November 2009

Sheriff’s sales increase as housing bust continues (Press of Atlantic City)

November 27, 2009

CAPE MAY COURT HOUSE — Larry Notch may have the most difficult job at the Cape May County Sheriff’s Office.

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A house built on sand

November 27, 2009

World, a large sovereign fund wholly owned by the emirate of Dubai, suspending the repayment of all its debt for six months. Interestingly, Dubai (one of the seven kingdoms which comprise the United Arab Emirates) has no oil reserves and therefore no

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A house built on sand

November 27, 2009

World, a large sovereign fund wholly owned by the emirate of Dubai, suspending the repayment of all its debt for six months. Interestingly, Dubai (one of the seven kingdoms which comprise the United Arab Emirates) has no oil reserves and therefore no

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Dubai’s Debt Problems Cast Shadow Over Entire Region

November 27, 2009

DUBAI, United Arab Emirates — For years, Dubai seemed unstoppable, an oasis of excess boasting indoor ski slopes and manmade islands, the world’s tallest tower and dreams that reached even higher. Now the bills are coming due, and the emirate’s debt problems are tarnishing a place built on borrowed time and money – and threatening to spill into other Gulf Arab nations. State-owned conglomerate Dubai World’s call for a delay in repaying some of the $60 billion it owes creditors will likely make international investors view even more fiscally conservative countries through a lens of uncertainty, analysts say. The announcement is “impacting everybody in the region – the good and the bad,” said John Sfakianakis, chief economist at Saudi-based Banque Saudi Fransi-Credit Agricole Group. “Right now we’re still seeing the impact of this, and the impact will be that everybody is being negatively perceived,” Sfakianakis said. In Dubai and in other Gulf nations, rulers keep tight control over information on their fiscal standing and dealmaking even as they draw in hundreds of billions of investment dollars. For example, in Saudi Arabia, the Arab world’s largest economy, few were aware of the $22 billion debt crunch confronting two of the kingdom’s largest privately held conglomerates earlier this year. The news filtered out as the companies fought each other in court, with one accusing the other of fraud. While international investors were once willing to gamble on Gulf countries, largely because of their oil wealth, the global financial meltdown made them less willing to take risks. The Dubai crisis will only heighten those concerns, analysts say. “Foreign investors will sharply divide the way they recognize investment opportunities in the Gulf based on which countries have oil and which don’t,” said Simon Henderson, a Gulf energy specialist at the Washington Institute for Near East Policy. Unlike Saudi Arabia, Qatar or even Dubai’s neighboring emirate, Abu Dhabi, Dubai lacks oil wealth. The government-backed entities known as Dubai Inc. tapped credit markets to engineer the city-state’s spectacular growth. Over the past decade, the tiny emirate, one of seven that make up the United Arab Emirates, transformed itself into a regional financial hub, a magnet for tourists and foreign workers. It constructed high-rises with stellar Persian Gulf views and an indoor ski slope, and offered a freewheeling lifestyle frowned upon elsewhere in the UAE, as well as the region. A manmade island shaped like a palm frond beckoned. Dubai boldly built the world’s tallest skyscraper, Burj Dubai, set to open in January. The global credit crisis derailed the dream. Property prices have plunged by 50 percent since last year. Projects were canceled, and expatriate workers left en masse. Today, buildings sit unfinished, apartments unsold or empty. Dubai World’s announcement that it was seeking at least a six-month delay in paying back its debt sent shock waves around the world Friday. Oil prices dived to near $74 per barrel, and Asian markets tumbled for the second consecutive day. In the U.S., the Dow Jones industrials lost more than 150 points. Dubai’s overall debt load is seen as at least $80 billion, underscoring how grave Dubai World’s announcement was for the emirate’s financial health. Later comments by one of the emirate’s top financial officials that the call for a delay was a “sensible business decision” and “carefully planned” did little to mitigate the damage. Henderson said it was “an extraordinarily arrogant decision,” made public on the eve of Thanksgiving in the U.S. and just before a three-day Islamic feast. “It’s impossible they don’t realize this will be taken as a personal insult by the world’s financial community,” Henderson said, adding that it would not be surprising if creditors were unsympathetic. Fears about the debt problems were compounded by lack of detail provided by Dubai authorities. The announcement also raised worries that reassurances provided by Dubai over the past few months were just an attempt to hide the magnitude of the problem. “When people don’t know what the extent of the problem is, their concerns deepen,” said Jane Kinninmont, a London-based specialist on Gulf economies at the Economist Intelligence Unit. Kinninmont said that there is a “real shortage” of economic data to assess the recession’s impact on Dubai. Two Abu Dhabi majority-owned banks had already bought up $15 billion in Dubai bonds as part of a $20 billion program earlier this year. Analysts are concerned that Abu Dhabi may not back all of Dubai’s assets, and that international lenders will take a second look at investing there and in other Gulf countries with a history of a lack of transparency. Already, the effects have begun to surface. Standard & Poor’s downgraded its ratings of several Dubai government-related entities, linking its decision to the Dubai World announcement. “In our view, such a restructuring may be considered a default under our default criteria, and represents the failure of the Dubai government to provide timely financial support to a core government-related entity,” said S&P analysts. Elsewhere in the region, Bahrain-based Gulf International Bank said it was delaying a sale of $4 billion in five-year bonds that had already garnered 60 orders, pinning its decision on Dubai and the “best interest of investors participating in the deal.” The latest news is at the very least a wake-up call to investors, analysts say. “Dubai’s current problems are a long overdue consequence of the bursting of the global property bubble rather than the start of a new financial crisis,” analysts at Capital Economics concluded in a research note Friday. Analysts said they were troubled by Dubai’s apparent determination to downplay its financial predicament. Dubai’s ruler, Sheik Mohammed bin Rashid Al-Maktoum, had continually dismissed concerns over the city-state’s liquidity and denied for months that the economic downturn even touched the glitzy city-state. Two months ago, he told Dubai’s critics to “shut up.” __ AP Business Writer Tarek El-Tablawy contributed to this report from Cairo.

