Monday's Early Headlines
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
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.
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
, 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 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
and its finance arm,
, 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
- President Obama announced 10 projects aimed at creating or saving more than 600,000 jobs, according to a
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."
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.
confirmed Monday it has held talks with
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.
- Retail and institutional brokerage customers of
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.
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.
will become the newest members of the
Dow Jones Industrial Average
Monday, replacing Citigroup and GM.