US abandons plan to buy toxic assets Nov 13, 2008
Paulson's original plan was for the US government to buy up the bad debts, allowing cash-strapped banks to again make the consumer loans that are essential to driving the economy. But on Wednesday he said the money earmarked to buy those debts would be better spent injecting cash directly into struggling banks and shoring up the market for consumer debt such as from credit cards and car loans. (Yahoo! Asia News)
Mizuho to Sell $3.2 Billion of Preferred Shares in Japan to Boost Capital Nov 13, 2008
2 billion in Merrill Lynch & Co. this year, is tapping investors after rising bad debts and losses on equity holdings caused Japan's five largest banks to slash profit forecasts. Other lenders may follow suit after the tumbled 24 percent in October, the worst month on record, eroding their capital. (Bloomberg -- Japan)
BluePhoenix Solutions Reports Financial Results for Q3 2008 Nov 12, 2008
3 million, provision for bad debts of $0 ... 6 million related to bad debts and the remaining amount is attributed to decrease in gross margin as a result of revenue mix and additional costs related to projects. (PR Newswire)
Water district expenses show $138,000 over budget Nov 12, 2008
between the payors (Medicare, Medicaid, Insurance) cutting our charges + charity write offs+bad debts, we collect approximately 50% of our charges ... Payroll is the largest expense our hospital incurs, aside from charity, bad debts, Medicare and Medicaid payment shortfalls and contractual adjustments to insurance companies ... With regard to Grayson County specifically, if everyone paid their hospital bills and we could reduce our bad debts, there would be more than enough funds to eliminate... (Leitchfield Grayson County, KY)
Yo, ho, ho, it's the capital raiders Nov 12, 2008
That doesn't appear to be the case at the National Australia Bank, which this week tapped punters for $3 billion, primarily to shore up its tier 1 capital reserves, which have been depleted by bad debts and the bank's exposure to the US subprime problems. The 10 per cent discount to market price struck a sour note with small investors who, unlike institutions, were restricted in the number of new shares they could buy. (Sydney Morning Herald -- Business)
Founder bows out from troubled City Pacific Nov 12, 2008
But he said this figure did not include the hundreds of millions of bad debts the FMF could still be forced to write down. CP1 also announced the resignation of Mr Sullivan. (Sydney Morning Herald -- Business)
Should We Be Worried About Our Real Estate Investments? Nov 11, 2008
The Federal Government wants to create a seven-hundred billion pool of funds to buy bad debts. FDIC coverage is limited to $100,000, per tax payer ID number per Bank. (RealtyTimes)
4 factors to value a stock amid credit crunch Nov 11, 2008
Increasing trends in either of these measures can be cause for concern, indicating the company may eventually have to write off bad debts. 4. (AZCentral -- Business)
Switch to NAB hits Commonwealth Nov 11, 2008
The sector is now targeting a minimum of 8 per cent for Tier One capital given the increasing bad debts they are facing. The Commonwealth recently asked the market for $2 billion to finance its planned acquisition of BankWest but observers believe it needs another $1 billion to get its capital ratio above the new accepted level. (Sydney Morning Herald -- Business)
Market's China hopes punctured Nov 11, 2008
Bad debts have increased "moderately". "This is in stark contrast to the big jump in bad debts expense and a 22.5% decrease in profit after tax experienced by the major banks in 2007-08," he said. (Sydney Morning Herald -- Business)
Asian growth helps HSBC offset US losses Nov 11, 2008
LONDON: Europes biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost US$5bil in bad debts on US home loans and asset writedowns ... Bad debts also rose in its European retail business. (The Star Online, Malaysia -- Business)
HSBC's profits up on year despite U.S. hit Nov 10, 2008
2 billion pounds) in bad debts on U.S. home loans and asset writedowns. HSBC also said its profits in the nine months to the end of September were lower than the same period of 2007, but by less than the 28 percent drop reported for the first-half. (International Herald Tribune -- Technology)
HSBC profit rises on growth from Asia Nov 10, 2008
LONDON Europe's biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost $5-billion (U.S.) in bad debts on U.S. home loans and asset writedowns ... Bad debts also rose in its European retail business. (Globe and Mail -- Business)
Abils banking unit expected to post 8% profit increase Nov 10, 2008
Cape Town - The annual profit of the banking unit of African Bank Investments Limited (Abil) was expected to rise by 8 percent, the company said on Friday, in a sign that fixed interest rate lenders catering for the mass market were keeping a lid on bad debts for now ... The big four banks have recently reported heavy increases in their impairment charges, mostly on account of rising bad debts. (Business Report, South Africa)