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Mark Pittman, Bloomberg Reporter Who Predicted Subprime Crisis, Dies at 52

November 27, 2009

By Bob Ivry Nov. 27 (Bloomberg) — Mark Pittman , the award-winning investigative reporter whose fight to open the Federal Reserve to more scrutiny led Bloomberg News to sue the central bank and win, died Wednesday in Yonkers, New York. He was 52. Pittman suffered from heart-related illnesses. The precise cause of his death wasn’t known, said his friend William Karesh, vice president of the Global Health Program at the Bronx, New York-based Wildlife Conservation Society. Pittman, a former police-beat reporter who joined Bloomberg News in 1997, wrote stories in 2007 predicting the collapse of the banking system. That year, he won the Gerald Loeb Award from the UCLA Anderson School of Management, the highest accolade in financial journalism, for “Wall Street’s Faustian Bargain,” a series of articles on the breakdown of the U.S. mortgage industry. Pittman’s fight to make the Fed more accountable resulted in an Aug. 24 victory in Manhattan Federal Court affirming the public’s right to know about the central bank’s more than $2 trillion in loans to financial firms. Pittman drew the attention of filmmakers Andrew and Leslie Cockburn, who gave him a prominent role in their documentary about subprime mortgages, “American Casino,” which was shown at New York City’s Tribeca Film Festival in May. “Who sues the Fed? One reporter on the planet,” said Emma Moody, a Wall Street Journal editor who worked with Pittman at Bloomberg. “The more complex the issue, the more he wanted to dig into it. Years ago, he forced us to learn what a credit- default swap was. He dragged us kicking and screaming.” Police Reporter, Ranch Hand James Mark Pittman was born Oct. 25, 1957, in Kansas City, Kansas, where he played linebacker on the high school football team. He took engineering classes at the University of Kansas in Lawrence before graduating with a degree in journalism in 1981. He was married soon after and had a daughter, Maggie, in 1983. The marriage ended in divorce. Pittman’s first reporting job, covering the police department for the Coffeyville Journal in southern Kansas, paid so little he took a part-time job as a ranch hand across the Oklahoma border in Lenapah, according to an interview he gave to Ryan Chittum for the Columbia Journalism Review’s The Audit, a watchdog for the business press. “What a funny guy — huge personality,” Chittum said in an e-mail message. “Mark was my favorite reporter working. In a time when too much journalism is timid or co-opted, Mark personified the whole ‘afflict the comfortable’ tenet of the business. Mark’s passing is a huge loss for journalism at a time when we can least afford it.” No Small Moves Pittman spent a year in Rochester, New York, with the Democrat & Chronicle newspaper and 12 years at the Times Herald- Record in Middletown, New York, where he met his second wife, Laura Fahrenthold-Pittman in 1995. “All I know is we fell in love the moment we met,” Fahrenthold-Pittman said in an interview Friday. “We moved in together a week later. He was as serious about his family life as he was about work. Mark did nothing in a small way.” Pittman joined Bloomberg News in 1997. In 2007, he was writing about the securitization of home loans when subprime borrowers, who have bad or limited credit histories, began missing payments on their mortgages at a faster pace. Pittman’s June 29, 2007, article, headlined “S&P, Moody’s Hide Rising Risk on $200 Billion of Mortgage Bonds,” was excoriated at the time by Portfolio.com for “trying to play ‘gotcha’ with the ratings agencies.” “And that really isn’t helpful,” said the unsigned posting. Beating the Pack Pittman’s story proved prescient. So did his reports on U.S. banks exporting toxic mortgages overseas, on Treasury Secretary Henry M. Paulson’s role in creating those troubled assets while he was chief executive officer of Goldman Sachs Group Inc. and on the U.S. bailout of American International Group Inc. “He’s been on this crisis since before the crisis,” said Gretchen Morgenson , the Pulitzer Prize-winning financial columnist for the New York Times. “He was the best at burrowing into the most complex securities Wall Street could come up with and explaining the implications of them to readers of all levels of sophistication. His investigative work during the crisis set the standard for other reporters everywhere. He was a giant.” In the “Faustian Bargain” series, Pittman explained how 5 percent of U.S. mortgage borrowers missing monthly payments could lead to a freeze in lending throughout the world. ‘Fearless, Most Trusted’ “Mark Pittman proved to be the most fearless, most trusted reporter on the most important beat during the 12 years he wrote about credit markets, corporate finance and the Federal Reserve at Bloomberg News,” said Bloomberg Editor-in-Chief Matthew Winkler . “His colleagues will miss his laughter and generous sense of mission. Bloomberg readers were rewarded by his many achievements culminating with a federal court ruling validating his search for records of taxpayer-financed policies withheld from the public and the Gerald Loeb Award.” Public policy would be more effective if reporters, lawmakers and citizens understood how the financial system worked and why the crisis happened, Pittman said in the Feb. 27, 2009, interview with Chittum. “Hopefully, we will be able to inform the people enough to know how badly we’re getting screwed,” he said with a laugh. “We need to know how to prevent it from happening again, and we need to know who did it.” Standing 6 feet 4 inches with a booming laugh, a loud telephone voice, and a taste for bourbon, Pittman made lifelong friends on Wall Street, in Congress, in journalism circles and in the artistic community after he and his wife opened an art gallery in Yonkers in 2005. ‘A Great Loss’ “I always learned something new when I spoke with Mark,” said Representative Scott Garrett , a New Jersey Republican on the House Financial Services Committee. “He was dogged in pursuit of the truth. This is a great loss for journalism and for those who relied on Mark for his insight.” In “American Casino,” the title of which comes from an expression Pittman uses in the documentary, the filmmakers profile subprime borrowers who are losing their homes, mortgage brokers who made loans they knew their customers could never repay and bankers and ratings analysts whose companies profited from the housing boom. Pittman provides an anchor for the narrative, at one point searching the Bloomberg terminal and finding the mortgage of a Baltimore teacher going through foreclosure inside a security underwritten by Goldman Sachs. Celebrating Life “He was a wonderful friend, a seeker of truth, a fighter for right, a proud family man, a big and jovial hand, a lover of food, drink and celebration of life,” said Joshua Rosner , managing director of Graham Fisher & Co., a consulting and analysis firm in New York. “This is a personal loss, a professional loss and a societal loss. He is truly irreplaceable.” Along with his wife and daughter Maggie, Pittman is survived by daughters Nell, 10, and Susannah, 8, from his second marriage; his father Warren Pittman; mother Donna Pittman- Nealey; and brothers Barry Pittman and Craig Pittman. “He was so large — in spirit and in person — and his passion for his craft was so great, it is impossible to think that it could just end,” said Jeffrey Taylor, Pittman’s editor on the “Faustian Bargain” series. Bloomberg’s lawsuit against the Fed, which was filed after Pittman’s requests under the U.S. Freedom of Information Act were denied, continues without him. The central bank won a delay pending an appeal, which is scheduled for the week of Jan. 4. At the time of his death, Pittman’s outgoing messages offered a link to a black-and-white photo of Woody Guthrie . Written on Guthrie’s guitar: “This machine kills fascists.” To contact the reporter on this story: Bob Ivry in New York at bivry@bloomberg.net

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Mark Pittman, Bloomberg Reporter Who Predicted Subprime Crisis, Dies at 52

