Financial Service News

“While it will be difficult to structure very large leveraged transactions in corporate private equity and real estate until the credit markets improve, pricing of assets is more favorable”

Blackstone Group LP, one of the world's largest private-equity firms, on Monday reported a third-quarter loss on charges related to its initial public offering this year.

Blackstone reported a loss of $113.2 million, or 44 cents per share. The loss included the impact of $802.6 million of non-cash charges for compensation and other items linked to its IPO.

Last year, the company reported a profit of $372.5 million when it was a private concern. Revenue rose to $526.7 million from $461.5 million a year earlier. Read more

Oak Hill Capital Partners agreed to buy Firth Rixson Plc, the British steel processing company owned by Carlyle Group Inc. via Bloomberg.com

WESTPAC and ANZ Bank have passed on last week's official interest rate rise to their variable home loan customers, following on from the other big banks. via News.com.au

“Those two countries maintain the same position as Japan does against the violent action of terrorists”

Japanese whalers have refused to say if they will target white humpback whales such as Migaloo, which annually travels along the east coast of Australia, in their research slaughter this summer. via Manawatu Evening Standard

Luqman Arnold, the former head of British banking group Abbey, has assembled a team and is emerging as a potential bidder for Britain's troubled mortgage bank Northern Rock , British Sunday newspapers said. via Reuters

Robert Kaplan, a Harvard professor and former vice chairman of Goldman Sachs Group Inc. via Boston.com

“Leaving aside hedge movements, CIBC's remaining exposure amounts to (about) C$1.75 per share”

Canadian Imperial Bank of Commerce will take a $463-million writedown on collateralized debt obligations and residential mortgage-backed securities related to the U.S. residential mortgage market. via Sympatico Finance

Visa Inc. hopes to cash in on its massive credit and debit card network by raising up to $10 billion in what would be the second largest initial public offering of stock in U.S. history. via NewsOK.com

The U.S. economy is in for a rough winter and a better spring, Federal Reserve Chairman Ben Bernanke told congress today.

“Most people under the age of 35 probably do not see a bank in the same way that they may see a Vanguard or some institution like that”

Bank of America Corp. plans to launch a $35 million advertising campaign this weekend touting its retirement programs, making a marketing push into a business currently dominated by more specialized financial firms.

'Americans' retirement needs are continuing to intensify due to longer life expectancy, rising health care costs and the lack of comprehensive, readily accessible guidance,' said Jeff Carney, president of Bank of America's Retirement and Global Wealth and Investment Management Client Solutions. Read more

In a securities filing this morning, Wachovia Corp. said it took $1.1 billion more in writedowns in October after further deterioration of the credit markets.

The disclosure comes after the Charlotte bank took a $1.3 billion hit in the third quarter after writing down the value of loans and securities. Other banks such as Citigroup Inc. and Morgan Stanley & Co. have been making similar revelations in recent weeks.

Wachovia's losses stem from the diminishing value of so-called collateralized debt obligations, or CDOs. These are complex securities formed from slices of pools of underlying assets such as mortgages. The bank said the CDOs were hurt by the falling value of securities backed by subprime mortgages. Read more

Charles Prince is leaving Citigroup Inc. at the end of the year with approximately $95 million in stock, a bonus and other benefits, but the amount could fall if the embattled company's shares tumble even ... via PR-inside.com

Morgan Stanley said its fourth-quarter profit will be reduced by US$2.5 billion in write-downs related to the ongoing credit crisis, making it the latest Wall Street investment house to admit massive losses. via The Taipei Times

Stocks extended their losses Thursday, a day after tumbling amid concerns about continuing credit woes, a weakening dollar and rising oil prices.

Some investors hunted for bargains in the first minutes of trading, but the gains soon evaporated. Good news, including a narrower-than-expected third-quarter loss at Ford Motor Co. and word of a buyout offer in the mining sector, was unable to sustain higher prices.

The market had fresh reason for concern about toxicity within the credit markets. Morgan Stanley issued a detailed accounting of its exposure to subprime debt, eliminating some of the uncertainty that has wracked Wall Street to varying degrees in recent months. But Morgan said late Wednesday its fourth-quarter profit could be reduced by $2.5 billion in write-downs related to troubles in the credit market, a reminder of the widespread damage from soured loans. Read more

“The size of this settlement, along with earlier court rulings, underscores the seriousness of the damage done by the illegal boycott”

New Yoke - Visa agreed to pay $2.25 billion to American Express to settle a lawsuit alleging collusion to block rival bank-issued credit cards in the United States, the companies said on Wednesday. via Business Report

Precious metals soared on Wednesday, supported by a tumbling dollar and record oil prices, with gold nearing its all-time peak, platinum setting a record and silver touching its highest level in 27 years...

“Knowing this, Fannie Mae and Freddie Mac cannot afford to continue buying Washington Mutual mortgages unless they are sure these loans are based on reliable and independent appraisals.”

New York Attorney General Andrew Cuomo said Wednesday that he has issued subpoenas to government-sponsored lenders Fannie Mae and Freddie Mac in his investigation into what he claims are conflicts of interest ... via Ann Arbor News

“We're still gathering information and can't provide specific comment right now”

Police detained 19 people Tuesday for allegedly taking part in a scheme to help large Brazilian companies evade taxes by laundering money through Swiss banks UBS AG and Credit Suisse Group and the U.S.-based ... via The Post-Standard

Analysts on Tuesday lowered fourth-quarter earnings estimates for Charlotte's big banks, predicting more writedowns in their capital markets businesses. The move comes after Citigroup Inc. on Monday projected more losses.

** Bank of America: Friedman Billings Ramsey analyst Gary Townsend said in a report that Bank of America Corp. continues to hold asset-backed mortgage securities that could be marked down in value in the fourth quarter. He expects the bank to earn $1.10 per share in the quarter, down from his previous estimate of $1.15. He kept his 'outperform' rating on the stock. Read more

Exporters were given another whack today when the New Zealand dollar shot above US78c in hectic trading after the Reserve Bank of Australia hiked interest rates. via NZ Herald