You may remember that AIG — which is afloat only thanks to a bailout by you, the taxpayer, to the tune of $152 billion and counting–made a whole lot of public relations when its top seven executives agreed not to take bonuses this year.
Well, on the eve of Thanksgiving, obviously knowing the markets would be [...]
The name bonus has been rescinded. It will not be used by any Major Corporation again. In it’s place they have instituted something called “Retention” and “Retention compensation”. Here are two articles on it: Read and learn.
Citigroup Chairman Says New Bonus Systems Aren’t ‘Magic Bullet’
By Elena Logutenkova Nov. 28 (Bloomberg) –
Citigroup Inc. Chairman Win Bischoff [...]
MS has sold 3B of CDs. So this is the new business model. Instead of borrowing from the commercial paper market, these newly minted “banks” are gonna use proceeds from CDs and make leveraged bets. Actually a quite interesting model. The CD are stable funding sources that can bring them more staying power. But I [...]
NEW YORK (AP) — How could a $24 billion loss possibly be good news? When it comes from Wachovia as an effort to primp itself for its acquisition by Wells Fargo.
Wachovia Corp.’s staggering loss for the third quarter resulted primarily because it wrote down the value of intangible assets by almost $19 billion and built [...]
NEW YORK (MarketWatch) — Wachovia Corp. said on Wednesday it lost a stunning
$23.9 billion in the third quarter as it took a massive impairment charge for it
acquisition by Wells Fargo, and added more than $6 billion to its credit loss
provisions.
The company (WB) reported a total third-quarter loss of $23.9 billion, or $11.09
a share. In the [...]
NEW YORK (Dow Jones)–Merrill Lynch & Co. (MER) dodged analyst questions
regarding Lehman Brothers Holdings Inc.’s (LEHMQ) bankruptcy exposure.
On Thursday’s third-quarter earnings conference call, the firm stated it does not
discuss specific numbers in terms of counterparty exposure.
Lehman Brothers, which filed for bankruptcy last month, has affected many Wall
Street banks that had significant counterparty exposure to Lehman.
The [...]
SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Friday placed Lehman
Brothers Holdings’ A1 rating on review for a possible downgrade. The move follows
Lehman’s announcement that Chief Financial Officer Erin Callan is leaving. The
ratings agency noted that although the purpose of the management change appears
to be an effort to assure accountability for its losses and to [...]
Citigroup to raise $3 billion selling new stock
By Alistair Barr, MarketWatch
Last Update: 7:58 PM ET Apr 29, 2008
SAN FRANCISCO (MarketWatch) — Citigroup Inc. said late Tuesday that it is
raising $3 billion selling new shares as the financial-services giant tries to
rebuild capital after huge losses from the credit crunch.
Citi (C) said that the offering of new [...]
Ambac Financial Group (ABK) is on track to meet Moody’s Investors Service’s AAA
target capital ratio by the end of the second quarter, the company’s chief
executive said Wednesday.
Bond insurer Ambac relies on a strong credit rating in order to win business. The
current credit crisis has put pressure on several bond insurers’ ratings,
including Ambac, which retains the [...]
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