ABIA selects roster of officers

The American Bankers Insurance Association has elected its 2008-2009 board members and officers.

Thirteen banking and insurance executives have been selected to join the Washington-based trade association’s board.

Notable additions include Joan Cleveland, senior vice president of Prudential Financial Inc. in Newark, N.J.; Patrick A. Cozza, chief executive of HSBC Insurance North America in Bridgewater, N.J.; and Dean Purvis, senor vice president of Aegon Direct Marketing Services Inc. in Baltimore.

ABIA selects roster of officers

The American Bankers Insurance Association has elected its 2008-2009 board members and officers.

Thirteen banking and insurance executives have been selected to join the Washington-based trade association’s board.

Notable additions include Joan Cleveland, senior vice president of Prudential Financial Inc. in Newark, N.J.; Patrick A. Cozza, chief executive of HSBC Insurance North America in Bridgewater, N.J.; and Dean Purvis, senor vice president of Aegon Direct Marketing Services Inc. in Baltimore.

Bipartisan agreement on bailout reached

Congressional leaders have announced a tentative bipartisan agreement on a $700 billion package to bail out the U.S. financial markets.

Speaking at a press conference on Capitol Hill, Sen. Christopher Dodd, D-Conn., said that the “fundamentals” of the agreement on a bailout for the financial system are in place, but he declined to discuss the specifics.

The tentative deal was announced before congressional leaders, President

Bipartisan agreement on bailout reached

Congressional leaders have announced a tentative bipartisan agreement on a $700 billion package to bail out the U.S. financial markets.

Speaking at a press conference on Capitol Hill, Sen. Christopher Dodd, D-Conn., said that the “fundamentals” of the agreement on a bailout for the financial system are in place, but he declined to discuss the specifics.

The tentative deal was announced before congressional leaders, President

Bipartisan agreement on bailout reached

Congressional leaders have announced a tentative bipartisan agreement on a $700 billion package to bail out the U.S. financial markets.

Speaking at a press conference on Capitol Hill, Sen. Christopher Dodd, D-Conn., said that the “fundamentals” of the agreement on a bailout for the financial system are in place, but he declined to discuss the specifics.

The tentative deal was announced before congressional leaders, President

Bipartisan agreement on bailout reached

Congressional leaders have announced a tentative bipartisan agreement on a $700 billion package to bail out the U.S. financial markets.

Speaking at a press conference on Capitol Hill, Sen. Christopher Dodd, D-Conn., said that the “fundamentals” of the agreement on a bailout for the financial system are in place, but he declined to discuss the specifics.

The tentative deal was announced before congressional leaders, President

Bipartisan agreement on bailout reached

Congressional leaders have announced a tentative bipartisan agreement on a $700 billion package to bail out the U.S. financial markets.

Speaking at a press conference on Capitol Hill, Sen. Christopher Dodd, D-Conn., said that the “fundamentals” of the agreement on a bailout for the financial system are in place, but he declined to discuss the specifics.

The tentative deal was announced before congressional leaders, President

Don't blame technology

Where was all of Wall Street’s expensive, supposedly advanced technology when we needed it? Shouldn’t technology have helped to avert the current economic and financial mess?

Those questions probably will prompt years of discussion, but here are a few responses to a query I posted on the popular professional networking website LinkedIn.

Most said that "greedy humans" were unquestionably at fault, not the technology.

Don't blame technology

Where was all of Wall Street’s expensive, supposedly advanced technology when we needed it? Shouldn’t technology have helped to avert the current economic and financial mess?

Those questions probably will prompt years of discussion, but here are a few responses to a query I posted on the popular professional networking website LinkedIn.

Most said that "greedy humans" were unquestionably at fault, not the technology.

GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce.

The figure was revised from an initial reading of 3.3% for the April-June period.

Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%.

GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce.

The figure was revised from an initial reading of 3.3% for the April-June period.

Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%.

Don't blame technology

Where was all of Wall Street’s expensive, supposedly advanced technology when we needed it? Shouldn’t technology have helped to avert the current economic and financial mess?

Those questions probably will prompt years of discussion, but here are a few responses to a query I posted on the popular professional networking website LinkedIn.

Most said that "greedy humans" were unquestionably at fault, not the technology.

Don't blame technology

Where was all of Wall Street’s expensive, supposedly advanced technology when we needed it? Shouldn’t technology have helped to avert the current economic and financial mess?

Those questions probably will prompt years of discussion, but here are a few responses to a query I posted on the popular professional networking website LinkedIn.

Most said that "greedy humans" were unquestionably at fault, not the technology.

GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce.

The figure was revised from an initial reading of 3.3% for the April-June period.

Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%.

GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce.

The figure was revised from an initial reading of 3.3% for the April-June period.

Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%.

GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce.

The figure was revised from an initial reading of 3.3% for the April-June period.

Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%.

BlackRock's Doll bullish on domestic equity

Domestic equities are a good investment, a money manager told attendees at the Greenwood Village, Colo.-based Investment Management Consultants Association’s conference yesterday in Denver.

“I overweight U.S. domestic equity,” Robert Doll, vice chairman and global chief investment officer for equity at BlackRock Inc., said during a discussion on portfolio construction.

“Domestic equity has the highest predictability of earnings, and the lowest volatility. No other country comes close to the U.S. in terms of aggressiveness in monetary policy.”

BlackRock's Doll bullish on domestic equity

Domestic equities are a good investment, a money manager told attendees at the Greenwood Village, Colo.-based Investment Management Consultants Association’s conference yesterday in Denver.

“I overweight U.S. domestic equity,” Robert Doll, vice chairman and global chief investment officer for equity at BlackRock Inc., said during a discussion on portfolio construction.

“Domestic equity has the highest predictability of earnings, and the lowest volatility. No other country comes close to the U.S. in terms of aggressiveness in monetary policy.”

IMCA seeking third-party accreditation

The Investment Management Consultants Association plans to formally apply for accreditation in 2010, president Garry Bridgeman confirmed today at the Greenwood Village, Colo.-based organization’s professional development conference in Denver.

The association will seek third-party accreditation for IMCA’s certified investment management analyst designation.

The accreditation could be provided by the American National Standards Institute or the National Commission for Certifying Agencies.

IMCA seeking third-party accreditation

The Investment Management Consultants Association plans to formally apply for accreditation in 2010, president Garry Bridgeman confirmed today at the Greenwood Village, Colo.-based organization’s professional development conference in Denver.

The association will seek third-party accreditation for IMCA’s certified investment management analyst designation.

The accreditation could be provided by the American National Standards Institute or the National Commission for Certifying Agencies.

NFP warns investors of revenue drop

National Financial Partners Corp. warned investors that its total revenue took a dive during the third quarter.

The New York-based financial adviser network said its total revenue declined by about 7% during the first two months of the third quarter, compared to the same period in 2007.

Same-store revenue also fell around 10%.

Meanwhile, operating expenses leapt around 11% during the first two months of the third quarter.

Greenberg offloads 40 million shares of AIG

Maurice “Hank” Greenberg, ex-chairman and chief executive of AIG, yesterday sold off 40 million shares of the bailed-out firm, reaping $125.9 million for himself and a company he runs.

Starr International Co. Inc., of which he is chairman, sold 35 million shares of American International Group Inc.’s common stock for $3.06 apiece, according to a filing with the Securities and Exchange Commission.

Starr International has headquarters in Hamilton, Bermuda, and Dublin, Ireland.

