Monday's Headlines: Cisco, Travelers

Monday's early headines include Cisco and Travelers replacing GM and Citigroup on the Dow Jones Industrial Average, General Mills expects 2009 earnings above previous guidance, and Citigroup's $58 billion stock swap is set to start

Author:: Robert Holmes
Publish date:: Jun 8, 2009 8:01 AM EDT

Monday's Early Headlines

Capital-Raising Deadline For Banks.

The Wall Street Journal

notes that Monday is the deadline for federal bank regulators to approve capital-raising plans at nine of the country's largest banks, a culmination of the stress-test process. But the

Journal

says the moment could be overshadowed by a less publicized deadline: banks' equally in-depth review of their management. The management review is creating major headaches, according to the report. One reason is that banks have had an easier time raising capital than many expected. Also, the rules for the management review were ambiguous. And separate regulators are giving conflicting guidance, confusing the process.

Citigroup $58 Billion Stock Swap to Start.

Citigroup

is set to start a $58 billion stock swap that was delayed last week as Federal Deposit Insurance Corp. questioned CEO Vikram Pandit's leadership and the bank awaited regulatory approval from other agencies, according to

Bloomberg

, citing people close to the bank. The FDIC has backed off and the Treasury Department signaled it would sign a final agreement to take a 34% stake in the bank, the report said. clearing the bank to proceed without further review by securities regulators, people familiar with the matter said.

Banks' Executive Pay To Be Vetted.

- Banks and companies that have received two rounds of federal bailouts will be required to submit any major changes to executive pay for approval by a new federal official who will monitor compensation,

The New York Times

reports, citing two government officials. Citigroup,

Bank of America

(BAC) - Get Report

AIG

(AIG) - Get Report

General Motors

(GMGMQ)

and its finance arm,

GMAC

, which all received two rounds of government money, will face the strictest scrutiny from Kenneth Feinberg, the new federal official charged with vetting compensation, according to the

Times

President Obama to Unveil Job-Creating Programs.

- President Obama announced 10 projects aimed at creating or saving more than 600,000 jobs, according to a

Bloomberg

report. The projects, coming thanks to the $787 stimulus package, are expected to bolster an economy the president says still has a "long way to go."

General Mills Expects To Top Prior 2009 Forecast.

General Mills

(GIS) - Get Report

said its preliminary fiscal 2009 earnings estimates exceed its prior guidance excluding items of $3.87 to $3.89 a share by several cents because of "good operating performance and a lower fourth-quarter tax rate." Analysts surveyed by Thomson Reuters expect General Mills to report fiscal 2009 earnings of $3.89 a share. General Mills shares were up nearly 2% in the premarket session.

Barclays In Talks For Sale of Asset-Management Unit.

Barclays

(BCS) - Get Report

confirmed Monday it has held talks with

BlackRock

(BLK) - Get Report

for its Barclays Global Investors business but also said it has received proposals for BGI and its iShares business from a number of parties. In a statement Monday, the U.K. bank said the discussions aren't yet concluded and "there are a number of significant open issues which could affect the nature and terms of any transaction." Barclays shares were shedding 4% ahead of Monday's opening bell.

Fidelity, KKR in New IPO Agreement.

- Retail and institutional brokerage customers of

Fidelity Investments

can participate in initial public offerings and other offerings of

Kohlberg Kravis Roberts

companies under a deal announced Monday. Fidelity customers will have exclusive access to securities allocated to private-equity firm KKR in all U.S. IPOs and follow-on offerings in which KKR participates as an underwriter, the companies announced in a statement Monday. These customers will be provided access to IPOs they generally don't participate in.

Lenders May Get Control of Tribune.

Tribune

and its creditors are in the early stages of negotiating a plan of reorganization in bankruptcy court that likely would transfer control of the troubled media conglomerate from Chicago billionaire Sam Zell to a group of large banks and investors that holds $8.6 billion in senior debt, according to a report in

The Chicago Tribune

. The plan is still taking shape, the report said, and much could change as negotiations continue.

Dow Loses Citi and GM, Gains Cisco and Travelers.

Cisco Systems

(CSCO) - Get Report

and the

Travelers Companies

(TRV) - Get Report

will become the newest members of the

Dow Jones Industrial Average

Monday, replacing Citigroup and GM.