|
|
|
|
Pandit: Let's Talk Life After The TestFollow along with Big Vik here. - This thing caused a lot of individual stress along the way - Finishing it is an important milestone - This was a stress test to handle challenges, not end challenges - If we stick to our strategy and execute like we've been executing we're going to be fine - Personally, I'm just happy it's over...I know there a lot of people who feel that way...at least 300,000 of them (Ed. Hi-ooo). - It demonstrates we've got the strength and the stability to handle whatever the economy throws out there - You know what it shoes? It shows we can go toe to toe with anyone out there. We knew we could but now the market knows it too. - Our recent history didn't put us in the best possible light - We didn't get the credit we deserve for cutting expenses - This point is obvious but I'm still going to say it: we need to keep focussing on profitability - You can now look at your clients with confidence - It doesn't matter whether we make or lose money over the next two or three quarters. - We want to pay back the TARP money with gratitude, as quickly as possible. - Compensation is not about TARP; they're two completely different issues. - Our core differentiator is our people and our talent - I believe in competitive compensation and paying people for performance 
Related: Troubled Asset Relief Program - Economy - Bank of America - ExecutivePay - Executive compensation Source: Dealbreaker | 8 May 2009 | 12:45 pm Ken Lewis: Business At Countrywide "Is On Fire...In A Positive Sense"Business at Merrill is "fine," and calls for BAC to break up are "absurd." Also, he tells Becky, Carl and Joe, Bank of America "has a great story to tell." But this is a family network and it wouldn't be appropriate. But MAN the stories he could tell. All I'll say is bottle of Boone's lighter fluid, tire iron, me, Ang. Moz, and coupla hooks. No, no, I can't say more. Want to but can't. But I'm gonna think about it in my mind right now. Just give me a minute to reminisce. Update: Lewis claims he'll be leaving BAC sometime "in the next three years." Maybe today! Update II: KL supposedly has "no idea where the leaks came from," drunk dials to the press not included. Update III: "Nobody should question the integrity of Bernanke or Paulson" [to someone off camera: "They're not here are they? Jesus you scared the piss out of me."]
Related: Bank of America - Countrywide Financial - Merrill Lynch - Joe - Ken Lewis Source: Dealbreaker | 8 May 2009 | 12:30 pm "Looks Like We Suck Less Than Everyone Previously Thought! That's All I've Got."Vikram Pandit invites you to a Town Hall on Friday, May 8, at 7:30 am NY time. The Town Hall will take place in the auditorium of 388 Greenwich Street (entrance on the 27th floor). All employees in the NY area are encouraged to attend in person. We recommend you arrive at least 15-30 minutes early to ensure you get a seat. If you are in midtown or Long Island City, you can also view from the 399 Park or Two Court Square auditoriums.
Related: New York City - Long Island City Queens - United States - Videoconferencing - New York Source: Dealbreaker | 8 May 2009 | 12:19 pm 2009 Version of a Bull Market
Source: Business Pundit | 8 May 2009 | 11:55 am Toyota reveals first annual loss in yearsToyota Motor revealed a Y766bn net loss for the quarter to March – a bigger deficit than US rival General Motors' – and warned that it would remain deeply unprofitable in the current financial yearSource: Financial Times - US homepage | 8 May 2009 | 11:49 am Policyholders could be £200 worse off under compensation scheme changesInsurance policyholders could be £200 worse off if their insurer fails under changes to be made to the Financial Services Compensation Scheme FSCS.Source: Telegraph Finance | 8 May 2009 | 11:48 am Dear Tim: Thanks, but no thanksNow that the stress tests are over, the big banks can't emphasize enough that they don't need any more help from the government.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 11:44 am World stocks up after US bank test; jobs data eyed (AP)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 11:44 am US renews sanctions against SyriaThe Obama administration has renewed its sanctions against Syria for another year, citing a continuing "national emergency" facing the US from Syria's support for terrorist organisations and weapons trade.Source: Financial Times - US homepage | 8 May 2009 | 11:43 am Indications: U.S. stock futures climb ahead of jobs reportU.S. stock futures advance on Friday as traders absorb the well-leaked details on the bank-sector stress test in advance of a key report on U.S. employment.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:40 am Stock futures point to higher open (Reuters)
Source: Yahoo! News: Business | 8 May 2009 | 11:34 am Stock futures point to higher open (Reuters)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 11:34 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:31 am Oil prices jump above $57 (AFP)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 11:29 am Toyota sees $8.6 billion annual loss (Reuters)
Source: Yahoo! News: Business | 8 May 2009 | 11:28 am Toyota sees $8.6 billion annual lossTOKYO (Reuters) - Toyota Motor Corp, the world's biggest automaker, forecast a much bigger-than-expected $8.6 billion annual loss and said it would sell about 1 million fewer vehicles this year, leaving it desperately trying to cut costs in the grip of a severe market downturn.Source: Reuters: Business News | 8 May 2009 | 11:28 am Stock futures point to shares rising; jobs data eyed(Reuters) - U.S. shares are set to rise on Friday, after stress tests for U.S. banks sparked optimism about the sector's future, and ahead of April's non-farm payroll data.Source: Reuters: Business News | 8 May 2009 | 11:28 am Carphone Warehouse nabs Tiscali UK for $355 mlnCarphone Warehouse Plc on Friday said it has struck a deal to buy the U.K. operations of Italian broadband firm Tiscali at a steep discount to the informal offer it made last year.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:26 am UPDATE 3-Carphone to buy Tiscali UK for 236 mln pounds cash* Cash buy funded from existing facilities, no debt taken onSource: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:22 am Stocks poised to reboundU.S. stock futures rose Friday after regulators finally revealed results of their stress tests on banks and ended speculation about the capital shortfalls facing financial institutions.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 11:20 am FSA clears Resolution over £5bn sale probeClive Cowdery, the insurance entrepreneur, and four other directors of Resolution were today cleared by the Financial Services Authority (FSA) of any wrongdoing in connection with the £5 billion sale of the closed life funds business to Hugh Osmond, the pubs to Pearl Insurance baron. Source: Latest Business News from Times Online | 8 May 2009 | 11:20 am German output stabilises, exports upThe latest official statistics from Europe's largest economy provide further evidence that the ferocity of the continent's recession is easing – although a return to growth still appears a long way offSource: Financial Times - US homepage | 8 May 2009 | 11:20 am Spain's Mediapro denies accord reached with PrisaMADRID, May 8 (Reuters) - Spanish media group Mediapro denied on Friday it is about to close an agreement with rival Prisa on broadcasting football matches on Prisa's pay-TV channel Digital+.Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:18 am London Markets: Banks lead gains for London sharesU.K. shares climbed on Friday, with banks such as Royal Bank of Scotland in the lead as investors eyed formal results from U.S. stress tests ahead of some data that’s expected to give some clues on the state of the U.S. economy.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:17 am Europe Markets: Banks lead sharp gains for European sharesEuropean shares rose sharply on Friday, with banks leading that advance after formal results were released from U.S. stress tests, as markets awaited data on the health of the U.S. economy.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:15 am Oil rises above $57 on economic hopesLONDON (Reuters) - Oil rose above $57 a barrel on Friday, near a six-month high, lifted by hopes of an economic recovery that could boost falling world oil demand.Source: Reuters: Business News | 8 May 2009 | 11:13 am Oil rises above $57 on economic hopesLONDON (Reuters) - Oil rose above $57 a barrel on Friday, near a six-month high, lifted by hopes of an economic recovery that could boost falling world oil demand.Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:13 am Dollar mixed as markets assess US banking outlookThe dollar fell Friday against the euro but rose against the yen as the foreign exchange market assessed the impact of "stress tests" on the struggling US banking sector. Financial...Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:07 am China CNPC seen selling $1 bln bills at 63 bp overSHANGHAI, May 8 (Reuters) - China National Petroleum Corp (CNPC) is expected to issue $1 billion in dollar-denominated three-year corporate bills on Monday at a coupon of about 63 basis points over six-month...Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:04 am Top Analyst Downgrades (EGLE, IHG, NE, PHG)These are the top pre-market analyst downgrades we have seen early this Friday morning with more than two and a half hours until the open: Eagle Bulk Shipping, Inc. (EGLE) Cut to Sell at Cantor Fitzgerald. InterContinental Hotels (IHG) Cut to Hold at Jefferies. Noble Energy (NE) Cut to Market Perform at FBR. Philips (PHG) Cut to Neutral at [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 11:04 am Top Analyst Upgrades (COST, DEO, ESC, HD, LOW, TGT, VRSN, WMT)These are some of the top pre-market analyst upgrades we have seen with about two and a half hours until the market opens this Friday morning: Costco Wholesale Corp. (COST) Started as Buy at Janney Montgomery. Diageo (DEO) Raised to Neutral at UBS. Emeritus Corp. (ESC) Raised to Outperform at Morgan Keegan. Home Depot (HD) Started as Buy at [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 11:01 am Travelport Announces First Quarter 2009 ResultsFirst Quarter Summary: - Net Revenue of $553 million and EBITDA of $119 million. - Adjusted Net Revenue of $554 million and Adjusted EBITDA of $136...Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:00 am Stock Preacher Issues Technical Trade Alerts on: AIG, AZO, BAC, BRK.A, COF, EMRVALLEY COTTAGE, N.Y., May 8 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of theSource: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:00 am Commodities Corner: Commodities' 'blue-light specials' for recoveryThe blue light is flashing in the commodities aisle and the bargains won’t last for long.