Global bond underwriting activity declined by 29% in 2008 to $4.33 billion, the lowest level seen since 2000, according to data from Dealogic Holdings PLC of London.
The data reflect totals as of Dec. 9.
Following the major shifts in the financial services industry, only $1.85 billion of the year's deals were generated in the fourth quarter, which marked the slowest period since the fourth quarter of 2000.
Activity in
Global bond underwriting activity declined by 29% in 2008 to $4.33 billion, the lowest level seen since 2000, according to data from Dealogic Holdings PLC of London.
The data reflect totals as of Dec. 9.
Following the major shifts in the financial services industry, only $1.85 billion of the year's deals were generated in the fourth quarter, which marked the slowest period since the fourth quarter of 2000.
Activity in
Staff at the SEC’s Division of Enforcement has informed Reserve Management Co. Inc. that it intends to recommend that the Securities and Exchange Commission bring an enforcement action against the company for violating federal securities laws.
The staff also told the New York-based company, which serves as the investment adviser to the Reserve family of funds, that it intends to recommend enforcement actions against Bruce Bent, president of the management company and president and chairman of each Reserve fund and his sons; Bruce Bent II, senior vice president of the management company and co-CEO of each fund; and Arthur Bent III, chief operating officer and treasurer of RMCI and co-chief executive officer of each
In a sign that the global credit freeze may be thawing slightly, the London Interbank Offered Rate yesterday for three month loans — the interest rate that banks charge to borrow from one another — sank by 0.01%, its lowest level since September.
Three-month dollar Libor rates fell to 1.45%, marking its lowest level since the immediate aftermath of the collapse of New York-based Lehman Brothers Holdings Inc. in mid-September.
On the heels of GMAC Financial LLC’s approval by the Federal Reserve as a bank holding company(InvestmentNews, Dec. 29), the Department of the Treasury announced late yesterday that it will inject $5 billion into the financing arm of General Motors Corp. from the $700 billion Troubled Asset Relief Program.
The Treasury has also agreed to lend up to $1 billion to Detroit-based General Motors in order to allow the ailing U.S automobile giant to support GMAC reorganizing into a bank holding company.
On the heels of GMAC Financial LLC’s approval by the Federal Reserve as a bank holding company(InvestmentNews, Dec. 29), the Department of the Treasury announced late yesterday that it will inject $5 billion into the financing arm of General Motors Corp. from the $700 billion Troubled Asset Relief Program.
The Treasury has also agreed to lend up to $1 billion to Detroit-based General Motors in order to allow the ailing U.S automobile giant to support GMAC reorganizing into a bank holding company.
The 195 New York Stock Exchange member firms that conduct business with the public posted after-tax losses of $6.95 billion in the third quarter on revenue of $44.13 billion.
This compared with $2.49 billion in after-tax losses on revenue of $78.79 billion in third quarter of 2007.
The number of unprofitable firms increased to 78 in the third quarter from 55 in the year-ago period.
The number of profitable firms fell to 117 from 141.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The Securities and Exchange Commission Tuesday approved temporary exemptions allowing London-based LCH.Clearnet Group Ltd. to operate as a central counterparty for credit default swaps.
"Today's announcement is an important step in our efforts to add transparency and structure to the opaque and unregulated multitrillion-dollar credit default swaps market," SEC Chairman Christopher Cox said in a statement.
"These conditional exemptions will allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight.
The People's Bank of China today cut interest rates by 0.27% to 5.31%, marking the fifth time that the bank has cut rates in the past four months.
China's central bank also cut the deposit rate by 0.27% to 2.25%
Additionally, the bank cut the ratio that banks must set aside as deposits by 0.5% to 15.5% of their deposits.
Last Friday, the Bank of Japan cut its key lending rate by to 0.1%, from 0.3%, and downgraded its assessment of the economy.
Situation: Tax law mandates the use of certain interest rates — called applicable federal rates — in promissory notes between related parties and in valuing the gift portion of certain planning transactions.
Because current yields on Treasury obligations are at historic lows, certain estate planning techniques can be very attractive.
Here’s how your client can take advantage of current low interest rates by using these techniques.
Solution: Applicable federal rates, which are computed and published by the Internal Revenue Service monthly, are based on the weighted average market yield for marketable Treasury obligations. The AFR rates for January 2009 range from 0.81% for short-term securities (those that mature in three years or less) to 2.06% for securities maturing in four to nine years and 3.57% for longer-term debt. These are historically low interest levels for Treasury securities.
Clients of Bernard Madoff who were lucky enough to withdraw part or all of their investment before the money manager confessed to a $50 billion Ponzi scheme are now concerned that they will have to give their money back, according to a Bloomberg report.
The former investors — which include individuals, charities and hedge funds — in his brokerage firm, Bernard L. Madoff Investment Securities LLC of New York, could potentially face lawsuits due to a New York state law that would call for a claw-back of paid-out funds.
Mutual fund assets will remain in decline unless regulations put them on equal footing with other investment vehicles, such as ETFs, according to a study released this week by Celent, a Boston-based research and consulting firm.
The firm projected that within five years, fund groups will decline from more than 7,000 to closer to 2,000.
The study, which examined the impact of the global credit crisis on the wealth management industry, predicts that assets of the mass market will shift more to stable value funds, annuities, cash and bank deposits, fixed-income vehicles and ETFs.
The Federal Reserve Board on Friday released revised terms and conditions involving the program dubbed Term Asset-Backed Securities Loan Facility.
Under TALF, the Federal Reserve pledged to lend as much as $200 billion to holders of newly issued, highly rated, asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration. The program aims to revive the waning securitization market.
