The Bank of England cut its benchmark interest rate by 0.5% to an all-time low of 1.5%, citing an “unusually sharp and synchronized downturn” in the world economy.
The leaders of three financial planning organizations have formed a coalition to represent the industry as Congress works to reform the financial services industry.
First-time jobless claims for unemployment benefits have fallen for the second consecutive week, according to a Department of Labor report.
Confidence among wealthy investors rebounded in December, though pessimism still lingers, according to a report from Spectrem Group.
Hard times aren’t over yet for The Goldman Sachs Group Inc. and Morgan Stanley, two investment banking powers that recently converted to bank holding companies.
Pennsylvania’s insurance commissioner yesterday seized control of Penn Treaty Network America Insurance Co., a foundering long term care insurer, because it’s having difficulty maintaining appropriate capital levels.
The U.S. equity market is likely to see a double-digit gain this year, while the economy shrinks by 2%, said .Robert C. Doll, vice chairman and chief equity investment officer of New York-based BlackRock Inc.
Cigna anticipates that most of the layoffs will be completed by the middle of this year and that all of the affected employees will be eligible for severance benefits and outplacement support.
Clients of Raymond James Financial Inc. who are stuck holding $1 billion of auction rate securities will have to hang onto the paper for months to come, even though several large firms have announced buybacks.
The nomination of Financial Industry Regulatory Authority Inc. chief Mary Schapiro to head the Securities and Exchange Commission has intensified worries about whether Finra will take over the regulation of financial advisers.
"Most of the bad economic news that can possibly happen has already happened."
"There is tons of money sitting on the sidelines and companies have tons of money sitting on their books."
"I think it will be a little bit bumpy for the economy and the markets for the first few months of the year, but then we will gain some traction," Mr. Glovsky said. He thinks the second half of 2009 will be strong.
Mr. Dinallo will focus on securities lending this year, asking each life insurance company about its approach toward these transactions and preparing to evaluate the carriers' programs.
In 2009, look for an increase in individual lawsuits, rather than class actions, filed by institutional investors such as pension funds and insurance companies in litigation stemming from the subprime debacle.
The stock market hasn't hit bottom yet, but by the end of 2009 it will have turned positive.
Despite the market turmoil, which caused a decrease in assets under management in 2008, financial advisers and the independent broker-dealers who serve them will see business boom in 2009.
"It will be a difficult year. We expect commercial-property investment volume to increase 15% from the depressed levels of 2008 as more distressed assets come to market," Mr. Bach said.
In the third or fourth quarter, he thinks think money will come back to the industry with a vengeance. Pension funds are going to realize that their asset allocations are out of whack, Mr. Lo said.
