March, 2009
Returned to TARP
From the Reformed Broker:
Iberiabank (IBKC) has become the first financial institution out of over 440 to return TARP funds back to the federal government. Iberiabank basically said, “Look, you told us all to participate and take the money,
One giant drop of cash for mankind?
European Union ministers are reportedly going to back a call from the IMF to double its funds to $500bn when they meet at this weekend’s G20 meeting in London.
Raising funds, of course, could be done in two ways.
Markets live transcript 9 Mar 2009
Markets live chat transcript for the chat ending at 12:09 on 9 Mar 2009. Participants in this chat were: Paul Murphy, FT (PM) Neil Hume, FT (NH) PM:hi PM:markets live PM:welcome
Save the system!
What is the future of capitalism?
Martin Wolf has kicked off a major new series in the FT and on FT.com. His heavyweight introduction is here.
But there’s also a Future of Capitalism blog here,
Straumur-tized
Straumur, the last remaining independent Icelandic bank, has fallen.
The following appeared on the bank’s website earlier this morning:
In spite of its strong capital position and the support of funding banks Straumur Burdaras Investment bank hf.
QE in action
Presenting the 10-year gilt, where the yield dipped below 3% on Monday morning.
And that’s record – well, the first time it has happened since comparable records begain in 1958.
The recent price action…
Resolution vs FSA
This looks interesting.
Insurance entrepreneur Clive Cowdery and several other executives involved in the £5bn sale of Resolution are being investigated by the FSA.
(emphasis ours).Resolution Limited (the “Company”) has been notified by its Chairman and by its provider of operating services,
Further reading
Elsewhere on Monday,
- The problem of public pension underfunding is rapidly becoming the next major administrative nightmare
- Where next for the Dow?, 6,000, 5,000, 4,000?
- Low oil prices are
(Not so) Brit, Insurance
From the Brit Insurance 2008 results, out today:
Netherlands identified as the preferred domicile of the Group’s holding company, subject to requisite clearances and approvals.
In fact, according to Dane Douetil,
Pink picks
Comment, analysis and other offerings from Monday’s FT,
The Future of Capitalism: Martin Wolf on the failure of deregulated markets
Another ideological god has failed. The assumptions that ruled policy and politics over three decades suddenly look as outdated as revolutionary socialism.
Snap news
Breaking pre-market news on Monday,
- Resolution under investigation by the FSA – statement
- Tullow Oil finalises $2bn debt facility (at Libor +375bps) – statement
- Hiscox reports £105.2m profits (2007:
Brown signals support for Lloyds chiefs
Gordon Brown signalled strong support on Sunday for the two Lloyds bank chiefs who helped him rescue HBOS, the FT reported. Sir Victor Blank, chairman of Lloyds Banking Group, and Eric Daniels, chief executive,
Larry Summers calls for boost to demand
Barack Obama’s top economic adviser has urged world leaders to pump more public money into the economy in a co-ordinated effort to boost demand and lift the world out of recession. In an interview with the FT,
Plunging assets cost $50,000bn
Falls in the value of financial assets worldwide might have reached more than $50,000bn, equivalent to a year’s global economic output, the Asian Development Bank will warn on Monday. Asia has been hit disproportionately hard,
NYSE Euronext launches alternative trading platform
European investors will on Monday be presented with two additional share-trading facilities with the launch of NYSE Euronext’s alternative trading platform and the unveiling of plans for a “dark pool” block trading system by US operator Pipeline,
FSA needs overhaul, says Tory-funded review
The Financial Services Authority should be overhauled and might even be replaced, according to a review commissioned by the Conservative party and discussed in an FT op-ed by Sir James Sassoon, who was Alistair Darling’s City envoy.
Overvalued euro set to plunge ‘within months’
Spread betting companies have reported a huge wave of short euro trades in the last two weeks, leading to speculation that a significant correction in the currency will come in the next few months, the Telegraph said.
Hedge funds turn to gold
Hedge fund investors who made money last year by betting against investment banks are now buying gold as a way of betting against central banks. The gold bulls include David Einhorn, founder of hedge fund Greenlight Capital,
Industry freezes pay in bid to save jobs
Two-thirds of UK manufacturers have frozen pay or are considering doing so in an attempt to stave off redundancies and hold on to skilled staff, according to an industry survey. The study of more than
Mandelson says Vauxhall is in ‘trouble’
Vauxhall, the carmaker, is in “terrible trouble”, UK business secretary Lord Mandelson conceded on Sunday, as he set out plans to work with Germany to try to save the European subsidiaries of General Motors.
Sterlite to buy Asarco assets for $1.7bn
Sterlite Industries, India’s largest metals producer, has said it is to buy the operating assets of bankrupt US copper miner Asarco for $1.7bn, nearly $1bn less than the price it had agreed in November last year,
Greenberg attacks US over AIG
Hank Greenberg, the former chief executive of AIG, has accused the US government of bungling the insurer’s rescue by imposing a high-interest loan and forcing the repayment of $30bn-plus to banks and partners.
BofA withdraws job offers to foreign MBAs
Bank of America has become the first US bank to withdraw job offers made to MBA students graduating from US business schools this summer, citing conditions laid out in its bail-out deal as the reason, the FT reported.
Overnight markets: Asia flirts with fresh lows
The Nikkei hit a four-month intra-day low on Monday, although it held above the 7,000 level in mid-afternoon trade, as investors fretted about the outlook for the global carmakers and financial firms. The broader Topix index fell to a 25-year intra-day low,
A deceitful deal for Lloyds Banking Group
It’s a deceit on British taxpayers, not Lloyds shareholders, who are getting a free and gloriously pimped ride.
Lloyds formally released details of the terms of its participation in the government’s Asset Protection Scheme on Saturday,
The Weekender
On FT Alphaville this week,
- A small rights issue surprise from HSBC
- A Footsie plunge
- A bad day for Buffett
- Citi’s capital government-ized
- The matter of AIG’s $99bn annual loss
- No more ‘aid’ for CEE
- Doth a Mexican affair brew for Citi?
- GE electrocuted
- Phew! The S&P still above 700 – just
- Surprise,
CDS update: More pain ahead
This CDS report was written by Markit’s Gavan Nolan
The US economy lost 651,000 jobs in February and the unemployment rate hit 8.1%, its highest for 25 years. Pessimism has been pervading the market this week,
Quo vadis S&P/MIB?
Mama mia – something is afoot in Italy. The country’s main stock index, the S&P/MIB, closed below 13,000 for the first time ever on Friday, led on its downward trajectory by spiralling bank stocks like Intesa and Unicredit.