NFP warns investors of revenue drop

National Financial Partners Corp. warned investors that its total revenue took a dive during the third quarter.

The New York-based financial adviser network said its total revenue declined by about 7% during the first two months of the third quarter, compared to the same period in 2007.

Same-store revenue also fell around 10%.

Meanwhile, operating expenses leapt around 11% during the first two months of the third quarter.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

Greenberg offloads 40 million shares of AIG

Maurice “Hank” Greenberg, ex-chairman and chief executive of AIG, yesterday sold off 40 million shares of the bailed-out firm, reaping $125.9 million for himself and a company he runs.

Starr International Co. Inc., of which he is chairman, sold 35 million shares of American International Group Inc.’s common stock for $3.06 apiece, according to a filing with the Securities and Exchange Commission.

Starr International has headquarters in Hamilton, Bermuda, and Dublin, Ireland.

NFP warns investors of revenue drop

National Financial Partners Corp. warned investors that its total revenue took a dive during the third quarter.

The New York-based financial adviser network said its total revenue declined by about 7% during the first two months of the third quarter, compared to the same period in 2007.

Same-store revenue also fell around 10%.

Meanwhile, operating expenses leapt around 11% during the first two months of the third quarter.

Greenberg offloads 40 million shares of AIG

Maurice “Hank” Greenberg, ex-chairman and chief executive of AIG, yesterday sold off 40 million shares of the bailed-out firm, reaping $125.9 million for himself and a company he runs.

Starr International Co. Inc., of which he is chairman, sold 35 million shares of American International Group Inc.’s common stock for $3.06 apiece, according to a filing with the Securities and Exchange Commission.

Starr International has headquarters in Hamilton, Bermuda, and Dublin, Ireland.

Greenberg offloads 40 million shares of AIG

Maurice “Hank” Greenberg, ex-chairman and chief executive of AIG, yesterday sold off 40 million shares of the bailed-out firm, reaping $125.9 million for himself and a company he runs.

Starr International Co. Inc., of which he is chairman, sold 35 million shares of American International Group Inc.’s common stock for $3.06 apiece, according to a filing with the Securities and Exchange Commission.

Starr International has headquarters in Hamilton, Bermuda, and Dublin, Ireland.

Greenberg offloads 40 million shares of AIG

Maurice “Hank” Greenberg, ex-chairman and chief executive of AIG, yesterday sold off 40 million shares of the bailed-out firm, reaping $125.9 million for himself and a company he runs.

Starr International Co. Inc., of which he is chairman, sold 35 million shares of American International Group Inc.’s common stock for $3.06 apiece, according to a filing with the Securities and Exchange Commission.

Starr International has headquarters in Hamilton, Bermuda, and Dublin, Ireland.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

AIG announces preferred stock issue

AIG today announced that it will issue a new series of preferred stock for the U.S. Department of the Treasury in conjunction with the federal lifeline it received.

American International Group Inc. of New York will issue a series of convertible participating serial preferred stock to a trust that will hold these shares for the Treasury.

This stock will comply with the 79.9% aggregate shareholder voting power condition of the $85 billion bailout from the Federal Reserve.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

Scammer gets 127-year sentence

Daniel W. Heath was handed a 127 year and four month sentence today for his role in a Ponzi scheme that bilked elderly investors out of nearly $190 million.

He was the last of three con artists — one of whom was his father — to get jail time for running a scheme that raised more than $187 million from over 1,800 elderly investors in Southern California.

In January he was found guilty by a jury in the Superior Court of California in Riverside of 400 felony charges.

Scammer gets 127-year sentence

Daniel W. Heath was handed a 127 year and four month sentence today for his role in a Ponzi scheme that bilked elderly investors out of nearly $190 million.

He was the last of three con artists — one of whom was his father — to get jail time for running a scheme that raised more than $187 million from over 1,800 elderly investors in Southern California.

In January he was found guilty by a jury in the Superior Court of California in Riverside of 400 felony charges.

AIG announces preferred stock issue

AIG today announced that it will issue a new series of preferred stock for the U.S. Department of the Treasury in conjunction with the federal lifeline it received.

American International Group Inc. of New York will issue a series of convertible participating serial preferred stock to a trust that will hold these shares for the Treasury.

This stock will comply with the 79.9% aggregate shareholder voting power condition of the $85 billion bailout from the Federal Reserve.

AIG announces preferred stock issue

AIG today announced that it will issue a new series of preferred stock for the U.S. Department of the Treasury in conjunction with the federal lifeline it received.

American International Group Inc. of New York will issue a series of convertible participating serial preferred stock to a trust that will hold these shares for the Treasury.

This stock will comply with the 79.9% aggregate shareholder voting power condition of the $85 billion bailout from the Federal Reserve.

Financial intermediaries drawn to equity funds

Despite the volatility of the markets in recent weeks, nearly a third of financial intermediaries are choosing to invest more in equity funds, according to a new survey.

Twenty-nine percent of the 174 financial intermediaries surveyed by New York-based kasina LLC last Wednesday and Thursday were investing more in equity funds, compared with 24% who were choosing to invest less and 47% who were investing at the same level or concentrating on other securities products.

Financial intermediaries drawn to equity funds

Despite the volatility of the markets in recent weeks, nearly a third of financial intermediaries are choosing to invest more in equity funds, according to a new survey.

Twenty-nine percent of the 174 financial intermediaries surveyed by New York-based kasina LLC last Wednesday and Thursday were investing more in equity funds, compared with 24% who were choosing to invest less and 47% who were investing at the same level or concentrating on other securities products.

Comprehensive IRA database planned

The Investment Company Institute and the Securities Industry and Financial Markets Association are launching a new research project to improve understanding of investors' use of individual retirement accounts.

With the results of the research, the two associations will create a database that produces a major research report annually starting in 2009.

The data will cover demographics of IRA accountholders and their investment activities, including contributions, rollovers, asset allocation, account balances and distributions.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

Adviser under suspicion found dead

A Vermont financial adviser who was facing embezzlement and grand-larceny charges for stealing from a terminally ill client was found dead yesterday in Shaftsbury, Vt., according to published reports.

Mark Stevenson, former president of Bennington, Vt.-based Wealth Management International, faced up to 20 years behind bars for swindling more than $100,000 from a client suffering from terminal cancer, published reports said.

Hedge fund manager convicted of fraud

Michael Lauer, the head of Lancer Management Group LLC and Lancer Management Group II LLC of Greenwich, Conn., has been found guilty of overstating the hedge funds’ valuations, manipulating the prices of seven securities and falsely representing the funds’ holdings in newsletters.

On the heels of a decision yesterday by the U.S. District Court in the Southern District of Florida in Miami, the Securities and Exchange Commission said it is seeking a financial penalty and disgorgement of more than $50 million.

HSBC to lay off 1,100 employees

The worldwide credit crisis has hit Europe’s largest bank, HSBC Holdings PLC, which today announced plans to slash 1,100 jobs in its global banking and markets division.

The job cuts at London-based HSBC will comprise 4% of its global banking and markets division's unit and include both front- and back-office operations.

The bank will lay off 650 full-time employees and 450 temporary, or contractor, positions.

Five hundred of the cuts will be in HSBC's England offices.

Jobless claims at seven-year high

New jobless claims rose to their highest point in seven years due to the weakening economy and the recent hurricane season, according to a report released today by the Department of Labor.

New requests for jobless benefits for the one-week period ended Sept. 20 rose by 32,000 to a seasonally adjusted 493,000 claims.

The number of new claims was the highest since the aftermath of the 9/11 terrorist attacks, when they hit 517,000.

SEC demands records from hedge funds

The Securities and Exchange Commission has ordered more than two dozen hedge funds to turn over trading records and e-mail communications made between Sept. 1-19, The Wall Street Journal reported today.

The object is to determine whether traders spread rumors to manipulate shares.

The Sept. 22 order identified six financial services companies may have been victimized by stock manipulation by the hedge funds: New York-based American International Group Inc., Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., Morgan Stanley and Merrill Lynch & Co. Inc., along with Seattle-based Washington Mutual Inc., according to the Journal.

$700 billion bailout revived

The Bush administration and Congress returned to the negotiating table Friday on a $700 billion financial bailout, following the collapse of Washington Mutual Inc., according to the Associated Press.

"I'm convinced that by Sunday we will have an agreement that people can understand on this bill," said Massachusetts Rep. Barney Frank, who has played a key role in efforts to avoid an economic crisis.

A deal is moving closer to fruition, said House Speaker Nancy Pelosi, D-Calif., but neither she nor Mr. Frank discussed the specifics of a deal at a press conference in Washington. Negotiations are expected to continue into the evening.

Jobless claims at seven-year high

New jobless claims rose to their highest point in seven years due to the weakening economy and the recent hurricane season, according to a report released today by the Department of Labor.

New requests for jobless benefits for the one-week period ended Sept. 20 rose by 32,000 to a seasonally adjusted 493,000 claims.

The number of new claims was the highest since the aftermath of the 9/11 terrorist attacks, when they hit 517,000.

Adviser under suspicion found dead

A Vermont financial adviser who was facing embezzlement and grand-larceny charges for stealing from a terminally ill client was found dead yesterday in Shaftsbury, Vt., according to published reports.

Mark Stevenson, former president of Bennington, Vt.-based Wealth Management International, faced up to 20 years behind bars for swindling more than $100,000 from a client suffering from terminal cancer, published reports said.

Jamie Dimon fans say 'Thank you, WaMu'

By snapping up Washington Mutual moments after it went into the record books late Thursday as the largest bank failure in U.S. history, J.P. Morgan Chase Chief Executive Jamie Dimon has created overnight a 240,000-employee behemoth that will duke it out with Bank of America Corp. to dominate banking for years to come.

“JPMorgan Chase took advantage of a banking industry problem…to protect its interests and enhance shareholder value,” wrote CreditSights analyst David Hendler in a research report.

When cashing out of an annuity makes sense

Sometimes cashing out of an annuity can make more sense than doing a tax-free transfer into a new product — even if it presents the client with a tax bill.

“If a new client comes in with an annuity that’s inappropriate for him — a young person whose tax rates will be higher in 30 years than they are now, for example — I’d probably encourage him to get out of it this year, when tax rates are at a historic low,” said Loretta Nolan, a financial planner and head of an eponymous firm in Old Greenwich, Conn.

CEO Fishman could exit WaMu with $11.6M

With JPMorgan’s takeover of Washington Mutual, it’s unclear what role Alan Fishman — who was hired only 18 days ago as WaMu’s new CEO — will play in the combined company.

But if Mr. Fishman leaves the thrift, it’s pretty clear that he would be well-compensated for his short stint on the job.

Mr. Fishman appears set to collect a payout worth $11.62 million if he leaves the company “with cause” or because of “constructive termination,” according to a copy of his employment agreement, which was disclosed in a regulatory filing on Sept. 11.

TD Ameritrade to help Reserve Fund investors

TD Ameritrade Holding Corp. said yesterday it would commit up to $50 million to “mitigate client losses” in a money market fund run by The Reserve Management Corp. of New York.

On Sept. 16, The Reserve froze its Reserve Primary Fund, saying the fund's net asset value was $0.97 due to exposure to commercial paper from Lehman Brothers Holdings Inc. of New York, which had filed for bankruptcy.

Jim Frawley, TD Ameritrade spokesman, said the $50 million would cover the 3 cent per share loss suffered by customers of TD Ameritrade of Omaha, Neb.

Fidelity site ranked No. 1 for intermediaries

Lauded for its ability to make use of advanced technology to make its website user-friendly, Fidelity Investments Institutional Services Co. of Boston was ranked as the financial intermediary with the best website by kasina LLC.

The study, “Top 10 Intermediary Web Sites,” identified the top 10 websites within the intermediary channel, ranking the sites based on their availability of content, quality of content and user experience.

National Financial may lose on Merrill-BofA deal

While pundits and industry insiders laud the acquisition of New York-based Merrill Lynch & Co. Inc. by Bank of America Corp. of Charlotte, N.C., there might be fallout few have thought about.

Bank of America Corp. has almost $211 billion in client brokerage assets, much of it under custody with National Financial Services LLC of Boston.

The bank’s acquisition of Merrill Lynch provides them with a self-clearing custodian and presents the bank the opportunity to cut what could amount to significant costs by putting those assets with what will become its Merrill Lynch unit.

WaMu seized, sold to JPMorgan Chase

JPMorgan Chase & Co. will acquire all deposits, assets and certain liabilities of Washington Mutual Inc. from the Federal Deposit Insurance Corp., which has taken control of the nation’s largest thrift.

As part of this transaction, JPMorgan will pay approximately $1.9 billion to the FDIC.

It plans to write down WaMu’s loan portfolio by approximately $31 billion.

The New York-based bank will not be acquiring any assets or liabilities of WaMu’s parent holding company or its non-bank subsidiaries.

Investors seek safe haven in gold

Investors scared away by shaky equity markets have been mining the gold market, but financial advisers are mixed as to whether the investments in the precious metal are a long-term play.

Since the financial markets began their descent Sept. 12, the price of an ounce of gold has increased $136.16, or 18.2%, to $882.63 at the close of trading yesterday.

Gold prices had risen 5.9% year-to-date.

Meanwhile, the value of the dollar declined 4.5% on the euro to $1.46 at the close of trading yesterday.

Hong Kong bank run prompts $500M infusion

The Hong Kong Monetary Authority today injected $500 million into Hong Kong's banking system in an attempt to calm liquidity fears in the region.

The move by Hong Kong's central bank comes on the second day of a bank run on the Bank of East Asia Ltd.’s offices in Hong Kong and Singapore.

Customers are demanding withdrawals in the wake of unconfirmed rumors that the financial institution lacked the stability to survive the global credit crunch.

Money market fund redemptions taper off

Redemptions from U.S. money market mutual funds declined on Friday, with investors pulling out $5.2 billion compared to $47.7 billion the day before, according to the Westborough, Mass.-based research firm iMoneyNet.

Last week, investors pulled out a record amount of cash out of money market funds following the crisis sparked by when the net asset value of New York-based Reserve Management Co. Inc.’s Primary Fund dropped to 97 cents.

NAIC blasts national charter proponents

The National Association of Insurance Commissioners is lashing out at proponents of a national charter in the wake of the bailout of American International Group Inc., saying state control helped keep the company afloat.

Today, an op-ed article in The Wall Street Journal by a bipartisan group from the Senate and Congress blasted state control of the insurance industry.

During a media briefing hosted today by the Kansas City, Mo.-based NAIC, commissioners said state insurance regulation kept New York-based AIG's subsidiaries healthy while the firm’s non-insurance assets, such as credit default swaps, which are federally regulated, absorbed large-scale losses.

