Golden Fibonacci

On October 9 last year this blog brought you a story about failing banks. It read: “While governments and financial authorities try to convince the public they should trust the banks to prevent a bank run, the banks themselves don’t trust each other at all, that’s why the financial system freezes up globally. If other banks don’t trust my bank, is it a good idea to believe the government I can trust my bank?”

Only a few days ago it was revealed that the banks in the UK were just hours away from a complete meltdown. City Minister Paul Myners disclosed that last year on October 10, the country was “very close” to a complete banking collapse. Major depositors attempted to withdraw their money at the same time, the Treasury was considering to shut the doors of the banks to all customers, terminate electronic transfers and even block ATM cash withdrawals to prevent a bank run. Imagine the panic that would have caused! Frantic behind-the-scenes efforts averted the meltdown, the Bank of England contacted major creditors around the world begging them not to withdraw their funds. Ream more »

By Bob Van Voris and Patricia Hurtado

Jan. 27 (Bloomberg) — Nicholas Cosmo, charged in an alleged $370 million Ponzi scheme, is being held in custody pending a bail hearing on Jan. 29 after U.S. prosecutors said he’s a “flight risk” and an “economic risk to the community.”

Prosecutors claim Cosmo, 37, owner of Agape World Inc. and Agape Merchant Advance LLC, swindled at least 1,500 investors and used some of the money to pay for limousines, fund a baseball league and pay off a restitution order from an earlier fraud conviction.

“The FBI, U.S. Postal Inspector and the U.S. Attorney’s office have been flooded with calls since last week,” Assistant U.S. Attorney Grace Cucchissi told U.S. Magistrate Judge E. Thomas Boyle in a hearing today in U.S. District Court in Central Islip, New York. Ream more »

Jan. 27 (Bloomberg) — The yen weakened for a second day against the dollar and the euro as gains in stocks reduced demand for the currency as a haven from the financial crisis.

Japan’s currency also fell against the Australian dollar and the Brazilian real as measures of bond risk declined after Barclays Plc said it doesn’t need to raise further capital because revenue increased last year. The British pound and the euro strengthened as speculation eased that losses will widen at European banks.

“We’re seeing an improvement in sentiment because it appears Barclays has avoided a crisis,” said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest publicly listed lender. “People will trim their bets on declines in the euro and the pound. There’s a bias for the yen to weaken.”

The yen declined to 89.48 against the dollar as of 3:02 p.m. in Tokyo from 89.10 late yesterday in New York. Japan’s currency fell to 118.36 per euro from 117.51. The euro climbed to $1.3226 from $1.3189. Ream more »

China menegaskan pihaknya tak pernah melakukan manipulasi mata uang, sebagaimana dituduhkan calon menteri keuangan AS, Timothy Geithner.

“Pemerintah China tidak pernah menerapkan apa yang disebut manipulasi mata uang untuk mencari untung dalam perdagangan internasionalnya,” tegas kementerian perdagangan China dalam pernyataannya seperti dikutip dari AFP, Sabtu (24/1/2009).

“Kritikan langsung yang tidak substansial terhadap isu mata uang China hanya akan membantu proteksionisme AS dan tidak akan membantu mencari solusi yang nyata atas isu ini,” demikian pernyataan dari China.

Penegasan itu disampaikan untuk menepis pernyataan calon menteri keuangan AS, Timothy Geithner soal mata uang China. Geithner dalam jawaban tertulis pemilihan dirinya menjadi menteri keuangan menyatakan bahwa Presiden AS Barack Obama yakin China telah memanipulasi mata uangnya. Obama berencana melakukan diplomasi secara agresif untuk memastikan China mengubah aturan mata uangnya. Ream more »

Northstar Pacific Partners melalui Argo Volantis Pte Ltd kini menjadi pemegang saham baru di PT Sumber Alfaria Trijaya Tbk dengan porsi kepemilikan 29,52% karena konversi utang.