Mary Schapiro’s replacement as head of the Financial Industry Regulatory Authority Inc. is likely to come from outside the self-regulator that oversees that brokerage industry and its registered reps, industry executives said this morning.
Those comments came in reaction to the news of President-elect Barack Obama’s nominating her to head up the Securities and Exchange Commission.
“I suspect the new person won’t come from the current Finra staff,” said Art Grant, CEO of Cadaret Grant & Co. Inc. of Syracuse, N.Y., an independent broker-dealer with over 900 affiliated reps.
The FBI has set up a hotline for investors who believe they were victims of an alleged $50 billion Ponzi scheme orchestrated by Wall Street veteran Bernard L. Madoff.
People who believe they were bilked by the founder of New York-based Bernard L. Madoff Investment Securities LLC can call (212) 384-2359.
The former chairman of The Nasdaq Stock Market Inc. in New York was arrested by federal agents Dec. 11 and charged with running a huge scheme that has allegedly resulted in at least $50 billion in losses for numerous individual and institutional investors (
Another prominent wirehouse branch manager has been shown the door, as Morgan Stanley yesterday cut ties with the head of its Washington complex.
Jerry Castro was escorted from the branch yesterday morning, according to an industry source, who asked not to be named.
No specific reason has surfaced for the move, the source said.
Christine Pollack, a spokeswoman for the New York-based firm, declined to comment about the reasons for Mr. Castro’s leaving the company.
Morgan Stanley CEO John Mack sounded the retreat today, announcing that his firm would abandon some risky businesses after his firm posted a stunningly large $2.4 billion quarterly loss.
The decision to cease certain types of proprietary trading and reduce principal investing, among other things, marks the dramatic reversal of the strategy Mr. Mack embraced when he took over in 2005: To amp up the amount of risk taken by the firm.
Some of the world's biggest banking institutions and hedge funds reported potential huge losses on Monday as the impact of alleged fraud by arrested Wall Street investment manager Bernard Madoff spread far beyond U.S. borders, according to the Associated Press.
Britain's Royal Bank of Scotland Group and Man Group, Spain's Grupo Santander SA, France's BNP Paribas and Japan's Nomura Holdings all reported that they had fallen victim to Mr. Madoff's alleged $50 billion Ponzi scheme.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
H&R Block Inc. posted a second-quarter loss today but improved from the year-earlier period.
The Kansas City, Mo.-based tax services provider reported a net loss of $134.9 million, or 41 cents a share, for the quarter ended Oct. 31, compared with a net loss of $502.3 million, or $1.55 cents a share, in the year- earlier period.
The improvement was attributed to a decision to exit its subprime-mortgage business and the sale of its H&R Block Financial Advisors unit to Minneapolis-based Ameriprise Financial Inc.
Longtime American International Group Inc. executive Kevin Kelley has been named chief executive officer of Ironshore Inc.
Mr. Kelley was formerly chairman and chief executive of AIG's Lexington Insurance Co., the world's largest excess and surplus lines insurer. Bob Deutsch, Bermuda-based Ironshore's founding CEO, was named the its president.
Ironshore also announced that it has hired Shaun Kelly, Lexington's former president and chief operating officer, to serve as CEO of Ironshore's U.S. operations.
Merrill Lynch ended its 94 years of independence when shareholders voted to approve the sale of the nation’s largest brokerage house — with its “thundering herd” of brokers, “Bullish on America” slogan, and all — to Bank of America Corp.
During a special shareholders meeting at company headquarters in New York, Merrill shareholders approved the sale of the company to the Charlotte, N.C.-based bank. Bank of America shareholders then gave a thumbs-up to the acquisition.
Shares of National Financial Partners Corp., the troubled amalgamator of financial planning firms, climbed more than 40% today after the New York-based company said its banks agreed to an amended credit agreement.
The new agreement reduces the credit facility available to NFP and raises its borrowing rate and fees, but also temporarily allows the company to increase its ratio of debt to equity.
Without such an increase, the company was in danger of defaulting on its debt agreement and could have been forced into bankruptcy, according to some principals at the insurance, planning and brokerage firms affiliated with NFP.
American International Group Inc. will award 38 of its executives with as much as $4 million each as part of a retention program, according to a letter from chief executive Edward Liddy.
Employees with salaries between $160,000 and $1 million can receive between $92,500 and $4 million in retention pay, according to a Dec. 5 letter chief executive officer Edward Liddy sent to Rep. Elijah Cummings, D-Md., and a member of the House Committee on Oversight and Government Reform.
The Securities Industry and Financial Markets Association of Washington and New York and the American Securitization Forum of New York will jointly sponsor the creation of a U.S. Covered Bonds Council.
Announced today, the council aims to be a collaborative forum for market participants to promote the U.S. covered-bonds market.
It will work to develop a liquid and efficient market that fosters public confidence in such bonds.
The latest performance data from the hedge fund industry shows that its indexes continue to decline at a slower pace than that of the stock market, but are still widely underperforming bonds.
The Hennessee Hedge Fund Index fell 2.7% in November for an 11-month decline of 18.4%.
The Credit/Suisse Tremont Hedge Fund Index lost 0.7% in November and is down 16.1% this year.
The HFRI Weighted Composite Index was down 1.4% in November and lost 17.8% over the first 11 months of the year.
The latest performance data from the hedge fund industry shows that its indexes continue to decline at a slower pace than that of the stock market, but are still widely underperforming bonds.
The Hennessee Hedge Fund Index fell 2.7% in November for an 11-month decline of 18.4%.
