The Wall Street Report: Stock Rally To 200 Points !!!

The Bulls Are Running Freely ...

The Dow is up 234 points (+ 2.94%) and Nasdaq is also up 56.39 points (+ 3.55%).
[Report as of 3:10pm EST]

It turned out to be a good Thursday for Wall Street and the stock market after a surprise preliminary earnings report from Wells Fargo & Co. sent stocks rallying more than 245 points.

This comes despite an overall disappointing group of retail sales reports most notably from the retail giant Wal-Mart.

Today’s Markets

At the 4 p.m. close in New York, the Dow Jones Industrial Average futures jumped 246.27 points, or 3.14%, to 8083.38, the S&P 500 rose 31.38 points, or 3.80%, to 856.54 and the Nasdaq Composite added 61.88 points, or 3.89%, to 1652.54. The consumer-friendly FOX 50 index added 20.51 points, or 3.31%, to 639.66.

Overall, the Dow gained approximately 1% for the week - its fifth-straight week - despite a two-day slide on Monday and Tuesday.

Thursday's trading session will be the last for this week, with the bonds, commodity and stock markets closed Friday in observance of Good Friday.

Wells Fargo (WFC: 19.52, 4.64, 31.18%) was the fuel for the market's fire after the San Francisco-based bank said it sees a profit of $3 billion, 55 cents per share in the first quarter, widely topping estimates for 23 cents per share and the $2 billion profit the bank earned this time last year. Shares of Wells soared more than 30%.

The bank also said its 2008 acquisition of then-dying Wachovia Bank has "exceeded expectations" and sees charge-offs declining to $3.3 billion.

"The market was prepared for everything but positive surprises," said Ted Weisberg, a NYSE trader with Seaport Securities. "But we certainly got a positive surprise out of Wells Fargo today. It was enough to get the market to get it going."

The Wells Fargo news lifted the entire financial sector, with Citigroup (C: 3.07, 0.39, 14.55%), Bank of America (BAC: 9.66, 2.61, 37.02%) and JPMorgan Chase & Co. (JPM: 32.85, 5.5, 20.11%) all posting double-digit gains out of the gate.

Enthusiasm for banking stocks overshadowed another round of bleak retail sales reports. Analysts polled by Thomson Reuters expected same-store sales to decline by 1% last month amid the deepest recession since World War II.

The biggest drag on the Dow was the retail giant Wal-Mart (WMT: 50.47, -2.15, -4.09%), which disappointed the market by saying its same-store sales excluding fuel rose by 1.4% in March, well short of expectations for a 3.2% jump. Shares of the Arkansas-based retailer were down 5%.
Wal-Mart wasn't alone as Costco (COST: 46.9, -0.8, -1.68%), Macy's (M: 11.86, 1.53, 14.81%), Target (TGT: 39.8796, 2.2696, 6.03%), Limited Brands (LTD: 10.66, 1.07, 11.16%), Wet Seal (WTSLA: 3.93, 0.19, 5.08%) and Bebe Stores (BEBE: 7.55, 0.51, 7.24%) all posted declines in same-store sales for March. On the upside, Buckle (BKE: 36.9, 3.15, 9.33%) said same-store sales rose by a better-than-expected 14.7% last month.

But for the most part, retailers were posting positive gains in Thursday trading - with the S&P 500 retailers index up 3%.

On the economic front, the Labor Department said initial jobless claims tumbled by 20,000 last week to 654,000, the 10th straight week above the 600,000 mark. Continuing claims, which are filed by those out of work for more than one week, surged by 95,000 to 5.8 million, the highest level since data began in 1967.

Also, the government said U.S. import prices rose for the first time in eight months thanks to a jump in oil prices. The Labor Department report showed prices were up in March by 0.5%, half as much as economists expected. Excluding oil, import prices tumbled for the eight-straight month amid the global recession.

In the commodity markets, crude oil futures ended higher by $2.64 per barrel, or 5.31%, to $52.00 a barrel. Gold slipped $6.50 per ounce, or 0.73%, to $879.30.

Corporate Movers

Berkshire Hathaway (BRK: undefined, undefined, undefined%), billionaire Warren Buffett's holding company, lost its perfect "AAA" credit rating from Moody's, which cited the ongoing recession and heavy investment losses in the insurance sector. Last month Fitch Ratings similarly stripped Berkshire of its "AAA" rating.

Barclays Capital (BCS: 10.8912, 1.5212, 16.23%) announced the sale of its iShares exchange-traded funds to CVC Capital for $4.4 billion.

Morgan Stanley (MS: 25.35, 2.73, 12.07%) is expected to take a higher-than-expected first-quarter hit of $1.2 billion to $1.7 billion on a rebound in its bond prices, The Wall Street Journal reported. While rising bond prices are generally thought of as a positive, the write downs add to problems in real-estate and other business lines and could send Morgan to its first back-to-back quarterly losses since it went public 23 years ago, the newspaper reported.

Toyota Motors (TM: 79.2336, 3.4936, 4.61%) plans to overhaul its U.S. operations by combining engineering, manufacturing and sales under one exec, the Journal reported.

General Motors (GM: 2.01, 0.081, 4.2%) could receive $100 million to $200 million for its Hummer brand, which is still being bid on by three companies, including private-equity firms and wealthy individuals, Reuters reported. Of the three remaining bidders, which don't include any auto makers, only one is from the U.S., the wire service reported.

Wells Fargo (WFC: 19.52, 4.64, 31.18%) is likely to hold onto Evergreen Investments, the money-management unit inherited when Wells acquired Wachovia last year, the New York Post reported. However, Wells Fargo is likely to keep a smaller version of Wachovia's investment bank on hand, the newspaper reported.

World Markets

European indexes were solidly in the green, led by a 1.05% jump for Germany's DAX and a 0.42% rally for France's CAC 40.

Amid news of a Japanese stimulus package, Asian markets rallied overnight. Japan's Nikkei 225 soared 3.74% to 8916.06 and Hong Kong's Hang Seng rose 2.95% to 14901.41.



Stocks Rally in Time for the 3-day Easter Weekend ...


NEW YORK -- U.S. stocks soared on Thursday, sparking a 200-point rise in the Dow Jones Industrial Average( DJIA), with investor spirits lifted by a surprising first-quarter profit prediction by Wells Fargo & Co. . The Dow Jones Industrial Average gained 204.85 points to 8,041.96. The S&P 500 Index(.INX) climbed 25.55 points to 850.71. The Nasdaq Composite (.IXIC)rose 51.62 points to 1,642.18.

Rare talk of "profits" for a bank sparked big gains in the financial sector, which led the broader market higher on Thursday.

There's a growing body of evidence that the economy is beginning to make a cyclical turn and that the financial sector is finding a more even keel. Wholesale inventories fell by the largest increment on record, according to a Wednesday report, and the inventory-to-sales ratio, the most direct measure of supply and demand in the economy, showed that the latter is gradually catching up with the former. Lawrence Summers, a key economic adviser to President Barack Obama, noted Thursday the promise of a cyclical surge in production revealed by the inventory data.

The Dow Jones Industrial Average was up 196 points to 8033.36, the S&P 500-stock index gained 2.9% to 849.44 on a 8% surge in its financial sector. The Nasdaq Composite Index was up 3.3% to 1653.30, and is up 4.1% for the year. Traders are betting on the technology and consumer stocks that would benefit from a recovery. Dell shares rose 7.3% to $10.94 and eBay gained 6.9% to $14.91.

Wells Fargo shares jumped 24% to $18.48 after the bank said it expects to report record net income of approximately $3 billion, or 55 cents a share, for first quarter. The company said that it is seeing strong operating results from its acquisition of Wachovia and that lending activity has been brisk. Wells said it expects consolidated net interest margin of approximately 4.1%.

"There is going to be a clear difference between ... (click here to read more of this story.)

