On Wall Street

News

• Treasury Scrutinizing City National Aid?

  January 5, 2009

  City National Corp. is reportedly the subject of an investigation by the Treasury Department, which gave the Beverly Hills company $400 million of taxpayer funds last year.

• Florida's Tougher Annuity Fraud Laws Take Effect this Year

  January 5, 2009

  The New Year marks the beginning of tougher penalties for fraudulent annuity practices in Florida, as an effort to target agents using predatory annuity practices goes into law.

• Action by New York Regulators Helps MetLife—and Possibly Others

  January 5, 2009

  Thanks to an independent effort by New York insurance regulators, MetLife expects to reduce by about $1.8 billion, or more than 30%, the amount it must post to back up its variable annuity living benefit guarantees.

• Citi Keeps Hold of Top Spot

  January 5, 2009

  In a market that has seen nothing but change over the last 12 months, at least one thing is consistent: Citi remained the top underwriter in 2008.

• Hazarding Guesses: What '09 May Bring

  January 5, 2009

  Last year made all too clear just how perilous the business of prognosticating can be.

• Money Market Fund Assets Set Record

  January 5, 2009

  U.S. money market fund assets grew 0.6% during the week that ended Dec. 30, to a record $3.759 trillion.

• Viewpoint: Segment Targeting for a Wealth Advisory Identity

  January 5, 2009

  Wealth management advisors already were losing distinctiveness before 2008's Wall Street meltdown; most players offered a near-limitless array of investment products at increasingly similar fee structures.

• Lawmakers Want Bush to Suspend Minimum 2008 Distributions

  January 5, 2009

  A group of 61 members of Congress has written to President Bush asking him to suspend rules that require senior citizens to withdraw money from their severely depleted retirement accounts by the end of the year.

• IRS Revises Tuition Program Rules

  January 5, 2009

  The Internal Revenue Service has given Section 529 tuition programs the ability to change their investment strategies more frequently in response to the financial crisis.

• Treasury Responds to TARP Questions

  January 5, 2009

  The Treasury Department released a letter with responses to 10 questions posed by a recent report that criticized its management of the Troubled Asset Relief Program.

• NAPFA Speaks Out on Mary Schapiro and the SEC

  January 5, 2009

  NAPFA believes that President-Elect Obama's selection of Mary L. Schapiro for SEC commissioner is a curious pick that has promise for consumers.

• Citi Executive Trio to Forgo Bonuses

  January 2, 2009

  Citigroup, one of the largest recipients of rescue funding from the US Treasury's Troubled Asset Relief Program, has significantly slashed its bonus pool for 2008, leaving top executives to forgo their bonuses altogether.

• FDIC to Sell IndyMac for Nearly $14B

  January 2, 2009

  After more than a week of speculation, the Federal Deposit Insurance Corp. announced a $13.9 billion deal Friday to sell failed IndyMac Federal Bank to a private equity consortium led by the head of Dune Capital Management.

• Showing Clients You're Madoff-Proof—Within Limits

  January 2, 2009

  As federal authorities try to sort out the alleged Ponzi scheme of Bernard Madoff, the sheer magnitude of the case—and the far-reaching publicity it has generated—is creating a PR problem for the investment advisory industry.

• Three Acquirers Confront Difficult Integration

  January 2, 2009

  BofA, Wells Fargo and PNC will face challenges in new year on the integration front.

• December Advisor Confidence Up

  January 2, 2009

  Advisors' confidence in the economy and stock market improved in December, according to Rydex AdvisorBenchmarking.

• Stars May Have Aligned for a Major Reg Revamp

  January 2, 2009

  There have been dozens of attempts at regulatory restructuring over the past five decades, but this year may be the one where efforts finally make some headway.

• Big Mutual Funds Lose 60% in 2008

  January 2, 2009

  A 38% drop in the Standard & Poor's 500 index last year seems almost rosy compared to the abysmal performance of three big mutual funds that all lost more than 60%.

• Madoff Claim Forms Assured

  December 30, 2008

  Forms for making claims in the liquidation of the investment firm of alleged pyramid-scheme operator Bernard Madoff are scheduled to be mailed out no later than Jan. 9.

• Investors Approve Wells Fargo, PNC Deals

  December 26, 2008

  Shareholders ratified PNC Financial Services Group's deal to buy National City and Wells Fargo's deal for Wachovia.

• SEC May Investigate Reserve Fund

  December 26, 2008

  The Securities and Exchange Commission may bring enforcement action against the Reserve Management Company and its managers for possible violations of federal securities laws.

• FDIC Sale of IndyMac Imminent

  December 24, 2008

  The Federal Deposit Insurance Corp. is expected to announce the sale of IndyMac Bancorp. soon, possibly as early as Wednesday.

• Minimum IRA Distributions Still Required for 2008

  December 24, 2008

  The Internal Revenue Service and the Treasury Department have decided against changing a rule that requires retirees to withdraw a minimum distribution from their retirement savings accounts by the end of 2008.

• For Regionals, Cleanup Is Top Priority

  December 24, 2008

  The nation's biggest regional banking companies are likely to use a defensive strategy most of next year as they continue to absorb loan losses and chew through capital.

• OTS Official Suspended for IndyMac Backdating

  December 23, 2008

  The Office of Thrift Supervision has suspended a top official following allegations he allowed IndyMac Bank to backdate an infusion of capital shortly before the California thrift was closed by federal regulators.

