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General Motors announced that it will offer buyouts or early retirements to all 74,000 U.S. hourly workers represented by the United Auto Workers in a sweeping deal with the union intended to clear the way for GM to hire lower-cost replacements. The cost-saving agreement follows on a program launched in January for about 5,200 workers… Continue reading GM Offers Buyouts, Early Retirements to Union Workers in US

In a phone call to CNBC this morning, Warren Buffett stated that he has a plan to help the troubled bond insurance situation. Shares of Ambac and MBIA, two of the largest bond insurers, rose right after the interview was aired early this morning.     In a live telephone call to the CNBC Squawk… Continue reading CNBC: Buffett Offers to Reinsure $800B in Municipal Bonds

Tuesday morning shares in European insurers slid as news of AIG’s accounting hole in the derivatives portfolio of sparked renewed fears over their sub-prime exposure. The DJ Stoxx European insurance index was the only sector in negative territory at 1154 GMT, down 0.2 percent, having been down as much as 2.2 percent earlier in the… Continue reading European Insurer Stocks Slide, Responding to AIG News

The latest sector to be affected by the collapse of the housing boom is the $17-billion Title insurance business. Closes scrutiny of the sector is underway, including allegations that insurers colluded illegally and paid kickbacks to agents or brokers to get business.    An antitrust suit filed Feb. 1 in federal court in Brooklyn accuses… Continue reading Title Insurance Sector Scrutinized, NY Sues Four Big Companies

One of the world’s largest insurance brokers, Marsh & McLennan Cos.reported that fourth-quarter net income fell 62%, reflecting continuing weakness. The brokerage reported net income of $85 million, or 16 cents a share, compared to $226 million, or 40 cents a share, a year earlier.    Excluding special items, largely restructuring and legal costs, earnings… Continue reading Marsh Posts Fourth-Quarter Net Income Decline of 62%

American International Group Inc., the world’s largest insurer by assets, said auditors found a “material weakness” in how the company values its credit- default swap portfolio. The stock fell the most in 20 years. The contracts declined by about $4.88 billion in October and November, according to data in a regulatory filing today. The drop… Continue reading AIG’s Shares Drop as Audit Shows Weaknesses

Societe Generale SA, France’s second-biggest bank, plans to raise 5.5 billion euros ($8 billion) by selling stock at a lower price than analysts estimated to replenish capital after the worst trading loss in banking history.     The French bank will sell shares in a rights offer at 47.50 euros each, or 39 percent less… Continue reading In Wake of Scandal, Societe Generale to Sell Stock, Raise Money

HCC Insurance Holdings Inc reported on Friday that it has settled a class action lawsuit related to its historic stock-option granting practices. The terms of the settlement, which do not include any admission of liability or wrongdoing by the company, provides for a release of all claims and payment of $10 million into a settlement… Continue reading HCC Stock-Option Suit Settled

In this morning’s “Wall Street Journal”, it is being reported that we may be seeing a new phase in the global credit crunch that goes beyond the risky mortgages that have cost banks and investors more than $100 billion in losses and helped push the U.S. economy toward recession.    In the past few days,… Continue reading Global Credit Crunch May Widen

Mortgage lender Countrywide Financial Corp and housing advocacy group ACORN said they have reached an agreement to formalize workout programs to help borrowers with all types of sub-prime loans avoid foreclosure.     The agreement addresses home retention options and procedures for borrowers in various stages of mortgage delinquency, the companies said in a statement.