Obbligazioni societarie CIT Group, SLM, GMAC e le finanziarie USA che (forse) si salveranno diventando banche
- Creatore Discussione Imark
- Data di Inizio
Imark
Forumer storico
Intanto, per la serie "morti che camminano"...
GMAC:$5.6 Billion New Capital Raising Subject Of Discussion With Fed
August 04, 2009: 10:34 AM ET
BOSTON -(Dow Jones)- GMAC Inc. said it was in discussions with the Federal Reserve Board related to the $5.6 billion the lender has to raise in new capital by Nov. 9.
GMAC has to raise this capital to satisfy the requirements of the government- conducted stress tests earlier this year. The lender could raise these funds through a mix, including issuing new equity, converting other capital securities into common equity, divesting its businesses or asking for additional federal help.
The $5.6 billion is "still a subject of discussion" between the company and the Fed, said Robert Hull, GMAC's chief financial officer, during a discussion Tuesday on the company's second-quarter results. Hull said GMAC doesn't "have a clear answer or one we could disclose."
The lender has until Nov. 9 to raise the required capital.
Hull also said the company would like to issue the rest of the government- backed debt allowed under a program administered by the Federal Deposit Insurance Corp. This federal program is slated to expire by the end of October.
GMAC said in June it will need written approval from the FDIC before it issues any more cheaply priced debt insured by the regulator. At the time, the FDIC said it required GMAC to diversify the overall funding of Ally Bank, the rebranded GMAC Bank unit, and to focus on lowering the bank's deposit costs.
The lender got the much-awaited go-ahead to issue as much as $7.4 billion of debt guaranteed by the FDIC in May. Under this arrangement, GMAC sold $4.5 billion of bonds on June 3.
The ability to sell this type of debt was a central plank in the strapped lender's conversion to a bank-holding company in December.
Hull said that "no options are off the table" for GMAC's ailing mortgage unit, Residential Capital LLC, which reported a loss of $1.8 billion for the second quarter. ResCap, whose subprime-loan business blew up, has been struggling to turn around its fortunes. But "as long as we see the functionality of the business, we'll stay in it." Hull said GMAC wasn't ready to pull the rug from under ResCap, given the lender's "core strengths" of originating and servicing mortgages.
GMAC is also "looking very hard at leasing," said Hull. The lender quit extending new auto leases in 2008, primarily because it was strapped for capital. At the time, leasing comprised about 20% of GMAC's lending business. GMAC hasn't yet "announced a hard re-entry into the leasing world," said Hull, adding that if the company found the balance between the returns and risks related to leasing, it "will absolutely do it."
Earlier Tuesday, GMAC reported a second-quarter loss of $3.9 billion, compared with a year-earlier loss of $2.48 billion. The second-quarter loss is driven primarily by a charge related to the lender's incorporation and continued red ink stemming from souring mortgage loans.
GMAC also squirreled away more funds to reserve against future potential losses, and knocked down the value of its commercial insurance unit as it readies the unit for a potential sale.
The losses were offset by a $7.5 billion infusion from the U.S. Treasury Department and improved results at the lender's auto finance division aided by higher values on used cars.
Imark
Forumer storico
Sospende il dividendo su 4 serie di preferred stocks e annuncia il completamento dello swap sul bond in scadenza in agosto, con partecipazione ritenuta in misura sufficiente a dare corso all'offerta.
CIT draws down credit, suspends preferred divs
Business lender CIT Group takes remaining $1B under credit line, suspends preferred dividends
NEW YORK (AP) -- Commercial lender CIT Group Inc., which is trying to avoid filing for bankruptcy protection, said Friday that it has received the remaining $1 billion available under a $3 billion credit agreement and is suspending preferred dividend payments.
The company, which is one of the largest U.S. lenders to small and midsize businesses, said it will use a substantial portion of the new borrowing to support its small and middle market customers.
Suspending the dividends on four series of preferred stock will improve liquidity and preserve capital during its restructuring, CIT said.
The company also reaffirmed that it has received enough offers to complete a debt repurchase program. CIT, which nearly collapsed last month, said earlier this week that as of last Friday almost 65 percent of $1 billion in bonds due Aug. 17 had been tendered for repurchase. The company needed 58 percent of the debt to be tendered for repurchase to complete the deal. The tender offer expires on Aug. 14.
The tender offer was launched last month at the same time CIT received the emergency $3 billion loan from some of its largest bondholders. CIT turned to, and received funding, from its bondholders only after days of round-the-clock negotiations for a government-led bailout failed.
If CIT collapsed, the retail sector would be hit particularly hard. CIT serves as short-term financier to about 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation. Analysts say 60 percent of the apparel industry depends on CIT for financing.
CIT received $2.3 billion from the government's Troubled Asset Relief Program last fall -- money that could be lost if CIT files for bankruptcy.
The company had nearly collapsed last month under a heavy debt load.
Shares of CIT Group rose 9 cents, or 5.6 percent, to $1.71 in morning trading. The stock has traded in a range of 31 cents to $13 over the past year.
