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Madoff Sentenced to 150 Years in Prison 6/29/09 Convicted Ponzi-scheme operator Bernard Madoff was sentenced to the maximum 150 years in prison. U.S. District Judge Denny Chin said Madoff's fraud was "staggering" and "unprecedented," and that the financier hadn't done all he could or told all he knows about the fraud. Madoff, speaking at his sentencing hearing, apologized to his family and to the victims of his multibillion-dollar fraud scheme. The 71-year-old said that he “will live with this pain, this torment, for the rest of my life.” Wary Banks Hobble Toxic-Asset Program 6/29/09 A look at why the U.S.'s toxic-asset program has stumbled underscores how difficult it has been to solve one of the economy's biggest problems: Mountains of bad debt sitting on banks' books. Towers Perrin, Watson Wyatt to Merge 6/29/09Perrin and Watson Wyatt will merge, creating the world's largest employee- benefits consultancy. New Rift Opens Over Detainees' Rights 6/29/09The Justice Department determined that detainees tried by military commissions in the U.S. can claim some constitutional rights. The Gold Market's Tech Cues 6/29/09Fundamental analysis uses economic, political and environmental data to forecast future price movements, while technically derived predictions rely upon price patterns and changes in market volume. Commodity traders often use "the technicals" as well as fundamentals when making market decisions. Madoff to Learn Fate 6/29/09 Prosecutors have asked for the maximum of 150 years for the convicted Ponzi-scheme operator. Madoff's lawyer, Ira Sorkin, has asked for as little as 12 years. King's Bay Gold Corporation Sakoose Gold Mine Project Update 6/28/09King's Bay Gold Corporation (TSX-V: KBG) is providing a report on the progress of their Phase 1 diamond drilling program at their 100 % owned Sakoose Gold Mine Project located in Melgund Township near Dryden, Ontario. Dow Industrials Slide 200 Points as Bank, Energy Stocks Drop 6/22/09 The Dow Jones Industrial Average dropped 200 points and the S&P 500-stock index sank 3.1%, ending at the worst levels of the day, amid a selloff in the financial sector and concern that flagging demand could carve into commodities prices. The Financial Select Sector SPDR exchange-traded fund dropped 5.8%. Crude-oil futures declined 3.8%, the worst single-day loss since May 15. Ahmadinejad Wins Iran Election, State News Agency Says; Rival Also Claims Victory 6/12/09 Iran's state news agency reported that President Mahmoud Ahmadinejad won re-election Friday, but his main reformist challenger also confidently claimed victory. The voting ended at midnight local time after being extended amid heavy turnout. Iranians poured into voting stations, the culmination of an unprecedented campaign season and perhaps the most hotly contested presidential race since the founding of the Islamic Republic 30 years ago. Dow Jones Industrial Average Turns Positive for 2009 6/12/09 The Dow Jones Industrial Average climbed 29 points to 8799 on Friday, pushing the blue-chip benchmark into positive territory for 2009 after several recent attempts to close above that mark fell short. The Dow has surged 34% since hitting its bear-market low on March 9. It is now up 0.3% for the year to date. The S&P 500 is up 4.8% for the year and the Nasdaq is up 18%. Fed to Keep Lid on Bond Buys 6/12/09 Federal Reserve officials are unlikely to significantly boost purchases of U.S. Treasurys and mortgage-backed securities when they meet in late June, but could make other adjustments in the face of rising bond yields and fresh signs of an improving economy. Fed officials have become more confident recently that they have stabilized the economy and set the stage for recovery. But divisions are brewing within the Fed over whether it should do more to speed the healing, pause, or start pulling back to avoid an outbreak of inflation. Those crosscurrents are likely to inhibit bold new strokes by the Fed at its next meeting, in contrast to earlier in the year, when a bleak outlook spurred aggressive action. Gas Prices Help Push May Retail Sales Up 0.5% 6/11/009 U.S. retail sales rose 0.5% in May, posting their third increase in five months. Much of the gain, which was smaller than economists had expected, was due to higher prices at gasoline stations. Excluding sales at the pump, sales were up 0.2%. Separately, the number of U.S. workers filing new claims for jobless benefits fell unexpectedly last week, down 24,000 to 601,000. Emails Show Fed Officials Critical of BofA, Lewis 6/10/09 Fed