The Credit/Suisse Tremont Hedge Fund Index lost 0.7% in November and is down 16.1% this year.
The HFRI Weighted Composite Index was down 1.4% in November and lost 17.8% over the first 11 months of the year.
The Securities Industry and Financial Markets Association of Washington and New York and the American Securitization Forum of New York will jointly sponsor the creation of a U.S. Covered Bonds Council.
Announced today, the council aims to be a collaborative forum for market participants to promote the U.S. covered-bonds market.
It will work to develop a liquid and efficient market that fosters public confidence in such bonds.
The Securities Industry and Financial Markets Association of Washington and New York and the American Securitization Forum of New York will jointly sponsor the creation of a U.S. Covered Bonds Council.
Announced today, the council aims to be a collaborative forum for market participants to promote the U.S. covered-bonds market.
It will work to develop a liquid and efficient market that fosters public confidence in such bonds.
The Securities Industry and Financial Markets Association of Washington and New York and the American Securitization Forum of New York will jointly sponsor the creation of a U.S. Covered Bonds Council.
Announced today, the council aims to be a collaborative forum for market participants to promote the U.S. covered-bonds market.
It will work to develop a liquid and efficient market that fosters public confidence in such bonds.
The latest performance data from the hedge fund industry shows that its indexes continue to decline at a slower pace than that of the stock market, but are still widely underperforming bonds.
The Hennessee Hedge Fund Index fell 2.7% in November for an 11-month decline of 18.4%.
The Credit/Suisse Tremont Hedge Fund Index lost 0.7% in November and is down 16.1% this year.
The HFRI Weighted Composite Index was down 1.4% in November and lost 17.8% over the first 11 months of the year.
Even Harvard is singing the Wall Street blues.
The vernerable university’s endowment, the nation’s largest — and much envied for its typically outsized portfolio gains — lost 22% of its value, or $8 billion, from July through October.
The endowment’s domestic stock and foreign equity portfolios were particularly hard hit, according to university officials.
The endowment was worth $36.9 billion as of June 30, the end of its fiscal year.
Mortgage applications soared in the last week of November as homebuyers took advantage of low interest rates following the Fed’s announcement that it would buy Fannie Mae and Freddie Mac debt and mortgage-backed securities.
Indeed, the latest survey from the Mortgage Bankers Association in Washington shows that its seasonally adjusted Market Composite Index, which measures total mortgage application volume, jumped 112.1% to 857.7 for the week ended Nov. 28 — its highest level since March.
Despite all odds, Americans may be feeling good about their own financial future, but many are becoming cautious about their investments, according to a study released by Allianz Life Insurance Co. of North America.
Forty-six percent of the1,000 American adults polled by the Minneapolis-based insurer said that they were very confident about their financial situations, compared to 43% who said they were very concerned.
However, many of those polled were also shying away from getting into the capital markets.
In the wake of four straight quarterly losses for Citigroup Inc., its top executives are ready to give up their 2008 bonuses, the Financial Times reported today.
Former Treasury Secretary Robert Rubin, who serves as Citigroup’s director and senior counselor, told the bank’s board that the funds that would have been used for his bonus could be better spent on other employees.
A Citigroup spokeswoman would not say how many executives may forgo their bonuses only saying,"decisions by the board have not been made at this time."
This month and next, help your clients by advising them to use a 2008 Roth IRA conversion to take advantage of the stock market decline.
That will be the case for clients who meet these two criteria: They have traditional individual retirement accounts, 401(k)s or other company retirement plans (if they are eligible to take a distribution from the company plan) that are invested in stocks, and have 2008 income that doesn't exceed $100,000 on a single or joint tax return.
Financial institutions now have three more months to take advantage of some of the Federal Reserve’s liquidity boosters.
The Fed said on Tuesday that it is extending three programs until April 30.
The first, the Primary Dealer Credit Facility, gives discount window loans to primary dealers. The second, the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility, makes loans to banks so they can purchase asset-backed commercial paper from money market mutual funds.
The Goldman Sachs Group Inc. is expected to record a loss as large as $2 billion for its fiscal fourth quarter ended Nov. 28, according to a report in The Wall Street Journal that cited industry insiders.
The loss, which would be the company's first since it went public in 1999, is projected to be $5 per share, according to the insiders, and is more than five times larger than the consensus for the New York-based firm, which faces write-downs in areas ranging from private equity to commercial real estate.
Life insurance sales dropped during the third quarter as new annualized premium for individual coverage fell 11% year over year, according to LIMRA International Inc.
That represents an overall 4% decline in annualized premiums year to date, according to the Windsor, Conn.-based marketing and research group.
Variable life and variable universal life insurance — products that invest a portion of customers’ premium into the equity markets — experienced the greatest decline in sales. Variable life fell 41% in annualized premiums, while its variable universal cousin took a 33% dive in premiums.
Jefferson National Life Insurance Co. of Dallas today added the Rydex Variable Trust Managed Futures Strategy Fund to its Monument Advisor variable annuity.
The fund, designed to provide low correlation to traditional asset classes, gives customers exposure to a managed futures strategy and offers them exposure to long and short positions in the futures market — with the exception of energy, Jefferson said.
Rather than providing direct exposure to the futures market, the fund uses structured notes and other financial instruments. The fund seeks to deliver the returns of the Standard and Poor’s Diversified Trends Indicator, which is divided equally between physical commodities, such as grains and livestock, and financials, which include the euro and the yen.
Sales on Black Friday — the day after Thanksgiving, thought to be the busiest shopping day of the year — fared better than anticipated but did not rescue November retail sales, according to a report from Thomson Reuters of New York..
