Unemployment Rate Highest in 26 Years - Jumps To 10.2 Percent
November 6, 2009
(ChattahBox) — The unemployment rate surpassed 10 percent for the first time since 1983, rising to a deeper than expected 10.2 percent in October from 9.8 percent a month earlier. Nearly 16 million people can’t find jobs and employers cut a net total of 190,000 jobs in October, an improvement from a revised estimate of 219,000 job losses in September, according to figures released from the US Labor Department Friday.
Read more
New York Sues Intel for Antitrust Crimes of ‘Bribery and Coercion’
November 4, 2009
(ChattahBox)–New York Attorney General Andrew Cuomo, filed an antitrust suit against Intel Corp. in U.S. District Court in Wilmington, Delaware today, to put a stop to the chipmaker’s alleged reign of terror against computer manufacturers, illegally forcing them to use Intel’s chips. The world’s largest computer chipmaker is accused of making billions of dollars of illegal payments to companies, to ensure they would not do business with Intel’s competitors, such as Advanced Micro Devices Inc. Read more
Gary Kaplan, Online Gambling King Gets Four Years
November 4, 2009
(ChattahBox)–Gary Kaplan, the founder of Betonsports, a former UK online gambling enterprise, pleaded guilty to racketeering, conspiracy and other charges and was sentenced to 51 months in prison, as part of a plea agreement. Kaplan was a high-rolling online gambler entrepreneur, until he was arrested in the Dominican Republic in March 2007, for taking illegal sports wagers from U.S. customers. Read more
GM Decides to Keep Opel After all
November 3, 2009
(ChattahBox) — General Motors Co. said Tuesday it will keep its European Opel unit and restructure it instead of selling a 55 percent stake to Canadian auto parts maker Magna International, undoing months of negotiations. General Motors board was expected to agree to sell Opel to Magna International, but an improving business environment for GM over the past few months, plus political issues posed complications for the deal. Magna has said it would cut about 10,500 jobs in Europe, including 4,500 in Germany. That prospect did not sit well with German unions and politicians because Magna would be receiving about $6.7 billion in government aid. According to the Wall Street Journal, GM’s board decided to review the sale one final time after the European Union opened the door by expressing fresh concerns in light of indications that Germany may support an alternative restructuring plan for Opel other than the Magna sale. In keeping Opel, GM would retain a critical asset because of is its small car expertise.
Government Launching Attack On “Free” Credit Report Sites
November 3, 2009
U.S. (ChattahBox) - Who hasn’t seem the commercials for Freecreditreport.com? But those lovable singers are representing a website that the government says is deliberately misleading consumers.
Warren Buffett’s Berkshire Buying Burlington Northern Railroad
November 3, 2009
(ChattahBox) Berkshire Hathaway Inc. announced on Tuesday it has agreed to completely buy Burlington Northern Santa Fe Corp. in a deal valuing the railroad at $34 billion. Berkshire Hathaway already owns a stake of about 22.6 percent in Burlington Northern, and said it will pay $100 a share in cash and stock for the 77.4 percent of the railroad’s shares it does not already own. The price represents a premium of 31.5 percent over Burlington Northern’s closing stock price on Monday. Berkshire also will assume $10 billion of outstanding Burlington Northern debt. Read more
Tool company merger: Stanley and Black & Decker combine
November 3, 2009
(ChattahBox) — Stanley Works and Black & Decker Corp., two of the most recognizable names in home improvement, agreed to a $4.5 billion all-stock deal. Stanley who is the smaller company, based on sales and employees, but will be the acquirer in the deal, is issuing 1.275 of its shares for every Black & Decker share, a 22 percent premium based on Monday’s share prices. The two iconic US hand-tool and power-tool makers, which will be called Stanley Black & Decker, combine to create a powerhouse with $8.4 billion in sales. Read more
Ford Motor Co. Shows Profit of $997 Million in Third Quarter
November 2, 2009
(ChattahBox) — Ford Motor Co., the only major US automaker to avoid bankruptcy, earned nearly $1 billion in the third quarter, fueled by less competition and the government’s Cash for Clunkers rebates. The Dearborn, Michigan-based automaker on Monday reported net income of $997 million, or 29 cents per share, compared to a loss of $161 million, or 7 cents a share on that basis a year earlier. Read more
CIT Group bankruptcy filing leaves US taxpayers holding a $2.3 billion loss
November 2, 2009
(ChattahBox) — CIT Group Inc., one of the nation’s leading funders of small and medium-sized businesses, filed for bankruptcy Sunday as part of a reorganization plan that has the support of an overwhelming majority of creditors but will end up leaving US taxpayers holding a $2.3 billion loss. In the bankruptcy filing the fifth largest by assets in U.S. history, CIT said it had $71 billion in assets and $64.9 billion in liabilities. Only Lehman Brothers, Washington Mutual, Worldcom and General Motors had more in assets when they filed for protection.
In a statement, the 101-year-old company said it is asking the U.S. Bankruptcy Court for the Southern District of New York for a quick approval of the prepackaged plan. CIT said none of its operating subsidiaries would be affected by the filing, allowing them to continue operations. The filing marks the culmination of months of bargaining among CIT, its creditors and the federal government over the company’s fate. CIT provides working capital to small firms such as shops, their suppliers and restaurants, many of whom are already struggling in the recession.
“The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy,” said CIT chairman Jeffrey M. Peek.
Although the company will keep operating, it is unlikely to be able to make the same number of loans as before and comes ahead of the crucial Christmas season. And by filing for bankruptcy taxpayers will lose the $2.3 billion investment they made in CIT as part of the government’s sweeping financial rescue last fall, marking the first such loss of the bailout program. Creditors will end up owning the company, while common and preferred shareholders, including the US government, will be wiped out by the plan.
Madoff SEC Jailhouse Interview: ‘Amazing to me’ he Wasn’t Caught
October 31, 2009
(ChattahBox)— The Inspector General of the Securities & Exchange Commission, released records of a jailhouse interview he conducted of convicted Ponzi schemer Bernie Madoff, on June 17, while Madoff was incarcerated in Manhattan. The transcripts of the interview conducted by Inspector General David Kotz, reveals Madoff’s contempt for SEC investigators, as he operated a massive illegal Ponzi scheme right under their noses for 16 years. He even called one SEC staffer an “idiot.” Read more