Online brokerage E*Trade Financial Corp, which has been pounded by credit woes in the mortgage business, said on Thursday that it was getting a $2.55 billion cash infusion from investors led by Citadel Investment Group.
Gold held firm above $800 an ounce on Thursday as oil prices soared, but prices were locked into narrow ranges as a firmer dollar dulled the metal's attraction for non-U.S. investors.
China Life Insurance, the country's top life insurer, plans to boost its equity investments, especially in the financial, power and ports sectors, and expand its asset management business.
Indian fund assets could more than triple to $500 billion in the next five years, with half of that held in global products as investors seek diversified portfolios, the head of ING Groep's Indian fund arm said.
Big business is shoveling more money than ever into U.S. political campaigns, with Wall Street donations way up, a watchdog group said on Tuesday. The securities and investment industry -- which includes brokerages, hedge funds and private equity firms -- registered the sharpest increase in giving since 2004 among all industry sectors.
Wells Fargo & Co, the second-largest U.S. mortgage lender, said on Tuesday it would take a $1.4 billion fourth-quarter charge largely related to losses on home equity loans as the nation's housing market deteriorates.
Citigroup Inc's decision to raise $7.5 billion in capital is a signal to analysts and investors that the largest U.S. bank is likely to have a rough fourth quarter -- perhaps even worse than it has projected. Citigroup may not be overpaying for the capital, according to convertible bond experts, but if the bank was ready to post excellent results in coming quarters, it would not likely be paying 11 percent a year for money from Abu Dhabi, investors said.
Gold dropped on Tuesday, with lower demand for the metal as a hedge against inflation triggered by a drop in energy prices.
The U.S. dollar was higher against the euro, the yen and the Swiss franc on Tuesday following news that Citigroup Inc. will sell a $7.5 million stake to Abu Dhabi Investment Authority.
Citigroup Inc is selling up to 4.9 percent of itself for $7.5 billion to the Gulf Arab emirate of Abu Dhabi, giving the largest U.S. bank fresh capital as it wrestles with the subprime mortgage crisis and the resignation of its chief executive. The capital injection will shore up Citi's balance sheet, which has been hurt by some $6.8 billion of writedowns and losses in the third quarter, and the potential for another $11 billion in the fourth quarter.
Funds rose, driving 10-year note incomes to the lowest level since March 2004, as concern that subprime losses continue to extend a decrease in stocks and increased the request of fixed-income assets.
U.S stocks declined on Monday after turbulent Monday trading as financial sector woes deflated holiday sentiment entering the post Thanksgiving week. The Dow Jones Industrial Average plunged 237.44 points, or 1.83 percent, to close at 12,743.44, while the tech-heavy Nasdaq Composite Index was down 55.61 points, or 2.14 percent, at 2,540.99.
Merrill Lynch & Co Inc Co-President Greg Fleming told employees on Monday he has tremendous confidence in the company's long-term prospects and said the company's strategy is fundamentally sound. Our core businesses continue to perform well, our strategy is fundamentally sound and our incomparable global footprint and capabilities position us to take advantage of market opportunities around the world, he said.
US stocks were nearly flat in Mid-day trading on Monday, recovering after earlier losses following continued concerns over a weakening credit market and a worsening subprime mortgage situation.
Prospective buyers of online brokerage E*Trade Financial Corp are haggling over the value of its weakening mortgage portfolio, the Wall Street Journal reported Monday in its online edition, citing sources familiar with the matter.
Stocks rebounded on Friday in an abbreviated session as the start of holiday shopping lifted retail stocks, while progress in a plan to relieve the credit market's strain aided bank shares. Shares of JPMorgan Chase, Bank of America and Citigroup all rose more than 2 percent. The three banks, spearheading an effort to establish a superfund to ease problems in the credit market, are expected to seek support from others in the industry.
Online brokerage E*Trade Financial Corp is believed to be in merger talks with Charles Schwab Corp. and TD Ameritrade Holding Corp, according to a report on Friday on business news channel CNBC. An E*Trade spokesperson declined to comment, and a spokesperson for TD Ameritrade said the company has been pursuing growth through mergers and acquisitions but would not comment on E*Trade specifically. Charles Schwab also declined to comment.
The credit crisis is putting pressure on investors -- even those who do not have to mark assets to market every quarter -- to cope with valuing complex securities when they cannot rely on market prices.
The cost of Thanksgiving is soaring, according to investment bank Merrill Lynch & Co, which may help explain the gloom among U.S. consumers as they head into the holiday season.
Citigroup is teaming up with online bank Saxo Bank to launch a web-based foreign exchange trading platform called CitiFX Pro.
Money management firm Blackrock has been approached by the three largest U.S. banks to run a $75 billion superfund to create a market for hard-to-trade securities imperiled by the subprime credit crisis, according to a report.
Just in time for Thanksgiving, the financial experts at Goldman Sachs -- who earned a Wall Street record profit of $9.34 billion in 2006-- are setting up a charity fund which they expect to grow to more than $1 billion within the next few years.
