Business News

The Editor on April 21st, 2008

U.S. seizes Fannie and Freddie

WASHINGTON (Reuters) - The U.S. government on Sunday seized control of mortgage finance companies Fannie Mae and Freddie Mac launching what could be its biggest bailout ever to support the U.S. housing market and ward off more global financial market turbulence.

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Lehman announces senior management changes

NEW YORK (Reuters) - Lehman Brothers Holdings Inc said on Sunday it has named Eric Felder and Hyung Soon Lee as global co-heads of fixed income, following the departure of current global head Andrew Morton.

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WaMu picks Meridian's Fishman as new CEO: report

NEW YORK (Reuters) - Washington Mutual Inc, the largest U.S. savings and loan, is replacing Chief Executive Kerry Killinger, making him the latest high-profile casualty of the credit crisis, the Wall Street Journal reported on its website on Sunday.

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Boeing strike threatens global aero industry

EVERETT, Washington/NEW YORK (Reuters) - Boeing Co's 27,000 machinists prepared for a third day of strike action, halting production at the plane maker's Seattle-area plants in protest at Boeing's contract offer and what they see as plans to shift more jobs to non-union and foreign companies.

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Asian banks rally on Fannie, Freddie bailout

SINGAPORE (Reuters) - Shares in Asian banks soared on Monday after the U.S. government took over Fannie Mae and Freddie Mac , reassuring investors worried about exposure to the mortgage giants' bonds and the value of other risky debt assets.

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U.S. hedge fund Fairfield, Swiss private bank merge

NEW YORK (Reuters) - U.S. hedge fund Fairfield Greenwich Group has merged with Swiss private bank Banque Benedict Hentsch, bringing their combined assets under management to more than $18 billion.

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Oil surges $2 to near $109 on hurricane threat

PERTH (Reuters) - Oil jumped than $2 to near $109 a barrel on Monday, rebounding from a five-month low on worries that Hurricane Ike would tear through the Gulf of Mexico, and on hopes that a U.S. bailout of its top mortgage lenders would help temper an economic downturn.

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S&P, Fitch slash Fannie, Freddie preferreds to junk

NEW YORK (Reuters) - Standard & Poor's and Fitch Ratings on Sunday cut the ratings on preferred stock of troubled housing finance companies Fannie Mae and Freddie Mac to junk status after dividends were eliminated in a takeover by the U.S. government.

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Hedge fund Paulson to weigh buying bank stocks: report

NEW YORK (Reuters) - Paulson & Co, a prominent New York hedge fund, will weigh buying shares or convertible bonds in banks and other financial institutions that need capital, the Financial Times reported on its website on Sunday.

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Royal Bank of Canada considered buying Lehman: report

LONDON (Reuters) - Royal Bank of Canada considered buying Lehman Brothers in July, but decided against the move because it doubted the U.S. bank's ability to shore up its balance sheet, the Financial Times reported on Monday.