- Republican Brown Wins Massachusetts Seat in ‘Tsunami’ Election
- Bernanke Seeks to Defuse Criticism Over AIG With Call for Audit
- New York Fed Says AIG Phrase Marked for Deletion Was Inaccurate
- Pandit’s gambit
- Pandit Is Running Out of Time to Clean Up Citigroup
- Morgan Stanley Reports Full-Year and Fourth Quarter Result
- Bank of America Announces 2009 Net Income of $6.3 Billion
- Bank Of America 4Q Loss Narrows Amid Merrill Results
- New York Fed Defends Handling of AIG Disclosure, Cites Accuracy
- Dubai World Removes Istithmar CEO Jackson Amid Crisis
- Apple Said to Talk With Microsoft to Replace Google on IPhone
- Twitter Operating Chief Dick Costolo Says IPO Still ‘Way Out’
Republican Brown Wins Massachusetts Seat in ‘Tsunami’ Election – Bloomberg
Republican Scott Brown won a U.S. Senate seat in Massachusetts in a political upset that imperils health-care legislation in Congress and sends a warning to President Barack Obama and Democrats ahead of November’s midterm elections.
The loss yesterday by the once-favored Democratic state Attorney General Martha Coakley for a seat held by the late Senator Edward M. Kennedy for nearly half a century shook the nation’s political dynamics and started a blame game…..
Bernanke Seeks to Defuse Criticism Over AIG With Call for Audit – Bloomberg
Federal Reserve Chairman Ben S. Bernanke sought to defuse allegations that the central bank tried to conceal details about the $182.3 billion bailout of American International Group Inc., calling for a review of Fed actions by congressional auditors.
In a letter yesterday to the Government Accountability Office, Bernanke pledged “all records and personnel necessary” for an audit. Separately, the New York Fed provided 250,000 pages of documents to a U.S. House committee in response to a Jan. 12 subpoena demanding all materials related to the decision to fully reimburse banks that bought protection from AIG…..
New York Fed Says AIG Phrase Marked for Deletion Was Inaccurate – Bloomberg
The Federal Reserve Bank of New York said its attorneys suggested American International Group Inc. not disclose information about full-value payouts to banks because it wasn’t “precisely accurate.”
“The counterparties ultimately received slightly less than 100 percent of par value,” the New York Fed said in a statement today on its Web site. The central bank said it “sought to ensure” that AIG had the “greatest possible precision” in its securities filings…..
Pandit’s gambit – NY Post
Just when Vikram Pandit probably thought he was out of the woods, he finds himself in what could be the fight of his career.
After more than two years at the helm of beleaguered banking giant Citigroup, the chief executive is facing stiffening pressure to transform his bank from Wall Street’s problem child into a profit machine like his peers — yet he has few options available to achieve that goal given the economic headwinds that confront him.
Indeed, while Pandit was able to blame the recession for many of Citi’s woes, investors appear to be growing restive, demanding the company shed more assets, generate more profits from its investment-banking operation and boost its stock price from its current levels…..
Pandit Is Running Out of Time to Clean Up Citigroup – NY Times
It is make or break time for Vikram S. Pandit.For the last two years, Mr. Pandit has tried, with mixed success, to clean up the financial mess that is Citigroup. But some of his employees and shareholders are starting to lose patience. After many billions of dollars in losses, Mr. Pandit must deliver profits in 2010, or risk losing his job as chief executive, they say…..
Morgan Stanley Reports Full-Year and Fourth Quarter Result – Business Wire
Morgan Stanley (NYSE: MS) today reported income from continuing operations applicable to Morgan Stanley for the year ended December 31, 2009 of $1,149 million, compared with a loss from continuing operations applicable to Morgan Stanley of $807 million, a year ago. The Firm reported a loss from continuing operations of $0.93 per diluted share2 reflecting preferred dividends and the repurchase of TARP Capital, compared with a loss from continuing operations of $1.26 per diluted share in the prior year. Net revenues for the year were $23.4 billion, compared with $18.2 billion in the prior year. Net revenues in the current year included negative revenue of $5.5 billion due to the significant improvement in Morgan Stanley’s credit spreads on certain of its long-term debt (debt-related credit spreads), while the prior year included positive revenue of $5.3 billion related to the deterioration of the same debt-related credit spreads.3 Comparisons of current year results to the prior year were impacted by the results of the Morgan Stanley Smith Barney joint venture (MSSB),4 which closed on May 31, 2009……
Bank Of America 4Q Loss Narrows Amid Merrill Results – Wall Streeet Journal
-Bank of America Corp. (BAC) posted a loss of $194 million in the fourth quarter after its mammoth consumer loan books showed signs of stabilizing, but its once-frothy revenue from trading fell sharply.