In fact, November same-store retail sales may be the worst recorded due to drastic price cuts: The success of Black Friday sales probably came at the expense of margins as stores cut prices, the report said.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
Highbridge Capital Management LLC is placing a restriction on client withdrawals to avoid the forced sale of assets, according to the Wall Street Journal, which quoted people familiar with the fund.
The New York-based hedge fund company’s multistrategy fund has slumped about 25% this year. Investors have asked to withdraw 36% of its assets, the Journal reported, citing individuals knowledgeable about the fund.
To protect the fund’s viability, Highbridge will pay 30% of withdrawals in cash and distribute the remainder in a year or more, the Journal said. After withdrawals and investment losses, this once $15 billion fund might be be worth $6 billion.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
Highbridge Capital Management LLC is placing a restriction on client withdrawals to avoid the forced sale of assets, according to the Wall Street Journal, which quoted people familiar with the fund.
The New York-based hedge fund company’s multistrategy fund has slumped about 25% this year. Investors have asked to withdraw 36% of its assets, the Journal reported, citing individuals knowledgeable about the fund.
To protect the fund’s viability, Highbridge will pay 30% of withdrawals in cash and distribute the remainder in a year or more, the Journal said. After withdrawals and investment losses, this once $15 billion fund might be be worth $6 billion.
The number of troubled banking institutions — ones that the FDIC is monitoring because they are in danger of failing — grew 46% in the third quarter, marking the highest level since the fourth quarter of 1995.
The number of such banks grew to 171 from 117, according to the Federal Deposit Insurance Corp.
Additionally, nine FDIC-insured institutions failed in the third quarter, the most since the third quarter of 1993.
Highbridge Capital Management LLC is placing a restriction on client withdrawals to avoid the forced sale of assets, according to the Wall Street Journal, which quoted people familiar with the fund.
The New York-based hedge fund company’s multistrategy fund has slumped about 25% this year. Investors have asked to withdraw 36% of its assets, the Journal reported, citing individuals knowledgeable about the fund.
To protect the fund’s viability, Highbridge will pay 30% of withdrawals in cash and distribute the remainder in a year or more, the Journal said. After withdrawals and investment losses, this once $15 billion fund might be be worth $6 billion.
The number of troubled banking institutions — ones that the FDIC is monitoring because they are in danger of failing — grew 46% in the third quarter, marking the highest level since the fourth quarter of 1995.
The number of such banks grew to 171 from 117, according to the Federal Deposit Insurance Corp.
Additionally, nine FDIC-insured institutions failed in the third quarter, the most since the third quarter of 1993.
The number of troubled banking institutions — ones that the FDIC is monitoring because they are in danger of failing — grew 46% in the third quarter, marking the highest level since the fourth quarter of 1995.
The number of such banks grew to 171 from 117, according to the Federal Deposit Insurance Corp.
Additionally, nine FDIC-insured institutions failed in the third quarter, the most since the third quarter of 1993.
Two months after acquiring Washington Mutual Inc., JPMorgan Chase & Co. announced yesterday that it will slash 9,200 jobs from the Seattle-based bank that succumbed to the credit crunch.
New York-based JPMorgan Chase will cut 4,000 WaMu positions by the end of January, and the remaining 5,200 employees will stay on as transition workers and leave their jobs over the course of 2009, according to a JPMorgan Chase spokeswoman.
The number of troubled banking institutions — ones that the FDIC is monitoring because they are in danger of failing — grew 46% in the third quarter, marking the highest level since the fourth quarter of 1995.
The number of such banks grew to 171 from 117, according to the Federal Deposit Insurance Corp.
Additionally, nine FDIC-insured institutions failed in the third quarter, the most since the third quarter of 1993.
The number of troubled banking institutions — ones that the FDIC is monitoring because they are in danger of failing — grew 46% in the third quarter, marking the highest level since the fourth quarter of 1995.
The number of such banks grew to 171 from 117, according to the Federal Deposit Insurance Corp.
Additionally, nine FDIC-insured institutions failed in the third quarter, the most since the third quarter of 1993.
Socially conscious funds are one of the highest growth areas of the mutual fund industry and have outperformed their peers in recent time periods, according to a study released today by New York-based Lipper Inc.
Since 2001, assets in socially conscious funds have grown 71% to $26.9 billion as of Oct. 31.
Among them, green funds, which seek investments with a positive environmental impact, have experienced a 640% increase in assets to $1.1 billion, from $153 million over the same time period.
Highbridge Capital Management LLC is placing a restriction on client withdrawals to avoid the forced sale of assets, according to the Wall Street Journal, which quoted people familiar with the fund.
The New York-based hedge fund company’s multistrategy fund has slumped about 25% this year. Investors have asked to withdraw 36% of its assets, the Journal reported, citing individuals knowledgeable about the fund.
To protect the fund’s viability, Highbridge will pay 30% of withdrawals in cash and distribute the remainder in a year or more, the Journal said. After withdrawals and investment losses, this once $15 billion fund might be be worth $6 billion.
Socially conscious funds are one of the highest growth areas of the mutual fund industry and have outperformed their peers in recent time periods, according to a study released today by New York-based Lipper Inc.
Since 2001, assets in socially conscious funds have grown 71% to $26.9 billion as of Oct. 31.
Among them, green funds, which seek investments with a positive environmental impact, have experienced a 640% increase in assets to $1.1 billion, from $153 million over the same time period.
Socially conscious funds are one of the highest growth areas of the mutual fund industry and have outperformed their peers in recent time periods, according to a study released today by New York-based Lipper Inc.
