The German government may end up with an indirect stake in Deutsche Bank through a renegotiation of the bank's takeover of Postbank, according to media reports that coincide with news that Deutsche lost €4.8 billion in the fourth quarter. Deutsche Bank CEO Josef Ackermann is reported to be renegotiating the takeover of Postbank. Deutsche Bank, Germany's biggest commercial bank, has renegotiated its planned takeover of retail bank Postbankin the wake of the financial crisis in a deal that will effectively give the German government a three percent stake in the fiercely private bank, German newspapers are reporting. The new agreement currently being worked out falls far short of the partial nationalization of rival Commerzbankannounced last week, under which the government is taking a direct stake of 25 percent and will have the power to block all major corporate decisions.
The German government may end up with an indirect stake in Deutsche Bank through a renegotiation of the bank's takeover of Postbank, according to media reports that coincide with news that Deutsche lost €4.8 billion in the fourth quarter.
Deutsche Bank CEO Josef Ackermann is reported to be renegotiating the takeover of Postbank.
Deutsche Bank, Germany's biggest commercial bank, has renegotiated its planned takeover of retail bank Postbankin the wake of the financial crisis in a deal that will effectively give the German government a three percent stake in the fiercely private bank, German newspapers are reporting.
The new agreement currently being worked out falls far short of the partial nationalization of rival Commerzbankannounced last week, under which the government is taking a direct stake of 25 percent and will have the power to block all major corporate decisions.
Germany's 50 billion euro stimulus package, approved by Chancellor Angela Merkel's cabinet on Tuesday, comes not a moment too soon. Can it restore calm in Europe's biggest economy or will it just push Germany over its deficit limit? German commentators are divided. Can the German government's stimulus plan put an end to the economic roller coaster ride? The global downturn has hit Germany especially hard, with growth declining by 50 percent in 2008. New orders and exports have shriveled up since last spring and businesses are hesitant to invest. Germany's Federal Statistical Office is estimating that the fourth-quarter alone saw a decline in gross domestic product of 1.5 to 2 percentage points. Strong measures were needed to address the economic freefall and, on Tuesday, Germany's governing "Grand Coalition" -- led by Chancellor Angela Merkel's conservative Christian Democrats and its junior partner, the left-leaning Social Democrats -- stepped up to the plate in order to ratify the biggest economic stimulus package seen in the country since World War II. The largest single chunk of the stimulus package -- €17.3 billion ($22.8 billion) earmarked for investments in kindergartens, schools, universities, streets and hospitals -- will mostly trickle through the construction industry. The next biggest euro-infusions will go towards cutting the monthly contributions of individuals and companies to Germany's state-backed public health insurance system (€9 billion) and a lowering of taxes (€8.9 billion).
Germany's 50 billion euro stimulus package, approved by Chancellor Angela Merkel's cabinet on Tuesday, comes not a moment too soon. Can it restore calm in Europe's biggest economy or will it just push Germany over its deficit limit? German commentators are divided.
Can the German government's stimulus plan put an end to the economic roller coaster ride?
The global downturn has hit Germany especially hard, with growth declining by 50 percent in 2008. New orders and exports have shriveled up since last spring and businesses are hesitant to invest. Germany's Federal Statistical Office is estimating that the fourth-quarter alone saw a decline in gross domestic product of 1.5 to 2 percentage points.
Strong measures were needed to address the economic freefall and, on Tuesday, Germany's governing "Grand Coalition" -- led by Chancellor Angela Merkel's conservative Christian Democrats and its junior partner, the left-leaning Social Democrats -- stepped up to the plate in order to ratify the biggest economic stimulus package seen in the country since World War II.
The largest single chunk of the stimulus package -- €17.3 billion ($22.8 billion) earmarked for investments in kindergartens, schools, universities, streets and hospitals -- will mostly trickle through the construction industry. The next biggest euro-infusions will go towards cutting the monthly contributions of individuals and companies to Germany's state-backed public health insurance system (€9 billion) and a lowering of taxes (€8.9 billion).
