Monday, November 26, 2007

Yahoo - "Citi Aims to Cut Costs; Layoffs Possible" (11-26-07)

"Citigroup Inc., bracing for big credit-related losses in the fourth quarter, is looking to lower costs -- which could mean another round of job cuts at the nation's largest bank. 'We are engaged in a planning process in anticipation of our new CEO, and our business heads are planning ways in which we can be more efficient and cost-effective to position our businesses in line with economic realities,' Citi spokeswoman Shannon Bell said Monday."

Reuters - "JPMorgan to cut about 100 subprime jobs" (11-26-07)

"JPMorgan Chase & Co Inc plans to cut about 100 subprime mortgage jobs in California amid falling U.S. housing prices and tighter lending standards. JPMorgan disclosed the cuts in a recent filing with the California Employment Development Department. The cuts, effective December 15, will take place at JPMorgan's subprime retail operations center in Ontario, California."

Bloomberg - "Bank of America Takes Lead in Backing `SuperSIV' Fund" (11-26-07)

"Bank of America Corp., the nation's second-largest bank, will lead efforts by Citigroup Inc. and JPMorgan Chase & Co. to convince smaller competitors to help finance an $80 billion bailout of short-term debt markets. The campaign starts this week with New York-based Citigroup and JPMorgan in supporting roles to Charlotte, North Carolina- based Bank of America, said two people with knowledge of the matter, who didn't want to comment publicly before the plan is formally announced."

Yahoo - "HSBC Bails Out 2 Troubled Funds" (11-26-07)

"HSBC Holdings PLC, Europe's largest bank, said Monday it will bail out two troubled funds it manages by transferring about $45 billion of their assets onto its balance sheet. HSBC said it will also inject $35 billion into the two funds, Cullinan Finance Ltd. and Asscher Finance Ltd., in a move that will clarify responsibility for the funds and prevent liquidation of their assets."

CNN - "Don't look now: Here comes the recession" (11-26-07)

"After years of living happily beyond their means, Americans are finally facing financial reality. A persistent rise in energy prices will mean bigger heating bills this winter and heftier tabs at the gas pump. Job growth is slowing and wage gains have been anemic. House prices are sliding, diminishing the value of the asset that's the biggest factor in Americans' personal wealth. Even the stock market, which has been resilient for so long in the face of eroding consumer sentiment, has begun pulling back amid signs of deep distress in the financial sector."

Bloomberg - "Countrywide Falls as Schumer Seeks Probe of Advances" (11-26-07)

"Countrywide Financial Corp. fell more than 10 percent in New York Stock Exchange trading after U.S. Senator Charles Schumer urged the Federal Home Loan Bank system to probe cash advances to the largest U.S. mortgage lender."


Bloomberg - "Japan's Growth Forecast Cut by Economists on Housing" (11-26-07)

"Japan's gross domestic product forecast was cut by economists, who said a plunge in housing starts and construction investment will slow economic growth. The world's second-largest economy will grow 1.5 percent in the year ending March 31, according to the median forecast of 33 economists surveyed by Bloomberg News from Nov. 14 to Nov. 22. A month ago, the median projection was for a 1.7 percent expansion."

Los Angeles Times Blog - "A new respect for debt?" (11-26-07)

"David Lazarus provides the protein here with a thoughtful column in today's paper, reporting that holiday shoppers seem to have a new respect for debt this year: '... anecdotal evidence suggests that, after years of putting everything they desired on plastic, some people finally may be getting smarter about their finances. And many, though they may not be conscious of it, seem to have a gut feeling that the economy is going to keep heading south.'"

Real Estate Journal - "Rising Use of 'Impact' Fees Rankles New-Home Buyers" (11-26-07)

"While few rocket into six figures, impact fees such as those faced by Ms. Banzon and Mr. Ahmad are popping up in a rapidly expanding number of cash-strapped U.S. municipalities scrounging for new revenue sources while federal funding for local infrastructure has become more difficult to obtain. The one-time fees, imposed on builders and often folded into home prices and passed on to buyers, are used by cities to fund construction of infrastructure such as roads, sidewalks, parks and even fire stations for rapidly growing neighborhoods. A 2006 Kansas State University survey found that 39% of the 292 U.S. cities responding imposed impact fees on new construction last year, up from 25% in 2002."

No comments: