Daily Archives: February 14, 2009

The US Won’t Let GM (GM) Go Bankrupt

gm20jpeg20image1General Motors (GM) will not file Chapter 11. The government cannot afford to see a large portion of the job creation benefits of the stimulus package destroyed by having the big car company’s fate decided in court.

Depending on which forecasts is right, the bankruptcies of GM and Chrysler could cause the loss of between one 1 million and 2 million jobs at the car companies, their suppliers, and other firms that rely on Detroit for a large portion of their sales. A judge could void all or part of the UAW contracts with the companies, pushing tens of thousands of auto workers onto the streets.  If a significant portion of the auto industry’s suppliers disappear, Ford’s (F) future would also be threatened because it would not have access to parts. Read More »

Posted on: February 14, 2009 – 4:10 pm in Autos, Economy, ,

Carl Icahn Holdings Show No Immunity To Market (IEP, BIIB, AMLN, MOT, YHOO, WMB, APC, TWX, TWC, AMD, TELK, QRCP, LEA, TIN, JCP)

Billionaire and activist investor Carl Icahn has made some  large changes to his portfolio holdings.  He and Icahn Capital, L.P. have not been immune to the market sell-off as you have seen in his Icahn Enterprises, L.P. (NYSE: IEP) share performance.  Here we have commented on some of his larger stakes and larger changes or exits in positions.

Stock Tickers noted as IEP, BIIB, AMLN, MOT, YHOO, WMB, APC, TWX, TWC, AMD, TELK, QRCP, LEA, TIN, and JCP.
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Posted on: February 14, 2009 – 2:16 pm in Activist Investor, Insider Activity, Value Investing, , , , , , , , , , , , , , , ,

Can Wall St. Dodge Government Pay Limits?

r218533_8550253Now that the government has set a number of caps on Wall St. pay packages, the question is whether the financial firms can get around some of the rules. Certainly not. Congress has too much invested in showing the public that it can bring down the people who tend to get the most blame for the collapse of the of the credit system. Read More »

Posted on: February 14, 2009 – 12:34 pm in Banking, Management Change, Politics

Morgan Stanley (MS) And Citigroup (C) To Pay $3 Billion To Brokers? Not If Treasury Says “No”

cammonopoly_wideweb__430x325012Wall St. keeps coming up with new ways to waste money and upset Congress, the Administration, and the public.

Part of the argument made by large financial firms for paying out big big bonuses is that their best people, the ones who make their companies all the money, will leave. Read More »

Posted on: February 14, 2009 – 8:24 am in Banking, Politics, ,