Author: Farkas Laura

Govenment’s Broad Rescue Plan Designed to Turn Around Market

The U.S. government launched several multibillion-dollar programs to guarantee holdings in money-market mutual funds and curb short-selling while developing a more sweeping plan to clean up toxic mortgage debt, sending global markets sharply higher on Friday. Here’s a rundown of what’s happening: —The Treasury said it would use $50 billion to back money market mutual… Continue reading Govenment’s Broad Rescue Plan Designed to Turn Around Market

More Buzz Around Morgan Stanley and Wachovia Merger

One of the two last independent, U.S.-based investment banks, Morgan Stanley is in advanced merger talks with Wachovia Bank, according to sources close to the company. Preliminary discussions with Wachovia began on Wednesay and are going on today while Morgan continues to pursue capital from a Chinese bank. According to people familiar with these discussions,… Continue reading More Buzz Around Morgan Stanley and Wachovia Merger

President Bush Backs Fed’s Decision on AIG

President George W. Bush in a statement today defended recent U.S. government’s decisions in helping financial markets cope with the “serious challenges” stemming from the long-running credit crisis.    “The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence,” Mr. Bush said in… Continue reading President Bush Backs Fed’s Decision on AIG

Dinallo, Ario to Lead NAIC Task Force to Approve Sale of AIG Assets

New York Insurance Superintendent Eric Dinallo and Pennsylvania Insurance Commissioner Joel Ario will oversee a National Association of Insurance Commissioners (NAIC) task force created to expedite the way for American International Group Inc.’s (AIG) sale of insurance assets. Creation of the task force was approved by commissioners on Tuesday afternoon, as federal and state regulators… Continue reading Dinallo, Ario to Lead NAIC Task Force to Approve Sale of AIG Assets

S&P to Discuss Credit Crunch in Teleconference Today

In the wake of the crisis on Wall Street, today at 3pm EST, Standard & Poor’s Ratings Services is holding a telephone conference call to discuss the recent credit events shaking the financial institutions sector.      According to the S&P bulletin, discussions will include the “bankruptcy filing of Lehman Brothers, the acquisition of Merrill Lynch… Continue reading S&P to Discuss Credit Crunch in Teleconference Today

Looking at the Fed Rescue of AIG and More

The Federal Reserve’s decision to throw American International Group Inc. (AIG) an $85 billion lifeline as it was tinkering on bankruptcy has widespread implications. Should this be something the government does? Should they be in the business of bailing out failed companies? And should taxpayers get stuck with the bill? So far the tab for… Continue reading Looking at the Fed Rescue of AIG and More

RMS Revises Ike Loss Estimates

On Wednesday revised estimates of insured losses from Hurricane Ike were released by Risk Management Solutions (RMS), putting the costs at between $7 billion and $12 billion.    Originally, RMS estimated the losses to be between $6 billion and $16 billion; the revised range reflects damage-report analysis and on-site assessments, according to the catastrophe modeler. … Continue reading RMS Revises Ike Loss Estimates

Buffet’s MidAmerican Energy Purchases Constellation at Bargain Price

Warren Buffett’s MidAmerican Energy Holdings Co. agreed to buy Constellation Energy Group Inc. for about $4.7 billion, snapping up the largest U.S. power marketer at less than half its market value prior to this week.      The cash deal is worth $26.50 a share, the companies said today in a statement. That’s 7 percent higher… Continue reading Buffet’s MidAmerican Energy Purchases Constellation at Bargain Price