Victhom's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/108825/comments http://seekingalpha.com/article/142109-cramer-s-mad-money-10-reasons-to-believe-the-nasdaq-rally-6-8-09?source=feed#comment-539917 539917 www.reuters.com/articl...

FACTBOX-Biggest changes in Nasdaq short interest
Tue Jun 9, 2009 4:16pm EDT
YORK, June 9 (Reuters) - Short interest on the Nasdaq rose 3.6 percent
in late May, the exchange said on Tuesday, suggesting bearish sentiment may be
creeping back into the stock market after a three-month rally]]> Wed, 10 Jun 2009 00:16:26 -0400 www.reuters.com/articl...

FACTBOX-Biggest changes in Nasdaq short interest
Tue Jun 9, 2009 4:16pm EDT
YORK, June 9 (Reuters) - Short interest on the Nasdaq rose 3.6 percent
in late May, the exchange said on Tuesday, suggesting bearish sentiment may be
creeping back into the stock market after a three-month rally]]> http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-537868 537868 Mon, 08 Jun 2009 19:03:19 -0400 http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-537866 537866
www.ft.com/cms/s/0/ff3...]]> Mon, 08 Jun 2009 19:02:40 -0400
www.ft.com/cms/s/0/ff3...]]> http://seekingalpha.com/article/141437-paulson-co-hedge-fund-covers-barclays-short?source=feed#comment-532952 532952 www.bloomberg.com/apps...

I guess this will stop "The problem" $10-$12B ??]]> Thu, 04 Jun 2009 23:28:55 -0400 www.bloomberg.com/apps...

I guess this will stop "The problem" $10-$12B ??]]> http://seekingalpha.com/article/140966-cramer-s-stop-trading-jp-morgan-s-secondary-a-bit-too-expensive-6-2-09?source=feed#comment-532889 532889 www.cnbc.com/id/31091877

Jim look at Nomura analyst call....
]]> Thu, 04 Jun 2009 22:31:55 -0400 www.cnbc.com/id/31091877

Jim look at Nomura analyst call....
]]> http://seekingalpha.com/article/141311-cramer-s-stop-trading-geithner-puts-a-lid-on-financials-6-3-09?source=feed#comment-532887 532887 BCS) and Nomura Analysts.....just says the opposite....to buy Investment Banks like Barclays...Goldman Sachs...Morgan Stanley...and avoid Commercial Bank...like Bank Of America...JP Morgan....etc...

Explain this JIM???

www.cnbc.com/id/31091877]]> Thu, 04 Jun 2009 22:29:10 -0400 BCS) and Nomura Analysts.....just says the opposite....to buy Investment Banks like Barclays...Goldman Sachs...Morgan Stanley...and avoid Commercial Bank...like Bank Of America...JP Morgan....etc...

Explain this JIM???

www.cnbc.com/id/31091877]]> http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-532885 532885
Hey Jim Explain this???

www.cnbc.com/id/31091877]]> Thu, 04 Jun 2009 22:25:31 -0400
Hey Jim Explain this???

www.cnbc.com/id/31091877]]> http://seekingalpha.com/article/141264-hoping-for-a-vanguard-takeover-of-ishares?source=feed#comment-531367 531367 you are slow in the news,....LOL

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports
Share | Email | Print | A A A

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net

Last Updated: May 16, 2009 10:51 EDT ]]> Thu, 04 Jun 2009 05:40:42 -0400 you are slow in the news,....LOL

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports
Share | Email | Print | A A A

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net

Last Updated: May 16, 2009 10:51 EDT ]]> http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-530285 530285
www.youtube.com/watch?...

Any politicians in Washington watching this show??]]> Wed, 03 Jun 2009 13:02:55 -0400
www.youtube.com/watch?...

Any politicians in Washington watching this show??]]> http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-530267 530267
watch this...

www.youtube.com/watch?...]]> Wed, 03 Jun 2009 12:55:33 -0400
watch this...

www.youtube.com/watch?...]]> http://seekingalpha.com/article/140966-cramer-s-stop-trading-jp-morgan-s-secondary-a-bit-too-expensive-6-2-09?source=feed#comment-529866 529866 Qatar fund says remains supportive of Barclays
DUBAI, June 3 (Reuters) - Qatar Holding, a division of sovereign wealth fund Qatar Investment Authority, on Wednesday said it remained a supportive shareholder in UK bank Barclays (LSE: BARC.L - news) .

'Qatar Holding remains a supportive shareholder in Barclays, which it regards as a world class bank, led by a board of directors and a professional managment team for which it maintains the utmost respect,' said Ahmad Al-Sayed, managing director and CEO, in a statement.

The statement comes one day after an Abu Dhabi fund sold more than 11 percent of Barclays.

'Qatar Holding, moreover, regards Barclays as a valued commercial and strategic partner particularly in the Middle East markets and expects to build on this fruitful relationship over the long term,' according to the statement, which was read by a spokesman for the holding company.

