Apr 20, 2010
SEC Files Emergency Action to Halt Fraudulent Scheme at Albany-Based Firm
Tue, 20 Apr 2010 13:55:57 -0500
The Securities and Exchange Commission today filed an emergency enforcement action to halt a fraudulent scheme being orchestrated by two co-owners of an Albany, N.Y.-based firm who misused investor money to fund their struggling business operations and meet ever-increasing liquidity needs. The SEC has obtained a court order to freeze their assets.
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Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.
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Blankfein's Ultimate Test?
Why the company appears to be rallying around Lloyd Blankfein, with Susanne Craig, Wall Street Journal.
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Geithner on Lehman Bankruptcy
Treasury Secretary Timothy Geithner gives his opening statement on the public policy issues raised by the Lehman Brothers Bankruptcy Examiner report.
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First on CNBC: IMAX Rides On 3D TV Wave
3D TVs will take off, believes Rich Gelfond, CEO of IMAX. He tells Ajay Kapur of Mirae Asset Securities, CNBC's Karen Tso, Kaori Enjoji, Bernard Lo & Martin Soong how IMAX plans to ride on this new wave in home entertainment.
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Switching On to 3D
Japanese TV makers are hoping the 3D phenomenon will be the next revolution in home viewing. As CNBC Kaori Enjoji reports, consumer electronics giants hope 3D will do for TV, what colour did back in the 60s.
» Watch Video
The New York Times
Tue, April 20, 2010 -- 5:42 PM ET
British Authorities Reopen Airspace
Britain reopened its airspace Tuesday evening as British
Airways said a flight had arrived at London's Heathrow
Airport, an indication that the worst of the air traffic
crisis plaguing Europe may be coming to an end.
"The Civil Aviation Authority has approved the opening of UK
airspace from 22:00 today," or 5 p.m. New York time, said a
statement from Heathrow Airport.
GovDelivery, Inc. sending on behalf of Securities and Exchange Commission · 100 F Street, NE · Washington DC 20549 · 202-942-8088
The SEC News DigestThe SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
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|Evening Market Wrap Tue Apr 20 17:01 2010|| |
Apr 20, 2010 Stocks Driven Higher By Strong Corporate Earnings - U.S. Commentary Stocks rose by notable margins on Tuesday, as a mostly upbeat series of corporate earnings reports, led by embattled Goldman Sachs (GS), generated buying interest. The major averages all closed in positive territory, inching back towards their recent highs after Friday's sell-off. Full Article
Apr 20, 2010 SUPERVALU Swings To Q4 Profit, Guides FY11; Announces Board ChangesGrocery retailer SUPERVALU Inc. (SVU) Tuesday reported a turn to profit in the fourth quarter from a loss last year, helped essentially by lower one-time charges and a reduction in costs. On an adjusted basis, earnings declined from last year, reflecting lower retail food and supply chain services sales and a drop in identical store sales. Full Article
Apr 20, 2010 Marshall & Ilsley Q1 Loss Widens; Shares UpFinancial services provider Marshall & Ilsley Corp. (MI) on Tuesday reported a wider net loss for the first quarter, despite an increase in net interest income, non-interest revenues and improved interest margins. Nevertheless, loss for the quarter came in better than expectations, sending Marshall & Ilsley shares up by more than 7% on the New York Stock Exchange. Full Article
Apr 20, 2010 Forest Laboratories Q4 Profit Falls, Guides FY11 EPS Below ViewPharmaceutical company Forest Laboratories, Inc. (FRX) Tuesday reported a decline in profit for the fourth quarter, impacted by one-time product licensing charges and higher research and development expenses, notwithstanding higher revenue. On an adjusted basis, net income improved from last year, but missed Street view by a penny. Full Article
Apr 20, 2010 Delta Air Lines Q1 Loss Narrows; Sees Profit In Q2Delta Air Lines, Inc. (DAL), the first of the large US airlines to announce first-quarter results, reported Tuesday a narrower year-over-year loss for the first quarter, reflecting lower charges and a 2% revenue growth. Adjusted loss per share for the quarter narrowed and came in line with analysts' expectations. Full Article
Apr 20, 2010 TD Ameritrade Q2 Profit Rises; Cuts FY10 OutlookOnline brokerage firm TD Ameritrade Holding Corp. (AMTD) on Tuesday reported a 23% increase in profit for the second quarter, helped by a one-time tax benefit and the acquisition of options broker thinkorswim Group Inc. last year. However, excluding items, earnings per share for the quarter missed analysts' consensus estimate by a penny. Full Article