The Wall Street Report: Two-Day Slide Halted

Matt Egan
FOXBusiness

After a back-and-forth trading session, Wall Street's two-day selloff ended on Wednesday as big rallies for retailers and life insurers overshadowed the latest bleak economic news.

Today's Markets

The Dow Jones Industrial Average rose 47.55 points, or 0.61%, to 7837.11, the S&P 500 added 9.61 points, or 1.18%, to 825.16 and the Nasdaq Composite picked up 29.05 points, or 1.86%, to 1590.66. The consumer-friendly FOX 50 gained 4.12 points, or 0.67%, to 619.15.

Without any major economic reports and mixed signals on the earnings front, the markets searched for direction throughout the day before ending near their midpoint. Stocks were pushed higher by strong gains from retailers thanks to positive earnings from Bed, Bath & Beyond (BBBY: 31.7, 6.19, 24.26%) and a surge in the life-insurer sector amid talk of a government bailout.

“I think right now the earnings picture is going to dictate trading. It’s going to be choppy, as it has been,” said Dan Greenhaus, equity analyst at Miller Tabak. “Companies that perform like Bed, Bath & Beyond are going to be rewarded and those that don’t are going to be punished.”
The gains were Wall Street's first of the week and came despite Alcoa's (AA: 8.06, 0.24, 3.07%) weaker-than-expected quarterly results and the Federal Reserve downgrading its already gloomy economic forecast.

The Nasdaq Composite widely outpaced the broader market thanks to big gains from tech and consumer discretionary stocks. The vast majority of the Nasdaq 100's components closed in the green, led by Bed Bath & Beyond and Juniper Networks (JNPR: 17.51, 1.89, 12.1%).

Home Depot (HD: 25.11, 0.77, 3.16%), Alcoa and American Express (AXP: 15.73, 0.76, 5.08%) led the way up on Dow. On the downside, General Motors (GM: 1.929, -0.071, -3.55%), Citigroup (C: 2.68, -0.08, -2.9%) and Bank of America (BAC: 7.05, -0.28, -3.82%) tumbled. Last week the blue-chip index put the finishing touches on its strongest four-week win streak since 1933.

“We’re coming off a 26% rally [from the March lows] so one would believe there would be some give back. Nothing goes up forever,” said Greenhaus.

Wall Street's rally was nearly derailed after the Fed released its March 17-18 minutes, which showed the central bank is no longer banking on a 2009 recovery. Policy makers, which decided at last month's meeting to inject another $1 trillion into the economy, expect a slow recovery next year and unemployment to continue rising.

Retailers Dominate Earnings Kickoff

A day after earnings jitters sent the Dow to a 186-point plunge, Wall Street put a positive spin on mixed earnings reports as all five major companies reporting results ended higher.

Consumer discretionary stocks like Macy's (M: 10.33, 0.65, 6.71%) and Aeropostale (ARO: 26.92, 1.39, 5.44%) rallied around Bed Bath & Beyond, which beat the Street by 11 cents and said it’s comfortable with analyst expectations for the current quarter and full year. Similarly, discount retailer Family Dollar (FDO: 34.61, 1.88, 5.74%) soared to 52-week highs after it matched expectations and upped its full-year outlook again. Also, Ruby Tuesday (RT: 6.08, 2.24, 58.33%) surged more than 50% after the restaurant operator widely exceeded estimates.

The upbeat news from the retail sector overshadowed the results from aluminum maker Alcoa, which officially started earnings season late Tuesday by reporting a weaker-than-expected loss of 59 cents per share. Mosaic (MOS: 45.575, 2.615, 6.09%) also disappointed the Street as the fertilizer company’s net income plunged 88% last quarter.

Insurers, M&A Provide Strength

Life insurers were the biggest winners on Wednesday as stocks like MetLife (MET: 24.75, 0.67, 2.78%) and Genworth Financial (GNW: 2.34, 0.24, 11.43%) surged after The Wall Street Journal reported the Treasury Department plans to soon offer TARP funds to a number of struggling life insurers that own federally chartered banks. Sources confirmed to FOX Business the government is considering such a move.

Life insurers were the ... (Click here to read the rest of this story.)

The Wall Street Report: GM In Process Of Bankruptcy ?

The Bulls Are Baaaaack !!!

The markets gave back a chunk of last week’s big gains on Tuesday as Wall Street braces for the ugly corporate reality likely to be exposed by the start of earnings season.

Today's Markets

The Dow Jones Industrial Average (.INDU) lost 186.29 points, or 2.34%, to 7789.56, the S&P 500 fell 19.93 points, or 2.39%, to 815.55 and the Nasdaq Composite (.IXIC) slid 45.10 points, or 2.81%, to 1561.61. The consumer-friendly FOX 50 dropped 13.10 points, or 2.22%, to 615.03.

The triple-digit selloff adds to Monday’s minor losses and comes amid new signs of a potential bankruptcy for General Motors (GM: 2, -0.25, -11.11%) and worries about earnings season, which is set to kick off Tuesday evening with results from aluminum titan Alcoa (AA: 7.82, -0.09, -1.14%).

“The hopes and wishes rally seen over the past month will be met with the reality of earnings season and we'll see what dreams come true and which get scorched. Earnings will be ugly but commentary about [the second quarter] will be most relevant,” Peter Boockvar, equity analyst at Miller Tabak, wrote in a note.

Few were surprised with the pullback as Wall Street had been in the midst of one of its strongest stretches on record. Thanks to newfound economic optimism and more confidence in government actions, the Dow last week capped off its best four-week win streak since 1933.

“We have come far fast and with little to fundamentally support the move. I don't want to sound too negative -- I am not,” Peter Kenny, managing director at Knight Capital Group, wrote in a note. “If we give back [some gains], look for the market to show some resilience. Dips will likely be bought.”

On a technical basis, Kenny said he expects the S&P to be resilient near the 770-800 level.

Citigroup (C: 2.76, 0.04, 1.47%) and Microsoft (MSFT: 18.76, 0, 0%) were the only two of the Dow's 30 components that made headway Tuesday. The biggest percentage losers on the benchmark index included GM, General Electric (GE: 10.6309, -0.5191, -4.66%) and Caterpillar (CAT: 29.43, -1.84, -5.88%).

The vast majority of the Nasdaq 100's members also closed lower, led by steep drops for tech stocks like BlackBerry maker Research in Motion (RIMM: 59.95, -4, -6.25%) and Dell (DELL: 9.83, -0.5, -4.84%). The sector remains rattled by the apparent collapse of IBM's (IBM: 98.67, -2.85, -2.81%) takeover of Sun Microsystems (JAVA: 6.28, -0.3, -4.56%).

Tuesday's dive erased the majority of last week's rally and bolsters the case by some that Wall Street's recent surge was overdone to the upside.

“I think we’re going to retest the lows. Historically that’s what you do. There is this rush to believe the worst is behind us and that may well be true but the bottoming process can be very difficult and painful,” Tony Dwyer, equity market strategist at FTN Equity Capital, told FOX Business.

'Sell-and-See' Approach to Earnings

Traders clearly weren't waiting around on the hopes companies will sound upbeat tones in their earnings reports in the midst of the deepest recession since World War II.

While the focus will be on companies' second-quarter and full-year forecasts, analysts expect first-quarter earnings to have declined 37% from the year before. A decline in earnings would mark the seventh-straight contracting quarter, the longest such streak since the Great Depression, according to Bloomberg.

Alcoa, the largest U.S. mining and aluminum company, is expected to report a loss of 57 cents per share, potentially kicking off earnings season on a bleak note. In addition to Alcoa, earnings were expected Tuesday evening from Bed Bath & Beyond (BBBY: 25.51, -0.86, -3.26%), Mosaic (MOS: 42.96, -1.91, -4.26%) and Ruby Tuesday (RT: 3.84, -0.21, -5.19%).

