A group of unsecured creditors on Friday objected to a request by bankrupt Lehman Brothers Holdings Inc. (LEHMQ) for more time to draft its reorganization plan, claiming the delay will cut into the $13 billion they say they are owed, according to court documents quoted by Reuters.
Lehman attorneys asked the bankruptcy court in Manhattan to extend until March 15, 2010, the period in which the company can propose a reorganization plan. The current deadline expires Monday, but Lehman said it needs time to collect data and coordinate cases that span the globe.
The unsecured creditors, including Elliott Management Corp., King Street Capital Management LP and Paulson & Co. Inc., said Lehman is essentially being liquidated and therefore creditors should manage the process since they are the main beneficiaries.
Sunday, July 12, 2009
Friday, July 10, 2009
German lawmakers approve 'bad bank' scheme
ERLIN (AFP) - A German bill enabling the creation of "bad banks" to help commercial and state-owned banks recover from the financial crisis cleared its final hurdle Friday with a vote in parliament's upper house.
Bank owners would pay for the costs of the measures, which let them transfer risky and non-core assets to a separate institution, cleaning up balance sheets and paving the way for fresh lending to the recession-hit economy.The plan approved by the Bundesrat involves exchanging financial instruments including asset-backed securities and collateralised-debt obligations for state-guaranteed bonds, for which banks will pay a fee.Up to 230 billion euros (320 billion dollars) worth of such so-called toxic assets held by private banks could be covered by the law.A separate "bad bank" model designed for regional state-owned banks would allow them to offload troubled activities to a structure that could then liquidate them.The so-called Landesbanken invested heavily in complex instruments that collapsed when the US market for high-risk, or subprime mortgages melted down in mid 2007.Terms of the bill also encourage consolidation of the regional banks, several of which were hurt further by the collapse of the investment bank Lehman Brothers (NYSE: LEH - news) .The lower house of parliament approved the legislation last week.Jumpstarting bank lending is a growing concern for German leaders, and Finance Minister Peer Steinbrueck pointed Friday to a serious threat of a German credit crunch later this year."We must take seriously, very seriously, the threat of a credit crunch in the second half" of 2009, Steinbrueck told the Frankfurter Rundschau in an interview.He suggested the German central bank, the Bundesbank, could buy corporate debt if the situation worsened.Economy Minister Karl-Theodor zu Guttenberg also warned Thursday about deteriorating credit conditions in Europe's biggest economy."It must be clear to all: we must prepare for difficult times and we must do it very soon," Guttenberg told a press briefing in Berlin.Sunday, July 5, 2009
Saturday, April 11, 2009
Rally's fate turns on bank results
NEW YORK (Reuters) - If Wells Fargo's upbeat first-quarter performance is any sign, Wall Street could rally further next week on any reassuring news from three other big banks due to post quarterly results.
Thursday, April 9, 2009
Stock Exchange to sell own shares
Changes in trading technology have forced the Stock Exchange's hand
The London Stock Exchange has set a timetable for its planned move to become a public company.
An extraordinary general meeting has been called for 15 March, when the 296 shareholders with voting rights will be asked to approve the proposals.
If the plans get 75% support, dealing in shares will begin in May. The LSE will then consider whether to float and offer shares to the public.
The change, which was announced last year, will end more than 200 years of mutuality. The Stock Exchange believes this is the best way to ensure its survival in an increasingly competitive market.
It no longer enjoys an effective monopoly - there are many other options for UK companies wishing to float and raise capital, including the US electronic market, Nasdaq, and its European counterpart, Easdaq.
It is not clear how much the exchange will be valued at - estimates vary between £200m - £500m. Last year it made a profit of £17.5m, down from previous figures, but still a turnaround from 1995, when it lost £16m.
The London Stock Exchange has set a timetable for its planned move to become a public company.
An extraordinary general meeting has been called for 15 March, when the 296 shareholders with voting rights will be asked to approve the proposals.
If the plans get 75% support, dealing in shares will begin in May. The LSE will then consider whether to float and offer shares to the public.
The change, which was announced last year, will end more than 200 years of mutuality. The Stock Exchange believes this is the best way to ensure its survival in an increasingly competitive market.
It no longer enjoys an effective monopoly - there are many other options for UK companies wishing to float and raise capital, including the US electronic market, Nasdaq, and its European counterpart, Easdaq.
It is not clear how much the exchange will be valued at - estimates vary between £200m - £500m. Last year it made a profit of £17.5m, down from previous figures, but still a turnaround from 1995, when it lost £16m.
Stock exchanges merge
National pride, disagreement on regulatory issues and technological problems limited progress on stock market mergers.
Investors want liquidity, diversity and easy access at low prices, within the euro-zone and beyond.
The stock exchanges are trying to deliver, but they are not quite there yet.
Swedish pitch for London
The most outrageous story of 2000 was the bidding war for the London Stock Exchange (LSE), Europe's largest stock exchange, and the world's fourth biggest.
It had originally planned to merge with Germany's stock market, the Deutsche Börse, to form the iX exchange.
But that was upset in August when an upstart Swedish group entered the battle.
OM Gruppen was not exactly a household name at the time, but its hostile takeover bid for LSE quickly changed that.
Investors want liquidity, diversity and easy access at low prices, within the euro-zone and beyond.
The stock exchanges are trying to deliver, but they are not quite there yet.
Swedish pitch for London
The most outrageous story of 2000 was the bidding war for the London Stock Exchange (LSE), Europe's largest stock exchange, and the world's fourth biggest.
It had originally planned to merge with Germany's stock market, the Deutsche Börse, to form the iX exchange.
But that was upset in August when an upstart Swedish group entered the battle.
OM Gruppen was not exactly a household name at the time, but its hostile takeover bid for LSE quickly changed that.
Uganda stock exchange expands
As the bell struck on Thursday morning trading began at the Uganda Securities Exchange - basically a small office in central Kampala.
This time there is an extra company listed - Bank of Baroda Uganda.
It means more work for the half a dozen brokers in their bright red jackets buying and selling shares on behalf of the investors.Trading takes place two mornings a week. And no, this is not the hive of activity you will find in other markets in capital cities around the world.
At the end of 20 minutes of trading, nine deals had been made and over 86,000 shares traded.
And on the first day on the exchange the new Bank of Baroda shares had risen in value by 16%.
Good news for those who had bought shares in the bank.
The Ugandan Stock Exchange in Kampala was set up two years ago and the signing of the Bank of Baroda takes the total number of companies listed to just five, making it one of the smallest in Africa.
This time there is an extra company listed - Bank of Baroda Uganda.
It means more work for the half a dozen brokers in their bright red jackets buying and selling shares on behalf of the investors.Trading takes place two mornings a week. And no, this is not the hive of activity you will find in other markets in capital cities around the world.
At the end of 20 minutes of trading, nine deals had been made and over 86,000 shares traded.
And on the first day on the exchange the new Bank of Baroda shares had risen in value by 16%.
Good news for those who had bought shares in the bank.
The Ugandan Stock Exchange in Kampala was set up two years ago and the signing of the Bank of Baroda takes the total number of companies listed to just five, making it one of the smallest in Africa.
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