Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

NEWS ABOUT: investment banks

10 Banks Form $70B Fund to Stave Off Crash

Paulson brokers twin public-private liquidity measures

(Newser) - Ten of the world's largest banks have formed a massive liquidity fund to mitigate the effects of the Lehman Brothers meltdown, reports the Financial Times. All the investment banks will be able to borrow up to a third of the $70 billion fund in order to reduce volatility and stay... More »

Tough Times Ground Hedge Fund High-Fliers

Specialized investment industry dragged back to earth by shaky market

(Newser) - The recent market turmoil has taken a good deal of the shine off of hedge funds, as managers are unable to reproduce their heretofore exemplary results in poor market conditions, the New York Times reports. The average hedge fund lost 4% this year, the worst overall results in the industry’... More »

Lehman to Sell Off Assets; Faces Record $3.9B Loss

Company to dump commerical real estate holdings, slash dividens

(Newser) - Facing a record third-quarter loss of $3.9 billion, beleaguered investment bank Lehman Brothers is planning a fire sale of assets to help shore up its sagging capital base, reports the Wall Street Journal. The company said it would spin off its commercial real estate holdings, and auction of a... More »

South Korean Banks Offer $5.3B for Stake in Lehman

Newspaper says Korea Development Bank plans a consortium to pay for the deal

(Newser) - Korea Development Bank—which in August backed out of negotiations to acquire struggling Lehman Brothers—is back with bid for a 25% stake in the capital-starved bank for as much as $5.3 billion, reports the AP. The state-owned lender says it will form a consortium of South Korean banks... More »

Korean Bank Warned Off Lehman Bros. Buy

Firm may be too big a risk: official

(Newser) - The Korea Development Bank was warned today of rushing into a bid for Lehman Brothers by South Korea’s top banking official, the Financial Times reports. A Lehman investment may constitute too much risk for a state-owned bank, Jun Kwang-woo warned after last week’s news that, though KDB’s... More »

Secret Lehman Sale Talks Fail

South Korean, Chinese investors balk at hefty $5B price for half of troubled bank

(Newser) - Secret talks earlier this month to sell up to half of struggling US investment bank Lehman Brothers to South Korean or Chinese buyers fell apart after last-minutes squabbles over details, the Financial Times reports. The bank, which is expected to announce up to $4 billion in writedowns next month, was... More »

Lehman Shops Key Unit in Quest for Cash

The troubled Wall Street firm is taking offers for its strong fund management wing

(Newser) - Lehman Brothers is shopping a piece of its investment management unit, the Wall Street Journal reports, joining other large banks in shedding strong-performing businesses to offset mortgage meltdown losses. Lehman’s management business, which includes Neuberger Berman and hosts 27 mutual funds managing $22 billion in individual and institutional wealth,... More »

Banker Predicted Georgian Invasion 2 Days Early

(Newser) - An investment banker in Kiev predicted the Georgian conflict two days before it occurred, Reuters reports. "So whaddaya think?,” Geoff Smith wrote on Aug. 5 to a fellow strategist at Renaissance Capital. “I say Saakashvili is going to 'restore the territorial integrity of Georgia' five minutes before... More »

Morgan Stanley, JPMorgan on Auction-Rate Probe Hot Seat

List of banks buying back bonds gets longer

(Newser) - As New York AG Andrew Cuomo's office continues applying heat, banks are scrambling to react to the auction-rate securities crisis, the Wall Street Journal reports. Morgan Stanley said yesterday it will buy back about $4.5 billion of the illiquid securities—but a Cuomo spokesman called the move “too... More »

UBS Agrees to $19.4B Auction-Rate Bond Buy-Back

(Newser) - UBS, pressured by state and federal authorities, has agreed to buy back $19.4 billion in risky auction-rate securities that were widely sold as cash-like and safe, the Boston Globe reports. The market for the securities, which are a type of bond sold by non-profits, art institutions and local governments,... More »

Paramount Loses $450M Funding Deal

The failure is part of a larger trend as liquidity dries up

(Newser) - A $450-million deal with Deutsche Bank that would have financed up to 30 films for Paramount is off the table, the Financial Times  reports. Perhaps an unlikely casualty of the credit crunch, Paramount walked after a lack of enthusiasm in the market led to terms that were unattractive, persons familiar... More »

Baffled Execs Say Rumor Killed Stearns

They claim hedge funds, Goldman Sachs invented bad news for profit

(Newser) - Bear Stearns' collapse and shotgun marriage to JP Morgan were sparked by little more than a rumor, Vanity Fair reports. True, the investment bank had stumbled—a $1.6 billion bailout of troubled funds hurt its image—but whispers of liquidity problems were false: Bear had $18 billion in cash... More »

Battered Citigroup Plans Major Layoffs

Firm will cut 10% of its investment-banking group

(Newser) - After being in the red for two quarters, Citigroup will this week hand out pink slips in its investment-banking division, looking to sack 10% of the group’s 65,000 employees. The move, which would eliminate entire trading desks worldwide, is unusually severe, the Wall Street Journal says. CEO Vikram... More »

Morgan Stanley Profits Fall 57%

Business bad all around, with declines in sales, trading, and investment banking

(Newser) - Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to... More »

Shareholders Rubber-Stamp Bear Selloff

84% OK JPMorgan buyout; chairman 'sad' over firm's demise

(Newser) - The buyout of Bear Stearns neared finality today with 84% of shareholders voting in favor of acquisition by JPMorgan Chase, the Wall Street Journal reports. Chairman James Cayne shared his feelings publicly with shareholders about the bank’s demise for the first time: "I personally apologize,” he stated,... More »

'Monster' Markets Brought World to Edge: German Prez

Köhler, former head of IMF, rips lust for profit, calls for tightened regulaion

(Newser) - Germany's president, a former head of the International Monetary Fund, blasted the system of financial markets responsible for the global credit crisis as a “monster," Der Speigel reports today. Horst Köhler said the world “came close to a collapse of the global financial markets" as the... More »

Banks Face New Loan Crisis: Rebuilding Reserves

'Provisions' may turn out not to be large enough

(Newser) - Within Bank of America’s disappointing first-quarter earnings was an unwelcome harbinger for the banking industry, the Wall Street Journal reports. BofA’s results were dragged down by huge additions to its loan-loss provision, an expense many other banks will also record soon. Given current credit conditions, many banks will... More »

Lehman Is Selling $3B in Shares

Firm seeks to calm fears of another Bear Stearns disaster

(Newser) - Lehman Brothers is selling $3 billion in new shares to allay fears after its stock dropped 42% this year, Bloomberg reports. "We still maintain that we don't need capital, but we've realized that perception is the dominant issue in today's markets,'' said CFO Erin Callan. Lehman fell up... More »

Paulson Unveils Regulatory Reforms: No Quick Fix

Focus of plan including new oversight for Fed extends beyond current woes

(Newser) - The "transformative" changes Henry Paulson has in mind for the regulation of the US economy will take years to implement, the Treasury Secretary said today. The plan would greatly increase the Fed's oversight powers, regulate the insurance industry for the first time, and add federal oversight of the mortgage... More »

Lehman Sues to Reclaim $350M Lost in Swindle

Says 2 workers at Japanese trading firm ran a Ponzi scheme

(Newser) - Lehman Brothers is suing Japanese trading company Marubeni, seeking to recover $350 million lost in a scam apparently engineered by two of the company’s employees. The scheme involved forged documents purportedly bearing a board member’s seal and two meetings at Marubeni headquarters, including one with an impostor posing... More »

Stories 41 - 60 | << Prev   Next >>
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne