Ford, CIT Group: Monday's Headlines

Monday's Early Headlines

• BofA Prepares to Pay Back TARP -- The New York Post reported Saturday that investment bankers who have spoken to Bank of America (BAC) said they are bracing for the bank to pay back some $20 billion. "We remain ready, willing and able to pay back TARP and we're only awaiting word from the government on when we can do that," a BofA spokesman told the Post.
• CIT Group Files for Bankruptcy -- CIT Group (CIT) filed for bankruptcy protection over the weekend, after a proposed debt exchange to bondholders failed. CIT made the filing in New York bankruptcy court Sunday, after a debt-exchange offer to bondholders failed, the Associated Press reported. CIT's move will wipe out current holders of its common and preferred stock.
• Comcast Close to Nabbing NBC Universal -- The New York Times reports that Comcast (CMCSA) and General Electric (GE) have moved closer to a deal giving control of NBC Universal to Comcast, and a formal announcement could be made sometime next week, citing people briefed on the talks. Comcast would own about 51 percent of NBC Universal, contributing several billions of dollars in cash and its own stable of cable networks to the new venture, while GE would retain the other 49 percent and would contribute about $12 billion in debt to the new entity, the report said. GE is expected eventually to sell its ownership interest over several years.
• Goldman Looks to Buy Fannie Tax Credits -- The Wall Street Journal reports that Goldman Sachs (GS) is in talks to buy millions of dollars of tax credits from Fannie Mae (FNM), but the potential deal is running into opposition from the U.S. Treasury, which could block the deal. While a sale would bring some needed financial respite to Fannie Mae, the administration is concerned about approving a deal that would help Goldman reduce its tax bill, the report said.
• Companies Hoarding Cash and Assets: Report -- The Wall Street Journal reports that companies are holding more cash and a greater percentage of assets in cash after being stung the financial crisis. In the second quarter, the 500 largest nonfinancial U.S. firms, by total assets, held about $994 billion in cash and short-term investments, or 9.8% of their assets, according a Wall Street Journal analysis of corporate filings. That is up from $846 billion, or 7.9% of assets, a year earlier, the report said.

-- Written by Robert Holmes in New York.

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