ShareThe sale to Canadian auto parts maker Magna International and its partner, Russian lender Sberbank is off. With bankruptcy now behind it, General Motors now feels confident it can proceed with Opel under the GM umbrella.
From the GM press release:
Given an improving business environment for GM over the past few months, and the importance of [...]

ShareI had a feeling there was an energy component to the Berkshire Hathaway decision to buy Burlington Northern Santa Fe. And now comes the evidence via coal, a major freight on BNSF’s tracks. But, there is a lot more to this acquisition than just hauling coal.
Warren Buffett has been increasing his energy plays in recent [...]

ShareWarren Buffett’s Berkshire Hathaway has been making some very significant moves of late.  Selling of Moody’s shares is one.  But, the latest is sure to cause a stir amongst Buffett watchers because he is definitely making some “bets” on economic recovery with his purchase of Burlington Northern Santa Fe (BNI). It is unclear as yet [...]

ShareBelow is a good video analysis by Jess Bravin of the Wall Street Journal on the BofA-Merrill Lynch saga.  Bravin discusses the recent rejection by Judge Jed Rakoff of the out-of-court settlement between the SEC and Bank of America (BAC) in which BofA was to pay a miniscule $33 million fine.
Rakoff’s decision to scupper this [...]

ShareWith the Federal Deposit Insurance Corporation (FDIC) about to release its latest figures for banks it regulates and its own financial condition, now is a good time to review its role in this crisis. This post is about the FDIC’s role in the credit crisis, how it seizes banks and why I believe this matters.
In [...]

ShareSpain has been a laggard in the search for improving economic fundamentals.  The news coming out of Spain has been dreadful from employment to house prices to mortgages and banking. But the first ray of hope appeared yesterday when it was reported that late payments on loans granted by banks, savings banks and cooperatives fell [...]

ShareBank of America’s story in the BofA-Merrill saga has always sounded dubious at best.  Ken Lewis has always claimed he was doing what was right by shareholders and America, that Gentle Ben and Hammering Hank coerced him into the Merrill deal, that Merrill’s CEO John Thain was not completely above board.
All of this should be [...]

ShareYou have probably heard the stories about China National Offshore Oil Company (CNOOC) bidding for Repsol YP’F’s Argentine assets in a quest for more natural resources for China. Well, apparently, the Chinese want a lot more than just Argentina; they want the whole of Repsol’s Latin American asset base.
The Chinese have been buying up [...]

ShareCongressman Darrell Issa (R-CA) claims to have evidence supporting Ken Lewis’ original contention that he as threatened by government officials for contemplating pulling out of the BofA-Merrill deal.  Let’s review.  Two weeks ago, Lewis pointed the finger at Paulson and Bernanke in testimony before Congress (see my post).  This came after claims of government coercion [...]

ShareDuring the Great Depression, it was the Smoot-Hawley Tariff Act, which in hindsight is blamed for triggering a wave of protectionist actions globally.  Protectionism was a major contributor to the downward spiral that created depression.  So, have we avoided this kind of outcome this go around?
At this juncture, it is pretty unclear we have. Simmering [...]