* Fortis Dutch operations to be nationalized Oct 5, 2008
8 billion euros would strongly reinforce our financial position and allow us to further strengthen the balance sheet and liquidity of Fortis. This story has been viewed 336 times. (Taipei Times, Taiwan -- World)
CIBC gets $1B from vulture Oct 5, 2008
"Looks like a good deal and we are happy they are getting credit back on their balance sheet," said a Canadian private equity executive. These types of deals allow banks to reduce their risk, as opposed to recapitalizing their balance sheet, said Paul Jorissen, the Mayer Brown lawyer in New York who led the external legal team for CIBC. The law firm Schulte Roth acted for Cerberus, which won a competitive bidding round for the mortgage portfolio that included threee other U. S. private equity... (Financial Post)
"Dutch revenge" in bank crisis draws Belgian ire Oct 5, 2008
That followed comments by Bos in the Dutch parliament last week that if he had known everything he now knew about Fortis' balance sheet, he might have taken a different decision. Dutch concern centred on Scaldis, an off-balance-sheet securitisation vehicle set up by Fortis in the Channel Islands in 1999 to enable clients to raise short-term funds quickly and anonymously on top-grade terms, according to Fortis' website. (International Herald Tribune -- Business)
Election roundtable Oct 5, 2008
And I think the response to that is: fine, but we've got, you know, we don't have balance sheet issues but we do have issues around where the economy is going and we need to exercise some prudence so. Doug McArthur: But John, your argument is a bureaucratic defence of what's now being done by the Department of the Bank of Canada and I suppose the Department of Finance. (Globe and Mail)
Dubai lenders Amlak and Tamweel look to combine Oct 5, 2008
They say the combined company would have a balance sheet worth 27 billion dirhams (US$7. 35 billion). (International Herald Tribune -- Sports)
Fact checking Wash. gov's race: Budgets, taxes Oct 5, 2008
The state's balance sheet shows a general fund surplus of about $87 million, with about $440 million in the Rainy Day Fund _ a savings account for emergencies _ through the 2007-2009 budget. So we do have "money in the bank." But for practical purposes, it's already spent. (Longview Daily News, WA)
Citigroup May Have To Walk Away Oct 5, 2008
It faces another $6 billion in third-quarter write-downs and has been trying to work $500 billion of assets off its balance sheet. Wells Fargo is exposed to the California real estate market, but it has a broad branch network throughout the Western half of the U.S. and hasn't suffered the extent of losses its East Coast banking competitors have. (Forbes -- Business)
South Korea's Lee Wants Meeting with China, Japan on U.S. Financial Crisis Oct 4, 2008
The U.S. government is moving rapidly to expand fiscal spending, spurring concern about the deterioration of its balance sheet and a possible plunge in the dollar,'' said , a senior economist at Sumitomo Mitsui Asset Management Co. in Tokyo. Sales of U.S. Treasuries may fuel such fears and fan panicked sales of those securities. (Bloomberg -- Japan)
Birch Mountain moves to recapitalize Balance Sheet Oct 4, 2008
The Company and its financial advisor, RBC Capital Markets, are working with its stakeholders to recapitalize the balance sheet to improve liquidity and continue implementing the business plan. Forward Looking Statements: This news release contains certain forward-looking statements. (PR Newswire)
Although $700 Billion Bail-Out is Only 'First Step' on Long Road to Repair Financial Markets, CornerCap Sees Opportunities for Smart Investors Oct 4, 2008
"While there are still potential land mines out there, a healthy balance sheet and flexible cost structure are keys to helping determine which stocks can weather the storm," Carr said. According to Carr the nation's financial system cracked due to two issues: too much debt and falling housing prices. (PR Newswire)
Westaim enters into reorganization agreement valuing Westaim at $0.60 per share Oct 4, 2008
The combined company will have a healthy balance sheet and business operations with a history of strong profitability enhanced by the future utilization of tax pools available in the new company ... (5) These pro forma balance sheet items have been adjusted to reflect an expected sale of the assets of iFire Technology Ltd. in the fourth quarter of 2008. (PR Newswire)
Wells bids $15 billion for Wachovia Oct 4, 2008
These are big numbers for Wells Fargo, whose net worth as a company as measured by balance sheet shareholders' equity, was about $48 billion at the end of June. Citigroup was just bidding for Wachovia's banking assets, but Wells Fargo is also buying brokerage Wachovia Securities and asset manager Evergreen as part of this deal. (India Times)
General Growth stock jumps after dividend, CFO news Oct 4, 2008