PT Cakrawala Mulia Prima, pemegang saham lama Sumber Alfaria, menyatakan telah mengalihkan sebanyak 1,01 miliar saham yang mewakili 29,52% dari jumlah saham yang dikeluarkan Sumber Alfaria kepada Argo Volantis pada 15 Januari.

“Tujuan dari transaksi ini adalah untuk melaksanakan konversi exchangeable note [obligasi tukar] yang diterbitkan oleh Cakrawala Mulia kepada Argo dengan nilai pokok yang tersisa sejumlah Rp210 miliar,” tutur Direktur Cakrawala Mulia Christian Sugiarto dalam keterbukaan informasinya kepada Bursa Efek Indonesia, kemarin. Ream more »

PT Lippo Karawaci Tbk, pengembang superblok Kemang Village, menggandeng enam broker properti untuk menampung penjualan apartemen di pasar sekunder.

Direktur Lippo Karawaci Jopy Rusli mengatakan banyak konsumen dari kalangan konsumen akhir yang berminat membeli unit apartemen tetapi kehabisan stok.

Mereka akhirnya membeli unit di pasar sekunder yang sudah dikuasai para investor.

“Persediaan unit yang berlokasi strategis, mempunyai pemandangan bagus sudah habis, padahal masih banyak konsumen penghuni yang mencari, apalagi menjelang serah terima,” katanya di Jakarta, hari ini. Ream more »

By Rich Miller and Robert Schmidt

Jan. 21 (Bloomberg) — President Barack Obama’s economic team is pushing to complete a bank-rescue plan that can be twinned with the $825 billion stimulus package being negotiated with Congress to alleviate the rapidly deepening financial crisis.

While full details of the rescue haven’t been settled yet, people familiar with the deliberations said the package is likely to include a $50 billion-plus program to stem foreclosures, fresh injections of capital into the banks and steps to deal with toxic assets clogging lenders’ balance sheets.

Ream more »

By Robert Schmidt and Rich Miller

Jan. 18 (Bloomberg) — President-elect Barack Obama is likely to back a financial-rescue effort that channels capital to banks and deals with troubled assets clogging balance sheets, according to people familiar with the matter.

Obama’s team will also use part of the $350 billion remaining from the Troubled Asset Relief Program to help stem foreclosures and assist municipalities that are having trouble borrowing, the people said. The Federal Reserve and Federal Deposit Insurance Corp. are advocating a government-backed “bad” or “aggregator” bank to acquire hundreds of billions of dollars of troubled securities now held by lenders.

Last week’s sell-off in financial stocks and the deepening recession put pressure on Treasury Secretary-designate Timothy Geithner and Obama’s economics chief Lawrence Summers to unveil a comprehensive program soon after Obama is sworn in on Jan. 20. Without a radical new effort, soaring credit losses could prolong and deepen a recession that is now more than a year old. Ream more »

Jan. 16 (Bloomberg) — European Central Bank President Jean- Claude Trichet said while the bank is likely to cut interest rates further, it will not reduce its benchmark to zero.

“To the question is 2 percent the lowest level we will attain, I say no,” Trichet told Japanese broadcaster NHK in an interview broadcast earlier today. “If you ask me the question will you go to zero, I would say no, we won’t.”

The ECB lowered its key lending rate by half a percentage point to 2 percent yesterday, matching a record low. Trichet signaled the Frankfurt-based ECB may cut rates again at its March meeting as the economy slides into a deeper recession than the bank had predicted. Ream more »

By Jeff Green

Jan. 15 (Bloomberg) — General Motors Corp. cut its estimate for 2009 U.S. industrywide auto sales to 10.5 million units, a total that would be the lowest in 27 years, as a worsening economy crimps demand.

The new outlook replaces a projected range of 10.5 million to 12 million vehicles, the biggest U.S. automaker said today at a Deutsche Bank AG conference in Detroit. Global sales will fall to 57.5 million autos from 67.1 million last year, GM said.

GM is using the sales estimates to craft a proposal to cut costs, revamp operations and show it can repay $13.4 billion in emergency Treasury Department loans. A weakening economy may force GM to seek additional government funding after completing the viability plan due March 31. Ream more »