GM, Energy Drag on Markets

Energy stocks such as BP (BP: 39.58, -1.08, -2.66%) and ExxonMobil (XOM: 68.66, -1.32, -1.89%) were some of the biggest weights on the market Tuesday as crude oil ended in the red for the third straight day. Crude slid $1.90 per barrel, or 3.72%, to $49.15. On the other hand, gold headed higher, rising $10.70 per ounce, or 1.23%, to $882.20.

Financial stocks were also under some pressure Tuesday as banks like Morgan Stanley (MS: 23.21, -0.122, -0.52%) and State Street (STT: 32.16, -0.83, -2.52%) tumbled on new worries about banks’ toxic assets. The International Monetary Fund is expected to say toxic debts owned by banks and insurers could jump to $4 trillion, including $3.1 trillion in the U.S. alone, British paper The Times reported.

Meanwhile, the markets were provided with another reminder of the precarious state of the U.S. auto industry as Bloomberg News reported General Motors (GM: 2, -0.25, -11.11%) is speeding up preparations for a possible bankruptcy filing. The auto maker is reportedly considering a “363 sale” under the bankruptcy code that would allow it to create a new company from the assets and brands of GM.

Corporate Movers

American International Group's (AIG: 1.05, -0.06, -5.41%) asset management business has drawn interest from about a half-dozen bidders but the bailed-out insurer may have to sell it for a discount due to client withdrawals and declines in asset prices, The Wall Street Journal reported. Potential buyers, which include several private-equity firms, have offered between $400 million and $800 million, the newspaper reported.

Sun Microsystems (JAVA: 6.28, -0.3, -4.56%) CEO Jonathan Schwartz’s job could be in jeopardy if his company’s deal with IBM (IBM: 98.67, -2.85, -2.81%) is not revived, the Journal reported. Schwartz favored the IBM offer but a board faction led by Sun chairman and co-founder Scott McNealy opposed it, the newspaper reported. Talks have reportedly broken down amid pricing and regulatory concerns.

Royal Bank of Scotland (RBS: 7.7182, -1.1818, -13.28%) said the U.K. government’s stake in the lender will rise to 70.3%, up from 58%, due to a failed effort to raise money in the private sector. RBS also said it is in talks with unions about cutting as many as 9,000 back-office jobs over the next two years.

Blockbuster (BBI: 0.78, -0.0999, -11.35%) saw its shares dive a day after the movie rental chain warned its auditors believe the risk of not restructuring its credit facilities raises “substantial doubt” about its ability to continue as a going concern.

Brinker International (EAT: 16.8501, 0.6001, 3.69%), the parent of Chili’s Grill & Bar, forecasted a better-than-expected adjusted-quarterly profit of 44 cents to 45 cents per share.

World Markets

European indexes ended in the red as London's FTSE 100 sank 1.58% to 3930.52, Germany's DAX slipped 0.63% to 4322.50 and Paris' CAC 40 fell 0.94% to 2902.31 .

In Asia, Japan's Nikkei 225 fell 0.28% to 8832.85 and Hong Kong's Hang Seng tumbled 0.46% to 14928.97. China's Shanghai Stock Exchange saw its benchmark index, the Shanghai Composite, rise 0.8% to 2439.18 after being closed on Monday.



GM Could File for Bankruptcy, Reports Say
Kathryn Elizabeth Tuggle
FOXBusiness

General Motors Corp. (GM: 2.049, -0.201, -8.93%) could be moving more quickly toward bankruptcy, according to numerous reports that cite individuals familiar with the matter.

A possible bankruptcy would be hastened in spite of company directors who are seeking to explore savings to aid the company in the months to come, the reports said. Those funds could potentially be used to finance a bankruptcy.

GM’s new CEO, Fritz Henderson, took over the company after former CEO Rick Wagoner was replaced by the President’s Administration last week. Henderson appeared on NBC’s discussion program, “Meet the Press” on Sunday and said that bankruptcy was not inevitable for GM, but was possible.

“We are planning to get the job done. Our preference is to do it outside of a bankruptcy process, but it would only be prudent to make sure that we're planning for if we need to resort to that, that we can move and we can move fast,” Henderson said in the interview, according to a transcript released by NBC.

GM has been infused with roughly $13 billion in government bailout funds over the last 12 months, and has requested another $16 billion for its complete recovery.

“As I look at the situation, we need to accomplish a set of goals, and accomplishing those is -- can't be compromised. So if it can't be done outside of a bankruptcy process, it will be done within it,” Henderson said in the interview.

“Our worry is -- how do we get General Motors going forward? And that's where we're going to spend 100% of our time,” he added.

The Wall Street Report: The Monday (Big) Blues

The Markets today took a breather. As the Dow Jones Industrial Average (.DJIA) fell 41.74 points (-0.52%) to 7975.85. The Nasdaq (.IXIC) fell also -15.16 (-0.93%) to 1606.71.

Stocks In Focus For Tuesday

SAN FRANCISCO -- Among the companies whose shares are expected to see active trade in Tuesday's session are Alcoa Inc., Bed Bath & Beyond Inc. and Mosaic Co.

Alcoa (AA: 7.91, -0.19, -2.35%) is expected to report a first-quarter loss of 58 cents a share, according to analysts surveyed by Thomson Reuters.

Bed Bath & Beyond (BBBY: 26.37, -1.25, -4.53%) is forecast to post earnings of 44 cents a share in the fourth quarter, according to analysts surveyed by FactSet Research.

Mosaic (MOS: 44.87, -0.65, -1.43%) is estimated to report a profit of 25 cents a share in the fiscal third quarter, according to analysts surveyed by FactSet Research.

After Monday's closing bell, Immucor Inc. (BLUD: 24.06, -0.48, -1.96%) said its fiscal third-quarter profit was virtually flat, up to $19.5 million, or 27 cents a share, from $19.3 million, or 27 cents a share, in the year-ago period. Revenue rose to $75.3 million from $67 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 22 cents a share on revenue of $73.1 million. The medical diagnostics company expects earnings of 97 cents to $1.02 for 2009 on revenue of $292 million to $300 million. Analysts estimate 99 cents on revenue of $295.5 million.

Watch list

Caterpillar Inc. (CAT: 31.27, -0.8801, -2.74%) and Navistar International Corp. (NAV: 31.8899, 1.1899, 3.88%) said they signed a definitive truck agreement that was first proposed in June. Under the agreement, the companies will produce Caterpillar heavy-duty vocational trucks for the North American market and will form a 50-50 joint venture to pursue the global commercial truck market outside of North America. Financial details of the agreement were not disclosed.

ConAgra Foods Inc. (CAG: 17.13, 0.05, 0.29%) said it plans to sell $1 billion in senior notes to help pay down debt. The offering is made up of $500 million in 5.875% senior notes due April 15, 2014, and $500 million in 7% senior notes due April 15, 2019. ConAgra expects to close the offering on April 14.

Harley-Davidson Inc. (HOG: 17.11, 0.56, 3.38%) said that Keith Wandell will become its new president and chief executive officer, effective May 1. Wandell, 59, will succeed James Ziemer, who is retiring. Wandell is currently president and chief operating officer of Johnson Controls Inc. (JCI: 15.09, -0.47, -3.02%)

Sun Microsystems Inc. (JAVA: 6.58, -1.91, -22.5%) is standing by its leadership team following a breakdown in talks with International Business Machines (IBM: 101.52, -0.7, -0.68%) to buy the company, The Wall Street Journal reported. After the deal collapsed over the weekend, speculation arose concerning the future of Jonathan Schwartz, Sun's chief executive. "As a policy Sun does not comment on rumors or speculation. What we can say is that Sun is committed to its leadership team, growth strategy and building value for its shareholders -- with continued alignment of resources to best position the company for improved financial performance," the company said, according to the Journal.

