Canada banks, insurer face up to Lehman fallout
TORONTO (Reuters) - Canada's big banks largely shrugged off
the weekend bankruptcy filing of Lehman Brothers Holdings
, but the third-largest Canadian life insurance company
said on Monday it will take an unspecified hit to third-quarter
earnings because of its Lehman bond holdings. Canadian bank and
insurance stocks fell after a dramatic weekend during which
Lehman Brothers sought bankruptcy protection, Merrill Lynch
agreed to be bought by Bank of America and
insurance giant American International Group was waging
a fight for survival.
Fording tumbles on worries Teck deal in jeopardy
CALGARY, Alberta (Reuters) - Fording Canadian Coal Trust
units tumbled 10 percent on Monday as investors
worried that its takeover by Teck Cominco Ltd could
be derailed by the U.S. credit crisis. Merrill Lynch ,
part of a syndicate providing Teck with a hefty credit facility
for the $14.1 billion deal, has agreed to be taken over by Bank
of America Corp amid financial industry tumult that
prompted a big drop in equity markets on Monday.
Toronto stocks plunge in wake of Lehman collapse
TORONTO (Reuters) - The main index of the Toronto Stock
Exchange's plunged 4 percent on Monday in a broad selloff
triggered by the failure of Wall Street investment bank Lehman
Brothers and a big drop in the price of oil. The
bankruptcy protection filing by Lehman, as well as the sale of
Merrill Lynch and the fight for survival unfolding at
U.S. insurance giant American International Group , sent
investors fleeing from every sector of the Toronto market.
Sun Life to take charge related to Lehman
TORONTO (Reuters) - Sun Life Financial said on
Monday it expects to take a charge in the third quarter related
to its Lehman holdings after the bankruptcy filing of Lehman
Brothers Holdings Inc over the weekend. Sun Life,
Canada's third-largest life insurance company, said the amount
of the charge depends on a number of factors, including the
amount of expected recoveries and actuarial cash flow testing
that is not performed until the close of the quarter on
September 30.
Bank of Canada pumps most into markets since 2000
OTTAWA (Reuters) - Canada's central bank on Monday pumped
the biggest amount of cash into markets since 2000, while
policy makers sought to shore up confidence after the deepening
U.S. financial crisis claimed two Wall Street giants and shook
world markets. News of a bankruptcy filing by Lehman Brothers
Holdings Inc and the sale of Merrill Lynch
jolted investors worldwide and in Canada raised concerns that a
worsening U.S. economic outlook could harm Canada's economy
further due to its heavy reliance on trade with its neighbor.
Canadian dollar sags on market concerns, lower oil
TORONTO (Reuters) - The Canadian dollar slid 0.6 percent
against the U.S. dollar on Monday after Lehman Brothers
Holdings Inc filed for bankruptcy protection, giving a
bid to the greenback, and as commodity prices weakened.
Canadian bond prices saw big gains along with the larger U.S.
market as investors moved out of battered equities and into
more secure government debt.
Oil dives $4, hammered for second day by bank woes
SINGAPORE (Reuters) - Oil tumbled over 4 percent to a
seven-month low on Tuesday, in free fall for a second day as
Lehman Brothers' collapse made investors ditch oil for
safe-haven assets, and on fears the credit crisis will hurt the
real economy. Reports that Hurricane Ike caused minor damage to
U.S. oil platforms and refineries also weighed on prices,
adding to the previous session's more than $5 fall and almost
37-percent decline from its peak above $147 in mid-July.
AIG in focus as financial meltdown spreads
HONG KONG (Reuters) - American International Group Inc,
thrown a $20 billion lifeline by New York state officials, came
under fresh pressure for survival on Tuesday as ratings
agencies downgraded the insurer's debt and the global financial
sector meltdown spread. Asian markets, many of them closed for
a holiday on Monday, tumbled as investors absorbed the
weekend's dramatic events on Wall Street, where Lehman Brothers
filed for bankruptcy protection and rival Merrill Lynch
agreed to be sold to Bank of America for $50
billion.
Lehman files for bankruptcy, plans to sell units
NEW YORK (Reuters) - Lehman Brothers Holdings Inc
filed for bankruptcy protection after trying to finance too
many risky assets with too little capital, becoming the largest
U.S. bankruptcy and the highest-profile casualty of the global
credit crisis. Lehman is expected to sell most of its
businesses, including its broker-dealer operations and its
Neuberger Berman asset management unit.
Lehman in talks to sell part of firm to Barclays: report
NEW YORK (Reuters) - Lehman Brothers is in talks to
sell parts of the company to Barclays Plc , with the
potential for an agreement to be reached as early as Tuesday,
the Wall Street Journal reported on its website. The report
late on Monday came after Barclays confirmed it had considered
a bid for all of Lehman, whose holding company filed for
Chapter 11 bankruptcy protection on Monday after failing to
find a buyer over the weekend.
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