Fear and mistrust gripped Wall Street on Monday after Citigroup's CEO quit in the wake of mounting credit losses and an influential money manager called the subprime mortgage market a $1 trillion problem.
The yen rose across the board on Monday as global stock markets fell on worries of more credit-related troubles at U.S. banks, causing investors to reduce their exposure to risky assets and unwind carry trades.
Charles Prince resigned on Sunday as chairman and chief executive of Citigroup Inc, as the bank said it may write off $11 billion of subprime mortgage losses, on top of a $6.5 billion write-down last quarter. Robert Rubin, the former U.S. Treasury Secretary who had chaired Citigroup's executive committee, was named chairman, while Sir Win Bischoff, who runs Citigroup's European operations, was named acting chief executive.
China National Chemical Corp (ChemChina) and U.S. private equity firms offered up to A$3 billion ($2.75 billion) on Monday for Australia's Nufarm Ltd, a deal that would create the world's largest generic farm chemicals firm.
Futures on benchmark U.S. stock market indexes fell before Wall Street's opening on Monday, with the focus on Citigroup after news of CEO Charles Prince's resignation. The largest U.S. bank said it may write off $11 billion of subprime mortgage losses on top of a $6.5 billion write-down last quarter.
Charles Prince resigned on Sunday as chairman and chief executive of Citigroup Inc, as the bank said it may write off $11 billion of subprime mortgage losses, on top of a $6.5 billion write-down last quarter.
Canada's CIBC said on Sunday it would sell a major part of its U.S. capital markets business to Oppenheimer Holdings Inc as it focuses on its core operations.
Shares in Citigroup Inc rose 5 percent on their first trading day in Tokyo on Monday, in a new exchange listing designed to boost the U.S. bank's presence in Japan but which coincides with the departure of its CEO.
When Charles Prince replaced Sanford Sandy Weill at the helm of Citigroup Inc, he was given the unenviable task of replacing a legend. Shareholders feared he could never fill Weill's shoes. They may soon be proven right.
Investors banking on more interest-rate cuts may get some clues about what comes next from Federal Reserve Chairman Ben Bernanke, who testifies before the Joint Economic Committee of Congress on Thursday.
Citigroup Inc Chief Executive Charles Prince plans to resign this weekend, the Wall Street Journal said, as the widening subprime mortgage crisis deals a final blow to a reign long under attack. The largest U.S. bank by assets plans to hold an emergency board meeting on Sunday, at which Prince will step down, the newspaper said on Friday, citing people familiar with the situation.
Citigroup Inc's board of directors is holding an emergency meeting this weekend, Dow Jones reported on Friday.
Apartment Investment and Management Co, one of the largest U.S. apartment landlords, said on Friday that quarterly funds from operations rose 8 percent, but Florida dragged down results, and its shares fell 6.5 percent.
The dollar dropped to a record low against the euro and a major currency basket on Friday, on persistent worries about credit and unreported losses at financial firms, which overshadowed a strong U.S. payrolls report.
Stocks fell on Friday as gains from an unexpectedly strong jobs report were quickly overwhelmed by fears of more fallout from the credit crisis.
Large U.S. banks and brokerages will suffer additional write-downs of more than $10 billion in the fourth quarter as deteriorating credit trends continue to undercut the value of subprime mortgages and related securities, a Deutsche Bank analyst said.
In a bid to cut its exposure to mortgage-backed securities, Merrill Lynch & Co engaged in deals with hedge funds possibly designed to delay its heavy losses, the Wall Street Journal reported Friday in its online edition, citing sources close to the matter. Shares of Merrill, which ousted Chief Executive Stan O'Neal earlier this week, fell 6 percent on Friday in early trading on the New York Stock Exchange. Shares are down 37 percent this year.
Shares in Barclays fell as much as 8 percent to hit two-and-a-half year lows on Friday amid market talk of funding worries and speculation it is telling analysts to trim profit forecasts.
Financials led a sharp drop on Wall Street on Thursday, wiping out the previous session's Fed-fueled gains, after brokerages downgraded the two biggest U.S. banks, sparking fears of more credit crisis fallout. Adding to the gloom, Exxon Mobil reported profits that fell short of analysts' expectations due to slim margins from gasoline production and lower natural gas prices.
Citigroup shares dropped 7.6 percent on Thursday morning, reaching their lowest level in over four years, after an analyst said the largest U.S. bank may have to raise $30 billion of capital.
Credit Suisse said third-quarter profit at its investment bank was all but wiped out by writedowns, leading to a 31 percent fall in group net earnings to 1.3 billion Swiss francs ($1.12 billion).
Indexes tracking mining and metals shares rallied on Wednesday. The Philadelphia Gold and Silver Index surged 4.1% at 188.09 points. The CBOE Gold Index rose 3.5% at 190.18 points and the Amex Gold Bugs Index rallied 3.8% at 435.08 points.
