Washington Mutual Inc (WM.N) has filed a petition for Chapter 11 bankruptcy protection from creditors in U.S. bankruptcy court in Delaware.
In the voluntary petition filed late Friday, the company listed assets of $32.9 billion, and debts of $8.2 billion, putting it in the top 10 largest U.S. bankruptcy cases ever filed.
Bank of New York Mellon (BK.N), as a trustee for debtholders, was listed as the company's largest creditor.
According to the petition, Washington Mutual is being represented by New York law firm Weil Gotshal & Manges, which also represents Lehman Brothers Holdings Inc (
Its subsidiary, WMI Investment Corp, also filed for bankruptcy protection, Washington Mutual said in a statement.
The bankruptcy filing is a procedural step, as Washington Mutual was closed by the U.S. government this week in the largest U.S. bank failure in history. Its banking assets were sold to JPMorgan Chase & Co (JPM.N) for $1.9 billion.
(Reporting by Emily Chasan, Editing by Sandra Maler)
Iraq has signed preliminary deals worth billions of dollars with General Electric Co and Siemens for equipment to almost double electricity generation capacity, an energy official said on Saturday.
The deals with GE, Siemens and a third company would be worth a total of $7 billion to $8 billion, Iraq's Electricity Minister Karim Waheed told Reuters.
Years of war, sanctions and neglect have battered Iraq's power grid and the country suffers chronic power shortages. The capital Baghdad receives only a few hours of electricity a day. The deals would mark a big step in the country's reconstruction, Waheed said.
"These deals will help us to end the electricity supply problem by 2012," Waheed said on a private visit to the United Arab Emirates.
Iraq signed a memorandum of understanding (MOU) earlier this month for U.S. giant General Electric to supply turbines to generate 6,800 megawatts of power, Waheed said.
He declined to say how much Iraq would pay GE for the equipment, but said each megawatt would cost between $700,000 and $800,000. That would give a value of between $4.8 billion and $5.4 billion.
The country has signed a second MOU with Germany's Siemens to supply equipment to generate another 2,000 MW, he added. That deal would be worth between $1.4 billion and $1.6 billion.
Baghdad was negotiating with a third company for another 1,000 MW, he said, declining to give further details.
The three deals would enable Iraq to add around 10,000 MW to installed capacity by around 11,000 MW. Damage to the power stations, lack of maintenance and drought mean Iraq's actual power production is well under capacity at around 5,500 MW.
Demand stands at around 11,000 MW, Waheed said.
Iraq plans to approach engineering, procurement and construction (EPC) firms to build the plants once the deals are signed, he added.
While big international companies were still reluctant to send people to work in Iraq, improvements in security had improved Baghdad's chances of attracting companies to undertake the work, he said.
Iraqi oil officials will meet Russia's Technoprom Export on October 12 to review a $124 million deal to repair 400 MW of power generation capacity in the southern city of Basra.
The World Bank will fund the deal, he added.
The deal was one of several frozen after the U.S.-led invasion of Iraq in March 2003. Iraq is also negotiating with Russia's Power Machines to revive another old deal to build two plants with 160 MW of capacity each in Iraq's north, he added.
Iraq signed a deal with GE for three power plants worth $480 million in June.
(Editing by Janet Lawrence)
Financial authorities were examining ways to restore confidence in Fortis (
Financial authorities were contacting other institutions, a source familiar with the situation told Reuters on Saturday, although no particular solution was preferred and nothing concrete was likely to emerge before Sunday.
Asked about the talks, Belgian Prime Minister Yves Leterme told reporters after a party meeting: "We are being informed."
"It is crucial for people of this country who entrust their savings to a bank that we safeguard the credibility of these banks and, in particular, ensure that every person who has entrusted a bank with a euro can be sure of getting it back."
The stakes are high in Belgium, where Fortis is the biggest private sector employer and where over 1.5 million households, roughly half the country, bank with the group.
Veerle De Schryver, a spokeswoman for the Banking, Financial and Insurance Commission (CBFA), said: "The CBFA and the national bank are assessing initiatives to reestablish confidence in Fortis."
She added Belgian and Dutch financial authorities were in touch. "There will be communication by the end of the weekend."
The Dutch central bank (DNB) declined to comment, although DNB governor Nout Wellink, who is also a European Central Bank governing council member, canceled a Chicago trip to return to the Netherlands.
The banking and insurance group sought on Friday to reassure investors it was solvent and in no danger of collapse after market talk that it could become another credit crisis casualty.
Fortis is hoping to announce deals to sell off parts of its business by Monday in an attempt to show investors it can raise cash and restore confidence in the business, while buyers for the business may emerge over the weekend, local media reported.
As its shares plummeted more than 20 percent to 15 year-lows on Friday, Fortis called an emergency news conference to say its position was strong and that it would expand asset sales to as much as 10 billion euros ($14.6 billion) to raise cash.
After a fifth straight day of share declines, Fortis also named a new chief executive, nominating banking chief Filip Dierckx, 52, to replace interim CEO Herman Verwilst.
ASSET SALE SCRAMBLE
Dierckx and Fortis managers are scrambling to complete some deals this weekend, reported Dutch daily Financieele Dagblad, citing unnamed sources from Dutch bank ABN AMRO, which Fortis bought parts of last year.
"Fortis is working with all its power to sell business units during the crisis," the newspaper said.
Belgian newspaper De Tijd said the heads of Belgium's big banks and financial supervisors would hold talks over Fortis in a bid to restore confidence among savers and investors.
Several Belgian and Dutch media outlets cited France's BNP Paribas (
At the core of market concerns is Fortis' liquidity, but the financial group reminded investors that it was sitting on a funding base of 300 billion euros. The European Central Bank has also made clear that it is ready to fund any liquidity shortfalls as European money markets remain effectively frozen.
"They are feeling strong but developments go fast. Look at what happened with Lehman Brothers. Of course, we cannot compare Fortis to Lehman, they're different banks, but things can change quickly," said Rob Koenders of Dutch asset manager Harmony Vermogensbeheer, which holds Fortis shares.
In Turkey, where Fortis is listed (
"Fortis Turkey is still continuing its commercial activities successfully and it is growing in a stable fashion," the financial group said in a statement.
Weekends have become a tense time for financial institutions and investors because they have been marked recently by around-the-clock negotiations to save some prominent U.S. financial institutions.
Two weeks ago, U.S. investment bank Lehman Brothers (
A bailout deal in Washington could restore confidence in the European financial sector and together with a new CEO and a more open communication policy, Fortis could be saved, a senior Fortis insider told Reuters.
Verwilst told a conference call on Friday there was no way that Fortis would go bankrupt.
The biggest vulnerability for Fortis right now would be depositors withdrawing funds and forcing the bank to shore up more capital than it is capable of.
Fortis shares, which closed down 20 percent at 5.2 euros on Friday, have lost more than two-thirds of their value since buying the Dutch operations and asset management arm of ABN AMRO as part of a three-bank, 70 billion euros buyout consortium.
(Additional reporting by Gilbert Kreijger in Amsterdam, Antonia van de Velde and Paul Taylor in Brussels and Daren Butler in Istanbul; Editing by Dominic Evans)