November 27, 2009

By Bob Ivry Nov. 27 (Bloomberg) — Mark Pittman , the award-winning investigative reporter whose fight to open the Federal Reserve to more scrutiny led Bloomberg News to sue the central bank and win, died Wednesday in Yonkers, New York. He was 52. Pittman suffered from heart-related illnesses. The precise cause of his death wasn’t known, said his friend William Karesh, vice president of the Global Health Program at the Bronx, New York-based Wildlife Conservation Society. Pittman, a former police-beat reporter who joined Bloomberg News in 1997, wrote stories in 2007 predicting the collapse of the banking system. That year, he won the Gerald Loeb Award from the UCLA Anderson School of Management, the highest accolade in financial journalism, for “Wall Street’s Faustian Bargain,” a series of articles on the breakdown of the U.S. mortgage industry. Pittman’s fight to make the Fed more accountable resulted in an Aug. 24 victory in Manhattan Federal Court affirming the public’s right to know about the central bank’s more than $2 trillion in loans to financial firms. Pittman drew the attention of filmmakers Andrew and Leslie Cockburn, who gave him a prominent role in their documentary about subprime mortgages, “American Casino,” which was shown at New York City’s Tribeca Film Festival in May. “Who sues the Fed? One reporter on the planet,” said Emma Moody, a Wall Street Journal editor who worked with Pittman at Bloomberg. “The more complex the issue, the more he wanted to dig into it. Years ago, he forced us to learn what a credit- default swap was. He dragged us kicking and screaming.” Police Reporter, Ranch Hand James Mark Pittman was born Oct. 25, 1957, in Kansas City, Kansas, where he played linebacker on the high school football team. He took engineering classes at the University of Kansas in Lawrence before graduating with a degree in journalism in 1981. He was married soon after and had a daughter, Maggie, in 1983. The marriage ended in divorce. Pittman’s first reporting job, covering the police department for the Coffeyville Journal in southern Kansas, paid so little he took a part-time job as a ranch hand across the Oklahoma border in Lenapah, according to an interview he gave to Ryan Chittum for the Columbia Journalism Review’s The Audit, a watchdog for the business press. “What a funny guy — huge personality,” Chittum said in an e-mail message. “Mark was my favorite reporter working. In a time when too much journalism is timid or co-opted, Mark personified the whole ‘afflict the comfortable’ tenet of the business. Mark’s passing is a huge loss for journalism at a time when we can least afford it.” No Small Moves Pittman spent a year in Rochester, New York, with the Democrat & Chronicle newspaper and 12 years at the Times Herald- Record in Middletown, New York, where he met his second wife, Laura Fahrenthold-Pittman in 1995. “All I know is we fell in love the moment we met,” Fahrenthold-Pittman said in an interview Friday. “We moved in together a week later. He was as serious about his family life as he was about work. Mark did nothing in a small way.” Pittman joined Bloomberg News in 1997. In 2007, he was writing about the securitization of home loans when subprime borrowers, who have bad or limited credit histories, began missing payments on their mortgages at a faster pace. Pittman’s June 29, 2007, article, headlined “S&P, Moody’s Hide Rising Risk on $200 Billion of Mortgage Bonds,” was excoriated at the time by Portfolio.com for “trying to play ‘gotcha’ with the ratings agencies.” “And that really isn’t helpful,” said the unsigned posting. Beating the Pack Pittman’s story proved prescient. So did his reports on U.S. banks exporting toxic mortgages overseas, on Treasury Secretary Henry M. Paulson’s role in creating those troubled assets while he was chief executive officer of Goldman Sachs Group Inc. and on the U.S. bailout of American International Group Inc. “He’s been on this crisis since before the crisis,” said Gretchen Morgenson , the Pulitzer Prize-winning financial columnist for the New York Times. “He was the best at burrowing into the most complex securities Wall Street could come up with and explaining the implications of them to readers of all levels of sophistication. His investigative work during the crisis set the standard for other reporters everywhere. He was a giant.” In the “Faustian Bargain” series, Pittman explained how 5 percent of U.S. mortgage borrowers missing monthly payments could lead to a freeze in lending throughout the world. ‘Fearless, Most Trusted’ “Mark Pittman proved to be the most fearless, most trusted reporter on the most important beat during the 12 years he wrote about credit markets, corporate finance and the Federal Reserve at Bloomberg News,” said Bloomberg Editor-in-Chief Matthew Winkler . “His colleagues will miss his laughter and generous sense of mission. Bloomberg readers were rewarded by his many achievements culminating with a federal court ruling validating his search for records of taxpayer-financed policies withheld from the public and the Gerald Loeb Award.” Public policy would be more effective if reporters, lawmakers and citizens understood how the financial system worked and why the crisis happened, Pittman said in the Feb. 27, 2009, interview with Chittum. “Hopefully, we will be able to inform the people enough to know how badly we’re getting screwed,” he said with a laugh. “We need to know how to prevent it from happening again, and we need to know who did it.” Standing 6 feet 4 inches with a booming laugh, a loud telephone voice, and a taste for bourbon, Pittman made lifelong friends on Wall Street, in Congress, in journalism circles and in the artistic community after he and his wife opened an art gallery in Yonkers in 2005. ‘A Great Loss’ “I always learned something new when I spoke with Mark,” said Representative Scott Garrett , a New Jersey Republican on the House Financial Services Committee. “He was dogged in pursuit of the truth. This is a great loss for journalism and for those who relied on Mark for his insight.” In “American Casino,” the title of which comes from an expression Pittman uses in the documentary, the filmmakers profile subprime borrowers who are losing their homes, mortgage brokers who made loans they knew their customers could never repay and bankers and ratings analysts whose companies profited from the housing boom. Pittman provides an anchor for the narrative, at one point searching the Bloomberg terminal and finding the mortgage of a Baltimore teacher going through foreclosure inside a security underwritten by Goldman Sachs. Celebrating Life “He was a wonderful friend, a seeker of truth, a fighter for right, a proud family man, a big and jovial hand, a lover of food, drink and celebration of life,” said Joshua Rosner , managing director of Graham Fisher & Co., a consulting and analysis firm in New York. “This is a personal loss, a professional loss and a societal loss. He is truly irreplaceable.” Along with his wife and daughter Maggie, Pittman is survived by daughters Nell, 10, and Susannah, 8, from his second marriage; his father Warren Pittman; mother Donna Pittman- Nealey; and brothers Barry Pittman and Craig Pittman. “He was so large — in spirit and in person — and his passion for his craft was so great, it is impossible to think that it could just end,” said Jeffrey Taylor, Pittman’s editor on the “Faustian Bargain” series. Bloomberg’s lawsuit against the Fed, which was filed after Pittman’s requests under the U.S. Freedom of Information Act were denied, continues without him. The central bank won a delay pending an appeal, which is scheduled for the week of Jan. 4. At the time of his death, Pittman’s outgoing messages offered a link to a black-and-white photo of Woody Guthrie . Written on Guthrie’s guitar: “This machine kills fascists.” To contact the reporter on this story: Bob Ivry in New York at bivry@bloomberg.net

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Sarkozy Ally Wins European Finance Post, Presaging Fight Over Regulations