Don’t cap the executive pay geyser

With a taxpayer bailout of financial firms in the hundreds of billions of dollars looming, limiting the compensation of Wall Street executives may seem like a good idea.

It’s not.

The government should keep its nose out of executive compensation.

That position may come as a shock to some readers who have taken the time to respond to previous columns and believe, erroneously, that I’m a communist-socialist-pinko — or, just as depraved to some, a liberal.

Don’t cap the executive pay geyser

With a taxpayer bailout of financial firms in the hundreds of billions of dollars looming, limiting the compensation of Wall Street executives may seem like a good idea.

It’s not.

The government should keep its nose out of executive compensation.

That position may come as a shock to some readers who have taken the time to respond to previous columns and believe, erroneously, that I’m a communist-socialist-pinko — or, just as depraved to some, a liberal.

Paulson does about-face on compensation

Treasury Secretary Henry Paulson today told a House committee he was open to considering limits on executive compensation in the Bush administration’s proposed $700 billion bailout package for the nation’s financial institutions.

But in a statement before the House Financial Services Committee this afternoon, Mr. Paulson did not explain how the provision would work.

Many lawmakers have called for limits in the compensation of executives whose companies benefit from a federal bailout. Mr. Paulson opposed the proposal as recently as Tuesday, but in opening remarks to the House panel today, Mr. Paulson said he had changed his mind.

Don’t cap the executive pay geyser

With a taxpayer bailout of financial firms in the hundreds of billions of dollars looming, limiting the compensation of Wall Street executives may seem like a good idea.

It’s not.

The government should keep its nose out of executive compensation.

That position may come as a shock to some readers who have taken the time to respond to previous columns and believe, erroneously, that I’m a communist-socialist-pinko — or, just as depraved to some, a liberal.

Buffett gives Goldman $5 billion boost

Berkshire Hathaway Inc., the investment company run by Warren Buffett, has invested $5 billion in The Goldman Sachs Group Inc. in a move to provide a liquidity infusion to the venerable Wall Street firm and a vote of confidence to the financial markets.

Under the agreement, the Omaha, Neb.-based company will purchase $5 billion of perpetual preferred stock that carries a 10% dividend.

In conjunction with the offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock at $115 a share over the next five years.

Buffett gives Goldman $5 billion boost

Berkshire Hathaway Inc., the investment company run by Warren Buffett, has invested $5 billion in The Goldman Sachs Group Inc. in a move to provide a liquidity infusion to the venerable Wall Street firm and a vote of confidence to the financial markets.

Under the agreement, the Omaha, Neb.-based company will purchase $5 billion of perpetual preferred stock that carries a 10% dividend.

In conjunction with the offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock at $115 a share over the next five years.

Paulson does about-face on compensation

Treasury Secretary Henry Paulson today told a House committee he was open to considering limits on executive compensation in the Bush administration’s proposed $700 billion bailout package for the nation’s financial institutions.

But in a statement before the House Financial Services Committee this afternoon, Mr. Paulson did not explain how the provision would work.

Many lawmakers have called for limits in the compensation of executives whose companies benefit from a federal bailout. Mr. Paulson opposed the proposal as recently as Tuesday, but in opening remarks to the House panel today, Mr. Paulson said he had changed his mind.

Buffett gives Goldman $5 billion boost

Berkshire Hathaway Inc., the investment company run by Warren Buffett, has invested $5 billion in The Goldman Sachs Group Inc. in a move to provide a liquidity infusion to the venerable Wall Street firm and a vote of confidence to the financial markets.

Under the agreement, the Omaha, Neb.-based company will purchase $5 billion of perpetual preferred stock that carries a 10% dividend.

In conjunction with the offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock at $115 a share over the next five years.

AIG inks bailout deal, suspends dividends

American International Group Inc. has signed a definitive agreement to accept the $85 billion revolving credit facility from the Federal Reserve.

As a result of the agreement, AIG is suspending dividend payments on its common stock in a move that will help the beleaguered insurer clean up its balance sheet.

In exchange for the bailout package, the government will receive a 79.9% equity stake.

Under the terms of the agreement, the New York-based company will be required to pay interest on the two-year loan at a rate based on the three-month London Interbank Bid Rate plus 8.5%.

AIG inks bailout deal, suspends dividends

American International Group Inc. has signed a definitive agreement to accept the $85 billion revolving credit facility from the Federal Reserve.

As a result of the agreement, AIG is suspending dividend payments on its common stock in a move that will help the beleaguered insurer clean up its balance sheet.

In exchange for the bailout package, the government will receive a 79.9% equity stake.

Under the terms of the agreement, the New York-based company will be required to pay interest on the two-year loan at a rate based on the three-month London Interbank Bid Rate plus 8.5%.

AIG inks bailout deal, suspends dividends

American International Group Inc. has signed a definitive agreement to accept the $85 billion revolving credit facility from the Federal Reserve.

As a result of the agreement, AIG is suspending dividend payments on its common stock in a move that will help the beleaguered insurer clean up its balance sheet.

In exchange for the bailout package, the government will receive a 79.9% equity stake.

Under the terms of the agreement, the New York-based company will be required to pay interest on the two-year loan at a rate based on the three-month London Interbank Bid Rate plus 8.5%.

AIG inks bailout deal, suspends dividends

American International Group Inc. has signed a definitive agreement to accept the $85 billion revolving credit facility from the Federal Reserve.

As a result of the agreement, AIG is suspending dividend payments on its common stock in a move that will help the beleaguered insurer clean up its balance sheet.

In exchange for the bailout package, the government will receive a 79.9% equity stake.

Under the terms of the agreement, the New York-based company will be required to pay interest on the two-year loan at a rate based on the three-month London Interbank Bid Rate plus 8.5%.

Report: Legg Mason eyeing private sector move

Publicly traded money manager Legg Mason Inc. is considering taking itself private, the New York Post reported today, citing people familiar with the matter.

Baltimore-based Legg Mason is weighing a privatization move that could include one or two private-equity investors, with New York-based Kohlberg Kravis Roberts & Co. LP being one of the interested parties, the Post story said.

Even though there is interest in going private, Legg Mason may wait until the turmoil on Wall Street settles down before making any decision, according to the Post.

NAIC issues senior-specific designation rule

The National Association of Insurance Commissioners today announced its adoption of a rule that sets standards on the use of senior-specific designations.

The “Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities” sets boundaries on agents’ use of designations when they sell life insurance and annuities.

Producers are barred from using certifications and designations to mislead seniors into buying products or giving them advice on purchasing insurance or annuities.

Week 3: Checklists for retirement assets

September’s agenda: Uncovering retirement assets with client reviews

The challenge: Over the past two weeks we have focused on putting a foundation in place for year-end client reviews.

As we discussed, your top-level, platinum clients will receive in-person reviews while your gold and silver clients will receive a mix of phone and in-person help.

Reviews help uncover retirement assets, but how do you identify retirement assets and track them?

Hellman and Friedman in talks with Lehman

Private-equity firm Hellman & Friedman LLC of San Francisco is in talks with Lehman Brothers Holdings Inc. of New York to purchase the bankrupt investment bank’s asset management business, according to an investment banking source familiar with the discussions.

“The pricing will be far below the $8 billion reported originally,” the source, who asked not to be named, said.

According to the banker, the value of the deal would be closer to $3 billion for 100% of the Lehman Brothers, which includes storied investment manager Neuberger Berman.