(Reporting by Thomas Atkins; Editing by Jason Benham) Keywords: BARCLAYS QATAR/ ]]> Wed, 03 Jun 2009 11:13:13 -0400 Qatar fund says remains supportive of Barclays
DUBAI, June 3 (Reuters) - Qatar Holding, a division of sovereign wealth fund Qatar Investment Authority, on Wednesday said it remained a supportive shareholder in UK bank Barclays (LSE: BARC.L - news) .

'Qatar Holding remains a supportive shareholder in Barclays, which it regards as a world class bank, led by a board of directors and a professional managment team for which it maintains the utmost respect,' said Ahmad Al-Sayed, managing director and CEO, in a statement.

The statement comes one day after an Abu Dhabi fund sold more than 11 percent of Barclays.

'Qatar Holding, moreover, regards Barclays as a valued commercial and strategic partner particularly in the Middle East markets and expects to build on this fruitful relationship over the long term,' according to the statement, which was read by a spokesman for the holding company.

(Reporting by Thomas Atkins; Editing by Jason Benham) Keywords: BARCLAYS QATAR/ ]]> http://seekingalpha.com/article/140966-cramer-s-stop-trading-jp-morgan-s-secondary-a-bit-too-expensive-6-2-09?source=feed#comment-529860 529860 BCS) trades at P/E of 4.83
you said sell in march at $2.75 I bought 25000 shares sold them at $21 this monday....I made a killing with your call....and now....

I'm buying back BCS again on your downgrade thanks again....Jim...you make my life easier...and Barclays will sell BGI division $12B by June 18 and restart dividend in Q3...when JPM at PE of 20 after much more "DILLUTION" will pay dividend???

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net ]]> Wed, 03 Jun 2009 11:11:45 -0400 BCS) trades at P/E of 4.83
you said sell in march at $2.75 I bought 25000 shares sold them at $21 this monday....I made a killing with your call....and now....

I'm buying back BCS again on your downgrade thanks again....Jim...you make my life easier...and Barclays will sell BGI division $12B by June 18 and restart dividend in Q3...when JPM at PE of 20 after much more "DILLUTION" will pay dividend???

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net ]]> http://seekingalpha.com/article/140967-cramer-s-lightning-round-what-to-buy-on-a-housing-turn-around-6-2-09?source=feed#comment-529854 529854 BCS) trades at P/E of 4.83
you said sell in march at $2.75 I bought 25000 shares sold them at $21 this monday....I made a killing with your call....and now....

I'm buying back BCS again on your downgrade thanks again....Jim...you make my life easier...and Barclays will sell BGI division $12B by June 18 and restart dividend in Q3...when JPM at PE of 20 after much more "DILLUTION" will pay dividend???

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net
]]> Wed, 03 Jun 2009 11:10:00 -0400 BCS) trades at P/E of 4.83
you said sell in march at $2.75 I bought 25000 shares sold them at $21 this monday....I made a killing with your call....and now....

I'm buying back BCS again on your downgrade thanks again....Jim...you make my life easier...and Barclays will sell BGI division $12B by June 18 and restart dividend in Q3...when JPM at PE of 20 after much more "DILLUTION" will pay dividend???

Barclays May Sell BGI for as Much as $12 Billion, WSJ Reports

By Dan Hart

May 16 (Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its asset management unit for as much as $12 billion, with BlackRock Inc. among interested bidders, the Wall Street Journal said, citing unidentified people familiar with the matter.

The business includes the exchange-traded funds unit iShares, which Barclays agreed to sell to CVC Capital Partners Ltd. for $4.4 billion two months ago, the newspaper said.

The iShares and securities-lending units each generate as much as a third of the profit for the Barclays Global Investors subsidiary, the newspaper said, citing a person familiar with the situation. BGI had a pretax profit of 595 million pounds ($903 million) in 2008, the Journal said.

Barclays does not comment on speculative stories, a company spokeswoman in London said when contacted by Bloomberg today.

To contact the reporter on this story: Dan Hart in Washington at dahart@bloomberg.net
]]> http://seekingalpha.com/article/141127-memories-of-lehman-fading?source=feed#comment-529814 529814 BCS) today at $17 with P/E of 4.75 vs US Banks with P/E of over 25 ... BCS is one of the cheapest bank and dividend coming back in Q3....

Lots of US Banks need to pay Tarp with huge Dillution before paying dividends....But Barclays
during the storm bought Lehman assets for only $2B....

That's what i call excellent management....]]> Wed, 03 Jun 2009 10:54:08 -0400 BCS) today at $17 with P/E of 4.75 vs US Banks with P/E of over 25 ... BCS is one of the cheapest bank and dividend coming back in Q3....

Lots of US Banks need to pay Tarp with huge Dillution before paying dividends....But Barclays
during the storm bought Lehman assets for only $2B....

That's what i call excellent management....]]> http://seekingalpha.com/article/140832-cramer-s-stop-trading-the-best-acting-retailer-out-there-6-1-09?source=feed#comment-528508 528508
like MS said??

JP Morgan estimates raised at Morgan Stanley
Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target.

I guess i will stick with Barclays UK Bank with P/E of 4.83 and dividend coming in Q3...beeter than US Banks with P/E of over 30 like JPM...GS...WFC.....and better dividend coming...