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 11:00 am Stock Preacher Issues Technical Trade Alerts on: IBM, IGT, INTC, KFT, MSFT, TAGVALLEY COTTAGE, N.Y., May 8 /PRNewswire/ -- StockPreacher.com announces the availability of Trade Alerts on stocks making news today. Investors can view all of theSource: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:00 am JLL Announces Extension of Its Offer To Acquire Patheon and Take Up of Deposited Restricted Voting SharesNEW YORK, May 8 /PRNewswire/ -- JLL Partners, Inc. and its affiliate, JLL Patheon Holdings, LLC (collectively, "JLL"), announced today that as at 6:00 p.m. (Toronto...Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:00 am Best Prospect Overseas Limited Seeks Accountability From Hurray! Chairman Qindai WangBEIJING, May 8 /PRNewswire-Asia-FirstCall/ -- Best Prospect Overseas Limited sent the following letter to Qindai Wang, the Chairman and ex-CEO of Hurray! Holding Co.,...Source: RSS feed - channel BNewsBusiness | 8 May 2009 | 11:00 am Movers & Shakers: Friday's biggest moving stocksMADRID (MarketWatch) -- Among the companies whose shares are expected to see active trade in Friday's session Citigroup, Toyota and Bank of America.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 10:58 am Wall Street points higher ahead of jobs report (AP)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 10:57 am European stocks rally after 'stress tests' (AFP)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 10:55 am 1.5 years of unemployment and then ... Hired!In the middle of all the Big Three bankruptcy chatter and auto plant closings, Margaret McManus stands out. She just got a job at an auto supplier in Georgia.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 10:54 am 15,000 mortgage modifications. Get yoursTwo months ago, Ivan Coleman was struggling, his mortgage payment having ballooned to $1,200 - more than half his income. Starting June 1, his monthly payment will fall to $725.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 10:36 am What's on Obama's budget hit listEven on the campaign trail last year, President Obama pledged to cull waste from the budget. On Thursday, he pulled back the curtain on his plans.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 10:27 am Toshiba seeks £3.3bn as chip demand fallsToshiba, the giant Japanese technology company, is to raise £3.3 billion from shareholders and lenders after reporheavy losses last year. Source: Latest Business News from Times Online | 8 May 2009 | 10:26 am Asia Markets And Europe Open 5/8/2009Markets in Asia were modestly higher. The Nikkei rose .5% to 9,433. The Hang Seng was up .7% to 17,345. The Shanghai Composite rose 1.1% to 2,626. At the open in Europe, the FTSE was up .8%. The Dax rose 1% to 4,854. The CAC 40 rose 1% to 3,284. Data from Reuters and MarketWatch Douglas A. McIntyre Posted in International Markets [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 10:25 am EMI cost-cutting boosts earningsMusic giant EMI triples its annual earnings, helped by cost-cutting measures that caused a near-revolt by its artists.Source: BBC News | Business | World Edition | 8 May 2009 | 10:25 am Dollar eases ahead of payrolls dataForeign exchange markets were cautious ahead of the final major economic data release of an already eventful week, the publication of US non-farm payrolls for AprilSource: Financial Times - US homepage | 8 May 2009 | 10:18 am Tesco to spend £150m on Clubcard relaunchTesco is to spend £150 million relaunching its popular Clubcard scheme. The supermarket, which claims that one in two UK households currently use the card, said it expected to attract a further one million customers as a result of the promotion — taking it to 16 million altogether. Source: Latest Business News from Times Online | 8 May 2009 | 10:18 am 11 ways to save money nowSource: Business and financial news - CNNMoney.com | 8 May 2009 | 10:16 am The View From China: World Economy Will Get WorseChinese leaders reckon that their economy is getting better, but the world’s is getting worse and will do so for some time. Their optimism about their own country is based on the supposed intelligent actions of the central government in the face of a recession and its quick action of putting more than $500 billion in [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 10:10 am Oil rises as rally gathers paceThe price of oil rises about 8% in a week as share markets climb amid fresh hope about the world economy.Source: BBC News | Business | World Edition | 8 May 2009 | 10:09 am Maximum cash for clunkersSource: Business and financial news - CNNMoney.com | 8 May 2009 | 10:01 am Zhongwang drops in world's biggest IPO this yearShares of the major aluminum player China Zhongwang drops below its IPO price, but the reaction doesn't reflect poor market sentiment in general, and more companies may still tap the primary markets to raise funds and float their shares, analysts say.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 10:01 am 2,000 jobs at risk after Corus client ends dealCorus, the steel producer, said that up to 2,000 jobs could be lost and its facilities on Teeside mothballed after the plant's main customer walked away from a purchasing agreement. Teeside Cast Products, which is owned by Corus, has a ten-year contract to supply slab steel to a consortium of four buyers. However, the consortium has now ripped up the deal, and Corus warned that substantial redundancies may now be necessary. Source: Latest Business News from Times Online | 8 May 2009 | 10:00 am Troubling Signs That Oil Prices Could Hamper RecoveryFor the last several months, oil prices have been a bright spot in the economic picture. Most analysts believe that the recession would have been even worse than it is if oil prices had been in the $70 to $80 range. Consumers and industries like airlines would have faced even more financial pressure than they [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 9:54 am Carphone buys Tiscali's UK broadband business for £236mCarphone gets 1.7m new broadband customers in the UK in £236m deal.Source: Telegraph Finance | 8 May 2009 | 9:50 am Impairments at RBS soar to £3bnThe majority state-owned bank swung to a loss in the first quarter in spite of a jump in total income, as at the quadrupled to almost £3bn, weighing down the surge in revenues from its investment banking armSource: Financial Times - US homepage | 8 May 2009 | 9:42 am Asia stocks rally into the weekend, Nikkei up 0.5%HONG KONG (MarketWatch) -- Most Asian markets bounced off their early declines Friday with financial stocks rallying further as the U.S. bank stress tests didn't contain any nasty surprises.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 9:36 am Toyota (TM) Is MortalToyota (TM), the most successful car company of the last two decades, suffered several of the indignities that other car firms have faced for the last two years. The No.1 auto firm in the world lost money in the last quarter, a total of $6.9 billion. S&P cut the company’s rating. Toyota cut its dividend. Toyota [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 9:33 am Factory fearsGerman Opel workers wary of a Fiat takeoverSource: BBC News | Business | World Edition | 8 May 2009 | 9:28 am Insurer AIG narrows loss by 44%Embattled insurer AIG reported its sixth-consecutive quarterly loss on Thursday, but the $4.4 billion loss narrowed sharply from the previous quarter's record-setting loss.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 9:21 am Carphone to purchase Tiscali UKCarphone Warehouse is to buy Tiscali UK for £236m, creating the UK's biggest home broadband provider.Source: BBC News | Business | World Edition | 8 May 2009 | 9:20 am The Hidden TARP FundMost company budgets and some prepared by governments have a place to park unidentified expenses. Those amounts are a hedge against unexpected needs for capital, and are often called “rainy day” funds. Budgeting purists and accountants object to these rogue figures because, in their disciplines there is no such thing as an unaccounted for account. Details [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 9:20 am Toyota posts first annual loss, sees worse aheadToyota Motor Corp. said it sank into a 765.8 billion yen ($7.7 billion) net loss for the January-March quarter, bringing its loss for the full fiscal year to a bigger-than-expected 436.94 billion yen --...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 9:19 am European banks' bad debts soarLONDON/FRANKFURT (Reuters) - First-quarter results from two more European banks showed bad debts soaring in the face of tough economies, as U.S. rivals prepared to raise $75 billion to provide a cushion for the deepest recession in decades.Source: Reuters: Business News | 8 May 2009 | 9:14 am Toyota reports worst annual lossToyota, the world's biggest carmaker, makes its worst annual loss and expects to lose money again this year.Source: BBC News | Business | World Edition | 8 May 2009 | 9:12 am Carphone buys Tiscali's UK business for £236mAfter a year of on-off negotiations, Carphone Warehouse today finally acquired Tiscali's UK business, which provides broadband to 1.45 million homes, at a knock own price of £236 million. Source: Latest Business News from Times Online | 8 May 2009 | 9:02 am Being Rich Loses Its LusterBeing rich during a recession can almost be as bad as being poor. The only difference is that the rich have more to lose. RealtyTrak, a research firm that follows mortgage trends, recently reported that the foreclosure rate on homes valued at more than $729,750, also known as the jumbo-mortgage limit, rose 127% in the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 9:02 am Capitalprotected investments to be investigated by FSAInvestments that offer protection from stock market falls such as L?G's Capital Protected ? Growth plan are under investigation by the City regulator.Source: Telegraph Finance | 8 May 2009 | 9:00 am Bank shares propel Europe higherRead full story for latest details.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 8:49 am Toyota warns on profits amid first loss in 71 yearsToyota Motor, the world’s biggest carmaker, today stunned investors in Tokyo by revealing its first group full-year loss in 71 years and issuing a warning that losses in 2009 would be even worse. Source: Latest Business News from Times Online | 8 May 2009 | 8:48 am Surging loan impairments push RBS into redShares in Royal Bank of Scotland jump over 13% on Friday after the bank swings to a net loss of 857 million pounds ($1.29 billion), but reports strong growth in underlying revenues.