officials sharply criticized Bank of America and CEO Kenneth Lewis in emails to each other after the bank tried to pull out of its deal to buy troubled investment bank Merrill Lynch, according to documents unearthed by Congressional investigators. The emails confirm Fed Chairman Bernanke was willing to threaten Mr. Lewis's removal as CEO if he reneged on the Merrill deal and later sought assistance. Fed's Beige Book Finds U.S. Economy Weak, Some Signs Decline Is Slowing 6/10/09 The Fed's beige book survey released Wednesday shows that economic conditions remained weak and even deteriorated in many regions of the country, with commercial real estate and labor markets continuing to face challenges. Some of the 12 Fed districts see the recession easing a bit, but they are still not expecting a significant boost in economic activity in 2009. Despite costly federal efforts to restart credit markets, it is still very difficult for consumers to obtain loans, the report shows. At Least Two Shot at Holocaust Museum in D.C. 6/10/09 Authorities say at least two people have been shot at the U.S. Holocaust Memorial Museum in Washington. Chrysler, Fiat Close Deal 6/10/09 Chrysler and Fiat finalized their government-brokered alliance a day after the U.S. Supreme Court removed the deal's last remaining obstacle. Chrysler will operate as Chrysler Group LLC, with Robert Kidder as chairman and Fiat Chief Executive Sergio Marchionne overseeing day-to-day operations. Obama Drops Tough Plan to Put Cap on Bank Compensation 6/9/09 The Obama administration is dropping its plan to cap salaries at firms receiving government bailout money, leaving them subject to congressionally imposed limits on bonuses. The move is likely to end months of confusion on Wall Street about separate pay directives from the White House and Congress. Supreme Court Won't Block Chrysler-Fiat Deal 6/9/09 The U.S. Supreme Court lifted a temporary hold on Chrysler's sale to Fiat, ending a brief period of uncertainty over the transaction. The bulk of Chrysler's assets can now be transferred to Fiat, which is set to take over the company through a fast-paced bankruptcy process that was brokered by the U.S. and Canadian governments. Treasury to Allow 10 Banks to Repay $68 Billion in Bailout Money 6/9/09 The Treasury Department said it will allow 10 of the nation's largest banks to repay $68 billion in government bailout money. The Treasury says the banks will be allowed to repay the money they received from the $700 billion Troubled Asset Relief Program funds. The banks have been eager to get out of the TARP program to escape government restrictions such as caps on executive compensation. The Treasury Department did not name the banks involved, but Morgan Stanley said it is repaying $10 billion in TARP capital. Financial Regulatory Revamp Is Scaled Back 6/8/09 The Obama administration is backing away from seeking a major reduction in the number of agencies overseeing financial markets, suggesting that the current alphabet-soup of regulators will remain mostly intact. Administration officials had suggested they might push for major regulatory consolidation in the wake of the financial crisis. But now they expect to call for most existing agencies to have broader powers to limit risk-taking by financial institutions. Procter & Gamble to Name Robert McDonald as New CEO 6/8/09 Procter & Gamble plans to name Chief Operating Officer Robert McDonald as its new CEO, succeeding A.G. Lafley, who will remain chairman. U.S. Supreme Court Grants a Stay Delaying Chrysler Sale to Fiat 6/8/09 The Supreme Court delayed Chrysler's sale to Fiat at the request of several Indiana pension funds and consumer groups that are opposed to the transaction. Ahead of the decision, Chrysler and the federal government warned such an intervention might lead to the liquidation of the auto maker. But the high court, in a brief order, said it will extend a temporary stay put in place by an appeals court until it has the chance to receive and review routine appeals from groups opposed to the sale Supreme Court Rules 5-4 That Judges Must Avoid Appearance of Bias 6/8/09 The Supreme Court ruled that elected judges must step aside from cases when large campaign contributions from interested parties create the appearance of bias. In a 5-4 vote, the court said a West Virginia judge who remained involved in a lawsuit filed against the company of the most generous supporter of his election deprived the other side of the constitutional right to a fair trial. In other cases, the justices refused to hear appeals from former Tyco CEO