• Lehman Sues Barclays Capital
  • America’s Newest Land Baron: FDIC
  • Geithner under fire over AIG payments
  • Audit Is Critical of N.Y. Fed in AIG Bailout
  • New York Fed under fire over crisis bank payments
  • TARP Can’t Save Some Banks
  • Millions may have to repay part of stimulus tax credit
  • Buffett’s Berkshire Discloses Exxon, Nestle Stakes
  • Microsoft Co-Founder Treated for Lymphoma
  • Wachovia Could Lose $36.6 Million in Madoff Liquidation Claim
  • Gold May Climb to Record as Dollar Slump Fuels Investor Demand
  • Ackman’s Pershing Square Triples Stake in McDonald’s
  • GMAC chief ousted as bail-out talks go on
  • A Change at the Top of GMAC as It Negotiates for Another Government Bailout

Lehman Sues Barclays Capital - Wall Street Journal

….The lawsuit stems from Barclays’ purchase of Lehman’s broker-dealer business just days after the investment bank filed for bankruptcy protection last year. Lehman’s suit comes after months of wrangling between Barclays and Lehman over the purchase of the Lehman business by the investment-banking arm of Barclays PLC.

Lehman, in Monday’s lawsuit filed with the U.S. Bankruptcy Court in Manhattan, claimed the sale was “secretly structured from the outset to give Barclays an immediate and enormous windfall profit.” The excess assets include as much as $7 billion of securities transferred to Barclays under a repurchase agreement and $5 billion in assets added to the deal during and after the court hearing approving the sale…..

America’s Newest Land Baron: FDIC – Wall Street Journal

….In the past two years, the FDIC has taken over 150 failed banks. In the process, it has seized more than 5,000 houses, subdivisions, buildings, parcels and other foreclosed assets. The current backlog of property stuck on the agency’s books, with an appraised value of $1.8 billion, ranges from an $18,700 clapboard home with stained carpets in Birmingham, Ala., to a $1.7 million mountainside lodge with a heated driveway in Steamboat Springs, Colo.

Taxpayers will be grappling with this flotsam for years to come, one example of how the crisis will linger long after the economy begins to revive. At a recent FDIC auction in Atlanta, the agency offered a four-unit condo building it had already sold once before — after the savings-and-loan crisis two decades ago…..

Geithner under fire over AIG payments – Financial Times

The New York Federal Reserve under Tim Geithner “severely limited its ability” to extract concessions from AIG’s counterparties in talks that ended with $27.1bn (€18.18bn, £16.25bn) of public money transferred to the likes of Société Générale and Goldman Sachs, according to a government watchdog.

But in spite of criticism levelled at the team of Mr Geithner, now Treasury secretary and last year president of the New York Fed, the watchdog’s report fails to find evidence that the institution was negligent in not demanding “haircuts” from the counterparties to AIG’s credit default swap contracts….

Audit Is Critical of N.Y. Fed in AIG Bailout – Wall Street Journal

The Federal Reserve Bank of New York caved into demands by American International Group Inc.’s trading partners that they be paid in full for complex securities they had insured with the company, saving some of the world’s biggest banks from potentially large losses, according to a government audit.

The audit, which was conducted by the special inspector general for the Troubled Asset Relief Program faulted the New York Fed for not using its leverage as the regulator of some of these banks to get them to accept lower prices for more than $60 billion in credit-market bets, which were tied to souring mortgage-linked securities that had fallen in value. The banks that were paid off in full included Goldman Sachs Group Inc., Merrill Lynch and large French banks Société Générale and Calyon, which were represented by the French bank regulator in negotiations with the New York Fed last November, the report said….

New York Fed under fire over crisis bank payments – Financial Times

The New York Federal Reserve under Tim Geithner “severely limited its ability” to extract concessions from AIG’s counterparties in talks that ended with $27.1bn (€18.18bn, £16.25bn) of public money transferred to the likes of Société Générale and Goldman Sachs, according to a government watchdog.

But in spite of criticism levelled at the team of Mr Geithner, now Treasury secretary and last year president of the New York Fed, the watchdog’s report fails to find evidence that the institution was negligent in not demanding “haircuts” from the counterparties to AIG’s credit default swap contracts…..

TARP Can’t Save Some Banks - Wall Street Journal

U.S. regulators have seized or threatened at least 27 banks that received capital infusions from the Troubled Asset Relief Program, including some lenders that government officials knew were troubled when they awarded the money.

