| Thomson Focus: Pension funds seen posting huge losses from subprime investments
NEW YORK (Thomson Financial) - Over the past several years, U.S. pension funds have been among the top investors in the mortgage-backed securities (MBS) and collateralized debt obligation (CDO) markets, along with their real-money partners, insurance companies and money managers. After years of funnelling money into MBS and CDOs -- portfolios of mortgages bundled and sold as debt securities -- the total size of pension funds' securitization holdings are massive. With thousands of pension funds invested in housing debt either directly or through hedge funds, the figure could add up to tremendous losses for many of the nation's employees. Thomas Martin, president of the Homeowners Consumer Center, a Washington, D.C.-based consumer advocacy group, estimates that pension funds will take a $1 trillion hit from the devalued securities.
China's trade, finance, politics revolution: entrepreneurship, law, family business, jobs
Is booming Chinese economy and finance sustainable? What is behind rising China? How are 700,000 international companies performing inside China? Are the Chinese going to dominate world finance, trade, outsourcing, investment, labor, politics? Talk to leading thinker George Zhibin Gu. essential business and investment book : China and the new world order, by George Zhibin Gu Reviewed by China Venture News, http://www.chinaventurenews.com The subject of Chinese entrepreneurship continues to resonate with global investors and especially the venture capital markets. George Zhibin Gu, author, business consultant and investment banker in his latest book, China and the New World Order, brilliantly reflects on how entrepreneurship, globalization and the borderless communities are reshaping a new China.
Bankers fail to sell Chrysler debt loans
Chrysler LLC's bankers failed to sell $4 billion of loans that backed the purchase of the automaker by Cerberus Capital Management LP, according to investors briefed on the decision. JPMorgan Chase & Co. notified the potential buyers Tuesday, said the investors, who declined to be named because terms weren't public. The failure marks the second time buyers have refused the debt from the banks. Chrysler's lenders were stuck with $10 billion of loans when they were unable to find investors to help finance the acquisition in August of 80.1 percent of Auburn Hills-based Chrysler from Daimler AG of Stuttgart, Germany. .
More Business
Calpine chief executive Robert May can expect a $10.9-million stock incentive for guiding the struggling San Jose-based power producer out of the largest U.S. bankruptcy of 2005, according to papers filed in U.S. Bankruptcy Court in New York. The "emergence" payments to May, other Calpine executives and employees is subject to the court's approval of a bankruptcy reorganization plan to satisfy creditors. Calpine is seeking approval of the plan Nov. 27. Calpine also plans to reward Gregory Doody, vice president and general council, with a $2 million stock award when the company emerges from Chapter 11 bankruptcy. Another $66.6 million will be distributed to 2,200 eligible participants, including all full-time workers, the company said. Calpine's plan values the reorganized business at about $20.3 billion.
Quick Money Sunflashes
FOREIGN BUSINESS POSITIVE: REPORT Foreign-controlled businesses operating in Canada sink large investments into innovation, advanced technology and skilled labour and make valuable contributions to the domestic economy, Statistics Canada reported yesterday. The report also said it's a myth that foreign takeovers lead to the gutting of head-office employment here. BANKS HIT BY U.S. WOES Two of Canada's biggest banks took big charges yesterday reflecting troubles in the U.S. mortgage business and corporate credit markets, but also booked gains from their stake in the restructuring Visa credit card company. .
Samsung cuts 1,630 jobs, says report
SAN JOSE, Calif. — South Korea's Samsung Electronics Co. Ltd. has cut more than 1,600 jobs since March amid a major restructuring effort, according to a report from the Korea Times. In August, Samsung announced a series of restructuring measures to cut costs and otherwise shakeup the complacent company. They included voluntary retirement programs and a corporate reorganization, according to the report. .
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