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BNY Mellon Cash Fund Hit by Losses From Lehman Debt (Update1…
Sept. 18 (Bloomberg) - An institutional fund run by Bank of New York Mellon Corp. and designed to work like a money-market account fell to less than $1 a share after losses on debt issued by bankrupt Lehman Brothers Holdings Inc. The $22 billion BNY Institutional Cash Reserves fell to $0.991 a share… Read more
Crude futures drop 17% for the week
SAN FRANCISCO (MarketWatch) - Crude futures suffered their third-largest daily loss in dollar terms Friday on the New York Mercantile Exchange, dropping to their lowest closing level since mid-September 2007. November crude closed at $77.70 per barrel, down $8.89, or 10.3%, for the session and down… Read more
Amid GOP revolt, bailout deal breaks down
After six days of bare-knuckled negotiations on the $700 billion financial industry bailout proposed by the Bush administration, with Wall Street tottering and presidential politics intruding six weeks before the election, there was far more confusion than clarity. An apparent breakthrough was announced… Read more
Why did the Fed provide $180B to overseas banks?
The Federal Reserve on Thursday nearly quadrupled the dollars it provides to foreign central banks as part of a coordinated effort to inject liquidity into the global financial system. What follows are questions and answers about what the Fed did and why. Q. How much money is involved? A. The Fed increased… Read more
Wall Street's Wild Weekend
Deal talk ricocheted across Wall Street on Sunday at the same time it appeared that efforts to save Lehman from liquidation had failed. Merrill Lynch (nyse: MER - news - people ), one of those that considered being part of a consortium to rescue Lehman, was reportedly set to announce a deal to be bought… Read more
The Connection Between Financial Markets and Energy - Open Thread…
Today, the financial markets are struggling with Lehman Brothers' Chapter 11 bankruptcy, AIG's problems, and the sale of Merrill Lynch to Bank of America. There is also the problem of the unwind of the credit-default swaps tied to hundreds of billions of dollars of Fannie and Freddie debt. This thread… Read more
Oil drops to six-month low in Ike aftermath
NEW YORK (Reuters) - U.S. oil prices dropped more than $2 to a six-month low below $99 a barrel on Sunday as dealers bet on a swift recovery of the nation's energy production after Hurricane Ike and the U.S. government loaned oil to two refiners. The losses add to a steady downtrend in oil prices since… Read more
Last major investment banks change status
WASHINGTON (AP) - The Federal Reserve said Sunday it had granted a request by the country's last two major investment banks - Goldman Sachs and Morgan Stanley - to change their status to bank holding companies. The Fed announced that it had approved the request of the two investment banks. The change… Read more
More volatility ahead after wild week on Toronto's stock market…
TORONTO - Investors are in for more volatility this week after swings of hundreds of points on Toronto's main index amid uncertainty in the U.S. financial markets and shifts in oil prices. The TSX/S&P composite index ended last week at 12,769.58, up 134.75 points on the week. But as the week came… Read more
Bailout the Oil Market
While everyone knows the U.S. government is looking to bail Wall Street banks, few people realize that it's also bailing out speculative oil and commodities traders in the process, fueling a sharp rise in energy prices. Lehman Brothers (nyse: LEH - news - people ) and AIG (nyse: AIG - news - people )… Read more
GM May Hit $200 Before Oil Does
I posted on July 17th that a historic reversal was at hand in Oil has Peaked, Banks have Bottomed , and that has proved prescient advice. Shorting commodities and resource stocks has been a great trade in the last few weeks, and one I have consistently recommended since late April, despite the continued… Read more
Emergency meeting on Lehman Brothers rescue resumes
WASHINGTON - With the global financial system holding its collective breath, the U.S. government scrambled to help devise a rescue for Lehman Brothers and restore confidence in Wall Street and the financial structure. Deliberations resumed Saturday as leading Wall Street executives and top U.S. financial… Read more
Implications of a Ten Day Refinery Outage
Where is our gasoline and diesel supply headed? Even before Ike hit, quite a few areas of the US were starting to see gasoline shortages. The impact of Ike can only make shortages worse. Most likely, it will take refineries at least a week or two to get production back to normal levels after a storm… Read more
Is the U.S. Going Broke? - a comment
Now that the federal government has bailed out Fannie and Freddie, who's going to bail out the federal government? The federal government's takeover of Fannie Mae and Freddie Mac (nyse: FRE - news - people ) represents a huge financial tremor. These two institutions now issue 70% of Americans' mortgages… Read more
Foreign Investors and a Dollar Plunge
Could the dollar get hammered if the $700 billion bailout goes through? For years the connection between the dollar and the size of the U.S. government debt has inspired one of the scariest scenarios in international finance. The U.S. depends on foreign investors to finance its budget shortfalls: 47… Read more
Why bailout action is important
New York Times News Service In 1929, Meyer Mishkin owned a shop in New York that sold silk shirts to workingmen. When the stock market crashed that October, he turned to his son, then a student at City College, and offered a version of this sentiment: It serves those rich scoundrels right. A year later… Read more
Who's Buying The Banks?
Despite the recent market rout, banks continue to sell new shares. But the question is how long they'll be able to find willing buyers. Prognosticators called the market bottom wrong several times in the last few months. Foreign sovereign funds looked smart sinking billions in to capital-starved U.S… Read more
Asian Markets Hammered; Nikkei Loses 9.4%
SINGAPORE -- A crisis of confidence weighed on Asian shares Wednesday with several indexes slumping to multiyear lows as investors worry about the impact on corporate earnings from the financial-sector upheaval and a slowing global economy. "Everyone is looking for a silver bullet, but we just… Read more
Sooner is better for Bank of America capital raise - Interesting…
Bank of America Corp. ’s decision to cut its dividend by 50 percent and raise up to $10 billion in capital was “prudent,” and the company may be better off in raising the new capital now rather than later, according to Wall Street analysts. Late Monday the bank announced it would cut its dividend to… Read more
Woe on Lehman Brother
ZT：Lehman's 2007 Bonus Pool Rises Almost 10% on Higher Revenue By Christine Harper Dec. 13 (Bloomberg) -- Lehman Brothers Holdings Inc.'s 2007 bonus payout, the first reported by a Wall Street firm, rose almost 10 percent from last year as revenue gains through August overcame a fourth-quarter decline… Read more
First blog
My new blog has been launched today. Stay focused on it and we will try to keep you informed. You can read new posts on this blog via the RSS feed .… Read more
Some Nice Chinese Music
突然的自我： 伍佰 离歌：信乐团 死了都要爱： 信乐团… Read more
For those legendary names only in textbooks
So sad about Lehman Brothers. Such as giant with 160 years of histroy went to history on Monday. It is a historical date in modern finance. Another big name, Merrill Lynch was also bought out by Bank of America with only 50B. Who is the next? As the biggest trustee of LEH, CITI is also risky. Maybe… Read more
JPMorgan Quarterly Profit Drops After WaMu Takeover
Oct. 15 (Bloomberg) -- JPMorgan Chase & Co. , the largest U.S. bank by market value, eked out a third-quarter profit as the takeover of Washington Mutual Inc. cushioned about $5.8 billion of writedowns, losses and credit provisions. Net income dropped 84 percent to $527 million, or 11 cents a share… Read more
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