Source: MarketWatch.com - Top Stories | 8 May 2009 | 8:33 am European stocks rise at open (AFP)
Source: Yahoo! News: Stock Markets News | 8 May 2009 | 8:32 am Losses fall at ailing insurer AIGThe American company reports its smallest quarterly loss in 18 months, after the previous quarter's record $61.7bn lossSource: BBC News | Business | World Edition | 8 May 2009 | 8:13 am Toyota suffers big loss as sales slideRead full story for latest details.Source: Business and financial news - CNNMoney.com | 8 May 2009 | 8:07 am Media Digest 5/8/2009 Reuters, WSJ, NYTimes, FT, BloombergAccording to Reuters, stress tests results will force ten banks to have to raise nearly $75 billion. Reuters reports that Toyota (TM) lost $6.9 billion and warned of more losses ahead. Reuters writes that the NY Fed chairman resigned over potential conflicts of interest from his holdings in Goldman Sachs (GS). Reuters reports that Oracle (ORCL) will not [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 8 May 2009 | 8:01 am 3i launches £700m rights issue as deficit widens3i, the UK's oldest private equity fund, is to raise £732 million in a rights issue after it lost £1.9 billion last year. Source: Latest Business News from Times Online | 8 May 2009 | 7:45 am RBS profit wiped out by £4.9bn in bad debtsRoyal Bank of Scotland (RBS), the bank majority owned by the UK taxpayer, today reported a loss of £857 million for the first three months of the year after a £4.9 billion write down on failed investments and toxic loans all but wiped out its profits. Source: Latest Business News from Times Online | 8 May 2009 | 7:02 am Dow falls 102 points -- and under the 8,500 levelThe blue-chip index closes at 8,409 as some investors apparently decide to take profits gained in the first three days of the week. Stock futures shoot up after bank stress-test results are released. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am Villaraigosa pension board appointees quit in SEC inquirySean Harrigan, president of the Los Angeles Fire and Police Pensions board, says he has 'done nothing wrong.' A colleague, Elliott Broidy, also steps down. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am Chart: Slide in retail sales slowsIn April, fewer chains report double-digit declines; some beat Wall Street forecasts. Sales at the nation's retailers...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am CBS Corp. swings to $55.3-million lossFirst-quarter revenue falls 13% as the ad slump takes a toll on the company, whose properties include the CBS network, radio stations and billboards. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am CBS Corp. swings to $55.3-million lossFirst-quarter revenue falls 13% as the ad slump takes a toll on the company, whose properties include the CBS network, radio stations and billboards.The anemic advertising market drained the profit from CBS Corp.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am O.C. financier used investor funds as 'personal piggy bank,' report saysDanny Pang accepted $823 million from investors and paid existing investors with new investor money, 'giving rise to claims of a Ponzi scheme,' according to a court-appointed receiver. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am April sales declines aren't so bad, but don't get too excited, analysts sayAlthough sales figures seem stronger and a few retailers did really well, the retail industry isn't out of the woods. Underlying problems haven't changed, experts say.Despite smaller sales declines in April, the nation's merchants still face daunting economic conditions that are expected to hamper consumer spending for much of the year.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am O.C. financier used investor funds as 'personal piggy bank,' report saysDanny Pang accepted $823 million from investors and paid existing investors with new investor money, 'giving rise to claims of a Ponzi scheme,' according to a court-appointed receiver.Orange County financier Danny Pang, accused of defrauding Taiwanese investors, used their money as a "personal piggy bank" that funded a luxury lifestyle, including a $35-million fleet of jets and million-dollar cruises and vacations, a court-appointed receiver said Thursday.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am Bank 'stress test' results hint at economic recoveryThough 10 of 19 big banks, including BofA and Wells Fargo, are told to boost capital by $75 billion, 'the results ... should provide considerable comfort,' Fed chief Bernanke says.The nation's biggest banks are regaining their health, but some need to replenish their coffers to withstand any new difficulties, the government said in an upbeat report Thursday.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am Villaraigosa pension board appointees quit in SEC inquirySean Harrigan, president of the Los Angeles Fire and Police Pensions board, says he has 'done nothing wrong.' A colleague, Elliott Broidy, also steps down.Two of Los Angeles Mayor Antonio Villaraigosa's appointees to a city pension board resigned Thursday, one month after receiving a letter from the Securities and Exchange Commission asking them to identify income they had received from companies doing business with their agency.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am Santa Barbara merchants run hot and cold during fireSome businesses are hurting because tourists are staying away, but evacuees are keeping others bustling.As the Jesusita fire raged around Santa Barbara this week, Mitchell Sjerven decided to temporarily close his Seagrass restaurant near the normally bustling State Street.
Source: L.A. Times - Business | 8 May 2009 | 7:00 am Cuomo subpoenas debt settlement firmsFive companies in California are among those named by New York Atty. Gen. Andrew Cuomo, who calls it a 'rogue industry.' ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am Activision widens Guitar Hero franchise with three new video gamesThe company intends to use the new games -- Guitar Hero 5, DJ Hero and Band Hero -- to reach 'every category of every listener and player' and to keep momentum on its multibillion-dollar music busines...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am Bank 'stress test' results hint at economic recoveryThough 10 of 19 big banks, including BofA and Wells Fargo, are told to boost capital by $75 billion, 'the results ... should provide considerable comfort,' Fed chief Bernanke says. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am Australian stocks: Market edges higherThe Australian share market has closed marginally higher after receiving some support from banking stocks and some miners. The benchmark S&P/ASX200 index was up three points, or 0.08 per cent, at 3,941.7, while the broader All...Source: New Zealand Herald - Business | 8 May 2009 | 7:00 am SEC cracks down on investment fraudStung by criticism over the Bernard Madoff case, the SEC has stepped up enforcement efforts against investor fraud and other scams. ...Source: RSS feed - channel BNPaperBusiness | 8 May 2009 | 7:00 am US stress tests: full listUS stress tests have revealed that 10 of the country's biggest banks need more capital. Here is a list of each individual bank's requirements.Source: Telegraph Finance | 8 May 2009 | 6:56 am Ten US banks fail 'stress tests'Ten US banks need a combined $74.6bn (£50bn) of extra funds to boost their cash reserves, the government says.Source: BBC News | Business | World Edition | 8 May 2009 | 6:55 am RBS expects bad loans to mount in 2009The biggest UK banking casualty of the financial crisis warns the next two years will be tough as it slumps to a loss.Source: Telegraph Finance | 8 May 2009 | 6:52 am NZ stocks: Sharemarket posts more gainsIt was looking like a day dominated by profit-takers but the New Zealand share market turned from negative to positive in afternoon trading. The benchmark NZX-50 index closed up 18.265 points, or 0.64 per cent, at 2873.139, having...Source: New Zealand Herald - Business | 8 May 2009 | 6:00 am Share tips: Greene King Rights IssueCharles Stanley offers its advice on Greene King and ZynergySource: Telegraph Finance | 8 May 2009 | 5:59 am SEC cracks down on investment fraudStung by criticism over the Bernard Madoff case, the SEC has stepped up enforcement efforts against investor fraud and other scams.Stung by criticism that the Securities and Exchange Commission failed to prevent Bernard L. Madoff's massive Ponzi scheme, the agency has stepped up enforcement efforts to crack down on investor fraud and other scams.
Source: L.A. Times - Business | 8 May 2009 | 5:10 am Postal Service rate hike may not end funding shortfallThe agency posts a loss of $1.9 billion in its latest quarter as businesses cut back on mailing expenses.When most postal rates rise on Monday -- among other things, mailing a first-class domestic letter will cost 2 cents more -- Washington will be depending on businesses like PouchSmart Inc. of Santa Monica, which still considers the post office to be the best option for delivering its products.
Source: L.A. Times - Business | 8 May 2009 | 5:08 am Chavez extends state oil industryVenezuela's President Chavez announces plans to nationalise companies that provide services for the country's oil industry.Source: BBC News | Business | World Edition | 8 May 2009 | 5:03 am GM, Chrysler dealers unwilling to hit the roadUp to 2,000 sellers of GM and Chrysler cars are about to be told to close. Lawyers are already retained.In the next seven days, General Motors Corp. and Chrysler will tell as many as 2,000 dealers they are no longer wanted. They won't go without a fight.
