- BlackRock to Buy Barclays Global Fund Unit for $13.5 Billion
- Barclays To Be Well-Capitalized After BGI Sale – CEO
- TARP Repayments to Start Next Week
- World Bank Predicts Deeper Economic Contraction
- Calls Resume for Single Banking Regulator
- US lawmaker: BofA’s Lewis inconsistent
- Bernanke Success May Come at Cost of Congress Curbing Fed Power
- A.I.G. Balks at Claims From Jet Ditching in Hudson
- Principal Declines U.S. Bailout After Raising Capital
- Chrysler’s next fear: High gas prices
- Chrysler’s Sale to Fiat Appealed by Dealers to Protect Claims
- AMR to Cut 1,600 Jobs, Delta May Follow as Fares Drop
- Yahoo hires CFO from Altera
BlackRock to Buy Barclays Global Fund Unit for $13.5 Billion – Bloomberg
BlackRock Inc., started 21 years ago in a one-room office by former mortgage-bond trader Laurence Fink, agreed to buy Barclays Plc’s investment unit for $13.5 billion to become the world’s largest money manager.
BlackRock will pay $6.6 billion in cash and the rest in stock for Barclays Global Investors, the New York-based company said today in a statement. Financing for the transaction will include $2.8 billion from the sale of equity to institutional investors and $2 billion in loans from Barclays and other banks…..
Barclays To Be Well-Capitalized After BGI Sale – CEO – Wall Street Journal
U.K. bank Barclays PLC (BCS) said Friday it will be one of the most capitalized banks in the world following the sale of its Barclays Global Investors unit to BlackRock Inc. (BLK), a move that distances it further from the need for emergency funding from the U.K. government.
“I don’t have any worries over our capital position,” Barclays Chief Executive John Varley said after the bank announced it was selling BGI for $13.5 billion (GBP8.2 billion). Under the terms of the deal it will get a 19.9% interest in BlackRock and GBP4 billion in cash…..
TARP Repayments to Start Next Week – Wall Street Journal
Big banks are expected to start repaying government bailout funds next Wednesday, according to people familiar with the matter…..
World Bank Predicts Deeper Economic Contraction – Washington Post
The global economy is set to shrink this year more than previously expected, according to a forecast issued yesterday by the World Bank….
Calls Resume for Single Banking Regulator – Washington Post
The Obama administration is facing new pressure from key Democratic and Republican lawmakers to centralize banking oversight in a single regulator, a proposal the White House had seriously considered before shelving it as widespread opposition grew.
Sen. Charles E. Schumer (D-N.Y.), a leading voice on financial policy and vice chairman of the Joint Economic Committee, urged Treasury Secretary Timothy F. Geithner in a letter yesterday to propose a single banking regulator and dispense with the alphabet soup of agencies that now oversee banks….
US lawmaker: BofA’s Lewis inconsistent – Reuters
A lawmaker is questioning the consistency of testimony by Bank of America (BAC.N) Chief Executive Ken Lewis, saying he may have perjured himself at a congressional hearing Thursday over whether he asked for explicit government backing for the takeover of Merrill Lynch.
“He certainly put himself in legal jeopardy,” Democrat Dennis Kucinich told reporters after the hearing into the deal by the House Oversight and Government Reform Committee.
At issue is whether Lewis asked for a letter ordering Bank of America to go forward with the deal, whether he recalls the request, or whether, as Lewis testified on Thursday, it was a request for something in writing to confirm government assistance for the deal would be forthcoming…..
Bernanke Success May Come at Cost of Congress Curbing Fed Power – Bloomberg
Federal Reserve Chairman Ben S. Bernanke’s success in stabilizing the financial system through unprecedented use of the central bank’s powers may come at the cost of Congress limiting some of that authority in the future….
A.I.G. Balks at Claims From Jet Ditching in Hudson – NY Times
For the first couple of days after his flight ditched into the Hudson River, Paul Jorgenson was just glad to be alive. But then he started to need his laptop, his wallet, his car keys — all the essentials he had stowed under his seat and left behind in the sinking plane.
For the first couple of days after his flight ditched into the Hudson River, Paul Jorgenson was just glad to be alive. But then he started to need his laptop, his wallet, his car keys — all the essentials he had stowed under his seat and left behind in the sinking plane.
“Everything went downhill,” said Mr. Jorgenson, a software executive in Charlotte, N.C., whose laptop and keys have not been recovered….
Principal Declines U.S. Bailout After Raising Capital – Bloomberg
Principal Financial Group Inc., the Des Moines, Iowa-based seller of life insurance and retirement products, declined a federal bailout after raising $1.9 billion selling stock and bonds to private investors.
The insurer opted not to sell a stake to the Treasury “due to the stabilization of the credit and financial systems in the U.S.,” Chief Executive Officer Larry Zimpleman said today in a statement distributed by Business Wire…..
Chrysler’s next fear: High gas prices – CNNMoney
In the auto business, timing really is everything.
Even as Chrysler embarks on its path to resurgence, its short-term survival is threatened by rising gas prices and a product line still dominated by trucks and SUVs.
Fiat of Italy, stands ready to assist with its fuel-efficient small cars. But those won’t be ready for at least a year…..
Chrysler’s Sale to Fiat Appealed by Dealers to Protect Claims – Bloomberg
Chrysler LLC’s sale to Fiat SpA was appealed by auto dealerships seeking to ensure that they can challenge how the deal affects their claims against the bankrupt automaker.
Performance Dodge LLC and 20 other dealers want to protect their rights to make administrative or damage claims stemming from the rejection of their Chrysler franchises, Russell McRory, a lawyer representing the group, said yesterday. The dealers filed papers in U.S. Bankruptcy Court in Manhattan……
AMR to Cut 1,600 Jobs, Delta May Follow as Fares Drop – Bloomberg
AMR Corp.’s American Airlines will shed 1,600 jobs and Delta Air Lines Inc. may pare its payroll again as waning travel demand spurs deeper cuts in seating capacity.
The reductions at American, the world’s second-biggest carrier, amount to about 2.4 percent of the 67,000-person workforce, while Delta, the largest airline, said it would “reassess staffing needs” without giving a figure. US Airways Group Inc. said it’s asking 400 flight attendants to take voluntary leaves…..
Yahoo hires CFO from Altera - Reuters
Yahoo Inc on Thursday named Altera Corp’s chief financial officer as its finance chief, the latest move by the Internet company to rebuild itself in the image of its new chief executive.
Tim Morse — who also worked at General Electric Co for 15 years — will succeed Blake Jorgensen as CFO, reporting to CEO Carol Bartz, who has been reshuffling management and streamlining operations since she took over the helm of the company in January…..
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