBAY)

eBay Inc. (NASDAQ: EBAY) has just posted its first quarter earnings.  The online auction giant reported a non-GAAP earnings of $0.39 EPS and $2.02 billion in revenue.  Thomson Reuters had estimates at $0.34 EPS and $1.94 billion in revenue.  Keep in mind that last year in the same quarter that eBay posted revenue of $2.192 [...]

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Source: 24/7 Wall Street | 22 Apr 2009 | 8:27 pm

Workplace Tip: Keep Your Rage Impotent

Do you ever get the urge to just knock the lights out of one of your colleagues because, I don't know, he watches Two and a Half Men and insists on telling you about it, or he's constantly on the phone during business hours with his significant other, who he calls "shmoopie," or because you just straight up don't like the look on his face? We feel you. But don't do it, otherwise your name's gonna get put in a file and flagged as "crazy" and/or "dangerous," with a note to keep an eye on your ass lest you lose it again. Plus, you'll probably be forced take a course with other "dysfunctional employees" on managing your emotions and that'll be six hours you'll never get back. And if you think getting laid off is a free pass to take out some rage on whoever fired you, or the random colleagues whose asses you've just been waiting to beat down (and figured that on your way out of the building for the last time would be the perfect moment) think again! Your employer will probably have you followed to make sure you don't flip out on anyone again (probably out of fear they could be in some way implicated). On the off chance you've already gone down the path of workplace violence (big and small), share your story! You know we're always into that shit.

Recession fuels worries of workplace violence [Reuters via Cityfile]

Source: Dealbreaker | 22 Apr 2009 | 8:26 pm

Presented By:

Source: Dealbreaker | 22 Apr 2009 | 8:26 pm

Converting "Should" to "Will"

Steven Brill generates business plans like a furnace throws off heat -- with force and gusto. Now Brill has unveiled what he says may be the cure for ailing newspaper industry. It's called Journalism Online LLC, a venture undertaken along with former Wall Street Journal publisher Gordon Crovitz, and Leo Hindery Jr., a former telecommunications executive and former CEO of the nation's largest regional sports cable channel. The trio think they can convince you to pay to read articles you can already get for free. It may sound like a tough sell, but hear Brill out.

"Newspaper publishers and magazine publishers have been engaged in group suicide," Brill says. "They all decided, for reasons I can't figure out, that they were going to give their stuff away for free online, at the same time that they sell it on newsstands.... They're now seeing the consequences of it."

So sure, publishers would love to make money online from paying readers -- it's expensive taking time to pin down elusive things like. But why would readers pay?

Brill points to the subscribers who are still paying for magazines such as Newsweeek. "That number is going down -- but one of the main reasons it's going down is, you're giving it away for free" online, Brill says. "I'm not saying that you're going to have the soaring monopolistic profit margins that some newspapers enjoyed once upon a time."

But there are real profits to be made, particularly because advertisers prefer reaching readers who actively pay for the stories they're reading.

"You cannot sustain the model of independent, you know, thoughtful, well-trained reporters going out and doing the core function in a democracy...if it's all free," Brill says.

Under his plan, people could either subscribe to a full publication, to something approximating an RSS feed of articles about specific subjects or regions or to an a la carte menu of stories. People wouldn't have to visit the company's web site, but could be presented with nearly instant options of paying when clicking on a story.

He says the process of paying should be as painless as it is for iTunes -- an innovation that he says converted his children from pirates of online music to consumers paying for it. And he says if enough news sites join, readers will feel the absence of the stories they care about most quite keenly.

There are some incredibly thorny issues to resolve. It might be fairer for people to value the producers of the online content they consume, instead of just shoveling money at Internet providers. But so far that hasn't been the case. Additionally, if the cost is modest enough that readers don't mind paying, it may not do enough to replace papers' lost advertising and circulation profits.

Brill says each paper could chose its own model, and that he'd share the results of what worked best with other clients.

Brill is a big power in media circles: he's is an author and entrepreneur who founded the trade publication American Lawyer, the now defunct media criticism magazine Brill's Content, and Verified Identity Pass Inc, a private firm that uses biometric information to check the IDs of airline passengers so they can move through security swiftly.

If his process is to work, that last line on his resume -- the one where he moves people through an unpleasant process quickly -- may prove more relevant than people think.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 8:11 pm

Closing The Loop

Some discussion yesterday (You're Not So Tough After All Safecracker) caused us to wonder who exactly had put the provision that seems to forbid Tim "The Safecracker" Geithner from imposing conditions on the repayment of TARP funds.

A series of amendments to what was then H.R. 384, the "TARP Reform and Accountability Act of 2009" were offered to the rules committee on January 14th. That bill was eventually consolidated into a large mass of amendments and voted into the final bill which was passed in the house on January 28th. The Senate bill was passed on February 10th. Obama signed the bill on February 17th.

The "No Impediment" section of the bill was in the amendment packaged offered on January 14th, amendment #43, to be specific, was offered by Frank, Barney (D-MA).

Suck it, Timmy.

Source: Dealbreaker | 22 Apr 2009 | 8:06 pm

Canon may post Q1 operating profit of Y30 bln: Nikkei (Reuters)

Reuters - Japan's Canon Inc (7751.T) is expected to report an operating profit for the January-March quarter on brisk sales of single-lens reflex cameras and a weak yen, the Nikkei business daily reported without citing sources.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 7:55 pm

No Luck In Las Vegas

Realty Trac, a website that tracks foreclosures, reports today that Las Vegas has the highest rate of foreclosure filings of any U.S. city. The rate of households receiving a default or auction notice or being seized by a lender is 4.5 percent, seven times the national average. See the full list of cities here.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 6:36 pm

SEC charges Hennessee on Bayou hedge fund miss (Reuters)

Reuters - U.S. securities regulators charged a prominent hedge fund industry executive on Wednesday with failing to properly review collapsed hedge fund Bayou Group before recommending that their clients invest.
Source: Yahoo! News: Stock Markets News | 22 Apr 2009 | 6:25 pm

Metals Stocks: Copper falls for third day; gold rises above $890

Copper futures fall for a third session, deepening the slide from their highest level in six months, as gloomy earnings reports from Morgan Stanley and Boeing reinforce economic worries.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 6:11 pm

Amazon's Kindle 2 yields big margins, study finds

Amazon.com has said little about the economics of its Kindle business, but a new study suggests that the profit margins on the e-reader device are likely generous -- and leave room for future price cuts.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 6:09 pm

Freddie Mac acting CFO dead in apparent suicide

Acting chief financial officer of Freddie Mac is found dead at his home Wednesday morning in an apparent suicide.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 6:09 pm

Financial Stocks: Morgan Stanley, Wells Fargo key a volatile session

It's been another seesaw day for U.S. financial stocks as investors register mixed reactions to the latest financial results reported by banks following a rally during Tuesday’s session. Wells Fargo trades higher, while Morgan Stanley and KeyCorp lose ground.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 6:03 pm

GM to miss $1 bln debt payment due June 1: report

General Motors Corp., fighting for its survival outside of bankruptcy courts ahead of a looming deadline, reportedly plans to skip a $1 billion debt payment due June 1.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 5:48 pm

Airline Stocks: Airline shares mixed; analyst warns of shaky rally

Airlines shares are mixed after Continental Airlines reports a wider-than-expected first-quarter loss, but a note from J.P. Morgan cautions investors to beware of a recent rally in the sector.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 5:43 pm

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 5:31 pm

Peabody Says Morgan Stanley Results Are `Disappointing’

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 5:28 pm

Tweeting execs walk a fine line

Executives are increasingly using Twitter. Kai Ryssdal speaks with Cisco Chief Technology Officer Padmasree Warrior about the balance executives must find to Twitter their personal musings, yet still be ambassadors.
Source: Marketplace | 22 Apr 2009 | 5:25 pm

Marketers build brand loyalty in schools

Many marketers try to get their products into consumers' hands as early as possible to build brand loyalty. That means companies are heading to the classroom. Sean Cole reports.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

President Obama's overall grade: C+

As the Obama administration moves closer to its 100th day, commentator Robert Reich gives his report card.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

An overflow of green marketing

Companies are coming out in full force to show their support for green on Earth Day. But is all this green marketing effective? Jennifer Collins reports.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

How the economy is affecting the poor

The World Bank has cautioned the public to not forget about the poorest countries in this downturn. Kai Ryssdal speaks with World Bank President Robert Zoellick about how developing nations are being affected by the recession and what can be done.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

Did Roche pay too much for Genentech?

When drug maker Roche bought Genentech, it was counting on the success of the pharmaceutical company's cancer drug Avastin. But the drug didn't prevent the recurrence of colon cancer in clinical tests. Janet Babin reports.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

Credit defaults may be next big problem

President Obama is preparing to meet with credit card firms to discuss the fees and restrictions they slap on users -- which aren't helping with delinquencies. Stacey Vanek-Smith reports.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

Geithner: U.S. a big contributor to crisis

Treasury Secretary Timothy Geithner says the U.S. is largely to blame for the world's financial crisis. Steve Henn reports that the U.S. still needs the world's help to clean up the mess.
Source: Marketplace | 22 Apr 2009 | 5:24 pm

Matt Fabian Discusses Obama's Build America Bonds

Source: Bloomberg - All Podcasts | 22 Apr 2009 | 5:18 pm

Biotech Stocks: Pharmaceuticals lose ground as biotechs gain

Pharmaceutical issues settle in with losses, in part as a result of investors' reaction to quarterly earnings reported by GlaxoSmithKline, while gains for a pair of high-profile shares set the trading tone in biotechnology.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 5:10 pm

Personal Finance Daily: Fill up on index funds for portfolio mileage

Don't miss these top stories:

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 4:52 pm

Temple-Inland shares pop on profit surprise

Temple-Inland shares jump 15% after the maker of corrugated packaging and wood products beats Wall Street’s profit targets.

