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.
Over the years there have been many steps in the finance professional supply chain that have resulted in a sort of “grade inflation” in finance. The CFA is not one of them.