Still, the results are an improvement over a year ago, when the Charlotte bank and its peers were battered by the financial crisis.
Shares were up 1.1% to $16.50 in premarket trading. The stock had gained 8.4% in January through Tuesday…..
Bank of America Announces 2009 Net Income of $6.3 Billion – Press Release
Bank of America Corporation today reported full-year 2009 net income of $6.3 billion, compared with net income of $4.0 billion in 2008. Including preferred stock dividends and the negative impact from the repayment of the U.S. government’s $45 billion preferred stock investment in the company under the Troubled Asset Relief Program (TARP), income applicable to common shareholders was a net loss of $2.2 billion, or $0.29 per diluted share.
Those results compared with 2008 net income applicable to common shareholders of $2.6 billion, or $0.54 per diluted share.
In the fourth quarter of 2009, the company’s net loss narrowed to $194 million from a loss of $1.8 billion a year earlier. Including dividends on preferred stock and the one-time $4.0 billion negative impact associated with repaying TARP, income applicable to common shareholders in the period was a net loss of $5.2 billion, or $0.60 per diluted share, compared with a net loss of $2.4 billion, or $0.48 per diluted share, in the year-ago quarter.
Results in the fourth quarter reflected continued elevated credit costs, although lower than in the third quarter of 2009. While net interest income declined from the year-ago quarter as a result of lower asset liability management portfolio levels and reduced loan demand, noninterest income was up sharply due to an improvement in trading and significantly higher income from investment and brokerage services, equity investments and investment banking.
“While it’s disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting,” said Chief Executive Officer and President Brian T. Moynihan. “First, we repaid the American taxpayer, with interest, for the TARP investment. Second, we have taken steps to strengthen our balance sheet through successful securities offerings. And third, all of our non-credit businesses recorded positive contributions to our results…..
New York Fed Defends Handling of AIG Disclosure, Cites Accuracy – Bloomberg
The Federal Reserve Bank of New York defended its handling of the American International Group Inc. bailout, saying it suggested some information about payouts to banks not be disclosed because it wasn’t “precisely accurate.”
The New York Fed made more than 250,000 pages of documents available to Congress in response to a subpoena seeking information about the payments, according to a statement posted on its Web site yesterday. The House Committee on Oversight and Government Reform is reviewing efforts by the New York Fed to limit certain disclosures and issued the subpoena last week…..
Dubai World Removes Istithmar CEO Jackson Amid Crisis – Bloomberg
Dubai World replaced the chief executive officer of its private equity unit Istithmar World, the owner of luxury retailer Barneys New York, as the state- owned company seeks to renegotiate about $22 billion of debt.
David Jackson was replaced by Istithmar’s chief investment officer Andy Watson, who was appointed acting chief executive with immediate effect, Dubai World said today in an e-mailed statement. Watson is a former director at Barclays Capital…..
Apple Said to Talk With Microsoft to Replace Google on IPhone – Bloomberg
Apple Inc. is in talks with Microsoft Corp. to replace Google Inc. as the default search engine on the iPhone, according to two people familiar with the matter.
The talks have been under way for weeks, said the people, who asked not to be identified because the details aren’t public. The negotiations may not be concluded quickly and might still fall apart, the people said…..
Twitter Operating Chief Dick Costolo Says IPO Still ‘Way Out’ – Bloomberg
A Twitter Inc. initial public offering remains on the distant horizon as the company prepares to boost revenue with a new advertising program, said Chief Operating Officer Dick Costolo.
“My view of our financial future is like that old New Yorker cover where the New Yorker looks at the view of the United States and the IPO is way out west somewhere,” Costolo said yesterday during a panel discussion at Bloomberg’s San Francisco bureau. “Bronx and Queens are our 2010 financial plan, and that’s what we’re focused on right now.”…
Tags: AIG, Bank of America, Barack Obama, Ben Bernanke, Fed, Morgan Stanley, Obamacare, Revolving Door, Scott Brown, Sovereign wealth, Twitter