L. Dennis Kozlowski and former finance chief Mark Swartz, who challenged their convictions for fraud and larceny involving more than $100 million in bonuses. The Supreme Court also turned down a challenge to the Pentagon's "don't ask, don't tell" policy forbidding gays and lesbians from serving openly in the military. And the justices said the current Iraqi government can't be held responsible in U.S. courts for the acts of Saddam Hussein's regime. North Korea Sentences Two U.S. Journalists to 12 Years in Labor Prison 6/7/09 North Korea's top court has convicted two U.S. journalists, and sentenced them to 12 years in labor prison, the country's state news agency reported. The Central Court tried American TV reporters Laura Ling and Euna Lee and confirmed their unspecified "grave crime" against the nation, and of illegally crossing into North Korea. U.S. Supreme Court Asked to Delay Chrysler's Deal With Fiat 6/6/09 Indiana state pension funds filed emergency papers at the Supreme Court early Sunday to put Chrysler's merger with Fiat on hold so they can pursue an appeal. On Friday, a federal appeals court upheld Chrysler's alliance with Fiat, dismissing a challenge by dissident Chrysler debt holders. But the court also issued a stay until 4 p.m. Monday -- leaving a small window for Thomas Lauria, the lawyer pursuing the case, to appeal to the Supreme Court. U.S. Pushed Fiat Deal on Chrysler 6/5/09 The Obama administration rushed an alliance between Chrysler and Fiat despite Chrysler's worries about Fiat's financial health and its willingness to share technology, according to internal company emails. The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. The documents provide a glimpse at the tense debates that shaped Chrysler's final days as it raced to find a suitor. U.S. Court Approves Chrysler Sale but Puts Deal on Hold Until Monday 6/5/09 A federal appeals court approved the sale of Chrysler assets to Fiat but kept the deal on hold until Monday to allow a possible appeal to the Supreme Court. Chrysler had hoped to close the sale by the end of this week. The U.S. Court of Appeals for the Second Circuit had been hearing an appeal filed by a group of Indiana state pension and investment funds, which had sought to block the deal. FDIC Pushes for Shake-Up at Citigroup 6/6/09 The Federal Deposit Insurance Corp. is pushing for a shake-up of Citigroup's top management, imperiling Chief Executive Vikram Pandit. The FDIC, under Chairman Sheila Bair, also recently pressed a fellow regulator to lower the government's confidential ranking of Citi's health -- a change that would let regulators control the firm more tightly. The FDIC's willingness to take an increasingly tough position toward one of the nation's largest and most troubled financial institutions is setting up a bitter clash between regulators -- some of whom disagree with the FDIC's position -- and between the FDIC and Citigroup, whose officials have argued that Ms. Bair is overstepping her authority. Pace of Job Losses Slows; Unemployment Climbs to 9.4% 6/5/09 U.S. job losses softened markedly last month, sending one of the strongest signals yet that the severe recession may be winding down. Nonfarm payrolls slid 345,000 in May, the U.S. Labor Department said, well below the 525,000 decline economists expected. The drop was the smallest since September 2008, when the recession intensified in the wake of the collapse of Lehman Brothers. The unemployment rate, which is calculated using a survey of households as opposed to companies, jumped 0.5 percentage point to 9.4%, the highest level since August 1983. SEC Says Risky Loans Troubled Countrywide's Mozilo but Fears Weren't Disclosed 6/4/09 Federal regulators on Thursday charged Angelo Mozilo, the former chief executive of mortgage lender Countrywide, and two other company executives with civil fraud. The SEC said Countrywide concealed shareholder risk and portrayed itself as underwriting prime-quality mortgages even while internally acknowledging it was writing "increasingly risky loans." According to the SEC, in emails, Mozilo called one loan offering "the most dangerous product in existence." In another, Mozilo said the company was "flying blind" with how one type of product would perform in an economic slowdown. Obama Calls for End to 'Cycle of Discord With Muslims' 6/4/09 President Barack Obama called for a "new beginning between the United States and Muslims" in a much-anticipated speech at Cairo University aimed at redefining and improving relationships with Muslims. "This cycle of suspicion and discord must end," he