- NYC Comptroller Sees 400,000 Jobless By 2010, Most Since 1993
- Lawyer Sentenced to 20 Years in $700 Million Fraud
- Rattner Resigns as Obama’s Point Man on the Auto Industry
- U.S. in Talks to Rescue CIT
- Moody’s cuts CIT further into junk on liquidity woes
- Goldman Says It Has ‘No Material Exposure’ to CIT
- Potential Void Left by CIT Would Be Filled, With Time
- Dell Says Profit May Drop Because of Price Squeeze
NYC Comptroller Sees 400,000 Jobless By 2010, Most Since 1993 – Bloomberg
New York City’s unemployment rate will reach 9.5 percent by 2010, leaving 400,000 jobless for the first time since 1993, city Comptroller William Thompson said.
Thompson, the frontrunner for the Democratic nomination to challenge Mayor Michael Bloomberg this year, said the number of unemployed New Yorkers more than doubled to 361,100 in May from 169,700 in February 2008. By 2010, the jobless tally will swell to the most in more than 15 years, he said…..
Lawyer Sentenced to 20 Years in $700 Million Fraud – NY Times
Marc S. Dreier, once a high-flying New York lawyer who orchestrated an elaborate fraud scheme that bilked hedge funds and other investors of $700 million, was sentenced on Monday to 20 years in prison by a judge who rejected the government’s request for a much longer sentence.
Prosecutors had recommended a sentence of 145 years, just five years less than was successfully sought last month in the case of Bernard L. Madoff for his multibillion-dollar Ponzi scheme…..
Rattner Resigns as Obama’s Point Man on the Auto Industry – Washington Post
Steven Rattner, the Wall Street financier who led the Obama administration’s efforts to save General Motors and Chrysler, is resigning as the head of the autos task force to return to New York, the Treasury Department announced yesterday.
The departure surprised some of his colleagues and came a week after the task force finished leading the two automakers into and out of rapid bankruptcy restructurings, along the way investing billions in government funds into the companies and their suppliers…..
U.S. in Talks to Rescue CIT – Wall Street Journal
U.S. government officials are in advanced talks about providing some sort of aid to CIT Group Inc., one of the country’s primary lenders to small and midsize businesses, people familiar with the matter said.
The discussions are fluid. It remains unclear whether a final deal can be brokered and, if so, how expansive it might be…..
Moody’s cuts CIT further into junk on liquidity woes – Reuters
Moody’s Investors Service on Monday cut ratings of CIT Group Inc (CIT.N) further into junk territory and said it may lower them again, citing growing concerns about the lender’s liquidity and ability to survive.
The rating agency cut CIT’s senior unsecured rating a full four notches to B3, six notches into junk. The rating remains on review for a further possible…
Potential Void Left by CIT Would Be Filled, With Time – Wall Street Journal
While a bankruptcy filing by troubled CIT Group Inc. could create immediate disruption for entrepreneurs and small businesses in the U.S., they would eventually find financing from other lenders – likely at higher cost.
“There will be other lenders that can take CIT’s place,” says Bob Seiwert, head of the American Bankers Association’s commercial lending and business banking. “The challenge will be the time it could take CIT borrowers to find a home, given current conditions.”….
Goldman Says It Has ‘No Material Exposure’ to CIT – Bloomberg
Goldman Sachs Group Inc., which provided a $3 billion credit facility to CIT Group Inc. more than a year ago, said today that it has offset any exposure to the company with collateral and hedges.
“We have no material exposure because we are collateralized and, to the extent that we don’t have collateral, we are hedged,” said Lucas van Praag, a Goldman Sachs spokesman in New York. He declined to specify the nature of the hedges…..
Dell Says Profit May Drop Because of Price Squeeze – Bloomberg
Dell Inc., the second-largest maker of personal computers, said its profitability may suffer this quarter because it’s paying more for parts and isn’t passing on those costs to customers. The shares fell 3.6 percent.
Competitive pricing and the higher cost of components will cause a “modest decline” in second-quarter gross margin, the company said today. Demand has stabilized and sales probably rose from the first quarter, Dell said……
Tags: Bailouts, CIT, Dell, Goldman Sachs, Marc Dreier, NYC, unemployment
