Good day, Bad day
GOOD DAY FOR: Shorting Circuit, after electronics retailer Circuit City filed for bankruptcy. The chain said last week it would close 155 stores, or a fifth of its locations. Circuit City, along with being hit by the credit crunch, has also been losing market share to larger competitors Best Buy and Walmart. Its stock closed at 25 cents a share last week. (Bloomberg)
BAD DAY FOR: Risky business, after the U.S. government increased the amount of its bailout of insurer AIG to $150 billion, from $85 billion. The new deal reduces the loan portion to $60 billion and adds the purchase of $40 billion of preferred shares and $52.5 billion of mortgage-backed securities. AIG also reported a record $24.5 billion quarterly loss. “AIG keeps getting hit square between the eyes by the housing-finance meltdown,” said Morningstar analyst Bill Bergman. “Risk controls at the company were clearly inadequate.” (Bloomberg)
Comment on this article
Recent comments | 9 total
digg del.icio.us stumbleUpon newsvine reddit furl