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Nanavati panel report tabled; gives clean chit to Modi
Ahmedabad, Sept 25: The Godhra Commission, which is probing the burning of Sabarmati Express, gave a clean chit to Gujarat Chief Minister Narendra Modi in its first part of the report tabled in Gujarat’s State Assembly on Thursday. It also said that the Godhra incident was pre-meditated and not spontaneous. This is contrary to the findings of the Banerjee Committee report appointed by Railway Minister.
According to the Nanavati report, the incident of burning S-6 coach of Sabarmati Express on February 27, 2002, was a pre-planned conspiracy and not an accident. It further denied involvement of Modi or any minister of his council or any policemen in the whole incident.
The 168-page report added that the policemen who were assigned to travel in the train neglected their duty. Consequentially, they have been dismissed.
Throwing light on the preparation of the conspiracy, the report said that the whole conspiracy was hatched at the house of Moulvi Umrej in the Signal Phadia area of Godhra.
Ahmedabad, Sept 25: The Godhra Commission, which is probing the burning of Sabarmati Express, gave a clean chit to Gujarat Chief Minister Narendra Modi in its first part of the report tabled in Gujarat’s State Assembly on Thursday. It also said that the Godhra incident was pre-meditated and not spontaneous. This is contrary to the findings of the Banerjee Committee report appointed by Railway Minister.
According to the Nanavati report, the incident of burning S-6 coach of Sabarmati Express on February 27, 2002, was a pre-planned conspiracy and not an accident. It further denied involvement of Modi or any minister of his council or any policemen in the whole incident.
The 168-page report added that the policemen who were assigned to travel in the train neglected their duty. Consequentially, they have been dismissed.
Throwing light on the preparation of the conspiracy, the report said that the whole conspiracy was hatched at the house of Moulvi Umrej in the Signal Phadia area of Godhra.
Bailout package failure could lead to `Nirvana`: Buffett
London, Sept 25: Billionaire investor Warren Buffett has said panic caused by financial turmoil will "look like Nirvana" if the US Congress fails to approve the USD 700-billion bailout package to salvage ailing financial giants.
"Last week will look like Nirvana if they (US Congress) don't do something. I think they will. I understand they're very mad about what's happened in the past, but this isn't the time to vent your spleen about that," the Independent quoted Buffett as saying in an interview to CNBC.
Terming the financial crisis as "economic Pearl Harbour", Buffett further predicted that the taxpayer would make a profit on its investments in toxic mortgage debt. "If I had USD 700 billion on the government's terms to buy distressed assets, I would," he said, and added, "Unfortunately, I'm tapped out."
London, Sept 25: Billionaire investor Warren Buffett has said panic caused by financial turmoil will "look like Nirvana" if the US Congress fails to approve the USD 700-billion bailout package to salvage ailing financial giants.
"Last week will look like Nirvana if they (US Congress) don't do something. I think they will. I understand they're very mad about what's happened in the past, but this isn't the time to vent your spleen about that," the Independent quoted Buffett as saying in an interview to CNBC.
Terming the financial crisis as "economic Pearl Harbour", Buffett further predicted that the taxpayer would make a profit on its investments in toxic mortgage debt. "If I had USD 700 billion on the government's terms to buy distressed assets, I would," he said, and added, "Unfortunately, I'm tapped out."
Deal said to be near on big financial bailout plan
WASHINGTON – President Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a $700 billion rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protections for taxpayers and new help for distressed homeowners.
Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented rescue, agreeing to include widely supported limits on pay packages for executives whose companies benefit.
WASHINGTON – President Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a $700 billion rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protections for taxpayers and new help for distressed homeowners.
Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented rescue, agreeing to include widely supported limits on pay packages for executives whose companies benefit.
Financial bailout agreement reached
Lawmakers: Compromise reached on $700 billion bailout before White House summit
WASHINGTON -- Warned of a possible financial panic, key Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry and said they would present it to the Bush administration in hopes of a vote within days.
Lawmakers: Compromise reached on $700 billion bailout before White House summit
WASHINGTON -- Warned of a possible financial panic, key Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry and said they would present it to the Bush administration in hopes of a vote within days.
Paulson's plan is ultimately a lose−lose situation for the US dollar. If it is approved, it would cause a destruction of the US balance sheet by increasing the nation's debt ceiling by 6.6 percent to $11.315 trillion. If it is not approved or if Paulson and Bernanke only get a trimmed down version of the plan, they would have to go back to the drawing board to come up with other solutions to unclog the mess.
WaMu becomes biggest bank to fail in US history
By MADLEN READ, AP Business Writer
NEW YORK - As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks Washington Mutual Inc. has collapsed under the weight of its enormous bad bets on the mortgage market.
The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion.
Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.
One positive is that the sale of WaMu's assets to JPMorgan Chase prevents the thrift's collapse from depleting the FDIC's insurance fund. But that detail is likely to give only marginal solace to Americans facing tighter lending and watching their stock portfolios plunge in the wake of the nation's most momentous financial crisis since the Great Depression.