The Government today unveiled a multi-billion package of measures aimed at unblocking lending to small firms, including loan guarantees and a new enterprise fund to help companies struggling to access finance. Business Secretary Lord Mandelson said it was "crucial" that the Government acted now to provide help amid warnings that scores of smaller businesses were going bust every day. The measures include a £10 billion working capital scheme, securing up to £20 billion of short-term bank lending to companies with a turnover of up to £500 million. The enterprise fund will be worth £75 million, made up of £50 million from the Government and the rest from banks and will be available for small firms which urgently needed equity.
The Government today unveiled a multi-billion package of measures aimed at unblocking lending to small firms, including loan guarantees and a new enterprise fund to help companies struggling to access finance.
Business Secretary Lord Mandelson said it was "crucial" that the Government acted now to provide help amid warnings that scores of smaller businesses were going bust every day.
The measures include a £10 billion working capital scheme, securing up to £20 billion of short-term bank lending to companies with a turnover of up to £500 million.
The enterprise fund will be worth £75 million, made up of £50 million from the Government and the rest from banks and will be available for small firms which urgently needed equity.
But when Mandelson says it a chill runs down my spine. keep to the Fen Causeway
More than half the profits from some of the UK's biggest recent private equity deals were generated by high levels of debt, while less than a fifth came from operational improvements at the underlying companies.These are the findings, published on Wednesday, of the first annual report on the performance of private equity portfolio companies, compiled by the British Private Equity and Venture Capital Association (BVCA) in response to political pressure.The findings underline how private equity, which uses money from investors and loans from banks to buy companies, has been heavily reliant on debt to generate most of its profits from the biggest leveraged buy-outs in recent years.
These are the findings, published on Wednesday, of the first annual report on the performance of private equity portfolio companies, compiled by the British Private Equity and Venture Capital Association (BVCA) in response to political pressure.
The findings underline how private equity, which uses money from investors and loans from banks to buy companies, has been heavily reliant on debt to generate most of its profits from the biggest leveraged buy-outs in recent years.
Memory Lane | Bloomberg | 26 July 2007
First Rule of Fin: Debt is Good; Equity is Bad. Diversity is the key to economic and political evolution.
The bonuses weren't.
Investors pulled close to a net $150bn from hedge funds last month in spite of moves by dozens of funds to halt or suspend redemptions.The record December figure, equivalent to about 10 per cent of industry assets, extends the run of outflows to four consecutive months and has increased the total net outflow for 2008 to $200bn.The size of the once lucrative industry has almost halved in the past year, to $1,000bn under management, according to data from TrimTabs Investment Research and Barclay Hedge.Conrad Gann, chief operating officer of TrimTabs, said he foresaw more redemptions in the first quarter of 2009."Approximately two-thirds of industry revenues comes from performance fees and we estimate that 81 per cent of hedge funds were underwater [reported negative returns] last year... Managers have half the assets to work with and remaining assets need to fully recover prior losses before they can earn performance fees." Many hedge funds have halted redemptions. Paying out large sums when markets are falling would damage remaining investors severely, they say. To meet investors' demands for their money back, the funds would have to sell their most liquid assets, usually equities, regardless of which are the best investments, the funds say.
The record December figure, equivalent to about 10 per cent of industry assets, extends the run of outflows to four consecutive months and has increased the total net outflow for 2008 to $200bn.
The size of the once lucrative industry has almost halved in the past year, to $1,000bn under management, according to data from TrimTabs Investment Research and Barclay Hedge.
Conrad Gann, chief operating officer of TrimTabs, said he foresaw more redemptions in the first quarter of 2009.
"Approximately two-thirds of industry revenues comes from performance fees and we estimate that 81 per cent of hedge funds were underwater [reported negative returns] last year... Managers have half the assets to work with and remaining assets need to fully recover prior losses before they can earn performance fees."
Many hedge funds have halted redemptions. Paying out large sums when markets are falling would damage remaining investors severely, they say. To meet investors' demands for their money back, the funds would have to sell their most liquid assets, usually equities, regardless of which are the best investments, the funds say.