Apr 20, 2010 Johnson & Johnson Q1 Profit Rises, Tops Street View; Trims FY10 EPS ForecastHealthcare giant Johnson & Johnson (JNJ) Tuesday reported a rise in its first-quarter profit, helped by a gain from litigation matters. On an adjusted basis, earnings increased from last year and came in above analysts' forecast. The company's sales were favored by strong international sales and positive currency impact. Full Article
Apr 20, 2010 U.S. Bancorp Q1 Profit Up, In Line With Street ViewFinancial services provider U.S. Bancorp (USB) reported Tuesday a double-digit growth in its first-quarter profit, driven by higher net revenues, moderating credit costs and on-going operational efficiency. Quarterly earnings per share came in line with market projections, while top line missed analysts' view. Full Article
Apr 20, 2010 Northern Trust Q1 Profit IncreasesInvestment management and banking solutions provider Northern Trust Corp. (NTRS) reported Tuesday an increase in first-quarter profit, helped by economic recovery and growth in client base. However, earnings per share and revenues came in below analysts' expectations. Full Article
Apr 20, 2010 Illinois Tool Works Posts Q1 Profit; Lifts FY10 EPS ForecastIndustrial products maker Illinois Tool Works Inc. (ITW) Tuesday reported a profit for the first quarter, as revenues grew over 14%, helped by improvement in certain end markets. Adjusted profit topped Wall Street expectation. Further, the company issued second-quarter earnings outlook and raised its full-year profit forecast. Full Article
Apr 20, 2010 Bernanke: Fed Was Not A Supervisor Of Lehman BrothersFederal Reserve Chairman Ben Bernanke told lawmakers Tuesday that the central bank was not the supervisor of failed financial firm Lehman Brothers, which collapsed at the onset of the 2008 financial crisis. In prepared remarks released before his testimony before the House Financial Services Committee, Bernanke said that Lehman Brothers did not own a commercial bank. Full Article
Apr 20, 2010 Amphenol Q1 Profit Rises, Beats Estimate; Guides Q2Fiber optic connectors and interconnect systems maker Amphenol Corp. (APH) on Tuesday reported an increase in first quarter net profit, which surpassed Street view, benefited primarily by higher revenues and improved margins. The company also guided its second quarter earnings and revenues above analysts estimate. Full Article
Apr 20, 2010 Biogen Idec Q1 Profit DropsBiotechnology company Biogen Idec Inc. (BIIB) Tuesday reported a decline in profit for the first quarter, impacted by one-time charges and higher research and development expenses. On a per share basis, adjusted earnings rose 3%, yet missed Street view. Total revenues increased 7%, helped mainly by sales of its multiple sclerosis drug Tysabri. Full Article
Apr 20, 2010 Paccar Q1 Profit Rises As Revenues GrowLight, medium, and heavy duty truck maker Paccar, Inc. (PCAR) reported a year-over-year rise in profit for the first quarter, boosted by stronger truck sales in North America and an improvement in financial services profits. Earnings per share for the quarter rose and topped analysts' expectations by four cents. Full Article
Apr 20, 2010 Coca-Cola Q1 Profit Rises On International GrowthBeverages giant Coca-Cola Co. (KO) on Tuesday reported a 20% increase in net profit for the first quarter, helped by strong growth in its international markets while North American sales continued to decline. Adjusted earnings per share grew 23% and topped analysts' consensus estimate, as the quarter also benefited from the relative weakness of the U.S. dollar against other currencies. Full Article
Apr 20, 2010 State Street Q1 Profit Rises 11%Institutional investor State Street Corp. (STT) Tuesday reported a 11% increase in first-quarter profit, helped by higher fee revenues and a decline in provision for bad loans. Adjusted earnings matched Wall Street view. Looking ahead, the company reaffirmed its 2010 operating-basis earnings per share expectation. Full Article
Apr 20, 2010 Bank Of New York Mellon Posts Higher Profit In Q1Bank of New York Mellon Corp. (BK) Tuesday reported higher profit, driven by an increase in assets under custody and fee revenue growth. The bank's first-quarter net income applicable to common shareholders totaled $559 million, or $0.46 per share, compared with $322 million or $0.28 per common share, last year. Full Article
Apr 20, 2010 Goldman Sachs Q1 Profit SoarsFinancial services firm Goldman Sachs Group Inc. (GS) on Tuesday posted higher profit for the first quarter, reflecting increased revenues primarily at its investment banking as well as trading and principal investments operations. Further, the company declared a dividend of $0.35 per common share. Full Article