Source: MarketWatch.com - Top Stories | 22 Apr 2009 | 4:50 pm

Home Delivery On The Range

Count Dean Miller -- a self-described "red-blooded American capitalist" -- among those who think newspapers will be around and making money for a long time. Miller was until recently the editor of the Idaho Falls Post-Register, a job he had held for about 14 years until he locked horns one too many times with the head of his company. (Disclosure: I met Miller at a professional conference at the Poynter Institute in St. Petersburg and have kept in friendly contact since.)

I spoke with Miller because of a fact that often gets overlooked: While most of the ink, blood and tears spilled over newspapers involves big-city dailies, smaller papers have tended to fare better. He says many of the most influential regional papers in the country have forgotten to focus carefully enough on their local readers and advertisers and are weighed down by major debt.

But he offers lessons for the bigger names in the newspaper industry, culled in no small part from his experiences in eastern Idaho.

First: Take a deep breath and take print advertising seriously. While classified advertising has nearly evaporated in the age of Craigslist, Miller argues that much of the steep declines in advertising has occurred because of the larger economy.

"Advertising on radio, TV and online is considered an annoyance," he says. "But there's a significant number of people who buy newspapers to read the ads. That's unique about newspapers. So I think a lot of people are going to get kind of spanked by their predictions of the utter demise of newspapers because they've misread some of the economic impact as fundamental business model impact."

Second: Focus on local news and content, both in reporting and market research. Save the poetry for a yarn that's worth it. Study your market. Invest in software programs allow papers to, say, format incredibly detailed statistics from high school sporting events with minimal human interaction. Make the staff cuts you have to, Miller says, but don't pull punches on major institutions in your reporting. In one memorable episode, the Post-Register kicked up a firestorm when it disclosed child abuse by figures prominent in the local Boy Scout hierarchy.

"The number one reason for repeat readership is, 'This newspaper looks after my personal and civic interests,' " Miller says. "Meanwhile, everyone is wringing their hands about how the citizenry are idiots and don't care about journalism. No, they really want journalism. But they want it to be about them. So what's happened to the big papers is they've gotten into the contest to be the big Pulitzer generator and they've not done as good a job on local news as local papers have."

Third: Charge for news wherever it's consumed, in print or online. "There is no sustainable business that gives away its most expensive product," Miller says. At the Post-Register, "we've been a paid site forever. We've been sneered at, laughed at, yelled at." But he says the paper has made money both online and in print, in part by giving readers many alternatives of how often to receive the printed product at home each week.

We'll be following up on Miller's final plank with an interview with Steven Brill, one of the forces behind a high-powered new venture called Journalism Online LLC. The group seeks to create a news portal that would gather up news articles and content that have previously been provided online for free -- and then convince readers to pay for it.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 4:08 pm

How Far Down?

Here's a new report from S&P on the state of residential mortgage-backed securities. It says that of the $3.7 trillion issued since 2004, what's left is now valued at just $1.7 trillion. And that there could be another $375 billion to come.

Mike Thompson, whom we've had on the podcast, worked on the report. He told the Wall Street Journal:

"There are going to be more defaults, but the worst of the big downward lurches are probably over and the systemic threat from the residential mortgage market is diminished."

The International Monetary Fund yesterday estimated total losses on all kinds of toxic assets globally. It put the number at $4.1 trillion.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 4:00 pm

The Chart That Blew My Mind

Man, I do not envy whoever gets the job of regulating systemic risk. This chart is from the IMF's just released Global Financial Stability Report and it's an attempt to show (yes, those numbers mean something) how all these institutions were linked by credit default swaps.

Press summary here, and the full report.

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 3:27 pm

The Search For Hope

Some days, it's hard telling whether you're being more responsible by looking at the news or away from it. Police say David Kellermann, the 41-year-old chief financial officer of Freddie Mac, killed himself in the basement of his Virginia home this morning. And investigators in Maryland now say the strain of debt and foreclosure may have played a role in a father's killing of himself, his wife and their three children last week.

If you prefer the news in numbers, take two: The IMF estimates that banks and other financial institutions worldwide will lose a total of $ 4.1 trillion in the financial crisis, against the $1.1 trillion the G20 pledged for the recovery.

Or, you could consider the opportunities a little farther afield.

The Space Business Forum, a project of the Space Foundation, sends word that you can still make the early-bird deadline for its June confab in New York. Apparently, there really is hope somewhere, out there:

"The Space Foundation's recently released The Space Report 2009 revealed that, despite the difficult economy, the global space business grew more that 2.5 percent in 2008, with some commercial sectors growing at rates over 30 percent," said Elliot Pulham, chief executive officer of the Space Foundation.

"As space becomes increasingly integrated into the mainstream consumer market, Wall Street is looking for more - and better - information about the sector. Space Business Forum: New York will provide the kind of data the financial community is looking for in an up-close-and-personal format that will permit real examination of the issues and opportunities."

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Source: NPR Blogs: Planet Money | 22 Apr 2009 | 3:14 pm