While the rest of the world’s banks are failing, trying to raise liquidity, trying to keep from failing and freaking out about all of the above, British bank execs say “ho hum, ol’ chap! What credit crunch?” Dealbook today, cited a survey conducted by a consulting firm called the Hay Group. According to the data, over half of the financial firms surveyed, said that the top executives have decided to make no changes in their company’s strategies, to attempt to compensate for the current market slowdown. What’s more, is that only 38% surveyed said that they “see the market woes as a threat.” The financial service sector leader for the Hay Group added his commentary, stating “The sector is sleepwalking into a period of extreme turbulence which is likely to result in some serious damage to those organizations that persist in neglecting proper preparations.”
Lehman Brothers is like a ship bouncing around in rough waters. Last month, it was rumored that the firm was being eyed by Blackstone, HSBC and Barclays, as a possible takeover target. It was recently in negotiations with a South Korean bank to sell half of its holdings. Apparently the deal died before the terms could be finalized. According to Dealbook, takeover rumors are flying again today. Dealbook has learned that “Theodore Janulis, the global head of Lehman’s mortgage capital division, and Richard McKinney, its head of American securitized products, will be leaving the firm.” The meat of the article, however, is the alleged reason for the upgrade in stock rating today. Dealbook reports that Richard X. Bove of Ladenburg Thalman sent a note to his clients, listing the reason for upgrade “Hostile takeover now a possibility.” The reasoning behind this prediction is unclear, but Dealbookspeculates that it could be based on the failed negotiations with the South Korean buyer. More rumormongering? I guess we will see.
As the debate on the best way to fix Fannie Mae and Freddie Mac, continues, one thing is for sure… They are both going to change, big time. Ideas for two quasi-governmental entities include: Reverting to complete governmental control; Breaking them into smaller entities; Phasing them out completely; Limiting their functions and; Limiting their borrowing ability. Why not all of the above?
What better way to chap one’s own hide, than to have a fart lighting contest with one’s cousin? The Telegraph UK, reports that a boy was taken to the hospital for treatment of burns resulting from a blue dart contest. The boy was reportedly having a fart lighting contest in the garden with his cousin. Unfortunately for the winner, he was standing near a gasoline can, the fumes of which were ignited by the boys blue dart. The resulting flash fire, caused “18 per cent burns to the backs of his legs and his thumb.” It looks like he may have to learn to work the lighter with his other hand, until he can recover.
The economy starts to tank: First the bankers lose their jobs, then the lawyers lose their jobs. Now, according to DealBook, Nannies are losing jobs at a staggering rate. Ouch! The world is just a sick and cruel place when people can’t afford to hire someone else to raise their kids anymore. Where is the justice?!
Say it ain’t so! Mrs. Fields Cookies is the latest victim of the non-recession, economic slump. According to DealBook, Mrs. Fields Famous Brands will be filing a chapter 11 bankruptcy petition, to restructure the company. Part of the plan includes minimizing losses at the retail locations, by letting go all of the pleasantly plump employees who work in the kitchens. Ok, that last part was totally made up. But it seems sensible. Imagine how much capital loss probably occurs from employees cramming the product down their throat, cookie monster style, while nobody is looking. Maybe not, but the image is entertaining.
American Airlines, the first carrier to start charging for checked baggage, and the owner of a defunct computer system that left hundreds grounded, and others without luggage, earlier this year, will now be slapped with a huge fine by the FAA. According to the WSJ, the FAA is imposing $7.1 Million in fines on the airline for “allegedly violating employee drug- and alcohol-testing procedures and knowingly flying airplanes that broke maintenance regulations.” Lets hope that they personnel that failed the drug tests were the ones who screwed up the computer system, not the ones flying the planes. The fine that the FAA is proposing, would be of of it’s largest, ever. The WSJ reports that the FAA estimates “in total, the FAA said American flew passengers on 58 flights in aircraft that weren’t fit for service.” This doesn’t really come as a surprise, given the portion of the fleet that was grounded in March of this year, while all of the wiring in the 300 MD-80 landing gear had to be re-done. Keep up the good work, American. If the fuel prices don’t kill you, the bullet wound in your foot might.
Finally, some good news from Wall Street. JPMorgan Chase raised 1.6 Billion in hybrid securities yesterday. The offering, pays out at 8.625% and contains a mixture of equities and bonds. Hold your breath and cross your fingers that they perform well, and that there is more to come.
Apparently the Red Army isn’t a fan of the free press. In this footage from LiveLeak, a Georgian reporter is shot by a sniper as she reports from the field. Luckily for her, the bullet only grazes her arm.
While the rest of the world’s banks are failing, trying to raise liquidity, trying to keep from failing and freaking out about all of the above, British bank execs say “ho hum, ol’ chap! What credit crunch?” Dealbook today, cited a survey conducted by a consulting firm called the Hay Group. According to the data, over half of the financial firms surveyed, said that the top executives have decided to make no changes in their company’s strategies, to attempt to compensate for the current market slowdown. What’s more, is that only 38% surveyed said that they “see the market woes as a threat.” The financial service sector leader for the Hay Group added his commentary, stating “The sector is sleepwalking into a period of extreme turbulence which is likely to result in some serious damage to those organizations that persist in neglecting proper preparations.”
