HBOS backers face £300m losses on rights issue flop July 18, 2008 HBOS’s £4bn cash-call is today expected to be shunned by shareholders – making it one of the biggest ever failed rights issues. Shares in the bank staged a rally yesterday, rising 5 per cent to 268.25p – but despite clawing back some of the ground lost in recent days the stock still closed below the [...]
Wall Street giants hit by SEC probe into short-selling July 17, 2008 American regulators have subpoenaed top investment banks, including Goldman Sachs, Deutsche Bank and Merrill Lynch as part of an investigation into the suspected manipulation of Bear Stearns and Lehman Brothers shares. The US Securities and Exchange Commission (SEC) has also approached more than 50 hedge funds to obtain trading and communications data. The inquiry aims [...]
Merrill Lynch sells stake in Bloomberg July 17, 2008 Investment bank sells its 20 per cent stake in the media giant but keeps BlackRock US giants Merrill Lynch, today expected to reveal its fourth consecutive quarterly loss, has reached a deal to sell its stake in financial terminal and data provider Bloomberg for an estimated £2.2bn ($4.5bn). Merrill Lynch, which has a 20 per [...]
The perfect storm July 16, 2008 Higher than expected inflation figures and growing concerns about the banking sector knocked London’s FTSE 100 index of leading stocks down 2.4 per cent yesterday to under 5,200. The benchmark index has now fallen 23 per cent since a June 2007 high and is in clear bear market territory. Bank stocks, unsettled by fears that [...]
Bush calls for quick action on bank plan July 16, 2008 US President George W Bush urged Congress to act quickly on the government’s plan to shore up housing finance giants Fannie Mae and Freddie Mac yesterday. Speaking at a White House press conference as share prices across the world gyrated wildly, the President said of the two mortgage giants: “We must ensure they can continue [...]
Lehman shines in a turbulent day for the banks July 16, 2008 Lehman Brothers was one of the few banks to show a healthy rise in its share price yesterday – but only because of suggestions that its management, peeved by recent share price falls, were considering a buyout bid. Shares in Lehman, which have fallen 80 per cent so far this year, rose 13 per cent [...]
Rescue plan falls flat July 15, 2008 American mortgage giant Freddie Mac passed its first test of investor confidence yesterday as buyers flocked to its $3bn (£1.5bn) sale of securities just hours after the US government announced sweeping measures to prop-up the country’s largest mortgage finance companies. However, shares in Freddie Mac and its sister company Fannie Mae, which together own or [...]
Santander secures British expansion July 15, 2008 Standard Life, one of Alliance & Leicester’s largest shareholders believes the bank is being sold to Abbey National owner Santander at a “giveaway” price. Santander’s offer represents a 36 per cent premium to A&L’s share price on Friday, but it’s still well below the stock’s 1200p peak a year ago. Despite assurances from A&L chief [...]
Fire sale likely at Dawnay Day as £2bn empire teeters July 14, 2008 Dawnay Day, the privately owned financial services and property giant, faces the fire sale of many of its assets to plug a cash flow crisis. The £2bn empire, run by Guy Naggar and Peter Klimt, has called in Ernst & Young to restructure several companies within the group following a massive loss incurred last week [...]
US authorities move to rescue Freddie and Fannie July 14, 2008 Support from US Treasury comes minutes before far east markets open for trading US Treasury Secretary Hank Paulson moved to calm nerves about stricken American lenders Fannie Mae and Freddie Mac last night, saying the government would be willing to take an equity stake in the two banks. His eagerly awaited statement came just minutes [...]