Source: L.A. Times - Business | 8 May 2009 | 4:47 am NZX seeks to take control of Aust NSXNew Zealand share market operator NZX Ltd is seeking to take control of NSX Ltd, the operator of a market for small and medium sized companies in Australia. The deal has a number of twists. NZX is buying new shares so it is not...Source: New Zealand Herald - Business | 8 May 2009 | 4:00 am Warehouse third quarter sales down nearly 3pcRetail giant The Warehouse Group has reported third quarter sales down 2.8 per cent on the corresponding period last year to $383.5 million. Chief executive Ian Morrice said consumer demand remained soft in the three months to...Source: New Zealand Herald - Business | 8 May 2009 | 3:30 am Telecom earnings 'on track' on verge of mobile network launchTelecom reported third quarter figures it described as "on track", as it prepares to launch its half billion dollar-plus bid for larger mobile earnings. The company said net profits for the nine months to the end of March fell...Source: New Zealand Herald - Business | 8 May 2009 | 3:00 am US stress tests out: 10 banks need $75bnWASHINGTON - The government's long-awaited "stress-test" results have found that 10 of the nation's 19 largest banks need a total of about $US75 billion in new capital to withstand losses if the recession worsened. The Federal...Source: New Zealand Herald - Business | 8 May 2009 | 2:30 am Bernard Madoff fund manager sued for $550 million$Ezra Merkin, the New York financier who chaired GMAC, General Motors' lending arm, was sued today for more than $500 million ($£333 million) by the trustee liquidating Bernard Madoff's investment business. Source: Latest Business News from Times Online | 8 May 2009 | 2:22 am Credit applications slump in April, says Veda AdvantageConsumer credit applications in April, including credit cards, personal loans and hire purchases, fell sharply on the same month last year, says credit data company Veda Advantage. There was a 32 per cent fall in hire purchase...Source: New Zealand Herald - Business | 8 May 2009 | 2:04 am Write-Offs: 05.07.09$$$ Bank of America's Director Hunt Starts [WSJ] $$$ How Private Equity Could Rev Up the U.S. Economy [Business Week] $$$ Data Point of the Day [anal_yst]
Related: Bank of America - Business - Financial Services - Banking Services - Banks and Institutions Source: Dealbreaker | 8 May 2009 | 1:40 am Top fund manager knew Madoff was a crook, court toldNEW YORK - The trustee overseeing the liquidation of Bernard Madoff's assets sued a prominent hedge fund manager for more than $US500 million on Thursday, claiming he was aware the disgraced financier was a swindler. The complaint...Source: New Zealand Herald - Business | 8 May 2009 | 1:18 am U.S. banks race to fill $74.6 billion stress test hole (Reuters)
Source: Yahoo! News: Business | 8 May 2009 | 1:15 am U.S. banks race to fill $74.6 billion stress test holeWASHINGTON (Reuters) - U.S. regulators told top banks on Thursday to raise $74.6 billion to build a capital cushion officials hope will restore faith in financial firms and set a course out of the deepest recession in decades.Source: Reuters: Business News | 8 May 2009 | 1:15 am Google boss won't quit Apple jobEric Schmidt says resigning from Apple's board "hasn't crossed his mind" despite reports of a government antitrust inquiry.Source: BBC News | Business | World Edition | 8 May 2009 | 1:03 am BofA needs $33.9 billion, eyes stock and asset salesNEW YORK (Reuters) - Bank of America Corp, ordered by the government to find $33.9 billion of capital, said on Thursday it planned to sell assets and issue more common stock to cover the shortfall.Source: Reuters: Business News | 8 May 2009 | 12:58 am BofA needs $33.9 billion, eyes stock and asset sales (Reuters)
Source: Yahoo! News: Business | 8 May 2009 | 12:58 am Goldman, M.Stanley, others see repaying TARP soonNEW YORK (Reuters) - Goldman Sachs Group Inc , Morgan Stanley , JPMorgan Chase & Co and several other big U.S. banks said they were in a position to quickly repay Treasury capital injections after regulators released bank stress test results.Source: Reuters: Business News | 8 May 2009 | 12:38 am NY Fed chair resigns amid stock purchase questions (Reuters)
Source: Yahoo! News: Business | 8 May 2009 | 12:30 am NY Fed chair resigns amid stock purchase questionsNEW YORK (Reuters) - Stephen Friedman, chairman of the New York Federal Reserve Bank's board of directors, resigned on Thursday amid questions about his purchases of stock in his former firm, Goldman Sachs.Source: Reuters: Business News | 8 May 2009 | 12:30 am Barack Obama trims 17bn from US budgetThe colossal US defence budget was the first to be cut by President Barack Obama in his 2010 budget that aims to trim "stunning" waste by cancelling 121 projects worth 17bn.Source: Telegraph Finance | 8 May 2009 | 12:19 am Stress tests show $75bn buffer neededUS regulators ordered 10 of the nation's largest banks to add a total of $74.6bn in equity following the completion of stress tests, triggering a frenzy of activity as banks lined up to announce capital-raising plansSource: Financial Times - US homepage | 7 May 2009 | 11:59 pm Live-Blogging The JPMorgan Stress Test Conference Call- YES: Jamie Dimon just bitched out the announcer while he was reading the whole forward looking statement thing. ("Can we just skip all that and get to the call? Thanks.") - CFO Mike Cavanagh in the house - Rockin' out with our glocks out. As you might've heard, the government says we don't need shit. - We feel like it was a conservative stress test...pretty stringent...reasonable - The fact that we have such a strong position and earnings power makes us feel good - We feel good about the future of the place - Jamie has nothing to say - Guy Moszkowski has a question about "the credit card stuff." As presented rather than managed basis, does that change the bottom line? A: No. - John McDonald: With the rules of repaying TARP clarified, can you talk more on that, Jamie? - JD: The best we know right now is there will be a process for those who want to repay, which we will be involved in. - Moshe Orenbuch: John and Guy asked my questions. And we're done here.
Related: JPMorgan Chase - Jamie Dimon - CFO - Forward-looking statement - Berkshire Source: Dealbreaker | 7 May 2009 | 11:31 pm Presented By:Source: Dealbreaker | 7 May 2009 | 11:31 pm Google CEO to stay on Apple board despite antitrust inquiryMOUNTAIN VIEW, California - Google CEO Eric Schmidt says he doesn't plan to resign from Apple's board despite a government inquiry into whether the ties between the two companies violate antitrust law. Schmidt made his remarks...Source: New Zealand Herald - Business | 7 May 2009 | 11:30 pm Obama keeps partners guessing on tradeTrade watchers in Washington are divided between those who believe Mr Obama is moving rapidly towards a Clintonite position in favour of new trade deals and those who believe the president is simply moving away from the protectionist wing of the Democratic party without developing a proactive new agenda on tradeSource: Financial Times - US homepage | 7 May 2009 | 11:29 pm How the major stock indexes fared Thursday (AP)AP - Investors might think the economy is stabilizing but they're not ready to celebrate. Wall Street slid Thursday following a surge earlier in the week and as traders braced for a release of the government report cards on the nation's biggest banks and for the April jobs report on Friday.Source: Yahoo! News: Stock Markets News | 7 May 2009 | 11:15 pm Live-Blogging The Bank of America Stress Test Conference CallWhile I do Vikram, commenter Investorcluzo gets to have all the fun with a sauced up Ken Lewis. - 6:02 pm we're live! - Price: regulators are not giving credit for deleveraging of the balance sheets of MER and BAC
Related: Bank of America - Merrill Lynch - Federal Reserve System - Government - Business Source: Dealbreaker | 7 May 2009 | 11:12 pm AIG blames market disruption for lossAmerican International Group reported a $4.35bn net loss in the first quarter, reflecting continuing markdowns of the value of credit insurance sold by its financial products unitSource: Financial Times - US homepage | 7 May 2009 | 11:11 pm John Stumpf: "Thank you! You're the best."Sent: Thursday, May 07, 2009 4:40 PM
Related: Wells Fargo - John Stumpf - Wachovia - Federal Reserve System - Stock Source: Dealbreaker | 7 May 2009 | 11:10 pm Clear view of house price slumpA comprehensive review of house prices in England and Wales by the Land Registry reveals the depth of the slump.Source: BBC News | Business | World Edition | 7 May 2009 | 11:06 pm U.S. retailers confident after bright April sales (Reuters)
Source: Yahoo! News: Business | 7 May 2009 | 11:05 pm Live-Blogging The Citi Stress Test Conference Call- Vikram in the hizzous! - He's "glad the results have been announced" - The markets needed transparency and only a process like this can create transparency - The test was apparently a "rigorous and thorough process." You don't even want to know the places they looked. - Where do we go from here? 1. It's good to have the cushion to withstand economic stress, but we must remain focussed. 2. Very confident separating the Citi Corp and Citi Holdings businesses was the right step to take 3. We want to repay TARP as quickly as possibly. BUT, to be clear, we don't view repaying of TARP as a license to go back to our old business practices. - We have an enviable global network almost impossible to replicate, even if you tried, though not sure why you would - CFO Ned Kelly takes the mic - This was a milestone - The results should put the whole "capital strength issue behind us" - Geithner can S a fucking D, cause "we didn't get enough credit for expense reductions" - Guy Moszkowski has a question about conversions, which I miss - And that's it. Obviously question of the night-- WHERE THE HELL IS MEREDITH WHITNEY?