said, addressing the Islamic world, hoping to reframe relations after the attacks of Sept. 11, 2001, and the war in Iraq. Obama also spoke on the issues of Iraq, the situation between Israelis, Palestinians and the Arab world, nuclear weapons, democracy, religious freedom and women's rights. United Plans Huge Jet Order 6/3/09 United Airlines has asked Boeing and Airbus to propose dueling bids for up to 150 new airliners -- the latest example of major companies exploiting the recession to bargain-hunt. For the two aircraft makers, the deal could be worth more than $10 billion at a time when both are watching other customers cancel or defer orders. Bernanke Tells Lawmakers to Cut Budget Deficit 6/3/09 Federal Reserve Chairman Ben Bernanke urged lawmakers to commit to reducing the nearly $2 trillion budget deficit, warning that the government can't borrow "indefinitely" to meet the growing demand on its resources. Bernanke also reiterated that the pace of economic contraction appears to be slowing, setting the stage for a return to growth later this year. Appeals Court to Hear Challenge to Chrysler-Fiat Deal 6/2/09 The U.S. Court of Appeals for the Second Circuit agreed to hear an appeal related to the bankruptcy of Chrysler, potentially extending the auto maker's stay in Chapter 11 reorganization by at least several days. Brazil Finds Plane Wreckage, Confirms Crash of Air France Flight 6/2/09 Brazilian Defense Minister Nelson Jobim said Air Force planes had found a long line of debris in the ocean off of Brazil's north east coast, confirming prior sightings of wreckage and the destruction of Air France Flight 447. No survivors have been found. The plane, with 228 people on board, disappeared nearly four hours after having left Rio de Janeiro airport on Sunday night. The jetliner had been flying through heavy storms and turbulence. Auto Makers' Sales Fell in May, but Were Strongest Yet in 2009 6/2/09 Japan's auto makers posted steeper declines in May than most of their American counterparts, though most auto makers reported their highest sales of 2009. Ford posted the most modest decline at 24%, while General Motors reported a 29% drop and Toyota logged a 41% drop. Chrysler posted a 47% decline. Nissan and Honda posted declines of 33% and 39%, respectively. Brazil's Air Force Finds Remains of Plane 6/2/09 Brazil's air force said Tuesday it had found remains of an airplane in the sea near where an Air France flight bound for Paris with 228 people on board disappeared after encountering turbulence. Air force officials said a search aircraft had spotted debris about 650 kilometers (400 miles) off of Fernando de Noronha, an Atlantic island near where Flight 447 last made radio contact on Monday night. Citigroup Is Halting Some Payouts 6/1/09 Citigroup has told about five former top executives that it won't pay them tens of millions of dollars in promised severance payouts. Guggenheim Is Next Job for Bear's Final CEO 6/1/09 After flirtations with firms ranging from Goldman Sachs to Credit Suisse, Bear Stearns's last CEO Alan Schwartz has chosen little-known Guggenheim Partners as his new home. Mr. Schwartz, 59 years old, is expected to join the closely held investment firm as executive chairman later this month in a role that will involve building its banking and trading businesses while growing its established investment-management unit. J.P. Morgan Chase Plans to Raise $5 Billion to Help Repay TARP 6/1/09 J.P. Morgan Chase is planning to raise roughly $5 billion in fresh capital as part of its effort to repay $25 billion that it received in government funds last year. The capital-raising move is being triggered by a growing sense within the banking industry that federal officials want financial institutions to raise fresh capital as a condition of the repayment, according to people familiar with the situation. Dow Industrials Jump 221 Points; S&P 500 Hits 2009 High 6/1/09 The Dow Jones Industrial Average jumped by 221 points after data on U.S. manufacturing, construction spending and personal incomes further solidified investors' growing belief that the economy is stabilizing. The S&P 500 surged to its highest level so far this year, powered by gains in its industrial, consumer-discretionary and energy sectors. Cisco Systems jumped 5.4% and Travelers rose 3.2% after it was announced that the companies would be added to the Dow Jones Industrial Average on June 8. Obama Says GM Plan Will Help Auto Maker Move Toward Profitability 6/1/09 Barack Obama defended government intervention in General Motors as the auto maker enters Chapter 11 bankruptcy, saying