November 27, 2009

By Ben Moshinsky Nov. 28 (Bloomberg) — French President Nicolas Sarkozy won his bid to install an ally as the European Commission’s next financial-services regulator, fueling British concern that traders and hedge funds will face stricter rules. Michel Barnier , a former French agriculture minister, was picked by Commission President Jose Barroso to lead a push for tougher bank regulation as part of a new team that he announced yesterday. Barroso rebuffed efforts to split financial oversight from enforcing the EU’s internal-market rules. French officials have pushed for tighter regulations on hedge funds than has outgoing internal-markets chief Charlie McCreevy of Ireland and criticized him for not responding forcefully enough to the financial crisis. The U.K., seeking to protect its financial-services industry, has tried to weaken proposed rules for hedge funds and private-equity managers. “Financial services are a vital British economic interest and, while we want to coordinate regulation internationally, the European Commission’s proposals have the potential to do serious harm to our financial-services industry,” William Hague , who speaks for the U.K.’s opposition Conservative Party on foreign policy, said in an e-mailed statement. Seeking to allay British concerns that France would take almost total control of financial regulation, Barroso appointed Jonathan Faull , a U.K. diplomat at the commission, as director general of financial services, a senior staff role. “I’m pragmatic, I’m ready to work with everyone,” Barnier said at a press conference in Paris. “You don’t need to convince me of the importance of London as a financial center. It was my initiative to have a British deputy. It’s not the first time I’ve had one, it’s always worked very well.” Commission Appointments The 27-member commission, which followed the appointment last week of Belgium’s Herman Van Rompuy as president and Britain’s Catherine Ashton as foreign minister, includes Spain’s Joaquin Almunia as antitrust chief, Finland’s Olli Rehn as economy commissioner and Karel De Gucht of Belgium as the top trade negotiator. Denmark’s Connie Hedegaard will be climate commissioner, Guenther Oettinger of Germany energy chief and Italy’s Antonio Tajani industrial-policy head. Sarkozy began his public campaign for the internal-market job immediately after Van Rompuy and Ashton were named Nov. 19. Were Barnier, 58, to follow Sarkozy’s views, London’s financial firms would face tougher laws from Europe. Sarkozy said in May he wanted a European banking regulator with “real sanctioning power.” “We’ll work with whoever we get,” Lesley McLeod , spokeswoman at the British Bankers’ Association, said in a telephone interview in London. U.K. Position The U.K. is currently negotiating with other member states to weaken the powers of European banking regulator proposed by the commission in September. Talks are set to continue at a meeting of European finance ministers in Brussels next week. Barnier will oversee the development of legislation affecting all areas of financial activity, from bank failures to hedge funds and over-the-counter derivatives trading. The commission hinted at imposing limits on the size of bets traders can make on movements in commodity prices, while the U.K. hedge fund industry faces debt and bonus restrictions. “I’d be more worried about the Germans than the French,” said Peter O’Dwyer, director at Trinity Fund Administration Ltd., a Dublin-based fund administrator. “The French and German agendas are different in this directive in my opinion, the French interest is building up Paris as a financial center, and the German agenda is keeping private equity funds out of Germany.” Splitting the Job Barroso said he decided against splitting financial regulation from duties for overseeing the internal EU market of 500 million consumers. Financial services will “probably” be part of the duties for the commissioner for economic and monetary affairs “in the future,” Barroso said. “That should come only when we have a real internal market for financial services.” Barnier, who was France’s minister for agriculture from 2007 to 2009, said in a May 2009 interview that speculation in agricultural commodities was “inexcusable.” The commission is drafting regulations for derivatives trading that will encompass food-commodity trading. The move marks Barnier’s second time working at the EU regulator in Brussels, where he was commissioner for regional policy from 1999 to 2004. After leaving he immediately became foreign minister of France in Jean- Pierre Raffarin’s government. Barnier, who helped organize the 1992 Winter Olympics in Albertville, France, started his political career at 27, when he was elected to the French National Assembly as a deputy for the Savoie region. To contact the reporters on this story: Ben Moshinsky in Brussels at bmoshinsky@bloomberg.net

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Sarkozy Ally Wins European Finance Post, Presaging Fight Over Regulations

November 27, 2009

By Ben Moshinsky Nov. 28 (Bloomberg) — French President Nicolas Sarkozy won his bid to install an ally as the European Commission’s next financial-services regulator, fueling British concern that traders and hedge funds will face stricter rules. Michel Barnier , a former French agriculture minister, was picked by Commission President Jose Barroso to lead a push for tougher bank regulation as part of a new team that he announced yesterday. Barroso rebuffed efforts to split financial oversight from enforcing the EU’s internal-market rules. French officials have pushed for tighter regulations on hedge funds than has outgoing internal-markets chief Charlie McCreevy of Ireland and criticized him for not responding forcefully enough to the financial crisis. The U.K., seeking to protect its financial-services industry, has tried to weaken proposed rules for hedge funds and private-equity managers. “Financial services are a vital British economic interest and, while we want to coordinate regulation internationally, the European Commission’s proposals have the potential to do serious harm to our financial-services industry,” William Hague , who speaks for the U.K.’s opposition Conservative Party on foreign policy, said in an e-mailed statement. Seeking to allay British concerns that France would take almost total control of financial regulation, Barroso appointed Jonathan Faull , a U.K. diplomat at the commission, as director general of financial services, a senior staff role. “I’m pragmatic, I’m ready to work with everyone,” Barnier said at a press conference in Paris. “You don’t need to convince me of the importance of London as a financial center. It was my initiative to have a British deputy. It’s not the first time I’ve had one, it’s always worked very well.” Commission Appointments The 27-member commission, which followed the appointment last week of Belgium’s Herman Van Rompuy as president and Britain’s Catherine Ashton as foreign minister, includes Spain’s Joaquin Almunia as antitrust chief, Finland’s Olli Rehn as economy commissioner and Karel De Gucht of Belgium as the top trade negotiator. Denmark’s Connie Hedegaard will be climate commissioner, Guenther Oettinger of Germany energy chief and Italy’s Antonio Tajani industrial-policy head. Sarkozy began his public campaign for the internal-market job immediately after Van Rompuy and Ashton were named Nov. 19. Were Barnier, 58, to follow Sarkozy’s views, London’s financial firms would face tougher laws from Europe. Sarkozy said in May he wanted a European banking regulator with “real sanctioning power.” “We’ll work with whoever we get,” Lesley McLeod , spokeswoman at the British Bankers’ Association, said in a telephone interview in London. U.K. Position The U.K. is currently negotiating with other member states to weaken the powers of European banking regulator proposed by the commission in September. Talks are set to continue at a meeting of European finance ministers in Brussels next week. Barnier will oversee the development of legislation affecting all areas of financial activity, from bank failures to hedge funds and over-the-counter derivatives trading. The commission hinted at imposing limits on the size of bets traders can make on movements in commodity prices, while the U.K. hedge fund industry faces debt and bonus restrictions. “I’d be more worried about the Germans than the French,” said Peter O’Dwyer, director at Trinity Fund Administration Ltd., a Dublin-based fund administrator. “The French and German agendas are different in this directive in my opinion, the French interest is building up Paris as a financial center, and the German agenda is keeping private equity funds out of Germany.” Splitting the Job Barroso said he decided against splitting financial regulation from duties for overseeing the internal EU market of 500 million consumers. Financial services will “probably” be part of the duties for the commissioner for economic and monetary affairs “in the future,” Barroso said. “That should come only when we have a real internal market for financial services.” Barnier, who was France’s minister for agriculture from 2007 to 2009, said in a May 2009 interview that speculation in agricultural commodities was “inexcusable.” The commission is drafting regulations for derivatives trading that will encompass food-commodity trading. The move marks Barnier’s second time working at the EU regulator in Brussels, where he was commissioner for regional policy from 1999 to 2004. After leaving he immediately became foreign minister of France in Jean- Pierre Raffarin’s government. Barnier, who helped organize the 1992 Winter Olympics in Albertville, France, started his political career at 27, when he was elected to the French National Assembly as a deputy for the Savoie region. To contact the reporters on this story: Ben Moshinsky in Brussels at bmoshinsky@bloomberg.net

