AIG, MetLife Reach Deal for Alico
Iceland Voters Reject Debt Deal
Greece will come through crisis without bailout, IMF head says
Fed proposes rule to limit credit card fees
Dubai World lenders await debt plan
Harrah’s to Extend $5.5 Billion CMBS Loan Maturities to 2015
Bloomberg Says a Soda Tax ‘Makes Sense’
American International Group Inc. and MetLife Inc. agreed to a widely anticipated $15.5 billion deal for AIG’s second-largest foreign life-insurance business.
The complicated deal would leave U.S. government-controlled AIG owning roughly a fifth of MetLife, the nation’s No. 1 seller of life insurance.
The two companies said that AIG has agreed to sell American Life Insurance Co., better known as Alico, for $6.8 billion in cash and $8.7 billion in MetLife equity, including common stock and convertible preferred securities……..
Icelanders Saturday roundly rejected a deal to repay the U.K. and the Netherlands €3.9 billion ($5.3 billion) lost in the collapse of an Icelandic Internet bank, complicating the island’s bid to access badly needed international-aid funding and render normal its relations with the rest of the world.
More than 93% of Icelanders voted no in a national referendum, according to preliminary figures published Sunday morning by
state broadcaster RUV. It was Iceland’s first plebiscite since the island’s independence from Denmark in 1944…..
The head of the International Monetary Fund believes Greece will resolve its debt crisis without an IMF bailout, and today dismissed fears that other European nations will be engulfed by the crisis.
Dominique Strauss-Kahn insisted this morning that other eurozone countries with large public deficits would not be forced into the same predicament as Greece. Speaking to Reuters in Nairobi, Strauss-Kahn said the wider European economy was still strong – despite fears that Greece might default on its debts. While the IMF is poised to assist Greece if needed, Strauss-Kahn remains confident that Europe’s leaders could resolve the issue……
In the latest move to overhaul consumer banking practices, the Federal Reserve unveiled a preliminary rule last week to address pesky credit card fees such as late and over-limit charges. The rule — which will be finalized after the public is given a chance to comment — is as notable for what it doesn’t do as for what it does. Here’s a look at how it’ll affect consumers.
•What does the rule do?
The rule restricts credit card issuers’ ability to charge penalty fees. Issuers, for instance, won’t be able to charge more for late and over-limit fees than the actual amount of the violation. That means if you go over your credit limit by $15, the issuer can only charge you $15, rather than the $39 fee that many do today……
Dubai World is expected to approach lenders for the first time this week with a suggested proposal for restructuring $22bn of its debts, according to people close to the situation.
The conglomerate has called leading -creditors to London for meetings starting as early as today.
Bankers expect the one-on-one meetings to reveal the first details of a formal proposal, which the government has said should be finalised in March…..
Harrah’s Entertainment Inc. said lenders agreed to extend $5.5 billion of maturities to 2015, giving the world’s biggest casino company five years for an economic recovery before it has to make any material repayments.
Harrah’s got unanimous consent to push back repayments on loans that had been packaged and sold as commercial mortgage- backed securities, the Las Vegas-based company said today in a statement. Harrah’s can repurchase the loans, which cover six casinos, at a discount under the amendments……
As the battle over the state budget and the looming multibillion-dollar gap becomes more intense, Mayor Michael R. Bloomberg has stepped up his call for the Legislature to pass a penny-per-ounce tax on soda to stave off major service cuts to education and health care.
During his weekly radio address on Sunday — a day before a symposium on the topic — Mr. Bloomberg noted research suggesting that such a tax would reduce consumption of the sugary drinks, driving down obesity rates and the accompanying medical costs. Yet his main thrust was on finding a quick source of revenue for a city in serious need of one…..
Tags: AIG, Bailouts, Casinos, credit cards, Dubai World, Fed, Greece, Harrah's, Iceland, IMF, Michael Bloomberg, Sovereign debt, Taxes