Calbreath: Not even close to rescuing the economy Nov 10, 2008
5 trillion buying up the bad debts or preferred stocks of failing banks, they won't start lending until they believe there's a stable market. Right now, with foreclosures still on the rise, there's nothing stable about the housing market. (San Diego Union-Tribune)
DBS to cut 900 jobs Nov 8, 2008
DBS Group, the biggest Southeast Asia bank, said Friday that it would cut 900 jobs, or 6 percent of its staff, after posting a bigger-than-expected drop in quarterly profit as losses from bad debts quadrupled ... The result came after smaller local rivals reported below-forecast earnings, hurt by writedowns on bad debts. (International Herald Tribune -- Business)
Too early to switch to ITV as its online growth disappoints Nov 8, 2008
Further, bad debts in home shopping are much as expected. That four fifths of Findel s profits are drawn from the more defensive niches of education and healthcare must reassure. (Times Online)
Heritage Foundation: Argentina's Grab of Private... Nov 7, 2008
The Kirchners need the money to refinance old bad debts so that they can borrow yet more money to keep the country afloat. The announcement rocked investor confidence in Argentina and sent the Buenos Aires stock market plunging. (Fox News)
Enerplus announces 2008 third quarter operating and financial results Nov 7, 2008
However, if the current low commodity prices and tight capital markets prevail, there is a risk of increased bad debts related to our industry partners. Sustainability of our Distributions and Asset Base As an oil and gas producer we have a declining asset base and therefore rely on ongoing development activities and acquisitions to replace production and add additional reserves. (Canada Newswire)
Wells Fargo prices $11B offering at $27 per share Nov 7, 2008
In late September, the IRS issued a surprise ruling that boosts banks' ability to offset the losses from loans and other bad debts held by banks they acquire by taking larger tax write-offs against future profits. Under the old ruling, companies could only write off a small portion of the losses, limiting how much of a tax benefit they could get. (Fresno Bee -- Business)
Rentokil Stems Slump in European Washroom Sales, Reiterates Profit Target Nov 7, 2008
Rentokil said today it booked a 6 million-pound provision to cover bad debts at the U.K. washrooms business. gained 7. (Bloomberg -- UK)
Good, the bad and the ugly Nov 7, 2008
There is no doubt that lenders are beginning to take a tougher line with the "bad boys', partly as a consequence of the longevity of the credit crisis - in which normal sources of financing across the globe have dried up and the cost of what little is available has soared. And for all the signs of a thaw in short-term funding markets following government intervention and falling interest rates, Australia's senior bankers still accept for the most part that it will take another two to three years... (Sydney Morning Herald -- Business)
The DATA Group Income Fund announces third quarter results for 2008 Nov 6, 2008
These changes may negatively affect the sales of the Data Group's products and services, increase exposure to losses from bad debts, increase the cost and decrease the availability of financing, or increase costs associated with manufacturing and distributing products or delivering services to the Data Group's customers. Sales of some of the Data Group's products are subject to seasonal fluctuations in demand. (Canada Newswire)
US treasury sells bail-out bonds Nov 6, 2008
By selling bonds and notes the US government will finance the rescue package aimed at buying up Wall Street's bad debts in an effort to ease the credit crunch which is crippling the US economy. The US Treasury expects to raise up to $550bn by the end of 2008. (BBC News -- Business)
Toyota Announces Second Quarter Financial Results Nov 6, 2008
The decline was mainly due to increased reserves for bad debts and residual value losses in the U.S. despite the contribution from the increase in outstanding loan balance and expansion of lending margins. TMC also announced an interim cash dividend of 65 yen per share for the first half of the fiscal year, the same as the first half last fiscal year. (JCN Network, Japan)
Kingsway Reports Net Loss of $17.4 million in the Third Quarter Nov 5, 2008
Expenses The overall expenses increased in the quarter due to the severance costs associated with the integration of Kingsway's American Country subsidiary into its American Service subsidiary and increased bad debts write-offs. Higher operating costs and depreciation expense of the new Head Office building in Canada also impacted expenses. (Canada Newswire)
Absolute Software Reports First Quarter Fiscal 2009 Results Nov 4, 2008