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Dubai Debt Leads Bloomberg Week in Review

November 27, 2009
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Dubai Debt Leads Bloomberg Week in Review

November 27, 2009
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Dubai woes threaten U.S. property market

November 27, 2009

By Elinor Comlay and Jonathan Stempel – Analysis NEW YORK (Reuters) – Dubai’s debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly

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The One Area Hiring’s On The Rise? Low-Paid Internships

November 27, 2009

In boom times, companies with too much work for existing employees — yet not enough work to justify another hire — may have turned to temporary workers. But with the economy still in the doldrums, companies again are opting for unpaid or low-paid internships to get the extra work done.

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An Introduction to the Commercial Real Estate Business – Financial Web

November 27, 2009

Dealing with commercial real estate is very different than working with residential real estate . With residential real estate you deal with single family homes, duplexes and small apartments. With commercial real estate you will be …

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Roberto Alomar, Larkin Among 15 New Players on Ballot for Baseball’s Hall

November 27, 2009
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Tiger Woods Injured in Car Crash Near Florida Home, Released From Hospital

November 27, 2009
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Lapham’s Quarterly: The Darkest Days: Black Friday, Saturday, Sunday, And The Rest

November 27, 2009

Despite the popularity of Black Friday among retailers and the local news media, every day of the week has at some point or another been described as “black.” In fact, an entire week can be cobbled together out of the darkness. For more dark days, visit www.laphamsquarterly.org . Our Deja Vu blog can be found here . Black Sunday (1977) 1977 movie about a blimp pilot / Vietnam veteran driven mad by torture as a POW who uses his intricate knowledge of blimps to attempt to detonate a bomb at the Super Bowl. Much of the film was shot live at Super Bowl X, in which the Dallas Cowboys triumphed over the Pittsburgh Steelers. Black Monday (1987) Describes the largest one-day decline in stock market history which occurred on Monday October 19 1987. Also ascribed to part of the Black Long Weekend of 1929 (see “Black Thursday” and “Black Tuesday”) Black Tuesday (1929, 2001) The day the financial repercussions of 1929′s Black Thursday set in, causing wide-spread panic when everyone attempted to pull out of the market at the same time. Also used to describe the events of September 11th, 2001. Black Wednesday (1992) Describes the situation in Britain on September 16, 1992 when the government was forced to withdraw the pound from the European Exchange Rate Mechanism due to currency speculators. The fiasco cost the UK Treasury an estimated 3.3 billion pounds. Black Thursday (1929, 1993) This was, of course, the day of the 1929 Stock Market Crash, but is it also used to describe a terrible Thursday in 1993 when Phillies player Pete Incavigila shouted obscenities at his fans and stormed out of an autograph session at the Granite Run Mall in Media, PA. Black Friday (1869, 1929, present) On September 24, 1869, during one of the great scandals of the Reconstruction era, two speculators sent the market into freefall by buying up government gold in a time the government was run primarily on credit. Black Friday is perhaps better known as, the day after Thanksgiving, on which the Christmas retail season pins most of its hopes. In the United Kingdom, it’s the name given to the last Friday before Christmas when widespread alcohol abuse is expected to occur and police are given extra leniency to combat any disturbances of the peace. Also in Europe, this is used to refer to the “Black Thursday” 1929 crash because of the time difference. Black Saturday (1621) Saturdays are rarely ruinous. The only Black Saturday on record occurred when a particularly nasty storm raged over the skies of Scotland on August 4th, 1621. This was largely regarded as the judgment of God on recent acts passed by the Scottish Parliament concerning the Episcopal Church.

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Secret Service Says It Is `Embarrassed’ by Security Breach at White House

November 27, 2009
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Terrorism Is Suspected in Fatal Russian Train Derailment, Vesti Reports

November 27, 2009

By Anastasia Ustinova Nov. 28 (Bloomberg) — Terrorism is suspected in the deadly derailment late yesterday of an express train bound for St. Petersburg from Moscow, state-run television station Vesti said, citing unidentified investigators. Passengers reported hearing an explosion before the derailment, the station said. Investigators discovered a small “shell crater” at the scene, the station said. All trains between Moscow and St. Petersburg have been halted. At least 10 people died and 55 were injured in the incident, according to Vesti. The derailment occurred at 9:34 p.m. Moscow time, according to the Web site of OAO Russian Railways. Four of the train’s wagons derailed, and investigators are looking into the cause, the statement said. To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net

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Gate-Crashing Couple Met Obama in Receiving Line at White House, Aide Says