Ventas Inc. (VTR: 25.41, -0.56, -2.16%) expects to see adjusted 2009 funds from operations of $2.55 to $2.65 a share. Analysts surveyed by FactSet Research estimate funds from operations of $2.60 a share. The health-care real estate investment trust also plans to sell 8.5 million shares of common stock and $200 million in senior notes due in 2016 to help pay down debt. Ventas has about 143.4 million shares outstanding. Separately, Ventas said it plans to buy back up to $310 million in senior notes due between 2010 and 2015.

http://www.foxbusiness.com/story/markets/industries/transportation/stocks-focus-tuesday-1873720267/

Merkin Charged With Fraud for Steering Money Into Madoff's Scheme

Financier J. Ezra Merkin was charged Monday with fraud by the New York Attorney General’s Office for his role in steering billions of dollars of investors’ funds into Bernard L. Madoff’s massive Ponzi scheme.

Merkin, according to a statement issued by the Attorney General’s office, “ignored irregularities and other glaring red flags related to Madoff’s investments.”

The 54-page complaint filed in New York State Supreme Court states that Merkin collected $470 million in management and incentive fees in return for funneling $2.4 billion to Madoff.

Merkin’s money management company, Gabriel Capital, which oversaw several funds including Ascot Fund Limited, Gabriel Capital L.P. and Ariel Fund, is also charged in the suit. In the wake of the Madoff scandal, Merkin in January stepped down from his position as chairman of GMAC, the financing arm of General Motors (GM: 2.2599, 0.1199, 5.6%).

It’s the second fraud suit filed against so-called third party feeder funds that invested their clients’ money with Madoff.

Massachusetts’ top securities regulator filed suit last week against Fairfield Greenwich Group, a Connecticut-based firm that invested $7 billion with Madoff while collecting hundreds of millions in fees.
The New York suit seeks unspecified damages and repayment of all fees paid to Merkin by Madoff.

The complaint says Merkin did not tell his clients that their money was going to Madoff yet represented himself as an “investing guru.” Merkin was instead a “master marketer” who used his connections as a well-known Wall Street financier to convince investors over a period of nearly 20 years to turn their money over to him.

“Merkin profited enormously from Madoff’s scheme, reaping huge commissions while investors lost all their money,” Attorney General Andrew Cuomo said in the statement. “Merkin duped individual investors, nonprofits and charities into believing he was responsibly managing their investments, when in actuality he was dumping them into history’s largest Ponzi scheme.”

Merkin is an influential figure, especially in New York, where he was prominent both on Wall Street and in social and charitable circles. While he and Madoff were still riding high, Merkin sat on the boards of such New York institutions as Carnegie Hall, Yeshiva University and the Fifth Avenue Synagogue.

The complaint alleges that two of Merkin’s “most trusted colleagues” repeatedly warned Merkin that Madoff’s returns were too good to be true.
In addition, the complaint says Merkin used “fraudulent quarterly reports, investor presentation materials and offering documents” to conceal Madoff’s role and embellished his own role.

Merkin's attorney, Andrew J. Levander, issued a statement saying Merkin will "vigorously" defend himself against "this hasty and ill-conceived lawsuit."
Levander said Merkin has been fully cooperating with Cuomo's investigation into Madoff's operations, and that, contrary to the allegations in Cuomo's complaint, Merkin's investors knew their money was going to Madoff.

"Mr. Merkin performed extensive due diligence on Madoff and his trading strategy, and in addition arranged meetings with Madoff for many investors to perform their own due diligence. Unfortunately, Mr. Merkin's due diligence, just like the detailed investigations performed by countless others, including regulators, was thwarted by the intricate, fraudulent scheme perpetrated by Madoff," Levander said.

Michael Shapiro, an attorney with Carter Ledyard & Milburn who represents several of Madoff victims, said New York securities laws require don’t require the Attorney General to prove that Merkin knew that Madoff was operating a fraud.

Cuomo needs to prove only that Merkin’s marketing materials included “material misstatements.”
“They don’t have to prove any intent to defraud or deceive,” said Shapiro.

Shapiro, a former prosecutor, said it was “inevitable” that financial advisors who, knowingly or not, turned a blind eye to Madoff’s unorthodox operations while collecting tens of millions of dollars in fees “would be held to account.”

Merkin is already facing civil suits filed by investors, including New York University, who claim Merkin hid from them the fact that he was turning their money over to Madoff.

Source: FoxBusiness


Sun Shares Plummet After IBM Talks Collapse


NEW YORK--Shares of Sun Microsystems Inc (JAVA: 6.49, -2, -23.56%)tumbled 24% on Monday after the company rejected rival computer and software maker International Business Machines Corp' (IBM: 100.64, -1.58, -1.55%) $7 billion offer.

Sun shares fell to $6.44 in pre-market trading after Sun pulled the plug on the deal which might have spelled the end of an era for a networking company that was once synonymous with the Internet.

The buyout was seen as a means for survival for the once-storied Silicon Valley company, which has been losing market share.

Sun was unhappy with IBM's offer of $9.40 per share or below, and it was unclear if talks would resume, according to a source, who was not authorized to speak publicly about the matter. The bid represented a premium of up to 89% on Sun's shares before deal talks were first reported last month.

Sun shares had risen to $8.49 on Friday, from $4.97 on March 17, a day before talks between the two technology companies were first reported. The Wall Street Journal had previously said IBM's original bid was $10 to $11 a share.

The deal may have helped IBM bolster its offering of computer servers, storage equipment and software as competition heats up with rivals like Hewlett-Packard Co (HPQ: 33.34, -0.82, -2.4%).

Sun rose to prominence selling high-end computer servers in the 1990s but never fully recovered from the dot-com bubble burst earlier this decade. Analysts also say it failed to fully capitalize on its software assets including Solaris and Java.

Failed talks with IBM could mean that Sun will need to find another buyer, and contend with a lower offer. But no bidder other than IBM has emerged in the months that Sun has been shopping itself.

The Wall Street Report:™ The Weekend Edition

An Editorial for the Wall Street Report

This is an editorial written by Benjamin Wright for the Wall Street Report. The expressions and opinions stated here are his. And the Wall Street Reports holds no responsiblity of his contents here.

Is This the Beginning of The Financial Armageddon ?

For the past month (March 2009), we entered a new Wall Street, unlike we have seen in past years. And, make no mistake about it, we are still vunerable for a "Bear market". With all these sell-offs that have been taken place is somewhat just that- a short Bull market. What I do I mean by that ?

Simple, as history has mentioned with rhetorical volume, we are destine to see a bottom in the market. It is indeed still a Global crisis, not just in the United States. But we are the leader in this Global downfall. (Remember, it all started here in the U.S. back in 2001.)

But other economists are stating, the Financial crisis really started in October 1997. It just never got off the ground, to maintain a healthy uprise. Between 1997 and 2008, the markets have see-sawed like a yo-yo on Viagara. And it seems the markets are looking for some answers. So, it is playing itself out, as investors are out in the cold, waiting to see what it will prevail.

Congress and other elite politicans "think" they have a solution to "feed this bull". So, they figured instead of really "fixing the addiction"; they rather just feed it with more. But what they don't realize, they are merely preventing anything that would cause it to burst in the future.

When former President George W. Bush was still in office, he didn't want to do anything to contribute to the solution to the Financial crisis. Instead of trying to save Lehman Brothers and Bear Stearns in September 16th, 2008, he just watched - just like everyone else, including Congress - as both international firms collasped. He (President Bush) could have stepped in, and try to convince Congress to save the firms. Just as President Obama is trying to save General Motors.

Even though, General Motors will soon be governmental-funded enitity, at least, it still has legs to stand on. And perhaps, the Automaker won't be completely "out of business".

Perhaps, we have not yet learned the lessons from the 1929 Stock Market Crash. Or the 1987 crash. But I am sure, even though, both are completely different scenerios, they are similiar in some way to this Crash of 2008.

I read both the Barrons and Wall Street Journal faithfully. I do watch the business channel (CNBC) to get my news and opinions. So, I do understand the situation we are in. I realize, it will take another year or so, to see some recovery to this Fianacial fiasco. But the markets have a mind of its own. It will work itself out, when it wants to. Not when investors or economists want it to .

