Haldane: Asset valuation may have worsened crisis January 19, 2012 ACCOUNTING and reporting rules for banks’ assets and liabilities have in part contributed to financial crises and can lead to confusion, Andrew Haldane, the Bank of England’s executive director for financial stability, said yesterday. Fair value accounting can lead banks to overestimate profits in boom years, he said, because their assets are inflated in a [...]
Profits plunge at BlackRock after fees fall January 19, 2012 PROFITS at BlackRock plunged 16 per cent in the fourth quarter as fees from investment advisory work fell away amid the global turmoil. The world’s largest money manager said net income dropped to $555m (£358.7m), or $3.05 per share, from $657m, or $3.35 per share, a year earlier. The New York group has managed the [...]
Google drops as earnings disappoint January 19, 2012 GOOGLE shares dropped nine per cent in after-hours trading last night on the back of worse than expected results from the technology giant. Shares sunk to around $583 despite the firm announcing an increase in net revenue to $8.13bn (£5.25bn) for the fourth quarter, compared to $6.37bn a year earlier. Analysts had wanted more from [...]
Intel posts revenue surge but faces weak mobile reception January 19, 2012 INTEL beat expectations to hit record full year revenues of $54bn (£34.9bn), it said yesterday, despite a challenging PC market and late entry in the mobile sector. The chip manufacturer also announced that it would increase capital expenditure to $12.5bn in 2012, up from $10.7bn in 2011, in an attempt to catch up with rivals [...]
IBM and American Express up as Microsoft’s profits struggle January 19, 2012 IBM beat fourth quarter profit estimates last night and said it aims to grow earnings by at least 10 per cent in 2012. The company brought in revenues of $29.5bn (£19bn) in the fourth quarter, up from $29bn in the same period last year. Shares were up 2.6 per cent in extended trading. And American [...]
Better credit brings BAML out of the red January 19, 2012 BANK OF AMERICA Merrill Lynch came out of the red last year, posting profits of $1.4bn compared to a loss of $2.2bn in 2010. The bank was boosted by a large improvement in the credit quality of loans in its cards business and rising investment bank profits. But in a sign that the US banking [...]
Morgan Stanley slumps to fourth quarter loss in 2011 January 19, 2012 MORGAN Stanley sank into the red at the end of last year, losing 15 cents per share in the fourth quarter and delivering dismal shareholder returns of just 3.9 per cent for the whole of 2011. The bank was hammered by a series of hefty one-off charges and a collapse in underwriting revenues at the [...]
Italian banks rely on ECB for over €51bn in long-term funds January 19, 2012 ITALIAN banks were forced to plug a funding gap of at least €51.4bn (£42.9bn) in December by taking out three-year loans from the European Central Bank (ECB). The revelation comes from calculations by Morgan Stanley analysts, who compiled data about which European lenders made use of the unprecedented offering of long-term cash by the Eurozone’s [...]
Kodak snaps and files for bankruptcy January 19, 2012 KODAK’S moment has come to an end, as the company yesterday admitted defeat in the face of an increasingly digital age by filing for chapter 11 bankruptcy protection. Citigroup has thrown the dwindling company a $950m (£614m) lifeline to support Kodak through its ongoing operations, which will continue despite the bankruptcy application. Kodak subsidiaries outside [...]
FROM FLASHBULBS TO FAILURE January 19, 2012 1880s The Eastman Kodak Company is founded by George Eastman in Rochester, NY 1900 Kodak launches its $1 camera, the Brownie, with the slogan “You push the button, we do the rest” 1935 Kodak introduces Kodachrome, its first 35mm colour film 1963 The company launches the Instamatic camera, using its new cartridge film. More than [...]