the actions are part of a "viable, achievable plan that will give this iconic company a chance to rise again." Under the plan, the government would own 60% of the new GM, but Obama said auto executives "will call the shots and make the decisions about turning this company around." He said the government would refrain from playing a management role in all but the most critical areas. "Our goal is to help GM get back on its feet ... and get out quickly," he said. In remarks following Obama's statement, GM CEO Fritz Henderson said the new GM will be a leaner and quicker company that's more focused on its customers and its products. Excitement Returns to Silver Market 6/1/09 Excitement has returned to the silver market as the sister metal of gold advances to highs not seen for ten months. Where is silver headed? Will it take out $21 with ease and head onto highs that evoke memories of 1979 or are we approaching a pivotal point? Gold was one of the few asset classes to post positive returns in 2008 6/1/09 As investors sought hard assets in a flight to safety. The price of the yellow metal rose 3% in 2008, while the S&P lost 37% of its value, the MSCI All World Ex-US was down 43%, and the broad GSCI commodity index fell 47%. Gold even outperformed most hedge funds, who quite embarrassingly failed to live up to their name the average fund earning their 2/20 by returning -22% to their customers. Gold rises above $985 an ounce 6/1/09 GM, Citigroup Removed From Dow Industrials; Cisco, Travelers Added 6/1/09 General Motors, which filed for Chapter 11 bankruptcy protection on Monday morning, and Citigroup will be removed from the Dow Jones Industrial Average. Cisco Systems will replace GM in the 30-company stock average, and Travelers Co. will replace Citi. The changes are effective June 8. GM Files for Chapter 11 Protection, Setting Up Gamble for Taxpayers 6/1/09 GM filed for Chapter 11 bankruptcy early Monday, marking the humbling of an American icon that once dominated the industry and setting up a high-stakes gamble for taxpayers. Under the plan, the Obama administration will spend a bit more than $30 billion to fund the bankruptcy and in exchange receive 60% of GM's stock, while the Canadian government will put in $9.5 billion for a 12% stake, senior administration officials said. Air France Jet Disappears With More Than 200 Aboard 6/1/09 Brazil's Air Force said an Air France jet bound from Rio de Janeiro to Paris disappeared over the Atlantic Ocean. Air France confimed it has lost contact with the plane, which carried 228 people. An Air Force spokesman says the search and rescue mission was mounted Monday morning after the jet failed to make regular radio contact. GM Filing Expected 8 a.m. Monday; Koch to be Named Restructuring Chief 5/31/09 General Motors is expected to name turnaround executive Al Koch as its new chief restructuring officer to guide the auto maker's trip through Chapter 11 bankruptcy protection. Mr. Koch, a managing director at the advisory firm AlixPartners LLP, will be named to the post when GM files its bankruptcy papers at 8 a.m. Monday at the U.S. Bankruptcy Court in New York's Southern District. He will be the highest-ranking outsider in GM's officer ranks and oversee about 60 Alix employees working for the auto maker. Majority of GM Bondholders Back Debt-for-Equity Deal 5/31/09 A majority of investors holding $27 billion in General Motors bonds have agreed to forgive the debt for equity in the new company, people familiar with the situation said, smoothing the way for the auto maker as it prepares for a bankruptcy filing expected Monday. Kefi's Saudi gold venture follows recent regulations to attract foreign mining investment 5/29/09 Kefi Minerals, the gold and copper explorer, announced the formation of its new minerals exploration joint venture, Gemco Limited with leading Saudi construction and investment group Abdul Rahman Saad Al-Rashid & Sons Company.Kefi is the operating partner with a 40% shareholding of GEMCO with ARTAR holding the other 60%. ARTAR is a conglomerate investing in different sectors in Saudi Arabia such as construction, real-estate, agriculture and health care in the Kingdom of Saudi Arabia and abroad. GEMCO's primary target will be the discovery and development of a 1 million plus ounce gold deposit in the under explored Precambrian Shield in The Kingdom of Saudi Arabia, Kefi said in a press release. Temple Sloan Leaves BofA Board 5/29/09 Bank of America said O. Temple Sloan Jr. resigned from its board of directors, after serving in that role for 13 years. Mr. Sloan most recently