Apr 20, 2010 Supreme Court Strikes Down Law Banning Videos Depicting Cruelty To AnimalsThe Supreme Court ruled Tuesday to strike down a federal law that banned videos depicting graphic and violent acts against animals. In a 8-1 decision, the Court threw out the conviction of Robert Stevens, who had been sentenced to three years in prison due to videos he made showing pit bull fights. Full Article
Apr 20, 2010 DeMint Endorses Stutzman In Indiana Republican Senate PrimarySenator Jim DeMint, R-S.C., announced Tuesday that he is endorsing Indiana state Senator Marlin Stutzman in the Indiana Republican Senate primary instead of former Senator Dan Coats, who had been recruited by national Republican officials to run for the seat. "Marlin Stutzman is the conservative outsider in the Indiana Senate race who will take on the Washington establishment," DeMint said. Full Article
Apr 20, 2010 House Abandons D.C. Voting Rights LegislationThe House dropped efforts Tuesday to take up legislation that would have given Washington, D.C. a voting member of the House. House Majority Leader Steny Hoyer, D-Md., suggested that the decision to drop the effort was due to a provision added in the Senate that would have nearly eliminated the tough gun laws currently in place in D.C., saying, "The price was too high." Full Article
Apr 20, 2010 Crist Says He Is "Listening" To Suggestions That He Run As An IndependentRepublican Florida Governor Charlie Crist told a Tampa television station Monday that he is listening to suggestions that he run for U.S. Senate as an Independent. "I can tell you I'm getting a lot of advice in that direction," Crist said in an interview with ABC affiliate WFTS. Full Article
Apr 20, 2010 Democrats And Republicans In War Of Words Over Financial ReformSenate Democrats and Republicans have engaged in a war of words over the proposed financial regulatory reform that the Senate is expected to vote on in the coming weeks. In a letter to Senate Minority Leader Mitch McConnell, R-Ken., on Tuesday, Senate Majority Leader Harry Reid, D-Nev., and Senate Banking Committee Chairman Chris Dodd, D-Conn., accused Republicans of "mischaracterizing the legislation and protecting Wall Street." Full ArticleApr 20, 2010 Cantor Backs Rubio Over Gov. Crist In Florida Senate PrimaryHouse Minority Whip Eric Cantor, R-Virg., Tuesday became the latest in a growing list of Republicans to endorse Marco Rubio over Gov. Charlie Crist for the party nomination in the U.S. Senate race in Florida. Cantor joins with former Republican presidential contenders Mitt Romney, Rudy Giuliani and Mike Huckabee and Sens. Jim DeMint, R-S.C., and Tom Coburn, R-Okla., in backing Rubio's conservative challenge to Crist. Full Article
The Supreme Court struck down a federal law Tuesday aimed at banning videos depicting graphic violence against animals, saying that it violates the constitutional right to free speech.
The first time I met Dorothy Height, she seemed out of place.
TYLERTOWN, MISS. -- During her elementary school years in this rural Mississippi town, Addreal Harness, a competitive teenager with plans to be a doctor, said her classes had about the same numbers of white and black students. It was a fact she took little note of until the white kids began leaving.
The Food and Drug Administration is planning an unprecedented effort to gradually reduce the salt consumed each day by Americans, saying that less sodium in everything from soup to nuts would prevent thousands of deaths from hypertension and heart disease. The initiative, to be launched this year,...
"Respected U.S. newsman Larry King has filed for divorce from his country-singer wife, Shawn Southwick," the wire service story says dryly. It seems simple enough until you stop to wonder: Is "respected U.S. newsman Larry King" any relation to that guy who has a weeknight talk show on CNN?
Why voters should pick McCain over Hayworth.
Dorothy I. Height, 98, a founding matriarch of the American civil rights movement whose crusade for racial justice and gender equality spanned more than six decades, died early Tuesday morning of natural causes, a spokesperson for the National Council of Negro Women said.
LONDON -- Several European nations reopened their airports Tuesday after five days of closures because of volcanic ash clouds, but others maintained flight restrictions amid reports that massive new ash emissions from an erupting volcano in Iceland were headed toward the region.
Those who exploit uneasiness better worry about collateral damage.
They came in camouflage and ammunition vests, carrying AK-47s slung over their shoulders and pistols in their hip holsters. They were in Northern Virginia, on the 15th anniversary of the Oklahoma City bombing, to stand on federal land and to advocate violence against the U.S. government.