When I listen to the words from various people, including Warren Buffet, Kenneth Lewis (CEO of Bank of America), and many important people. I carefully disect how they see this economy . And why they feel that this market will turn on its ugly head.

Most Americans have definitely lost confidence in the state of the Economy. And some of that is blamed on the Madoff scandal. Mr. Bernard Madoff has "stolen millions" of confidences - not just money invested to him.

AIG with these lucrative bonuses to employees to "keep the firm standing" (when they knew very well, it was soon to be "broken into pieces"), was another lame excuse to why American people have lost total confidence in the financial system.

I am not going to tally up these companies, politicans, scam artists, and excuses to why this economy really SUCKS !!! Because, all of those elements are just smaller pieces to this dubious puzzle.

The other part of the dysfunctional puzzle is the Jobless rate. It rosed 8.5% from 8.1% last month (March 2009). Over 650,000 jobs have been literally lost !

And, when that happens ... no one wants to buy. And no one can sell. Which means, companies have to cut jobs, just to survive. But in reality, it hurts those who used to work, and now are left without any.

Then the average American has to find low paying jobs, just to put food on the family table. Sometimes, even getting a low paying job takes time getting. And, in the meantime, they are left to wonder, " What am I going to do to buy food, clothes and start my car in the morning, if I don't have any money to put it all in ?"

Marriages around the country are at an All-time high. Because, spouses are fighting over financial issues, and not realizing, its tearing up the family apart.

There are chaos all around the country, violence erupting in major cities. People are getting frustrated at the fact, they are now without a job. And they don't really know what their future holds. (Of course, some of these violent perditions are just an act of excuses to make all of us to "feel sorry" for them.)

Perhaps, in the Bible, when it was mentioned, we will face a long-lasting (not to mention HELLISH) moment in our lives, that will cause us all to believe --- this is some symbolic sign - the end of the world - is about to occur. Perhaps, this is either God's or Satan's way of telling us ... Be Prepared.

Get ready for a Financial Armageddon.

When the whole Global markets start to spin out of control. And cause an "unspeakable" wave of meltdown. And, 2008-2009 is the first wave of this upcoming Global Meltdown. Which will cause more hectic and kaleidoscopic chaos from the United States to Russia, France to Australia, the Uk to Germany. And every little countries trying to do battle with bigger ones ( like the one in Africa and the Middle East). Perhaps, the Satan Spawn will show its ugly head at the very last "Closing Bell", as He rings it at 4pm at the NYSE.

Now, I know my opinions here are abit far-fetch. But do you see this coming ?

Am I the only Soul here, that sees the signs ? The demented and chaotic possibly, perhaps we are heading in that direction ?

I am sure you may not agree to what I just mentioned today. But perhaps, this is just all a "Fairy Tale", and we won't see a Global Nightmare.

(And, when I do mention a Global Nightmare, I am not stating a Financial one.)

~ Benjamin Wright

Benjamin Wright is a free-lance blogger, and an investor. He holds a couple of stocks, Google (GOOG) and General Electric (GE). He believes the Tech sector will hold strong throughout the year. And General Electric continues to have a splendid year.

The Wall Street Report: The Weekend Edition

Springtime for Stocks: Rally May Finally Beat Down Bear

The bear may finally be beaten.

As investors digested this week's flurry of good news—or at least better-than-bad news—talk grew that the long slog through the debilitating bear market could be over.

"The world is not going to zero," Nadav Baum, managing director of investments at BPU Investment Management in Pittsburgh, says of investor sentiment these days. "Things seem to be getting better. Deals are getting done and people have more swagger in their step. So maybe we are coming out of something."

The markets kicked off the second quarter in the face of a series of positive developments that sent stocks soaring in Thursday trade.

Consider:

Mark-to-market accounting rules, the long-despised bogeyman keeping banks' toxic assets from being sold, were altered substantially, kickstarting the Wall Street rally.

The Group of 20 world economic summit yielded a $20 billion pledge to resuscitate the global economy.

Auto sales numbers, while still dauntingly low, beat expectations and analysts foresee more lending to get the sales pace accelerated.

Add some stabilizing in housing numbers and improvement in investor sentiment to the mix and you had both technicians and analysts of fundamentals cheering on the surge that has welcomed in the second quarter.

Market pros consider this a strong buying opportunity, with banks, materials and technology the main sectors to pull the market out of its malaise.

"This is a really big moment," says Uri Landesman, head of global growth strategies at ING Investment Management in New York. "The real question in my mind is if we are dragging the floor up."

The Standard & Poor's 500 put in an intraday floor of 666 on March 6, and Landesman now sees the market gradually setting higher lows, which he says is a building process towards a bull market.

On the other end, traders were watching 840 as a possible new resistance level that the market hit but did not exceed Thursday. Breaking through that and then past 845 would be seen also as strongly bullish trends.

"If they go through that I think they'll catch a lot of shorts flat-footed and it will overtrade on itself," Art Cashin, director of floor operations at UBS, told CNBC (see video). "But I think the bottoming process looks very healthy here and we'll see if they do pull back to retest anything."

Whether the latest effort at recovery takes a perfect "V" shape is up for debate.

Unemployment appears to be posing the strongest headwind to the market now, and first-quarter earnings also will pose a significant challenge to investor sentiment.

The changes to mark-to-market accounting left some uncertainty as to what impact they will have on the earnings reports that will kick off next week, with most expecting the greatest impact to come in the second quarter numbers released over the summer.

"We're going to go through a very rough earnings period now," Landesman says. "I don't know one month from now if we're going to be higher than we are today. But I think once you get first-quarter earnings out of the way we could be poised for a pretty good move."

The accounting rules changes received most of the credit for Thursday's rally.

Banks have been hampered from lending because the distressed assets were impairing capital ratios, but the new rules are directed at that problem and were widely expected to goose lending across the financial industry.

"This is kind of like the gum that's been holding up the dam," says Gary Hager, president of Integrated Wealth Management in Edison, N.J. "When they peel this rule back and say that the toxic or Level 3 assets can be moved back to either off the balance sheet or quoted at a reasonable valuation to their timeline ... all hell is going to break loose on the upside."

Using the Fibonacci numbers sequence to predict stock movements, Hager says 8,330 and 9,313 will be critical resistance levels for the Dow, with 10,220 seen as a breakthrough that will firmly establish the potential to challenge the historic high of 14,164 on Oct. 9, 2007.

In the meantime, though, he says policy makers are on the right track to getting the market back to health. Thwarting short-sellers by reinstituting a rule that prevents shorting stocks unless it is after an up move would complete the picture, Hager says.

"If they could add one thing more to this cake they're baking, it would be the uptick rule," he says. "If they come off that uptick rule it's off to the races."
If there is any other wariness over the rally it stems from inflationary concerns--that in priming the pump with trillions of printed money the government may overshoot and create more problems down the line.

Read more here .

Analysts mull replacements if GM leaves Dow
Goldman, Cisco are among candidates to replace troubled automaker

By Kate Gibson, MarketWatch


NEW YORK (MarketWatch) -- With General Motors Corp. possibly headed into government-sponsored bankruptcy, the automaker's standing as one of 30 members of an exclusive club -- Dow Jones Industrial Average -- is now viewed as shaky.

Goldman Sachs Group Inc. (GS 119.48, +5.26, +4.6%) is among the picks of analysts weighing in on likely replacements.

General Motors ( GM 2.10, +0.01, +0.5%) and another Dow component, Citigroup Inc. (C 2.85, +0.11, +4.0%) , were days ago dropped from Dow's global stock index. News Corp. (NWS 8.79, +0.25, +2.9%) , the owner of the index as well as of MarketWatch, citied market conditions for their ouster.

Pulling a company from the global index is often a "trial balloon" for an eventual ousting from the Dow industrials, said Doug Roberts, chief investment strategist for Channel Capital Research .

Read the rest here .