Since 2001, assets in socially conscious funds have grown 71% to $26.9 billion as of Oct. 31.
Among them, green funds, which seek investments with a positive environmental impact, have experienced a 640% increase in assets to $1.1 billion, from $153 million over the same time period.
Socially conscious funds are one of the highest growth areas of the mutual fund industry and have outperformed their peers in recent time periods, according to a study released today by New York-based Lipper Inc.
Since 2001, assets in socially conscious funds have grown 71% to $26.9 billion as of Oct. 31.
Among them, green funds, which seek investments with a positive environmental impact, have experienced a 640% increase in assets to $1.1 billion, from $153 million over the same time period.
Socially conscious funds are one of the highest growth areas of the mutual fund industry and have outperformed their peers in recent time periods, according to a study released today by New York-based Lipper Inc.
Since 2001, assets in socially conscious funds have grown 71% to $26.9 billion as of Oct. 31.
Among them, green funds, which seek investments with a positive environmental impact, have experienced a 640% increase in assets to $1.1 billion, from $153 million over the same time period.
U.S. stocks rallied today as the U.S. government said it would back troubled Citigroup Inc. with $20 billion in fresh capital and the guarantee of $306 billion in mortgage-related assets.
The Dow Jones industrial average gained nearly 900 points over the past two sessions on news of President-elect Barack Obama's choice for his economic team.
The Dow Jones industrial average closed up 396.97, or 4.93%, at 8,443.39; the S&P 500 rose 51.78, or 6.47%, closing at 851.81; and the Nasdaq composite was up 87.67, or 6.33%, to close at 1,472.02. All numbers are preliminary.
Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.
“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.
On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (
Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.
“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.
On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (
U.S. stocks rallied today as the U.S. government said it would back troubled Citigroup Inc. with $20 billion in fresh capital and the guarantee of $306 billion in mortgage-related assets.
The Dow Jones industrial average gained nearly 900 points over the past two sessions on news of President-elect Barack Obama's choice for his economic team.
The Dow Jones industrial average closed up 396.97, or 4.93%, at 8,443.39; the S&P 500 rose 51.78, or 6.47%, closing at 851.81; and the Nasdaq composite was up 87.67, or 6.33%, to close at 1,472.02. All numbers are preliminary.
Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.
“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.
On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (
U.S. stocks rallied today as the U.S. government said it would back troubled Citigroup Inc. with $20 billion in fresh capital and the guarantee of $306 billion in mortgage-related assets.
The Dow Jones industrial average gained nearly 900 points over the past two sessions on news of President-elect Barack Obama's choice for his economic team.
The Dow Jones industrial average closed up 396.97, or 4.93%, at 8,443.39; the S&P 500 rose 51.78, or 6.47%, closing at 851.81; and the Nasdaq composite was up 87.67, or 6.33%, to close at 1,472.02. All numbers are preliminary.
Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.
“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.
On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (
The Federal Reserve is teaming up with the Department of the Treasury to purchase up to $800 billion in troubled assets through purchases of mortgage- and asset-backed securities as part of an effort to pump more liquidity into the financial markets.
The Federal Reserve will purchase $600 billion of mortgage-backed securities and an additional $200 billion of asset-backed securities to help provide consumers with credit.
The European Commission today proposed a 200 billion euro ($256.22 billion) stimulus package to try to resurrect the region’s struggling economy.
The two-year European Economic Recovery Plan announced today would involve spending from the 27 European Union governments and from the EU itself.
“Europe needs to extend to the real economy its unprecedented coordination over financial markets,” European Commission president José Manuel Barroso said in a statement.
Now that the Federal Reserve Board has cut the federal funds rate to 1%, the focus needs to be on increasing liquidity, St. Louis Federal Reserve Bank president James Bullard said yesterday.
Speaking at a conference in Evansville, Ind., he said that any influence that interest rate reductions have in the near term will be “limited.”
Instead, the Federal Reserve will need to be innovative in providing liquidity to markets through existing facilities, and possibly some new programs, Mr. Bullard said.
Invesco PowerShares Capital Management LLC of Wheaton, Ill., yesterday launched the first actively managed exchange traded fund to invest in real estate.
The PowerShares Active U.S. Real Estate Fund (PSR) seeks to provide high total return by investing in publicly traded U.S. real estate companies, selected using a proprietary stock selection model.
The selection methodology seeks to outperform its benchmark, the FTSE NAREIT Equity REITs Index, using quantitative and statistical metrics to identify attractively priced securities and manage risk.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
State securities regulators today warned federal policymakers not to enact regulatory reforms that might cut state powers.
“State securities regulators ... must not be pre-empted or marginalized as mere advisers to federal authorities,” the North American Securities Administrators Association Inc. of Washington said in a statement outlining its own principles for reform.
“Particularly in the areas of enforcement, licensing and compliance examinations, state regulators provide indispensable consumer protections,” NASAA said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
U.S. stocks fell today as retail sales dropped a record 2.8% in October, the latest evidence of how steep the economic downturn is.
The Dow Jones industrial average closed down 337.94 points, or 3.8%, at 8,497.31, finishing off its low for the day of 8,469.99.
The broad market S&P 500 fell 38 points, or 4.2%, ending at 873.29. All numbers are preliminary.
Analysts said the stock market is trying to establish a bottom as the market is caught in a tug of war between attractive valuation and deteriorating economic fundamentals.
The Charles Schwab Corp. will not apply for funds under the Department of the Treasury's $700 billion Troubled Asset Relief Program, the San Francisco firm has announced.
The deadline for applications from financial services companies seeking to participate in the program was Friday.