November 27, 2009

By Roger Runningen and Nicholas Johnston Nov. 27 (Bloomberg) — Secret Service agents failed to follow established protocols that should have prevented a Washington-area couple from crashing a state dinner at the White House, the director of the Secret Service, Mark Sullivan , said. The agency, in charge of protecting the president, is “deeply concerned and embarrassed” about the breach and is taking “appropriate measures” to ensure it doesn’t happen again, Sullivan said in a statement. Tareq and Michaele Salahi got through security checkpoints at the White House to attend events surrounding the Nov. 24 state dinner for Indian Prime Minister Manmohan Singh even though they weren’t on the official guest list. The incident prompted a review of Secret Service procedures and may trigger a criminal investigation. “The preliminary findings of our internal investigation have determined established protocols were not followed at an initial checkpoint,” Sullivan said. Michaele Salahi posted photos on her Facebook page of the couple posing prior to the dinner with Vice President Joe Biden and White House Chief of Staff Rahm Emanuel as well as other guests. It wasn’t clear when they left the event, the first state dinner of Barack Obama’s presidency. ‘Failing is Ours’ “Although these individuals went through magnetometers and other levels of screening, they should have been prohibited from entering the event entirely,” Sullivan said. “That failing is ours.” The Salahis and their publicity agent in Washington didn’t respond to telephone calls and e-mails requesting comment. The couple’s attorney in Baltimore, Paul Gardner, said they were approved to enter the White House. “My clients were cleared by the White House to be there,” Gardner said in an e-mail response. He didn’t elaborate. The couple has been vying for a spot on a cable reality- television program, the Washington Post reported. Michaele Salahi’s Facebook page says she is a model who has appeared in various national magazines. She lists her interests as “Fashion, Travel, DC Galas/Balls for Charitable & Political Support, Horses, Polo & Champagne.” The Secret Service investigation is being conducted by the agency’s Office of Professional Responsibility, an internal affairs unit that looks into allegations of misconduct or matters involving protection of the president. Investigation “The fact that they were not on the invitation list and they did get in, that’s the core of this investigation,” Secret Service spokesman Jim Mackin said earlier today. The couple was allowed past one checkpoint to the metal detectors. “We don’t know why, we don’t know why that judgment was made.” He said an agent “may have thought there was a problem with the list, and that they would be verified at the next checkpoint. It won’t happen again.” Mackin said there was no physical threat to the president or vice president because the couple had to pass through the metal detectors, only one of several layers of security that “we don’t talk about.” “Once people come into the White House, that doesn’t mean we all stand back, let the party take place,” he said. “We’re still working.” Brian Williams , anchor of the NBC Nightly News and an invited guest at the dinner, said in an interview on the network that he noticed the couple when he arrived at the White House. Video Camera The vehicle carrying them was initially turned away at the east gate of the White House grounds and the couple got out, trailed by a person with a video camera, Williams said. He later saw them at the cocktail reception. There was no evidence the camera operator entered the White House grounds. Williams said he passed through two identity checks and three security checkpoints going into the dinner. Ari Fleischer , who was former President George W. Bush’s press secretary, recalled how a person named Richard Weaver penetrated security at the Capitol after Bush’s swearing-in ceremony on Jan. 20, 2001. This was after the Secret Service distributed Weaver’s picture following a similar incident at President Bill Clinton’s second inauguration in 1997. Weaver “still managed to get through, approached the president and gave him a coin and departed,” Fleischer said of the encounter at the East Front of the Capitol. At a state dinner, “nobody, but nobody, should get in if they’re not on a list,” Fleischer said. “Unless somebody on the political side, or the Office of the Social Secretary overruled the Secret Service, then it certainly did fall to the Secret Service.” The White House, which is seeking a full review of security procedures by the Secret Service, didn’t respond to requests for comment. “It looks terrible, it looks bad, but those gate crashers went through the very same physical procedures” as other guests to get on the White House grounds, Fleischer said. “It looks bad, but it’s nowhere near as bad as it sounds, in reality.” To contact the reporters on this story: Roger Runningen in Washington at rrunningen@bloomberg.net ; Nicholas Johnston in Washington at njohnston3@bloomberg.net

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Bank of America Says Pay for Desoer, Price Amended After Feinberg’s Review

November 27, 2009

By Peter Eichenbaum Nov. 27 (Bloomberg) — Bank of America Corp. , the biggest U.S. bank by assets, said Chief Financial Officer Joe L. Price and mortgage head Barbara Desoer will receive less in salary for 2009, citing a review by U.S. paymaster Kenneth Feinberg . Price and Desoer had their annual salaries set at $500,000, the Charlotte, North Carolina-based lender said today in a regulatory filing. The two executives also get “stock unit awards” in lieu of cash, valued at $5.25 million for Price and $3.95 million for Desoer, the filing said. The adjustments in 2009 base salary were retroactive to Nov. 1, the filing said. The bank’s March 18 proxy statement said their 2008 salaries were $800,000. They also received stock and option awards, with total 2008 compensation for Price of $4.02 million, and $7.42 million for Desoer. Responding to outrage stoked by bonuses at failing companies, the U.S. Treasury Department named Feinberg in June to evaluate compensation at seven bailed-out firms. The 64-year-old Washington lawyer has already persuaded Bank of America Chief Executive Officer Kenneth D. Lewis to give up his salary and bonus for 2009. Lewis plans to retire on Dec. 31. The revised terms for Price and Desoer include restrictions on perquisites that would require them to return any 2009 amounts exceeding $25,000. Tax “gross-ups” tied to certain elements of their compensation are eliminated, the filing said. Gross-ups typically are payments to cover the cost of income taxes so that an executive receives the full value of benefits and perks. Feinberg and Scott Silvestri , a spokesman at Bank of America Corp., didn’t immediately respond to requests for comment. To contact the reporter on this story: Peter Eichenbaum in New York at peichenbaum@bloomberg.net

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U.S. banks less exposed to Dubai than Europe

November 27, 2009

U.S. banks are probably less exposed than European rivals to a potential debt default by Dubai World, but a lack of transparency and the interconnectedness of the modern financial system make it difficult to know which institutions are ultimately

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Dubai Jitters Pound Stocks

November 27, 2009

NEW YORK — Gold prices fell for the first time in 10 days and oil slid as jitters over debt problems in the Middle Eastern city of Dubai drove the dollar higher and pounded stocks. Investors grew worried this week that the emirate’s government-backed investment company was in danger of defaulting on $60 billion in debt. The city’s main investment arm said it was seeking more time to repay its borrowings. Overseas markets fell Thursday and Friday. U.S. markets were closed Thursday for Thanksgiving but the Dow Jones industrial average tumbled 155 points in a holiday-shortened session Friday. The drop in riskier assets like stocks fanned demand for safe-haven investments, including the dollar. Commodities are priced in dollars and tend to fall when the dollar strengthens because that makes them more expensive for foreign investors. Gold for February delivery fell $13.10 to settle at $1,755.50 an ounce on the New York Mercantile Exchange. Investors have been pumping money into gold looking for protection from a falling dollar, which had lost its luster in recent months because record-low U.S. interest rates made unattractive returns and because fear had been easing about the global economy. Other metals fell alongside gold. March silver slid 46.5 cents to $18.335 an ounce, while March copper futures fell 7.15 cents to $3.1255 a pound. December platinum fell $32.10 to $1,446.90 an ounce. The ICE Futures US dollar index, a widely used measure of the dollar’s value against other currencies, rose. Energy prices also fell. Benchmark crude for January delivery fell $1.91 to settle at $76.05 on the New York Mercantile Exchange after falling more than $5 during trading. Also at the Nymex, gasoline for December delivery fell 7.14 cents to $1.9262 a gallon. Heating oil slid 2.79 cents to $1.9622 a gallon. Natural gas for January delivery rose 2.9 cents to $5.192 per 1,000 cubic feet. On the Chicago Board of Trade, March wheat futures fell 1.75 cents to $5.6975 a bushel, while March corn rose $5.50 to $4.135 a bushel. January soybeans fell 1.5 cents to $10.53 a bushel. Prices for cotton, coffee, cocoa and pork bellies fell. Orange juice and sugar rose.

