RSS Feed     Twitter     Facebook

Posts Tagged ‘credit’

Troubled CIT ‘gets rescue deal’

CIT's headquarters in New York

CIT, the troubled American bank, has approved a $3bn (£1.8bn) rescue loan from major shareholders to keep the company out of bankruptcy, reports say.

The emergency financing is aimed at giving the firm time to restructure some of its debt payments, The New York Times and the Wall Street Journal said.

CIT had been in talks with major banks, including JP Morgan and Goldman Sachs.

The US government has said it will not offer a bail-out to CIT – which lends to small and medium-sized businesses.

Last week, shares in CIT plunged as analysts warned investors should brace themselves for the bank’s collapse – though they later rallied on news of the rescue talks.

Business support

Fitch and Moody’s – the credit ratings agencies – downgraded CIT on Thursday, after it said it was unlikely to receive any more government help.

The US Treasury said that the government needed to "keep the threshold high" for exceptional aid to individual companies.

The failure of CIT would remove a key source of credit for thousands of small and middle-sized US firms, which are already struggling in the recession.

If CIT, founded more than a century ago, went bankrupt it would join Lehman Brothers and Washington Mutual on the list of large financial services companies to collapse since the acceleration of the credit crisis in September last year.

But analysts say that if it did fail, it would be unlikely to have the same impact.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Congress Woman Introduces Bill to Ban All Credit Default Swaps

I’m a little late to this story, but last week Congresswoman Maxine Waters introduced a bill to ban all credit default swaps.As Waters said:Preventing all credit-default swaps is essential to bringing stability to the market and preventing a similar cr…

Illinois’ Credit Rating Facing Big Hit After Passing Debt-Heavy Budget

Illinois’s long-term credit rating was put on watch by Moody’s Investors Services after lawmakers adopted a budget that includes $3.5 billion in short-term notes to meet pension expenses.

Hale “Bonddad” Stewart: The Black Swan Myth

I’ve been seeing more and more people comment that we’re in a black swan situation. The phrase black swan “refers to high-impact, hard-to-predict, and rare…

Orlando Bloom Home Buglarized

Credit: Thornton/Donnelly/INFphoto.com
Orlando Bloom’s Los Angeles home was buglarized overnight.
According to PEOPLE, at least two unidentified culprits broke into the property and looted a number of the actor’s personal belonging before taking off into the night.
Orlando was not home during the incident.

Talent agents will get no discount for Jackman, Craig’s Broadway show

As the worldwide credit crunch takes its toll on many, the producers of actors Hugh Jackman and Daniel Craig’s new Broadway show have decided to ban ticket discounts for top talent agents.
Craig, 41, will be making his Broadway debut opposite Aussie actor Hugh Jackman, 40, on September 10 in the dramatic play ‘A Steady Rain’.
The [...]

Major US lender ‘on the brink’

CIT logo

Days of talks on a possible last-ditch bail-out between the US government and troubled New York-based lender CIT Group Inc have come to an end.

The company said there was no appreciable likelihood of additional government support in the short term.

Analysts says the development raises the chances that the company will file for bankruptcy.

The failure of CIT would remove a key source of credit for thousands of small and middle-sized US firms.

The US Treasury said in a statement that the government needed to "keep the threshold high" for exceptional aid to individual companies.

Century

CIT, which was founded more than a century ago, says its managers, directors and advisers are evaluating alternatives.

If it goes bankrupt it will join Lehman Brothers Holdings Inc and Washington Mutual Inc among large financial services companies to collapse since the acceleration of the credit crisis in September last year.

Analysts say the position of CIT has deteriorated so far that officials fear that even a short-term Treasury loan might not save it.

Trading in CIT shares was halted on Wednesday afternoon.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Mayor faces grilling over Clement expenses

Deputy mayor was forced to quit after discrepancies in claims came to light

Boris Johnson faces a grilling by the London assembly over his role in authorising the expenses of his former deputy, Ian Clement, who was forced to quit after discrepancies in his claims came to light.

The mayor of London will take questions at his monthly session with the full assembly, but has been criticised for refusing to face more detailed questioning by the panel, which scrutinises the business management and administration of the Greater London authority.

Johnson sent another deputy, Sir Simon Milton, to face the BMac committee last month to shed light on how Clement managed to pass through expenses in breach of the policy on the use of credit cards and expenses for months without a formal challenge.

It emerged during the meeting that Milton was not in a position to answer most of the questions and that Johnson had been signing off the claims since March due to a change in the expenses policy.

It also emerged that Johnson had known since last August that Clement was one of seven people in the building to have a credit card because Johnson had ticked him off for using it for expensive upgrades for flights to Beijing at the time.

When allegations that Clement had misused his credit card first surfaced, Johnson’s office insisted that the mayor had not known his deputy possessed one. The deputy mayor was disciplined for using the card for personal items – later repaid – but Johnson refused to sack him.

Clement quit soon after, when further irregularities came to light. Some of the Tory colleagues cited on his expenses came forward to say they had not been present at the time.

Clement also entertained City Hall colleagues and charged the taxpayer, in contravention of GLA rules. The matter has since been referred to the police.

Johnson said before the weekend he would take questions on his oversight of Clement’s expenses at the full London assembly, where questions are time-limited on a range of issues over a two-and-a-half hour session, or the BMac committee, “but not both”.

This prompted claims that the Tory mayor, who promised openness and transparency in his mayoralty, is seeking to limit the amount of scrutiny at the hands of the London assembly.

In what is expected to a heated round of exchanges, Johnson will be asked what he knew and when, and whether he acted swiftly enough.

Today’s meeting will also be used to take a vote on more detailed and regular publication of expenses claimed by both assembly members and the mayor’s advisors.

All but one of the 25 assembly members voluntarily published their expenses following the last BMac meeting.

Brian Coleman, the Tory member for Barnet and Camden, flatly refused, stating in the London Evening Standard that his expenses were “none of the public’s business”.

But Coleman relented the following day following pressure from Johnson’s office.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds


Goldman Sachs Execs On Track For Record Pay

NEW YORK (AP) — Goldman Sachs is emerging as the king of post-meltdown Wall Street.

Already the most powerful U.S. financial company before the credit crisis, the bank profited handsomely from Wall Street’s rally and the recovering credit ma…

Dan Dorfman: Gory Credit Story Could Wreck Recovery

Wall Street has long been a street of myths, pretty much propelled by an overwhelming belief that the path of both the economy and the stock market is one directional–inevitably up.

Ellen Brown: Towards a Solution to the Debt Crisis in California: The State Could Walk Away and Create Its Own Credit Machine

California could put its revenues in its own state-owned bank and fan these “reserves” into many times their face value in loans, using the same “fractional reserve” system that private banks use.

Karolina Kurkova Pregnant

Credit: Dara Kushner/INFphoto.com
Victoria’s Secret supermodel Karolina Kurkova is pregnant with her first child.
The Czech-born catwalk maven, 25, and her fiancé Archie Drury are expecting a baby tot in October, her rep confirmed Tuesday.
“Supermodel and actress Karolina Kurkova and her fiancé, film producer Archie Drury have announced that they are expecting their first child,” [...]