1. A number of banks that received TARP funds did so only because the Treasury and Fed insisted that they accept these funds. Is it reasonable to suggest that these banks, that did not want to participate in TARP, undertook some special obligation to make loans when they accepted TARP funds?
2. The Treasury, in exchange [...]
AIG, U.S. Department of Treasury Complete $40 Billion Preferred Stock Sale Under
TARP
Sale is Part of AIG’s Comprehensive Solution Announced on November 10th
NEW YORK, Nov 25, 2008 (BUSINESS WIRE) — American International Group, Inc.
(AIG) said today that the U.S. Department of the Treasury has purchased four
million shares of AIG Series D Preferred Stock and a warrant [...]
(On the bright side, if the government hadn’t pumped in the money, it would now be worth zero). The company’s tangible book to equity ratio is now more than 50-to-1, and the firm’s gigantic mountain of consumer debt “assets” will almost certainly face enough writedowns in the next several quarters to wipe out the equity [...]
FAIRFIELD, Conn. (AP) — Warren Buffett’s Berkshire Hathaway is buying $3 billion worth of General Electric preferred shares, even as the diversified conglomerate is preparing to sell at least $12 billion worth of common stock to the public.
GE says Berkshire Hathaway Inc. will buy $3 billion of perpetual preferred stock in a private offering. Such [...]
SAN FRANCISCO (MarketWatch) — In the largest bank failure in U.S. history, Washington Mutual Inc. succumbed Thursday to the fallout from the subprime mortgage crisis, was seized by federal regulators and rapidly acquired by J.P. Morgan Chase .
The deal will cost JPMorgan Chase $1.9 billion, and the bank said in a statement it planned to [...]
“As house prices, earnings and capital have continued to deteriorate, Fannie and Freddie’s ability to fulfill their mission has deteriorated,” said James Lockhart, the head of Federal Housing Finance Agency which will now oversee Freddie and Fannie.
The two companies will be run by the government indefinitely, with the two current chief executives to be replaced [...]
The Market Ticker
“As anyone who has been reading The Ticker knows, I have been saying for quite some time that Fannie and Freddie are in fact “short to zero” candidates for the common stock. This is simply due to the mathematics of their financial situation - they are levered up anywhere from 60 to more [...]
First of all, this is not a bailout of FNM and FRE. It’s a bailout of the credit ratings of GSE and U.S. government debt. The feds cannot afford to allow foreigners to lose confidence in bonds guaranteed by the govt, either implicitly or explicitly. That’s because the government can’t keep operating without the foreign [...]
The most distinguishing trait of Buffett’s investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper. The idea of buying stocks without understanding the company’s operating functions-its products and services, labor relations, raw material expenses, plant and equipment, capital reinvestment requirements, inventories, receivables, and needs for [...]
State Street 2Q Net Up 50%, 2008 Revenue View Boosted
Last Update: 7/15/2008 7:56:57 AM
Analysts surveyed: 15
Thomson Reuters EPS estimates can reflect either net income, operating income or
funds from operations.
The company’s earnings figure is on a diluted basis. Thomson Reuters assumes
earnings estimates from analysts are on a diluted basis.
Click here to go to Dow Jones NewsPlus, [...]
Lehman Shares Fall Below $28 Price In Capital-Raising >LEH
Last Update: 6/10/2008 11:50:06 AM
DOW JONES NEWSWIRES
Shares of Lehman Brothers Holdings Inc. (LEH) continued their fall, dropping over
6% Tuesday as their month-long swoon resulted in the brokerage shedding 40% of
its market value.
Monday’s projection of a $2.8 billion quarterly loss deepened anxieties that
banks and [...]
SEC: Bank Of America Registration For Countrywide ‘Effective’
Last Update: 5/29/2008 7:11:03 AM
DOW JONES NEWSWIRES
The Securities and Exchange Commission said Thursday it declared effective a
registration of 132.8 million shares of Bank Of America Corp. (BAC) to be issued
under the company’s proposed merger with Countrywide Financial Corp. (CFC).
Earlier this year, Bank of America agreed to purchase troubled [...]
Calendar Of Equity Issues Expected To Price This Week
Last Update: 5/12/2008 12:53:23 PM
Initial Offerings:
American Capital Agency Corp. (AGNC) - 12.5 million shares expected Monday via
Citi and Merrill Lynch. Price talk: $20.
Verso Paper [...]
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 [...]
MBIA CEO Buys 62,714 MBIA Shrs For About $530,000 >MBI
Last Update: 4/24/2008 1:36:53 PM
DOW JONES NEWSWIRES
MBIA Inc.’s (MBI) chairman and chief executive Joseph Brown Thursday bought
company shares worth $529,933, according to a regulatory filing.
Brown, who returned to the company in February to lead the beleaguered Armonk,
N.Y., bond insurer, said he bought 62,714 shares for $8.45 [...]
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