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Roberto Alomar, Larkin Among 15 New Players on Ballot for …

November 27, 2009

“ Distressed Debt ” via Industry-News.org in Google Reader : By Elinor Comlay and Jonathan Stempel – Analysis NEW YORK (Reuters) – Dubai’s debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates …

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Secret Service Says It Is `Embarrassed' by Security Breach at …

November 27, 2009

“ Distressed Debt ” via Industry-News.org in Google Reader : The decision by the Dubai government to seek a six-month debt standstill for its largest subsidiary Dubai World shouldnt necessarily come as a surprise to most real estate …

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Terrorism Is Suspected in Fatal Russian Train Derailment, Vesti …

November 27, 2009

“ Distressed Debt” via Industry-News.org in Google Reader : By Elinor Comlay and Jonathan Stempel – Analysis NEW YORK (Reuters) – Dubai’s debt woes could further unhinge an already fragile U.S. commercial real estate , as it illustrates …

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Bank of America Says Pay for Desoer, Price Amended After …

November 27, 2009

“ Distressed Debt ” via Industry-News.org in Google Reader : after Dubai asked banks to allow its investment vehicle Dubai World to suspend for six months payments on debt of $59 billion. This comes as big bets on Persian Gulf real estate …

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No material exposure to Dubai corporates: ICICI

November 27, 2009

New Delhi: Amid fears of a debt crisis in Dubai, ICICI Bank today said it does not have any significant exposure to Dubai corporates. ICICI Bank has no material, non-India linked exposure to Dubai corporates, an ICICI

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Sentiment in realty sector may take a hit

November 27, 2009

gripped global markets on Wednesday when the Dubai Government said it would ask creditors for a standstill on debt worth billions of dollars of two of its flagship firms Dubai World, which runs 49 ports around the world, and real estate developer

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Nakheel Bonds Plunge on Dubai Request to Reschedule Payments: Chart of Day

November 27, 2009

By John Glover Nov. 27 (Bloomberg) — Bonds sold by Nakheel PJSC, a real- estate developer controlled by Dubai, plunged more than 50 percent after the Gulf state sought to delay debt payments. The CHART OF THE DAY shows how Nakheel’s $3.52 billion of 3.17 percent Islamic bonds dropped to 50 cents on the dollar, from 71 cents yesterday and 107 cents on Nov. 20, according to Goldman Sachs Group Inc. prices on Bloomberg. The notes were due to be redeemed at 109.5 cents on Dec. 14. The company now wants to postpone the repayment date to at least May 30. The Gulf state wants to extend the maturity of Nakheel’s bonds as part of a debt agreement sought by its parent, government investment company Dubai World, which is burdened by $59 billion of liabilities. The bonds had risen above face value because investors viewed the company as a proxy for the government and because the notes were due to mature next month. “Governments can and do change rules when in a corner,” Ciaran O’Hagan , a fixed-income strategist at Societe Generale SA in Paris, said in a note. “Governments are sovereign and they can surprise and badly hurt investors when their backs are up against the wall.” Nakheel, the Islamic bond market’s largest issuer, is responsible for building the palm tree-shaped islands in Dubai, also home to the world’s tallest tower. (To save a copy of the chart, click here.) To contact the reporter on this story: John Glover in London at johnglover@bloomberg.net

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Morgan Stanley Banker’s Son Is Reported Missing in Frankfurt, Police Say

November 27, 2009

By Karin Matussek and Aaron Kirchfeld Nov. 27 (Bloomberg) — A Morgan Stanley executive’s son was reported missing in Frankfurt, German police said. Devon Hollahan, 22, hasn’t been seen since he was separated from a friend after attending a concert on the night of Nov. 20 in Frankfurt, according to a missing persons note on the police’s Web site . The man is the son of Morgan Stanley banker Jeffrey Hollahan, police spokesman Andre Sturmeid said. “For us, this is a just a normal missing person case at this point,” said Sturmeid. “He may have simply run away, become the victim of an accident or a crime or something else may have happened. We are investigating all possibilities.” Frankfurt has in recent years been rocked by kidnappings of family members of businessmen. The 11-year-old son of banker Friedrich von Metzler was kidnapped and killed in 2002. Jakub Fiszman, 40, was abducted and killed in the Frankfurt area in 1996. The killers in both cases tried to extort ransoms from the families, were caught and sentenced to life in prison. The younger Hollahan, a U.S. citizen, was visiting Frankfurt from Prague, where he lives and works as a teacher, according to the police. Morgan Stanley spokeswoman Elke Strothmann declined to comment. German newspaper Bild , which previously reported the case, said the U.S. Federal Bureau of Investigation is also investigating the disappearance. The elder Hollahan, of Scottsdale, Arizona, is a first vice president at the bank, according to Bild. The disappearance was out of character for his son and that he was “very, very worried,” Bild cited the father as saying. — With assistance from Michael Gavin in Frankfurt. Editors: Jeff St.Onge , Hellmuth Tromm To contact the reporter on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net

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GM’s Saab Asks Sweden to Relax Terms of Rescue Funding, Union Leader Says

November 27, 2009

By Ola Kinnander and Niklas Magnusson Nov. 27 (Bloomberg) — Saab Automobile , offered for sale by General Motors Co. , asked Sweden’s government to relax the rules of state rescue loans and provide funding, a union chief said. Should the government agree, Saab wants it to inform GM before the U.S. company reviews the unit’s future at a board meeting on Dec. 1, Paul Aakerlund , head of the Swedish carmaker’s IF Metall labor union, said in an interview today. Saab is seeking a buyer after Koenigsegg Group dropped a takeover bid on Nov. 24, saying it had run out of time to do the deal. Beijing Automotive Industry Holding Co., Merbanco Inc. and Renco Group Inc. have since made approaches, according to two people familiar with the situation, and Aakerlund said state aid might persuade GM to keep Saab going until a purchaser is found. “It would be an incredibly big plus if the government sends that signal to GM,” he said in the interview in Trollhaettan, where Saab is based. “Somewhere even the government realizes there is a possibility to do this, and while it requires a decision by parliament, that could be done in an afternoon.” Voice-mail and e-mail messages left for Chris Preuss , a GM spokesman, weren’t immediately returned. The Swedish government has been criticized by workers, opposition politicians and residents in Trollhaettan — where 7,000 jobs may be lost if Saab fails — for not doing enough to help the unprofitable unit, which needs a buyer to ramp up output and start selling its first new model in seven years. Sweden’s Help Sweden unveiled a 28 billion-krona ($4 billion) aid package for its automotive industry last December that aimed to secure jobs, ease access to funding and push fuel-efficient vehicles. The plan included 5 billion kronor in rescue loans, 3 billion kronor for research, and credit guarantees of 20 billion kronor. The government hasn’t received an application for rescue money from Saab, only a request for state guarantees for a 400 million-euro ($598 million) European Investment Bank loan, Industry Ministry spokesman Frank Nilsson said by phone today. The two means of support in any case can’t be combined as rescue loans are only given to unhealthy companies, which would be disqualified from EIB funding, said Nilsson. While the government “will have a constructive discussion” with Saab and GM about the loans, “essentially, this is about Saab needing a new owner,” he said. ‘Completely Unrealistic’ Aakerlund said a requirement for rescue loans to be paid back within six months is “completely unrealistic” and that the rules could be relaxed under European Union law in order to extend the repayment period. Sweden has so far spent only 60 million kronor of the 28 billion-krona package, with the money provided to Powercell Sweden AB, in which Swedish truckmaker Volvo AB is the largest owner, to develop fuel-cell technology. “What was the point of getting it approved by parliament if they weren’t going to use it?” said Social Democrat leader Mona Sahlin , whose three-party alliance would win power if an election was held today, according to polls. “Sweden is the country that has done the least in Europe.” Prime Minister Fredrik Reinfeldt and Industry Minister Maud Olofsson have said that the’ve no mandate to use taxpayers’ money to build cars and that the state will not take over Saab. “If you try to support fundamentally non-competitive businesses, you will spend a lot of tax money and still see the jobs disappear,” Reinfeldt said Nov. 25. Sahlin said the collapse of Saab would cost 2 billion kronor in higher government costs and lower income, not counting the impact on parts suppliers and the wider automobile industry. To contact the reporters on this story: Ola Kinnander in Stockholm at okinnander@bloomberg.net ; Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

