October 2008

General Electric fell nearly 10% in trading today amid concerns about its earnings and after it sold $12 bn in common stock at $22.25, a 9% haircut to its close on Wednesday. The news that Warren Buffett's Berkshire Hathaway will buy $3 bn in preferred stock, which sport a rich 10% dividend, in General Electric (GE) isn't enough to stop the downturn in the conglomerate's shares. Also, ... read more

A little understood but very important accounting rule being blamed for the $523 bn in losses and writedowns at financial companies around the globe is now being retooled by market and accounting regulators, in a last-ditch attempt to stop the steam pipes bursting and to get banks lending again. However, the move matters greatly to taxpayers, because analysts now say that banks who own severely ... read more