Earnings will test the rally

SAN FRANCISCO (MarketWatch) -- April is the cruelest month, the poet T.S. Eliot once wrote, and stock market investors are hoping next week won't live up to that epitaph and dash the hopes of those who believe the current uptrend will continue.

Next week isn't the first full trading week of the month -- markets will be closed on Friday in observance of Good Friday -- but it will bring the official kickoff of what will likely be a grim first-quarter earnings season. It will also bring trade data and the minutes of the U.S. Federal Open Market Committee's March policy meeting, which could provide more clues about whether a bottom for the U.S. economic downturn is anywhere on the horizon.

The earnings reports "will be a real test to see if the current rally is just a technical rally within the overall context of an ongoing bear market or the first leg of a new bull market," said Frederic Dickson, chief market strategist, Davidson Companies.

The Dow ended above 8,000 for the first time since Feb. 9, but it's the broader S&P 500 that many market analysts are watching for a turnaround signal.

"Any close above 850 for the S&P 500 next week, then it's would be safe to say the bear market has ended, and we can work our way higher," said Peter Cardillo, chief market economist at Avalon Partners. (Click here to read the rest of this story.)

The Wall Street Report: Unemployment Grows

Crunching the Numbers

Dow's four-week win streak continues as it surpassed the 8000-point mark for the first time since late November of 2008 !

The Dow [.IDU] rosed in good fashion at +39.51 points (+0.50%) to 8017.59; as the Nasdaq [.IXIC] had the BEST WEEK EVER, with +19.24 (+1.20%) at 1621.87 !!!


Stocks closed out a week that began with a wicked selloff and turned to a historic move higher on a fairly quiet note.

The major averages ended positive, following tumult that saw a major accounting change and the indexes posting gains not seen in more than 70 years.

Bank stocks pared their losses after spending the morning lower, a day after critical changes to accounting rules known as mark-to-market lifted the entire market. Internet companies helped lead a late-afternoon bounce that saw the Nasdaq tech barometer close with a more than 1 percent gain and the Standard & Poor's 500 break the 840 technical barrier.

Sobering news on employment and a lower reading in business activity had sent stocks negative earlier, but volume was anemic through the day and the averages moved little after noon. Data showed the economy shed 663,000 jobs in March and the unemployment rate climbed to 8.5 percent.

The Dow Jones Industrial Average has posted post its biggest four-week gain in 75 years as analysts are talking about an end to the bear market.

"Short- to intermediate-term I'd have to say I'm probably positive," said Matthew Tuttle, president of Tuttle Wealth Management in Stamford, Conn. "The numbers are ugly but everyone expected them to be ugly--they're not uglier than we thought they were going to be. At least in the short to intermediate term we probably have seen a low."

Some pullback from the week's high was expected Friday as profit-takers recovered some of the massive losses the market has seen in the past 18 months.

"I think the rally got a little ahead of itself here," Art Cashin, director of floor operations at UBS, told CNBC. "There are certain aspects about this that still say, 'bear market rally.' It was heavily led by the most-shorted stocks."

Technology showed the most strength as the broader market struggled.

Elsewhere in government, Congress has approved President Obama's $3.6 trillion budget that includes massive spending increases in health care, education and energy.

In other markets, copper futures rose above $2 a pound for the first time since November as fund managers began moving back into the metal. At the same time, Treasury prices continued to fall as risk appetite gained, sending the 10-year note a full point lower.

Market breadth was positive, with gainers beating losers 2 to 1 as 1.48 billion shares changed hands on the New York Stock Exchange.

The Dow (.IDU) is up +3.10% for the week, and still down -8.65% for the year. The Nasdaq (.IXIC) is up +4.96% for the week, and also up +2.84% for the year. Which means, the markets were posted dramatically not seen in more than 70 years !



Peter Madoff Is In Court Today !!!
By AARON LUCCHETTI

MINEOLA, N.Y. – Peter Madoff under a new stipulation on an asset freeze can spend up to $10,000 per month for living expenses, including mortgage loans and insurance premiums.
The judge in the case Friday accepted the new stipulation, according to a court official.
Lawyers for Peter Madoff and a law student who wanted to extend a freeze on Mr. Madoff's assets had presented an agreement to Judge Stephen Bucaria in a suburban New York court Friday morning.

But the judge initially declined to accept it, saying it needed to be changed in both form and substance.

Judge Bucaria had said he was concerned about the extent of his jurisdiction, especially given that U.S. prosecutors were also handling many of the same issues in the federal investigation of the Madoff case, in which Peter Madoff's brother, Bernard Madoff, has pleaded guilty to perpetrating a massive Ponzi scheme.

"The agreement has serious omissions," the judge said earlier.

The hearing followed a decision by Judge Bucaria from a week ago to temporarily freeze the assets of Peter Madoff. The lawsuit was brought by a Brooklyn Law School student who claims he lost nearly $500,000 in the case. The issue at Friday's hearing was about imposing a more-permanent freeze as the law student pursues recovery.

The lawsuit alleges that Peter Madoff served as sole trustee between 2003 and 2008 for a trust established for Andrew Ross Samuels in 1997 by his grandfather, Martin J. Joel Jr., and breached his fiduciary duty to the trust.

Peter Madoff, as chief rules-compliance officer of Bernard L. Madoff Investment Securities LLC, "had full knowledge that it was a fraudulent Ponzi-scheme and nothing more than an unprecedented fraud," the lawsuit said. Peter Madoff hasn't been accused of wrongdoing in the alleged fraud.

A lawyer for him has said his client didn't know about the fraud.

Peter Madoff took the stand, and took an oath to accept the stipulation. He was wearing a dark suit, white shirt, and brown striped tie.

For more on the Bernard Madoff "Scam of the Century", please visit the Special Section of The Wall Street Journal .

Job Losses Grow, But More See Signs The Worse Is Over


When it comes to job losses in this recession, March may end up being the cruelest month.
“It almost can’t get any worse,” says economist David Jones of DMJ Advisors.
Friday's jobs report showed that a wide range of employers eliminated a total of 663,000 jobs last month, pushing the unemployment rate to 8.5 percent, the highest since late 1983.

The Wall Street Report: Inside The G20 Summit

Stocks to Watch:

GOOG, RIMM, INTC, CSCO, GE

The Dow [.INDJ] rosed +216.48 (+2.79%) to 7978.08; and the Nasdaq [.IXIC] continued its climb to the top at +51.03 (+3.29%) at 1602.63 to almost erase all of its losses for the year !


G-20 Agrees to Regulatory Crackdown, Bolsters IMF Resources

April 2 (Bloomberg) -- World leaders agreed on a regulatory blueprint for reining in the excesses that fed the worst financial crisis in six decades and pledged more than $1 trillion in emergency aid to cushion the economic fallout.

The Group of 20 policy makers, meeting in London, called for stricter limits on hedge funds, executive pay, credit- rating companies and risk-taking by banks. They also boosted the resources of the International Monetary Fund and offered cash to revive trade to help governments weather the economic and social turmoil. They sidestepped the question of whether to deliver more fiscal stimulus in their own economies.

The G-20 commitments amount to a transatlantic compromise and an effort to rewrite the rules of capitalism to address an integrated world economy that has outgrown the ability of individual governments to keep it in check. The leaders met as mounting unemployment demands a response even as stocks rose amid signs the global economy may be stabilizing.

“Global problems require global solutions,” U.K. Prime Minister Gordon Brown told reporters after hosting the talks. “Our prosperity is indivisible.”

• Dow industrials atop 8,000

Galvin Charges Madoff 'Feeder Firm' Fairfield Greenwich with Fraud

Massachusetts regulators today civilly charged Bernard Madoff “feeder firm” Fairfield Greenwich Group with fraud for assuring clients that it thoroughly monitored the now-disgraced financier’s work.

“Investment advisers have a fiduciary responsibility to their clients under law, (but) the allegations against Fairfield . . . outline a total disregard for such responsibility,” Secretary of the Commonwealth William Galvin said in filing a complaint on behalf of Massachusetts investors.