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Dubai growth was never long-term sustainable

November 27, 2009

The decision by the Dubai government to seek a six-month debt standstill for its largest subsidiary Dubai World shouldnt necessarily come as a surprise to most real estate investors ‘ because the city-states property market was never long-term

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ANALYSIS-Dubai debt woes may hit US property market

November 27, 2009

Dubai World has high-profile properties * US commercial property market already fragile NEW YORK (Reuters) – Dubai’s debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to

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Dubai debt woes may hit U.S. property market

November 27, 2009

By Elinor Comlay and Jonathan Stempel – Analysis NEW YORK (Reuters) – Dubai’s debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly

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Video: Laurie Schacht Discusses Top Toys for Holiday Season: Video

November 27, 2009

Nov. 27 (Bloomberg) — Laurie Schacht, co-publisher of “The Toy Insider,” talks with Bloomberg’s Jon Erlichman about the outlook for popular toys during the 2009 holiday shopping season. (Source: Bloomberg)

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Dubai concerns not to impact India, says Sharma

November 27, 2009

Tags: Exports, Real estate, UAE, Economy Notwithstanding the UAE being India’s top destination for exports, the government today put up a brave face stating financial concerns in Dubai would not impact the

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Dubai crisis will not have much of an impact on India

November 27, 2009

financial crisis in the Gulf country would not have much of an impact on the Indian economy including real estate and exports. However, it was closely watching the situation. The RBI may ask all banks to disclose their exposure in the Dubai World, the

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Video: Hayden Likens Dubai Crisis to `Black Swan’ Event: Video

November 27, 2009

Nov. 27 (Bloomberg) — Vern Hayden, president of Hayden Financial Group LLC, and Mark Dow, a portfolio manager at Pharo Management LLC, talk with Bloomberg’s Jon Erlichman about Dubai’s credit crisis and the possible impact on investor strategy. Dubai, the Persian Gulf emirate whose state-run companies are seeking to defer debt payments, said on Nov. 25 that state-run Dubai World, with $59 billion of liabilities, would ask creditors for a “standstill” agreement as it negotiates to extend debt maturities. (Source: Bloomberg)

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Realty IPOs in pipeline may remain just pipedream

November 27, 2009

in Dubai, the desert state which over the last few years had gotten used to showcasing its grand real estate properties like Burj Dubai and The Palm to the worlds billionaires, could be a warning sign for all real estate investors. Afterall the current

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Revealed: Exposure of Indian realty cos to Dubai mkts

November 27, 2009

The tremors from Dubai did not jolt the Indian real estate stocks too much. But will it derail the property recovery cycle? Priyanka Ghosh delves deeper. Here is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying

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What to make of Dubai’s debt woes

November 27, 2009

after Dubai asked banks to allow its investment vehicle Dubai World to suspend for six months payments on debt of $59 billion. This comes as big bets on Persian Gulf real estate sour. The first concern is a $3.5 billion payment on Sukuk (Islamic bond)

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Bank of America CEO search continues

November 27, 2009

after Dubai asked banks to allow its investment vehicle Dubai World to suspend for six months payments on debt of $59 billion. This comes as big bets on Persian Gulf real estate sour. The first concern is a $3.5 billion payment on Sukuk (Islamic bond)

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Dubai crisis rocks realty stocks in the morning session

November 27, 2009

of the Indian realty stocks on Friday can be attributed to mixed investor sentiment on account of the debt crisis in Dubai, said analysts. Realty stocks across the board fell upon market opening on Friday only to recover after noon, once the European

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Video: Cohan, Goldstein Discuss Consumer, Holiday Sales Outlook: Video

November 27, 2009

Nov. 27 (Bloomberg) — Marshal Cohen, chief industry analyst at NPD Group Inc., and Kenneth Goldstein, an economist at the Conference Board, talk with Bloomberg Television about the outlook for consumer spending and holiday retail sales. (Source: Bloomberg)

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U.S. banks may be at risk

November 27, 2009

– The news that the sovereign wealth fund of Dubai requested a postponement of billions of dollars of debt this week could pose a big problem for U.S. banks. The state-run investment company, Dubai World, owes about $60 billion. It rang up much of that

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Video: BGC Partners’ Volz Expects End of Year Stock Sell Off: Video

November 27, 2009

Nov. 27 (Bloomberg) — Roger Volz, director at BGC Partners LP, talks with Bloomberg’s Jonathan Erlichman about today’s trading and the outlook for U.S. stocks. (Source: Bloomberg)

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Video: Dow Doesn’t See Systemic Risk From Dubai’s Debt Woes: Video

November 27, 2009

Nov. 27 (Bloomberg) — Mark Dow, a portfolio manager at Pharo Management LLC, talks with Bloomberg’s Jon Erlichman about the impact of Dubai’s credit crisis on financial markets. Dubai, the Persian Gulf emirate whose state-run companies are seeking to defer debt payments, said on Nov. 25 that state-run Dubai World, with $59 billion of liabilities, would ask creditors for a “standstill” agreement as it negotiates to extend debt maturities. (This is an excerpt of the full interview. Source: Bloomberg)

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Video: HSBC’s Bloom Says Dubai Woes Not Yet at `Contagion’: Video

November 27, 2009

Nov. 27 (Bloomberg) — David Bloom, global head of currency strategy at HSBC Treasury & Capital Markets, talks with Bloomberg’s Judith Bogner about the impact of Dubai’s debt woes on financial markets. Bloom also discusses the outlook for European Central Bank President Jean-Claude Trichet’s trip to China, the yen and the euro-dollar exchange rate. (Source: Bloomberg)

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Commercial Real Estate Distress Increasing In Most Global Markets

November 27, 2009

The rise in distressed commercial real estate sales worldwide is likely to continue, as banks capitalize on opportunities to divest property debt, generating interest from distressed fund specialists.

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