Marketplace Scratch Pad

Morning Reading

Scott Jagow Apr 17, 2009

Citigroup earnings are out. The bank ended a five-quarter losing streak, thanks in large part to $45 billion from US taxpayers. Other things to read:

Rattner named in SEC probe of NY kickbacks (Reuters)
“Steven Rattner, the leader of the Obama administration’s auto task force, was one of the investment-firm executives involved with payments now under scrutiny in a state and federal investigation into an alleged kickback scheme at New York state’s pension fund, The Wall Street Journal reported… Neither Rattner nor Quadrangle has been accused of any wrongdoing.”

The AIG Bailout Is Pushing Other Companies Into Bankruptcy (Clusterstock)
“Lawyers say (Credit Default Swap) holdings were also a factor in the default and filing for Chapter 11 protection of General Growth Properties this week. Restructuring advisers expect many more such cases involving so-called fallen angels, or firms originally investment grade, since CDS was widely sold on such names.”

Financial Unit Weighs on General Electric (New York Times)
“Nearly all the shortfall from estimates was accounted for by the 58 percent drop in revenue from G.E. Capital, the company’s big finance arm, which G.E.’s management wants to trim as a share of companywide business.”

Google CEO Schmidt Talks Up Twitter Search Deal (Silicon Alley Insider)
“Without commenting specifically about Twitter … you could imagine that … it could be a channel for product information, marketing information, real-time information for which you can hang advertising products, whether it’s a text ad or a video ad or so forth off of it … It strikes me that’s a logical strategy for them to pursue and something that we would be very happy to pursue with them and all other players in that space.”

Boston Red Sox owner interested in the Globe? (Boston Herald)
Red Sox principal owner John Henry has signaled his willingness to take on the troubled Boston Globe as part of a deal to buy The New York Times [NYT] Co.’s stake in his baseball team, sources say.

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