• Tax Strategies Can Mitigate Madoff Losses

  December 23, 2008

  Edward Mendlowitz, a partner at accounting firm WithumSmith+Brown, outlined a series of tax strategies that could help offset the staggering losses incurred from investments with Bernard Madoff's scandal-scarred securities firm.

• Fortress Won't Pay A 4Q Dividend

  December 23, 2008

  Hedge fund Fortress Investment Group LLC won't pay a dividend in the fourth quarter of 2008, the second consecutive quarter it has not offered a payout to shareholders.

• Fed Places Restrictions on Three Banks

  December 23, 2008

  The Federal Reserve Board on Monday announced written agreements putting clamps on three community banks: Michigan Heritage Bank, Birthright Inc., and Cherokee Bancshares Inc.

• Lawmakers Urge Obama to Stop IRS Debt Collectors

  December 23, 2008

  Leaders of the House Ways and Means Committee wrote to President-elect Barack Obama asking him to end the Internal Revenue Service's private debt collection service.

• ICI Warns of Cuts to U.S. Retirement Plans

  December 22, 2008

  The chief executive of ICI told the National Press Club that the current economic crisis should not be used as an excuse for abandoning the 401(k) system.

• Standard & Poor's Downgrades 11 Top Financial Institutions

  December 22, 2008

  Standard & Poor's Friday downgraded 11 major U.S. and European financial institutions as they continue to face pressure from complex financial risks and the weakening economy.

• Paulson: A Memorable Term, Unclear Legacy

  December 22, 2008

  When he leaves office next month, Henry Paulson will conclude what has been one of the most influential terms of any Treasury secretary in recent memory.

• Treasury Unlikely to Ask Congress for Tarp Balance

  December 22, 2008

  The Bush administration is not expected to go back to Congress and request the remaining $350 billion authorized for the Troubled Asset Relief Program.

• Fed to Extend ABS Maturities

  December 22, 2008

  The Federal Reserve Board announced Friday that it plans to extend the maturities of loans it makes to holders of asset-backed securities to three years, from the one year that was initially envisioned.

• How Bad Regulation Created the Crisis

  December 22, 2008

  When the history of the current financial crisis is written, wrongheaded regulatory and accounting policies will go down as major villains.

• Genworth Financial Planning to Cut 13% of its Global Workforce

  December 22, 2008

  Struggling insurer Genworth Financial announced a plan to layoff approximately 1,000 employees worldwide as it grapples with the economic downturn.

• ETF Launches Sputtered in Tough 2008

  December 22, 2008

  This was a tough year to launch any new product, and exchange-traded funds were no exception.

• Favorable Reaction to Schapiro as Obama Pick for SEC

  December 19, 2008

  President-elect Barack Obama formally announced yesterday that he will nominate Mary Schapiro, the chief executive officer of the Financial Industry Regulatory Authority, to become chairman of the Securities and Exchange Commission.

• B of A Mulls Mortgage Hires with Surge in Volume Likely

  December 19, 2008

  The government's bold moves to lower mortgage rates and a spike in applications in recent weeks have Bank of America Corp. thinking seriously about bringing in reinforcements.

• More Households Buy Stocks, Bonds

  December 19, 2008

  The Investment Company Institute said that 54.5 million households had investments in equities or bonds through early 2008.

• Advisors Dominant as Preferred Guide

  December 19, 2008

  Fifty-five percent of individual investors think a financial advisor could help them, according to a survey by Opinion Research Corp. for TD Ameritrade Holding Corp.

• John Lawlor to Lead BoA's Muni Unit

  December 19, 2008

  Bank of America Corp. has chosen Merrill Lynch & Co's chairman of municipal markets John Lawlor to lead its municipal unit after it completes its acquisition of the bank.

• Markets Face New SEC Chief, Reform in '09

  December 19, 2008

  Next year is fraught with uncertainty for municipal and other securities markets as a new chairman takes over the helm of the Securities and Exchange Commission and financial services regulatory reform takes center stage in Washington.

• Investors Withdraw $2.94 Billion from Tax-Free Money Market Funds

  December 19, 2008

  As 2008 begins to wind down, holiday-minded investors withdrew $2.94 billion from tax-free money market funds for the week ending Dec. 15.

• Mary Schapiro Named to Lead Embattled SEC

  December 18, 2008

  President-elect Barack Obama named Mary L. Schapiro as his nominee to be the chairman of the Securities and Exchange Commission, which has come under a cloud because of the financial meltdown and other recent scandals.

• Mutual Fund Families Face 70% Decline

  December 18, 2008

  The U.S. could see a 70% decline in the number of mutual fund families over the next five years unless regulations are changed to put them on a more equal footing with hedge funds.

• 2009: A Boon for Bonds?

  December 18, 2008

  The coming year will mark a reversal for tax-exempt bonds in Washington, as Congress and the new administration focus on using them to help stimulate the economy rather than on restricting them to curb federal revenue losses.

• Madoff Drama Moves into NY Bankruptcy Court

  December 18, 2008

  Some of the massive fraud case involving Bernard Madoff will now play out in a New York bankruptcy court in lower Manhattan, where it will be overseen by the judge managing Lehman Brothers' behemoth bankruptcy, James Peck.

• FBI Sets Up Hotline for Victims of Madoff Scheme

  December 17, 2008

  The Federal Bureau of Investigation has set up a hotline for investors who believe they have fallen victim to Bernie Madoff's alleged $50 billion Ponzi scheme.

• SEC Designates Fixed Annuities as Securities

  December 17, 2008

  The SEC today approved the adoption of a new rule designating indexed annuities as securities.