Sustained buying demand in index pivotals helped market extend
early gains after opening on a buoyant note tracking gains in Asian
stocks and higher US index futures. Capital goods and metal stocks
were in demand. The market breadth was strong.
China�s Shanghai Composite surged 4.44% after the government on
Sunday, 9 November 2008, announced $586 billion in infrastructure
and public welfare spending to slow the crisis's impact on its
economy, the world's fourth-largest. Other Asian markets, too, were
firm. Key benchmark indices in Hong Kong, Japan, Singapore and
South Korea were up by between 1.55% and 3.39%. However Taiwan's
Taiwan Weighted was down 0.04% despite announcing 25 basis points
cut in interest rates for the fourth time in two months after
exports dropped in October 2008 by most in three years.
Trading in US index futures indicated the Dow will rise 126 points
at the opening bell.
Economic officials from 20 leading nations called Sunday for
increased government spending to boost the troubled global economy
and said developing countries deserve a prominent role in talks to
overhaul the world financial system. Each country will have to
design its own stimulus package to meet its specific needs, said
David McCormick, the US Treasury's undersecretary for international
affairs.
President-elect Barack Obama on Friday, 7 November 2008, vowed to
act swiftly to address the global financial crisis.
At 11:29 IST, the BSE 30-share Sensex was up 290.50 points, or
2.92%, to 10,254.70. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 298.67 points at the day�s high of
10,262.96 in mid-morning trade. At the day�s low of 10,095.90,
the Sensex rose 131.61 points in early trade.
The S&P CNX Nifty gained 92.50 points, or 3.11%, to 3,065.50
The market breadth, indicating the overall health of the market,
was strong on BSE with 1440 shares advancing as compared with 616
that declined. 6 shares remained unchanged.
The total turnover on the BSE amounted to Rs 1045 crore by 11:30
IST as copmpared to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 27 advanced while the rest
declined.
Capital goods shares spurted on renewed buying with the BSE capital
goods index advancing 4.38% to 7,970.08 and was the second biggest
gainer among the BSE sectoral indices.
Indian top engineering and construction firm by sales Larsen &
Toubro surged 5.66% to Rs 920.65 after its consortium with
Malaysia's Scomi Engineering Bhd won an order worth Rs 2460 crore.
Bharat Heavy Electricals, the country's largest power equipment
maker by sales gained 5.70% to Rs 1485.25
Metal shares dominated the list of Sensex gainers on hopes Chinese
demand will rise after the stimulus package.
India�s top aluminium and copper producer by sales, Sterlite
Industries jumped 11.76% to Rs 275.10 on 5.26 lakh shares. It was
the top gainer from the Sensex pack.
Tata Steel (up 9.73% to Rs 208.60) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India�s largest private sector company by market capitalization
and oil refiner Reliance Industries (RIL) advanced 4.41% to Rs
1272.50, ahead of verdict on the gas dispute case hearing with
National Thermal Power Corporation on 11 November 2008. The later
rose 4.86% to Rs 158.25
Reliance Infrastructure (up 6.26% to Rs 596.55), Jaiprakash
Associates (up 4.79% to Rs 91.90), and ICICI Bank (up 5.51% to Rs
455), were the other gainers from the Sensex pack.
Auto stocks were mixed after latest data showed fall in sales in
key segments in the month just gone by. India's top small car maker
by sales Maruti Suzuki India lost 1.20% to Rs 590.50 and was the
top loser from the Sensex pack.
Mahindra & Mahindra (up 0.10% to Rs 372.50), and Tata Motors (up
3.15% to Rs 163.90) rose on bargain hunting.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
IT pivotals were mixed as gains in rupee were offset by firm
American depository receipts' (ADR) on Friday, 7 November 2008 on
the New York Stock Exchange. The partially convertible rupee was at
47.20/21 per dollar, nearly 1% stronger than Friday's close of
47.65/66 per dollar. A rise in rupee impacts margins at IT pivotals
who derive a lion's share from exports to the US. The BSE IT index
was up 0.12% to 2,673.70
India's third largest IT exporter by sales Satyam Computer Services
rose 1.85% to Rs 282.15 as ADR jumped 10.64% and India's fourth
largest IT exporter by sales Wipro rose 1.36% to Rs 264.20 as ADR
advanced 6.51%, on the New York Stock Exchange on Friday, 7
November 2008.
