Bear Stearns, China's Citic Trade $1B Stakes

Meanwhile, Google holds talks with Skype for joint venture

(NEWSER) - Skype is suddenly the prettiest girl in school now that it’s pushed back its IPO. Google is in talks for a joint venture with the online calling company, and Facebook is considering buying it outright, sources tell Reuters . Skype is expected to rake in about $1 billion if it goes public, but Facebook could pay $3 billion to $4 billion for the company, according to someone with “direct knowledge of the discussions.” More»

Bear Stearns execs accused of lying as funds imploded

(NEWSER) - The first major criminal trial against top Wall Street execs involved in the financial crisis kicked off in New York yesterday. Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin are accused of misleading investors in a desperate attempt to stop them from abandoning the funds, even as they themselves yanked their money out and admitted the subprime market is "toast" in personal emails. The collapse of the fund cost investors $1.6 billion. More»

(NEWSER) - The news that an obscure Chinese heavy equipment manufacturer is probably making government officials pull their hair out in frustration, writes Andrew Peaple of the Wall Street Journal. “Beijing is keen for Chinese companies to expand overseas,” he allows. “But they’re also hoping for some common sense.” Instead we have Sichuan Tengzhong, a small company that lacks English-speaking execs, taking over an American icon. More»

End of communism let Wall Street become unhinged: Friedman

(NEWSER) - Wall Street used to be the epicenter of capitalism that the whole world wanted to emulate, but, on a trip to Hong Kong, Thomas Friedman discovers that the American financial establishment has lost its credibility. "We don’t just need a financial bailout," he writes in the New York Times, "we need an ethical bailout." More»

Shells out $7B while slashing jobs, taking bailout funds

(NEWSER) - Bank of America will inject $7 billion into China Construction Bank Corp, Bloomberg reports, nearly doubling its stake in the bank even as it slashes jobs and accepts government bailout money. CCB is down 45% over the past six months, and BoA CEO Ken Lewis is getting a 32% premium on that devalued market price. The acquisition comes on the heels of the purchase of Merrill Lynch, which will result in thousands of job cuts. More»