See what BCS CEO Mr Varley said:

"Varley said that the bank's decision to stay independent was to ensure "our profit performance, and in our resulting ability to pay dividends." Earlier, Barclays Chairman Marcus Agius repeated the company's intention to resume paying dividends in the second half of 2009 and thereafter to pay them on a quarterly basis. The bank plans to make a cash payment in the fourth quarter and a final cash dividend for the year being declared and paid in the first quarter of 2010. "

This way better and cheaper than some US Banks right JIM...Where is you call JIM??

]]> Tue, 02 Jun 2009 14:43:00 -0400
like MS said??

JP Morgan estimates raised at Morgan Stanley
Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target.

I guess i will stick with Barclays UK Bank with P/E of 4.83 and dividend coming in Q3...beeter than US Banks with P/E of over 30 like JPM...GS...WFC.....and better dividend coming...

See what BCS CEO Mr Varley said:

"Varley said that the bank's decision to stay independent was to ensure "our profit performance, and in our resulting ability to pay dividends." Earlier, Barclays Chairman Marcus Agius repeated the company's intention to resume paying dividends in the second half of 2009 and thereafter to pay them on a quarterly basis. The bank plans to make a cash payment in the fourth quarter and a final cash dividend for the year being declared and paid in the first quarter of 2010. "

This way better and cheaper than some US Banks right JIM...Where is you call JIM??

]]> http://seekingalpha.com/article/122059-cramer-s-lightning-round-barclays-is-scary-2-20-09?source=feed#comment-528453 528453 with Target of $60...I guess Barclays at P/E of 4.83 at $18 is takeover target LOL and should be $45-$50 soon or later???

JP Morgan estimates raised at Morgan Stanley
Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target. :theflyonthewall ]]> Tue, 02 Jun 2009 14:10:56 -0400 with Target of $60...I guess Barclays at P/E of 4.83 at $18 is takeover target LOL and should be $45-$50 soon or later???

JP Morgan estimates raised at Morgan Stanley
Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target. :theflyonthewall ]]> http://seekingalpha.com/article/140842-abu-dhabi-dumps-barclays-end-to-bank-stock-rally?source=feed#comment-528442 528442 Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target.

Well IF JPM goes to $60 Barclays will go to $30 soon or later....thanks to load up cheap like me...LOL]]> Tue, 02 Jun 2009 14:07:49 -0400 Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target.

Well IF JPM goes to $60 Barclays will go to $30 soon or later....thanks to load up cheap like me...LOL]]> http://seekingalpha.com/article/140825-wall-street-breakfast-must-know-news?source=feed#comment-528395 528395
with P/E of 32

Sorry but i will buy UK Bank Barclays (BCS) with P/E of 4.83 at $18.30 and dividend is coming in Q3

Cramer/theStreet.Com raised its outlook for JPM today, 2Jun09:

JPMorgan (JPM Quote) estimates raised at Morgan Stanley through 2011. Overweight rating and $60 price target. ]]> Tue, 02 Jun 2009 13:46:14 -0400
with P/E of 32

Sorry but i will buy UK Bank Barclays (BCS) with P/E of 4.83 at $18.30 and dividend is coming in Q3

Cramer/theStreet.Com raised its outlook for JPM today, 2Jun09:

JPMorgan (JPM Quote) estimates raised at Morgan Stanley through 2011. Overweight rating and $60 price target. ]]> http://seekingalpha.com/article/140842-abu-dhabi-dumps-barclays-end-to-bank-stock-rally?source=feed#comment-528371 528371
I can see BCS at $30 for sure with P/E of 4.83 vs 32 for JPM...

Cramer/theStreet.Com raised its outlook for JPM today, 2Jun09:

JPMorgan (JPM Quote) estimates raised at Morgan Stanley through 2011. Overweight rating and $60 price target. ]]> Tue, 02 Jun 2009 13:34:14 -0400
I can see BCS at $30 for sure with P/E of 4.83 vs 32 for JPM...

Cramer/theStreet.Com raised its outlook for JPM today, 2Jun09:

JPMorgan (JPM Quote) estimates raised at Morgan Stanley through 2011. Overweight rating and $60 price target. ]]> http://seekingalpha.com/article/140842-abu-dhabi-dumps-barclays-end-to-bank-stock-rally?source=feed#comment-528314 528314
Barclays PLC(RT-BATS: BCS)
Last Trade: 18.19
Trade Time: 1:02pm ET
Change: 2.31 (11.27%)
Bid: 18.18 x 700
Ask: 18.21 x 300

This is a free Real-Time quote. Each Real-Time quote is from BATS Exchange and does not necessarily represent the top bids or asks in the marketplace.
Order Book
Top of Book
Bid Price Size
18.18 700
18.16 200
18.14 400
18.13 100
18.12 300
Ask Price Size
18.21 400
18.23 100
18.25 200
18.38 400
20.05 7,500
]]> Tue, 02 Jun 2009 13:07:14 -0400
Barclays PLC(RT-BATS: BCS)
Last Trade: 18.19
Trade Time: 1:02pm ET
Change: 2.31 (11.27%)
Bid: 18.18 x 700
Ask: 18.21 x 300

This is a free Real-Time quote. Each Real-Time quote is from BATS Exchange and does not necessarily represent the top bids or asks in the marketplace.
Order Book
Top of Book
Bid Price Size
18.18 700
18.16 200
18.14 400
18.13 100
18.12 300
Ask Price Size
18.21 400
18.23 100
18.25 200
18.38 400
20.05 7,500
]]> http://seekingalpha.com/article/140842-abu-dhabi-dumps-barclays-end-to-bank-stock-rally?source=feed#comment-528225 528225
and this...Barclays CEO said this....