Freibaum bore responsibility for most of the margin-induced selling over the past month, as well as a balance sheet strategy that relied heavily on the now shuttered (commercial mortgage-backed securities market), FBR Capital Markets analyst Paul Morgan writes in a report. For these reasons, we believe the change was necessary, but with over $4 (billion) in debt maturities over the next year and another $13 (billion) in 2010-2011, it is a perilous situation in which to face a management... (Crain's Chicago Business)
Even stalwart Northern Trust buffeted by financial gales Oct 4, 2008
If so, Northerns balance sheet easily could absorb another hit like the one it just decided to take. The bank could handle at least $1. (Crain's Chicago Business)
Economic Stabilization act full text (New version) Oct 4, 2008
(b) Disclosure- For each type of financial institutions that sells troubled assets to the Secretary under this Act, the Secretary shall determine whether the public disclosure required for such financial institutions with respect to off-balance sheet transactions, derivatives instruments, contingent liabilities, and similar sources of potential exposure is adequate to provide to the public sufficient information as to the true financial position of the institutions ... (1) the effects of such... (Gillette News-Record, WY)
Report: ImClone's secret suitor is Eli Lilly Oct 4, 2008
Last week, Lilly CEO John Lechleiter said during a speech that his company wants to expand the company's biotech portfolio so Lilly can tailor medicines to better treat disease variations or patient groups, adding that Lilly has a strong balance sheet and people should expect Lilly to "put our financial strength to work.". "We're constantly on the look-out to in-license promising molecules or even to make acquisitions that help Lilly move into new or complementary therapeutic areas," he said. (Yahoo News -- Pharmaceutical Industry News)
Reasons behind US House's approval of bailout plan 4 days after ... Oct 4, 2008
Another big change came from the Securities and Exchange Commission (SEC), which decided to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market ... The Bush administration hopes that the rescue plan, designed to address the root problem of the financial crisis -- bad debt on the balance sheet of financial institutions -- will help achieve the goal. (Xinhua)
Cerberus makes $1-billion bet on CIBC securities Oct 4, 2008
9-billion (Canadian) equity injection this year to strengthen its balance sheet. Since Mr. McCaughey realized the extent of CIBC's subprime problem last year, he has taken actions ranging from handing over the bulk of its U.S. investment banking operations to Oppenheimer Holdings Inc. to cutting its asset-backed commercial paper program in half. (ReportonBusiness.com)
Profs Offer Up Their Own Housing Rescue Bill Oct 4, 2008
Recapitalize the banking industry by moving mortgages off bank balance sheet to the government s books. Restore confidence of new home buyers and benefit the existing housing industry. (Realtor Magazine Online)
Strait-laced Germans don't want to pay the bill for banking follies Oct 4, 2008
On the one hand, they can never be sure whether another nasty surprise will pop up on another German bank's balance sheet ... There is nowhere to hide and the definition of a "healthy balance sheet" keeps changing. (International Herald Tribune -- Business)
Daimler CEO: We're Comfortable Oct 4, 2008
We didn t have to go to the market for almost twelve months because of , and we have a strong balance sheet altogether. How long are the credit markets going to beset by a lack of trust. (Forbes)
> Editor's Notebook: Dont vote for Wachovia buyout Oct 4, 2008
If Wachovia is able to unload most of its toxic assets to the feds, does it not suddenly have a cleaner balance sheet ... So, even if Wells Fargo incorporates Wachovia s toxic assets into its balance sheet, once the bailout bill passes, the bank would be able to dump them on the taxpayers. (Raleigh Triangle Business Journal, NC)
Public Information Notice: IMF Executive Board Concludes 2008 Article IV Consultation with Portugal Oct 4, 2008
While some corporate balance sheet restructuring has occurred, still-high enterprise debt levels and tighter credit conditions may restrain the rebound in investment. Some continued fiscal consolidation and structural reforms are projected to prompt a gradual recovery in competitiveness and productivity. (IMF News)
Letters to the Editor Oct 4, 2008
However, we, the investing public, will be asked to accept the balance sheet of the banks based on a fictitious valuation of their assets. Marvin Margolin Chagrin Falls, Ohio. (Yahoo News)
Investments pour into solar energy, but the sector is scary Oct 4, 2008
The key to stock-picking in the current environment, said Hanna, is finding companies with "sustainable competitive advantages" as evidenced by a backlog of sales contracts, declining input costs, technology platforms that are scalable and cash on balance sheet. Find companies with that profile and settle in for what could be a "tremendous long growth trajectory," Hanna said. (International Herald Tribune -- Money Report)
