Wells Fargo has big loss as it adds to reserves (Reuters)
"The quarterly loss at San Francisco-based Wells Fargo, not including Wachovia, was $2.55 billion, or 79 cents per share, compared with a profit of $1.36 billion, or 41 cents, a year earlier. Revenue fell 4 percent to $9.82 billion.
The company also said the former Wachovia Corp, which it bought on December 31, lost $11.17 billion in the fourth quarter, largely to boost loan loss reserves as well as investment writedowns. Before Wells Fargo outbid Citigroup Inc to take control, Wachovia nearly collapsed as losses soared from troubled mortgages."
Boeing Posts Quarterly Loss on Strike Impact and Charges (PRNewswire)
Fourth-quarter net income declined to a loss of $56 million, or $0.08 per share, reflecting the now-settled machinists' strike (EPS impact estimated at $1.09 per share), a charge related to the 747 ($0.61 per share) and a litigation-related reserve ($0.09 per share).Revenues for the quarter declined 27 percent to $12.7 billion, due primarily to the effects of the strike which reduced commercial airplane deliveries by approximately 70 units and revenues by an estimated $4.3 billion.
For the full year of 2008, net income fell 34 percent to $2.7 billion, EPS was $3.71 per share, and revenue fell 8 percent to $60.9 billion. Full-year results were impacted by the strike, the 747 charge, the litigation-related reserve, and higher costs for AEW&C announced in the second quarter, which together reduced full-year EPS by an estimated $2.56 per share. This was partially offset by lower pension and deferred compensation expenses.
"The progress we made in many areas of Boeing during 2008 was outweighed by the impact of the strike and our performance on some key development programs," said Chairman, President, and Chief Executive Officer Jim McNerney. "Our imperative going forward is improving execution where it needs to be improved, maintaining strong performance across all our production programs, and preserving our financial strength to grow in these challenging economic times."
Tax-evader Not So Popular In Davos (Bloomberg)
Meouch: Boy-toy Treasury Secretary Tim Geithner's Yuan call was characterized as "economic suicide" by Morgan Stanley's Asia Chairman Stephen Roach, before a panel in Davos today. "I've never seen an economy in recession voluntarily raise their currency," Roach added. "It's horrible advice."
Eating Out, With T. Boone Pickens (Dallas Morning News)
Want some of that shit? TBP is auctioning himself off on eBay. Bidding starts Monday, at $100,000, and last 'til February 12. Good luck to all.
Behind Citi's Decision to Scrap New Jet Plans (FT)
Mentioned yesterday but confirmed: it was those meddling bastards over at Tim Geithner's Treasury that guilted Citi into saying it has "no plans to take possession" of the Dassault Falcon 7X.
Stimulus Bill Near $900 Billion (WSJ)
Expected House vote today. Includes: "a $365.6 billion spending measure for such brick-and-mortar projects as highways and bridges; a $180 billion measure to boost jobless benefits and Medicaid, among other things; and a $275 billion tax-relief package, which includes a plan to give a $500 payroll tax holiday to all workers, a proposal from Mr. Obama's presidential campaign." Also: " 'I would love to not have to spend this money,' Mr. Obama said, according to individuals familiar with the president's meetings with Republicans."
Stephen Schwarzman's Maverick Proposal (DBook)
Crab-hands wants more leverage.
Posted by NAS Keflavik boi , Jan 28, 2009 8:03AM
Tax-dodge Timmay looks like he's squeezing a small but pert boobie.
Posted by guest , Jan 28, 2009 8:06AM
'I would love to not have to spend this money,' Mr. Obama said.
Haha, what a joke - he would like nothing less than making as many Americans dependent on the gov't so the Sociacrats can hold power for as long as possible. What better way than to give the leeches of our society the working peoples' hard earned tax money..ugh.
Posted by shalimar , Jan 28, 2009 8:28AM
$(294)m net charge-offs related to Madoff fraud
- part of WFC's big bath
http://en.wikipedia.org/wiki/Big_bath
Posted by cy , Jan 28, 2009 8:35AM
Geithner's out of his mind. If china doesn't have a dump truck full of dollars to plow into the US treasury market, how is the government possibly going to finance its vomit-inducing spending programs? If china is willing to send us manufactured goods in return for slips of paper (which I won't call worthless, but definately soon to be worth a lot less), why would we want that to stop?
Posted by guest , Jan 28, 2009 8:37AM
the poor ladies who have to deal with this recession
http://www.nytimes.com/2009/01/28/nyregion/28daba.html?ref=business&pagewanted=all
Posted by guest , Jan 28, 2009 8:38AM
Tim Geithner will make a habit of saying the exact wrong thing, countless times. Expect it.
Posted by cy , Jan 28, 2009 8:46AM
5-
Is that girl on the right side of the picture the tranny from the real world?
Posted by guest , Jan 28, 2009 8:50AM
@2 - it's a good thing Republicans have been fiscally conservative. I think it's safe to assume that they'll be voting against this, totally consistent with R voting records during the Bush years.
Posted by guest , Jan 28, 2009 8:50AM
CFA results out
Got a B-
Posted by guest , Jan 28, 2009 8:53AM
Why would I want to pay $100,000 to have lunch with a failed hedge fund manager?
Hubris I tells ya.
Posted by guest , Jan 28, 2009 8:54AM
@4,6- You're wrong; Geithner is exactly right. China's currency policy contributed to this global economic meltdown just as much as CDOs. The US actually is in a relatively strong position here compared to China. The US needs foreign inflows less than ever to finance the government bond market as domestic savings rates are going through the roof. If foreign inflows are so important why is the 10yr at 2.6 when the US trade deficit is shrinking and petrodollar flows have collapsed? I could go on but given commenters' usual appreciation for intelligent conversation I'll save myself the keystrokes.
