May 8 2009
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
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Showing posts with label US. Show all posts
Showing posts with label US. Show all posts
Sunday, 19 July 2009
Ten US banks fail recession test
May 8 2009
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
Citigroup is being asked to raise an additional £3.3 billion to make it secure. Goldman Sachs, JP Morgan Chase and American Express were among the nine banks deemed not to need to raise additional funds.
The stress tests were designed to help regulators assess the ongoing financial stability of US banks.
They look at two models of the economy going forward - one in which unemployment reaches 8.8% next year and house prices drop a further 14%. In the second scenario, joblessness rises to 10.3% and property slips another 22%.
Banks facing a shortfall under the model will have to come up with a plan to raise additional capital by mid June.
If they cannot do so independently, they may have to turn to the government's £466 billion financial bailout fund.
sourced from Runcorn and Widnes Weekly News
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
Citigroup is being asked to raise an additional £3.3 billion to make it secure. Goldman Sachs, JP Morgan Chase and American Express were among the nine banks deemed not to need to raise additional funds.
The stress tests were designed to help regulators assess the ongoing financial stability of US banks.
They look at two models of the economy going forward - one in which unemployment reaches 8.8% next year and house prices drop a further 14%. In the second scenario, joblessness rises to 10.3% and property slips another 22%.
Banks facing a shortfall under the model will have to come up with a plan to raise additional capital by mid June.
If they cannot do so independently, they may have to turn to the government's £466 billion financial bailout fund.
sourced from Runcorn and Widnes Weekly News
Monday, 26 January 2009
McDonalds to open 1,000 stores this year
[polldaddy poll="1314875"] | |
McDonald's to open 1,000 stores | |
US fast-food chain McDonald's says it plans to open 1,000 new restaurants this year. The world's largest hamburger chain also said fourth-quarter net income fell 23% to $985.3m (£710m), from $1.27bn a year before. Revenue fell to $5.57bn from $5.75bn, even though global same-store sales rose 7.2%, as the firm was hit by the strong dollar. In the US, the firm raised the price of its Double Cheeseburger in November. Announcing the results, chief executive Jim Skinner said: "For 2009 we plan to invest $2.1bn in capital to open about 1,000 new restaurants and reinvest in our existing locations." Despite beef, cheese, and other ingredients rising in price, the company reported an 8% fall in total operating costs and expenses. McDonald's has seen sales rise in the economic downturn, helped by its low prices and ubiquity of its outlets. In the quarter, its same-store sales in the US rose 5% on the year before. International same-store sales were also ahead, rising 7.6% in Europe and 10% in the Asia-Pacific, Middle East and Africa division. sourced from The BBC | |
McDonald's to open 1,000 new stores
Despite falling short of Wall Street expectations, the burger chain experiences better-than-expected profit and will open 1,000 new restaurants.
NEW YORK (Reuters) -- McDonald's Corp. reported a better-than-expected quarterly profit on Monday though revenue fell short of Wall Street expectations due to a stronger U.S. dollar, and its shares fell more than 2%.
The world's largest hamburger chain also said it would open 1,000 restaurants this year.
Fourth-quarter net income fell about 23% to $985.3 million, or 87 cents per share, from $1.27 billion, or $1.06 per share, a year earlier, when results included a large tax-related benefit.
Analysts on average were expecting earnings of 83 cents per share, according to Reuters Estimates.
sourced from CCN Money read full article
McDonalds to open 1,000 stores this year
[polldaddy poll="1314875"] | |
McDonald's to open 1,000 stores | |
US fast-food chain McDonald's says it plans to open 1,000 new restaurants this year. The world's largest hamburger chain also said fourth-quarter net income fell 23% to $985.3m (£710m), from $1.27bn a year before. Revenue fell to $5.57bn from $5.75bn, even though global same-store sales rose 7.2%, as the firm was hit by the strong dollar. In the US, the firm raised the price of its Double Cheeseburger in November. Announcing the results, chief executive Jim Skinner said: "For 2009 we plan to invest $2.1bn in capital to open about 1,000 new restaurants and reinvest in our existing locations." Despite beef, cheese, and other ingredients rising in price, the company reported an 8% fall in total operating costs and expenses. McDonald's has seen sales rise in the economic downturn, helped by its low prices and ubiquity of its outlets. In the quarter, its same-store sales in the US rose 5% on the year before. International same-store sales were also ahead, rising 7.6% in Europe and 10% in the Asia-Pacific, Middle East and Africa division. sourced from The BBC | |
McDonald's to open 1,000 new stores
Despite falling short of Wall Street expectations, the burger chain experiences better-than-expected profit and will open 1,000 new restaurants.
NEW YORK (Reuters) -- McDonald's Corp. reported a better-than-expected quarterly profit on Monday though revenue fell short of Wall Street expectations due to a stronger U.S. dollar, and its shares fell more than 2%.
The world's largest hamburger chain also said it would open 1,000 restaurants this year.
Fourth-quarter net income fell about 23% to $985.3 million, or 87 cents per share, from $1.27 billion, or $1.06 per share, a year earlier, when results included a large tax-related benefit.
Analysts on average were expecting earnings of 83 cents per share, according to Reuters Estimates.
sourced from CCN Money read full article
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