-
Bloomberg
|
Dec 19, 07 12:00 PM CST
(Newser) -
The manager of hedge funds that lost $1.6 billion when they went bankrupt in July has left Bear Stearns, and federal investigators are looking into whether he withdrew his own money before the collapse. Ralph Cioffi moved $2 million in March—before the funds tanked in the subprime collapse—to another Bear offering, Bloomberg reports; the feds are investigating.
More »
-
-
Wall Street Journal
|
Dec 19, 07 8:10 AM CST
(Newser) -
Morgan Stanley, the nation's second-largest investment bank, lost $3.59 billion this quarter, its first loss ever, after taking a whopping $9.4 billion in writedowns on mortgage-backed securities. CEO John Mack, who promised to give up his 2007 bonus as penance for the losses, also announced a $5-billion cash infusion from China Investment Corp., the investment arm of the Chinese government, for a stake of 9.9% of the company.
More »
-
Wall Street Journal
|
Dec 19, 07 7:41 AM CST
(Newser) -
Bear Stearns’ CEO and other top executives, poised to announce the company’s first quarterly loss in its 84-year history tomorrow, are expected to bypass millions of dollars in annual bonuses, an acknowledgment of the dismal year the firm had, driven down by the collapse of the subprime mortgage market and two internal hedge funds, the Wall Street Journal reports.
More »
-
Wall Street Journal
|
Dec 18, 07 7:43 PM CST
(Newser) -
Seeking to avoid another subprime meltown, the Federal Reserve cracked down on mortgage lending today by a unanimous 5-0 vote, the Wall Street Journal reports. If approved next year, the Fed proposals will require creditors to consider borrowers' financial and credit status, but will not prohibit prepayment penalties altogether, a move sought by some consumer groups.
More »
-
-
Guardian (UK)
|
Dec 18, 07 2:05 PM CST
(Newser) -
Worried that the state might be stuck nationalizing Northern Rock, Britain has worked up a contingency plan behind closed doors to divide the troubled bank among the country’s commercial banks. A private buyout is still preferable, the Guardian reports, but some now fear the main bidders will back out, leaving the government holding the bag.
More »
-
Bloomberg
|
Dec 18, 07 11:40 AM CST
(Newser) -
The slowing economy and financing costs that have more than doubled since June because of the subprime collapse could ice the pace of mergers and acquisitions in 2008, Bloomberg reports. After a record $3.9 trillion in deals in 2007, analysts predict transaction value could plummet 20%. "The mega-LBO is dead,'' says an ABN Amro takeover expert.
More »
-
Bloomberg
|
Dec 18, 07 10:30 AM CST
(Newser) -
Housing starts fell less than expected in November, but fall they did, extending the worst housing slump since 1991. Starts fell 3.7% and, according to one analyst, probably won’t turn around until the third quarter of next year. Permits issued, which give a picture of future construction, fell to a 14-year low, Bloomberg reports.
More »
-
Associated Press
|
Dec 18, 07 8:49 AM CST
(Newser) -
Stricter rules will face mortgage lenders if a Federal Reserve proposal unveiled today moves forward. The Fed wants to prohibit or limit prepayment penalties, force lenders to make sure borrowers set aside money for taxes and insurance, require lenders to verify income, and prohibit lenders from giving borrowers unaffordable loans, the AP reports.
More »
-
Associated Press
|
Dec 14, 07 4:44 PM CST
(Newser) -
In an attempt to quell the ongoing housing crisis, the Senate approved a bill today that would allow the Federal Housing Administration to back refinanced loans for the thousands in danger of defaulting on mortgages. The bill, which passed 93-1, also repositions the FHA as an attractive alternative to subprime lenders by lowering minimum down payments and offering homeowner counseling.
More »
-
NPR
|
Dec 14, 07 9:03 AM CST
(Newser) -
Alan Greenspan warned yesterday that sluggish economic growth is increasing the risk of recession. "It's too soon to say, but the odds are clearly rising," the former Fed chief told NPR. The subprime crisis and its resulting credit turmoil has growth "getting close to stall speed," he said.
More »
-
Financial Times (UK)
|
Dec 13, 07 7:54 AM CST
(Newser) -
The CEO of collapsing British bank Northern Rock quit this morning without comment, reports the Financial Times . Adam Applegarth resigned last month but had pledged to stay on as CEO until the end of January to guide the struggling company through its upcoming sale. But investors are troubled by the slow speed of the transaction, with Applegarth taking the blame.
More »
-
Daily Telegraph (UK)
|
Dec 12, 07 6:11 PM CST
(Newser) -
Morgan Stanley is warning that the US is headed to a recession, the Telegraph writes, indicating today that factors such as the continued housing slump and high cost of borrowing will lead to decreased demand and a “perfect storm” for consumers. A partial freeze on subprime mortgages and expected cuts in interest rates will only soften the blow.
More »
-
Bloomberg
|
Dec 12, 07 11:54 AM CST
(Newser) -
Major restructuring and sales of businesses appear to be on the table for embattled Citigroup, Bloomberg reports, with new CEO Vikram Pandit today promising a "front-to-back review" of operations at the financial giant battered by the subprime crisis. Citigroup stock has fallen 40% this year; one analyst called it "the worst-capitalized bank of its peers by a long shot."
More »
-
Financial Times (UK)
|
Dec 12, 07 11:14 AM CST
(Newser) -
Predicting even tougher times for the US housing market, Freddie Mac chief Richard Syron yesterday told investors in New York that the government-sponsored mortgage lender would report another net loss in the fourth quarter and credit losses to $12 billion on its mortgage portfolio, reports the Financial Times. Freddie Mac reported a record $2 billion loss in the third quarter.
More »
-
CNN
|
Dec 11, 07 12:54 PM CST
(Newser) -
About half of Americans say borrowers snared in the subprime mortgage mess brought the trouble onto themselves, but they nevertheless deserve "special treatment," CNNMoney reports. In a poll of 1,002 adults, 51% also said they felt sorry for borrowers, with 46% blaming financial institutions' lending policies for the situation.
More »
-
Wall Street Journal
|
Dec 11, 07 11:38 AM CST
(Newser) -
Tech-spending growth, on a roll since recovering from the 2000 dot-com bust beginning in 2004, is likely to slow next year, dragged down by US economic woes and rising oil prices, reports the Wall Street Journal. Research firms say companies are likely to keep spending, but more slowly. As one CIO said, “It’s not doom and gloom.”
More »