Dec. 2, 2010 at 5:57 a.m.
Filed under:
Investing
By Dow Jones Newswires-Wall Street Journal
Hedge funds and investors whose bearish trades on housing helped them profit amid the credit crisis were among those that benefited from a U.S. government emergency rescue program to kick-start lending, according to Federal Reserve data released Wednesday.
That program, known as the Term Asset-Backed Securities Lending Facility, or TALF, and established during the financial crisis, provided low-cost loans from the Federal Reserve to investors buying bonds backed by student, auto and commercial-property loans and other assets. The program, which lasted from March 2009 until June 2010, was aimed at helping banks move loans off their books by repackaging them into bonds and selling them.
Funds managed or backed by Evanston-based Magnetar Capital, Tricadia Capital and FrontPoint Partners, which made large profits betting on a downturn in the U.S. housing market before the crisis, were among those who obtained low-cost loans from the Fed to buy securities, according to the Fed data. Get the full story »
Dec. 2, 2010 at 5:43 a.m.
Filed under:
Education
From the Chicago Sun-Times | Replogle Globes Inc., a company that has made globes since 1930, has been sold to Indianapolis-based Herff Jones and will close operations in Broadview, laying off most of its 84 employees.Get the full story>>
Dec. 2, 2010 at 5:30 a.m.
Filed under:
Reports: Weekly jobless claims, 7:30 a.m.; Pending home sales index for October, 9 a.m.; Freddie Mac releases weekly mortgage rates; Retailers release sales data for November.
Major earnings: Kroger Co., Toll Bros. Inc.
Dec. 1, 2010 at 5:44 p.m.
Filed under:
Exchanges,
Investing,
Stock activity
By Reuters
Nasdaq OMX Group’s two option trading venues together handled more volume than rival markets for the third straight month, figures from the Options Clearing Corp. showed on Wednesday. Get the full story »
Dec. 1, 2010 at 5:36 p.m.
Filed under:
Bank failures,
Banking,
Insurance,
Policy,
Politics
By Reuters
Goldman Sachs CEO Lloyd Blankfein testifies before a Senate investigative committee on Capitol Hill, April 27, 2010. (Jim Watson/AFP/Getty Images)
Goldman Sachs, Citigroup and other big U.S. banks repeatedly sought help from the Federal Reserve during the financial crisis, according to data on Wednesday that showed just how precarious their situation was at the time.
Many of the firms now boasting solid profits had to rely on funding from the U.S. central bank, which essentially acted as the glue holding the financial system together in the tumultuous months that followed the bankruptcy of Lehman Brothers in September 2008.
Citigroup, Morgan Stanley and Merrill Lynch, now part of Bank of America, were the three biggest recipients of the Fed’s key emergency lending programs, according to a Reuters analysis of Fed data. Goldman Sachs was sixth on the list, contradicting claims from its top executives that the firm always had plenty of cash on hand. Get the full story »
By Reuters
U.S. banks will have to make “significant investments” to clean up foreclosure practices and some lenders potentially face strong pressure from investors to buy back faulty mortgages, a top Federal Reserve official said Wednesday. Get the full story »
Dec. 1, 2010 at 5:16 p.m.
Filed under:
Beverages,
Food,
Packaged foods,
Restaurants
By Associated Press
Starbucks provided only limited updates Wednesday on its dispute with Kraft Foods Inc., but did say it has been dissatisfied with Kraft for a while and claimed Kraft has failed to effectively work with Starbucks or promote its products.
The two companies entered arbitration after Starbucks announced it wanted to end a 12-year agreement under which Kraft distributes and promotes packaged Starbucks coffee in stores.
Kraft has said the agreement has been mutually beneficial and that it has helped deliver major gains for Starbucks. A Kraft spokesman said Wednesday that the companies’ dispute centers on how Starbucks will take over Kraft’s responsibilities and end the contract. Get the full story »
Dec. 1, 2010 at 4:59 p.m.
Filed under:
Economy,
Policy,
Politics
By Reuters
The European debt crisis should serve as a warning that the United States must address its long-term budget problems, U.S. Federal Reserve officials said on Wednesday. Get the full story »
Dec. 1, 2010 at 4:21 p.m.
Filed under:
Exchanges
By Reuters
The futures regulator will miss a mid-January deadline to finalize its long-awaited plan to limit speculative positions held by commodity traders, an agency official said on Wednesday.
“At this point we’re not going to make the deadline,” Jill Sommers, a commissioner at the Commodity Futures Trading Commission, told Reuters. “I don’t see how we make the January deadline.”
Once the CFTC introduces the rule it is required to open it to public comment for at least 30 days, review those comments, determine any revisions, then finalize it. Get the full story »
Dec. 1, 2010 at 4:19 p.m.
Filed under:
Economy,
Government,
Updated
By Reuters
Debt Commission co-chairmen Erskine Bowles, right, and former Wyoming Sen. Alan Simpson at a news conference on Capitol Hill on Tuesday. (AP Photo/Alex Brandon)
A presidential commission trying to balance the budget on Wednesday softened a proposed tax overhaul to win broader support for its bold plan to slash the $1.3 trillion federal deficit.
The plan faced an uphill struggle to win sufficient backing to trigger a congressional vote. Even if that happens, analysts predict Congress won’t take substantive steps to reduce the deficit this year.
Changes made to the plan included dropping a proposal to kill the popular mortgage interest tax deduction, as had been recommended on November 10. The revised version proposed a limited, 12 percent mortgage interest tax credit. Get the full story »
Dec. 1, 2010 at 4:02 p.m.
Filed under:
Health care,
Pharmaceuticals
By Associated Press
A panel of federal health experts unanimously rejected the use of Merck’s Proscar to prevent prostate cancer, saying the drug could actually raise the risk of the most serious types of tumors. Get the full story »
Dec. 1, 2010 at 3:13 p.m.
Filed under:
Exchanges,
Stock activity
By Associated Press
Shares of market exchange operator CME Group Inc. rose Wednesday after an analyst upgraded them from “hold” to “buy.” Get the full story »
Dec. 1, 2010 at 2:58 p.m.
Filed under:
Policy,
Politics
By Reuters
The House of Representatives on Wednesday voted to avert a federal government shutdown by extending temporary funding for another two weeks, giving Democrats time to craft a more lasting solution. Get the full story »
Dec. 1, 2010 at 2:51 p.m.
Filed under:
Banking,
Litigation
By Associated Press
Fifth Third Bank has agreed to pay $9.5 million in a proposed settlement with customers who claimed they were improperly charged overdraft fees for insufficient funds on debit card purchases and ATM withdrawals.
The class-action lawsuit filed Nov. 21, 2009 in U.S. District Court in northern Illinois alleges that Fifth Third changed the sequence of transactions to deplete customers’ accounts more quickly and boost the number of overdraft charges. Get the full story »
Dec. 1, 2010 at 2:40 p.m.
Filed under:
Airlines,
Airplanes
By Reuters
Southwest Airlines Co said its pilots approved changes to their labor agreement allowing the addition of a bigger-capacity Boeing Co 737 plane that will enable the carrier to transport more passengers as it expands.
The traditional low-fare airline, which is planning to buy rival AirTran Holdings Inc to bolster its presence in U.S. East Coast cities, said it would now move to finalize talks with Boeing on substitutions of 737-800 models for 737-700s. It added it expects delivery of its first 737-800 in the first quarter of 2012. Get the full story »