Galvin said Fairfield marketing materials claimed the firm closely tracked $7 billion of client money put into what turned out to be Madoff’s $65 billion Ponzi scheme.

Read more here .

The Fairfield Greenwich Group site: https://www.fggus.com/

The Wall Street Report: The G20 Summit

Towards the end of 2008 Leaders of the G-20 Countries meet in Washington. See the Declaration and action plan from the Washington Summit (PDF 72KB) . This meeting remitted follow up work to Finance Ministers. In addition to their November meeting in order to take forward this work in advance of the Leaders summit in London on 2nd April Finance Ministers and Central Bank Governors will also meet in March 2009. A deputies meeting will be held in February 2009 to prepare for the Ministers meeting.

Media releases archive-Date-Document-Type / Size

2006, Nov 15
2006 G-20 Meeting of Finance Ministers and Central Bank Governors
HTML

Media Release, Reserve Bank of Australia

2006, Nov 8
The G-20 Addressing Global Challenges
HTML
Speech by Dr Martin Parkinson, Executive Director, Australian Treasury

2006, Oct 9
The Role of the G-20 in the Global Financial Architecture
PDF / 76Kb
Presentation by Dr Martin Parkinson, Executive Director, Australian Treasury

2005, Oct 17
G-20 Meeting Ends, Communiqué Issued
HTML

2005, Oct 16
G-20 Delegates hold First Day Discussions on Three Topics
HTML

2005, Oct 16
Hu calls for Strengthening Global Cooperation
HTML

Full text of President Hu's speech at the G-20 Meeting
HTML

2004, Nov 21
G-20 Finance Ministers successfully concluded
PDF / 32Kb

2004, Oct 26
G-20 Conference of Finance Ministers and Central Bank Governors from 19 to 21 November in Berlin Registration for Media Representatives
PDF / 19Kb

2004, Aug 2
G-20 Conference of Finance Ministers and Central Bank Governors from 19 to 21 November in Berlin Registration for Media Representatives
PDF / 20Kb

2004, Mar 16
G-20 Conference of Finance Ministers and Central Bank Governors from 19 to 21 November in Berlin Registration for Media Representatives
PDF / 18Kb

2004, Jan 20
Shaping Globalisation Together
PDF / 140Kb

2002, Jul 16-17
Press-release issued after conclusion of G-20 Finance and Central Bank Deputies Meeting, New Delhi
PDF / 12Kb

2001, Nov 16-17
Finance Minister Sinha takes over G-20 Chair
PDF / 12Kb

2001, Nov 16
G-20 Finance Ministers and Central Bank Governors in Ottawa to Discuss Fight Against Terrorism
HTML

2001, Nov 5
Minister of Finance Announces Venue for G-20 Ministerial in Ottawa
HTML

2001, Oct 17
G-20 Finance Ministers and Central Bank Governors to Meet in Ottawa
HTML

2001, Jan 24
G-20 The Ideal Forum to Tackle Problems Associated With Globalization, says Finance Minister in London
HTML

2000, Oct 23
G-20 Ministers and Governors in Montréal to Discuss Financial Vulnerability
HTML

2000, Sep 13
Minister of Finance Announces Venue for G-20 Ministerial in Montréal
HTML

2000, Aug 16
Finance Minister Meets With NGOs in Advance of G-20 Meeting
HTML

2000, May 18
Minister of Finance Stresses Need for Broader Consultation to Successfully Manage Globalization HTML

2000, Apr 05
Finance Ministers and Central Bank Governors of the G-20 to Meet in Montréal in October 2000
HTML

1999, Dec 16
G-20 Commits to Efforts to Reduce Vulnerabilities to Global Financial Crises
HTML

1999, Sep 25
Finance Minister Paul Martin Chosen as Inaugural Chairperson of New Group of Twenty
HTML

Protests At G-20 Summit Remain Controlled, Largely Non-Violent
April 1st, 2009 - Wednesday

Protests at the Group of 20 Summit in London are remaining relatively subdued Wednesday, as a commanding police presence has kept the skirmishes to a minimum. Demonstrators gathered outside the Bank of England to voice their dissatisfaction with the current economic state as the global economy muddles through one of the most severe recessions of the past century."We are sick of spending money and killing people and saving bankers", Ronald Horne, self-proclaimed leader of the World Peace Group, told RTTNews.

"But we are not here to incite violence."Horne's group apparently consisted of him and two others, and there were numerous such organizations demonstrating."Our group will sit down at the outbreak of violence," Horned added.There has been significant tension at the outset of the global economic meeting, with leaders from around the world gathering to discuss the best way out of the current financial crisis. However, resentment has built against the banks and other financial institutions, sparking demonstrations with themes like "Financial Fools Day" in honor of April 1st.


The U.S. Markets opened low on fears of what could happen at the G20 Summit in England.

April Fool's no joke for bulls

April 1 (Bloomberg) -- President Barack Obama and U.K. Prime Minister Gordon Brown called on the international community to act in concert to overcome the global economic crisis as divisions emerged before a meeting of world leaders.

“We can only meet this challenge together,” Obama said today at a joint press conference with the British leader after private talks. “All of us here in London have the responsibility to act with a sense of urgency.” Reports of disagreements are “vastly overstated,” he said.

France, Germany and Japan have all raised concerns that tomorrow’s summit of leaders from the Group of 20 nations may fail to reach consensus. That would deal a blow to the summit’s aim to identify ways to end the global recession and avoid a repeat of the financial crisis that triggered it.

“This summit cannot simply agree to the lowest common denominator,” Brown said, adding that governments worldwide have so far agreed to spend about $2 trillion in stimulus programs to combat the “unprecedented” financial crisis. “We must stand united in our determination to do whatever is necessary.”

At the top of the G-20 agenda is a common regulatory framework to rein in hedge funds, derivatives trading, executive pay and risk-taking by financial firms. Nations remain divided about how much stimulus is required as well as about naming tax havens and a new global rulebook for banks.

‘Confidence and Concern’

“I’m traveling to London with a mixture of confidence and concern,” German Chancellor Angela Merkel told reporters in Berlin today. The G-20 may be trying to “suppress the problems and paint things in a brighter light than they are.”

French President Nicolas Sarkozy said the summit’s draft communiqué doesn’t do enough to crack down on tax cheats. Sarkozy’s finance minister, Christine Lagarde, said yesterday that he’d walk out of the summit if his push for stricter regulation flops. Japanese Prime Minister Taro Aso criticized Germany’s unwillingness to increase stimulus spending in the Financial Times today.

“In the current state of things, the proposals don’t suit France or Germany,” Sarkozy said on Europe 1 radio. “No agreement is secured. I know by experience that we will need to fight until the last minute.”

Expectations for the summit “are being managed down,” Stephen Roach, Morgan Stanley’s Asia chairman in Hong Kong, said in an interview.

No ‘Appetite’

“There seems to be no real appetite for the leaders to deal with the imbalances in a broader global economy or their own individual economies,” Roach said. “This is not going to be a breakthrough summit.”

Obama, who arrived in London last night on his first European trip as president, downplayed the differences among the G-20 nations.

“I am absolutely confident that this meeting will reflect enormous consensus about the need to work in concert to deal with these problems,” he said. “I think that the separation between the various parties involved has been vastly overstated.”

The recession has worsened since the G-20 leaders last met in November in Washington.
The Organization for Economic Cooperation and Development said in Paris that the economy of its 30 members will contract 4.3 percent this year and predicted unemployment in the Group of Seven will reach 36 million late next year. The World Bank lowered its growth forecast for developing countries this year by more than half to 2.1 percent.

EU Spending

The deepening slump has prompted a split over how much governments need to spend to reverse the tailspin. Germany and France have led a European Union response that the $400 billion EU states have already approved should be enough and any more would drive debt too high. Aso is preparing his third stimulus plan.

“There are countries that understand the importance of fiscal mobilization, and there are some other countries that do not -- which is why, I believe, Germany has come up with their views,” Aso told the FT in an interview.