Wells Fargo goes for Wachovia Oct 4, 2008
For Citigroup, a deal with Wachovia represents a prime opportunity to gain new deposits and bolster its balance sheet. Citigroup "could have really used those deposits," said analyst Warren. (Pocatello Idaho State Journal, ID)
Sasol in need of R3.8bn? Oct 4, 2008
"The money will come from our internal treasury. We are fortunate to be a strong cash flow generator and have a strong balance sheet," said Davies. The fine will impact on the company's operating profit line but was not expected to have any impact on the company's expansion plans. (iAfrica.com)
Cash-rich engineering firms relish greater opportunities in year ahead, but contractors face challenges Oct 4, 2008
35bn in cash on its balance sheet, has called acquisitions its number one priority despite not doing a deal since 2004 ... Granite Construction, a heavy civil contractor that also has a construction materials division, is less vulnerable than other contractors because of its strong balance sheet, secure lines of credit and culture of rugged independence, both bankers said. (FT.com -- Markets)
Embattled lender Fortis temporarily 'nationalised' by Dutch government Oct 4, 2008
In recent weeks, the weight of the ABN deal on Fortis's balance sheet had undermined confidence in the bank, sending its shares down and threatening a run on deposits. Fortis had agreed to sell the ABN business as part of the previously announced bailout by the Benelux governments. (Independent)
Business big shot: David Greer of Regal Petroleum Oct 4, 2008
As well as its balance sheet, he is also keen to clean up Regal's image, telling The Times recently: The best legacy for me would be to transform this ragdoll of the City press into a respectable, mid-tier oil and gas company on the main market. Have your say. (Times Online)
Hensarling and Pence on the Bailout Battle Oct 4, 2008
And because of the principled stand taken by House Republicans last Monday, the bank deposits of Americans are safer and the balance sheet of their local bank is more secure. Americans will see their bank deposit insurance rise from $100,000 to $250,000, and banks will now be able to value assets much closer to fair market value, increasing their capital and their ability to make credit available to working families, small businesses and family farms. (Human Events Online)
ABC Learning Centre founders Eddy and Le Neve Groves depart Oct 4, 2008
In 2006 Citigroup questioned whether an "arm's-length arrangement" with a company called ABC Acquisitions was to enable a childcare licence "to be categorised as an asset in ABC's balance sheet". While then based at the same address as ABC Learning Centres, ABC Acquisitions was regarded as a separate entity to the ABC group. (Melbourne Herald Sun)
BankWest adds $3.3bn to internal securitisation Oct 4, 2008
The securities are not intended to be sold to investors and are expected to remain on the balance sheet unless an emergency arises. No Australian institutions, including BankWest, have exchanged them with the Reserve Bank of Australia. (Business Spectator)
Iceland pays price for rapid economic growth Oct 4, 2008
A major concern is that some of Iceland's banking system liabilities will migrate on to the government's balance sheet. Part of problem is that Iceland's tiny size has led to a high level of cross ownership of assets between banks and companies, which creates a house of cards scenario. (San Diego Union-Tribune -- Business)
Analysts: Market to remain in downtrend Oct 4, 2008
Smaller players with strong earnings growth, good liquidity and a healthy balance sheet could become acquisition targets, it added. OSK Investment Bank, in advising investors against serious bottom fishing now, warned that things would get worse before they got better. (The Star Online, Malaysia -- Business)
> Fitch calls Wells-Wachovia deal better for bondholders Oct 4, 2008
The Wells transaction creates the nation s third coast-to-coast bank, more than doubling Wells Fargo s balance sheet and branch network. Fitch affirmed Wells Fargo s issuer default rating of AA.. (San Jose Business Journal, CA)
Toyota Joins The Discount Fray Oct 4, 2008
Unlike the domestic Big Three, Toyota at least has the balance sheet to absorb a clearance sale with little trouble. The company made $17 billion during its latest fiscal year, which ended March 30, and sits on over $17 billion in cash. (Forbes -- Business)
M&A grinds to a halt until the dust settles Oct 4, 2008
It all adds up to increasingly conservative company directors focusing on shoring up balance sheets rather than committing capital to fresh ventures ... "And (the problem) is: what do we do with our balance sheet, who is going to do our 2009 refinancing, where are we getting the cash from?" ... A large proportion of recently announced share issues have been made by companies looking to shore up balance sheets, such as forestry firm Gunns and paper manufacturer Paperlinx. (The Australian, Australia)
