Newspaper wrap-up: Some banks consider selling money management units
Posted Jul 23rd 2008 8:50AM by Laurie Pasternack
Filed under: Newspapers, Magazines, Federal Natl Mtge (FNM)
.gif)
MAJOR PAPERS:
- The Wall Street Journal's "Fund Track" reported that some banks struggling to raise capital may sell their money management units. National City Corporation (NYSE: NCC) is selling its Allegiant Funds, Fifth Third Bancorp (NASDAQ: FITB) is considering selling its Fifth Third Asset Management, and KeyCorp (NYSE: KEY) will possibly sell its Victory Capital Management unit.
- The Wall Street Journal also reported that Andrew Cuomo, the New York state Attorney General, is preparing to file civil securities-fraud charges against UBS AG (NYSE: UBS), possibly as early as this week. Sources said the lawsuit may include allegations of malfeasance by senior UBS executives.
WEB SITES:
- Bloomberg reported that money manager John Paulson, the owner of Paulson & Co., is launching a hedge fund that will provide capital to financial firms which have been damaged by the housing crisis. Paulson, who wants to open the fund by December, used bets against the U.S. housing market to help him earn $3.7B in 2007.
- After U.S. lawmakers reached a deal on legislation to alleviate the housing recession, the House of Representatives will today vote on a rescue plan for Fannie Mae -- Federal National Mortgage Association (NYSE: FNM) -- and Freddie Mac -- Federal Home Loan Mortgage Corporation (NYSE: FRE). Representative Barney Frank said that the package, which increases the likelihood Treasury Secretary Henry Paulson will get the authority to inject capital into the two, is "fully acceptable," Bloomberg reported.
- Oil trading losses forced SemGroup LP, which used to be America's 12th largest private company, to declare bankruptcy yesterday. Reuters noted that SemGroup LP's parent company is SemGroup Energy Partners LP (NASDAQ: SGLP).
Tags: Andrew Cuomo, AndrewCuomo, Attorney General, AttorneyGeneral, Barney Frank, BarneyFrank, Fannie Mae, FannieMae, Fifth Third, Fifth Third Bancorp, FifthThird, FifthThirdBancorp, FITB, FNM, FRE, Freddie Mac, FreddieMac, Henry Paulson, HenryPaulson, John Paulson, JohnPaulson, KEY, KeyCorp, money management, MoneyManagement, National city, NationalCity, NCC, Paulson Co, PaulsonCo, securities fraud, SecuritiesFraud, SemGroup, SGLP, UBS, UBS AG, UbsAg
Before the bell: Wall Street headed higher; automakers, retailers in focus
Waiting for the other shoe to drop: The looming credit crisis
Bet on T&A with J&J (JNJ)