" Varley said that the bank's decision to stay independent was to ensure "our profit performance, and in our resulting ability to pay dividends." Earlier, Barclays Chairman Marcus Agius repeated the company's intention to resume paying dividends in the second half of 2009 and thereafter to pay them on a quarterly basis. The bank plans to make a cash payment in the fourth quarter and a final cash dividend for the year being declared and paid in the first quarter of 2010." ]]> Tue, 02 Jun 2009 12:17:03 -0400
and this...Barclays CEO said this....

" Varley said that the bank's decision to stay independent was to ensure "our profit performance, and in our resulting ability to pay dividends." Earlier, Barclays Chairman Marcus Agius repeated the company's intention to resume paying dividends in the second half of 2009 and thereafter to pay them on a quarterly basis. The bank plans to make a cash payment in the fourth quarter and a final cash dividend for the year being declared and paid in the first quarter of 2010." ]]> http://seekingalpha.com/article/140842-abu-dhabi-dumps-barclays-end-to-bank-stock-rally?source=feed#comment-528182 528182
Barclays is a great bargain....also Dividend is coming in 2009....not the case with JPM...WFC..BAC....LOL]]> Tue, 02 Jun 2009 11:51:22 -0400
Barclays is a great bargain....also Dividend is coming in 2009....not the case with JPM...WFC..BAC....LOL]]> http://seekingalpha.com/article/138462-four-dividend-stocks-to-avoid?source=feed#comment-510688 510688 Wed, 20 May 2009 00:05:44 -0400 http://seekingalpha.com/article/136892-the-oil-business-could-be-worse-but-not-much?source=feed#comment-505351 505351
Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> Fri, 15 May 2009 11:46:00 -0400
Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> http://seekingalpha.com/article/134901-cramer-s-lightning-round-general-cable-is-back-and-bigger-than-ever-5-1-09?source=feed#comment-505345 505345
"He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices."


Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> Fri, 15 May 2009 11:41:11 -0400
"He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices."


Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> http://seekingalpha.com/article/137581-oil-etfs-texas-tea-or-empty-well?source=feed#comment-505336 505336
Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> Fri, 15 May 2009 11:37:38 -0400
Oil slips to near $58 as signs of weak economies in US, Europe slow recent rally
Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> http://seekingalpha.com/article/137046-look-who-s-buying-natural-gas-now?source=feed#comment-505331 505331 Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> Fri, 15 May 2009 11:35:31 -0400 Pablo Gorondi, Associated Press Writer
On Friday May 15, 2009, 6:44 am EDT
Buzz up! Print Oil prices slipped to near $58 a barrel Friday as signs of economic weakness in the U.S. and Europe led investors to consider whether this month's crude rally was justified.

Benchmark crude for June delivery was down 53 cents to $58.09 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Thursday, the contract climbed 60 cents to settle at $58.62.

In London, Brent prices were down 49 cents to $58.10 a barrel on the ICE Futures exchange.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

European data was likewise bleak as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter, with export-dependent Germany, the region's biggest economy, particularly badly hit.

"Some of the green shoots are looking like yellow weeds," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "That's going to spill over into equity markets and have an effect on crude."

He projected that prices would fall back toward $50 a barrel soon, which could mean lower pump prices.

Investors got more evidence Thursday that global crude demand may be too weak to justify the recent run-up in prices. The Paris-based International Energy Agency cut its global oil consumption forecast for a ninth consecutive month and now expects demand to fall 3 percent in 2009, or about 2.6 million fewer barrels a day than last year.

]]> http://seekingalpha.com/article/135434-credit-card-losses-will-be-meaningfully-higher-in-q2?source=feed#comment-491340 491340
“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

nytimes.com/2009/0...


U.S. Says Bank of America Needs $33.9 Billion L. ANDREWS
Published: May 5, 2009
The government has told Bank of America it needs $33.9 billion in capital to withstand any worsening of the economic downturn, according to an executive at the bank, a determination that could make the United States the controlling shareholder in the bank.



Executives sparred with the government over the amount, which is higher than executives believed the bank needed. But J. Steele Alphin, the bank’s chief administrative officer, said Bank of America would have plenty of options to raise the capital on its own before it would have to convert any of taxpayer money into common stock, a move that would effectively increase the government’s holdings in the troubled bank.

“We’re not happy about it because it’s still a big number,” Mr. Alphin said. “We think it should be a bit less at the end of the day.”

Because Bank of America has already received $45 billion in federal assistance from the Treasury in exchange for preferred shares, it could satisfy regulators’ demands simply by converting the non-voting preferred shares to common stock.

Financial markets in Asia slumped 11 percent in early trading as investors questioned whether the results of the government’s stress tests of the nation’s 19 largest banks, whose assets represent about two-thirds of the nation’s financial system, would show more weakness in the financial system than hoped.