"We possess a strong and flexible balance sheet with multiple sources of liquidity and strong credit ratings," chairman Charles Schwab said in a statement released Friday. "Our capital strength, ongoing operating discipline and history of conservative fiscal management allow us to continue to maintain the strength, safety and soundness of our business without the need for government capital" he said.
Morgan Stanley and The Goldman Sachs Group Inc. both had their fourth-quarter estimates cut by analysts in research notes published today.
Sanford C. Bernstein & Co. LLC analyst Brad Hintz forecast a loss of 54 cents per share for Goldman Sachs after preciously estimating a profit of $2.12 per share.
As for Morgan Stanley of New York, Mr. Hintz forecasts a profit of 30 cents per share for the fourth quarter, down from his previous estimate of $1.12 per share.
Morgan Stanley and The Goldman Sachs Group Inc. both had their fourth-quarter estimates cut by analysts in research notes published today.
Sanford C. Bernstein & Co. LLC analyst Brad Hintz forecast a loss of 54 cents per share for Goldman Sachs after preciously estimating a profit of $2.12 per share.
As for Morgan Stanley of New York, Mr. Hintz forecasts a profit of 30 cents per share for the fourth quarter, down from his previous estimate of $1.12 per share.
Morgan Stanley and The Goldman Sachs Group Inc. both had their fourth-quarter estimates cut by analysts in research notes published today.
Sanford C. Bernstein & Co. LLC analyst Brad Hintz forecast a loss of 54 cents per share for Goldman Sachs after preciously estimating a profit of $2.12 per share.
As for Morgan Stanley of New York, Mr. Hintz forecasts a profit of 30 cents per share for the fourth quarter, down from his previous estimate of $1.12 per share.
The Securities and Exchange Commission today charged four financial services workers with engaging in a fraudulent scheme to overvalue the commodities derivatives trading portfolio at the Bank of Montreal.
The individuals charged are David Lee, former managing director of Toronto-based BMO Financial Group’s commodities derivatives group as well natural-gas provider Optionable Inc.’s chief executive Kevin Cassidy, president Edward O’Connor and broker Scott Connor.
Morgan Stanley and The Goldman Sachs Group Inc. both had their fourth-quarter estimates cut by analysts in research notes published today.
Sanford C. Bernstein & Co. LLC analyst Brad Hintz forecast a loss of 54 cents per share for Goldman Sachs after preciously estimating a profit of $2.12 per share.
As for Morgan Stanley of New York, Mr. Hintz forecasts a profit of 30 cents per share for the fourth quarter, down from his previous estimate of $1.12 per share.
The Securities and Exchange Commission today charged four financial services workers with engaging in a fraudulent scheme to overvalue the commodities derivatives trading portfolio at the Bank of Montreal.
The individuals charged are David Lee, former managing director of Toronto-based BMO Financial Group’s commodities derivatives group as well natural-gas provider Optionable Inc.’s chief executive Kevin Cassidy, president Edward O’Connor and broker Scott Connor.
Three-month TSX trading for George Weston
George Weston Ltd. reported a third-quarter profit of $179 million Tuesday, matching the amount it made a year ago, as sales increased by 4.4 per cent to $10.61 billion.
Homebuilders' confidence in a near-term U.S. housing recovery sank to a new all-time low this month, reflecting growing worries over the financial crisis, rising unemployment and weakening consumer confidence, an industry trade association said Tuesday.
The National Association of Home Builders/Wells Fargo housing market index, which began in January 1985, tumbled five points to nine in November. The index stood at 14 in October and 17 in September.
American Express Co. is asking for $3.5 billion in taxpayer-funded capital from the federal government under the Troubled Asset Relief Program, The Wall Street Journal reported today.
It is uncertain whether New York-based AmEx made the request before winning approval to morph into a bank holding company Monday, according to the Journal.
Amex has two bank units, Centurion Bank and American Express Bank.
American Express Bank was already regulated by the Office of Thrift Supervision and thus might have been qualified to receive TARP money before the Fed’s decision. (
Merrill Lynch & Co. Inc. and Bank of America Corp. have named Andrea Orcel as the president of international operations for the global banking, securities and wealth management business for the soon-to-be-combined company, according to an internal memo distributed today.
He is currently the head of global origination and president of Europe, Middle East and Africa global markets and investment banking at Merrill.
Mr. Orcel will report to Greg Fleming, who will assume the role of head of global corporate and investment banking for the combined company after serving as president and chief operating officer of Merrill Lynch.
Citigroup Inc. has become the latest major bank to unveil plans to help distressed homeowners avoid foreclosure.
The New York financial services giant today announced the launch of its Citi Homeowner Assistance program, which will modify about $20 billion in mortgages over the next six months in order to make monthly mortgage payments more affordable for vulnerable homeowners.
The program will target a select group of 500,000 homeowners whose mortgages are held by Citi and who may require help to remain current on their mortgages.
JPMorgan expects rise in consumer loan defaults
JPMorgan Chase & Co. is expecting consumer loan defaults to rise in the fourth quarter, as will loan loss provisions, according to a Securities and Exchange Commission filing today.
“Given the potential stress on the consumer from rising unemployment, the continued downward pressure on housing prices and the elevated national inventory of unsold homes, management remains extremely cautious,” the New York-based bank said in the SEC filing.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Under orders from a federal judge, Bear Stearns has paid $27.3 million to the now-defunct National Heritage Life Insurance Co., which lost money invested with Bear on collateralized mortgage-backed obligations and collateralized debt obligations.