Related: Business - Troubled Asset Relief Program - Citibank - Citi Holdings - Testing Source: Dealbreaker | 7 May 2009 | 11:05 pm Cramer’s #4 Speculative Tech Pick: ON Semiconductor (ONNN, TKLC, BRCD, CDNS)Jim Cramer came out with his fourth speculative technology stock pick on CNBC’s MAD MONEY tonight. His #4 pick for the basket is ON Semiconductor Corp. (NASDAQ: ONNN). He said the company did a monster beat of earnings estimates yesterday and gave guidance that was better than expected. It acted cautiously optimistic but Cramer noted [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 7 May 2009 | 11:04 pm US stress tests find $75bn gap in bank reserves$Morgan Stanley and Wells Fargo announced multibillion-dollar capital raisings last night in response to government stress tests that uncovered a $74.6 billion ($£50 billion) shortfall in the reserves of some of America’s biggest banks. Source: Latest Business News from Times Online | 7 May 2009 | 11:01 pm Kordia still chasing trans-Tasman cable projectState-owned communications company Kordia will still present a trans-Tasman cable project to its board in September. The statement came after Research and Education Advanced Network New Zealand (Reannz), an operator of a broadband...Source: New Zealand Herald - Business | 7 May 2009 | 11:00 pm American Express files for permission to repay TARPNEW YORK (Reuters) - American Express Co asked on Thursday for permission to repay the $3.4 billion in TARP funds it received, after the U.S. government stress test showed the credit card firm is well capitalized.Source: Reuters: Business News | 7 May 2009 | 10:58 pm Oracle won't divest Sun's hardware businessBOSTON (Reuters) - Oracle Corp Chief Executive Larry Ellison said he won't sell off Sun Microsystems Inc's hardware business, dispelling speculation that he only wanted the company for its software units.Source: Reuters: Business News | 7 May 2009 | 10:44 pm New York Fed Chair Stephen Friedman Resigns Effective ImmediatelyAnd for what? Pillow talk with Lloyd Blankfein? Anyway, deputy chair Denis M. Hughes will take over for Friedman* in the interim, but we might as well nominated a permanent replacement now. Have at it. Update: Jim Cramer (did you know he once worked at Goldman Sachs?) welcomes this news. Triumph of ethics and all that jazz. He adds that the whole Goldman Government thing wouldn't always look so fishy if guys from other firms would go into public service, "which is what they tell you to do on the first day at Goldman Sachs." *Trivia: father of 25th Hour writer David Benioff, father in law of Amanda Peet
Related: Pillow - Federal Reserve Bank of New York - Stephen Friedman - Pillow talk - United States Source: Dealbreaker | 7 May 2009 | 10:29 pm Painful lessons for lenders in Chrysler debacleGeorge Schultze, one of a group of dissident creditors, will think twice before lending to another troubled company such as ChryslerSource: Financial Times - US homepage | 7 May 2009 | 10:23 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 | 7 May 2009 | 10:14 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: Business | 7 May 2009 | 10:14 pm Friedman quits New York FedStephen Friedman, the chairman of the New York Federal Reserve has resigned from his post with immediate effect.Source: Financial Times - US homepage | 7 May 2009 | 10:06 pm Biovail Raised to `Neutral' at Goldman SachsSource: Bloomberg - All Podcasts | 7 May 2009 | 10:06 pm Personal Indicator: Class Project
Kristin writes: This is an example of the "My Wish" project done by my son's second grade class. There were a few of them with this same sentiment. It breaks my heart that the kids are stressing about the economy too. We're in Rochester, MI near Chrysler HQ, and many people in our neighborhood are in the auto industry. I see more dads on the playground picking up kids from school than in years past, which is nice in a way, but also makes it clear how many lives have been recently changed. (The author's nickname is "Little Mouse" in their second grade mouse world game.) » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 9:31 pm Policy of 'printing' money is still not yielding resultsFor those who had hoped this would be the month the Bank of England dismantled the 'printing presses' yesterday will have been a real disappointment.Source: Telegraph Finance | 7 May 2009 | 9:29 pm Fabbri Sees U.S. Unemployment Peaking at 11%Source: Bloomberg - All Podcasts | 7 May 2009 | 8:54 pm Bank of England and European Central Bank extend quantitative easingAny doubts that the world's central banks have gone cold on the idea of printing money have evaporated as the European Central Bank ECB committed to quantitative easing and the Bank of England extended its own operations.Source: Telegraph Finance | 7 May 2009 | 8:43 pm FSA's stress tests on building societies will see mergers but no windfallsMost eyes are on the US banking stress tests but closer to home they're being applied to our own building societies.Source: Telegraph Finance | 7 May 2009 | 8:39 pm Edwards Says High Unemployment Reflected in Consumer SpendingSource: Bloomberg - All Podcasts | 7 May 2009 | 8:36 pm Schmieding Says ECB Focused on Managing Long-Term InflationSource: Bloomberg - All Podcasts | 7 May 2009 | 8:18 pm 25 Biggest Bank Failures in HistoryIn celebration of this week’s bank stress tests, which promise that no bank will fail, we’ve decided to release a list of 25 banks that did kick the bucket. Here they are, in rough order of failure size: 25. New Frontier Bank
Greeley, CO-based New Frontier’s failure wasn’t the largest in history, but it’s the largest in 2009—so far. The FDIC estimates it will be on the hook for close to $670 million dollars for this little failure, which had $2.5 billion in assets and $1.5 billion in deposits. New Frontier was one of 23 banks to close in April 2009. 24. The Bank of Credit and Commerce International
BCCI, founded in Karachi, Pakistan in 1972, failed in July 1991 because of widespread fraud. Once the 7th largest private bank in the world and holding over $20 billion USD in assets, regulators who investigated the firm found that it had “deliberately setup operations to avoid detection to commit fraud on a wide scale.” Lawsuits were filed against everyone from the bank’s auditors to a major shareholder from Abu Dhabi. It would become known as the $20 billion dollar heist. 23. Integrity Bank, Georgia
Alpharetta, GA-based Integrity Bank, which failed last fall, touted their strong “faith-based culture.” The FDIC estimates the bank lost up to $350 million on $1.1 billion of assets, putting receivership losses at a whopping 35%. That may be the highest loss percentage in the last 30 years—and a true test of faith, especially for the individual who owned roughly 25% of the bank’s assets. 22. Herstatt Bank, Germany
Herstatt Bank has a special place in bank failure lore, triggering a debacle that resulted in a new international regulation. German regulators seized the ailing Herstatt and forced it to liquidate on June 26, 1974. The same day, other banks had released Deutsch Mark payments to Herstatt, which was supposed to exchange those payments for US dollars that would then be sent to New York. Regulators seized the bank after it received its DM payments, but before the US dollars could be delivered. The time zone difference meant that the banks sending the money never received their US dollars. This “Herstatt Debacle” led to a new continuous linked settlement (CLS) protocol, which enables foreign banks to trade currencies without a settlement risk if one party or the other fails in their obligation. 21. The Hokkaidō Takushoku Bank, Ltd.
Possibly the most notable failure of the Asian financial crisis, “Hokutaku” went bankrupt in 1997, almost 100 years after its inception as a “special bank” to promote development on the island of Hokkaido. The bank specialized in long term, low-interest loans and debt insurance that would help grow specific sectors on the island, like fishing and agriculture. In 1939, the government deregulated Hokutaku, allowing it to offer short-term financing and bank accounts. The bank grew and eventually became involved in risky real estate investments during Japan’s late-1980s real estate bubble. The rest, as they say, is history.
The FDIC seized the Southeast Bank of Miami, the second largest bank in Florida, in September 1991. A slump in the regional commercial real estate market, combined with 1980s S&L Crisis fallout, had left the bank reeling. The FDIC seized and sold the bank to Charlotte’s First Union Corp. on September 19, 1991. Notably, the South Florida community was outraged at the takeover. Southeast had been their only hometown bank, as well as the biggest nonprofit donor in the region. Southeast was still within minimum capital standards when the FDIC flipped it in 1991, a fact emphasized by the record $200 million in profits the FDIC made in 1997 off former Southeast loans. Critics claim the feds shut down the bank too quickly, assuming its losses would become too expensive if they waited. 19. New York’s Bank of the United States
In December of 1931, New York’s Bank of the United States fell victim to “contagion,” when a string of unrelated banks fail for unrelated reasons. The bank’s name had something to do with it. Many New Yorkers felt that if the bank of the United States could fail, then any bank could fail. At the time of the collapse, the bank had over $200 million in deposits, making it the largest single bank failure in the nation’s history…until the next one.
The bank’s integrity went out the window when shady financier Michele “The Shark” Sindona purchased a controlling stake. Sindona used Franklin to launder money and build a Mafia-linked banking empire in the United States. Within two years, currency speculation, bad loans, and fraud drove Franklin into a fire sale. The Feds sent several bankers to jail, Sindona’s banking empire collapsed, and a fascinating chain of Mafioso events eventually led to Sindona being murdered in his jail cell with a cyanide capsule. 17. Home Bank of Canada
Home Bank of Canada’s failure is a study in whistleblowers and cooking the books. The manager of the Winnipeg Branch, William Machaffie, told directors in 1914 that adding unpaid interest to a principal, calculating the interest as profit, then using it to pay dividends to major shareholders comprised “cooking the books.” The bank fired him for speaking up. Nine years later, amidst an economic crisis, investors ran on the bank, and it closed. Canadian officials arrested ten Home Bank executives for fraud and “concurring with false returns,” a.k.a. cooking the books. According to Wikipedia, 60,000 prairie farmers permanently lost their savings after the bank’s collapse.
