Oracle Acquires Policy Automation Software Vendor ·
Oracle plans to acquire Haley, which specializes in policy automation applications that allow government agencies to administer benefits according to rules set down by legislation. The applications are also used in heavily-regulated industries such as financial services. (InformationWeek)
October 30, 2008
Financial Services
HP Details New CAD And Storage Hardware ·
HP is introducing a new thin-client PC and blade workstation combination that offers 3D graphics for mechanical computer-assisted design workers and centralized data storage, with an eye to the financial services and manufacturing sectors. (eWEEK)
U.S. Markets Rally On Signs Of Easing Credit ·
The Dow Jones Industrial Average rallied 413 points, or 4.7%, on Monday as signs of improvement in the credit markets and Federal Reserve support for a second stimulus package brought a wave of relief to Wall Street. The S&P's 500 Index rose 4.8%. (NYT)
Foreign Investors Flee U.S. Corporate Debt, Stocks ·
The U.S. Treasury Department reported Thursday that overseas investors bought roughly $35 billion in Treasury bonds in August, but fled corporate bonds, U.S. stocks and government-agency bonds, signaling growing aversion to any debt that is not fully backed by the government. (CNNMoney)
ANALYSIS: The Impact Of Price Equity Swings ·
Economist Heiko Hesse of the International Monetary Fund questions the impact of the current equity price swings on private consumption, noting that financial assets play a significant role in peoples’ life-cycle incomes. (VOX)
U.S. Industrial Production Falls 2.8%, Most Since 1974 ·
The Federal Reserve reported Thursday that U.S. industrial production declined 2.8% in September, the most in nearly 34 years, as factories were hit by the Gulf Coast hurricanes and a Boeing strike. Economists forecast a decline of a 0.8%. (CNNMoney)
Drama Behind Treasury’s $250B Bank Deal ·
New details emerged Wednesday about the U.S. Treasury's $250 billion equity purchase program, suggesting Bank of America's CEO Ken Lewis argued with Wells Fargo's Chairman Richard Kovacevich about limits on executive compensation. Kovacevich protested the deal, claiming his bank largely avoided the mortgage crisis. (NYT)
NYSE Liffe Names OCC Clearing House ·
NYSE Liffe, the futures division of NYSE Euronext, said late Tuesday Options Clearing Corporation will clear its new precious metals futures contracts, helping it to better compete with the CME Group which controls 98% of U.S. futures trading. (FT)
Woes Continue For Lehman’s Hedge Fund Clients ·
PricewaterhouseCoopers said Wednesday it could take years for hedge-fund clients to recoup assets from bankrupt Lehman Brothers, cautioning that it is having difficulty sorting collateral the investment bank "loaned" to other investors through a practice known as rehypothecation. (Bloomberg)
J.P. Morgan Reduces Outlook, Profit Falls 84% ·
J.P. Morgan Chase reduced its earnings outlook Wednesday, citing continued uncertainity in the capital markets, housing sector and economy. The New York-based bank said it earned $527 million in the third-quarter, an 84% decline from 2007, amid $6.7 billion in credit losses. (NYT)
State Street Profits Amid Market Turmoil ·
State Street reported a better than estimated 33% jump in third-quarter net income, despite marking $5 billion in writedowns amid market illiquidity. On Tuesday, the U.S. Treasury said it will take a $2 billion stake in the custody bank as part of its financial recapitalization plan. (WSJ)
ANALYSIS: “Temporary” Fixes Hard To Reverse ·
As the U.S. government moves to backstop the banking system, analysts speculate it is so entangled in the financial sector that it will have no choice but to make its "temporary" bailout measures permanent. (American Banker)
Paulson: Future Capital Injections Possible ·
U.S. Treasury Secretary Henry Paulson said Tuesday that the U.S. government's $250 billion plan to purchase bank equity stakes is only the beginning. "More capital will need to be injected over time using the variety of tools at our disposal," he cautioned. (FT)
OPINION: “Claw-Back” Clause Needed On Executive Pay ·
Richard Beales and Rob Cox of BreakingViews.com note that the U.S. Treasury's new limits on executive compensation are unambitious relative to Britain's proposal, which would make some CEO payouts subject to "claw-back" in the event of future losses. (NYT)
California Sells $1.5B In Bond Offering ·
California sold $1.47 billion in short-term municipal notes Tuesday, nearly half of the $4 billion it needs to pay bills until tax revenue arrives later this year. Although yields priced higher between 4.25% and 4.5%, analysts billed the offering a success amid tight credit conditions. (WSJ)