Because of WaMu's souring mortgages and other risky debt, JPMorgan plans to write down WaMu's loan portfolio by about $31 billion a figure that could change if the government goes through with its bailout plan and JPMorgan decides to take advantage of it.
"We're in favor of what the government is doing, but we're not relying on what the government is doing. We would've done it anyway," JPMorgan's Chief Executive Jamie Dimon said in a conference call Thursday night, referring to the acquisition. Dimon said he does not know if JPMorgan will take advantage of the bailout.
WaMu is JPMorgan Chase's second acquisition this year of a major financial institution hobbled by losing bets on mortgages. In March, JPMorgan bought the investment bank Bear Stearns Cos. for about $1.4 billion, plus another $900 million in stock ahead of the deal to secure it.
JPMorgan Chase is now the second-largest bank in the United States after Bank of America Corp., which recently bought Merrill Lynch in a flurry of events that included Lehman Brothers Holdings Inc. going bankrupt and American International Group Inc., the world's largest insurer, getting taken over by the government.
JPMorgan also said Thursday it plans to sell $8 billion in common stock to raise capital.
The downfall of WaMu has been widely anticipated for some time because of the company's heavy mortgage-related losses. As investors grew nervous about the bank's health, its stock price plummeted 95 percent from a 52-week high of $36.47 to its close of $1.69 Thursday. On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse.
WaMu "was under severe liquidity pressure," FDIC Chairman Sheila Bair told reporters in a conference call.
"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," Bair said in a statement. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
Besides JPMorgan Chase, Wells Fargo & Co., Citigroup Inc., HSBC, Spain's Banco Santander and Toronto-Dominion Bank of Canada were also reportedly possible suitors. WaMu was believed to be talking to private equity firms as well.
The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which led a $7 billion cash infusion in the bank this spring, on the sidelines empty handed.
WaMu ran into trouble after it got caught up in the once-booming subprime mortgage business. Troubles then spread to other parts of WaMu's home loan portfolio, namely its "option" adjustable-rate mortgage loans. Option ARM loans offer very low introductory payments and let borrowers defer some interest payments until later years. The bank stopped originating those loans in June.
Problems in WaMu's home loan business began to surface in 2006, when the bank reported that the division lost $48 million, compared with net income of about $1 billion in 2005.
At the start of 2007, following the release of the company's annual financial report, then-CEO Kerry Killinger said the bank had prepared for a slowdown in its housing business by sharply reducing its subprime mortgage lending and servicing of loans. Alan H. Fishman, the former president and chief operating officer of Sovereign Bank and president and CEO of Independence Community Bank, replaced Killinger earlier this month.
As more borrowers became delinquent on their mortgages, WaMu worked to help troubled customers refinance their loans as a way to avoid default and foreclosure, committing $2 billion to the effort last April. But that proved to be too little, too late.
At the same time, fears of growing credit problems kept investors from purchasing debt backed by those loans, drying up a source of cash flow for banks that made subprime loans.
In December, WaMu said it would shutter its subprime lending business and reduce expenses with layoffs and a dividend cut.
The bank in July reported a $3 billion second-quarter loss the biggest in its history as it boosted its reserves to more than $8 billion to cover losses on bad loans. Over the last three quarters, it added $10.9 billion to its loan-loss provisions.
JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu's banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company.
JPMorgan Chase said the acquisition will give it 5,400 branches in 23 states, and that it plans to close less than 10 percent of the two companies' branches.
The WaMu acquisition would add 50 cents per share to JPMorgan's earnings in 2009, the bank said, adding that it expects to have pretax merger costs of approximately $1.5 billion while achieving pretax savings of approximately $1.5 billion by 2010.
"This is a definite win for JPMorgan," said Sebastian Hindman, an analyst at SNL Financial, who said JPMorgan should be able to shoulder the $31 billion writedown to WaMu's portfolio.
By MADLEN READ, AP Business Writer
NEW YORK - As the debate over a $700 billion bank bailout rages on in Washington, one of the nation's largest banks Washington Mutual Inc. has collapsed under the weight of its enormous bad bets on the mortgage market.
The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion.
Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.
One positive is that the sale of WaMu's assets to JPMorgan Chase prevents the thrift's collapse from depleting the FDIC's insurance fund. But that detail is likely to give only marginal solace to Americans facing tighter lending and watching their stock portfolios plunge in the wake of the nation's most momentous financial crisis since the Great Depression.
Because of WaMu's souring mortgages and other risky debt, JPMorgan plans to write down WaMu's loan portfolio by about $31 billion a figure that could change if the government goes through with its bailout plan and JPMorgan decides to take advantage of it.
"We're in favor of what the government is doing, but we're not relying on what the government is doing. We would've done it anyway," JPMorgan's Chief Executive Jamie Dimon said in a conference call Thursday night, referring to the acquisition. Dimon said he does not know if JPMorgan will take advantage of the bailout.
WaMu is JPMorgan Chase's second acquisition this year of a major financial institution hobbled by losing bets on mortgages. In March, JPMorgan bought the investment bank Bear Stearns Cos. for about $1.4 billion, plus another $900 million in stock ahead of the deal to secure it.
