September 26, 2008 |
In the biggest bank failure in U.S. history, Washington Mutual Bank was seized late Thursday by federal regulators and immediately sold to JPMorgan Chase & Co. for $1.9 billion. Customer deposits will be secure, regulators said, but shareholders of the nation's largest savings and loan will see what's left of their holdings wiped out. WaMu shares have lost 88% of their value this year amid huge losses in the bank's mortgage loan and credit card businesses.
September 10, 2008 |
Wachovia Corp., the fourth-largest U.S. bank, will cut expenses next year by $1.5 billion and is "tapping the brakes" on risk, Chief Executive Robert Steel told investors Tuesday. Severance and other costs for the Charlotte, N.C.-based lender will reach as much as $650 million in the second half of 2008 as it eliminates jobs, Steel said at a conference in New York run by Lehman Bros. Holdings Inc., which is having its own troubles -- Lehman's shares fell 41% Tuesday on news that its hoped-for infusion of cash from a Korean bank fell through.
May 30, 2008 |
Federally insured banks and thrifts set aside a record $37.1 billion to cover losses from soured mortgages and other loans in the first quarter, when profits were nearly halved, regulators said Thursday. Federal Deposit Insurance Corp. data show that Citigroup Inc., Bank of America Corp. and about 8,500 other institutions earned a combined $19.3 billion in the January-March period. That was a drop of 45.7% from the $35.6 billion earned a year earlier. The FDIC has said it would beef up its staff of examiners to handle an anticipated surge in bank failures this year.
April 17, 2008 |
Billionaire financier Wilbur L. Ross Jr. plans to seek about $4 billion from investors including Arab sovereign funds to buy U.S. depositary banks. Ross, 70, said he would talk with Persian Gulf investors in Abu Dhabi next week about 100 to 200 so-called thrift banks. He plans to package U.S. thrift bank acquisitions "as a finished product" to sovereign wealth funds, he said.
October 9, 2007 |
shanghai -- China Minsheng Banking Corp. said Monday that it had agreed to buy a 9.9% stake in UCBH Holdings Inc. of San Francisco in what would be the first U.S. strategic investment by a mainland Chinese bank. UCBH, the parent of United Commercial Bank, called the deal "historically significant." Analysts said the move by Beijing-based Minsheng was likely to be a harbinger.
October 3, 2007 |
Toronto-Dominion Bank, in what would be the biggest foreign takeover by a Canadian lender, agreed Tuesday to pay $8.5 billion for Commerce Bancorp Inc., the New Jersey company that ousted founder Vernon Hill three months ago. Shareholders of Cherry Hill-based Commerce, the state's largest bank, would get about $42.37 a share in cash and stock, or 6.6% more than Monday's closing price, Toronto-Dominion said.
August 18, 2007 |
In an about-face Friday from only 10 days earlier, the Federal Reserve expressed concern that a sudden freeze-up in the financial markets could hurt the economy, trimmed one of its key interest rates and hinted that more help could be on the way. The central bank's words and action had a bracing effect on the stock market, which had been preparing for another day of wild swings. After four days of declines, some of them very sharp, the Dow Jones industrial average jumped 233.30 points, or 1.
August 12, 2007 |
washington -- At the Group of 8 summit of world leaders in June, President Bush repeated his calls for developing nations to curb their emissions of greenhouse gases. Without their cooperation, he said, drastic measures in the United States to battle climate change would make little sense. "We all can make major strides, and yet there won't be a reduction until China and India are participants," he told reporters. But just weeks earlier, the U.S.
August 2, 2007 |
Biola University in La Mirada has sued Bank of America Corp. and BNP Paribas, saying the banks conspired to overcharge the Christian school for $84.2 million of derivatives. In its suit filed Tuesday in U.S. District Court in Los Angeles, Biola said the banks misled it into believing that it paid a fair price for four derivatives it bought in 2002 and 2004. The contracts were tied to tax-exempt bonds the college sold. Bank of America, the second-biggest U.S.
May 15, 2007 |
A wide swath of U.S. banks tightened lending standards for nontraditional and sub-prime home mortgages in recent months, while terms for commercial and industrial loans eased amid tough competition, the Federal Reserve said Monday. The Fed, in its April survey of senior loan officers, said 45% of domestic banks polled reported a tightening of nontraditional residential mortgage standards. More than half the institutions originating sub-prime mortgages also tightened credit standards.