The Treasury Department declined to comment on Tuesday evening.

Under the arrangement worked out between the Treasury and Citigroup earlier this year, the Treasury will receive mandatory convertible preferred shares, meaning preferred shares that can be converted to voting shares of common stock at the will of the government.

If Bank of America relied on that conversion for the majority of the capital it needs to maintain, the govnerment wouildj become the nbakjn’s controlling shareholder.

Regulators have told the banks that the common shares would bolster their “tangible common equity,” a measure of capital that places greater emphasis on the resources that a bank has at its disposal than the more traditional measure of “Tier One” capital.

Citigroup, the largest and most deeply troubled of the banks, is expected to need to raise capital as insurance against any further downturn in the economy. The government told the bank it would need $50 to $55 billion in capital, a requirement that would force it to raise $5 billion to $10 billion in new capital, according to people briefed on the final results. Citigroup executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

The Obama administration plans to publicize the results of stress tests on Thursday. The results are expected to reveal that a number of them need additional capital, and many banks have negotiated with the government on what the actual capital requirements should be since they learned of the preliminary findings last week.

The tests are also expected to show that several banks, including Bank of New York Mellon, Goldman Sachs and JPMorgan Chase, are healthy enough to repay TARP funds.

Mr. Alpin noted that the $34 billion figure is well below the $45 billion in capital that the government has already allocated to the bank, although he said the bank has plenty of options to raise the capital on its own.

“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

Bank executives estimate that the company will generate $30 billion a year in income, once a normal environment returns.

The company has faced criticism over its acquisition of Merrill Lynch, the troubled investment bank, and last week, shareholders voted to strip the bank’s chief executive, Kenneth D. Lewis, of his title as chairman of the board. The board said last week that it still unanimously supports Mr. Lewis in his role as chief executive.

Mr. Alphin said since the government figure is less than the $45 billion provided to Bank of America, the bank will now start looking at ways of repaying the $11 billion difference over time to the government.

In the case of Citigroup, which has also received two taxpayer lifelines, executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

Among them are efforts to accelerate the sales of several businesses within Citi Holdings, a holding tank for assets it plans to shed, or to expand its common stock conversion plans to a broader base of private investors who hold Citigroup preferred stock. Both measures would avoid an increase in the government’s expected 36 percent ownership stake.

Taxpayer-supported Banks have been eager to wean themselves from the government’s purvue, and many analysts have questioned how useful the stress tests will be in assessing their true health.

Also Tuesday, senior government officials said the Treasury Department is planning to require taxpayer-supported banks seeking to free themselves from the government’s grip to show that they can repay the lifelines without additional subsidies that have helped them survive the financial crisis.

Banks have had an indirect subsidy adopted by the government last fall that allows them to issue debt cheaply with the backing of the Federal Deposit Insurance Corporation. The Treasury is expected to announce as early as Wednesday that healthier banks must show that they can issue debt without the guarantees before they are allowed to exit the Troubled Asset Relief Program, or TARP.

The banks also must demonstrate that they will be able to sell stock to private investors and pass a government stress test to show that they are healthy enough to survive without the taxpayer aid.

The Obama administration plans to publicize the results of stress tests for the nation’s 19 largest banks on Thursday. The results are expected to reveal that some need additional capital.

]]> Wed, 06 May 2009 00:41:53 -0400
“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

nytimes.com/2009/0...


U.S. Says Bank of America Needs $33.9 Billion L. ANDREWS
Published: May 5, 2009
The government has told Bank of America it needs $33.9 billion in capital to withstand any worsening of the economic downturn, according to an executive at the bank, a determination that could make the United States the controlling shareholder in the bank.



Executives sparred with the government over the amount, which is higher than executives believed the bank needed. But J. Steele Alphin, the bank’s chief administrative officer, said Bank of America would have plenty of options to raise the capital on its own before it would have to convert any of taxpayer money into common stock, a move that would effectively increase the government’s holdings in the troubled bank.

“We’re not happy about it because it’s still a big number,” Mr. Alphin said. “We think it should be a bit less at the end of the day.”

Because Bank of America has already received $45 billion in federal assistance from the Treasury in exchange for preferred shares, it could satisfy regulators’ demands simply by converting the non-voting preferred shares to common stock.

Financial markets in Asia slumped 11 percent in early trading as investors questioned whether the results of the government’s stress tests of the nation’s 19 largest banks, whose assets represent about two-thirds of the nation’s financial system, would show more weakness in the financial system than hoped.

The Treasury Department declined to comment on Tuesday evening.

Under the arrangement worked out between the Treasury and Citigroup earlier this year, the Treasury will receive mandatory convertible preferred shares, meaning preferred shares that can be converted to voting shares of common stock at the will of the government.

If Bank of America relied on that conversion for the majority of the capital it needs to maintain, the govnerment wouildj become the nbakjn’s controlling shareholder.

Regulators have told the banks that the common shares would bolster their “tangible common equity,” a measure of capital that places greater emphasis on the resources that a bank has at its disposal than the more traditional measure of “Tier One” capital.