In addition, given the current economic climate, management has increased its general provision for bad debts ... Management, with assistance from outside counsel, is reviewing its procedures in light of this reversal, and in light of the current economic climate, to minimize the risk of bad debts, returns and reversals as it pertains to the Canadian non-GAAP measure of Sales Contracts. (Canada Newswire)
RBS takes 206 million pounds hit Nov 4, 2008
Its operating profit before writedowns in the first nine months of the year was down 8 percent on the year, reflecting rising bad debts in some of its businesses. Debt quality deteriorated sharply in the third quarter; in retail and commercial banking, impairments were up 9 percent in the first nine months of the year, having been down 2 percent at the half-year stage, the bank said. (International Herald Tribune)
Europe banks, insurers see more writedown pain Nov 4, 2008
LONDON/ZURICH European banks and insurers warned life is likely to get tougher this year as more writedowns and rising bad debts hit profits ... South Africa's Nedbank also forecast no growth in headline earnings for the full-year after a rise in bad debts in the third quarter ... Britain's RBS, which is raising 20-billion ($32-billion U.S.) from the government and investors, warned it will be hit by more writedowns, rising bad debts and a possible goodwill charge. (Globe and Mail -- Business)
An open letter to late deciders Nov 3, 2008
miked wrote on Nov 2, 2008 4:59 PM:" The most striking aspect of McCain's bid for the Presidency is his exploitation of the Low Information Voters, some 75 million strong, who lack the ability to effectively evaluate and analyze complex information. For example, McCain takes public financing (i.e., tax money collected by the government) to fund his private campaign. He then refers to Obama as a "socialist" while complaining bitterly that Obama refuses to take our tax dollars to fund his... (Waterloo-Cedar Falls Courier)
Update: Lloyds sees "substantial" profit loss Nov 3, 2008
LONDON (SHARECAST) - Bank Lloyds TSB, which is on the verge of merging with rival HBOS, said profits fell substantially in the first nine months due to bad debts and the recent turmoil in the financial markets. The impact of market dislocation, insurance related volatility and higher impairments, particularly in our corporate lending portfolios, led to a substantial reduction in statutory profit before tax in the first nine months of the year, said the group. (ShareCast)
Sheltered from the global storm Nov 1, 2008
The plummeting Thai baht sent foreign investors running from the region, setting off a contagion that exposed a mountain of bad debts, crippled banking systems, bankrupted big companies and brought governments in Thailand, Indonesia and Malaysia to their knees. The economies of those three economies contracted by about 10, 13 and 7 per cent, respectively. (Sydney Morning Herald -- Business)
comScore Reports Record Revenue and Profits in Third Quarter Oct 31, 2008
25 Weighted-average number of shares used in per share calculation - common stock Basic 28,878,494 27,248,379 28,576,651 12,211,143 Diluted 30,389,519 29,545,321 30,215,920 14,326,891 (1) Amortization of stock-based compensation is included in the line items above as follows Cost of revenues 265 76 610 145 Selling and marketing 797 298 1,823 509 Research and development 225 67 507 128 General and administrative 617 264 1,697 501 comScore, Inc. Consolidated Statements of Cash Flows (in thousands)... (PR Newswire)
Suncorp mulls lower offers for bank arm Oct 31, 2008
meet its fiscal 2009 guidance of high single digit growth in profit before tax and bad debts. Shares in Suncorp firmed one cent to $8. (Sydney Morning Herald)
Westpac gets nod as top performer Oct 31, 2008
The top five banks' performance was dragged down by huge provisions made to cover increasing bad debts, particularly the billion-dollar charges taken by ANZ and National Australia Bank to cover corporate and investment-linked loans. The charges saw earnings at ANZ decline by 23 per cent to $3 billion and at NAB by 11 per cent to $3. (Sydney Morning Herald -- Business)
Water funds approved for problem area Oct 30, 2008
In another water-related matter, Jo Haywood, who handles water system billing, reported on efforts to collect bad debts ... Since 2006, the county has collected $38,747 in bad debts, but is still owed nearly $161,000 in unpaid water bills. (Troy Montgomery Herald, NC)
Big banks' profits hit 15-year low Oct 30, 2008
Bad debts for ANZ ran up to almost $2 billion in 2007-08 as it suffered losses from loans to ailing property group Centro and now-defunct Opes Prime and Bill Express, as well as a deteriorating portfolio of risky credit derivatives ... NAB also has been a drag on the performance of the majors after being hit with $830 million in exposure to bad debts. (Sydney Morning Herald -- Business)
Westpac's Second-Half Profit Declines on Bad Debts (Update3) Oct 30, 2008
