- Citi reshuffle to usher in more turmoil
- Geithner Seeks ‘Difficult-to-Evade’ Derivatives Laws
- El-Erian Says Geithner Shares an ’A’ With Bernanke for Effort
- Roubini Sees Six More Months of Recession, ‘Shallow’ Recovery
- Few Economists Favor More Stimulus
- Pimco Says Avoiding Japanese Bonds Is a ‘Huge Risk’
- Sky Capital Hit Brits
- Google CEO Says Microsoft’s Bing May Grab More Share
Citi reshuffle to usher in more turmoil – Financial Times
….Ned Kelly and Gary Crittenden, two former chief financial officers and erstwhile candidates for the top job, were on Thursday added to a list of rising stars who have left Citi or moved to less important posts within the financial group.
The surprise reshuffle of the bank’s top ranks leaves many questions unanswered, particularly about its timing, just a week before second-quarter results, but one thing is certain: the latest convulsions will not be the last for a company that has suffered big losses and has been repeatedly bailed out by US taxpayers…..
Geithner Seeks ‘Difficult-to-Evade’ Derivatives Laws – Bloomberg
U.S. Treasury Secretary Timothy Geithner is urging Congress to rein in the $592 trillion derivatives market with new laws that are “difficult to evade.”
The complexity of over-the-counter derivatives contracts and industry growth let corporations take on excessive risk and caused a “very damaging wave of deleveraging” that exacerbated the global credit crisis, Geithner said in prepared testimony to be delivered today at a joint hearing of the House Agriculture and Financial Services committees in Washington….
El-Erian Says Geithner Shares an ’A’ With Bernanke for Effort – Bloomberg
Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., gives Timothy Geithner and Ben S. Bernanke an “A” for their efforts to revive credit markets.
Geithner, the U.S. Treasury secretary, and Bernanke, the Federal Reserve chairman, deserve just a “B” for results because “it’s very difficult to get it right,” El-Erian, 50, said in an interview from Pimco’s headquarters in Newport Beach, California. “They’ve been imaginative, they’ve been bold, they’ve been willing to take risks. On outcome it’s a ‘B.’”….
Roubini Sees Six More Months of Recession, ‘Shallow’ Recovery – Bloomberg
The U.S. recession will last six more months and be followed by a “shallow” recovery, Nouriel Roubini said.
The economy contracted by 5.5 percent in the first quarter and 6.3 percent in the fourth quarter of 2008, the most since 1958, according to data compiled by Bloomberg. The savings rate reached 6.9 percent in May, the highest since December 1993, spurring concern that consumer spending will wane….
Few Economists Favor More Stimulus – Wall Street Journal
Most economists believe the U.S. doesn’t need another round of stimulus now despite expectations of continued severe job losses.
Just eight of 51 economists in The Wall Street Journal’s latest forecasting survey said more stimulus is necessary, suggesting an average of about $600 billion in additional spending. On average, the economists forecast an unemployment rate of at least 10% through next June, with a decline to 9.5% by December 2010…..
Pimco Says Avoiding Japanese Bonds Is a ‘Huge Risk’ – Bloomberg
Pacific Investment Management Co., which runs the world’s largest bond fund, said investors who avoid Japanese government debt may miss out on a rally.
Japan’s benchmark bonds may gain this year, pushing 10-year yields to the lowest since August 2003, as the world’s second- largest economy struggles to emerge from its worst postwar recession and avoid a deflationary spiral, said Tomoya Masanao, a Pimco executive vice president in Tokyo. The Newport Beach, California-based company manages $756 billion in assets…..
Sky Capital Hit Brits – NY Post
The majority of the victims in the alleged “boiler-room” fraud run by Wall Street trader Ross Mandell were mom-and-pop investors from the UK who were targeted by aggressive cold-calling brokers, according to FBI sources.
Investigators said Mandell’s firm, Sky Capital, conned as many as 400 British retail investors out of a total of more than $110 million in a fraud that lasted eight years and led to this week’s arrest of six top Sky Capital executives, including Mandell…..
Google CEO Says Microsoft’s Bing May Grab More Share – Bloomberg
Google Inc. Chief Executive Officer Eric Schmidt said Microsoft Corp.’s new Bing Internet search engine may lure more Web surfers in the future.
While Google isn’t losing many users to Bing, Microsoft’s product shows that the search market is competitive, Schmidt said today at the annual Allen & Co. media conference in Sun Valley, Idaho…
Tags: Citigroup, Derivatives, Economy, Mohamed El-Erian, Nouriel Roubini, Pimco, Ross Mandell, Sky Capital, Tim Geithner, U.S. Treasury