The decision ordering the payment, which was handed down by Judge James E. Glatt Jr. from the Ninth Judicial Circuit Court of Florida in Orange Country, found that The Bear Stearns Cos. Inc. of New York misrepresented the very nature of the investment strategy to NHL.
Ninety-one percent of financial institutions surveyed said that a lack of clarity about the way the federal government’s Troubled Asset Relief Program works is making them less willing to participate in it, according to a survey of 445 financial institutions released yesterday by five financial trade associations.
Eighty-eight percent of the financial institutions surveyed said that the requirement to grant the Department of the Treasury warrants — similar to stock but without voting authority — also makes them less willing to participate. Uncertainty over investor perception of participation was cited by 84% of the survey respondents as an impediment to participating in the program.
The Bank of England, the European Central Bank and the Swiss National Bank announced interest rate cuts today to try to battle the weakening economy that has battered the Europe region.
The Bank of England voted today to slash its key interest rate by 1.5 percentage points to its lowest level since 1954.
The interest rate cut by Great Britain’s central bank to 3%, from 4.5%, is the largest since a 2-percentage-point reduction in March 1981.
Advisers are of two minds following yesterday’s Democratic sweep of the White House and Congress.
Some worry about the effect of potentially large tax increases, while others are hopeful that President-elect Barack Obama can instill confidence in the economy. All are thinking about what the new administration will mean in terms of their clients’ finances.
“Regardless of the rhetoric, it almost certainly means taxes are going to go up for everybody,” said Michael Jones, a certified financial planner, chartered financial consultant, and president of Lifetime Financial Solutions Inc. of Louisville, Ky., which manages about $30 million. He is a member of the government relations committee of the Denver-based Financial Planning Association, but he spoke for himself.
The Hartford (Conn.) Financial Services Group Inc. has announced that it will lay off 500 employees — about 1.6% of its total work force — this month, citing falling revenue and investment losses.
Currently, The Hartford employs about 31,000 people.
The affected employees work around the country in the life and property-casualty operations, as well as on the corporate side.
They will be notified of their fate by the end of the month.
Confidence among wealthy investors fell to an all-time low last month as a result of the battered financial markets and the global financial crisis, according to a report by Spectrem Group.
The Spectrem Millionaire Investor Index fell six points to a reading of -24, marking the lowest level since the inception of the index in February 2004.
The previous record low was -18 in September.
The Spectrem Affluent Investor Index, which measures the investment outlook of households with $500,000 to $1 million in investible assets, fell eight points to -30, which was its lowest reading since the inception of the index in 2004.
The interest rate that banks charge to borrow from one another continued to tumble on Monday.
The London interbank offered rate, or Libor, that banks charge each to make overnight loans fell to 0.39% on Monday, from 0.41% on Friday — the lowest level since 1997 when the British Bankers’ Association began tracking the rate.
The three-month rate for dollars also dropped to 2.86%, from 3.03%.
This latest decline in Libor rates for U.S. dollars follows an Oct. 29 decision by the Federal Reserve to cut the federal funds rate to 1%, a half-point cut.
Markets Slide After Rate Cuts/Dollar Gains
Global equities were falling sharply on Thursday after the ECB reduced borrowing costs by 50 basis points and BoE shocked markets with a massive 150 basis point reduction. Both moves came one week after the Fed's 60 basis point cut last Wednesday.
"Stocks usually get a short-term boost from rate cuts, but the time for that has long passed," said Matthew Carniol, chief currency strategist at TheLFB-forex.com." The S&P is down 2.8% since last Wednesday's 50 basis point cut by the Fed and European markets are taking steep losses today."
U.S. stocks sold off today as three separate reports highlighted a bleak employment outlook, while corporate news pointed to an economic downturn.
The Dow Jones industrial average closed down 486.01, or 5.05%, at 9,139.27; the S&P 500 fell 52.98, or 5.27%, ending at 952.77; and the Nasdaq composite closed down 98.48, or 5.53%, at 1,681.64. All numbers are preliminary.
The Institute for Supply Management, a private industry group, this morning reported that its ISM services index fell to 44.4 in October, the lowest reading since the series was first compiled in 1997. The ISM had already reported Monday that its manufacturing index slumped to 38.9 last month, a 36-year low. Readings below 50 indicate a contraction in the sector.
Markets Slide After Rate Cuts/Dollar Gains
Global equities were falling sharply on Thursday after the ECB reduced borrowing costs by 50 basis points and BoE shocked markets with a massive 150 basis point reduction. Both moves came one week after the Fed's 60 basis point cut last Wednesday.
"Stocks usually get a short-term boost from rate cuts, but the time for that has long passed," said Matthew Carniol, chief currency strategist at TheLFB-forex.com." The S&P is down 2.8% since last Wednesday's 50 basis point cut by the Fed and European markets are taking steep losses today."
U.S. stocks sold off today as three separate reports highlighted a bleak employment outlook, while corporate news pointed to an economic downturn.
The Dow Jones industrial average closed down 486.01, or 5.05%, at 9,139.27; the S&P 500 fell 52.98, or 5.27%, ending at 952.77; and the Nasdaq composite closed down 98.48, or 5.53%, at 1,681.64. All numbers are preliminary.
The Institute for Supply Management, a private industry group, this morning reported that its ISM services index fell to 44.4 in October, the lowest reading since the series was first compiled in 1997. The ISM had already reported Monday that its manufacturing index slumped to 38.9 last month, a 36-year low. Readings below 50 indicate a contraction in the sector.
U.S. companies in the private sector lost 157,000 jobs in October, according to the monthly ADP National Employment Report, released today.
