Carl Icahn, the billionaire activist investor, offered to underwrite a $6 billion loan to struggling lender CIT Group (CIT), which may be close to filing for bankruptcy. Icahn, the company’s largest bondholder, heavily criticized its board of directors’ behavior and said they should no longer be controlling the company.
CIT recently offered a bond exchange plan as a way to prevent bankruptcy.
Apple (AAPL) posted much larger-than-expected earnings for the fourth quarter, sending its stock to more than $200 per share.This comes after CEO Steve Jobs has returned to work after taking a leave for health reasons. Sales of Mac computers rose 17% and iPhone sales rose 7%.
Citi to Lose Mexican Subsidiary?
Hedge Funds Nabbed by Wiretaps
Putin’s Cold War Flashback
Intel CEO on Earnings, Windows 7
Nationwide Average
$2.64 a gallonTuesday
The Obama Administration will make it easier for small banks to access money in the TARP program. The White House will also take action to increase caps on existing Small Business Administration loans to small businesses. The Administration has been criticized for helping out the nation’s largest banks but neglecting the smaller ones.
Oracle of Omaha Dept.: Berkshire Hathaway (BRK) CEO Warren Buffett said the economy has hit its low point and that the country has made “enormous progress” over the last year. However, he noted that the nation hasn’t completely recovered in terms of spending and consumer confidence. On the job-growth front, Buffett said companies need to first be convinced that demand is recovering before they’ll be willing to add to the workforce.
Fed Told BofA Shares Would Rise
The Race for N.J. Governor
The Other Side of the Door
Who Wants to Be Governor of California?
Wednesday
Leaders at the seven firms receiving the largest government aid through the TARP program will face pay cuts as high as 50%. This is according to the compensation decisions made by the Obama Administration’s so-called “pay czar,” Kenneth Feinberg. He will cut the salaries of the 25 highest-paid executives at these firms by up to 90%. And for more than 90% of affected employees at these firms, salaries will be less than $500,000 a year.
TARP Watchdog Dept.: Special Inspector General of the TARP program gave the program a mixed review Wednesday. He said much of the public has turned against the plan because of factors such as the Treasury not forcing banks to report how their bailout money was spent and the Department’s less-than-truthful statements on the first TARP investments. He also said the massive infusion of government money into the rescued firms and the program to modify mortgages for consumers who borrowed more than they could handle are creating a moral hazard, demonstrating little consequence to risky, irresponsible behavior.
Ross: Banks Not Lending to Small Businesses
Breaking Down Bank Earnings
Big Bailout Recipients Forced to Cut Pay
The Truth About Cancer ScreeningsThursday
Thursday was a big day for Microsoft (MSFT), officially releasing its latest OS version, Windows 7. The new operating system replaces its three-year-old predecessor, Windows Vista, which was criticized by many as being too clunky and lacking compatibility with existing software. Amazon.com said Windows 7 was its top-selling software title for the week and was among its top 100 selling products.
Meanwhile, Moody’s warned that the U.S. could lose its AAA credit rating if it does not cut its deficit to manageable levels in the next 3 to 4 years. The country posted a $1.417 trillion deficit for the year ended Sept. 30, amid huge spending to ward off a fiscal catastrophe. At the same time the nation is considering passing a health-care reform bill that is estimated to cost just under $1 trillion. Steven Hess, lead analyst at Moody’s, told Reuters, “if they don't get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy."
Microsoft CEO on Windows 7
Drug Czar Against Legal Med. Marijuana
MGM CEO on CityCenter
Pay Czar: Wall Street Needed Reform
Friday
A day after launching Windows 7, Microsoft reported a better-than-expected profit for its fiscal first quarter. However, it was an 18% decline from the same quarter last year. The results were not due to increased revenue, but instead the company's ability to control costs, cutting $624 million from its operating expenses.
Federal Reserve Chairman Ben Bernanke said more horizontal bank reviews are coming. Bernanke said regulators are considering a surcharge on large banks in order to reduce the risks they pose to the entire financial system. He also said that a greater share of bank capital could be required to be kept as common equity and that the Fed would be more comprehensive in reviewing banks.
Microsoft CFO on Earnings
Top Talent Leaving TARP Banks
Bremmer on Foreign Policy, Global Markets
Blockbuster CEO on Consumers
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Cavuto: Dead People, Illegals Got Homebuyer Tax CreditsPay cuts run risk of talent exodus
