GM chief running out of time and options

If Rick Wagoner, chairman and chief executive of General Motors, fails to get a merger deal, he could go down in history as the executive who presided over GM’s demise. (Rick Wilking/Reuters)DETROIT: Rick Wagoner is running short of time and options to save General Motors and salvage his legacy as the leader of the [...] continue reading world news

Run on Russian bank heightens fears

Globex on Wednesday banned depositors from withdrawing their money as confidence in the Russian banking system began to show signs of evaporating.Globex, a mid-sized retail bank with assets of $4bn (€2.95bn, £2.32bn), is the first Russian bank to experience a run on deposits during the crisis. It lost 13 per cent of its deposits last [...] continue reading world news

Banks borrow record $437.5 billion per day from Fed

A trader counts his money on the floor of the New York Stock Exchange October 7, 2008. REUTERS/Brendan McDermidNEW YORK (Reuters) - Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data [...] continue reading world news

Financial crisis: Christine Lagarde warned Hank Paulson to bail out Lehman Brothers

Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he had to bail out US investment bank Lehman Brothers or face global financial collapse, but her advice went unheeded.Christine Lagarde, the French finance minister, warned her US counterpart Hank Paulson that he must bail out US investment bank Lehman Brothers or [...] continue reading world news

Citigroup’s $13bn writedown raises fears of a crisis beyond Wall Street

America’s leading banks continued to announce hefty losses yesterday as Citigroup reported a further writedown of more than $13 billion (£7.5 billion) for the third quarter and Merrill Lynch took another $9.5 billion hit.The latest writedowns brought Citigroup’s total hit from the credit crunch to about $60 billion and left it with an overall group [...] continue reading world news

Gradient close to collapse as hedge funds feel heat

One of London’s best known hedge funds, Gradient Capital Partners, is on the brink of collapse after dropping nearly 42pc in value last month. The City-based European equity fund, which had $2.5bn under management at its peak, is now down over 63pc so far this year, leaving investors fearful it will be forced to close.The [...] continue reading world news

Probe of Lehman collapse escalated: NYT

NEW YORK (Reuters) - Prosecutors have stepped up the investigation into the collapse of Lehman Brothers, with at least a dozen subpoenas being issued including one to the investment bank’s chief executive, Richard Fuld, The New York Times reported on Saturday.Citing people close to the probe who requested anonymity, the Times said federal prosecutors in [...] continue reading world news

Lahde quits hedge funds, thanking “stupid” traders for making him rich.

NEW YORK, Oct 17 (Reuters) - Andrew Lahde, the hedge fund founder who shot to fame with his small fund that soared 870 percent last year on bets against U.S. subprime home loans, has called it quits, thanking “stupid” traders for making him rich.In a biting, but humorous letter to investors posted on the website [...] continue reading world news

Hedge Fund Manager: Goodbye and F—- You

From the Scorched Earth Files:Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.Last month, he did the unthinkable — he shut things down, claiming dealing with his bank counterparties had become too risky. Today, Lahde [...] continue reading world news