Citigroup, the largest and most deeply troubled of the banks, is expected to need to raise capital as insurance against any further downturn in the economy. The government told the bank it would need $50 to $55 billion in capital, a requirement that would force it to raise $5 billion to $10 billion in new capital, according to people briefed on the final results. Citigroup executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

The Obama administration plans to publicize the results of stress tests on Thursday. The results are expected to reveal that a number of them need additional capital, and many banks have negotiated with the government on what the actual capital requirements should be since they learned of the preliminary findings last week.

The tests are also expected to show that several banks, including Bank of New York Mellon, Goldman Sachs and JPMorgan Chase, are healthy enough to repay TARP funds.

Mr. Alpin noted that the $34 billion figure is well below the $45 billion in capital that the government has already allocated to the bank, although he said the bank has plenty of options to raise the capital on its own.

“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

Bank executives estimate that the company will generate $30 billion a year in income, once a normal environment returns.

The company has faced criticism over its acquisition of Merrill Lynch, the troubled investment bank, and last week, shareholders voted to strip the bank’s chief executive, Kenneth D. Lewis, of his title as chairman of the board. The board said last week that it still unanimously supports Mr. Lewis in his role as chief executive.

Mr. Alphin said since the government figure is less than the $45 billion provided to Bank of America, the bank will now start looking at ways of repaying the $11 billion difference over time to the government.

In the case of Citigroup, which has also received two taxpayer lifelines, executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

Among them are efforts to accelerate the sales of several businesses within Citi Holdings, a holding tank for assets it plans to shed, or to expand its common stock conversion plans to a broader base of private investors who hold Citigroup preferred stock. Both measures would avoid an increase in the government’s expected 36 percent ownership stake.

Taxpayer-supported Banks have been eager to wean themselves from the government’s purvue, and many analysts have questioned how useful the stress tests will be in assessing their true health.

Also Tuesday, senior government officials said the Treasury Department is planning to require taxpayer-supported banks seeking to free themselves from the government’s grip to show that they can repay the lifelines without additional subsidies that have helped them survive the financial crisis.

Banks have had an indirect subsidy adopted by the government last fall that allows them to issue debt cheaply with the backing of the Federal Deposit Insurance Corporation. The Treasury is expected to announce as early as Wednesday that healthier banks must show that they can issue debt without the guarantees before they are allowed to exit the Troubled Asset Relief Program, or TARP.

The banks also must demonstrate that they will be able to sell stock to private investors and pass a government stress test to show that they are healthy enough to survive without the taxpayer aid.

The Obama administration plans to publicize the results of stress tests for the nation’s 19 largest banks on Thursday. The results are expected to reveal that some need additional capital.

]]> http://seekingalpha.com/article/135167-cramer-s-lightning-round-jamie-dimon-is-the-next-warren-buffett-5-4-09?source=feed#comment-491337 491337
“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

www.nytimes.com/2009/0...


U.S. Says Bank of America Needs $33.9 Billion L. ANDREWS
Published: May 5, 2009
The government has told Bank of America it needs $33.9 billion in capital to withstand any worsening of the economic downturn, according to an executive at the bank, a determination that could make the United States the controlling shareholder in the bank.



Executives sparred with the government over the amount, which is higher than executives believed the bank needed. But J. Steele Alphin, the bank’s chief administrative officer, said Bank of America would have plenty of options to raise the capital on its own before it would have to convert any of taxpayer money into common stock, a move that would effectively increase the government’s holdings in the troubled bank.

“We’re not happy about it because it’s still a big number,” Mr. Alphin said. “We think it should be a bit less at the end of the day.”

Because Bank of America has already received $45 billion in federal assistance from the Treasury in exchange for preferred shares, it could satisfy regulators’ demands simply by converting the non-voting preferred shares to common stock.

Financial markets in Asia slumped 11 percent in early trading as investors questioned whether the results of the government’s stress tests of the nation’s 19 largest banks, whose assets represent about two-thirds of the nation’s financial system, would show more weakness in the financial system than hoped.

The Treasury Department declined to comment on Tuesday evening.

Under the arrangement worked out between the Treasury and Citigroup earlier this year, the Treasury will receive mandatory convertible preferred shares, meaning preferred shares that can be converted to voting shares of common stock at the will of the government.

If Bank of America relied on that conversion for the majority of the capital it needs to maintain, the govnerment wouildj become the nbakjn’s controlling shareholder.

Regulators have told the banks that the common shares would bolster their “tangible common equity,” a measure of capital that places greater emphasis on the resources that a bank has at its disposal than the more traditional measure of “Tier One” capital.

Citigroup, the largest and most deeply troubled of the banks, is expected to need to raise capital as insurance against any further downturn in the economy. The government told the bank it would need $50 to $55 billion in capital, a requirement that would force it to raise $5 billion to $10 billion in new capital, according to people briefed on the final results. Citigroup executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

The Obama administration plans to publicize the results of stress tests on Thursday. The results are expected to reveal that a number of them need additional capital, and many banks have negotiated with the government on what the actual capital requirements should be since they learned of the preliminary findings last week.

