By Mike CaggesoAssociate Editor Citigroup Inc.'s (C) financial troubles will continue to spread beyond subprime mortgage write-downs and into the bank's consumer divisions, said William Tanona, a Goldman Sachs Group Inc. (GS) analyst, who recommends that clients sell Citigroup shares. Those issues – combined with unsuccessful attempts to find a new chief executive officer, and […]
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Freddie Mac Takes a $2 Billion Hit, Stock Drops Nearly 30%
From Staff Reports Shares of Freddie Mac (FRE) plummeted nearly 30% yesterday (Tuesday) when the company announced a record loss and warned of a possible dividend cut. The company is the nation's second-largest U.S. mortgage company, and yesterday's plunge marks the its biggest decline since Freddie Mac went public in 1988. The meltdown in the […]
Merrill Lynch Fund Moves In To A New Neighborhood
From Staff Reports DLF Ltd., the largest real estate company in India, announced the sale of a minority stake in several of its assets yesterday (Tuesday). According to Bloomberg News, the divestiture brought in $426 million dollars for a total of eight housing projects located throughout India. DLF sold a 49% stake in seven housing […]
'Axis of Unity' Provides Dollar Dissent at OPEC Summit
By Jason Simpkins Associate Editor Iran and Venezuela reignited debate over the U.S. dollar at an OPEC (Organization of Petroleum Exporting Countries) summit in Riyadh over the weekend. President Hugo Chavez of Venezuela and Iran's president, Mahmoud Ahmadi-Nehjad, joined forces at the two-day conference to take potshots at the United States over its emasculated dollar. […]
GE to Build Two Power Plants in Turkmenistan
From Staff Reports General Electric plans to build two power plants in Turkmenistan in an effort to help the desert nation develop solar-power facilities, Reuters reported. The agreement was reached after talks with GE officials and Turkmen president Kurbanguly Berdymukhamedov last week in the nation's capital, Ashgabat. Despite his country's status as Central Asia's largest […]
E-Trade Faces Account Withdrawals; Possible Suitors
By Mike Caggeso Associate Editor Facing a surge in account withdrawals, wounded online broker E-Trade Financial Corp. (ETFC) took out an ad in the Wall Street Journal, assuring account holders that the company is not going to file for bankruptcy and that their money is protected by the Federal Deposit Insurance Corp. (FDIC). The public […]
Garmin Withdraws Tele Atlas Bid; May Become Takeover Target
By William Patalon III Managing Editor Money Morning/The Money Map Report Garmin Ltd. (GRMN), the largest U.S. maker of satellite-navigation devices, dropped its $3.4 billion bid for digital-mapmaker Tele Atlas NV (TLATF), handing victory in the strategic bidding battle to European rival TomTom NV. The strategic reversal by Garmin could put the George Town, Grand […]
GE Nabs 26% Stake in Sayi Power, Gains Foothold in India's Power Market
From Staff Reports General Electric Co.'s (GE) GE Energy Financial Services unit bought a 26% stake in Sayi Power Energy, a majority shareholder of KSK Power for an undisclosed amount. But the intentions are clear as day. India's rapidly expanding housing market is a major growth opportunity, especially compared to GE's home turf in United […]
GE Money Fund Breaks the Buck; Others Scramble to Cover Losses
By Jason Simpkins Associate Editor A short-term institutional bond managed by General Electric Asset Management suffered such extreme losses from mortgage and asset-backed securities that it has offered investors the option of redeeming their holdings at 96 cents on the dollar. Barron's first reported the losses in the General Electric (GE) fund on Wednesday. The […]
Flood of Financial-Sector Write-downs Continue, Causing Stocks to Swoon
By Mike Caggeso Associate Editor Financial institutions dominated the headlines yesterday (Thursday), with yet another round of write-down worries – this time related to the banks’ fourth-quarter results. Investors and analysts believe Citigroup Inc. (C) may face $8 billion to $11 billion in fourth quarter write-downs, according to the Wall Street Journal – a huge […]