Paulson unveils massive plan to buy bad debt

Adding to sweeping government actions announced to alleviate the financial crisis, Treasury Secretary Henry Paulson Jr. this morning proposed new measures aimed at buying bad mortgages and distressed debt.

In a press conference, Mr. Paulson called on the federal government to implement a program to remove illiquid mortgage assets that are threatening the economy and to create a program that is “ufficiently large”to have a “maximum impact” while shielding taxpayers to the greatest extent possible.

SEC relaxes short-sale disclosure

Information on short sales that investment managers must provide under an emergency order issued last week will not be made public initially but rather two weeks after it is filed, the Securities and Exchange Commission ruled Sunday.

The agency issued amendments to its emergency order of Sept. 18 requiring institutional money managers to report short sales.

The amended order took effect today.

Managed Funds Association president and chief executive Richard Baker last week called for the SEC to allow hedge funds to report their short sales to the SEC on a non-public basis.

Nomura takes another bite out of Lehman

Following a deal to acquire Lehman Brothers Holdings Inc.’s operations in the Pacific region on Monday, (InvestmentNews, Sept. 22), Japanese investment bank Nomura Holdings Inc. today announced it will purchase the European and Middle Eastern equities and investment banking operations of the bankrupt investment bank.

The price tag for the acquisition was not disclosed.

Tokyo-based Nomura said the acquisition will not include any trading assets or liabilities from the New York-based company.

T. Boone Pickens takes $1B bath on hedge funds

Famed Texas oil investor T. Boone Pickens, who has recently called for greater energy independence by investing in alternative sources, has seen his energy-related hedge funds lose nearly $1 billion this year, The Wall Street Journal reported today.

Mr. Pickens, founder of Dallas-based hedge fund manager BP Capital LLC, has seen two funds rack up nearly $1 billion in total losses, leading to $270 million in personal losses for the oil magnate.

BNY Mellon takes $425 million charge

In an attempt to rescue its investments affected by Lehman Brothers Holdings Inc.’s filing for bankruptcy protection, Bank of New York Mellon Corp. announced today that it will take a $425 million after-tax third-quarter charge.

The charge is aimed at enabling BNY Mellon’s four money market mutual funds and five commingled funds to continue to operate at a stable share price of $1 to protect investors from potential losses following the collapse of New York-based Lehman Brothers.

The bright side of the short-selling ban

For a little while, at least, advisers who were fretting over the Securities and Exchange Commission’s focus on compliance issues such as soundness of portfolio valuations, possible access to non-public information and treatment of elderly clients can take a break.

“Given what’s happened in the last few weeks,’’ ACA Compliance Group co-founder Gary Watkins told independent advisers attending Charles Schwab & Co. Inc.’s annual Impact conference in Atlanta today, “the SEC is going to be focusing advisers that are short selling.’’

Legg pumps $630M into money market funds

Baltimore-based Legg Mason Inc. announced today that the firm has entered into agreements to support three money market funds: Citi Institutional Cash Reserves (CILXX); Western Asset Institutional Money Market Fund (INSXX); and a fund for offshore investors, CILF U.S. Dollar Liquidity Fund.

The funds are managed by Western Asset Management.

Legg amended an existing capital agreement to provide for an additional $350 million for Citi Institutional Cash Reserves and entered a new agreement for $20 million for Western Asset Institutional Money Market Fund, due to the funds’ holdings of troubled asset backed commercial paper securities.

AIG has no plans to sell its commercial lines

American International Group Inc. does not intend to sell its U.S. and foreign commercial property/casualty businesses, senior executives at the company told Business Insurance Thursday.

“Domestic commercial insurance and foreign general insurance are core, and we have no plans to sell those,” said Kristian Moor, AIG executive VP and chief executive officer of AIG Property Casualty Group.

“Our insurance companies remain in strong financial condition,” said John Doyle, chief executive officer of AIG Commercial Insurance, the commercial lines division of AIG Property Casualty Group.

Stocks, dollar sink on fears over federal deficit

U.S. stocks sold off today as Treasury Secretary Henry Paulson’s proposed $700 billion bailout of the U.S. financial system raised concern about the exploding federal deficit, sending the dollar on a steep decline and crude oil prices on a strong rebound.

The Dow Jones industrial average closed down 372.75, or 3.27%, at 11,015.69; the S&P 500 fell 47.99, or 3.82%, ending at 1,207.09; and the Nasdaq composite closed down 94.92, or 4.17%, at 2,178.98. All numbers are preliminary.

Ousted Krawcheck said to clash with Citi CEO

The announcement that Sallie Krawcheck, head of Citigroup Inc.’s global-wealth-management group, will leave the firm "to pursue other opportunities" at the end of the year has sparked fevered speculation on the Street and in the firm as to the reason for her ouster.

Many think she was forced out due to disagreements with Citigroup chief executive Vikram Pandit, according to interviews and press reports.

Some say Ms. Krawcheck wanted the firm to make customers whole for losses in mortgage-backed hedge funds and auction rate securities, and clashed with Mr. Pandit over plans to restructure the firm.

Hedge funds clipped amid volatile markets

The rocky financial markets of 2008 have taken a toll on hedge funds, with liquidations up and new fund launches down, according to the latest data from HFR Group LLC in Chicago.

Through the first half of the year, 350 hedge funds went out of business, reflecting a 15% increase, compared with the 303 liquidations in the comparable period in 2007.

Last year’s total liquidation figure was 563, according to HFR.

The current pace is still not likely to reach the record year of 2005, when 850 funds closed their doors.

Lehman sells Asia division

A week after filing for Chapter 11 bankruptcy protection, Lehman Brothers Holdings Inc. of New York has decided to sell its Asian operations to Nomura Holdings Inc. for an undisclosed amount.

The deal involves Tokyo-based Nomura’s taking over Lehman’s Asian franchises and roughly 3,000 employees in such Pacific-region countries as Japan and Australia.

“This is a once-in-a-generation opportunity, and we are delighted to be able to partner with Lehman Brothers' talented people to create one of the biggest independent global financial institutions that provides world-class investment-banking services to clients across the globe,” Kenichi Watanabe, Nomura's president and chief executive, said in a statement.

Gold futures lose glitter after bailout

In the throes of a financial crisis, investors sought safety in gold this week, but now that Washington has announced plans to bail out big-name financial institutions, gold futures have started to tank.

The price of December gold had risen to $897 per ounce yesterday, up $46.50, or 5.47%, from its Wednesday price.

Today, that price fell $33, or 3.37%, to $864 per ounce, according to the New York Mercantile Exchange.

MarketWatch reported a 7.6% drop at one point this morning, the largest fall in gold prices in 25 years.

Fed to the rescue of AIG

The Federal Reserve Bank of New York announced tonight that it will lend as much as $85 billion to American International Group Inc. to meet the liquidity needs of the troubled insurer.

Under the terms of the agreement, the U.S. government will receive a 79.9% equity interest in the New York-based insurer and has the right to veto the payment of dividends to common and preferred shareholders.

“The board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance,” the Federal Reserve said in a statement.

Housing starts fell 6.2% in August

Housing starts fell 6.2% last month from July to a seasonally adjusted annual rate of 895,000 units.

That is 33.1% below the figure reported in August 2007, according to a report that the Department of Commerce released this morning.

Building permits were reported at a seasonally adjusted annual rate of 854,000 units — 8.9% below the revised rate for July of 937,000 units. The number of permits fell 36.4% from a year earlier.