The loss for the private sector followed a September that saw 26,000 jobs shed, which was revised from an original estimate of 8,000, the report said.
The goods-producing sector, which includes manufacturers and construction companies, took the brunt of the October damage, losing 126,000 jobs.
U.S. companies in the private sector lost 157,000 jobs in October, according to the monthly ADP National Employment Report, released today.
The loss for the private sector followed a September that saw 26,000 jobs shed, which was revised from an original estimate of 8,000, the report said.
The goods-producing sector, which includes manufacturers and construction companies, took the brunt of the October damage, losing 126,000 jobs.
U.S. companies in the private sector lost 157,000 jobs in October, according to the monthly ADP National Employment Report, released today.
The loss for the private sector followed a September that saw 26,000 jobs shed, which was revised from an original estimate of 8,000, the report said.
The goods-producing sector, which includes manufacturers and construction companies, took the brunt of the October damage, losing 126,000 jobs.
Nationwide Financial Services Inc. of Columbus, Ohio, will remain on CreditWatch “negative,” Standard and Poor’s Ratings Services of New York said today.
The news follows yesterday’s announcement of NFS’ third-quarter loss of $346.6 million, or $2.51 per share, down from a profit of $147 million, or $1.03 per share, in the comparable year-ago period. Investment losses totaled $315.4 million.
The New York-based rating agency decided to keep the firm, its subsidiaries and related securities on CreditWatch “negative” after Nationwide Mutual Insurance Co., the Columbus-based parent, bought up all outstanding shares of NFS — a move that will yank the publicly held NFS back into a mutual structure either in late 2008 or in early 2009, S&P credit analyst Matthew Carroll said in a statement.
Direxion Shares this week for its first time launched ETFs that have a goal of returning 300% of the performance of their underlying indexes, either on the positive side or the inverse.
The Direxion ETFs will use derivatives such as futures and swaps to maintain leverage against the indexes.
The eight ETFs will include both bull and bear funds measured against four indexes — the Russell 1000, Russell 2000, Russell 1000 Energy and Russell 1000 Financial Services indexes.
Lehman Brothers Holdings Inc. chief executive Richard Fuld Jr. will leave the bankrupt investment bank by the end of the year without taking a bonus.
He received a $34.4 million bonus in 2007.
Mr. Fuld will be helping lawyers and other professionals disburse Lehman's assets to pay creditors.
His position will be filled by Bryan Marsal of Alvarez & Marsal Holdings LLC, who is serving as Lehman's chief restructuring officer, according to two people familiar with the bankruptcy case.
The European Commission today said that the European Union countries probably are in the midst of a recession and that the outlook for 2009 growth is dim.
The Brussels, Belgium-based EC said that the economy in the euro zone — the15 countries that use the euro as their currency — will grow just 0.1% next year.
Economic growth for the European Union, which includes the euro zone as well as countries that don’t use the euro, is expected to be 1.4% this year, half what it was in 2007, according to the EC’s report.
Barclays Capital is combining its family of indexes with those of Lehman Brothers under the Barclays Capital Indexes name, said Waqas Samad, head of Barclays Capital’s index products group.
“We have been working flat out to integrate these two very complementary index families. We’ve been in close touch with our clients and partners,” Mr. Samad said. “I think they are seeing that we have brought together the best of both worlds in the new, combined Barclays Capital Indexes.”
As banking leaders attempt to combat the slumping economy, concerns about rising inflation should not be put on the back burner, Federal Reserve Bank of Richmond President Jeffrey Lacker said today.
"It is crucial that we not allow expectations of future inflation to ratchet higher during this recession, he said in prepared remarks today at Hebrew University of Jerusalem.
“While the downturn in real economic activity is going to pose challenges for monetary policy in the period ahead, it's essential that we not let inflation drift from view,” Mr. Lacker said.
RBC Capital Markets Corp. of New York has appointed Kevin Lewis as a managing director and head of its U.S. investment banking consumer/retail group.
He will be based in New York and report to Peter de Vos, RBC's head of U.S. investment banking.
In addition to managing the consumer/retail group, Mr. Lewis will join the U.S. global investment banking management committee.
Prior to joining RBC, he spent 10 years with Lehman Brothers Holdings Inc. of New York, where he was most recently a managing director the firm's global consumer and retail group.
The Federal Reserve Bank of New York has hired the former chief risk officer at The Bear Stearns Cos. Inc., Michael Alix, effective yesterday.
As senior vice president in the bank supervision group, he will serve as a senior adviser to William L. Rutledge, executive vice president of that group.
Mr. Alix was chief risk officer at Bear Stearns from 2006 to 2008, and global head of credit risk management between 1996 and 2006. The New York-based investment bank collapsed in March,
One year ago this week, the board of a struggling Citigroup Inc. ousted chief executive Charles Prince in hopes of turning the bank around.
Twelve months and $68 billion in mortgage-related losses later, Citi shares have lost 65% of their value, and the company has so many troubled assets that its days as a leader in U.S. finance appear to be over.
What was once the world's biggest bank has slipped to a position as America's fourth-largest by market value, ahead of Minneapolis-based U.S. Bancorp.
Government sponsored enterprises need to be retooled in order to create a robust home-lending market that would work even during a credit crunch, Federal Reserve Chairman Ben Bernanke emphasized in a speech today at the University of California, Berkeley.
Some potential options that he outlined to reform GSEs such as Washington-based Fannie Mae and McLean, Va.-based Freddie Mac include privatization, a model that would support the mortgage firms through covered bonds, or a public utility regulation model that would establish pricing and other rules with a promised rate of return for shareholders.
