Citigroup & Merrill, A Disaster
Hit & Miss... Institutional money manager State Street missed earnings expectations, while US Bancorp topped its earnings expectations.
Semi Chipster Intel reports after the bell. Mall retailer Williams-Sonoma , cut its outlook after a weak holiday sales season.
Malls Down Under... Australian property investor Centro Property Group, which is struggling to refinance its debt...
said its current liabilities may be higher than previously stated, sending its shares down as much as 48%.
Centro, owns and manages 700 shopping malls in the United States, and has put itself up for sale.
Rebuilding books... CIBC or Canadian Imperial Bank of Commerce said it would take almost $2.5 billion...
in before tax writedowns and raise about $2.70 billion in stock sales to rebuild its balance sheet.
Treading water... Merrill Lynch staying afloat by issuing $6.6 billion (13%) in preferred shares to...
Kuwait Investment Authority, the Korean Investment Corp and a unit of Japan's Mizuho Financial Group.
The mandatory convertible preferred stock yields 9%, with a conversion premium of 17% that matures in 33 months.
In order to stay afloat, Merrill has sold off 25% of the company in the last two months.
For a table including all stakes sold to shore up capital, look here.
Spreading from subprime to consumer... Citigroup, #1 US Bank by assets, 1st quarterly loss since 1998, largest in its 196 year history.
Cut dividend by 40%, 2007 profit down 83%, Q4 loss $9.83 billion on a $4.1 billion increase in
"higher current and estimated losses on consumer loans." and writing off $18.1 billion.
Sillygroup raising $12.5 billion in convertible preferred securities and offering public investors $2 billion in newly issued convertible securities that will pay 7%.
Buyers include: Capital Group, Saudi Prince Alwaleed bin Talal, the New Jersey Division of Investment, Former CEO Sanford I. Weill.
More to come... At the end of Q4, Citi had $37.3 billion net CDO Super Senior exposures and its credit rating was cut to AA- at S&P.
Semi Chipster Intel reports after the bell. Mall retailer Williams-Sonoma , cut its outlook after a weak holiday sales season.
Malls Down Under... Australian property investor Centro Property Group, which is struggling to refinance its debt...
said its current liabilities may be higher than previously stated, sending its shares down as much as 48%.
Centro, owns and manages 700 shopping malls in the United States, and has put itself up for sale.
Rebuilding books... CIBC or Canadian Imperial Bank of Commerce said it would take almost $2.5 billion...
in before tax writedowns and raise about $2.70 billion in stock sales to rebuild its balance sheet.
Treading water... Merrill Lynch staying afloat by issuing $6.6 billion (13%) in preferred shares to...
Kuwait Investment Authority, the Korean Investment Corp and a unit of Japan's Mizuho Financial Group.
The mandatory convertible preferred stock yields 9%, with a conversion premium of 17% that matures in 33 months.
In order to stay afloat, Merrill has sold off 25% of the company in the last two months.
For a table including all stakes sold to shore up capital, look here.
Spreading from subprime to consumer... Citigroup, #1 US Bank by assets, 1st quarterly loss since 1998, largest in its 196 year history.
Cut dividend by 40%, 2007 profit down 83%, Q4 loss $9.83 billion on a $4.1 billion increase in
"higher current and estimated losses on consumer loans." and writing off $18.1 billion.
Sillygroup raising $12.5 billion in convertible preferred securities and offering public investors $2 billion in newly issued convertible securities that will pay 7%.
Buyers include: Capital Group, Saudi Prince Alwaleed bin Talal, the New Jersey Division of Investment, Former CEO Sanford I. Weill.
More to come... At the end of Q4, Citi had $37.3 billion net CDO Super Senior exposures and its credit rating was cut to AA- at S&P.
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