Bob Reed has more than 25 years of journalism experience. He has been a reporter, editor, columnist and analyst for major publications and news organizations including, Bloomberg Business News, Crain
Consumer-product giant Procter & Gamble keeps emptying its shelves of well-known but unwanted brands. The latest to go is the Noxzema skin care line which was sold this week to Alberto-Culver, a suburban Chicago-based hair and skin care company. Alberto is acquiring Noxzema's rights and trademarks...
The credit crunch has turned some of the nation's largest manufacturers into lenders of last resort for many customers. But now it appears the "factory bank" is starting to close the loan office. As traditional commercial lending tightens, many small and mid-sized companies are relying more on their manufacturing and equipment suppliers for loans to help pay for new ...
Morningstar Inc., the Chicago-based company best known for rating mutual funds, isn't slowing down its quest to become an international investment research powerhouse despite the gloomy global economy. With the announced purchase today of United Kingdom-based Fundamental Data Limited, Morningstar CEO Joseph Mansueto continues bulking up the firm's research capabilities beyond its original...
Throughout this ongoing economic crisis, the hardcore anti-bailout crowd crows that everything can be fixed if we just act more like multi-billionaire Warren Buffett. Apparently, Buffett sees gold where others envision only muck. So the "Oracle of Omaha" is digging deep--but not too deep, mind you--to acquire...
Which do you prefer -- a bank merger requiring government assistance or one that does not? That's the big question revolving around today's surprise announcement that Wells Fargo has entered a deal to acquire Wachovia for nearly $15 billion in stock. This agreement seeks to supplant Citigroup's previously announced deal to...
In the coming months, the number of hedge funds will plummet. Pressured by the massive consolidation within the commercial banking industry and fallout from the global credit crunch, hedge fund industry consolidation --which began a few years ago -- is accelerating. Presently, the hedge fund industry is worth...
The sharks are circling Europe -- How does that goofy Disney song go? "It's a small world, after all..." Well, today's stock market plunge of nearly 800 points proves that point. It is a small world and we're in the midst of a full-blown global economic crisis....
If you thought the federal government's $700 billion economic recovery plan was a huge gamble, then hang on. You ain't seen nothing yet. In a dramatic move aimed at breaking the credit crunch, the Federal Reserve is essentially agreeing to lend short-term money to major corporations -- a move that could also...
It's going to take more than a mere interest rate cut to raise the banking industry's comfort level. In reaction to an unprecedented interest-rate cut by six central banks throughout the world, major U.S.-based commercial banks today began lowering their prime lending rate, a benchmark that lenders typically charge their best...
The Federal Reserve's dramatic attempt to end the credit crunch was the topic of a recent radio report aired on the Marketplace business show, heard nationwide over many public radio stations. I was among those participating in this report by Washington Bureau Chief John Dimsdale, who explores...
The British bank rescue plan is coming! The British bank rescue plan is coming! Treasury Secretary Hank Paulson doesn't resemble Paul Revere, our country's famous midnight rider, but he's definitely signaling that a British-backed effort to resolve the banking and economic crisis is...
U.S. Treasury Secretary Hank Paulson couldn't stomach the possibility of Japan's Mitsubishi UFJ Financial Group walking away from its announced investment in wobbly Morgan Stanley. So Paulson made Mitsubishi an offer it couldn't refuse: The U.S. will back your play. Despite the mass infusion of taxpayer-backed funds...
Under the U.S. government's economic rescue plan, the nation's biggest banks get richer. And the smaller banks? Well, they get to wait in line. The U.S. Treasury will quickly invest about $125 billion to purchase ownership stakes in nine of the nation's largest banks, including JP Morgan...
Would you invest in a bank that's partially owned by the Bush Administration? That's the question private investors worldwide will be exploring as they evaluate the impact of the federal government's decision to directly invest in the nation's largest banking concerns. In return for...
Citadel Investment Group, one of the world's largest hedge fund managers, is under heavy attack. And that's making Ken Griffin, the company's founder, fighting mad. Chicago-based Citadel, with nearly $20 billion under management, is reeling from what Griffin is labeling the "single-worse month, by far, in the...
The ubiquitous credit card industry is getting squeezed by the country's economic pinch. Purveyors of plastic are tightening lending standards by lowering borrowing limits, raising interest rates, discouraging rolling over balances and boosting fee penalties on late payments. They're also diligently monitoring customer credit...
A growing number of U.S. consumers, already depressed about the state of the economy, are beginning to worry that big banks are bad business. A recent Gallup Poll survey finds that two-thirds of Americans say they've been hurt by the credit crisis, stock market plunge and related...
Big regional banks look like merger bait -- Non-megabanks such as National City, Fifth Third Bancorp and Keycorp all posted big losses in the third quarter, and that weak performance -- combined in some cases with low stock prices -- make them look a lot more like merger candidates. For...
The proposed economic "recovery" plan is starting to resemble a Christmas tree as lawmakers rush to hang shiny new ornaments on the controversial legislation that's now before Congress. Earlier this week, a stripped-down version of the proposed $700 billion bill failed to pass the U.S. House of Representatives by 12 votes, a move that...
The ultimate fate of the proposed $700 billion economic bailout is up in the air, but one thing is certain: Never underestimate the anger of the American people. The bailout, which failed to pass the House of Representatives today, is deeply unpopular with many taxpayers. Even after...
Bob Reed has more than 25 years of journalism experience. He has been a reporter, editor, columnist and analyst for major publications and news organizations including, Bloomberg Business News, Crain