- Timmay!
Posted by guest , Jan 28, 2009 8:54AM
@5
I really thought that article was a joke!These hags should jump off empire state
Posted by guest , Jan 28, 2009 9:01AM
I know there are some serious analysts in here (amidst all the fooling around that happens here).
I am starting the business of exporting of T-shirts to USA.
Here is what I am trying to find out.
Lets say a GAP T-shirt on the stores display $20.00
a. What hair-cut (yes, I was a fin analyst at TK) does the retailer need from the supplier ?
(i hear they can go upto 50%.. i.e the retailer will only buy it from the supplier for $10?)
b. What are the other costs involved in the distribution channel ?
c. What should be the ideal factory COST (manufacturing ) for our $20 T-Shirt?
pls help with your thoughts and answers
Posted by guest , Jan 28, 2009 9:05AM
@12
"Another, though, seemed chagrined, after her boyfriend told her to “grow up” and stop “complaining about vacations and dinner” since he had to “fire 20 people by the end of the week.”
Maybe it was Wideclops doing the whining about lack of vacations.
You bitches can all burn in hell while wearing your "fuck me boots".
Posted by guest , Jan 28, 2009 9:06AM
@5 that article deserves to be highlighted on the main stage.
oh my christ.
Posted by guest , Jan 28, 2009 9:06AM
no mention of todays birthday news?
Posted by guest , Jan 28, 2009 9:11AM
hey, i thought today was the day Gasbags said Ken Lewis buys his ticket to the Pink Slip Party:
http://online.wsj.com/article/SB123311808751923385.html?mod=testMod
"Lewis Seems to Have BofA Board Support"
Great Gaspy, focus on yer birthday party and leave the lay offs to someone else!
Happy "in your forties" Birthday, Gasbags! Getoudda here! We love you!
Let's all form a birthday spanking tunnel outside San Pietro's tunnel for him to crawl through.
Posted by guest , Jan 28, 2009 9:17AM
Bess, when you were blogging the exclusive CNBC Thain interview, were you really blogging or just copy and pasting from the PR release?
http://www.nypost.com/seven/01282009/gossip/pagesix/maria_had_the_in_on_thain_152372.htm
Posted by guest , Jan 28, 2009 9:18AM
Pass me the leverage, bitches,
PEB
Posted by Bess Levin , Jan 28, 2009 9:19AM
halfwit@18- that wasn't a live-blog, that was a transcript of the interview.
Posted by guest , Jan 28, 2009 9:30AM
@bess. meow culpa on word choice. the point is not to question your gravitas. it is to call attention to how the general public might have been played by sunshine sachs.
Posted by guest , Jan 28, 2009 9:31AM
@5--where are the lycans when you need them?
Posted by guest , Jan 28, 2009 9:37AM
@18 - this is what happens when you wonder off about.com... stay there buddy, it's safe and, hm, basic.
Posted by guest , Jan 28, 2009 9:40AM
@18 - this is what happens when you wonder off about.com... stay there buddy, it's safe and, hm, basic.
Jack
Posted by cy , Jan 28, 2009 9:47AM
11-
You've made a case for why foreign inflows should be less important going foward (I agree that it makes sense US savings should go up), but not as to how china's weak-RMB policy contributed to the "global crisis." If americans want to lock in some negative real returns by buying treasuries than god bless, but how does china giving us more than we give back hurt us?
Posted by guest , Jan 28, 2009 9:49AM
What this world needs is more succulent, juicy crabs.
Posted by guest , Jan 28, 2009 9:56AM
does gasbags have the same pr agent as the gambino family?
Posted by guest , Jan 28, 2009 10:25AM
CFA level one pass rate for Dec 2008 -- 35% =yahtzee!
-Back seat trader
Posted by AJ , Jan 28, 2009 10:27AM
@5 There are more bankers than genuinely attractive girls which leads to that trash thinking that they are hot and deserve to be pampered... although the one on the far left might make the cut
@23,24 if you're going to attack someone for being an idiot, spell "wander" correctly dumbass
Posted by guest , Jan 28, 2009 11:24AM
The Dating a Banker blog is even better.
http://dabagirls.com/
Posted by guest , Jan 28, 2009 11:39AM
9 Congrats. I think. Since when do they give grades? I finished the program 2003 and remember that they told you in which sections you were above or below average, but overall it was pass fail. Whats with this B-?
Posted by guest , Jan 28, 2009 1:22PM
11 here. China's currency policy massively manipulated the global economy by distorting economic incentives globally, creating enormous imbalances (the largest of which was excess production/savings in China, excess production/consumption in the US). This contributed to a large amount of unsustainable behavior all over the world. The mercantalist weak currency policies of China, among many others, make those countries just as culpable as the US. Had there not been the asset bubbles in the US, the export driven economic model those economies persued would have meet a lack of foreign demand. But the international system was forced into a dangerous pro-cyclicality that is now collapsing. People focus on this being caused by "evil" wall street, but the real cause of this was capital being so cheap. A big part of this is that there were massive flows from foreign central banks into the treasury market starting with the Asia crisis. This artificially depressed the return you could get from treasuries, which offered near zero real rates. This incentivized/forced private investors/pension funds etc into riskier assets in a hunt for returns. Hence a enormous credit expansion that ended with the credit crunch.