Wednesday, September 17, 2008

Financial Institutions

So far, from the start of last year's US finacial market fiasco, these are some of the list of financial companies who has declared billions of write-downs, losses or bankruptcy until some have received a golden ladder as rescue.

* AIG

* Lehman Brothers

* Fannie Mae & Freddie Mac -- by Sep 5, 2008 The US Government takeover is now a done deal

* Freddie Mac

* Bear Stearns -
- Aug 2007 Bear Stearns Hedge Funds filed for bankruptcy.
- March 16, 2008 -- J.P. Morgan announces it has acquired Bear Stearns for $2 per share, or about $236 million.
- March 14, 2008 -- The federal government and J.P. Morgan Chase bail out Bear. The company says it sought the emergency funding after realizing it would not be able to keep up with a spike in demand from lenders.


* Merril Lynch
- Sept 2008 Sept. 15 (Bloomberg) -- Bank of America Corp., the biggest U.S. consumer bank, agreed to acquire Merrill Lynch & Co. for about $50 billion as the credit crisis claimed another of America's oldest financial companies. Bank of America will pay $29 a share for New York-based Merrill in stock, 70 percent more than the Sept. 12 closing price, the company said in a statement today. Merrill, battered by $52.2 billion in losses and writedowns from subprime- mortgage-contaminated securities, has plunged more than 80 percent from its peak of $97.53 at the start of last year.
- Jul 2008 -Merrill Lynch & Co. reported a $4.65 billion second-quarter net loss late Thursday as the brokerage firm was hit by more write-downs on large mortgage-related exposures.
- Jan 2008 - Merrill Lynch had sold $6.6 billion stakes to foreign investors including the Korean and Kuwaiti governments.
- Oct 2007 (Bloomberg) -- Merrill Lynch & Co. reported the biggest quarterly loss in its 93-year history after taking $8.4 billion of writedowns.


* Morgan Stanley
- Sep 2008 -Japan's biggest bank said that it planned to spend as much as $8 billion for a 20% stake in investment banking firm Morgan Stanley in New York. Mitsubishi UFJ Financial Group in Tokyo is one of a number of Asian banks that appear primed to seize buying opportunities.
- Jun 2008 - Morgan Stanley, the second-biggest U.S. securities firm by market value, was cut one level to A+ from AA- by Standard & Poor.
- Dec. 2007 -- Morgan Stanley posts a $3.59 billion loss, its first quarterly deficit in 21 years, amid a $9.4 billion write-down on its mortgage assets. The firm receives a $5 billion investment from a Chinese fund in exchange for a 9.9% stake



* Citigroup
- Jan 2008 -Citigroup’s disclosure of a $12.5 billion investment came as the banking giant reported its long-awaited fourth-quarter results, which included an $18.1 billion write-down on its subprime mortgage-related exposures. The figure was much higher than its early November estimate of $8 billion to $11 billion in write-downs, but below the $24 billion cited in a report. Citi’s enormous write-down led to a $9.83 billion loss for the fourth quarter, the largest quarterly loss in the firm’s history.

-Nov. 2007 -- Citigroup, seeking to restore investor confidence amid massive losses in the credit markets and a lack of permanent leadership, receives a $7.5 billion capital infusion from the investment arm of the Abu Dhabi government.

-Oct. 2007 -- Citigroup posts a 57% drop in profit, as the bank is hit with write-downs tied to mortgage-backed securities and loans to fund deals that were delayed.


* HSBC
- Sep 2008 From yahoo news recently, HONG KONG (Reuters) - Global bank HSBC Holdings (HSBA.L) is cutting 1,100 jobs in its investment banking operation, or 4 percent of the unit's total, as it weathers the global financial crisis. "We're doing it because of market conditions and the economic environment, and our cautious outlook for 2009," Hong Kong-based spokesman Gareth Hewett told Reuters on Friday.
- Aug 2007 -London-based HSBC, Europe's largest bank by market value, closed a U.S. mortgage office after failing to finance new loans. HSBC's provisions for bad loans climbed 63 percent to almost $6.4 billion in the first half of 2007, HBSC said in July.
- Mar 2008 - $17.2 bn loss after the decline in the US Housing Market hit the value of its loans, credit crisis loss;
- Mar 2007 -- EUROPE’s biggest bank, HSBC, is to write off $11 billion to cover mounting losses in its troubled American offshoot, HSBC Finance Corporation.
- - Feb 2007 US loans problems shake HSBC, US branch.




Many are saying the worst is yet to come, more misery will be felt in that part of the world.



3 comments:

Ana said...

hi sis! fellow n@wie bloghopping...
is this real? HSBC? they're still going really strong here in the UK. and Morgan Stanley? I know they are still in the market. though selling off some of their businesses. but looking like they will be able to weather it through (at least dito sa UK).
i am only starting to look at the markets in the US now as i am trying to gauge when to best start investing again. hope you can share with me where you get your info.

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