NYT: Aftyernoon Business Update, Goldman Inquiry Comes at Key Time for U.K. Regulator. April 20th, 2010
Afternoon Business Update
Goldman Inquiry Comes at Key Time for U.K. Regulator
By JULIA WERDIGIER
The F.S.A. is under pressure to present results for its Goldman inquiry after the financial crisis badly damaged its reputation.
Airbus’s Parent to Bid on Aerial Tanker Contract
By CHRISTOPHER DREW
The decision by EADS to bid for the contract worth at least $35 billion came six weeks after its partner, the Northrop Grumman, dropped out of the contest.
Upbeat Earnings Help Wall Street
By CHRISTINE HAUSER
Renewed confidence about energy and banking stocks helped push Wall Street higher.
Schwab Settles Suit Over Mortgage-Backed Securities
By JAVIER C. HERNANDEZ
The brokerage firm will pay $200 million to resolve a class-action lawsuit filed by investors who say they were misled.
Privacy Commissioners Take Aim at Google
By BRAD STONE
As officials of nine countries criticized Google's privacy practices, the company released a new tool showing which governments want to peek at user data.
• More Business News
Top Business News
- Report: Volcano Ash Cloud Costs U.S. $650 Million
- Goldman Earns $3.3B In 1Q As Fraud Case Looms
- Goldman Sachs Faces U.K. Investigation
- Iceland and Goldman: 2 Eruptions Can't Stop A Bull Market
- Report: AIG Ponders Action against Goldman Sachs
- Spitzer: SEC Likely to Win Against Goldman
- Goldman Sachs Hires Ex-White House Counsel
- GOP Decries "Partisan" Financial Reform Bill
- More Headlines
FDIC : Press Release,FDIC Closes on Two Note Offerings Backed by Loans and Real Estate from Corus Bank and Franklin Bank, S.S.B. April 20th, 2010
Press ReleaseFDIC Closes on Two Note Offerings Backed by Loans and Real Estate from Corus Bank and Franklin Bank, S.S.B
|FOR IMMEDIATE RELEASE |
April 20, 2010
Andrew Gray (202) 898-7192
The Federal Deposit Insurance Corporation (FDIC) closed on two note offerings backed by performing and non-performing construction loans, residential loans and real estate owned (REO) assets formerly held by the FDIC as receiver for Corus Bank, N.A., Chicago, and Franklin Bank, S.S.B, Houston. The sales were conducted through private offerings to qualified purchasers.
The $1.38 billion of Corus notes are backed by performing and non-performing construction loans and REO assets with a related aggregate unpaid balance of approximately $4.5 billion. The notes were originally issued in October 2009 to the Corus Bank receivership in connection with the creation of an LLC to hold the aforementioned assets, and are guaranteed by the FDIC in its corporate capacity. The FDIC still retains its 60% equity interest issued by the LLC, and ST Residential, formed by a consortium of investors led by Starwood Capital Group, still owns the 40% equity interest sold to it by the FDIC in October 2009.
The sale of the Corus notes sale features three classes of notes with maturities of approximately 1.5 years, 2.5 years, and 3.5 years from the closing date. The notes do not accrue interest or make payment prior to maturity, but rather are sold at a discount to their principal balance and allow investors to earn the difference between the sale price and the principal balance paid at maturity. The timely payment of principal due on the notes is guaranteed by the FDIC, and that guaranty is backed by the full faith and credit of the United States.
The $653 million of Franklin notes are backed by performing and non-performing residential loans and REO assets with a related aggregate unpaid balance of approximately $1.22 billion. The notes, which were restructured for the current transaction, were originally issued in September 2009 to the Franklin Bank receivership in connection with the creation of an LLC to hold the aforementioned assets, and are guaranteed by the FDIC in its corporate capacity and that guaranty is backed by the full faith and credit of the United States. This original transaction was the pilot sale of receivership assets to test the funding mechanism of the Legacy Loans Program. The FDIC still retains its 50% equity interest issued by the LLC, and RCS Franklin Venture still owns the 50% equity interest sold to it by the FDIC in September 2009.
Proceeds in the amount of $1.31 billion generated from the notes sale will go to the Corus Bank receivership, and proceeds in the amount of $652 million (including accrued interest) generated from the notes sale will go to Franklin Bank receivership.
Thus, the note sales will increase recoveries for the two receiverships and recover substantial funds for the FDIC's Deposit Insurance Fund (DIF).
Barclays Capital Inc., New York, New York served as the sole bookrunner, structuring agent, and financial advisor to the FDIC on the sale of both notes, and also as structuring agent and financial advisor to the FDIC for the October 2009 structured sale of an equity interest in the Corus Bank receivership assets to ST Residential.
