Financial Biz Cheat Sheet: Allstate Hit Hard by Hurricane Irene Claims, Morgan Stanley Chairman Steps Down
Newcastle Investment (NYSE:NCT) shares are soaring after it increased its quarterly dividend by 50% to $0.15 per share, maintaining $85 million of unrestricted cash to invest into opportunities.
Morgan Stanley (NYSE:MS) Board Chairman John Mack will be stepping down by the end of the year. CEO James Gorman will be taking Mack’s spot while continuing in his duties as chief executive.
Hot Feature: Mortgage Default Filings Climbed 33% in August
Alliance Data Systems (NYSE:ADS) is reporting that the delinquency rate on private-label credit cards it oversees for retailers fell in August on a year-over-year basis, though it increased slightly from the previous month. Charge-offs declined on both a Y/Y and M/M basis through the end of July.
Allstate (NYSE:ALL) says pre-tax catastrophe losses will total $735 million for the month of August, primarily due to Hurricane Irene.
Capital One (NYSE:COF) has reported a sharp rise in charge-offs, climbing from 3.77% in July to 4.1% in August. Delinquencies also rose, from 3.37% to 3.43%.
CNinsure (NASDAQ:CISG) shares plummeted today after the Chinese insurance distributor stated that a proposal to go private, made by Chairman and CEO Yinan Hu in May, had been withdrawn due to “recent market conditions and near term volatility”.
Fundtech (NASDAQ:FNDT) has received a new offer from private-equity company GTCR that tops an earlier all-stock bid from A1 (NASDAQ:SONE). Fundtech will ask its board to terminate the merger agreement with S1 and go with the new $23.33/share cash offer.
UBS (NYSE:UBS) trader Kweku Adoboli was arrested this morning in connection with a $2 billion loss. Adoboli worked in the Delta1 trading division, described by the Financial Times as the last domain of prop trading left in the banking sector.
Citigroup (NYSE:C) is in advanced talks with the SEC to settle allegations that the bank held short positions against a $1 billion mortgage-bond CDO it sold in 2007. The SEC is pursuing a $200 million fine, but Citi is negotiating for a $5 million fine with Credit Suisse (NYSE:CS), the CDO’s collateral manager.