'ICICI has never squandered capital' Oct 3, 2008
After that our balance sheet has grown by around 10% or so. So are in a situation where we have doubled our capital, but kept balance sheet growth to a very manageable 10% or so. (India Times, India)
Govt, regulators review readiness to deal with global financial crisis Oct 3, 2008
MTM is a notional loss but it would be reflected in the balance sheet. Besides, some state-owned banks have exposure in the instruments of these troubled US fina 00004000 ncial institutions to the tune of Rs 234 crore. (India Times, India -- Intl Business)
The Big Three Oct 3, 2008
Their combined balance sheets control nearly $8 trillion in assets, and their banking operations oversee roughly 30 cents of every deposit dollar in America ... Bank of America bought Countrywide Financial Inc., too early and for too much in retrospect, then agreed to spend big for Wall Street giant Merrill, which brings its own balance sheet of nearly $1 trillion of assets. (Boston Globe)
UBS expects profitable quarter after paring mortgage holdings Oct 3, 2008
UBS, which set a target of cutting the investment bank's balance sheet to $1. 54 trillion by year-end, reached that goal ahead of schedule and plans to bring assets down more, said Kurer. (Boston Globe)
The cost of 'no government' Oct 3, 2008
Since that's not now going to happen any time soon, if at all, the Fed will have to pull back, if only to reassure the currently hair-trigger twitchy world markets as to the continued viability of its balance sheet. There's not a lot of reasons to believe things will get much better soon; absent more huge stock market declines, and/or a credit seize-up that puts hundreds of thousands out of work before election day on November 4, it does not now look like this issue will be revisited in a... (Asia Times Online)
Crisis control fitfor the TV age Oct 3, 2008
Accounting and investor groups hate this idea; how can you know what a bank is worth if its balance sheet is full of lies ... Wringing the neck of confidence The problem here is that, in a financial crisis that has at its heart a loss of confidence in the financial system, why would you want to even further drain confidence by putting in question the actual truthfulness of bank balance sheets. (Asia Times Online)
Stay in Touch Oct 3, 2008
Welcome to Sydney Morning Herald Online. Posted by SMH Online in at. (Sydney Morning Herald -- Opinion)
Pervasive ups quarterly guidance on higher performance Oct 3, 2008
We executed well during the quarter in both of our core product lines, database and integration, and we continue to enjoy profitable operations, positive cash flow and a strong balance sheet, says John Farr, president and CEO of Pervasive. Our decision to update guidance today is in part motivated by the positive results expected for the September quarter, and also by our desire to put our strong balance sheet to work. (Austin Business Journal, TX)
Northern Rock cuts savings deals Oct 3, 2008
5m, a balance sheet total of not more than 3. 26m and a total number of employees of not more than 50. (BBC News -- UK)
Will bank bailout revive growth? Oct 3, 2008
"But it will be easier to do it if they can get the bad loans off the balance sheet.". Some economists now expect the economic slowdown to continue into 2009. (Christian Science Monitor -- USA)
Atmel's In Play Oct 3, 2008
6 billion in cash on its balance sheet, which means there shouldn t be any stumbling blocks to completing the transaction. The letter said that Atmel had met with Sanghi last month to discuss the potential acquisition. (Forbes -- Markets)
UBS Crafts A TARP Of Its Own Oct 3, 2008
it announced that it would be abandoning its "universal bank" model, slashing the balance sheet of its securities division, and slicing itself into three divisions to curb the outflow of money from its core business in Switzerland. Its not the end of troubles for UBS of course. (Forbes -- Markets)
Not Everyone Is Getting Credit-Crunched Oct 3, 2008
IBM (nyse: - - ) may have a massive balance sheet with a market capital of $191. 4 billion but it has its cash situation covered. (Forbes -- Markets)
BULLISH TIMES FOR BUFFETT Oct 3, 2008
"He invested in Goldman Sachs because they had already cleaned up their balance sheet. He had passed on Bear Stearns and a lot of the other banks. His one job is to protect his investors and he judged that Goldman is a safe investment.". But don't look for Buffett to head to Washington to protect the rest of us. (New York Post -- Opinions)
Economic Stabilization act full text Oct 3, 2008
spect to off-balance sheet transactions, derivatives instru6 ... 20 a financial institutions balance sheet. (Gillette News-Record, WY)
