Fed plans for a new bail out/SEC bans short selling

Today US markets are trading at high premium. The federal Government came forward again to contain the credit crunch. Treasury Secretary Henry Paulson said on Friday "The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy," said Paulson. He added that the government would take on hundreds of billions of dollars in obligations. The team will work on this in the weekend and come out with complete details of the plan. Read more

September 19, 2008 | Filed Under Market Analysis | Leave a Comment

Lloyds TSB takes over Halifax Bank of Scotland (HBOS)

The British bank and insurance company, Halifax Bank of Scotland (HBOS), which was created by the merger of Halifax and bank of Scotland, is now taken over by Lloyds TSB, one of the biggest UK banks. HBOS is the biggest home loan lender in UK and got affected by the credit crunch of sub-prime mortgage business in US.

Lloyds TSB and HBOS were rivals in UK. Lloyds’ takeover deal was settled at 232 pence per share. With this deal Lloyds will become Britain’s third-largest bank behind Royal Bank of Scotland and HSBC.

It’s expected that more than 40,000 jobs could be lost because of this deal. The combined employee strength of these two companies are 145,000. Hundreds of branches could be shut down. Read more

September 18, 2008 | Filed Under Market Analysis | Leave a Comment

Washington Mutual for Sale

Washington Mutual (WM) , the US mortgage giant which is under immense plenty of losses is all set to be up for sale. The news is that it has commissioned Goldman and Morgan Stanley (the two banks whose situation is better than all investment banks) to conduct a search for possible buyers. The suitable buyers could be Citigroup, HSBC Holding, JP Morgan Chase and Wells Fargo (5th biggest US bank).

September 18, 2008 | Filed Under Market Analysis | Leave a Comment

Barclays to buy Lehman’s Investment wing in US

Some relief to the employees of Lehman in US; The British bank Barclays agreed to buy Lehman’s US investment banking and capital markets businesses for £140 million. Barclays will also buy the New York headquarters of Lehman as well as two other outlets in New Jersey for £800 million. Most of the employees out of 10,000 who work for these businesses will move to Barclays. The bank will raise at least £600 million from investors to part-fund the deal.

September 18, 2008 | Filed Under Market Analysis | Leave a Comment

Morgan Stanley and Goldman Sachs shares tumbled

The two biggest investment banks of Wall Street Morgan Stanley and Goldman Sachs shares tumbled on Wednesday as the situation got worsened with the recent developments of financial crisis. Morgan’s shares melted by 43% and Goldman’s by 27% on Wednesday raising questions about the future of these companies.

These biggies recently have shown good profits despite the financial disastrous. But the investors and traders had other opinions. These two investment banks have already started looking to join hands with commercial banks as they don’t want to be victims of this ugly financial crisis. Read more

September 18, 2008 | Filed Under Market Analysis | Leave a Comment

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