- Cerberus to Raise New Funds After Investors Pull $4.77 Billion
- Lehman’s Europe Administrator May Claim $100 Billion
- Frank Said to Back Broader Fed Audits
- Kennedy Death Cuts Broad Health Bill Odds, Hatch Says
- Raft of Deals for Failed Banks Puts U.S. on Hook for Billions
- Fed makes $14bn profit on loans provided during financial turmoil
- The Flash-Trading Thorn in NYSE’s Side
- As Big Banks Repay Bailout, U.S. Sees Profit
- Swiss banks expect to avoid witch-hunt
- Fed’s Dudley: early to mull curbing security purchases
- Inflation Will Accelerate This Decade, Business Economists Say
- Apple May Sell More Than 3 Million IPhones in China Next Year
- Baker Hughes to buy BJ Services for $5.5 billion
Cerberus to Raise New Funds After Investors Pull $4.77 Billion – Bloomberg
Cerberus Capital Management LP plans to raise money in the fourth quarter to buy distressed companies and securities after losses on investments such as Chrysler LLC and GMAC LLC led to $4.77 billion in client redemptions.
The withdrawal requests, representing 60 percent of the $7.9 billion in its Cerberus Partners LP and Cerberus Institutional LP funds, came mostly from other managers who need to pay off investors, according to Mark Neporent, the New York- based firm’s chief operating officer and general counsel. Institutions and wealthy individuals are still looking to invest with Cerberus, which oversees $24.3 billion, including a $1 billion fund raised last month, he said.
“These redemptions are not a reflection of a lack of confidence, but a reflection of demands of liquidity” from the funds of funds that had placed clients’ cash with Cerberus, Neporent said in an Aug. 29 interview.
Lehman’s Europe Administrator May Claim $100 Billion – Bloomberg
PricewaterhouseCoopers LLP, the administrator of Lehman Brothers Holdings Inc.’s European arm, may claim as much as $100 billion from the bankrupt New York- based bank’s parent company.
“A significant number of claims arise as a result of guarantees issued by the parent company to its subsidiaries globally,” PricewaterhouseCoopers said in an e-mailed statement. “These claims are exceptionally complex and we anticipate a large amount of further work in dealing with these claims.”….
Frank Said to Back Broader Fed Audits – Wall street Journal
Rep. Ron Paul said he has a commitment from the chairman of the House Financial Services Committee, Barney Frank, to advance the Texas Republican’s legislation opening the Federal Reserve to broader federal audits.
In an interview Friday, Mr. Paul said Mr. Frank agreed to allow a vote on the bill and to work on language that would allow the Government Accountability Office, the investigative arm of Congress, to audit the Fed’s monetary-policy operations. While details are unresolved, the discussions increase the likelihood that some version of Mr. Paul’s bill will pass the House….
Kennedy Death Cuts Broad Health Bill Odds, Hatch Says – Bloomberg
Congress is less likely to pass sweeping health-care overhaul legislation following the death of Senator Edward Kennedy, a leading Republican said.
“You’re not going to get this big, broad Democrat spending bill — you’re not going to get Republican support,” Senator Orrin Hatch, a Utah Republican and close friend of the Massachusetts Democrat, said on CNN’s “State of the Union” program…..
Raft of Deals for Failed Banks Puts U.S. on Hook for Billions – Wall Street Journal
The biggest spur to deal-making among banks isn’t private-equity cash or foreign investors. It is the federal government.
To encourage banks to pick through the wreckage of their collapsed competitors, the Federal Deposit Insurance Corp. has agreed to assume most of the risk on $80 billion in loans and other assets. The agency expects it will eventually have to cover $14 billion in future losses on deals cut so far. The initiative amounts to a subsidy for dozens of hand-picked banks….
Fed makes $14bn profit on loans provided during financial turmoil – Financial Times
The Federal Reserve has made a $14bn (£8.6bn) profit on loan programmes that provided hundreds of billions of dollars in liquidity to the financial system since the start of the crisis two years ago, according to Fed officials.
The internal estimate is based on the difference between the fees and interest on the lending facilities and the interest the Fed would have earned had it invested the funds in three-month Treasury bills…..
The Flash-Trading Thorn in NYSE’s Side – Wall Street Journal
William O’Brien’s father was a seat holder and trader on the New York Stock Exchange in the 1970s. Now, the younger Mr. O’Brien has become one of the Big Board’s top rivals.
The 39-year-old Mr. O’Brien is chief executive of Direct Edge, a trading system that has commandeered 12% of U.S.-listed stock trading, a six-fold increase in just two years. The Big Board is leading an attack against Direct Edge, and has found a sympathetic ear in Congress and the Securities and Exchange Commission.
Direct Edge, of Jersey City, N.J., is at the heart of the world of high-frequency trading….
As Big Banks Repay Bailout, U.S. Sees Profit – NY Times
Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid that many critics thought might never be seen again.
he profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually, according to calculations compiled for The New York Times…..
The government still faces potentially huge long-term losses from its bailouts of the insurance giant American International Group, the mortgage finance companies Fannie Mae and Freddie Mac, and the automakers General Motors and Chrysler. The Treasury Department could also take a hit from its guarantees on billions of dollars of toxic mortgages.
Swiss banks expect to avoid witch-hunt – Financial Times
Switzerland’s top private bankers are convinced they can avoid a damaging witch-hunt over their activities by US authorities, in the wake of UBS’s tax row.
In interviews with the Financial Times, senior executives of Credit Suisse and Julius Baer, the country’s number two and number three private bank businesses after UBS, both said they were sanguine…..
Fed’s Dudley: early to mull curbing security purchases – Reuters
New York Federal Reserve President William Dudley said on Monday it is too early to talk about curtailing the central bank’s long-term security purchases while the economic recovery is fragile.
“As financial conditions improve, which seems to be the trajectory, it’s a legitimate point to consider what you want to do in terms of your purchase programs,” Dudley told CNBC in an interview…..
Inflation Will Accelerate This Decade, Business Economists Say – Bloomberg
The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation later this decade, a survey of business economists showed.
The price gauge tracked by the central bank will rise 3 percent a year on average from 2014 through 2018, according to the median estimate in a poll taken by the National Association for Business Economics. The rate exceeds the 2 percent pace that the respondents said was the Fed’s unofficial target…..
Apple May Sell More Than 3 Million IPhones in China Next Year – Bloomberg
Apple Inc. may sell more than 3 million iPhones in China during the next year as it enters the world’s largest wireless market.
More than 10 percent of the 32.5 million iPhones Apple is projected to ship worldwide through September 2010 will be sold in China, according to Piper Jaffray & Co. China Unicom (Hong Kong) Ltd., the nation’s second-largest wireless carrier, said last week it will begin offering the 3G and 3GS models of the handset next quarter…..
Baker Hughes to buy BJ Services for $5.5 billion – Reuters
Baker Hughes Inc (BHI.N) said it will buy smaller competitor BJ Services Co (BJS.N) for $5.5 billion in stock and cash to expand its international business and take advantage of BJ’s pressure pumping expertise.
The deal values BJ at a 16 percent premium over its closing price on Friday, the companies said…..
Tags: Apple, Barney Frank, Cerberus, Fed, Fees, Health Care, Hedge fund redemptions, Lehman Brothers, NYSE, Politics