JPMorgan Chase is now the second-largest bank in the United States after Bank of America Corp., which recently bought Merrill Lynch in a flurry of events that included Lehman Brothers Holdings Inc. going bankrupt and American International Group Inc., the world's largest insurer, getting taken over by the government.
JPMorgan also said Thursday it plans to sell $8 billion in common stock to raise capital.
The downfall of WaMu has been widely anticipated for some time because of the company's heavy mortgage-related losses. As investors grew nervous about the bank's health, its stock price plummeted 95 percent from a 52-week high of $36.47 to its close of $1.69 Thursday. On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse.
WaMu "was under severe liquidity pressure," FDIC Chairman Sheila Bair told reporters in a conference call.
"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," Bair said in a statement. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
Besides JPMorgan Chase, Wells Fargo & Co., Citigroup Inc., HSBC, Spain's Banco Santander and Toronto-Dominion Bank of Canada were also reportedly possible suitors. WaMu was believed to be talking to private equity firms as well.
The seizure by the government means shareholders' equity in WaMu was wiped out. The deal leaves private equity investors including the firm TPG Capital, which led a $7 billion cash infusion in the bank this spring, on the sidelines empty handed.
WaMu ran into trouble after it got caught up in the once-booming subprime mortgage business. Troubles then spread to other parts of WaMu's home loan portfolio, namely its "option" adjustable-rate mortgage loans. Option ARM loans offer very low introductory payments and let borrowers defer some interest payments until later years. The bank stopped originating those loans in June.
Problems in WaMu's home loan business began to surface in 2006, when the bank reported that the division lost $48 million, compared with net income of about $1 billion in 2005.
At the start of 2007, following the release of the company's annual financial report, then-CEO Kerry Killinger said the bank had prepared for a slowdown in its housing business by sharply reducing its subprime mortgage lending and servicing of loans. Alan H. Fishman, the former president and chief operating officer of Sovereign Bank and president and CEO of Independence Community Bank, replaced Killinger earlier this month.
As more borrowers became delinquent on their mortgages, WaMu worked to help troubled customers refinance their loans as a way to avoid default and foreclosure, committing $2 billion to the effort last April. But that proved to be too little, too late.
At the same time, fears of growing credit problems kept investors from purchasing debt backed by those loans, drying up a source of cash flow for banks that made subprime loans.
In December, WaMu said it would shutter its subprime lending business and reduce expenses with layoffs and a dividend cut.
The bank in July reported a $3 billion second-quarter loss the biggest in its history as it boosted its reserves to more than $8 billion to cover losses on bad loans. Over the last three quarters, it added $10.9 billion to its loan-loss provisions.
JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of WaMu's banks, or any assets or liabilities of the holding company, Washington Mutual Inc. JPMorgan also said it will not take on the lawsuits facing the holding company.
JPMorgan Chase said the acquisition will give it 5,400 branches in 23 states, and that it plans to close less than 10 percent of the two companies' branches.
The WaMu acquisition would add 50 cents per share to JPMorgan's earnings in 2009, the bank said, adding that it expects to have pretax merger costs of approximately $1.5 billion while achieving pretax savings of approximately $1.5 billion by 2010.
"This is a definite win for JPMorgan," said Sebastian Hindman, an analyst at SNL Financial, who said JPMorgan should be able to shoulder the $31 billion writedown to WaMu's portfolio.
RBI finds 254 fake currency notes in OBC
New Delhi, Sept 26: Public sector Oriental Bank of Commerce today said that 254 currency notes totalling Rs 1,43,600 at its Ghaziabad branch were found to be counterfeit in a routine inspection by the Reserve Bank.
RBI has inspected the currency chest of the Oriental Bank of Commerce branch in Ghaziabad, the lender said in a statement and added that it was a routine exercise.
Subsequent to detection of fake currencies, the bank has filed an FIR, the statement said.
The bank further clarified that there was no raid at any branch of the bank by any agency.
Three held with fake currency
Three persons were arrested today from Sardhana bypass area in Meerut and fake currency notes with a face value of Rs 7.5 lakh recovered from their possession.
Adil, Riyasat and Eikhlaq were arrested on a tip off, ADG law and order Brijlal told reporters here.
He said that they were in touch with a Pakistani agent and were involved in ciculation of fake currency notes in the country.
New Delhi, Sept 26: Public sector Oriental Bank of Commerce today said that 254 currency notes totalling Rs 1,43,600 at its Ghaziabad branch were found to be counterfeit in a routine inspection by the Reserve Bank.
RBI has inspected the currency chest of the Oriental Bank of Commerce branch in Ghaziabad, the lender said in a statement and added that it was a routine exercise.
Subsequent to detection of fake currencies, the bank has filed an FIR, the statement said.
The bank further clarified that there was no raid at any branch of the bank by any agency.
Three held with fake currency
Three persons were arrested today from Sardhana bypass area in Meerut and fake currency notes with a face value of Rs 7.5 lakh recovered from their possession.
Adil, Riyasat and Eikhlaq were arrested on a tip off, ADG law and order Brijlal told reporters here.
He said that they were in touch with a Pakistani agent and were involved in ciculation of fake currency notes in the country.
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