However India's second largest IT exporter by sales Infosys slipped
0.69% to Rs 1253, despite ADR surging 7.97% on the New York Stock
Exchange on Friday, 7 November 2008.
India's largest IT exporter by sales Tata Consultancy Services fell
0.44% to Rs 522.25.
Aurobindo Pharma surged 4.29% to Rs 118 on receiving final approval
from the US Food & Drug Administration for manufacturing and
marketing Sertraline hydrochloride in 20 miligram strength. The
company made this announcement after trading hours on Friday, 7
November 2008.
Suzlon Energy declined 3.25% to Rs 68.40 after credit rating agency
CRISIL cut outlook on rating of the companyâ€(TM)s long-term bank
facilities to negative from stable.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, on the back
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
US stocks rose on Friday as bargain hunters scooped up shares at
multiyear lows after a big drop in the October 2008 payrolls was
less dire than feared. The Dow Jones industrial average jumped
248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced
26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index
added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex had risen 230.07 points or 2.36%
at 9,964.29 and the 50-unit S&P Nifty had gained 80.35 points or
2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and on positive global cues.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
ONGC spurted 4.93% to Rs 778.15 at 10:57 IST on BSE, snapping three
sessions of losses after its chief said that company was looking
for more acquisitions. Media reports quoted ONGC's chairman RS
Sharma on Saturday, 8 November 2008, as saying that ONGC was not
facing cash flow problems and was still looking for acquisition
opportunities despite the global financial crisis. Sharma added
that ONGC was looking at possible acquisitions in Africa and Latin
America.
Monday, November 10, 2008
Sensex spurts above 10,000 mark in opening trade
Key benchmark indices opened on a buoyant note tracking positive
Asian stocks and firm US index futures after China announced a $586
billion package to revive growth in the world's fourth-largest
economy. The BSE Sensex surged past the 10,000 mark and the S&P CNX
Nifty raced past the 3,000 mark in opening trade. Metal stocks
rallied on hopes Chinese demand will rise after the stimulus
package.
The Dow and Nasdaq futures were up 1.40% and 1.44% respectively,
indicating firm start today, 10 November 2008.
Most Asian markets were trading firm today, 10 November 2008.
China's Shanghai Composite surged 4.98% after it announced a
massive economic stimulus package worth $586 billion in an attempt
to bolster its weakening economy. The government has also promised
to loosen credit conditions and cut taxes.
Key benchmark indices in Hong Kong, Japan, Singapore and South
Korea were up by between 0.94% and 5.11%. However Taiwan's Taiwan
Weighted was down 0.76% despite announcing 25 basis points cut in
interest rates for the fourth time in two months after exports
dropped in October 2008 by most in three years.
At 10:25 IST, the BSE 30-share Sensex was up 203.75 points, or
2.04%, to 10,168.04. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 316.68 points at the day's high of
10,280.97. At the day's low of 10,095.90, the Sensex rose 131.61
points.
The S&P CNX Nifty gained 64.85 points, or 2.12%, to 3,036
The market breadth, indicating the overall health of the market,
was strong on BSE with 980 shares advancing as compared with 341
that declined. 34 shares remained unchanged.
The total turnover on the BSE amounted to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 26 advanced while the rest
declined.
Metal shares dominated the list of Sensex gainers surged on hopes
Chinese demand will rise after the stimulus package, with the BSE
Metal index advancing 5.91% to 5,456.76, the most among BSE
sectoral indices,
India's top aluminium and copper producer by sales, Sterlite
Industries jumped 8.88% to Rs 268 on 2.32 lakh shares. It was the
top gainer from the Sensex pack.
Tata Steel (up 4.71% to Rs 199.05) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) advanced 2.89% to Rs 1253
Jqaiprakash Associates (up 3.93% to Rs 91.05), ONGC (up 4.11% to Rs
772.05), and ICICI Bank (up 3.42% to Rs 446), edged higher from the
Sensex pack.
