- Toxic Loans Topping 5% May Push 150 Banks to Point of No Return
- Fed Pressures CIT for Survival Plans
- CIT gives New York Fed oversight of restructuring
- Berkshire Sheds Light on Valuation Process
- Bank of America Wins Order on Colonial Bank Assets
- Schwarzman’s $702 Million Tops List of Best-Paid Executives
- Report on the 10 top-paid U.S. CEOs
- Krawcheck buys $1 million Bank of America stock
- Madoff’s Mad Dodges Gun, Drug Charges
- Blackstone to Launch Private-Equity Fund in Shanghai
- VW Seals Deal for Porsche in Reversal of Fortune
- Republic Beats Southwest to Buy Bankrupt Frontier Air
- Hard Rock Hotel Negotiating With Lenders
Toxic Loans Topping 5% May Push 150 Banks to Point of No Return – Bloomberg
More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.
The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full…..
Fed Pressures CIT for Survival Plans – Wall Street Journal
The U.S. Federal Reserve is stepping up pressure on CIT Group Inc. to come up with a viable plan for survival.
CIT agreed to submit two separate plans to the Fed in coming weeks, the company said on Thursday. One would give a roadmap for maintaining sufficient capital and another would outline ways CIT plans to improve its overall financial condition. Additionally, the commercial lender has agreed to give the Fed a say over dividend payments, debt and stock purchases…..
CIT gives New York Fed oversight of restructuring – Financial Times
CIT, the troubled US small business lender, on Thursday made an agreement with the Federal Reserve Bank of New York, its primary regulator, giving the Fed detailed oversight of its restructuring plans and veto power over dividend payments and other shareholder-friendly activity.
The agreement came as CIT said it had introduced a “poison pill” that discourages investors from buying more than 5 per cent of its shares and deters large shareholders from raising their stakes, in an effort to protect tax benefits from the company’s losses…..
Berkshire Sheds Light on Valuation Process – Wall Street Journal
A regulatory filing Thursday by Warren Buffett’s Berkshire Hathaway Inc. disclosed new details about how it values complicated — and widely watched — financial bets the company has made.
The filing included a June letter from Berkshire to the Securities and Exchange Commission responding to the agency’s request for information on how Berkshire calculated volatility in its estimates for its equity index put option contracts…..
Bank of America Wins Order on Colonial Bank Assets – Bloomberg
Bank of America Corp. won a restraining order barring Colonial Bank, the Alabama lender under federal criminal investigation, from selling or otherwise disposing of $1 billion in cash and loans held by Colonial.
Colonial, based in Orlando, Florida, said last week it may be placed into receivership with the Federal Deposit Insurance Corp., after a planned Aug. 10 meeting with the Alabama State Banking Board. Details of the meeting weren’t disclosed…..
Schwarzman’s $702 Million Tops List of Best-Paid Executives – Bloomberg
Blackstone Group LP Chief Executive Officer Stephen Schwarzman was the highest-paid executive in the U.S. last year as his compensation topped $702 million, the Corporate Library reported.
The package for Schwarzman included $2.3 million of compensation and almost $699.8 million from the vesting of one- quarter of the equity granted as he took the firm public at $31 a share in 2007, said the Portland, Maine-based Corporate Library. Schwarzman, Blackstone’s founder, was granted $4.7 billion in equity at the time of the offering, said the Corporate Library, which specializes in governance issues…..
Report on the 10 top-paid U.S. CEOs – Reuters
Blackstone Group LP’s Stephen Schwarzman topped a list of the 10 highest-paid chief executives in the United States, as reported by The Corporate Library on Thursday….
Company CEO Realized compensation
Blackstone Group Stephen Schwarzman $702,440,573
Oracle Corp Larry Ellison $556,976,600
Occidental Petroleum Ray Irani $222,639,705…..
Krawcheck buys $1 million Bank of America stock – Reuters
Sallie Krawcheck has purchased just over $1 million of Bank of America Corp (BAC.N) stock, a little more than a week after becoming head of global wealth and investment management at the largest U.S. bank.
Krawcheck on Wednesday bought 63,000 shares at an average $15.97 each, according to a filing Thursday with the U.S. Securities and Exchange Commission…..
Madoff’s Mad Dodges Gun, Drug Charges – NY Post
Bernie Madoff’s right-hand man Frank DiPascali may have confessed to his role in Madoff’s $65 billion fraud to purge himself of his sins — but it also appears he did so to shut the door on other skeletons in his closet, including guns and drugs…..
Blackstone to Launch Private-Equity Fund in Shanghai – Wall Street Journal
Blackstone Group LP is planning to launch an up to 5 billion yuan ($732 million) local currency private equity fund in Shanghai, according people familiar with the situation, as Chinese officials try to lure foreign money managers to raise funds from local investors…..
VW Seals Deal for Porsche in Reversal of Fortune – Wall Street Journal
After a 10-month wild ride, German auto makers Volkswagen AG and Porsche Automobil Holding SE Thursday said they reached a broad agreement to merge the premium sportscar manufacturer into VW.
VW said it will pay as much as €3.3 billion ($4.7 billion) to take a 42% stake in Porsche’s core sports-car arm by the end of 2009, a precursor to a full merger of Porsche’s holding company with VW in 2011…..
Republic Beats Southwest to Buy Bankrupt Frontier Air - Bloomberg
Republic Airways Holdings Inc. won a bankruptcy court auction to buy Frontier Airlines Holdings Inc., bidding $108.8 million to beat Southwest Airlines Co.
Republic also agreed to waive any right to recovery on a $150 million pre-petition unsecured claim, the carrier said today in a statement. U.S. Bankruptcy Judge Robert Drain in New York and regulators have yet to review the sale. Southwest bid $170 million Aug. 10…
Hard Rock Hotel negotiating with lenders on $1.28 billion expansion loans – LV Review Journal
The Hard Rock Hotel is in talks with lenders to push back a Feb. 9 maturity date on $1.28 billion in loans the owners used to purchase and expand the property, according to a filing with the Securities and Exchange Commission.
The company’s agreement with lenders who hold $1.28 billion in commercial mortgage-backed securities already includes two possible one-year extensions if the property meets “certain conditions,” which were not disclosed in the filing…..
Tags: Bank of America, Banks, Berkshire Hathaway, Bernie Madoff, Blackstone Group, CIT, Compensation, Fed, Sallie Krawcheck, Stephen Schwarzman, Toxic loans, Warren Buffett, Wealth
