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Worries over a worldwide recession loomed over financial markets even as global credit markets continued to show signs of thawing on Wednesday.     A day after the U.S. and other countries announced further steps to shore up the struggling banking system, key lending rates eased further. The London interbank offered rates, or Libor, the… Continue reading Recession Worries Continue as Credit Markets Show Signs of Thawing

Citigroup Inc. and Goldman Sachs Group Inc. were among banks that soared in New York trading after the U.S. government said it would invest in nine of the country’s biggest financial firms and guarantee debt they issue.        Shares of Morgan Stanley, Bank of America Corp., Merrill Lynch & Co. and Wells Fargo & Co.… Continue reading Citi, Goldman Among Banks to Receive Government Investment, Must Accept Limits on Exec Pay

Fierce wildfires threatened Southern California for a third day Tuesday after leaving two people dead and heralding the start of the most intense period of the fire season here.      The most severe fires, fanned by harsh dry Santa Ana winds typical of the fall, were burning several thousand acres at the rim of the… Continue reading Fire Season Begins: Wildfires Rage in SoCal for Third Day

Bermuda-based insurer XL Capital Ltd announced on Tuesday a quarterly net loss of $1.65 billion to $1.67 billion, and said that its chairman involuntarily sold about 80 percent of his common shares last week to meet a margin loan call.    In announcing its preliminary results for the third quarter, XL said the loss was… Continue reading XL Capital Estimates Quarter Loss of $1.65B, Chairman Sells Stocks to Meet Margin Call

Former CEO of American International Group Inc. (AIG) Maurice “Hank” Greenberg has proposed changes to the federal government’s $85 billion bailout of the firm, saying that the current terms would result in the liquidation of the insurance giant.      Last month, AIG’s board entered an agreement with the Federal Reserve Bank of New York to… Continue reading Former CEO Greenberg Offers Alternative Plan for AIG

The U.S. government has announced a $250 billion plan to purchase stakes in a wide variety of banks in an effort to restore confidence in the sector.      President George W. Bush said the move would help to return stability to the U.S. banking sector and ultimately help preserve free markets.      U.S. federal authorities… Continue reading U.S. Government to Invest $250B in Banks, Reveals Additional Plans

U.S. stocks staged the biggest rally in seven decades on a government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars.    The Standard & Poor’s 500 Index rebounded from its worst week in 75 years with an 11.6 percent advance, its steepest since 1939,… Continue reading AFTERNOON UPDATE: Dow Sees Biggest One-Day Soar in Nearly 70 Years

The Travelers Companies, Inc. (“Travelers”), announced today that its initial estimate for catastrophe losses in the third quarter of 2008, primarily relating to Hurricanes Ike, Gustav and Dolly, is approximately $690 million after-tax ($1.05 billion pre-tax), in each case net of reinsurance. The loss estimates for Hurricane Ike reflect catastrophe losses in eight states and… Continue reading Travelers Estimates Cat Losses for Third Quarter to be $1.05B

After being directed by New York Assembly Speaker Sheldon Silver to hold a committee hearing on the regulation of credit-default swaps, Insurance Chairman Joseph Morelle, indicated he plans to hold the first of what could be several hearings in New York, Dec. 5. Reportedly, the hearing will focus on reviewing new regulations and guidelines proposed… Continue reading NYS Assembly Insurance Chair to Explore Credit-default Swaps

Racing to prevent the collapse of the financial system, France, Germany, Spain and Austria committed 1.1 trillion euros ($1.5 trillion) to guarantee bank loans and take stakes in lenders.        The announcements came as Britain took majority stakes today in Royal Bank of Scotland Plc and HBOS Plc. The coordinated steps followed a pledge yesterday… Continue reading European Countries Commit $1.1 Trillion Euros to Guarantee Bank Loans