Archive for August, 2011

IMF sees 200 billion euro capital gap at European banks

Wednesday, August 31st, 2011 | Finance News

BRUSSELS (Reuters) – The International Monetary Fund has estimated European banks could face a capital shortfall of 200 billion euros ($287 billion), a European source said on Wednesday.

The figure has prompted a fierce response from European officials who said the analysis was misleading, according to the Financial Times.

The newspaper, citing two officials, said the 200 billion euro figure was one estimate of the impact of marking sovereign bonds to market.

The IMF will publish the analysis in its regular Global Financial Stability Report ahead of the IMF and World Bank fall meetings of global finance leaders in late September. The FT cautioned that the figure was in a draft that could change.

"The IMF vision is biased," Elena Salgado, Spain's finance minister, told the FT, adding that the fund had been mistaken in looking only at potential losses without taking account of holdings of German Bunds, which have risen in price.

IMF Managing Director Christine Lagarde drew criticism from European policymakers this week after she called for a mandatory recapitalization of European banks.


Report: 25 firms paid more in CEO pay than taxes

Wednesday, August 31st, 2011 | Finance News

Twenty-five of the 100 largest U.S. corporations paid their chief executives more last year than they paid in federal income taxes, according to a report released Wednesday.

The nonprofit Institute for Policy Studies says the 25 CEOs averaged $16.7 million in salary and other 2010 compensation.

Most of the companies they ran, meanwhile, came out ahead at tax time. They collected tax refunds that averaged $304 million, based on a review of public filings. The think tank says the 25 firms that paid out more in CEO compensation than U.S. taxes reported average global profits of $1.9 billion.

The institute, based in Washington, describes itself as a community of public scholars that works with social movements to promote democracy and challenge corporate influence and military power.


Natural gas rises as power demand returns in East

Wednesday, August 31st, 2011 | Finance News

Natural gas, a major energy source for power plants, jumped nearly 4 percent Wednesday as power started to come back in the East following widespread outages caused by Hurricane Irene. Oil was slightly lower.

Here's how energy contracts traded Wednesday.

On the New York Mercantile Exchange:

Crude fell 9 cents to finish at $88.81 per barrel;

Gasoline rose 3.48 cents to end at $2.8763 per gallon;

Heating oil was up less than a penny to finish at $3.084 per gallon;

Natural gas rose 14.5 cents, or 3.7 percent, to end the day at $4.054 per 1,000 cubic feet.

On the ICE Futures exchange in London:

Brent crude rose 83 cents to finish at $114.85 per barrel.