No end to credit fears as stocks plummet

U.S. equities plunged today as investors dumped financial stocks amid fears financing will be difficult and costly to obtain for a sector that lives on leverage.

The Dow Jones industrial average closed down 449.36, or 4.05%, at 10,609.66; the S&P 500 fell 57.21, or 4.71%, ending at 1,156.39; and the Nasdaq composite closed down 109.05, or 4.94%, at 2.098.85. All numbers are preliminary.

The mood of investors soured following the Federal Reserve’s takeover of troubled insurer American International Group Inc. and Lehman Brothers Holdings Inc. fire sale of its North American brokerage and investment banking business to Barclays PLC.

Huge money market fund 'breaks the buck'

Signaling the depth of the current financial crisis, the money market industry, once considered to be a safe haven for investors, took a hit yesterday when the nation’s oldest money market mutual fund, The Reserve Primary Fund (RPRXX), lost value and “broke the buck.”

The fund fell below $1 in net asset value yesterday because of its exposure to debt from Lehman Brothers Holdings Inc., which filed for bankruptcy Monday.

WaMu stock rises as it seeks suitors

Shares of Washington Mutual Inc. increased by as much as 24% in Thursday morning trading following reports the Seattle-based firm has put itself up for sale.

The Goldman Sachs Group Inc. of New York has been hired to advise WaMu, according to published reports.

Some potential bidders that Goldman has talked to include Wells Fargo & Co. of San Francisco, and Citigroup Inc. and JPMorgan Chase & Co., both of New York, according to The Wall Street Journal.

U.S. hedge funds blast U.K. short-selling ban

A ban on the short-sale of financial stocks put into effect today by Britain’s Financial Services Authority today was criticized by the U.S. trade group that represents hedge funds.

In a conference call in Washington, this afternoon, Managed Funds Association president and chief executive Richard Baker expressed concern about the effect the British rule may have on regulators and government officials in the United States.

Barclays eyes Lehman's investment banking group

The bankrupt Lehman Brothers Holdings Inc. on Tuesday afternoon was near announcing a deal to sell its U.S. investment banking operations for a little less than $2 billion to Barclays PLC of London, according to published reports.

Barclays had been in talks with Lehman to buy the entire firm before it filed for bankruptcy protection on Monday.

The potential deal centers on Lehman’s core U.S. broker-dealer operations, according to the Financial Times.

BlackRock likely to stay independent

BlackRock likely will remain an independent investment manager after Bank of America picks up a 50% stake in the firm through its proposed $50 billion acquisition of Merrill Lynch.

Bank of America announced the deal today, in which it will exchange 0.8595 shares of its stock for each common share of Merrill Lynch.

“BlackRock is an independent company and will remain that way,” said BlackRock spokeswoman Bobbie Collins. “Merrill Lynch is our largest shareholder. Ownership of the shares will be transferred (to Bank of America), but not the company. It will be business as usual.”

Lehman to file for bankruptcy

Lehman Brothers Holdings Inc., the 158-year-old financial services firm, has announced that it intends to file for Chapter 11 bankruptcy after the investment bank's attempts to find a buyer fell flat.

Lehman said it intends to file the petition with the United States Bankruptcy Court for the Southern District of New York, in order to protect its assets and maximize value, according to a statement by the firm.

The company noted that none of its broker-dealer subsidiaries or other units will be included in the filing and all of the broker-dealers will continue to operate.

Exodus from ‘broken’ wirehouses seen

Expect a continued exodus of financial advisers, wealth managers and client assets from large Wall Street firms as a result of today’s turmoil in the financial markets and the pending sale of New York’s Merrill Lynch & Co, Inc. to Bank of America Corp, of Charlotte, N.C., industry executives say.

“There will be massive defections of clients and advisers,” said Liz Nesvold, managing partner of Silver Lane Advisors LLC of New York. “The wirehouse model, which was damaged, is now broken.”

Thain: Merrill reps OK with BofA deal

John Thain, chief executive Merrill Lynch & Co. Inc. of New York, said today that the firm's employees support being taken over by Bank of America Corp. of Charlotte, N.C.

“Already this morning, almost 100% of the [financial adviser] reaction has been positive,” Mr. Thain said at a press conference this morning.

Mr. Thain and Bank of America Corp. chief executive Ken Lewis later held a conference call with the firm's brokers.

Wall Street walloped by Wall Street

U.S. stocks suffered their sharpest one-day decline in seven years as the storm that has engulfed financial issues gained strength with the bankruptcy filing of Lehman Brothers Holdings, the takeover of Merrill Lynch by Bank of America and American International Group getting the green light from New York State officials and regulators to tap into its own capital.

The Dow Jones industrial average was down -504.48, or -4.42%. The Standard & Poor’s 500 Index was down 58.17 points, or 4.7%, to 1,193.53, its lowest level since October 2005.

Advisers watch grim AIG saga unfold

After a weekend of turmoil, shares of American International Group Inc. lost more than half their value in the first hour of trading.

AIG closed Friday at $12.14 per share. At noon today, a share of the insurer was worth $4.13.

Yesterday, AIG executives held talks with Kohlberg Kravis Roberts & Co. LP and J.C. Flowers & Co. LLC seeking to raise $20 billion in capital and sell $20 billion in assets, insiders told Bloomberg.

Banks borrow big time from discount window

Commercial banks borrowed $23.5 billion from the Federal Reserve’s discount window in the one-week period ended Sept. 10 — a record level, according to a report issued by the central bank yesterday.

The $23.5 billion borrowed this week was up 23% from $19.09 billion last week.

The Federal Reserve tracks discount-window loans each week on Wednesday.

Three months ago, New York Federal Reserve President Timothy F. Geithner

Banks borrow big time from discount window

Commercial banks borrowed $23.5 billion from the Federal Reserve’s discount window in the one-week period ended Sept. 10 — a record level, according to a report issued by the central bank yesterday.

The $23.5 billion borrowed this week was up 23% from $19.09 billion last week.

The Federal Reserve tracks discount-window loans each week on Wednesday.

Three months ago, New York Federal Reserve President Timothy F. Geithner

Mega-firms pool $70 billion to hedge volatility

A group of ten global commercial and investment banks announced a $70 billion loan program that financial services companies can tap into in order to "enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."

The banks included in the facility are: Charlotte, N.C.-based Bank of America Corp.; Barclays PLC of London; Citigroup Inc. of New York; Credit Suisse Group of Zurich, Switzerland; Deutsche Bank AG of Frankfurt, Germany; Goldman Sachs Group Inc. of New York; JPMorgan Chase & Co. of New York; Merrill Lynch & Co. Inc. of New York; Morgan Stanley of New York; and UBS AG of Zurich, Switzerland.

Mega-firms pool $70 billion to hedge volatility

A group of ten global commercial and investment banks announced a $70 billion loan program that financial services companies can tap into in order to "enhance liquidity and mitigate the unprecedented volatility and other challenges affecting global equity and debt markets."

The banks included in the facility are: Charlotte, N.C.-based Bank of America Corp.; Barclays PLC of London; Citigroup Inc. of New York; Credit Suisse Group of Zurich, Switzerland; Deutsche Bank AG of Frankfurt, Germany; Goldman Sachs Group Inc. of New York; JPMorgan Chase & Co. of New York; Merrill Lynch & Co. Inc. of New York; Morgan Stanley of New York; and UBS AG of Zurich, Switzerland.

Altruistic advisers honored at gala

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Bill passes to end regulatory ‘Whac-A-Mole’

The Securities and Exchange Commission would have explicit power to bar people associated with investment advisory firms for violating securities law under legislation unanimously approved yesterday by the House of Representatives.