Westpac's Second-Half Profit Declines on Bad Debts (Update3) ... 5 percent decline in second-half profit as bad debts increased ... Chief Executive Officer , acquiring rival St. George Bank Ltd. to form the nation's biggest home-loan provider, said bad debts will increase next year and lending growth will slow as the economy falters. (Bloomberg)
Credit Counselling Singapore sees more bad debts from gambling Oct 28, 2008
Tuesday, October 28, 2008. " onclick="Next();" src="/images/butt_next. (Channelnewsasia.com)
National City scooped up Oct 25, 2008
And the Internal Revenue Service quietly issued a notice at the end of September that allows banks to reduce their taxes using an acquired bank's losses on loans or bad debts. Experts say it's not yet clear how much of a disadvantage the various measures might have created for Canadian banks that are looking for acquisitions. (Globe and Mail)
ANZ chief casts a dark shadow Oct 25, 2008
Mr Brown said ANZ's provisioning for bad debts, which surged from $522 million to $1. 95 billion, was conservative. (The Australian)
Banks face rising bad debts Oct 25, 2008
While bad debts are expected to rise in coming months, authorities from the prime minister down have declared Indian banks to be safe ... Retail loans, mortgages, credit cards, auto and consumer durable loans, which were among the fastest-growing segments, are now likely to be major risk areas as bad debts are expected to rise to 4 percent of advances by March 2009, said rating agency CRISIL, a unit of Standard s. Loans for housing and stock investments also mushroomed in recent years, helped by... (India Times, India)
Banks face debts,funding squeeze Oct 24, 2008
Indian banks face rising bad debts, funding squeeze- Finance-Economy-News-The Economic Times ... Indian banks face rising bad debts, funding squeeze24 Oct, 2008, 1237 hrs IST, REUTERS ... While bad debts are expected to rise in coming months, authorities from the prime minister down have declared Indian banks to be safe. (India Times)
Downturn Impacts Interfor's Q3 Results Oct 24, 2008
Historically, the Company has experienced minimal bad debts and based on this past experience, the Company believes that no impairment allowance is necessary in respect of trade accounts receivable past due. As at September 30, 2008, there were no trade accounts receivable past due which were considered uncollectible (September 30, 2007 - $nil), and no reserve in respect of doubtful accounts was set up (September 30, 2007 - $nil). (CCNMatthews Press Releases)
5 Stocks in a Tailspin Oct 24, 2008
Provisions for bad debts jumped 51% this quarter, and net loan write-offs rose to 5. 9%, from 3% a year ago. (MSNBC -- Business)
Australia's ANZ Bank's profit drops 21 percent Oct 23, 2008
Australia ealand Banking Group Ltd. reported a 21 percent decline in annual profit Thursday as soaring charges for bad debts linked to the global credit crisis hit Australia's fourth-largest bank hard ... Earlier this week, rival National Australia Bank Ltd. the country's largest bank by assets reported a 1 percent drop in annual profit and sharply rising levels of bad debts. (San Francisco Chronicle -- Business)
Wachovia Reports a $23.9 Billion Loss Oct 23, 2008
Late last month, the Internal Revenue Service issued a surprise ruling that boosts banks' ability to offset the losses from loans and other bad debts held by banks they acquire. The guidance allows banks to take larger tax write-offs against future profits and makes the bargain-basement $14 billion all-stock Wachovia deal all the more attractive for San Francisco-based Wells Fargo. (ABC News -- Wire)
ANZ profit slumps 23% Oct 23, 2008
"ANZ is a growth story but it's been about bad debts rather than revenue or capital growth," said Wilson HTM analyst Brett Le Mesurier. ANZ shares dropped 5. (Sydney Morning Herald -- Business)
Australia's ANZ Bank posts 21% profit loss Oct 23, 2008
SYDNEY, Australia (AP) - Australia ealand Banking Group Ltd., reeling from the fallout of the global credit crisis, on Thursday reported a 21 percent loss in annual profit after charges for bad debts soared. Net income for Australia's fourth-largest bank plunged to 3. (The Star Online, Malaysia -- Business)
Australia & New Zealand Bank's Half-Year Profit Declines 35% on Provisions Oct 23, 2008
Smith predicted a ``difficult'' year ahead as the economy weakens and bad debts continue to increase from historical lows. ANZ has slumped 34 percent in trading this year, the biggest decline on the seven-company index of Australia's biggest banks. (Bloomberg -- Australia & New Zealand)
China Plans to Inject $19 Billion in Agricultural Bank, Take On Bad Loans Oct 22, 2008
The bailout will complete a reorganization of China's banking industry that's so far cost the government $500 billion, after years of state-directed lending caused bad debts to balloon. Unlike competitors such as , which sold stock when growth was booming, Agricultural Bank's overhaul comes as the global credit crunch saps demand for China's exports and equity offerings. (Bloomberg -- Asia)
