March, 2009
Pink picks
Comment, analysis and other offerings from Monday’s FT,
Henry Paulson: Reform the architecture of regulation
The former Treasury secretary argues that we will need to reflect on the long-held premise that sophisticated investors have the wherewithal to look out for themselves and require minimal,
Snap news
The latest on Wednesday,
- IBM in talks to buy Sun Microsystems – WSJ.
- Old Mutual to close Old Mutual Bermuda to new business — statement.
- SIG Plc to raise £341.3m in rights issue — statement.
Congress threatens AIG on bonuses
Congressional leaders threatened emergency legislation on Tuesday to claw back $165m of bonuses paid by AIG as the insurance group’s chief executive prepared for a grilling on Capitol Hill on Wednesday.
Hedge funds may get AIG cash
Some hedge funds that bet on a falling US housing market could benefit from emergency funds the US government paid to bail out AIG, reports the WSJ, citing documents that show how Wall Street banks were middlemen in trades with hedge funds and AIG that left the insurer holding the bag on billions of dollars of assets tied to souring mortgages.
Goldman seeks backers for new fund
Goldman Sachs is looking to raise potentially several billion dollars from external investors for a new global fund that will invest in the debt of troubled companies. The fund, which will invest in stressed and distressed debt,
RBS benefits from ‘buoyant’ activity
RBS has benefited from “buoyant” corporate banking activity in its key markets since the turn of the year, its chairman told the FT on Tuesday. Sir Philip Hampton also flagged other “positives” in 2009 for RBS,
Paulson & Co go for gold
Paulson & Co spent $1.28bn buying Anglo American’s stake in gold miner AngloGold Ashanti on Tuesday as the New York hedge fund moved from betting against banks to betting against governments. Paulson,
BoJ eyes $10bn in loans to banks
The Bank of Japan on Tuesday unveiled a draft plan to provide up to Y1,000bn ($10.1bn) in subordinated loans to large commercial banks, in the latest effort by a key central bank to stem the global economic crisis.
Geithner faces critical test over plan
US Treasury secretary Tim Geithner faces a critical test of his credibility when he unveils a much-awaited plan to take toxic assets off bank balance sheets – expected in coming days. Geithner, whose initial announcement last month on the troubled asset purchase plan disappointed the market,
US Madoff victims can claim losses
US victims of Bernard Madoff’s “Ponzi” scheme, one of the biggest investment frauds in history, will be allowed to claim sizeable tax deductions related to their losses and get refunds, according to new guidelines from the Internal Revenue Service.
Hedge funds start paying out
Hedge funds that locked up clients’ money last year have started paying out cash earlier than many had planned, in a move that could free tens of billions of dollars – and threatens another wave of hedge fund share and bond sales.
Coca-Cola’s $2.4bn China deal at risk
Coca-Cola may abandon its proposed $2.4bn takeover of China’s leading juice company after antitrust regulators signalled it would have to relinquish the China Huiyuan Juice brand after the acquisition.
Hands steps down at Terra Firma
Guy Hands is stepping down as chief executive of Terra Firma, the private equity group he founded, handing over day-to-day responsibilities for operations to Tim Pryce, a co-founder of the firm, who worked with Hands at Japanese bank Nomura.
MPs call Myners ‘bloody naive’
Lord Myners, City minister, was on Tuesday accused of being “bloody naive” after he admitted waving through Sir Fred Goodwin’s annual £700,000 Royal Bank of Scotland pension without asking how much it would cost or whether he was contractually entitled to it.
Citi chief economist to join Treasury
Lewis Alexander, Citigroup’s chief economist, is leaving the bank to join the US Treasury department, according to a Citi memo sent on Tuesday. Alexander will work as an advisor to Treasury secretary Tim Geithner on domestic financial issues.
Rio picks newcomer as chairman
Rio Tinto on Tuesday named a relative newcomer in the mining industry as its new chairman as it tries to win over investors opposing its $19.5bn fundraising deal with Chinese miner Chinalco. Jan du Plessis,
Overnight markets: Mixed
Asian stocks were mixed on Wednesday, though financial companies and automakers rose after the Bank of Japan said it may provide subordinated loans to help banks replenish capital and US housing starts surged.
CDS update: Credit underperforms
This CDS report was written by Markit’s Gavan Nolan
Credit underperformed equity today in a mixed trading session. The Markit iTraxx Europe saw its rally curtailed as the index widened by 8bp to 189bp.
Thornburg Mortgage may file for bankruptcy
Thornburg Mortgage, a provider of big mortgages on expensive properties that was badly wounded by the implosion of its funding model, may be about to give up the ghost.
The lender said on Tuesday it was considering filing for Chapter 11 bankruptcy protection after more than 18 months of liquidity problems,
Das Bond
ZIS IS WHAT HAPPENZ VEN YOU DO NOT BUY ZE DEUTSCHE PFANDBRIEFE, SCHWEINHUND!
(- a loose paraphasing there of a press release just received by FT Alphaville from Fräulein Doktor Helga Bender – Verband Deutscher Pfandbriefbanken,
Barclays, an artist’s rendition
The actual doc is injuncted. So we’ve done our own.
Related links:
A slow motion implosion at Barclays – FT Alphaville
Paulson goes for gold
That’s John not Hank, of course. And the scourge of the banking industry has just made a big bet on the yellow metal.
This statement was released by Anglo American on Tuesday afternoon. (emphasis ours)
CDS report: Markets go into reverse
After an expected bounce in the market for credit default swaps on the back of rally in equities, sentiment in the debt markets has deteriorated.
European credit derivative indices were trading wide of their closing levels on Tuesday.
Lunch Wrap
On FT Alphaville this morning,
- Barclays, tax avoidance and a full-blown government investigation.
- Barclays’ midnight gagging order.
- Aviva hates shorts.
- Time perhaps, for a short history lesson.
Markets live transcript 17 Mar 2009
Markets live chat transcript for the chat ending at 12:14 on 17 Mar 2009. Participants in this chat were: Paul Murphy, FT (PM) Neil Hume, FT (NH) PM:Hi there – welcome to Markets Live
Aviva hates shorts
This is Philip Scott.
He’s the finance director of Aviva and does he not like short sellers.
From Tuesday’s Financial Times.
Mr Scott insisted the movements in Aviva’s share price were related to shorting.
The impotence of governments and derailing of shareholder culture
HOW MUCH POWER DOES A MAJORITY SHAREHOLDER HAVE IN AN ORGANISATION? The majority shareholder has great power for that person has the majority in passing the rules of the corporation. In business the stockholders vote by how many stocks they hold.