Community banks to get bailout money as Obama seeks to boost small business

 To spur lending to small businesses, it is 'essential that we make more credit available to the smaller banks and community financial institutions that these businesses depend on,' the president says.Reporting from Washington - President Obama, looking to boost lending to small business, will start using some of the leftover federal bailout funds to shore up smaller community banks and induce them to offer credit to firms he called the "backbone of the American economy."Smaller financial institutions are in greater need of capital to grow and expand, whereas the country's large banks have moved past...

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Obama Says Small Businesses Must Be at Forefront of Recovery

By Catherine Dodge and Julianna GoldmanOct. 24 (Bloomberg) -- President Barack Obama called small businesses the “engine” of the U.S. economy and said too many are still struggling to get the credit they need to operate.In his weekly address on the radio and Internet, Obama said the nation’s banks, supported by taxpayers in the economic crisis, now need “to stand by the creditworthy small businesses.”“It’s time for those banks to fulfill their responsibility to help ensure a wider recovery,” Obama said. “We’re going to take every appropriate step to encourage them to meet those responsibilities.”The president this week announced measures to open up credit for small business, such as capital injections for community banks to spur lending. Obama also asked Congress to raise the limits for Small...

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UK economy remains in recession

LONDONThe British economy shrank 0.4 percent in the third quarter of the year, according to official statistics released Friday, dashing hopes that the country had emerged from recession.The fall in gross domestic product for the sixth consecutive quarter takes the total loss of output since the recession began last year to 5.9 percent, leaving Britain in the grip of the longest period of continuous decline since the Statistics Office began taking records in 1955.Economists had expected the update from the Office for National Statistics to be a close call between growth and contraction -- but most had plumped for slight growth and few had forecast a fall of that size.The persistent decline comes despite attempts by the government and Bank of England to boost the economy, including holding...

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Many Bailed Out Execs Flee Before Pay Cuts

The administration had tasked Kenneth Feinberg, the Treasury Department's special master on compensation, to evaluate the pay packages of 25 of the most highly compensated executives at each of seven firms receiving exceptionally large amounts of taxpayer assistance.But Thursday, he ruled only on slightly more than three quarters of the pay packages that were to be under his purview. The balance reflected executives who have left since he began his work in June or will be gone by the end of the year.Many executives were driven away by the uncertainty of working for companies closely overseen by Washington, opting instead for firms not under the microscope, including competitors that have already returned the bailout funds to the government, according to executives and supervisors at the companies."There's...

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Who cares if Wall Street 'talent' leaves?

NEW YORK (Fortune) -- There's no need to fear a Wall Street brain drain -- despite the crackdown on pay by Washington.On Thursday, White House pay czar Kenneth Feinberg outlined compensation restrictions at seven firms that got special bailouts, and the Federal Reserve proposed to review pay practices at 28 unnamed giant banks.Critics warn that reining in pay makes it hard to keep talented employees. Hemmed in, institutions like AIG (AIG, Fortune 500),Bank of America (BAC, Fortune 500) and Citigroup (C, Fortune 500) could lose their best people.These firms would then perform even more abysmally, if that's possible, leaving them hard pressed to...

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Jump in U.S. home sales fails to lift stock market

Ieva M. Augstums and Tim ParadisNew York — The Associated Press Published on Friday, Oct. 23, 2009 7:27AM EDT Last updated on Friday, Oct. 23, 2009 11:29AM EDTInvestors looked past a jump in home sales and strong profits at key technology companies as disappointing forecasts from major railroads stirred unease about the economy.Stocks zigzagged early Friday as investors found little reason to buy into the market after a strong rally on Thursday.A huge jump in sales of existing homes last month was seen as an aberration. The National Association of Realtors said that sales rose 9.4 per cent, nearly double the advance that had been expected. It...

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U.S. Stocks Retreat as Oil Slumps; Microsoft, Amazon Rally

By Elizabeth StantonOct. 23 (Bloomberg) -- U.S. stocks fell, wiping out a weekly gain for the Standard & Poor’s 500 Index, as a drop in oil weighed on energy producers and disappointing results at the nation’s largest railroad dragged down industrial shares.Exxon Mobil Corp. and Schlumberger Ltd. led energy producers lower as crude slid for a second day. Industrial shares in the S&P 500 fell 1.3 percent as a group, led by railroad stocks, after Burlington Northern Santa Fe Corp. forecast profit that missed analyst estimates. Technology shares posted the smallest drop among 10 groups as Microsoft Corp. and Amazon.com Inc. jumped on better-than-estimated earnings.The S&P 500 dropped 0.7 percent to 1,084.89 at 11:16 a.m. in New York. The Dow Jones Industrial Average lost 67.64 points,...

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U.S. Stocks Advance as AT&T, McDonald’s Top Earnings Estimates

Oct. 22 (Bloomberg) -- U.S. stocks advanced as better-than- estimated earnings at AT&T Inc. and McDonald’s Corp. overshadowed a bigger-than-projected increase in jobless claims.AT&T added 1.1 percent after new iPhone and television customers bolstered earnings. McDonald’s climbed 2.4 percent following a better-than-projected increase in global comparable sales. Gains were limited by a Labor Department report that initial applications for jobless benefits rose to 531,000 last week.The S&P 500 increased 0.1 percent to 1,082.69 as of 9:37 a.m. in New York. The Dow Jones Industrial Average added 30.38 points, or 0.3 percent, to 9,979.74.The S&P 500 is trading at its highest valuation in five years after climbing 60 percent from a 12-year low in March as the government lent, spent...