The president sought to strike a balance between urging nations to take bolder action and coming across as overbearing - - a trait many in Europe ascribed to his predecessor, George W. Bush.

“We’re not going to agree on every point. I came here to put forward our ideas. But I also came here to listen, not to lecture,” Obama said.

“Having said that, we must not miss an opportunity to lead, to confront a crisis that knows no borders. We have a responsibility to coordinate our actions and to focus on common ground, not on our occasional differences.”


INTERNATIONAL HOPE CAMPAIGN



World Leaders Test Obama: China Calls For Global Currency To Replace Dollar... Russia Wants US To Back Off Range Of Policies.... France Threatens To Walk Out If Strict Regulations Aren't Adopted... Obama's Wednesday Schedule: Meeting With Queen Elizabeth II, Attending G-20 Dinner READ HUFFPOST'S G-20 BIGNEWS PAGE

FINANCIAL NEWS: Asian Stocks Rise On Speculation Of U.S. Auto Bankruptcies... Mexico To Get $30B-$40B Line Of Credit From IMF... Chase Tops Goldman In Arranging Rights Offers... Private Sector Axes 742,000 Jobs In March... Wall Street Drops At Beginning Of Second Quarter




Nobody making fool of bulls - Click here for story.

April bulls off to strong start
The Markets today went to the bulls (again !!!) , as the Dow rosed (after a low triple-digit sell-off this morning) to +152.68 (+2.01 %) to 7761.68 . And Nasdaq stayed above with +23.01 points ( +1.51 %) to 1551.60 .

• GM: - 0.01 (-0.52%) 1.93
• AIG: +0.07 (+7.00) 1.07
• GOOG: +0.91 (+0.26%) 354.09
• ETFC: +0.04 (+3.20%) 1.25
• ANF: +0.47 (+1.97%) 24.27

The Feds Seizes Bernard Madoff's Yacht In Florida

Federal marshals seized Bernard L. Madoff’s 55-foot luxury yacht and a 24-foot speedboat in Florida on Wednesday as part of the government’s effort to recover assets to pay back investors in Mr. Madoff’s enormous Ponzi scheme.

The yacht, named “Bull,” is a 1969 Rybovich that is valued at $2.2 million, according to Barry Golden, a spokesman for the United States Marshals Service. He told The Palm Beach Post that the yacht, seized at a Fort Lauderdale marina, was “in mint condition.” The speedboat was seized at a warehouse in Palm City.

The yacht had been docked at the Roscioli Yachting Center for at least a dozen years during the off-season, the marina’s owner, Bob Roscioli, told The South Florida Sun Sentinel.

Mr. Roscioli said the boat had recently undergone repairs, including a complete paint job and repairs to the keel. He said the bill for the repairs as about $130,000 and was paid about a month before Mr. Madoff was arrested on fraud charges for running a $65 billion Ponzi scheme.

“I knew it was coming,” Mr. Roscioli said, referring to the yacht seizure. “It was just a matter of time.”

Mr. Golden said federal marshals received the sealed seizure warrant from Federal District Court for the Southern District of New York on March 23.

National Liquidators, the nation’s largest boat recovery and auction company based in Fort Lauderdale, will take possession of the boats, pending further orders from the federal court, Mr. Golden told The Sun Sentinel.

“Now starts the process of seizing assets,” Mr. Golden said.

Mr. Madoff is in jail awaiting sentencing in June after pleading guilty last month to charges of fraud. He faces a maximum sentence of 150 years behind bars.

Court documents show Mr. Madoff and his wife, Ruth, had $823 million in assets at the end of last year — including the boats.

The Wall Street Report: More On The AIG Woes

From the pages of Barron's

March 31, 2009
Web Site Details AIG’s ‘Gift’ To Banks, Backhand To Taxpayers
Posted by Bob O'Brien


If this is borne out, this one’s a game-changer. For the financial sector. For the government’s bailout plans. For the Administration’s leadership.

The website Seeking Alpha published an account Monday of a maneuver by American International Group (AIG) to: a) fraudulently capsize its balance sheet, in order to; b) force the governmen to pour more capital into the capsizing insurance giant, by; c) unwinding billions of dollars of credit transactions with banks that took the other side of those trades, in a way that; d) swelled those banks’ balance sheets with what was effectively a one-time gift, and; e) the Treasury knew about the scheme, and by; f) pumping the capital that AIG clamored for, gave its tacit approval.

(See the Seeking Alpha account here.)

Keep in mind, according to the Seeking Alpha account, this wasn’t a plan by AIG. This was an act: covert, at least from taxpayers - who, let’s be honest, aren’t going to understand the intricacies of sales of credit-linked notes - but overt, with the complicity of AIG executives, especially at its AIG-Financial Products unit, along with banks and Administration officials.
The way it would have come down: AIG knows it needs more capital from the Treasury. To heighten the urgency of its circumstances, AIG placed phone calls with the trading desks of banks that had taken the other side of its financial instruments, and asked for prices from the banks for the value of their whole portfolio. Not a single product, not an individual trade - the whole portfolio.

This is akin to going into a retail store and asking the proprietor, ”How much for this item?” Instead of him saying, ”How much is it worth to you?” the proprietor says, ”Make me an offer.” And then doesn’t haggle.

The result: AIG effectively transferred a huge chunk of its balance sheet to its banking counter-parties. The banks got a one-time shot-in-the-arm to their bottom line. An increasingly desperate AIG gets the capital it clamored for.

Makes it a little less suspicious, doesn’t it, that banks such as JPMorgan (JPM) and Bank of America (BAC) would have come out in early March and said, effectively, ”Hey, we had a pretty darn profitable first two months of the quarter” - inasmuch as the AIG gift-giving would have taken place in January and February - and then followed up Friday with the admissions, ”March, though … not so much.”
In fact, the XLF - the financial ETF - jumped more than 60% from its early-March lows to last week’s highs, but declined nearly 15% combined on Friday and Monday.

The Seeking Alpha author described the maneuver as a ”phenomenal scam,” adding that it had the full ”over-sight and blessing of the U.S. government,” since Timothy Geithner would have known the extent of AIG’s capital requirements, and why it was that its position had withered so dramatically in so short a timeframe. And without disclosure of the money taxpayers effectively lost in the initiative.

The Markets today continued its rally of the Bulls ! The Dow (INDU) finished on a postive note +86.90 (+ 1.16%) at 7608.92. As the Nasdaq (IXIC) +26.79 (+1.78%) to 1528.59.

This day also marks the end of the First Quarter. Tommorrow starts the 2nd Qtr.

The Wall Street Report: GM CEO Rick Wagoner Is Out

Chrysler's Viability Assessment[pdf]
GM's Viability Assessment[pdf]
Auto Restructuring Fact Sheet[pdf]
Warranty Commitment Program[pdf]

GM CEO Rick Wagoner Is Ousted By the United States Government

The fall of General Motors Chairman and Chief Executive Officer Rick Wagoner was unavoidable. There is no way President Obama could hand out more billions to a management with a practically unblemished record of failure.


Yes, it's certainly good news; the Wagoner management was never going to turn around General Motors (nyse: GM - news - people ). Never. After all, Wagoner has been chief executive since 2000 and head of North American auto operations six more years before that. His predecessor and mentor, Jack Smith, became chief in 1992. GM lost market share in the U.S. in all but a couple of those years. The losses in Wagoner's last four years topped $80 billion.


Worse, GM seemed adrift in this crisis. Its European operations--and they are key to saving GM--seem to be without serious direction. In the U.S. we hear mostly of program cancellations, and the Vice Chairman Robert Lutz, Please click here to read the rest of this story.

As expected, the Markets took a huge jump of a cliff, over the news of the firing General Motors (GM) CEO Rick Wagoner, and the banks financial situation. The Dow fell 254.16 (-3.27%) at 7522.02 ; and Nasdaq dropped 43.40 (-2.81%) to 1501.80 .