Auto stocks were mixed after latest data showing fall in October
2008 sales. Maruti Suzuki India (down 1.78% to Rs 587) and Mahindra
& Mahindra (down 1.52% to Rs 366.60), slipped
However India's top truck maker by sales Tata Motors rose 1.13% to
Rs 160.70.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
HDFC Bank, the country's largest private sector bank by market
capitalisation lost 2.62% to Rs 1060.95 and was the top loser from
Sensex pack.
Reliance Communications (down 1.21% to Rs 225.40), and TCS (down
0.87% to Rs 520), edged lower from Sensex pack.
Among the side counters, Firstsource (up 15.54% to Rs 19.70),
Arvind Mills (up 16.57% to Rs 19.01), and Aurobindo Pharma (up
13.48% to Rs 128.40), surged.
US markets surged on Friday, 7 November 2008 despite another round
of weak economic and earnings data on speculation that the federal
reserve will lower interest rates, after traders shrugged off a
bigger than expected loss in jobs. Nonfarm payrolls declined
240,000 in October 2008, lifting the unemployment rate to a 14-year
high of 6.5%. President-elect Obama said America needs a rescue
plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to
8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to
930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%,
to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at
9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to
2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and positive global cues.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, fuelled by
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
Asian stocks and firm US index futures after China announced a $586
billion package to revive growth in the world's fourth-largest
economy. The BSE Sensex surged past the 10,000 mark and the S&P CNX
Nifty raced past the 3,000 mark in opening trade. Metal stocks
rallied on hopes Chinese demand will rise after the stimulus
package.
The Dow and Nasdaq futures were up 1.40% and 1.44% respectively,
indicating firm start today, 10 November 2008.
Most Asian markets were trading firm today, 10 November 2008.
China's Shanghai Composite surged 4.98% after it announced a
massive economic stimulus package worth $586 billion in an attempt
to bolster its weakening economy. The government has also promised
to loosen credit conditions and cut taxes.
Key benchmark indices in Hong Kong, Japan, Singapore and South
Korea were up by between 0.94% and 5.11%. However Taiwan's Taiwan
Weighted was down 0.76% despite announcing 25 basis points cut in
interest rates for the fourth time in two months after exports
dropped in October 2008 by most in three years.
At 10:25 IST, the BSE 30-share Sensex was up 203.75 points, or
2.04%, to 10,168.04. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 316.68 points at the day's high of
10,280.97. At the day's low of 10,095.90, the Sensex rose 131.61
points.
The S&P CNX Nifty gained 64.85 points, or 2.12%, to 3,036
The market breadth, indicating the overall health of the market,
was strong on BSE with 980 shares advancing as compared with 341
that declined. 34 shares remained unchanged.
The total turnover on the BSE amounted to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 26 advanced while the rest
declined.
Metal shares dominated the list of Sensex gainers surged on hopes
Chinese demand will rise after the stimulus package, with the BSE
Metal index advancing 5.91% to 5,456.76, the most among BSE
sectoral indices,
India's top aluminium and copper producer by sales, Sterlite
Industries jumped 8.88% to Rs 268 on 2.32 lakh shares. It was the
top gainer from the Sensex pack.
Tata Steel (up 4.71% to Rs 199.05) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) advanced 2.89% to Rs 1253
Jqaiprakash Associates (up 3.93% to Rs 91.05), ONGC (up 4.11% to Rs
772.05), and ICICI Bank (up 3.42% to Rs 446), edged higher from the
Sensex pack.
Auto stocks were mixed after latest data showing fall in October
2008 sales. Maruti Suzuki India (down 1.78% to Rs 587) and Mahindra
& Mahindra (down 1.52% to Rs 366.60), slipped
However India's top truck maker by sales Tata Motors rose 1.13% to
Rs 160.70.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
HDFC Bank, the country's largest private sector bank by market
capitalisation lost 2.62% to Rs 1060.95 and was the top loser from
Sensex pack.
