Archive for November, 2009
Editorial: Smaller Banks Like Prosperity Bancshares (NASDAQ:PRSP) and MB Financial (NASDAQ:MBFI) Growing As They Buy Up Failed Rivals or Grow Organically
In what I consider a testimony to the strength of capitalism left alone, smaller banks around the country like Prosperity Bancshares (NASDAQ:PRSP) and MB Financial (NASDAQ:MBFI) are doing what should have been done in the first place: buying up failed rivals and turning them around, or growing organically as consumers look for stronger banks. If [...]
Congressional Oversight Panel Challenges Treasury Dept to Release Details of Citibank (NYSE: C) Bailout
The Congressional Oversight Panel released a report saying that the U.S. treasury should provide regular reports about losses from the $301 billion worth of assets that the federal government agreed to guarantee for Citibank (NYSE: C) last year in an attempt to prevent the bank’s collapse. In the report, the Congressional Oversight Panel, said such [...]
Citibank’s (NYSE: C) Primerica Financial Services IPO to Be Valued at $1.6 billion, Will Net Citigroup $100 Million
Primerica Financial Services, which is a life insurance business that Citibank (NYSE: C) owns, plans to sell to shares in an initial public offering, which may have a starting valuation of $1.6 billion, according to an analyst at Fox-Pitt. Citibank announced yesterday that it would be taking its life insurance unit, one of the bank’s [...]
Citigroup Inc. (NYSE: C) Set To Spin Off Primerica Unit in IPO
Citigroup Inc. (NYSE: C) filed paperwork with the Securities and Exchange Commission late Thursday to spin off its successful Primerica life insurance unit in an Initial Public Offering (IPO). The IPO is part of a perceived effort by Citigroup to divest of certain operations, as well as streamline and simplify its operations, and could. Citigroup is hoping to raise as much as $100 million through the sale of Primerica.
Attempt to Sell Primerica Highlights Challenge of Restructuring at Citigroup Inc. (NYSE: C)
In a much expected move, the Wall Street Journal reported that Citgroup Inc. (C) released plans to spin off its Primerica Inc. Life-insurance and mutual fund sales unit. The move, which will undoubtedly be cheered by regulators, signals a further dismantling of the once sprawling company. The move was not unexpected. Earlier this year, Citigroup [...]
Former Leading Lawyer for Bank of America (NYSE: BAC) Not Actively Licensed During Merrill Lynch Deal
Although it’s unclear as to what the implications are at this time, the top lawyer from Bank of America (NYSE: BAC), Brian T. Moynihan, wasn’t legally allowed to practice law during the period the Merrill Lynch deal was going down. Moynihan was named the head lawyer for Bank of America in December, he didn’t upgrade [...]
Battle Over Who Will Supervise American Banking System Heating Up
In what seems to be a political move to build up his political capital after being perceived as too friendly with the major banks, Senate Banking Committee Chairman Christopher Dodd (D., Conn.), has been preparing legislation which would dramatically change how the banking system in the U.S. would be supervised. But opposition has already been [...]
Fannie Mae (NYSE: FNM) Posts Third-Quarter Loss, Requests $15 Billion In Aid
Fannie Mae (NYSE: FNM) announced Thursday evening it lost $18.9 billion in the third quarter as the number of delinquent loans it holds continues to surge. The loss is larger than a year ago, when the company was in the red by $14.8 billion. Struggling to keep its net worth above zero all year; with [...]
Bank of America (NYSE: BAC) Officials to Testify at Congressional Hearing
Three Bank of America (NYSE: BAC) officials have been asked to appear before the House Committee on Oversight and Government affairs at a hearing later this month, relating to its purchase of Merril Lynch. The three executives that are being asked to appear include former FleetBoston Financial chief executive Charles Gifford, NStar chief executive Thomas [...]
Citibank (NYSE: C) and Goldman Sachs (NYSE: GS) Receive Swine Flu Vaccine in NYC
Some of New York City’s largest employers, including Goldman Sachs (NYSE: GS) and Citibank (NYSE: C) employees have begun to receive doses of the swine flu vaccine. New York City officials said that doctors for company health services can request the vaccine along with other city doctors. The NYC health officials have also stated that [...]
J.P. Morgan Chase (NYSE: JPM) Coming Soon to a Gym Near You?
In what some are describing as a 21st century, “Morganization”, J.P. Morgan Chase (JPM) is being forced to take ownership in bankrupt companies, including health club Bally Total Fitness Holding Corp., to salvage the value of their original loans. The decision may be a glance at how the banking industry plans to survive the expected [...]
Warren Buffet and Berkshire Hathaway’s (NYSE: BRK.A) Current Investments: USB, WSC, JNJ, COP, KFT, AXP, PG, BNI, WFC and KO)
Warren Buffet has made a reputation for being one of the best investment managers in the world, some even refer to him as the “Oracle of Omaha.” Buffet has consistently beaten the market despite the financial crisis, which is one of the primary reasons that his company, Berkshire Hathaway (NYSE: BRK.A) has consistently posted profits [...]
Bank of America Merrill Lynch (NYSE: BAC) Picks Up Former AIG (NYSE: AIG) Executive
Bank of America’s Merrill Lynch (NYSE: BAC) has appointed former AIG (NYSE: AIG) executive Randall Lynch as the managing director within the Americas industrials investment banking business, according to a recently released statement from the bank. Randal Lynch is New York based and will report directly to John Pratt, who is the managing director and [...]
Mexican Legislature Asks for Legal Ruling on Citibank (NYSE: C) Ownership of Banamex
A group of Mexican senators asked Mexico’s Supreme Court on Wednesday to make a ruling as to whether or not Citibank’s Mexican arm is breaking the law because it’s partially owned by the U.S. government, a Senate spokesperson said. Currently, the U.S. government has a 34-percent stake in Citigroup (NYSE: C), which it had acquired [...]
Editorial: Does the Breakup of British Banks – Royal Bank of Scotland Group (LON:RBS) and Lloyds Banking Group (LON:LLOY) – Miss the Point?
Some have been heralding the breakup of British banks Royal Bank of Scotland Group (LON:RBS) and Lloyds Banking Group (LON:LLOY) as a road-map to deal with the alleged issue of “too big to fail,” in relationship to huge banks in general, and large American banks in particular. The story centers around the British government forcing [...]
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