FeedPosted Nov 6th 2009 5:00PM by Connie Madon (RSS feed)
Filed under: Management, Industry, Market matters, Money and Finance Today, Politics, Headline news, Federal Reserve, Financial Crisis
US Senator Bernie Sanders, independent from Vermont, is known for his straightforward and unbiased positions.
His new legislative proposal is to break up big banks that are deemed "too big to fail." To quote Mr. Sanders: "if an institution is too big to fail, it is too big to exist. We should break them up so they are no longer in a position to bring down our entire economy."
Continue reading Senator Sanders proposes legislation to break up large banks
Posted Nov 4th 2009 6:20PM by Connie Madon (RSS feed)
Filed under: Forecasts, Bad news, Consumer experience, Money and Finance Today, Economic data, Personal finance, Housing, Financial Crisis
The National Bankruptcy Research Center reported that there were 135,914 bankruptcies in October, up 9%. One third of the bankruptcies were filed under Chapter 13. Chapter 13 requires that the court set up a five year repayment plan for debts owed.
In addition business bankruptcies were up 7% for the same period.The forecast is for 1.4 million bankruptcies in 2009, the highest since 2005. In that year Congress revamped the bankruptcy laws to make it more difficult to wipe out all of a person's debts. There was a rush of filings in the months just before the new law was enacted.
Continue reading Personal bankruptcies skyrocket 9% in October
Posted Nov 3rd 2009 3:40PM by Tom Johansmeyer (RSS feed)
Filed under: Indices, Economic data, Housing, Recession, Financial Crisis
Investment-grade commercial real estate prices gained 4.4% in the third quarter of this year. But, it's hard to tell if -- like brief blips of hope we've seen in consumer spending, unemployment and even luxury meals in London -- this is a change in the market or just a tease.
This increase in the MIT Center for Real Estate's transaction-based index (TBI) is the first up-tick in more than a year and the biggest gain since the middle of 2007. One quarter doesn't make a trend, cautions David Geltner, director of research at the MIT Center for Real Estate, but he says, "this is the strongest sign of a bottom that we've had in two years." The TBI reached 36.5% below its 2007 peak last quarter, up from 39% from the high-water mark in mid-2007.
Continue reading Commercial real estate comeback
Posted Nov 3rd 2009 7:45AM by Melly Alazraki (RSS feed)
Filed under: Before the bell, International markets, Market matters, Economic data, Lloyds TSB Group plc ADS (LYG), Federal Reserve, Financial Crisis

If on Monday investors were ready to bounce back from Friday's selloff, today stock futures are sharply lower, indicating U.S. stock markets are poised to slump at the open ahead of the Federal Reserve two-day policy meeting that begins today. Another rate hike from Australia, poor results from UBS and weak European markets weigh on sentiment.
Monday was a volatile session. Stocks rallied in the morning following a surprise profit from Ford (NYSE: S) and an upbeat home sales reading, but mostly due to October's manufacturing index that jumped to its highest level in three and a-half years. That didn't hold up, though and the Dow skidded to negative territory only to bounce back later in the afternoon as buyers came back in.
Continue reading Before the bell: Futures point to a sharply lower start
Posted Nov 2nd 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Forecasts, Politics, Recession, Financial Crisis
New York Times (NYSE:
NYT) columnist
Paul Krugman argues quite persuasively that the major problem with the fiscal stimulus package was that it was too small, given the financial crisis and the large economic crater the accompanying, pronounced recession created.
Further, the fiscal stimulus' many benefits -- including substantial job retention in essential public services such as education -- are harder to see and not likely to translate into too much political gain for President Obama and Congressional Democrats, he said. That's consistent with a political science axiom -- often repeated by U.S. Rep. Barney Frank, D-Massachusetts -- that
"Congress gets little credit or benefit for averting something." Indeed, retained jobs are hard to see, and the fact that a local public school system is is still operating with as many teachers is an accomplishment, but one that most American voters will take for granted, and not give Democrats credit for.
Continue reading Fiscal stimulus package's primary flaw: It was too small
Posted Nov 2nd 2009 8:00AM by Connie Madon (RSS feed)
Filed under: Press releases, Management, Industry, Annual meetings, Live coverage, Market matters, Headline news, Recession, Financial Crisis
Century-old CIT Group Inc filed for bankruptcy in the Southern District Court of New York on Sunday.
According to the terms of the bankruptcy, bondholders will hold new CIT Group Inc. (NYSE: CIT) debt worth about 70% of the face value of the old debt. Preferred creditors, including the U.S. government, will get money only after other creditors are paid back. Common shareholders will receive nothing.
In December 2008, the U.S. government invested $2.33 billion dollars in CIT under the Troubled Asset Relief Program (TARP).
Continue reading CIT files for prepackaged bankruptcy
Posted Nov 2nd 2009 7:35AM by Melly Alazraki (RSS feed)
Filed under: Before the bell, International markets, Ford Motor (F), Market matters, CIT Group (CIT), Economic data, Oil, Financial Crisis

U.S. stock futures were significantly higher Monday morning, with Wall Street ready to start November on a solid note following Friday's sharp selloff. This morning is indicative of the week ahead full of earnings and economic data. In addition, this week also features the Federal Reserve policy meeting.
On Friday, markets skidded some 2.5 percent as the fate of
CIT Group (NYSE:
CIT) hung in balance and the strength of the economic recovery, and with it the markets' rally, questioned. And after seven months winning streak, which took Wall Street over 50 percent higher from March lows, October finished in a down note.
Continue reading Before the bell: Stocks futures point to a solid start after CIT's failure, Ford's earnings
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