The tests are also expected to show that several banks, including Bank of New York Mellon, Goldman Sachs and JPMorgan Chase, are healthy enough to repay TARP funds.

Mr. Alpin noted that the $34 billion figure is well below the $45 billion in capital that the government has already allocated to the bank, although he said the bank has plenty of options to raise the capital on its own.

“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

Bank executives estimate that the company will generate $30 billion a year in income, once a normal environment returns.

The company has faced criticism over its acquisition of Merrill Lynch, the troubled investment bank, and last week, shareholders voted to strip the bank’s chief executive, Kenneth D. Lewis, of his title as chairman of the board. The board said last week that it still unanimously supports Mr. Lewis in his role as chief executive.

Mr. Alphin said since the government figure is less than the $45 billion provided to Bank of America, the bank will now start looking at ways of repaying the $11 billion difference over time to the government.

In the case of Citigroup, which has also received two taxpayer lifelines, executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

Among them are efforts to accelerate the sales of several businesses within Citi Holdings, a holding tank for assets it plans to shed, or to expand its common stock conversion plans to a broader base of private investors who hold Citigroup preferred stock. Both measures would avoid an increase in the government’s expected 36 percent ownership stake.

Taxpayer-supported Banks have been eager to wean themselves from the government’s purvue, and many analysts have questioned how useful the stress tests will be in assessing their true health.

Also Tuesday, senior government officials said the Treasury Department is planning to require taxpayer-supported banks seeking to free themselves from the government’s grip to show that they can repay the lifelines without additional subsidies that have helped them survive the financial crisis.

Banks have had an indirect subsidy adopted by the government last fall that allows them to issue debt cheaply with the backing of the Federal Deposit Insurance Corporation. The Treasury is expected to announce as early as Wednesday that healthier banks must show that they can issue debt without the guarantees before they are allowed to exit the Troubled Asset Relief Program, or TARP.

The banks also must demonstrate that they will be able to sell stock to private investors and pass a government stress test to show that they are healthy enough to survive without the taxpayer aid.

The Obama administration plans to publicize the results of stress tests for the nation’s 19 largest banks on Thursday. The results are expected to reveal that some need additional capital.


]]> Wed, 06 May 2009 00:39:48 -0400
“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

www.nytimes.com/2009/0...


U.S. Says Bank of America Needs $33.9 Billion L. ANDREWS
Published: May 5, 2009
The government has told Bank of America it needs $33.9 billion in capital to withstand any worsening of the economic downturn, according to an executive at the bank, a determination that could make the United States the controlling shareholder in the bank.



Executives sparred with the government over the amount, which is higher than executives believed the bank needed. But J. Steele Alphin, the bank’s chief administrative officer, said Bank of America would have plenty of options to raise the capital on its own before it would have to convert any of taxpayer money into common stock, a move that would effectively increase the government’s holdings in the troubled bank.

“We’re not happy about it because it’s still a big number,” Mr. Alphin said. “We think it should be a bit less at the end of the day.”

Because Bank of America has already received $45 billion in federal assistance from the Treasury in exchange for preferred shares, it could satisfy regulators’ demands simply by converting the non-voting preferred shares to common stock.

Financial markets in Asia slumped 11 percent in early trading as investors questioned whether the results of the government’s stress tests of the nation’s 19 largest banks, whose assets represent about two-thirds of the nation’s financial system, would show more weakness in the financial system than hoped.

The Treasury Department declined to comment on Tuesday evening.

Under the arrangement worked out between the Treasury and Citigroup earlier this year, the Treasury will receive mandatory convertible preferred shares, meaning preferred shares that can be converted to voting shares of common stock at the will of the government.

If Bank of America relied on that conversion for the majority of the capital it needs to maintain, the govnerment wouildj become the nbakjn’s controlling shareholder.

Regulators have told the banks that the common shares would bolster their “tangible common equity,” a measure of capital that places greater emphasis on the resources that a bank has at its disposal than the more traditional measure of “Tier One” capital.

Citigroup, the largest and most deeply troubled of the banks, is expected to need to raise capital as insurance against any further downturn in the economy. The government told the bank it would need $50 to $55 billion in capital, a requirement that would force it to raise $5 billion to $10 billion in new capital, according to people briefed on the final results. Citigroup executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

The Obama administration plans to publicize the results of stress tests on Thursday. The results are expected to reveal that a number of them need additional capital, and many banks have negotiated with the government on what the actual capital requirements should be since they learned of the preliminary findings last week.

The tests are also expected to show that several banks, including Bank of New York Mellon, Goldman Sachs and JPMorgan Chase, are healthy enough to repay TARP funds.

Mr. Alpin noted that the $34 billion figure is well below the $45 billion in capital that the government has already allocated to the bank, although he said the bank has plenty of options to raise the capital on its own.

“There are several ways to deal with this,” Mr. Alphin said. “The company is very healthy.”

Bank executives estimate that the company will generate $30 billion a year in income, once a normal environment returns.

The company has faced criticism over its acquisition of Merrill Lynch, the troubled investment bank, and last week, shareholders voted to strip the bank’s chief executive, Kenneth D. Lewis, of his title as chairman of the board. The board said last week that it still unanimously supports Mr. Lewis in his role as chief executive.