While the Great Depression may not have affected European banks as badly as those in the U.S., the Creditanstalt-Vienna is one notable example of a large healthy bank that failed. Founded by the Rothchild family in 1855, Creditanstalt became the largest bank in Austria-Hungary. A poor economy and failure to deal with dwindling deposits forced it into bankruptcy in 1931. Its failure sent shockwaves through in Europe, causing bank failures in Germany, Hungary, Czechoslovakia, and Poland. 15. Bright Banc Savings Association
Once a Texas-sized giant with more than $5 billion in assets, Bright Banc was controlled by H.R. “Bum” Bright, former owner of the Dallas Cowboys. The government seized it in 1989 after loan losses and a plummeting oil market caused it to collapse. Federal regulators sold off pieces of the bank in one their largest “clean bank” procedures ever, successfully retaining troubled assets, then selling them to private bidders after they gain value. 14. Long-Term Credit Bank of Japan
LTCB was one of the top three banks in Japan responsible for postwar economic growth. In 1989 it was considered the 9th largest company in the world by asset value. Then Japan’s asset bubble burst, poisoning LTCB with more than $19.2 billion in bad debt. In 1998, the Japanese government nationalized LTCB, then restructured it as a commercial bank named Shinsei Bank. 13. Goldome
Even the cool name couldn’t help Goldome, New York State’s largest savings institution in 1991, find investors to keep its doors open. A combination of bad acquisitions and lack of funds made the company the 6th largest bank failure in history—at the time. Keycorp and First Empire picked up the pieces of the bank. 12. Silverado Savings and Loan
What good is running a bank if you can’t give yourself and your buddies a loan? Although he was never convicted of wrongdoing, Neil Bush, son of then Vice President George H.W. Bush, was forced to pay a $50,000 fine and banned from banking activities for his role in taking down Silverado, which cost taxpayers $1.3 billion. The US Office of Thrift Supervision determined that Neil Bush had engaged in numerous “breaches of his fiduciary duties involving multiple conflicts of interest” by giving himself and his business partners loans of over $200 million USD without notifying the Silverado Board. 11. Gibraltar Savings
In April 1989, the Federal Home Loan Bank Board and the Federal Deposit Insurance Corporation took control of Gibraltar Savings of Beverly Hills, Calif., and Gibraltar Savings F.A. of Bellevue, Wash. Even though they had more capital than is required by regulators, the Board said they had to take action, ”because Gibraltar was operating in an unsafe and unsound condition and had substantially dissipated their assets.” 10. Northern Rock
Northern Rock was a stable bank until the liquidity crisis of 2007. During the liquidity crisis of 200, Northern Rock could not acquire backing from institutional lenders, who themselves were reeling from the US subprime mortgage meltdown. The Tripartite Authority (The Bank of England, the FSA and HM Treasury) lent the bank 3 billion pounds on September 12, 2007. After the news broke, Northern Trust’s stock fell 32%. Depositors ran on the bank. Unlike a classic bank run, which throws a bank into crisis, this one followed a crisis and compounded a preexisting liquidity problem. On February 17, 2008, the government nationalized Northern Rock. 9. Sachsen LB, Germany
In August of 2007, board members reported that even though Sachsen was involved in Irish and US mortgage markets, they were not exposed to sub-prime loans and held sufficient liquidity for the long term. Then, in September, worldwide markets crashed. Within the next three months, most of the board was fired or resigned. Inside consultants accused Sachsen LB of blatant accounting errors and no “visible action” to reduce risks. On the 13th of December 2007, Sachsen LB was taken over by Landesbank Baden-Wuerttemberg (LBBW), with financial guarantees of roughly EUR2.75 billion by the state of Saxony. 8. Netbank
In September of 2007, NetBank was the largest US bank to fail since the S&L Crisis in the early 1990s. The Georgia-based bank, launched during the dot-com boom of the late 1990s, had $2.5 billion in assets and was known as the “Internet only” banking leader. Poor underwriting standards coupled, underperforming loans and subprime exposure led to Netbank’s meltdown. 7. MCorp
In March, 1989, MCorp was the 36th largest US bank and the second largest banking entity in Texas. Its heavy exposure to bad energy and real estate loans pushed it into insolvency. At the time of failure, MCorp had total assets of $18 billion. It cost the FDIC $2.8 billion to the resolve this bank. 6. Bank Of New England
The Bank of New England (BNE), along with its two sister banks, Maine National Bank and Connecticut Bank and Trust, failed on January 6, 1991. In a surprising move for the time, the FDIC decided to insure all deposits- even if they exceeded the $100,000 insurance limit. BNE was the largest bank in the New England area. With its sister banks, it had assets totaling $21.8 billion and deposits totaling $19 billion. Bad loans and heavy ties with bond creditors BNE led to its downfall. A settlement provided $140 million to creditors. 5. American Savings And Loan
Stockton, CA-based American Savings and Loan reported losses of $107.5 million during the second quarter of 1984. Customers panicked and withdrew $6.8 billion from the bank. Vultures, including the Ford Motor Co., circled around the bank, looking to buy it. The Federal Home Loan Bank Board blocked Ford from buying the bank (anyone see a familiar pattern here?) and sold the bank to Texas billionaire Robert M. Bass. The FDIC contributed a total of $5.7 billion to the bank’s bailout—more than 10% of its deposit insurance fund at the time—making it one of the most expensive rescues of the Savings and Loan crisis. 4. First Republic Bank
First Republic Bank was the largest bank to fail during the savings and loan crisis in the 1980s. Texas-based First Republic is famous for the “electronic bank run” that led to its failure. In 1988, a sour Texas real estate market and a balance sheet full of nonperforming loans made investors lose faith in the bank. The majority of the bank’s depositors withdrew their money through wire transfers and ATMs. The bank failed in 1988 with total assets of $33.4 billion. Its collapse cost the FDIC $3.9 billion, making it the most expensive bank failure in US history—at the time.
The concept of “too big to fail” started with Continental Illinois National Bank and Trust. In 1984, it was the 6th largest bank in the U.S., with nearly $40 billion in assets. The bank collapsed in 1984 due to losses stemming from recently acquired Penn Square Bank. In response, the FDIC infused capital and bought preferred shares, basically nationalizing the bank. Continental’s huge number of assets, which included the largest commercial and industrial loan portfolio in the country, made it too big to fail. In addition to giving guarantees to depositors, the FDIC infused billions of dollars to recapitalize the bank. 2. WaMu
In September 2008, sparked by fears of the WaMu’s collapse, depositors withdrew roughly $16 billion dollars from the bank over a period of ten days. Washington Mutual, then the sixth-largest bank in the country, lost 10% of its total deposits during this slow motion bank run. The FDIC took receivership of the bank, then sold its subsidiaries to JP Morgan Chase for $1.9 billion. In the period of one month, WaMu went from the Wal-Mart of banking to one of the largest bank failures in history. 1. IndyMac
Los Angeles-based IndyMac used to be the largest loan originator in the country. Founded in 1995 as Countrywide Mortgage Investment, IndyMac fueled its aggressive growth through risky loan products like Alt-A mortgages, concentrating on inflated real estate markets like California and Florida, and relying heavily on borrowed funds, especially from the FHLB (Federal Home Loan Bank). The U.S. woke up to the first and largest bank failure in recent memory on July 11, 2008, when the FDIC seized the bank’s assets (over $30 billion) and closed its doors.
Source: Business Pundit | 7 May 2009 | 8:12 pm 'It's As Easy As AIG!'"It's as easy as AIG," is the slogan for AIG's Delaware-based savings and loan bank. Compared to AIG's huge insurance operations, the bank is tiny, but it was key in getting AIG assigned to its chosen regulator -- the Office of Thrift Supervision. The Office of Thrift Supervision is a federal regulator that specializes in savings and loans. As we learned in our regulatory arbitrage show, federal regulators market themselves to institutions. For AIG, the OTS was an easy pick because they offered two key bonuses: 1. regulation of its holding company These two bonuses saved AIG from having to add more regulators to its already long list. It also meant the OTS was the only agency ultimately responsible for looking over the whole AIG operation, including the problematic Financial Products division. So as a holding company regulator, the OTS isn't looking so hot at the moment. But they did do a good job regulating AIG Bank. That's something they know how to do, they have the staff and they do it well. Regulating the world biggest insurance company -- it's unclear any of our regulatory agencies are up for that job. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 8:07 pm Roque Says Slight Market Gains Due to Deeply Discounted StocksSource: Bloomberg - All Podcasts | 7 May 2009 | 7:51 pm House passes mortgage investment reform bill (Reuters)Reuters - The U.S. House of Representatives on Thursday approved a measure that would force mortgage lenders to retain a 5 percent stake in home loans that are sold to investors.Source: Yahoo! News: Business | 7 May 2009 | 7:41 pm SEC's top cop calls Madoff miss wake-up call (Reuters)Reuters - The U.S. Securities and Exchange Commission's failure to detect Bernard Madoff's $65 billion fraud is a "wake-up call," the agency's new director of enforcement told Congress on Thursday.Source: Yahoo! News: Stock Markets News | 7 May 2009 | 7:33 pm Merkle Says GM Still Loosing `Tremendous Amount of Cash'Source: Bloomberg - All Podcasts | 7 May 2009 | 7:15 pm KFC Woos Fans of Oprah and Mom Tattoos
This is my favorite story of the week. KFC is still trending on Twitter (in plain English - they’ve been tweet wildly) mostly in part to the brilliant Oprah grilled chicken giveaway. And yes, I think it was brilliant, even if some customers were frustrated. Most people are going to understand that there’s going to be a run on free stuff. But this post isn’t about Oprah. It’s about KFC and how they get it. Because hot on the heels of the Oprah coupon debacle the finger lickin’ good chicken giant is offering $10 in KFC gift checks to the first 200 people each day between today and Mother’s Day who register as the proud wearer of a mom-themed tattoos to www.KFC.com. The gift checks can be used toward the purchase of KFC’s new Kentucky Grilled Chicken for their mothers. (While photos are encouraged, submitting a photo is not required to participate in the daily giveaways.) Grand prizes include a motorcycle, a family vacation, and free chicken for a year. Love it. No tattoo? No worries. Consumers without a mom-themed tattoo can download a KFC-themed tattoo cutout paying tribute to their moms.
Seriously brilliant, in my opinion. KFC gets it. Image Credit: Sabrina Eras, Flickr
Source: Business Pundit | 7 May 2009 | 7:09 pm Consumer credit falls at fastest pace in 18 years (AP)AP - Consumer borrowing plunged in March at the fastest pace in 18 years as Americans put away their credit cards and hoarded cash amid the worst recession in decades.Source: Yahoo! News: Business | 7 May 2009 | 7:04 pm Seabreeze's Kass: Bank stocks "priced to perfection" (Reuters)Reuters - Hedge fund manager Doug Kass said he is selectively shorting U.S. financial stocks, which have more than doubled since bottoming in early March, on the belief that they have been "priced to perfection" ahead of the banks' stress test results later on Thursday.Source: Yahoo! News: Stock Markets News | 7 May 2009 | 6:56 pm Talbott Says Banks Need More CapitalSource: Bloomberg - All Podcasts | 7 May 2009 | 6:56 pm European Central Bank cuts ratesFRANKFURT -- The European Central Bank cut interest rates a quarter point and said it would buy euro-denominated bonds as well as offer longer-term credit to banks as it moves to get more money flowing through the 16-nation euro zone economy.
Source: L.A. Times - Business | 7 May 2009 | 6:20 pm Regulators Unveil Bank Stress Test ResultsAfter a weak of leaks, today’s bank stress test results are hardly surprising. From the Financial Times: The stress tests revealed that 10 of the 19 banks involved in the analysis carried out by government will need more common equity. Bank of America, Wells Fargo, GMAC and Citigroup will need to raise $33.9bn, $13.7bn, $11.5bn and $5.5bn, respectively. However, JPMorgan Chase, Goldman Sachs, American Express and State Street will need to raise no additional capital. Each bank that has been told to raise additional equity will have until June 8 to present a plan to regulators explaining how it intends to do so and until November 9 to put the plan in place. Find the entire report here (the good stuff starts at page 10).
Source: Business Pundit | 7 May 2009 | 6:13 pm Entitled To A Pell Grant? YesThis week, President Barack Obama announced that he wants to change key parts of the federal system for student aid. Among the proposals is a move to turn Pell Grants into an entitlement program, similar to Social Security. A pair of Planet Money Twitter pals began (quite civilly) duking it out over the issue. We asked Eric Sipple and JL Johnson to take it outside the 140-character box. Johnson opposes the Obama plan -- you can find his response here. Below, Sipple argues for it: I was lucky. The savings account in my name was opened when I was an infant, funded by every check, bond and $20 bill slipped into a Christmas card throughout my life. Gifts I got to keep. Money? That went into the college fund, along with whatever extra money my parents had left over after the day to day expense of raising a spoiled only child. My four-year degree took me eight to earn but left me with less than $7,000 in debt. Like I said. Lucky. The last two decades have seen a drift in the makeup of student financial assistance from grants to loans. When the Pell Grant was introduced in 1976, two years before my parents started my college fund, it covered 72 percent of the typical cost of four-year undergraduate education. By 1997, when I was sending out my college applications, it covered only 35 percent. It wasn't any better in 2006, the year after I finally earned my degree. President Obama's plan to tie Pell Grant increases to inflation is a step toward reversing that trend. Student financing is complicated enough that I supported myself for two years unwinding the process for borrowers. Sadly, the complexity is only the beginning. The worst part was the sound in people's voices when they realized all the paperwork hadn't been enough. The Stafford Loan and the Pell Grant plus the Perkins Loan would still leave them an expensive private loan short of the fall semester. Today, affording a college education means more than getting a check to your bursar. It means living for a decade or more with your accumulated debt. I have friends whose largest monthly expense is the student loan repayment they've already extended over 30 years. Thirty years. That's a mortgage. That's longer than those friends have been alive. Pell Grants can't cure that ill on their own, but boosting them is a start. It helps that we're funding it by ending subsidies to private lenders who for years have used guaranteed loans and preferred lender statuses as advertisement for their private products. Unlike welfare, student aid is more than a stopgap. It's an investment toward more affluent and productive citizens. And since all federal aid requires that students maintain a C average, we can be sure the money isn't just financing Chinese food and Yuengling. Curious what it would cost today, I looked up the cheapest school I ever attended: the University of Massachusetts Boston. In 2000, it was $4,222. Today a year of the same education would cost me $9,114. Over the same time period the Pell Grant increased by less than $1,500. Even at this inexpensive university, an eligible student would graduate with $18,000 in debt, not counting living expenses, books and fees. Think about the families my friends are starting with that kind of debt already on their shoulders. How many of their kids have a chance of being as lucky as I was? » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 7 May 2009 | 5:50 pm Entitled To A Pell Grant? NoThis week, President Barack Obama announced that he wants to change key parts of the federal system for student aid. Among the proposals is a move to turn Pell Grants into an entitlement program, similar to Social Security. A pair of Planet Money Twitter pals began (quite civilly) duking it out over the issue. We asked Eric Sipple and JL Johnson to take it outside the 140-character box. Sipple supports the Obama plan -- you can find his response here. Below, Johnson argues against the change: In his book The Audacity of Hope, then U.S. Senator Barack Obama spoke heavily on values, values that in his own words "help realize opportunity." The values of self-reliance, self-improvement, drive, discipline, temperance, hard work, and personal responsibility, says Obama, are rooted in "a confidence that each of us can rise above the circumstances of our birth [and] society as a whole will prosper." Later he states: "Our system of self-government and our free-market economy depend on the majority of individual Americans adhering to these values. The legitimacy of our government and our economy depend on the degree to which these values are rewarded." Considering these words, written less than five years earlier, I find it troubling that now President of the United States Obama has sponsored the ambitious goal of making Pell Grants an entitlement program the likes of Social Security and Medicaid. At some point in recent years, did the values of self-reliance, thrift and personal responsibility that Mr. Obama spoke of become blurred? When did Americans become comfortable in accepting handouts without clear means of repayment? Where have the American values of independence and self-reliance gone? As a people, how can we become outraged over recent federal loans (bailouts) of private industry which have clear repayment plans but look the other way when it comes to taking taxpayer money without the same repayment requirements? Finally and perhaps most importantly, how do Pell Grants reward values or incentivize success? Many individual states offer respectable and successful student aid programs which do in fact reward the positive American values that President Obama recognizes and respects. One such program, sponsored and administered by the Missouri Department of Elementary and Secondary Education is the A+ program. With this program high school students who maintain a cumulative GPA of 2.5 or higher, have at least a 95 percent attendance rate through grades 9-12, complete fifty hours of mentoring (community service), and remain drug- and alcohol-free are eligible to have their first two years of tuition at a junior or community college paid for by the citizens of the great State of Missouri ("Facts about Missouri's A+ Schools Program"). With the A+ program the State of Missouri rewards students who are dedicated to their self-improvement, who possess drive and recognize that hard work and discipline do pay off. It is my contention that state sponsored and administered programs which reward and incentivize students to succeed should take precedence over federal entitlement programs. States have historically been the incubators of innovation. Why not entrust states to take the problem of higher education into their own hands, or even model future federal programs after successful, proven state programs? Handouts do not strengthen individuals nor do they strengthen society. Instead, we must recognize, reward and incentivize the values of self-reliance, self-improvement, drive, discipline, temperance, hard work, and personal responsibility. In then Senator Obama's words, "The legitimacy of our government and our economy depend on the degree to which these values are rewarded." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 5:48 pm More mass transit users, less fundingCities across the country are experiencing increasing ridership on public transportation just as funding dries up. Ashley Milne-Tyte reports.Source: Marketplace | 7 May 2009 | 5:10 pm H-1B workers stuck in home countriesThe H-1B visa program allows skilled foreign workers to get jobs in the U.S. But many workers are having a hard time renewing their visas because of security checks. Raymond Thibodeaux reports from New Delhi.Source: Marketplace | 7 May 2009 | 5:10 pm Who's hurt by long-term unemploymentA new report shows that specific groups are being hit the hardest by long-term unemployment in this recession. Sarah Gardner reports.Source: Marketplace | 7 May 2009 | 5:10 pm Casino struggles shift Tunica's fortunesTunica, Miss., was the poorest county in the nation twenty years ago. That changed when casinos came to town and brought thousands of jobs. But the recession is hitting the casino business hard. Jeff Tyler reports.Source: Marketplace | 7 May 2009 | 5:10 pm Why Costco's sales have droppedWholesale retailer Costco said its net sales fell more than expected in April. Janet Babin explains why.Source: Marketplace | 7 May 2009 | 5:09 pm Let some big banks fail!There is lots of talk about what should happen now that the stress test results are out. Commentator Dean Baker says one thing we should consider is letting some of the big banks fail.Source: Marketplace | 7 May 2009 | 5:09 pm Analyzing the banks' stress test resultsThe stress test results are now officially public. New York bureau chief Amy Scott talks with Tess Vigeland about the new information we learned and what the results tell us about the health of the banking industry.Source: Marketplace | 7 May 2009 | 5:09 pm 25 Inspirational Mother’s Day QuotesNeed some sayings to honor your mom this Mother’s Day? You’re sure to find something in the 25 inspirational Mother’s Day quotes below: 1. A mother is not a person to lean on, but a person to make leaning unnecessary. –Dorothy Canfield Fisher 2. Mothers hold their children’s hands for a short while, but their hearts forever. –Unknown 3. Men are what their mothers made them. –Ralph Waldo Emerson 4. The heart of a mother is a deep abyss at the bottom