The Securities Act of 2008, authored by House Capital Markets Subcommittee chairman Paul Kanjorski, D-Pa., also would give the SEC the power to impose civil penalties in cease-and-desist proceedings.

Lehman reveals $3.9B loss, sells assets

Prompted by a precipitous plunge in its share value, Lehman Brothers Holdings Inc. this morning released its preliminary third-quarter results a week early and announced plans sell a majority stake in its investment management division and spin off most of its commercial real estate assets.

The beleaguered investment bank expects to post a net loss of $3.9 billion, or $5.92 per share, during the third quarter ended Aug. 31., attributed to “weak sales and write-downs of commercial real estate assets and a slower real estate environment,” according to Lehman chairman and chief executive Richard Fuld.

Consumers more hopeful about prices

September’s reading on consumer sentiment improved this month, compared with August, as Americans’ outlook on inflation brightened, according to the preliminary Reuters/University of Michigan consumer sentiment index.

The index came in at 73.1, up more than 10 points from 63 in August.

Consumers’ improving outlook coincides with declining producer prices — -0.9% — and tumbling energy prices — -4.6% — last month.

Allianz finance chief to step down

Allianz SE’s finance chief Helmut Perlet said today that he will retire from the Munich-based insurance giant.

He will step down from his post on Aug. 31, 2009.

In his place, Oliver Baete, a member of the management board and chief operating officer of Allianz, will take the helm as of Sept. 1, 2009.

The company also announced the resignation of Herbert Walter from Allianz’s management board.

As Dresdner Bank AG, a subsidiary of Allianz, prepares for its sale to Commerzbank AG, Mr. Walter, Dresdner’s chief executive, will migrate to Commerzbank’s management board.

New WaMu chief brings Baier onboard

Newly minted Washington Mutual Inc. chief executive Alan H. Fishman has hired Frank Baier to help him navigate the bank through the credit crisis, according to a report in The Wall Street Journal.

Mr. Baier, who was previously the chief financial officer and chief administrative officer of the Securities Industry and Financial Markets Association in New York, will serve as special assistant to the chief executive and not as chief financial officer, a spokeswoman for the Seattle-based bank told the Journal.

Fidelity reshuffles portfolio managers

Fidelity Investments of Boston this week named Lawrence Rakers as portfolio manager of the $9.5 billion Fidelity Dividend Growth Fund (FDGFX) and $2.9 billion Fidelity Advisor Dividend Growth Fund (FDGIX), replacing Charles Mangum.

Mr. Rakers has managed the $25.3 billion Fidelity Balanced Fund (FBALX) and the $1.2 billion Fidelity Advisor Balanced Funds (FAIGX) since 2005.

He will continue to manage the VIP Balanced Portfolio, which has also been his responsibility since 2005.

Tucker Carlson: Candidates weak on economy

Neither Sen. Barack Obama, D-Ill, nor Sen. John McCain, R-Ariz., possesses a solid sense of the economy, but whoever wins the presidential election will take vastly different approaches to try to cure its ills, political commentator Tucker Carlson told attendees of the National Association of Personal Financial Advisers conference today.

Mr. Carlson, who currently contributes to MSNBC’s political coverage and who is best known for his role as co-host of CNN’s “Crossfire” from 2002 to 2005, was the keynote speaker for Arlington Heights, Ill.-based NAPFA’s West Conference in Denver in a session called “Politics & Economy: Election 2008.”

Fixed-annuity sales fuel overall growth

Overall individual-annuity sales grew 4% during the second quarter, buoyed by a spike in fixed-annuity sales, according to Limra International Inc.

U.S. individual-annuity sales grew to $68.4 billion during the second quarter, up from $65.7 billion, according to the Windsor, Conn.-based research organization.

Much of that growth came from a 46% jump in fixed-annuity sales, including immediate annuities, structured settlements and deferred annuities.

LSE trading halted over computer SNAFU

A computer system failure forced the London Stock Exchange to suspend trading for most of today.

The exchange halted operations just before 9 a.m. British Standard Time — it usually opens at 8 a.m. — and did not resume until 4 p.m., with just 30 minutes left of trading remaining.

The LSE gave no reason for the cause of the technical issues.

The technical glitch came on what was an expected high-volume trading day due to the U.S. government’s takeover of mortgage giants Fannie Mae of Washington and Freddie Mac of McLean, Va.

Ex-KBR/Halliburton exec admits bribery

Former KBR Inc. executive Albert Jackson Stanley pleaded guilty in U.S. District Court in Houston yesterday to conspiring to violate the Foreign Corrupt Practices Act and conspiring to commit mail and wire fraud, the Securities and Exchange Commission announced.

Mr. Stanley is also a former executive of Halliburton Co., which acquired the Houston-based engineering and construction company KBR in 1998, according to news reports. He faces seven years’ imprisonment and restitution of up to $10.8 million, the SEC said in a statement.

Hedge funds continue ’08 descent

A defensive stance by hedge funds in August has contributed to a sour 2008 for the alternative asset class, according to the latest data from Hennessee Group LLC.

The New York-based hedge fund advisory firm reported today that the Hennessee Hedge Fund Index declined 0.7% in August and is down 4.1% since the start of the year.

This compares to a 1.2% gain in August by the Standard & Poor’s 500 Index, which is down 12.6% from the start of the year.

Fidelity plumps up PracticePerks

Fidelity Investments of Boston has expanded its practice management program, PracticePerks, by adding 75 products and service providers.

The PracticePerks program is an online marketplace that offers registered investment advisers preferred pricing and access to a range of business services.

More than 550 firms have signed up for the program.

The discount pricing the program offers saved clients more than $510,000 on business services, according to Fidelity.

Waddell downgraded to ‘sell’ by analyst

Waddell & Reed Financial Inc. had its shares downgraded and its full-year profit estimate slashed by Sandler O'Neill & Partners LP analyst Michael Kim.

He downgraded Waddell to "sell," from "hold," and trimmed his previous full-year profit estimate by 5 cents to $1.66 per share, due in large part to “diminished net flow assumptions.”

Mr. Kim estimated that market losses have contributed to the Overland Park, Kan.-based asset manager’s loss of about $3 billion of assets since June 30.

Sun Life launches charitable estate planning

Sun Life Financial Inc.’s U.S. division has launched its charitable estate planning campaign to teach advisers and clients about using life insurance for charitable purposes.

The Wellesley, Mass.-based insurer’s program is based on the insurer’s charitable giving benefit rider, which is available with its universal life insurance products.

The rider gives an additional 1% death benefit above the policy’s face amount to a designated charity for no additional cost.

Convergent poaches $7 billion Citi teams

Convergent Wealth Advisors has sent shockwaves through the wealth management industry, lifting out two teams from New York-based Citigroup Inc.'s institutional-clients group with combined assets under management of about $7 billion divided among institutions, and high-net-worth individuals and families.

George Dunn and Peter Dunne joined Rockville, Md.-based Convergent on Friday in its Washington office as managing directors.

Wachovia hires chief investment officer

Wachovia Securities LLC of St. Louis has named Tom McManus as its new chief investment officer.

He will also serve as director of Wachovia's advisory services group, which sets the firm's overall investment policy.

Previously, Mr. McManus was a managing director and the chief investment strategist at Banc of America Securities LLC of New York. He will relocate to St. Louis.