* Bank of Beijing could buy half of ING life venture Oct 22, 2008
A 64 percent stock market drop this year has curbed mutual fund sales at banks, and a slowing economy is eroding demand for loans while pushing bad debts higher. Bank of Beijing won approval in July to buy 20 percent of Langfang City Commercial Bank (Y{~) for 127. (Taipei Times, Taiwan -- World)
Scottish Buisness Breifing - Wednesday October 22, 2008 Oct 22, 2008
Scottish Buisness Breifing - Wednesday October 22, 2008 - Scotsman. com's Scottish Business Briefing. (Scotsman)
NAB gets thumbs up but doubts remain Oct 22, 2008
Merrill Lynch's Matthew Davison, Andrew Lyons and Nicole Mehalski questioned the effect of likely rising bad debts on the dividend payout ratio. Merrill Lynch is Neutral the stock, Credit Suisse has an Underperform rating, Deutsche Bank says clients should buy and Citigroup recommends its clients hold the stock. (Sydney Morning Herald -- Business)
China pumps $28b into bank ahead of share sale Oct 22, 2008
The bailout completes a decade-long, $US500 billion-effort to reorganize China's banking industry after years of state-directed lending caused bad debts to balloon. Unlike competitors such as Industrial & Commercial Bank of China Ltd., which sold stock when economic growth was quickening, Agricultural Bank's overhaul comes as the global credit crunch saps demand for China's exports. (Sydney Morning Herald -- Business)
India's Buying Class — The Wages of Consumerism Oct 21, 2008
No one is predicting a wave of bad debts will crash the Indian financial system and economy. That's because commerce on the subcontinent still runs mostly on cash. (Time.com)
UBS Counterparty Ratings May Be Lowered by S&P on `Doubts' About Earnings Oct 18, 2008
Switzerland became the latest country to rescue ailing financial institutions after losses on bad debts surpassed $650 billion globally and credit markets froze. The Swiss government plans to raise deposit guarantees and back the short- and medium- term interbank loans of the nation's banks, after countries across Europe took similar measures. (Bloomberg -- Europe)
Outlook for Asian banks turns bleaker Oct 17, 2008
The outlook for the Asian-Pacific banking industry is turning increasingly negative, as banks from South Korea to Australia battle growing financing fears and brace for more bad debts as economies slow. Asian-Pacific lenders have managed to mostly dodge the ravages of the subprime mortgage meltdown, but now they must survive depressed markets and a darkened economic picture. (International Herald Tribune -- Business)
Westpac to take $226m charge Oct 17, 2008
The charge for bad debts - said to show a "modest" rise - will also be watched for signs the corporate world is suffering contractions. The shares slipped 52c to $21. (Sydney Morning Herald -- Business)
BNY Mellon 3Q profit tumbles 53%, tops forecast Oct 17, 2008
As part of a $700 billion bailout package passed by Congress last month, the government also plans to buy soured mortgages and other bad debts held by banks. BNY Mellon has been hired by the Treasury to provide services to support this program, including the accounting for the portfolio and pricing and valuation services. (San Diego Union-Tribune -- Business)
Swiss bail out UBS with $59bn injection Oct 17, 2008
Switzerland is the last of the world's financial centres to pour cash into ailing financial institutions after losses on bad debts reached $647 billion globally and credit markets froze. The Swiss government plans to raise deposit guarantees and is ready to back the short- and medium-term interbank loans of the nation's banks. (Business Report, South Africa)
Dow's Plunge Kills Confidence Overseas Oct 16, 2008
The government also plans to buy rotten mortgages and other bad debts held by banks, another new power granted by the bailout package. Related Stories. (KSBW 8, CA)
Blackhawk Bank profits increase Oct 16, 2008
"The strength of our core earnings has produced record earnings while, at the same time, we increased our reserve for bad debts," Bastian said. "Up to this point we've avoided major issues, but as the effects of the big bank problems and a weaker economy trickle down, we expect to feel some impact.". (Milwaukee Business Journal, WI)
U.S. acts to 'preserve' market Oct 15, 2008
The decision to buy equity stakes in big U.S. banks amounts to a stunning change in the original plan, unveiled less than a month ago, in which Mr. Paulson proposed a massive government-funded plan to buy bad debts. That $700-billion bailout was initially rejected by Congress and passed later only after being sweetened with billions more in tax breaks. (Globe and Mail)
Bank Rakyat posts RM805mil profit Oct 14, 2008
4mil, up 17%, mainly attributable to the writeback of bad debts provision. Total deposits grew by 20. (The Star Online, Malaysia -- Business)