of which you will always find forgiveness. –Honore de Balzac 5. Making a decision to have a child–it’s momentous. It is to decide forever to have your heart go walking around outside your body. –Elizabeth Stone 6. A mother is a person who, seeing there are only four pieces of pie for five people, promptly announces she never did care for pie. –Tenneva Jordan 7. All women become like their mothers. That is their tragedy. No man does. That’s his. –Oscar Wilde 8. All mothers are working mothers. –Unknown 9. It kills you to see them grow up. But I guess it would kill you quicker if they didn’t. –Barbara Kingsolver 10. Being a full-time mother is one of the highest salaried jobs… since the payment is pure love. –Mildred B. Vermont 11. When you are a mother, you are never really alone in your thoughts. A mother always has to think twice, once for herself and once for her child. –Sophia Loren 12. I regard no man as poor who has a godly mother. –Abraham Lincoln 13. …the hand that rocks the cradle - Is the hand that rules the world. –William Ross Wallace 14. An ounce of mother is worth a ton of priest. –Spanish Proverb 15. A suburban mother’s role is to deliver children obstetrically once, and by car forever after. — Peter de Vries 16. A man loves his sweetheart the most, his wife the best, but his mother the longest. — Irish Proverb Whatever else is unsure in this stinking dunghill of a world a mother’s love is not. — James Joyce 17. To a child’s ear, ‘mother’ is magic in any language. –Arlene Benedict 18. To describe my mother would be to write about a hurricane in its perfect power. –Maya Angelou 19. No matter how old a mother is, she watches her middle-aged children for signs of improvement. — Florida Scott-Maxwell 20. Sweater, n.: garment worn by child when its mother is feeling chilly. –Ambrose Bierce 21. A man’s work is from sun to sun, but a mother’s work is never done. –Author Unknown 22. You don’t really understand human nature unless you know why a child on a merry-go-round will wave at his parents every time around - and why his parents will always wave back. –William D. Tammeus 23. Children are a great comfort in your old age - and they help you reach it faster, too. –Lionel Kauffman 24. It takes a woman twenty years to make a man of her son, and another woman twenty minutes 25. The most remarkable thing about my mother is that for thirty years she served the family nothing but leftovers. The original meal has never been found. –Calvin Trillin
Source: Business Pundit | 7 May 2009 | 4:43 pm Not Loving The UAWIan writes: I am from suburban Detroit and felt that Mr. Langfitt's comments were definitely reflective of several aspects of the area and its connection to the auto industry -- and yes, it is true that nearly everyone has some relative that has worked or works for the "Big Three." That said, it should be noted that his comments seem to reflect, for the most part, only the views of UAW members. Of course I can only speak for my self, but anecdotally I know I am far from alone in having feelings of animosity towards the UAW and its overpaid members; this phenomenon of ill will is not isolated to cosmopolitan coastal cities. Yes, the auto industry has for years been the life-blood of Detroit's economy, but I think there is plenty of resentment on the part of non-UAW workers in the area who do similar jobs in other sectors of manufacturing but receive significantly less pay and benefits. And lower-paid professionals as well, such as office workers, teachers, social workers etc... who feel that they have paid for college and have worked hard, but could have the same pay and benefits if they had landed an unskilled or semi-skilled union job out of high school. Even if we do get discounts from family members at the dealerships (my grandfather worked for Ford, not that I have ever been able to afford a new car), the inflated wages of UAW members are reflected in the prices or gutted out of the quality of those cars in the first place. Everyone has heard stories of autoworkers taking two hour lunch breaks or the afternoon off because their union-negotiated quotas are ridiculously low. This causes jealousy and disdain. Even if things are changing -- and they certainly are -- the UAW has created a culture in which people believe they are entitled to a comfortable middle-class lifestyle without any sort of post-high school education or without developing any specialized set of skills. Don't get me wrong, I think everyone should have a comfortable life, including health insurance and a living wage. But the level of expectations for prosperity that autoworkers have had over the past few generations are totally unsuited for today's economy. Personally, I feel that it's time to move on to other industries that will actually be profitable and that only a miniature version of the auto industry should remain. The challenge is that Detroit needs a new generation of workers that have a more robust set of skills. If the UAW had instituted comprehensive vocational training programs instead of pay raises for the past three generations, Detroit's manufacturing wealth could have propelled it into a new phase of prosperity. Instead, we are left with a the biggest industrial hangover in the country and no clear way forward. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 4:22 pm Clayton Homes’ iHouse a PR Score for Warren Buffet
Warren Buffet may have announced a dismal quarter, but Berkshire Hathaway-owned Clayton Homes just released a PR hit. Fast Company has more on the iHouse, a prefabricated home pimped out with energy-saving features: The house comes in two packages: the $74,900, 723-square-foot i-house I, and the $93,300, 1,023-square-foot i-house II. Both homes can be configured in at least seven different ways and come with a number of standard features, including galvanized metal roofing, corrugated steel siding, a butterfly roof with rainwater collection, and non-VOC paints. Customers can also tack on solar panels, tankless water heaters, and low-flow faucets for a price. Clayton’s i-house will likely be attractive to first-time home buyers due to its low price, but the modular home could also appeal to anyone searching for a cheap, energy-efficient vacation home. The company, which has sold 1.5 million homes since its start in 1934, expects to sell 2,000 i-houses per year within 18 months of its launch. The iHouse’s design making it appealing for uses beyond the trailer park, eg. as a vacation home. It’s not cheap, especially when you factor in land purchase, but a worthy jab at mainstreaming green homes. It would be nice to see a smaller, cheaper version. As it is, I don’t see any reason to buy an iHouse over a deeply discounted McMansion. PR-wise, however, it’s a hit. The trailer is progressive, attractive to a niche market, and eco-friendly. It borders on being hip–not bad for old Warren Buffet. And the amount of attention the iHouse is garnering can only help BRK’s reputation. Now, if they would only update their Berkshire Hathaway activewear collection.
Source: Business Pundit | 7 May 2009 | 4:21 pm Baum Says New U.S. Auto Market Will Resemble Europe'sSource: Bloomberg - All Podcasts | 7 May 2009 | 4:16 pm Haynes Says Stress Tests Are Milestone in Restoring ConfidenceSource: Bloomberg - All Podcasts | 7 May 2009 | 4:15 pm This Week’s Weird Jobs
1. Orlando: In need of a Surgical Externship (Free Help) Surgical Technology student, that has accomplished many tasks while in school is need of a externship site. I am bilingual, eager to learn, and familiar with medical offices and excellent patient care. I am hands on, and a quick learner. Please give a student a chance. Would like a multi-specialty office with surgeons that I would be able to assist in pre, intra and post operative care. * Compensation: 2 months of free help I’m not sure whether to admire this person for their creativity–re-branding an externship as “free help”–or to feel sad that they’re offering themselves up like that. Serious Inquires Only - Leave your name,contact number,time of availability. All Shot Girls must use uniforms - bikinis and heels…. Some uniform. 3. Las Vegas: Need some macho-men to unload a moving truck We need 2 guys to unload boxes and furniture from a moving truck into guest house. I’ll be happy to provide some cool beverages. Thanks!! =) Bushy mustaches, sculpted biceps, and distinctive resemblance to Magnum, P.I.-era Tom Selleck preferred. 4. Nebraska: Social Network Website Promoter We are a company that is expanding to Lincoln. We are looking for people to promote our social website to others at Lincoln’s finest clubs, bars and the University. What we are talking about is the next generation of social networking platform that lets someone create a profile similar to other social networks, except this technology allows you (the promoter), to make money by getting people to give our site a try. ABSOLUTELY FREE TO SIGN-UP! This job sounded legitimate until I read that last, blaring sentence. iam in need of a hansyman for a day to help move in beds and put them together. Does he just misspell handyman, or does using “hansy man” in the same sentence as “beds” mean something more sinister? Happy Friday!
Source: Business Pundit | 7 May 2009 | 3:39 pm Were We Wrong?We've been saying for weeks that these bank stress tests are a bit of a ... I don't want to say "joke." Let's just say that we've expressed the view that not many investors or folks on Wall Street take them all that seriously. We knew, in the beginning, that they aren't pass/fail, which we took to mean they are a bit of a whitewash. I don't know what to think of them now. I do know that we'll find out soon how "the market" (that final judge, it seems) views them. And it should be clear, pretty soon, if we were wrong in saying these things are irrelevant. Felix Salmon once told me that what he loves about blogging is that you get to find out very quickly how wrong you are. I'm trying to join him in feeling all excited about that. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 2:48 pm Jobless Claims FallThe U.S. Department of Labor Ian Shepherdson sees real good -- and really good -- news in that: A clear turn is now visible in the claims numbers. The eight-week moving average has now fallen for for straight weeks, and the four-week average has dropped by 36K from its early April peak. This is too big a move just to be noise. Claims can probably fall a good deal further before they hit the wall; they surged by 200K as companies panicked in the six months after the Lehman bust. With activity now apparently bouncing as fear of another Lehman fades, layoffs will drop sharply. But a sustained fall to the sub-350K pace consistent with strong growth is still a very long way off. That requires household deleveraging and healthy banks, and that's not a story for this year. We're getting there. Planet Money is spending much of the morning sitting around a table in a heavily guarded room, where we'll be critiquing past podcasts and the blog. The Treasury is expected to release whatever news we don't already know about the banks' stress tests -- thanks, Calculated Risk, for keeping score -- so we'll leave you for now with this comforting headline from the LA Times: "Big banks' 'stress test' results to be reassuring, Geithner says." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 7 May 2009 | 2:32 pm Why Education Matters
Source: Business Pundit | 7 May 2009 | 11:53 am
|