Newsweek: Despite bailout, U.S. rules the markets Oct 3, 2008
"Home prices are continuing to fall. The credit markets are stressed. This is a multi-trillion-dollar problem. It's beyond the Fed's balance sheet to handle it.". With a track record like that, I figured it would be worth another chat with Rogoff. (MSNBC -- Politics)
UBS bank turns corner, predicting profits for quarter... Oct 3, 2008
"Risk positions on our balance sheet have been written down, closed out or sold. Headcount and operating costs are in the process of being reduced," Kurer said. The bank has also embarked on a programme to reposition itself and take remedial measures following the crisis, including the way it apportions risks. (The Drudge Report)
Davis trial recanting proves nothing solid Oct 3, 2008
The insurance option opens the lender to keep certain mortgages that will undoubtedly liquefy and produce profits in the near term while the, cow patty with a marshmallow on top, loans will be dropped onto the governments balance sheet. First would you concur with my thesis based on yesterdays failed bill, and second if said thesis were plausible how would you modify the bill to prevent the escalating malfeasance. (Atlanta Journal-Constitution -- Opinion)
* UBS forecasts profit in the third quarter after write-downs Oct 3, 2008
UBS, at all times, wants to maintain a strong capital base, adequate liquidity and a reduced, solid balance sheet, the UBS statement said. This story has been viewed 293 times. (Taipei Times, Taiwan -- World)
Report: ImClone's secret suitor is Eli Lilly Oct 3, 2008
Last week, Lilly CEO John Lechleiter said during a speech that his company wants to expand the company's biotech portfolio so Lilly can tailor medicines to better treat disease variations or patient groups, adding that Lilly has a strong balance sheet and people should expect Lilly to "put our financial strength to work.". "We're constantly on the look-out to in-license promising molecules or even to make acquisitions that help Lilly move into new or complementary therapeutic areas," he said. (Yahoo News -- Pharmaceutical Industry News)
Few signs of financial alarm in Houston Oct 3, 2008
When we lever our balance sheet to extend a loan, we expect that to lead to a full relationship with the customer, says Angle, who oversees Regions Bank operations in Houston, Austin and the Dallas-Fort Worth area ... Speculation has risen that even Regions Financial, a highly prized commodity with a solid balance sheet and sustained profits, could be targeted by the likes of Wells Fargo & Co.. (Houston Business Journal, TX)
What I am learning in the election Oct 3, 2008
In 1968, to remove the activity of Fannie Mae from the annual balance sheet of the federal budget, it was converted into a private corporation. 6] Fannie Mae ceased to be the guarantor of government-issued mortgages, and that responsibility was transferred to the new Government National Mortgage Association (Ginnie Mae). (Waterloo-Cedar Falls Courier)
Hai-O's earnings fast-expanding, dividend yield likely to be 12% Oct 3, 2008
The strong balance sheet would also help the company weather tough times, especially when the cost of business had increased due to inflationary pressures and a tighter credit market, analysts said. In the past four consecutive financial years, its earnings have been growing at double and triple digits, buoyed by the MLM business, which has seen an increase in sales and distributorship. (The Star Online, Malaysia)
Buffett's bet on GE: Almost as good as a bailout Oct 3, 2008
Last Thursday, Jeffrey Immelt, GE's chief executive, called those steps "tough decisions to further reduce risk and strengthen our balance sheet.". After a few days, however, those steps did not seem to go far enough. (International Herald Tribune -- Business)
Analyst: Microsoft's SearchPerks smacks of desparation Oct 3, 2008
"Though organic efforts to ramp up Microsoft's online business are not enough, we like the shares especially given its market-dominating software franchise, strong balance sheet, and $40 billion (stock) buy-back program," he wrote. Topics. (CNET News)
NuVista Energy Ltd. Announces Increase in 2008 Capital Budget Oct 3, 2008
With strong commodity prices in the first half of 2008, NuVista has significantly reduced its debt levels related to the business combination with Rider Resources Ltd. ("Rider") and has the financial flexibility to increase its capital spending while maintaining a strong balance sheet. The majority of the projected increase in capital expenditures will be directed toward adding to NuVista's significant landholdings in our Wapiti core area. (CCNMatthews Press Releases)
Costco and Sams Club Oct 3, 2008
The balance sheet for PCI on June 30 showed total current liabilities of $3 ... The witness told federal investigators that actual accounts receivable are substantially less than the number on the balance sheet. (Twin Cities Business Journal, MN)