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WORLD FOREX:Dollar Slips Back Again As Risk Appetite Returns

By Nicholas HastingsOf DOW JONES NEWSWIRESLONDON (Dow Jones)--Appetite for risk is returning a little, pushing the dollar lower and higher-yielders, such as the Australian dollar and even the pound, higher in Europe Wednesday.Optimism about the global economy was also reflected in equities, with most European bourses opening higher.The rallies mark the end of the downturn that swept through financial markets Tuesday after the Bank of Canada disappointed investors with its decision to leave interest rates unchanged.The BOC had widely been expected to follow the Reserve Bank of Australia with a rate hike - a move that would have reinforced the view that G10 economies had recovered enough for the unwinding of emergency credit-crunch policies.Instead, the Canadian central bank warned of the risks...

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Investors waiting for more clues about consumers

By STEPHEN BERNARDAP Business WriterNEW YORK -- After getting worrisome signs about consumers from bankers' earnings reports, investors will be looking at a broad range of companies this week for further insights into the outlook for the economy.Consumer-focused companies including Apple Inc., McDonald's Corp., appliance maker Whirlpool Corp. and toy maker Hasbro Inc. are among those reporting results during the week. Airlines, drug companies and more big banks are also scheduled to release their earnings.The market is so focused on companies' third-quarter results and their outlooks for the coming months that economic data like the September...

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BEFORE THE BELL:US Stock Futures Point Lower Again

By Steve GoldsteinU.S. stock futures on Wednesday pointed to a second straight day of declines, ahead of a slate of earnings from Wells Fargo and Morgan Stanley and an assessment of the economy from the Federal Reserve.S&P 500 futures fell 5.7 points to 1,083.70 and Nasdaq 100 futures dropped 8.5 points to 1,749.70. Futures on the Dow Jones Industrial Average fell 47 points.U.S. stocks on Tuesday returned a portion of the prior day's advance, with the Dow Jones Industrial Average down 51 points, the S&P 500 off 7 points and the Nasdaq Composite down 13 points. Disappointing economic data offset mostly well-received earnings updates from the likes of Caterpillar and Apple."Markets are being pulled between generally better corporate results, and occasional disappointments on the macro...

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Wall Street ends lower on profit taking

NEW YORK (Reuters) - Stocks retreated from 12-month highs on Tuesday as disappointing housing and inflation data prompted investors to book recent gains despite strong results from bellwethers including Apple and Caterpillar.New construction of U.S. homes rose less than expected in September and U.S. producer prices posted an unexpected decline, both pointing to an anemic economic recovery.DuPont shares fell 2.2 percent to $33.87, making it a top drag in the S&P materials sector and the Dow industrials after the chemical maker posted higher-than-expected third-quarter profit, but revenue fell short of Wall Street estimates.After the closing...

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Stocks slide, but Dow holds 10,000

Mixed profit reports, a stronger dollar and a weaker housing market report are among the factors dragging on Wall Street.NEW YORK (CNNMoney.com) -- Stocks dipped Tuesday as a stronger dollar and some disappointment about DuPont and Coca-Cola's results gave investors a reason to retreat from the recent rally.A weaker-than-expected housing market report added to the downward pressure.The Dow Jones industrial average (INDU) lost 50 points, or 0.5%, according to early tallies, after ending the previous session at the highest finish since Oct. 3, 2008.The S&P 500 (SPX) index lost 7 points, or 0.6%, after ending Monday's session at the highest...

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Europe Concerned as Dollar Decline Continues

A number of European countries have embarked on a slow recovery following the economic collapse late last year. But with the euro now at a 14-month high against the dollar, euro zone officials worry exports could suffer.The signs of a recovering global economy are everywhere. Global stocks are up 75 percent from the deep lows seen in the darkest days of the financial crisis, many banks and other financial institutions are reporting a return to profits and a number of countries have emerged from recession.But one development has some in Europe concerned that the path to recovery in Europe's single currency zone could be riddled with obstacles:...

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Dutch government, Deutsche Bank in ABN AMRO deal

By Ben Berkowitz and Edward TaylorAMSTERDAM/FRANKFURT (Reuters) - Deutsche Bank AG (DBKGn.DE) agreed in principle to buy some ABN AMRO assets from the Dutch state in a deal which should clear the way for a merger of nationalized banks ABN and Fortis Bank Nederland.Under the deal, 15 months and two ABN owners in the making, the acquisitive German lender will boost its Dutch operations by acquiring commercial bank HBU, 13 advisory branches, two corporate client units and a factoring business.The pact, which is not final and depends on negotiations and a host of regulatory approvals, is the same in terms of assets as the deal Deutsche, Germany's...

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Deutsche Bank says it will buy parts of ABN Amro

FRANKFURT — The biggest German bank, Deutsche Bank, said Tuesday it would buy parts of the state-owned Dutch lender ABN Amro's activities in the Netherlands for an undisclosed amount."The assets to be acquired remain the same as those in the original agreement announced on July 2, 2008. Negotiations continue on final terms and conditions" with the Dutch finance ministry, a statement said.The deal, targeting parts of the Dutch bank's commercial banking activities, is subject to approval by ABN Amro, Deutsche Bank's supervisory board, the Dutch central bank and regulatory authorities, it added.In September, Deutsche Bank had said it would abandon...

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Stock Market Boosted by Better than Expected Corporate Earnings

Risky assets remained in favor during the past week, generally helped along by fairly robust economic data and better-than-expected corporate earnings reports. A number of bourses, crude oil, inflation-linked bonds and high-yielding corporate bonds and currencies recorded fresh highs for the year, whereas gold hit an all-time high of $1,070.20 per ounce.Assets such as government bonds and the US dollar saw fading demand as safe havens, now that the global economy is on the mend. Similarly, credit default spreads tightened markedly and the CBOE Volatility Index (VIX) declined to its lowest level since early September 2008.The Dow Jones Industrial...

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