Mr. Alphin said since the government figure is less than the $45 billion provided to Bank of America, the bank will now start looking at ways of repaying the $11 billion difference over time to the government.

In the case of Citigroup, which has also received two taxpayer lifelines, executives say the bank can easily cover any shortfall, and is considering several options to close that gap.

Among them are efforts to accelerate the sales of several businesses within Citi Holdings, a holding tank for assets it plans to shed, or to expand its common stock conversion plans to a broader base of private investors who hold Citigroup preferred stock. Both measures would avoid an increase in the government’s expected 36 percent ownership stake.

Taxpayer-supported Banks have been eager to wean themselves from the government’s purvue, and many analysts have questioned how useful the stress tests will be in assessing their true health.

Also Tuesday, senior government officials said the Treasury Department is planning to require taxpayer-supported banks seeking to free themselves from the government’s grip to show that they can repay the lifelines without additional subsidies that have helped them survive the financial crisis.

Banks have had an indirect subsidy adopted by the government last fall that allows them to issue debt cheaply with the backing of the Federal Deposit Insurance Corporation. The Treasury is expected to announce as early as Wednesday that healthier banks must show that they can issue debt without the guarantees before they are allowed to exit the Troubled Asset Relief Program, or TARP.

The banks also must demonstrate that they will be able to sell stock to private investors and pass a government stress test to show that they are healthy enough to survive without the taxpayer aid.

The Obama administration plans to publicize the results of stress tests for the nation’s 19 largest banks on Thursday. The results are expected to reveal that some need additional capital.


]]> http://seekingalpha.com/article/135167-cramer-s-lightning-round-jamie-dimon-is-the-next-warren-buffett-5-4-09?source=feed#comment-491302 491302
China Construction Falls as Bank of America May Sell (Update1)
Share | Email | Print | A A A

By John Liu

May 6 (Bloomberg) -- China Construction Bank Corp., the world’s second-largest lender by market value, dropped in Hong Kong on concern that Bank of America Corp. may sell part of its holding when a lockup on the stake expires tomorrow.

Bank of America can sell as many as 13.5 billion shares of China Construction, or 6 percent of the Chinese lender’s outstanding shares traded in Hong Kong, on May 7, according to an earlier agreement. The U.S. bank may begin seeking bids from investors, two fund managers who have been approached by investment banks seeking to arrange the sale said on May 4.

China Construction dropped 1.7 percent to HK$4.69 in Hong Kong as of 10:53 a.m., after the Financial Times said Bank of America is considering selling part of its stake. The stock has gained 8.7 percent this year, the second-worst performer among China’s six banks traded in Hong Kong.

China Construction’s Beijing-based spokesman Yu Baoyue said the bank hasn’t received any notice from Bank of America about a possible sale.

U.S. and European financial companies have been selling shares in Chinese banks to replenish capital eroded by the global credit crisis. Allianz SE and American Express Co. sold a combined $1.9 billion of shares in Industrial & Commercial Bank of China Ltd. last week.

U.S. regulators have determined that Bank of America has the largest need for new capital among 19 biggest U.S. banks subjected to stress tests, according to people familiar with the matter. Bank of America already raised $2.8 billion selling China Construction shares in January.

Bank of America is weighing an immediate sale of the China Construction stake versus one in a few weeks’ time, according to the Financial Times.

To contact the reporter on this story: John Liu in Shanghai at jliu42@bloomberg.net

]]> Tue, 05 May 2009 23:36:37 -0400
China Construction Falls as Bank of America May Sell (Update1)
Share | Email | Print | A A A

By John Liu

May 6 (Bloomberg) -- China Construction Bank Corp., the world’s second-largest lender by market value, dropped in Hong Kong on concern that Bank of America Corp. may sell part of its holding when a lockup on the stake expires tomorrow.

Bank of America can sell as many as 13.5 billion shares of China Construction, or 6 percent of the Chinese lender’s outstanding shares traded in Hong Kong, on May 7, according to an earlier agreement. The U.S. bank may begin seeking bids from investors, two fund managers who have been approached by investment banks seeking to arrange the sale said on May 4.

China Construction dropped 1.7 percent to HK$4.69 in Hong Kong as of 10:53 a.m., after the Financial Times said Bank of America is considering selling part of its stake. The stock has gained 8.7 percent this year, the second-worst performer among China’s six banks traded in Hong Kong.

China Construction’s Beijing-based spokesman Yu Baoyue said the bank hasn’t received any notice from Bank of America about a possible sale.

U.S. and European financial companies have been selling shares in Chinese banks to replenish capital eroded by the global credit crisis. Allianz SE and American Express Co. sold a combined $1.9 billion of shares in Industrial & Commercial Bank of China Ltd. last week.

U.S. regulators have determined that Bank of America has the largest need for new capital among 19 biggest U.S. banks subjected to stress tests, according to people familiar with the matter. Bank of America already raised $2.8 billion selling China Construction shares in January.

Bank of America is weighing an immediate sale of the China Construction stake versus one in a few weeks’ time, according to the Financial Times.

To contact the reporter on this story: John Liu in Shanghai at jliu42@bloomberg.net

]]>