Tim Geithner’s plan to get toxic assets off bank balance sheets should help strengthen SOLVENT financial institutions, Nouriel Roubini of RGE Monitor says. But banks that fail stress tests (a.k.a., insolvent ones) should be seized, restructured, and sold.
NYU professor Nouriel Roubini thinks the Obama administration is perfectly justified in taking a hard line with Detroit.The best move for GM from here, he says, is a “pre-packaged bankruptcy.” This will allow the company to reach deals with bond
From paidContent.org, March 31, 2009:A couple of weeks ago, we ranked digital-media
CEOs by the size of paychecks. But many of these titans derive most of
their wealth not from salary, bonus or options, but from their holdings
in the companies they run
Okay, not “positive,” exactly, but certainly less negative than he’s sounded
over the past 18 months. NYU professor Nouriel Roubini, you’ll recall, is known as “Dr. Doom,” the most famous of the handful of economists who actual
From Clusterstock.com Outgoing GM Chief Rick Wagoner is set to walk into the sunset with a $20 million payout, according to Michelle Leder’s analysis of GM’s filings.Well that has to ease the sting of getting personally fired by The President of the
Now that the nation’s top public servant is wielding The Donald-like powers over chief executives of bailed-out companies, expectations are high that more heads will roll, and Bank of America CEO Kenneth Lewis is looking like the next contestant on a new economic prime-time drama: The Executive.
Rick Wagoner, ousted as General Motors CEO, had spent more than three decades in the company and had been in the driver’s seat for most of the last one. He also presided over the era of the energy-unfriendly Sport Utility Vehicle and is criticized for sticking with trucks far longer than he should have.
Lewis has been Bank of America CEO for about eight years. He bought CountryWide, the biggest lender in a market gone crazy for real estate in the early part of this decade, and was ultimately forced to buy Merrill Lynch as the salad days of Wall Street wilted.
By contrast, Citigroup’s Vikram Pandit has been running things for just about long enough to endure the worst of the crisis, and AIG’s Edward Liddy was installed by the government. Perhaps it’s the longevity of characters like Wagoner and Lewis that make them seem so deserving of a presidential pink slip.
Should investors brace for a wave of executive firings? Certainly any chief with enough stripes to remember the good times and who had his hand out for government aid is looking vulnerable.
It is interesting to recall the argument behind AIG’s odious retention bonuses: these are the guys who got their companies into those messes; they should be the best positioned to get them out. If Lewis does get a presidential veto, that argument will be pretty much lost.
Deals of the Day:
* Raven Russia, a property company focused on warehouses in Russia, agreed to acquire property developer Raven Mount Group for 54.9 pence per share, or 60 million pounds, the companies said.
* Spains’ Santander said it had agreed to sell its 32.5 percent stake in Spanish oil company Cepsa to Abu Dhabi fund IPIC at 33 euros per share.
* Hungary’s government said it is injecting fresh funds into FHB, raising its stake in the mortgage bank beyond 40 percent and helping it compete better with foreign rivals in its home market.
* Australian miner OZ Minerals said it received an alternative rescue bid from Minmetals, after Australia last week blocked the Chinese state-owned firm’s $1.8 billion bid on national security grounds
* A Canadian pension fund has offered $930 million to buy Australian investment firm Macquarie Communications Infrastructure Group, sending MCG’s shares up over 58 percent.
(PHOTO: Donald Trump speaks during a news conference at an Aberdeenshire Council inquiry into the plans for his golf course resort in Aberdeen, northeast Scotland June 10, 2008. REUTERS/David Moir)
23andMe is a radical startup with a bold idea: Personal genetic testing through
the mail. But early on, the company made headlines in Silicon Valley for another reason: Co-founder Anne
Wojcicki is married to Google founder Sergey Brin. What’s mo
When Anne Wojcicki and Linda Avey met, they were both working in the
biopharmaceutical industry and horrified at how ineffective the modern
healthcare system was. Forget the politicians, Wojcicki and Avey decided a
better way to force change was to
From The Business Insider, March 30, 2009: Lotsa pressure on world leaders to save the world when they meet at the G20 next
week.
Given the lack of consensus about how to fix the economy, and the fact that
various countries have different priorities,
On the same weekend the Treasury Department said $134.5 billion of TARP funds remain, the Obama Administration made it very clear American automakers aren’t going to see much (if any) bailout funds. …
More than a decade ago, scientists finally decoded the human genome and it sparked a wave of futuristic thinking. Fast-forward to today, and a handful of so-called “personalized genomics” companies allow you to know as much about y
Stocks tumbled around the world Monday as the Obama administration’s hard line with the automakers raised the possibility of another “event” in the credit markets. …