What's Important in the Financial World (8/17/2012)

Yahoo! Seeks COO

Yahoo! Inc. (NASDAQ: YHOO) has begun the search for a chief operating officer who would be number two to new CEO Marissa Mayer. AllThingsD reports that the person would need turnaround and financial experience. Yahoo! has been turning itself around for years, so it may as well get someone who can do the job adroitly. The tech news site reports:

In any case, those candidates contacted recently have been told that the company is looking for a top exec with a focus on restructuring and also finance. Presumably, in this scenario, Mayer will focus on product and innovation — her strengths — while the COO would perhaps be responsible for making the trains run on time on the business side of Yahoo. A plethora of employees who have met with her have stressed her intense interest in products, which is mirrored by much less attention to more mundane business issues.

Finland Backs EU

Finland, which has not always offered whole-hearted support to the euro, says it is fully committed to the union. Alex Stubb, the country’s minister for European affairs and foreign trade, told CNBC that his nation is 100% behind the decade old alliance. Recent comments by other government officials from the country might have led people to think otherwise. The news organization reports:

“I think the alternative course, of not helping out, not giving loans or guarantees, would be way too high,” Stubb said.

“There is a lack of trust among members states right now, a lack of confidence. We need to rebuild that trust and in order to rebuild that trust,” he said.

“We need tighter rules for the future and I think the collateral requirements, which of course are a footnote in this whole game, is part and parcel of it.”

Spain’s Bad Loans

Bad loans held by Spain’s banks rose in June to reach record levels. The news might have been expected because so many of these loans are mortgages and Spain’s real estate sector continues to implode. Reuters reports:

In the same month that Spain sought a European bailout of up to 100 billion euros for its struggling lenders, their non-performing loans rose to 9.42 percent of outstanding portfolios from 8.95 percent in May, central bank data showed on Friday.

Loans that fell into arrears increased by 8.4 billion euros ($1.03 billion) to 164.4 billion euros.

Douglas A. McIntyre