CIT draws down credit, suspends preferred divs
Business lender CIT Group takes remaining $1B under credit line, suspends preferred dividends
- On Friday August 7, 2009, 10:43 am EDT
NEW YORK (AP) -- Commercial lender CIT Group Inc., which is trying to avoid filing for bankruptcy protection, said Friday that it has received the remaining $1 billion available under a $3 billion credit agreement and is suspending preferred dividend payments.
The company, which is one of the largest U.S. lenders to small and midsize businesses, said it will use a substantial portion of the new borrowing to support its small and middle market customers.
Suspending the dividends on four series of preferred stock will improve liquidity and preserve capital during its restructuring, CIT said.
The company also reaffirmed that it has received enough offers to complete a debt repurchase program. CIT, which nearly collapsed last month, said earlier this week that as of last Friday almost 65 percent of $1 billion in bonds due Aug. 17 had been tendered for repurchase. The company needed 58 percent of the debt to be tendered for repurchase to complete the deal. The tender offer expires on Aug. 14.
The tender offer was launched last month at the same time CIT received the emergency $3 billion loan from some of its largest bondholders. CIT turned to, and received funding, from its bondholders only after days of round-the-clock negotiations for a government-led bailout failed.
If CIT collapsed, the retail sector would be hit particularly hard. CIT serves as short-term financier to about 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation. Analysts say 60 percent of the apparel industry depends on CIT for financing.
CIT received $2.3 billion from the government's Troubled Asset Relief Program last fall -- money that could be lost if CIT files for bankruptcy.
The company had nearly collapsed last month under a heavy debt load.
Shares of CIT Group rose 9 cents, or 5.6 percent, to $1.71 in morning trading. The stock has traded in a range of 31 cents to $13 over the past year.
Gaudente
Forumer storico
Madonna che facce da culo
Ma avessero il coraggio di dire che il motivo per il quale non possono lasciare andare a fondo ResCap e' che tramite lei controllano la Ally Bank che a sua volta e' la patetica scusa per mantenere la qualifica di Holding bancaria e quindi poter partecipare al TARP e alle altre regalie federali...
http://en.wikipedia.org/wiki/GMAC_Bank#Structure
ResCap Holding is the parent for GMAC Mortgage, GMAC-RFC, Ally Bank, Ditech.com, and Homecomings Financial
http://en.wikipedia.org/wiki/Ally_Bank
Ally Bank is a unit of GMAC Financial Services (or GMAC), which recently became a bank holding company
Imark
Forumer storico
Ancora ritardi per CIT nel presentare i conti trimestrali del Q2/2009. Il mese scorso preannunciò una perdita eccedente 1,5 mld $ per il trimestre in questione...
CIT delays report, could have to file for bankruptcy
Tue Aug 11, 2009 7:50am EDT
NEW YORK (Reuters) - Troubled lender CIT Group Inc said on Tuesday it has delayed filing its second-quarter report with regulators and said if it could not complete its debt tender or arrange other financing, it would file for bankruptcy.
CIT is still reviewing assets and businesses that it may sell as well as the related valuation adjustments that must be included in the quarterly report, it said in a filing with the U.S. Securities and Exchange Commission.
New York-based CIT, which last month secured $3 billion in emergency funding from bondholders, has been battling to restructure its debt and avoid bankruptcy.
The company has launched a tender offer for its outstanding $1 billion floating-rate notes due August 17. In a filing on Tuesday, it said if this offer were successful, it would use the proceeds from its emergency funding to complete the tender and make the payment on the August 17 notes.
The 101-year-old lender had already postponed its results, originally expected on July 23, while arranging the emergency funding. It said last month it expected a second-quarter loss of more than $1.5 billion.
Shares in the company slipped slightly to $1.46 in premarket trading, down from $1.48 on Monday.
(Reporting by Elinor Comlay, editing by Gerald E. McCormick)
CIT delays report, could have to file for bankruptcy
Tue Aug 11, 2009 7:50am EDT
NEW YORK (Reuters) - Troubled lender CIT Group Inc said on Tuesday it has delayed filing its second-quarter report with regulators and said if it could not complete its debt tender or arrange other financing, it would file for bankruptcy.
CIT is still reviewing assets and businesses that it may sell as well as the related valuation adjustments that must be included in the quarterly report, it said in a filing with the U.S. Securities and Exchange Commission.
New York-based CIT, which last month secured $3 billion in emergency funding from bondholders, has been battling to restructure its debt and avoid bankruptcy.
The company has launched a tender offer for its outstanding $1 billion floating-rate notes due August 17. In a filing on Tuesday, it said if this offer were successful, it would use the proceeds from its emergency funding to complete the tender and make the payment on the August 17 notes.
The 101-year-old lender had already postponed its results, originally expected on July 23, while arranging the emergency funding. It said last month it expected a second-quarter loss of more than $1.5 billion.
Shares in the company slipped slightly to $1.46 in premarket trading, down from $1.48 on Monday.
