| Failed pest destruction business owed more than $7m
Failed Canterbury pest-destruction business Target Pest had liabilities totalling more than $7 million when it went into receivership this year. More than a third of the money $2.6m was owed to the ASB Bank, about $2.2m to Environment Canterbury (ECan), $1.8m to unsecured creditors, and the balance to a range of other creditors. Target Pest Enterprises (TPE), wholly owned by ECan, and Target Pest Contracting (TPC), a wholly owned subsidiary of TPE, are now in liquidation. David Crichton and Keiran Horne, of Crichton Horne and Associates Ltd, were appointed liquidators last week after an application to the High Court by the ASB Bank, which is owed $2.6m. Crichton said yesterday that they would meet the receivers, who had first right to the company assets, and would be looking to see if there were other areas where funds could be recovered, he said.
US STOCKS-Dow, Nasdaq sag, S&P up as credit angst whips market
NEW YORK, Aug 10 (Reuters) - U.S. blue-chip stocks slipped, while the broader market edged higher on Friday after the Federal Reserve injected cash to shore up the banking system and ease anxieties over looming losses related to subprime mortgages. As in previous sessions during a week of wild swings, the market shifted direction dramatically in the last hour of trade, with the S&P 500 ending higher, while the Nasdaq and Dow finished well off their session lows. In an effort to calm the market, the U.S. Federal Reserve added cash to the banking system three times -- $38 billion in all -- and issued a statement that it would provide sufficient funds to prevent disruptions. It was the first time it had made such assurances since the Sept. 11 attacks six years ago. "People want to see how deep are these mortgage losses and how many creditors are really affected," said Andrew Kanaly, chairman of Kanaly Trust Co., an investment advisory firm based in Houston, Texas.
BRIEFING - ASIA REAL ESTATE - AUG 13, 2007
Housing industry groups say federal Labor's plan to offer tax incentives for investors to build low-cost rental homes is an encouraging step. Under the $A600 million ($US506.55 million) policy, officially unveiled by Opposition Leader Kevin Rudd in Canberra today, investors will receive an annual $A6,000 ($US5,065.5) tax break to build 50,000 homes to rent to eligible families at 20 per cent less than the average market rent. WATER ASSURED FOR SOUTH ROAD PROPERTIES LOCATORS IN CEBU CEBU CITY - A desalination plant and several deep wells located in the 295-hectare South Road Properties (SRP) will assure steady supply of water for locators in the city's multi-billion peso reclamation area. Cebu City Mayor Tomas Osmena said the city government and the Metro Cebu Water District (MCWD) are even discussing plans for the city to supply water to the water district.
Deutsche turns to Greenspan for banking advice
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Earnings: WaMu beats analyst estimates
Washington Mutual Inc. on Tuesday reported second-quarter earnings that beat analyst estimates as well as results from the same quarter a year ago, despite problems in the subprime mortgage market that continue to bedevil it and other lenders. The Seattle-based consumer bank and mortgage lender warned that it is seeing increasing levels of delinquent and defaulted loans, and not just in the subprime category, as housing prices stop increasing and in some markets actually decline. But WaMu executives said they believe the company's loan-loss reserves, combined with measures it has taken to reduce its presence in and dependence on the troubled subprime market, should be adequate should problems persist. "We have two years of setting up a defensive position," said WaMu Chief Executive Kerry Killinger.
KERRY KILLINGER / WASHINGTON MUTUAL CEO / "We have seen and will continue to see a number of mortgage banking ...
Kerry Killinger is chairman and CEO of Seattle's Washington Mutual Inc., which has about 2,200 banking branches in the West as well as New York and Connecticut, and another 500 loan offices nationwide. Killinger has been with Washington Mutual for a quarter of a century - including 17 years as the CEO - after stints in securities brokering and insurance. He has overseen 31 acquisitions that helped expand Washington Mutual from a regional S&L into the nation's largest thrift. Killinger met with Chronicle reporters and editors at a time when turmoil from the subprime market meltdown was beginning to spread to other parts of the financial and housing markets. Washington Mutual is a major originator of residential mortgages. Last month, the company said it would curtail its subprime lending, requiring full documentation of borrowers' income and no longer offering what are called 2/28 and 3/27 loans, which start with initial fixed terms of two or three years.
(AFX UK Focus) 2007-08-12 16:00 GMT: TFN NEWS BRIEFING: Banking and insurance highlights to 15:45 BST
2007-08-12 15:12:26 WestLB says has 'limited' exposure to US subprime loans DUESSELDORF, Germany (Thomson Financial) - German state bank WestLB AG has a 1.25 bln eur exposure to subprime-related securities through subsidiaries, a spokesman said yesterday, adding that the investment is "relatively limited" and the securities are highly rated. .
Small dip for stocks, Blackstone profits soar
Stocks gave up moderate gains in late trading and closed lower yesterday after the Fed and other central banks added more cash to banking systems. The New York Fed, which carries out the central bank's market operation, minutes after the opening bell announced $2 billion in overnight repurchase agreements, helping investors set aside some concerns about the tightness of credit. That followed a move by the Bank of Japan to put $5 billion into the markets and an addition by the European Central Bank of $65.3 billion. The ECB added more than $200 billion last week. Those actions follow similar injections by the Fed last week, and appeared to placate Wall Street for now. The Dow fell 3.01 to 13,236.53, while the S&P 500 was down a fraction to 1,452.92 and the Nasdaq lost 2.65 to 2,542.24.
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