Retirement Plans Lose $2 Trillion; eBay Sells Out Workforce; Eli Settles Marketing Dispute; Morgan Stanley Gets OK on Capital Infusion; IMF Says Rough Economic Times Ahead; Wachovia Split?
- American retirement plans have lost as much as $2 trillion, or 20% of their value, in the past 15 months, Peter Orszag, head of the Congressional Budget Office estimated yesterday (Tuesday). "Some people will delay their retirement. In particular, those on the verge of retirement may decide they can no longer afford to retire and will continue working," Orszag said.
- EBay Inc. (EBAY) said yesterday (Tuesday) that it will cut 10% of its work force and spend $1.3 billion to buy online payment and classified companies, in an effort to offset a slowdown in its web auctions business. The reduction is expected to incur restructuring charges of about $70 million to $80 million, but then save $150 million annually.
- Eli Lilly & Co. (LLY) yesterday (Tuesday) announced it will pay $62 million to 32 states and Washington D.C. , The Associated Press reported. Lilly was accused of marketing its top-selling drug Zyprexa for off-label uses and inadequately disclosing the drug's side effects to health care providers.
- Morgan Stanley (MS) and Japan’s Mitsubishi UFJ Financial Group Inc. (ADR: MTU) have received regulatory approval for the Tokyo-based bank’s $9 billion investment in the Wall Street firm. The U.S. Federal Reserve and other global regulators approved the deal, MarketWatch reported. Morgan Stanley also received antitrust approval from the U.S. government.
- The International Monetary Fund (IMF) predicted a worldwide economic slowdown in a report prepared for a Group of Seven meeting. “The global economy is entering a major downturn,” the IMF said in the report, dated Oct. 4 and obtained by Bloomberg News. “Many advanced economies are now close to recession, while emerging economies are also slowing rapidly.”
- Wells Fargo & Co. (WFC) will likely buy the bulk of Wachovia Corp. (WB) deposits, Reuters reported, citing an unnamed source. Citigroup Inc. (C) is expected to get 20% – 25% of Wachovia’s total deposits, with the remainder going to Wells Fargo, the news service reported, but cautioned that talks are ongoing and no deal has been finalized.