served as chairman of Bank of America's executive committee, and on the compensation and benefits committee. He served as lead director on the board since May 2006 and was also a member of the corporate governance committee. The banking giant said Mr. Sloan resigned from the post effective May 26. Gold, silver rise on strong global cues 5/29/09 Gold prices on Friday surged by Rs 155 to Rs 14,975 per 10 gram in the bullion market here on aggressive buying by stockists, driven by firming global trend after the US dollar weakened against major currencies. Stocks Run Winning Streak to Three Months 5/29/09 The Dow Jones Industrial Average jumped 100 points in the last half hour of trading on Friday, capping a third straight month of gains for the stock market. Market benchmarks saw their biggest three-month percentage gains in more than 10 years. It is the longest winning streak for stocks since the three months ended in October 2007 -- when the Dow industrials and S&P 500 hit record highs. UAW Members Approve New GM Labor Agreement 5/29/09 Members of the United Auto Workers union overwhelmingly ratified its new labor agreement with General Motors, getting the auto maker over a major hurdle in its restructuring plan. UAW President Ron Gettelfinger said the plan was passed with 74% support. GM is racing to restructure by June 1 under close watch of the Obama administration. It is widely expected the company will follow rival Chrysler into bankruptcy protection on Monday under a plan that would give the U.S. government a 72.5% stake. The U.S. will boost its support for GM by as much as $50 billion and keep it closely held for up to 18 months. Committee of Unsecured Bondholders Backs GM Equity Plan 5/28/09 General Motors said it will offer bondholders 10% of the company's stock with warrants to buy up to 15% if they agree to support selling the company's assets to a new company under bankruptcy court protection. GM said a large group of unsecured bondholders is supporting the proposal. The group represents about one-fifth of the aggregate principal amount of the notes. Fed Cools Banks' Faith in Future Revenue 5/27/09 Big banks were hoping billions of dollars in future revenue would help them fill the capital holes found in the government's stress tests earlier this month. Now the Federal Reserve is limiting how much of that performance can be counted. The Fed's decision is forcing Bank of America to come up with billions of dollars in capital from other sources. Other stress-tested banks also have revamped their capital-raising plans or might need to, including PNC Financial Services Group and Wells Fargo. The move by the Fed, which began notifying banks last week, has deepened tensions over the stress tests, which are intended to help steady the banking industry and shore up confidence in the financial system. The results were announced May 7, and banks face a June 8 deadline for government approval of their capital-raising plans. Citi, SEC Are in Talks to Settle Asset Probe 5/27/09 Citigroup is in the early stages of negotiating with the Securities and Exchange Commission to settle an investigation into whether it misled investors by not properly disclosing the amount of troubled mortgage assets it held as the market began to implode in 2007. The talks signal that the SEC could be moving toward resolving a number of civil probes that began in late 2007, when mortgage-related losses began mounting on the books of banks and Wall Street firms. A Citigroup spokesman said the firm's policy isn't to comment on such regulatory issues. The development comes as Wall Street firms attempt to recover from a credit-market meltdown that triggered hundreds of billions of dollars in losses that led to the demise of firms including Bear Stearns and Lehman Brothers Holdings. U.S. Considers Single Banking Regulator 5/27/09 Top Obama administration officials are close to recommending that Congress create a single regulator to oversee the banking sector, a departure from the hodgepodge of federal agencies that failed to contain the financial crisis as it ballooned out of control last year. Dow Industrials Slide 172 Points as Yields Surge 5/27/09 The Dow Jones Industrial Average declined 172 points, giving back nearly all of the previous session's rally, after Treasury yields spiked in afternoon trading. Financial, materials and industrial stocks were among the market's weakest sectors, but selling reached across the board. The yield on the 10-year note jumped above 3.70%, a level last seen in November.
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