The troubles put taxpayers at risk of losing as much as $5.1 billion invested in the banks since TARP was launched in October 2008. For example, Friday’s three bank failures, increasing the 2009 total to 123, included a unit of Pacific Coast National Bancorp, a San Clemente, Calif., bank that sold $4.1 million of preferred shares to the Treasury Department in January…..

Millions may have to repay part of stimulus tax credit – Washington Post

Some 15.4 million taxpayers could receive smaller refunds than they expected or owe taxes next year because they did not have enough money withheld from their paychecks as part of the Making Work Pay tax credit program, according to a report issued Monday…..

But federal tax tables that guide those withholdings did not account for some wage earners whose personal situations complicated the tax credit calculation. That category included some workers with more than one job, some married couples in which both spouses work, and some Social Security recipients with jobs…..

Buffett’s Berkshire Discloses Exxon, Nestle Stakes – Bloomberg

Warren Buffett’sBerkshire Hathaway Inc. disclosed stakes in oil producer Exxon Mobil Corp., candy maker Nestle SA, trash hauler Republic Services Inc. and insurer Travelers Cos.

Buffett’s company had about 1.28 million shares of Exxon, the world’s largest oil company, Berkshire said today in a regulatory filing disclosing U.S. equity investments as of Sept. 30. The stake in Irving, Texas-based Exxon was valued at about $87.6 million at the end of the third quarter. Berkshire increased its stake in Wal-Mart Stores Inc., the largest retailer, by 90 percent to 37.8 million shares from 19.9 million as of June 30…..

Microsoft Co-Founder Treated for Lymphoma – Wall Street Journal

Paul Allen, the billionaire investor who co-founded Microsoft Corp., was diagnosed earlier this month with non-Hodgkin’s lymphoma and is undergoing chemotherapy…..

In an email sent Monday afternoon to employees of Vulcan Inc., Mr. Allen’s Seattle-based investment firm, Vulcan CEO Jody Allen said Mr. Allen’s doctors say he has diffuse large B-cell lymphoma.

Ms. Allen, Mr. Allen’s sister, said in the email that the diagnosis is “tough news for Paul and the family” but that her brother is “optimistic he can beat” the disease as he did his previous illness…..

Wachovia Could Lose $36.6 Million in Madoff Liquidation Claim – Bloomberg

Wachovia Corp. said it will lose its right to recover $36.6 million in loan collateral that the bank lost in Bernard Madoff’s fraud if a judge doesn’t reject the way claims are being set in the liquidation of the con man’s firm.

Wachovia, owned by Wells Fargo & Co., claims trustee Irving Picard interpreted the law incorrectly when he approved only $7.9 million of its $44.5 million claim, the bank said in an objection filed Nov. 13 in U.S. Bankruptcy Court in New York….

Gold May Climb to Record as Dollar Slump Fuels Investor Demand – Bloomberg

Gold, little changed, may climb to a record for a second day as investors boost holdings to protect their wealth against a declining dollar and inflation.

Bullion may also extend its advance beyond yesterday’s high of $1,143.60 an ounce after the central bank of Mauritius bought 2 metric tons, or about $71.7 million, of gold from the International Monetary Fund, a move that may be followed by other emerging-market nations trying to diversify their currency reserves…..

Ackman’s Pershing Square Triples Stake in McDonald’s – Bloomberg

Pershing Square Capital Management LP, the hedge fund run by William Ackman, more than tripled its stake in McDonald’s Corp. in the third quarter.

The fund boosted its holdings in the Oak Brook, Illinois- based restaurant chain to 8.25 million shares, valued at $470.6 million, from 2.4 million shares in the prior quarter, according to a filing today with the U.S. Securities and Exchange Commission…..

GMAC chief ousted as bail-out talks go on – Financial Times

Alvaro de Molina was ousted as chief executive of GMAC Financial Services, the lending arm of General Motors, on Monday after little more than 18 months in the post as the troubled lender remained locked in talks with the US Treasury over a third government bail-out…..

A Change at the Top of GMAC as It Negotiates for Another Government Bailout – NY Times

GMAC Financial Services, the former lending arm of General Motors, replaced its chief executive on Monday as it negotiates for another round of bailout financing from the federal government.

The company’s directors appointed Michael A. Carpenter, a former Citigroup executive and current GMAC director, to succeed Alvaro de Molina, who had run the company since April 2008. Mr. Carpenter said the board believed that he would be more appropriate as chief executive than Mr. de Molina, who resigned at the board’s request……

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