WHAT THE OTHER PAPERS SAY THIS MORNING April 21, 2010 FINANCIAL TIMES FIAT TO SPIN OFF NON-CAR DIVISIONS Fiat is to demerge its non-automotive divisions from its core carmaking business in a watershed moment for the 111-year-old Italian industrial group. The spin-off will see Fiat’s Iveco trucks, Case New Holland farming and construction equipment, and industrial and marine engines divisions split off from its Fiat, [...]
Leaked paper chips at SEC’s Goldman case April 21, 2010 PART of the US government’s fraud case against Goldman Sachs appeared to be undermined yesterday when testimony from a former Paulson & Co hedge fund trader was leaked. Paulo Pellegrini, a key figure at Paulson in 2007, reportedly said the third party firm used by Goldman to put together a doomed mortgage-backed derivative was aware [...]
Paulson tells investors he was open about subprime market April 21, 2010 PAULSON, the hedge fund that was the counterparty to the deal for which Goldman Sachs has been accused of fraud, has moved to head off investor concerns about its role. Goldman is accused of defrauding investors by allegedly failing to make it clear to them that prominent hedge fund manager John Paulson bet against a [...]
Greece begins bailout talks as fears grow April 21, 2010 GREECE was forced to enter talks on a financial rescue package yesterday as jittery bond markets pushed up the interest rates on its debt, fearing a default from the teetering country. Prime Minister George Papaconstantinou called meetings at the crack of dawn with advisers from the European Commission and the International Monetary Fund to draw [...]
Deutsche Bahn poised to seal £1.5bn bid for Arriva April 21, 2010 DEUTSCHE Bahn’s supervisory board gave the green light for the company’s £1.5bn takeover of Arriva yesterday afternoon, paving the way for a deal announcement this morning. The German transport operator will offer 775p per share for the British bus and rail firm, having wrapped up its due diligence and received the all-clear from its government. [...]
Wells Fargo dips as mortgage fall hits bottom line April 21, 2010 WELLS Fargo’s first quarter profit dropped slightly yesterday as it originated fewer mortgages. The fourth-largest US bank, whose shares dipped nearly two per cent, said profit for common shareholders fell to $2.37bn (£1.5bn), or 45 cents per share, from $2.38bn, or 56 cents per share, a year earlier. Analysts on average expected earnings of 42 [...]
M Stanley is back in black with $1.8bn April 21, 2010 MORGAN Stanley has emerged from the shadow of a bad year, swinging to a first quarter profit of $1.8bn (£1.2bn) and more than doubling its bankers’ paycheques. A resurgent fixed income department and improved trading revenues helped push the bank into the black after a loss of $17m this time last year. Earnings were 99 [...]
Gorman proves Street wrong with trade focus April 21, 2010 THE first results under James Gorman have proved the Street wrong. Promoted to chief executive from his role as president of the global wealth management group, the assumption was Morgan Stanley would head more in that direction under Gorman’s leadership. But the surge in first quarter profit to $1.8bn (£1.2bn) has thoroughly debunked that myth. [...]
Airlines hit by £1.1bn losses in shutdown April 21, 2010 THE International Air Transport Association (IATA) estimated the airline industry had been hit by $1.7bn (£1.1bn) in total losses due to the Icelandic volcano disruption. IATA director general and chief executive Giovanni Bisignani estimated that at worst, the six-day flight ban hit 29 per cent of global aviation and affected up to 1.2m passengers a [...]
Repatriation costs deemed a benefit in kind April 21, 2010 LAWYERS warned yesterday that tax bills for both employees and employers associated with the disruptions caused by the Icelandic volcano are to sky rocket as the HM Revenue & Customs (HMRC) takes a hardline on repatriation costs. Commercial law firm EMW Picton Howell said yesterday that the HMRC will demand tax payments on any expenses [...]
