Investment Blog April Archive

Dow makes biggest drop in 6 weeks

04/21/09 13:26

Bank of America may have posted better-than-expected quarterly results, but this was not enough to continue the six-week rally that the Dow had created. The rally lost stea, and stocks stumbled the largest in the last 7 weeks.

The Dow Jones industrial average tumbled 290 points or 3.6% mainly due to worries about the earnings of players from the financial sector.

Link: CNNMoney.com Market Report - Apr. 20, 2009

Goldman's share of AIG bailout money draws fire

Around $90 billion of AIG's bailout funds were handed out to various US and European banks, among which Goldman Sachs Group Inc. got the largest piece of the pie, amounting to around $12.9 billion. This has drawn the fire of many critics due to suspicions of favoritism and conflicts of interests. Then-Treasury Secretary Henry Paulson previously worked as chief executive of the company.

Goldman has always said that it does not need the bailout funds because it was "always fully collateralized and hedged."

So why did it take the AIG funds, anyway?

Link: Goldman's share of AIG bailout money draws fire | Reuters

 

Investor Dilemma with HSBC

Investors of HSBC are now facing a dilemma between a multi-billion dollar offer that is too difficult to resist and holding on to the company's stock, which is, by far, relatively more stable compared to its peers in the banking industry. In fact, it even managed to reap profits in 2008.

But with rights issue at hand, will they still pursue HSBC?

Link: BUY OR SELL-Will HSBC, the 'big elephant', dance again? | Industries | Financial Services & Real Estate | Reuters