(Reporting by Elinor Comlay, editing by Gerald E. McCormick)
Imark
Forumer storico
Secondo me, in un primo tempo ha cercato di stabilizzare un po' tutti i soggetti a rischio, l'autunno scorso, così da evitare una sorta di effetto domino che sarebbe stato devastante subito dopo Lehman... stabilizzati un minimo i mercati, mi sembra abbia lasciato intendere già con GM che non è che si possa sempre sperare che pantalone paghi... e per GMAC, non è ancora detta l'ultima parola, IMHO...
- AUGUST 11, 2009, 11:57 A.M. ET
(Updates with further information from filing and analyst comment; adds no comment from CIT spokesman)
By Kate Haywood
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--CIT Group Inc. (CIT) on Tuesday delayed filing its quarterly report with the Securities and Exchange Commission, as it continues to hammer out a restructuring plan with its bondholders.
In a regulatory filing, CIT said it couldn't meet Monday's deadline "without unreasonable effort and expense" during its restructuring.
It said it expects to file its earnings statement by Monday. CIT stressed that its steering committee of bondholders doesn't intend for the company to file for bankruptcy protection but "rather will pursue restructuring efforts as part of the comprehensive restructuring plan to enhance the company's liquidity and capital position." CIT, whose results originally were due July 23, didn't completely rule out a bankruptcy filing.
"As expected, they're in the process of pursuing an out-of-court restructuring solution," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. Curt Ritter, a spokesman for CIT, declined to comment outside what was said in the filing.
CIT shares were down 21% in recent trading at $1.17.
The struggling century-old commercial lender, which has been facing a worsening liquidity crisis as its customers drew down credit lines amid fears they might disappear, has been working in recent weeks to avoid filing for Chapter 11.
CIT gave itself more breathing room last week by tweaking the terms of a crucial tender offer for $1 billion of floating rate notes due Monday and stopping dividends on some preferred stock.
In Tuesday's filing, CIT said the firm's senior management has been spending a "significant amount" of time in its restructuring efforts during the last several weeks.
"Such efforts have prevented the Company to complete its preparation and review of the Form 10-Q on time to file it within the prescribed time period without unreasonable effort and expense," CIT said.
New York-based CIT secured a $3 billion emergency loan last month from a group of its six largest bondholders. It said last week that it had met conditions for the tender offer after the amount of floating rate notes tendered passed the amended 58% needed for it to be successful.
Even so, the filing still came with the caveat that if the pending tender offer isn't successfully completed, and CIT is unable to obtain alternative financing, an event of default under the provisions of the credit facility would result, and "the company could seek relief under the U.S. Bankruptcy Code." The final deadline for the tender is Friday.
CIT plans to use proceeds from the loan to fund the tender offer and make the payment on the floating rate notes, according to the filing.
CIT reiterated in the filing its expectation for a second-quarter loss of more than $1.5 billion. The prior year's $2.3 billion loss includes a $2.1 billion loss from discontinued operations related to the disposal of its home-lending business.
It also said that the credit-market stress, operating losses, credit-rating downgrades, and regulatory and cash restrictions have left "substantial doubt" about its ability to continue as a going concern
troppidebiti
Forumer storico
paologorgo
Chapter 11
passato il momento di panico, magari il "mercato" funziona...
Here’s a dirty little secret for you. The market actually works and we don’t need to bail out everyone. I guess that’s two secrets.
Remember how the imminent demise of CIT was going to tank small businesses from sea to shining sea? The usual suspects were in full Armageddon mode with predictions that if we let CIT go down it could wreak havoc on the economy. Smaller companies that relied on CIT would topple like dominoes, after all, the company counted over 1 million of these precious darlings as customers, or so they alleged with nary a statistic to back up their assertions.
Well guess what happened on the way to the party? CIT has been left to fend for itself and it looks very much as if the company’s customers are adapting very well, thank you. The WSJ’s Deal JournMeal notes a Foresight Analytics report that indicates CIT has fallen from the number one lender to small businesses to number 16. Looks like those small businessmen and women aren’t complete dolts. They smell smoke and figure they’ll move along before the fire.
Even more less surprising is that other lenders smelled the opportunity and have been picking up market share at CIT’s expense. From smaller players like Live Oak Banking to big guys like Wells Fargo (WFC) a lot of lenders have aggressively picked off CIT’s customers. Isn’t creative destruction wonderful?
The lessons seem obvious. Rarely is the economy as imperiled by the demise of a firm as the failed executives of that firm would like you to believe. Never is the damage going to be as extreme as those in the political class who have been bought and paid for by that failing firm would suggest. The probability that competitors will step in and limit the collateral damage is extremely high.
Refreshing, isn’t it, that a company can fail or come close, the system is allowed to work through the issues on its own and, Lordy, the sun comes up in the morning. Now that we’re out of crisis mode can we just keep this in mind and maybe let the economy separate the winners and losers.
http://seekingalpha.com/article/155410-cit-lessons-learned
Gaudente
Forumer storico
Il salvataggio di GMAC era necessario nell'ambito del Chapter 11 della Chrysler , bisognava assegnare a qualcuno il compito di finanziare l'acquisto a rate dei nuovi catorci prodotti dalla joint venture con la Fiat