These offerings mark the second and third sales of structured sale notes by the FDIC since the early 1990s, and the second and third sale of FDIC guaranteed debt backed by the full faith and credit of the United States.
# # #Attachments:
Deal Diagrams - PDF (PDF Help)
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,012 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-83-2010
Personal Finance Daily
APRIL 20, 2010
Tuesday's Personal Finance stories
You can scar your kids for life in a whole lot of ways, sometimes without even realizing it. That's especially true in these days of economic consternation, when extended joblessness and extra pressure on family finances can lead to a lot of unintended psychological consequences for children.
But as dangerous as money troubles can be, they can also provide great lessons that will actually give your kids a solid grounding in financial matters -- if the lessons are taught properly, that is. The key is to be honest about your family situation but to do so in an age-appropriate way.
We know from the 1930s that tough times can shape a generation: The Great Depression babies generally maintained their thriftiness throughout life, especially when compared with the spendthrift baby boomers. How similar an experience is shaping up now is something we won't really know for years.
Hopefully were molding enlightened Great Recession babies who won't repeat our mistakes of personal financial extravagance and runaway Wall Street greed. But there's also the chance we'll turn out nothing but a bunch of embittered Scrooges.
-- Steve Kerch, assistant managing editor
Recession lessons that will last kids a lifetime
While my seven-month-old is too young to understand that she's growing up during one of the worst economies in decades, Dan and I do our best to remain upbeat around our baby. For families with older kids, experts say these tough times are a good occasion to teach children about financial realities, and these are lessons that can last a lifetime.
See Diary of a Recession Baby.
The game plan on savings
The Game Plan takes a look at how some individuals and families are saving for retirement -- and then asks financial advisers to comment on those strategies. You're invited to share your own retirement-savings plans by sending an email to firstname.lastname@example.org.
See Family Finance.
Payday loans come under fire
State governments are cracking down on payday loans. MarketWatch.com Radio's Charlie Turner reports that regulators accuse the industry of trapping borrowers in a cycle of debt.
Listen to Radio Report.
President Obama vs. Goldman's Reaganomics
Ancient stories oft retold: Blame the mythic gods for today's political crisis, for Wall Street's 2008 meltdown, America's $23.7 trillion new debt, for Beck, Palin, the Tea party, and now for Goldman and the resurgence of Reaganomics ... Yes, the Kraken was released, ravaging American politics.
See Paul B. Farrell.
Goldman fallout felt in financial ETFs
Activity in exchange-traded funds tracking financial stocks has exploded in the wake of the Securities and Exchange Commission's legal bombshell fired at Goldman Sachs Group Inc.
See ETF Investing.
Watch out for hidden tax traps inside ETFs
Does ETF stand for "esoterically taxed fund"? Many investors may just have finished wading through the tax reporting on commodity or currency funds for the first time and found it a slog. They also may have learned that an investment's taxation can by itself make the difference between a winner and a loser.
See Jason Zweig.
Best emerging-market bonds
Flows into emerging-market debt funds have already reached a record annual high, and the second quarter isn't even over. J. P. Morgan's head of emerging market research, Joyce Chang, says it's a "Berlin Wall-moment," as the world for this asset class is changing. She recommends high-risk sovereign bonds, high-grade corporates, and sees a bubble as far off.
Watch Video Report.
Volcano fee? Experts say watch those airfares
The volcanic eruption in Iceland will prove costly to air travelers long after the ash cloud clears. Travel expert Joe Brancatelli tells MarketWatch News Break that the travel disruptions will be reflected in higher air fares.
Listen to Radio Report.
Hoteliers also grappling with volcano disruption
The volcanic eruption in Iceland that grounded thousands of flights to and from Europe, wreaking havoc on airline balance sheets, seemingly has yet to bite the hotel business, although it has created many operational challenges for some of the biggest operators.
Flights attempt to restart before next ash cloud
The pressure was put on airports in northeast Britain earlier today to get as many planes out of the country during a window of opportunity while the volcanic ash clouds thin.
Watch Video Report.
Coming out in finance -- is it a good idea?
Kleinwort Benson chief executive Robert Taylor recently got an email from an employee asking if everyone in the firm shared his tolerance of homosexuality -- and that his name be kept secret. The question came on the heels of an essay Taylor had just published in the London Evening Standard encouraging people to come out of the closet at work.
Can e-readers still compete with the iPad?
When Apple Inc. launched its touch-screen tablet device known as the iPad earlier this month, many began ringing the death knell for so-called e-readers -- most notably, the popular Amazon Kindle.
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