March, 2009
AIG staff to return $50m of bonuses
US taxpayers are on course to recoup about half of the controversial $165m of bonuses paid by troubled insurer AIG, after some key recipients agreed to return the money, according to New York attorney-general Andrew Cuomo,
ING urges staff to return bonuses
ING, the Dutch banking and insurance group, made a “moral appeal” on Monday to its senior managers to return their bonuses for 2008, as the Dutch authorities looked to curtail pay at companies receiving state support.
Moody’s strips GE of AAA rating
General Electric’s financial health came under renewed focus on Monday as Moody’s stripped the group of its long-held triple-A rating and questioned GE’s pledge that its finance arm would be profitable this year.
Goldman to cut ICBC stake
Goldman Sachs is considering selling part of its 4.9% stake, valued at $7.5bn, in Industrial & Commercial Bank of China, a move that could raise more than $1bn, reports the WSJ. Goldman began talking to ICBC about selling 15% to 20% of its stake late last year.
China urges new reserve currency
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the IMF. In a post on the People’s Bank of China’s website,
Hedge funds to see record withdrawals
Hedge fund investors believe the industry will see even bigger withdrawals this year than last, when record levels of cash left the sector. A survey of investors by Deutsche Bank found that a third expect withdrawals of more than $200bn,
Suncor buys Petro-Canada for $16bn
Suncor Energy of Canada is to buy rival Petro-Canada for C$19.6bn ($15.9bn), in an agreed all-share deal – the largest in the oil and gas industry since 2006 – that will create North America’s fifth biggest oil and gas producer and accelerate consolidation in the Alberta oil sands.
Ford doubles debt buy-back
The finance arm of Ford Motor on Monday doubled to $1bn the amount it would spend to buy back loans following strong interest in the carmaker’s debt restructuring. Ford’s move comes as GM, its rival,
Arab states bail out Gulf bank
Bahrain-based Gulf International Bank, one of the worst-hit financial institutions in the oil-rich Middle East, has sold $4.8bn of toxic assets to its shareholders, six Arab Gulf governments. GIB, an investment bank owned jointly by the six members of the Gulf Co-operation Council,
Stanford CFO co-operates in probe
The chief financial officer of Stanford Financial Group, James Davis, is co-operating in fraud investigations of the group, reports the WSJ. Davis’ co-operation in the federal criminal and civil investigations may help authorities who have struggled to get information from billionaire Texan financier Allen Stanford.
Lord Myners under cloud
UK opposition politicians have questioned the role and business interests of Treasury minister Lord Myners, who is charged with clamping down on tax avoidance, amid reports of his involvement in two more businesses that controlled substantial offshore funds,
Obama fills key Treasury posts
President Barack Obama Monday moved to fill the leadership vacuum at the US Treasury, tapping former Treasury official Neal Wolin as secretary Tim Geithner’s number two, and former White House aide Lael Brainard for the top international job,
Overnight markets: Optimism
Asian stocks rose on Tuesday, following big overnight gains in US and European stocks, extending a rally that has driven the MSCI World Index to a five-week high, amid optimism the US Treasury’s plan to remove banks’ toxic assets will revive economic growth. Futures on the S&P 500 lost 0.4% after the gauge soared 7.1% in New York,
Global financial crisis, solved?
The S&P 5oo closed 7.1 per cent higher on Monday, while the Dow added 497.48 points, or 6.84 per cent.
This calls for a graphic:
You decide.
Related links:
A lasting rescue rally? – John Authers / FT Short View
The Geithner plan – it’s all about liquidity – FT Alphaville
Geithner,
[The Stanford Series] Laura Pendergest-Holt agrees to extend indictment deadline
Laura Pendergest-Holt, the chief investment officer of the Stanford Group, on Monday agreed to a 30-day delay of her indictment on the charge of obstructing the SEC’s investigation into Sir Allen and the Stanford Group.
Introducing the global central bank solution
Someone has gone and done it – pitched the idea of a global central bank as the solution to the current financial crisis.
Writing on the VOXeu.org blog, a platform set up by the Centre for Economic Policy Research,
Moody’s downgrades GE and GE Capital to Aa2
The GE rating cuts continue – and Moody’s is harsher than its peers, cutting GE two notches.
What is worth noting in the statement is the credit rating agency’s particular concern about GE Capital’s UK exposure.
CDS update: Spreads rally in strong start to week
This CDS report was written by Markit’s Gavan Nolan
European credit spreads rallied in a strong start to the week. The Markit iTraxx Europe Series 11 index tightened by over 9bp to trade around 162.5bp,
[The Stanford Series] Ralph Janvey to Stanford employees: BYOB
Bring your own boxes, that is.
This statement was posted to the Stanford receiver’s website on Monday:
Final Opportunity to Remove Personal Belongings from 5050 Westheimer in Houston, Texas
Posted March 23,
Congressmen and corporate jets, redux
A reader pointed us in the direction of this Bloomberg story, which details how irked members of the hotel lobby in the US are by what they see as the ‘hypocrisy’ of the US Congress:
The U.S. Senate last month passed a measure limiting “luxury”
Don’t mention the recession
Things are looking bleak across Western Europe. But perhaps most bleak is the picture facing Germany – Europe’s industrial heartland and predominant export economy.
Dominic Bryant of BNP Paribas explains just how dour the outlook for Germany is in the bank’s latest global outlook. In his piece,
The five point Elliott plan
Don’t knock it. If the Guardian’s economics editor, Larry Elliott, can squeeze a global economic recover plan into 1,000 words and a Berliner page, that warrants a read — even in our overcrowded book.
Indefensible, JP Morgan Chase edition
Presented without comment (via ABCnews.com):
Embattled bank JP Morgan Chase, the recipient of $25 billion in TARP funds, is going ahead with a $138 million plan to buy two new luxury corporate jets and build “the premiere corporate aircraft hangar on the eastern seaboard”
G20: Discussing the shape of international reserves to come
George Soros, general investment luminary and chairman of Soros Fund Management, writes in Monday’s FT how the forthcoming Group of 20 meeting in London on April 2nd will likely be a make-or-break event.
Geithner, the early maths
Anyone worried that Geithner’s toxic asset plan would encourage investors to overpay for toxic bank assets should be relieved. It doesn’t.
What they should be worried about, however, is whether it will actually do anything for the banks.
Professional athletes and their money…
Are often parted.
Connie Loizos at peHUB on Monday highlighted a compelling piece of reporting by Sports Illustrated on the travails of professional athletes and their finances:
Did you know that by the time they’ve been retired from football for two years,
University challenge
On the plus side, less worry about paying off onerous, crippling student loans for another couple years!
Related link:
University Challenge – Youtube