Quant Liquidation, Goldman Sachs, Barclays, MBIA, Ambac, Lennar, Allianz, Caterpillar
True: a Boston based quant fund has been liquidating its positions today, perhaps on behalf of Societe Generale?
False: Goldman Sachs is laying off 5% of its workforce.
GS is targeting the bottom 5% of performers in its workforce to lay off as part of its annual review process, the review targets about 1,500 of 30,000 positions.
The price of poker just went up... banks have already raised $72 billion in needed reserve capital.
If bond insurers get their ratings cut, it will lower the value of the $2.4 trillion in bonds they insure.
Analysts at Barclays Capital: Banks will need at least $22 billion if bonds covered by insurers MBIA & Ambac...
are cut one level from AAA, and 6X more or $143 billion for downgrades by four steps to A.
Homebuilder down... Lennar, #1 US homebuilder, Q4 net loss of $1.25 billion, revenue -49% to $2.18 billion, new orders -50%, cancellation rate 33%; backlog, homes under contract and not yet sold, -65%;
The company also recorded $1.86 billion in expenses as the deteriorating housing market forced it write down land and walk away from options on property.
Insurer write downs... Allianz SE, Europe's biggest insurer, banking unit had an operating loss of 450 million euros in Q4...
amid writedowns of 900 million euros on structured products. Shares were down 24% since Jan 1st, up 11% on the "good" news.
Anaemic Caterpillars... The world’s #1 maker of construction equipment and heavy-duty engines...
was one of the first big US companies to warn in October 2007 that the US economy was entering a recession.
Today, Q4 profit +10% as strong international mining, energy and construction sales offset a -11% decline in U.S. equipment and engine sales.
CEO Jim Owens: "We expect anaemic growth in the US economy. We’re expecting recessionary conditions to persist in key markets we serve in the United States.
Reduced profitability and tighter credit likely caused some users to delay replacement purchases in housing and mining industries.
In non-residential construction, contracts for new building declined about 2% in 2007, and employment weakened in the second half of the year...
as projects were hit by tighter standards for commercial and industrial loans, and higher corporate bond spreads."
False: Goldman Sachs is laying off 5% of its workforce.
GS is targeting the bottom 5% of performers in its workforce to lay off as part of its annual review process, the review targets about 1,500 of 30,000 positions.
The price of poker just went up... banks have already raised $72 billion in needed reserve capital.
If bond insurers get their ratings cut, it will lower the value of the $2.4 trillion in bonds they insure.
Analysts at Barclays Capital: Banks will need at least $22 billion if bonds covered by insurers MBIA & Ambac...
are cut one level from AAA, and 6X more or $143 billion for downgrades by four steps to A.
Homebuilder down... Lennar, #1 US homebuilder, Q4 net loss of $1.25 billion, revenue -49% to $2.18 billion, new orders -50%, cancellation rate 33%; backlog, homes under contract and not yet sold, -65%;
The company also recorded $1.86 billion in expenses as the deteriorating housing market forced it write down land and walk away from options on property.
Insurer write downs... Allianz SE, Europe's biggest insurer, banking unit had an operating loss of 450 million euros in Q4...
amid writedowns of 900 million euros on structured products. Shares were down 24% since Jan 1st, up 11% on the "good" news.
Anaemic Caterpillars... The world’s #1 maker of construction equipment and heavy-duty engines...
was one of the first big US companies to warn in October 2007 that the US economy was entering a recession.
Today, Q4 profit +10% as strong international mining, energy and construction sales offset a -11% decline in U.S. equipment and engine sales.
CEO Jim Owens: "We expect anaemic growth in the US economy. We’re expecting recessionary conditions to persist in key markets we serve in the United States.
Reduced profitability and tighter credit likely caused some users to delay replacement purchases in housing and mining industries.
In non-residential construction, contracts for new building declined about 2% in 2007, and employment weakened in the second half of the year...
as projects were hit by tighter standards for commercial and industrial loans, and higher corporate bond spreads."
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