Wachovia has been looking for a chief investment officer since Michael Jones, who held the post until April, left to set up Riverfront Investment Group LLC in Richmond, Va.

Firms vie for slice of Lehman

HSBC Holdings PLC and an unidentified Chinese bank have emerged as potential buyers of troubled Wall Street giant Lehman Brothers Holdings Inc., The Chosun Ilbo, a South Korean newspaper, reported today.

London-based HSBC and the Chinese bank, along with some top U.S. hedge funds, are competing with the Korea Development Bank, which has proposed buying a 25% stake in Lehman Brothers for between $4.4 billion and $5.3 billion, the report stated.

Merrill in for more woe, Goldman analyst says

More write-downs are on the horizon for New York-based Merrill Lynch & Co. Inc., according to a report from a Goldman Sachs analyst.

William Tanona of The Goldman Sachs Group Inc. of New York downgraded the stock to “sell” and widened his third-quarter per-share loss estimate by $1 to $5.75.

Although Merrill Lynch said in July that it would take a $5.7 billion third-quarter write-down, following a $30 billion sale of collateralized debt obligations to Lone Star Funds of Dallas, Mr. Tanona foresees even bigger write-downs in the firm’s future.

Advisers' suit against Ameriprise tossed

Ameriprise Financial Inc. has defeated a group of advisers who sought a class action alleging that, because the company recently changed its name, the power of its brand had been diminished.

On Aug. 26, Judge Joan N. Ericksen of the U.S. District Court for Minnesota dismissed the case, noting that Ameriprise Financial had no obligation to supply advisers with a well-recognized brand.

The suit by advisers seeking class-action status was filed last winter against the Minneapolis-based company, as well as its former parent, American Express Co. of New York.

BofA set to settle with regulators over ARS

Bank of America Corp. said yesterday that it is ready to settle with state and federal regulators over a probe into its marketing of auction rate securities.

The Charlotte, N.C.-based bank has been negotiating with the Securities and Exchange Commission and with regulators in Massachusetts and New York for nearly a month, seeking a deal to provide liquidity relief to clients holding the securities, the bank said in a statement.

Lawyers lose jobs, Wall St. to blame

In the wake of massive layoffs on Wall Street, law firms have been quietly letting go of staffers whose services are no longer needed now that financial deals have dried up, according to Crain's New York Business.

The targeted layoffs that began late last year have turned into a torrent that will likely continue into 2009.

Up to 200 New York-based attorneys from a dozen of the country's top law firms have lost their jobs in the past year.

Safeguarding IRAs in difficult times

Worries about bank failures and the stability of other financial institutions are all over the news lately.

Clients with individual retirement accounts at a bank might be concerned about them.

But retirement accounts are federally insured up to $250,000 per bank.

Congress raised the limit from $100,000 in 2006. (For non-retirement accounts, the Federal Deposit Insurance Corp. or the National Credit Union Administration limit remains at $100,000.)

Pimco names new CEO

Pacific Investment Management Co. LLC announced yesterday that Mohamed A. El-Erian has been elected to serve as chief executive, replacing Bill Thompson, who will retire at the end of this year.

Mr. El-Erian had returned to Pimco in January after serving as president and chief executive of Cambridge, Mass.-based Harvard University's endowment since 2005.

In January, he returned to Pimco in a newly created position as managing director, co-chief executive and co-chief investment officer.

Morgan Stanley forms $10B real estate fund

Undaunted by concerns about a weakening real estate market, Morgan Stanley is raising $10 billion for a global property fund, with at least $1.5 billion of that being funneled into China, according to a Reuters report that quoted unidentified sources.

A spokeswoman for New York-based Morgan Stanley declined to comment specifically on the fund, but she did say that the firm is busy with fundraising activities.

The Morgan Stanley Real Estate Fund VII Global will invest at least $1.46 billion in China over the next few years, with most of its focus on larger cities such as Shanghai, where the price for a luxury downtown apartment can exceed $20 million.

Lehman cribbed from research report

Lehman Brothers Holdings Inc. has acknowledged that it plagiarized parts of a recent research report on the semiconductor industry, The Wall Street Journal reported today.

On Aug. 21, New York-based Lehman Brothers sent a letter to clients apologizing for closely copying sections of a 2007 Sanford C. Bernstein & Co. research report written by analyst Toni Sacconaghi without properly sourcing the material, the Journal said.

U.S., Europeans fretful about finances

Confidence among U.S. consumers inched up in August as the prospects for the overall economy improved — but consumers continued to fret about their personal finances.

The Reuters/University of Michigan Index of Consumer Sentiment increased to a reading of 63.0 in August, up from 61.2 in July.

But that number is markedly below the 83.4 reading recorded in August 2007.

The final reading for the month was slightly lower than the preliminary reading of 61.7 (

SandP Ratings gives BlackRock an A+

Standard & Poor's Ratings Services has increased its ratings for BlackRock Inc.'s long-term corporate credit rating and its short term rating, due to the New York-based money manager's “strong operating performance” during the “current challenging period.”

The New York-based ratings agency upgraded BlackRock's long term corporate credit rating to AA- from A+.

The New York-based money manager’s short-term corporate credit rating was upgraded to A-1+ from A-1.

Salaries down, spending up in U.S.

Incomes of U.S. citizens fell in July, while consumer spending was up slightly, reflecting the waning impact of President Bush's economic stimulus package, according to a report from the Department of Commerce.

Personal incomes fell 0.7% in July, marking the sharpest decline since incomes dropped 2.3% in August 2005, after the economy took a hit from Hurricane Katrina.

Consumer spending increased 0.2%, marking the smallest increase since February.

Report: Private equity eyeing Lehman

As many as five private-equity firms have expressed interest in purchasing a stake in Lehman Brothers Inc.’s investment management business, according to the Telegraph, a London-based newspaper.

The Carlyle Group of Washington, and KKR & Co. LP and JC Flowers & Co. LLC, both of New York, are among those believed to be interested in the business, which includes Neuberger Berman LLC of New York and some of Lehman’s private-equity and hedge fund operations.

Cuomo eyes cozy ARS link between firms

New York Attorney General Andrew Cuomo is investigating how a close business relationship between Fidelity Investments and The Goldman Sachs Group Inc. affected auction rate securities transactions, The Wall Street Journal reported today.

The investigation centers around whether Boston-based Fidelity received extra services from New York-based Goldman Sachs for selling ARS, since most of these investments were underwritten by Goldman Sachs, according to the Journal story.

Credit crunch hasn't hit bottom, FDIC says

Banks will continue to feel the pain of the credit crisis, according to the FDIC.

“We haven’t seen the trough of the credit cycle yet,” Sheila C. Bair, chairwoman of the Federal Deposit Insurance Corp., told The New York Times in an interview.

Her negative forecast for the industry followed a Tuesday report from the FDIC revealing plummeting insured-bank and thrift earnings during the second quarter.

Net income for those institutions hit $5 billion, down 86.5% from the comparable period in 2007 — the lowest earnings for the industry in nearly17 years.

Morgan Stanley unveils emerging markets fund

Morgan Stanley Investment Management of New York announced today that the Morgan Stanley Frontier Emerging Markets Fund Inc., a new closed-end fund, has issued seven million shares of common stock at a price of $20 per share resulting in gross proceeds to the fund of $142 million.

The fund’s shares began trading Aug. 25.

Its investment objective is to seek long-term capital appreciation by investing at least 80% of its net assets in equity securities of companies operating in frontier emerging-markets countries.