Overnight deposits at ECB total 162.1 bln euros
Jan 4, 2010 Make Money Online
The European Central Bank reported the following daily data on liquidity provision, in millions of euros:
TODAY PREV DAY Use of overnight loan facility 1,290 44 Use of overnight deposit facility 162,117 162,774 Total covered bond purchases 28,812 28,620 (Reporting by Frankfurt newsroom)
–Reuters–
Tags: Deposit, ECB, European Central Bank, loan
Citigroup says new rules may hit securitization
Nov 7, 2009 Make Money Online
Citigroup Inc (C.N) said on Friday that new accounting rules for securitization trusts may prevent the bank from funding some of its assets with a top debt rating.
The rules could lift Citigroup’s borrowing costs, which have already risen since 2007 amid the financial crisis.
Citigroup packages billions of dollars of assets into bonds and sells them to investors every year. It uses funding vehicles to do so.
These vehicles were often not included in the company’s main balance sheet, but new accounting rules will force them to be consolidated with the rest of Citigroup’s assets and liabilities. The result should be an addition of about $154 billion to Citigroup’s assets, based on Sept. 30 figures, the bank said on Friday.
If the Federal Deposit Insurance Corp does not change the rules regarding how it treats debt from these vehicles when a bank collapses, rating agencies may downgrade the vehicles’ debt. And the vehicles may not be able to issue the top-rated triple-A securities they tend to rely on, Citigroup said in its quarterly filing with regulators on Friday.
In fact, new debt could potentially be rated no higher than Citigroup’s ratings, the bank said. That would likely lift the bank’s borrowing costs when funding, for example, new credit card loans. (Reporting by Dan Wilchins; editing by Andre Grenon)
Tags: bank, C.N, Citigroup, Citigroup Inc, Credit Card, debt, Federal Deposit Insurance Corp, funding, insurance, loan
China start-up IPOs set high prices, stir worries
Sep 24, 2009 Make Money Online
By Samuel Shen and Edmund Klamann
The first 10 firms due to list on China’s Nasdaq-style second board, ChiNext, plan to sell shares at prices 50 percent above their mainboard peers, just as worries over speculation spurred officials to tighten trading rules.
After gauging investor demand, the 10 start-up companies, including software developer Beijing Ultrapower and outdoor sportswear maker Toread, have decided on prices for their shares that average 55 times their 2008 earnings.
That compares with an average price/earnings ratio of 36 for other initial public share offerings this year on the mainland.
“Growth potential, rather than past performance, is what investors are looking at, so a high PE ratio doesn’t necessarily mean they’re over-priced,” said Jiang Jianrong, analyst at Shenyin & Wanguo Securities Co.
“But without doubt it will be quite a speculative market at the beginning because it’s new and the companies are very small.” Read the rest of this entry »
Tags: casino, INTC.O, IPO, loan, MSFT.O, price/earning ratio, Stock Exchange, Stock Market
Unpaid bills mount for top Chrysler executive
Sep 19, 2009 Make Money Online
By David Bailey
One of the best-known auto industry executives in the world has fallen on hard times.
Jim Press, who briefly ran Toyota Motor Corp.’s U.S. operations and spent 37 years with the Japanese automaker before joining Chrysler as one of its three top executives in 2007, is facing claims of more than $1.35 million for unpaid federal taxes and a personal loan.
The 62-year-old auto executive, who told the New York Times last year he wore a single string on one wrist as a reminder that material wealth is not the most important thing, may be one of the highest profile victims of Detroit’s collapse.
Press blamed the elimination of bonuses at Chrysler for his failure to pay back the personal loan.
Chrysler went into a U.S. government-financed bankruptcy earlier this year in a deal that gave management control to Italy’s Fiat SpA.
The distressed state of the Detroit area housing market, which has been hit hard by the U.S. housing bust and the auto industry’s troubles, may be adding to his problems.
Press, known to be an avid swimmer, and his wife, Suwichada Busamrong Press, purchased a multimillion-dollar, 6,900-square-foot luxury home in the Detroit suburb of Birmingham in June 2008, taking out a $2.2 million mortgage with ING Bank, records show. Read the rest of this entry »
Tags: bankrupty, home owner, ING Bank, loan, luxury home, personal loan, Taxes, unpaid, Western Federal Credit Union
Russia Sberbank to sell unpaid loan assets in 2-3yrs
Sep 19, 2009 Make Money Online
OCHI, Russia, Sept 19 (Reuters) – Russia’s largest lender Sberbank (SBER03.MM) hopes to sell the assets it has acquired through unpaid loans during the crisis within 3 years, cheif executive German Gref said on Saturday.
“In the next 2-3 years we hope we will sell these assets,” Gref told reporters on the sidelines of an economic forum in the Black Sea resort of Sochi.
“Some of the assets we will sell immediately, and some will need certain restructuring and the injection of additional financing,” the head of state-controlled bank added. (Reporting by Dmitry Sergeyev; Writing by Toni Vorobyova)
For stocks, no beach reading in jobs data
Aug 28, 2009 Make Money Online
By Caroline Valetkevitch
NEW YORK (Reuters) – The last week of summer could prove to be anything but relaxing for stock investors worried about the economy, with the crucial August jobs report on the agenda.
Stocks eked out a second week of gains by Friday’s close. The week’s economic data, including a report showing new home sales rising at their fastest pace in almost a year, helped to keep indexes in positive territory.
But employment has been among the weakest parts of the U.S. economy, keeping investors on edge about the sustainability of an economic recovery.
“We’ve been on a sugar high right now and sooner or later, the market will run out of candy. And this is what’s going to happen on Friday” with the jobs data, said Michael Kane, chief executive officer of Hedgeable, an online portfolio management service, in New York.
Read the rest of this entry »
Tags: AIG, AIG's stock, economic, index, insurance, insurer, Job, lender, loan, Mortgage, Stock, Stock Market, Trading
FDIC problem bank list hits 416, but recovery eyed
Aug 27, 2009 Make Money Online
By Karey Wutkowski and Steve Eder
WASHINGTON (Reuters) – Problem U.S. banks and thrifts on an official watchlist rose more than a third to 416 in the second quarter of 2009, as bad loans continued to bite, but regulators saw signs of stabilization in the industry.
The Federal Deposit Insurance Corp said on Thursday that the industry swung back to a $3.7 billion loss in the second quarter, after reporting a $7.6 billion profit in the first quarter, primarily due to costs associated with rising levels of bad loans and falling asset values.
“Banking industry performance is — as always — a lagging indicator,” FDIC Chairman Sheila Bair said.
She said the source of the banking industry’s problems had migrated from residential loans and complex mortgage-related assets to more conventional types of retail and commercial loans that have been hit hard by the recession.
But Bair pointed to a smaller quarterly increase in troubled loans and decreases in the volume of some delinquent loan categories, as a possible turning point in the quality of assets that have weighed heavily on banks’ balance sheets.
“While challenges remain, evidence is building that the U.S. economy is starting to grow again,” Bair said. Read the rest of this entry »
Tags: Commercial Loan, debt, FDIC, Federal Deposit Insurance Corp, Industry, insurance, loan, Stock Market, US Bank
RLPC-Banks join ACS’s 1.5 bln euro forward start loan
Jul 15, 2009 Make Money Online
The 1.5 billion euro forward start loan extension for Spanish construction and energy firm ACS (ACS.MC) is gathering commitments before an end-July deadline, three bankers close to the deal said on Tuesday.
Calyon and Natixis joined on launch as co-ordinators and a third bank has also committed to the deal, two of the bankers said.
Under a forward start agreement lenders typically extend the maturity of all or part of the loan before its expiry date in exchange for an increase in interest margin and fees.
Read the rest of this entry »
Best way to find a home loan
Jun 30, 2009 Make Money Online
Mortgage shopping has never been more confusing. The secret is knowing whom to talk to, and when.
When the easy money was flowing, you could get a great deal on a mortgage from just about anyone. But in today’s credit-challenged world, all the avenues for finding a mortgage come with their own set of problems.
Many banks have tightened lending standards and scaled back offerings. Some banks are no longer working with mortgage brokers, who are under fire for pushing bad loans during the boom.
And while online lending sites hold the promise of one-stop shopping, some have developed a reputation for playing bait-and-switch on rates and not fully disclosing fees.
All this adds up to a major shopping hassle. If you want to get the best rate, you’ll need to tap at least two of the sources below.
Read the rest of this entry »
Tags: bank, Bankrate, best deal, Home Loan, housing stock, income, lend, loan, Mortgage, mortgage broker, Novice loan, Stock Market
Rent-to-own your home: Pro and con
Jun 30, 2009 Make Money Online
It’s tough for buyers to find financing and hard for sellers to find buyers. A solution that can work well for both is renting with an option to buy.
With buyers scarce and financing tight, some home sellers are offering rent-to-buy options to potential buyers. In fact, there’s been enough of a spike in interest that ForSaleByOwner.com added it as a search option on the site, says spokesman Eric Mangan.
These deals, also called rent-to-own and lease-option, usually require buyers to pay extra rents each month plus up-front fees of about 5% of the purchase price. The regular rent then goes in owner’s pocket (presumably to pay the mortgage), but the additional payments are used to buy down the price of the home.
“Lease option agreements, if properly drafted, by and large are an effective way of enabling people to buy who are having trouble arranging financing or coming up with down payments,” said Lawrence Jacobson, a real estate attorney in Los Angeles.
The Advantages
Because the contract is typically written to close in 12 to 36 months, it gives buyers the chance to experience homes and neighborhoods without having to make major commitments.
But the biggest reasons buyers opt for rent-to-buy deals are to build up down payments and to improve their credit profiles so obtaining a mortgage is easier.
For example, if they buy a $200,000 home, paying $5,000 up-front and a rent premium of $400 a month on top of their $1,000 market rent, they’ll have $9,800 saved after one year and $19,400 after three.
Read the rest of this entry »
Tags: bank, Financial, Foreclosure, investment, loan, Mortgage, payment, Real Estate, Rent, Stock Market