Reliance Communications (down 1.21% to Rs 225.40), and TCS (down
0.87% to Rs 520), edged lower from Sensex pack.
Among the side counters, Firstsource (up 15.54% to Rs 19.70),
Arvind Mills (up 16.57% to Rs 19.01), and Aurobindo Pharma (up
13.48% to Rs 128.40), surged.
US markets surged on Friday, 7 November 2008 despite another round
of weak economic and earnings data on speculation that the federal
reserve will lower interest rates, after traders shrugged off a
bigger than expected loss in jobs. Nonfarm payrolls declined
240,000 in October 2008, lifting the unemployment rate to a 14-year
high of 6.5%. President-elect Obama said America needs a rescue
plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to
8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to
930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%,
to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at
9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to
2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and positive global cues.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, fuelled by
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
Pre Market Report 10/11/2008
Key benchmark indices are likely to extend Friday's, 7 November 2008 gains tracking firm Asian indices boosted by China's nearly $600 billion spending plan to spur the economy. US markets had also rallied on Friday, 7 November 2008. SGX Nifty futures for November 2008 delivery added 42 points in Singapore.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Sunday, November 9, 2008
19 American banks go bust in ’08
Ravaged by the financial turmoil, the world’s largest economy, the US,
has this year seen the failure of as many as 19 banks - exactly half
the number of all publicly-listed banks in India.
According to the Federal Deposit Insurance Corporation, the US
regulatory body, which is often appointed as the receiver for failed
banks, the number of bank-failures in the past eight years has grown
to 46 - which is more than the total of 38 banks listed on the Indian
bourses.
Nearly half of the failures has been during the ongoing turmoil in the
US financial market, with a total of 21 banks having failed since
September last year and 19 since January this year, the FDIC data
shows.
The current year has already seen the highest number of bank failures
in the midst of the United States grappling with one of the worst
economic crisis since the Great Depression of 1930s.
Prior to 2008, the highest number of bank collapses was recorded in
2002, when 11 such entities failed.
In India, there are a total of 38 banks listed on the stock exchange,
which include 18 from the private sector and 20 from the public
sector.
On Friday, Houston-based Franklin Bank SSB and Security Pacific Bank
in Los Angeles became the latest bank failures in the US, forcing
state authorities to take them under their control.
Since August 2008 as many as 12 banks have gone bust - a period when
the current financial turbulence began to squeeze the economy.
They include Freedom Bank, Alpha Bank & Trust, Meridian Bank, Main
Street Bank, Washington Mutual Bank, Ameribank, Silver State Bank,
Integrity Bank, The Columbian Bank and Trust and First Priority Bank.
Before August this year, seven banks - First Heritage Bank, First
National Bank of Nevada, IndyMac Bank, First Integrity Bank, ANB
Financial, Hume Bank and Douglass National Bank - had collapsed.
Going by the FDIC data, there were no bank failures in 2005 and 2006.
On the other hand, only two banks had failed in 2000, the lowest
number in last eight years.
In 2007, just three banks failed in the country - Miami Valley Bank,
NetBank and Metropolitan Savings Bank.
The fall of Washington Mutual, the country’s largest savings and loan
entity, is one of the biggest bank failures this year. Better known as
WaMu, its larger rival JPMorgan Chase agreed to acquire the entity in
September.
JPMorgan bought deposits and branches of WaMu for about $1.9 billion,
in a deal brokered by the Federal administration.
Going by the available data, Bank of Honolulu and National State Bank
of Metropolis went bust in 2001.
Then next year, four banks collapsed - First Alliance Bank & Trust
Company, The Malta National Bank, Superior Bank and Sinclair National
Bank.
In 2003 and 2004, the number of banks which failed stood at seven.
They are Southern Pacific Bank, The First National Bank of
Blanchardville, Pulaski Savings Bank, Dollar Savings Bank, Guaranty
National Bank of Tallahassee, Reliance Bank and Bank of Ephraim.
has this year seen the failure of as many as 19 banks - exactly half
the number of all publicly-listed banks in India.
According to the Federal Deposit Insurance Corporation, the US
regulatory body, which is often appointed as the receiver for failed
banks, the number of bank-failures in the past eight years has grown
to 46 - which is more than the total of 38 banks listed on the Indian
bourses.
Nearly half of the failures has been during the ongoing turmoil in the
US financial market, with a total of 21 banks having failed since
September last year and 19 since January this year, the FDIC data
shows.
The current year has already seen the highest number of bank failures
in the midst of the United States grappling with one of the worst
economic crisis since the Great Depression of 1930s.
Prior to 2008, the highest number of bank collapses was recorded in
2002, when 11 such entities failed.
In India, there are a total of 38 banks listed on the stock exchange,
which include 18 from the private sector and 20 from the public
sector.
On Friday, Houston-based Franklin Bank SSB and Security Pacific Bank
in Los Angeles became the latest bank failures in the US, forcing
state authorities to take them under their control.
Since August 2008 as many as 12 banks have gone bust - a period when
the current financial turbulence began to squeeze the economy.
They include Freedom Bank, Alpha Bank & Trust, Meridian Bank, Main
Street Bank, Washington Mutual Bank, Ameribank, Silver State Bank,
Integrity Bank, The Columbian Bank and Trust and First Priority Bank.
Before August this year, seven banks - First Heritage Bank, First
National Bank of Nevada, IndyMac Bank, First Integrity Bank, ANB
Financial, Hume Bank and Douglass National Bank - had collapsed.
Going by the FDIC data, there were no bank failures in 2005 and 2006.
On the other hand, only two banks had failed in 2000, the lowest
number in last eight years.
In 2007, just three banks failed in the country - Miami Valley Bank,
NetBank and Metropolitan Savings Bank.
The fall of Washington Mutual, the country’s largest savings and loan
entity, is one of the biggest bank failures this year. Better known as
WaMu, its larger rival JPMorgan Chase agreed to acquire the entity in
September.
JPMorgan bought deposits and branches of WaMu for about $1.9 billion,
in a deal brokered by the Federal administration.
Going by the available data, Bank of Honolulu and National State Bank
of Metropolis went bust in 2001.
Then next year, four banks collapsed - First Alliance Bank & Trust
Company, The Malta National Bank, Superior Bank and Sinclair National
Bank.
In 2003 and 2004, the number of banks which failed stood at seven.
They are Southern Pacific Bank, The First National Bank of
Blanchardville, Pulaski Savings Bank, Dollar Savings Bank, Guaranty
National Bank of Tallahassee, Reliance Bank and Bank of Ephraim.
US car giants report large losses
US carmaker GM has reported a third quarter operating loss of $4.2bn
(£2.66bn) after Ford announced it lost $2.98bn during the same
period.
GM said it would run out of cash in the first half of 2009 if economic
and market conditions did not improve.
GM said it would cut jobs and costs and has also suspended merger
talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next
year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North
America by another 10%.
GM and Ford burned though $14.6bn in cash between them in the quarter.
No acquisition
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared
with a loss from continuing operations of $42.5bn a year ago.
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM
said it would shed white-collar jobs and cut $2.5bn in capital
spending in 2009.
Although in its statement it did not specifically refer to Chrysler,
GM said it was setting aside considerations for a "strategic
acquisition".
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the
third quarter of 2007, as vehicle sales in the US plunged to historic
lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said
it was looking at various solutions to support its balance sheet
(£2.66bn) after Ford announced it lost $2.98bn during the same
period.
GM said it would run out of cash in the first half of 2009 if economic
and market conditions did not improve.
GM said it would cut jobs and costs and has also suspended merger
talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next
year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North
America by another 10%.
GM and Ford burned though $14.6bn in cash between them in the quarter.
No acquisition
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared
with a loss from continuing operations of $42.5bn a year ago.
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM
said it would shed white-collar jobs and cut $2.5bn in capital
spending in 2009.
Although in its statement it did not specifically refer to Chrysler,
GM said it was setting aside considerations for a "strategic
acquisition".
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the
third quarter of 2007, as vehicle sales in the US plunged to historic
lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said
it was looking at various solutions to support its balance sheet
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