http://www.bloomberg.com/apps/news?pid=20601087&sid=axX9PCd9qLd0

In a filing with the US Bankruptcy Court in Manhattan, failed bank Lehman Brothers has said that Barclays Plc got a significant discount on the purchase of former’s North American brokerage business and some real estate. Not only this, the material components of the deal were not disclosed before the court, Lehman Brothers’ lawyers have argued. Certain executives of the US giant agreed to give discount worth $5 billion to the UK bank on the book values of the securities. Barclays representatives, however, say that the claims by Lehman are opportunistic and the US company wishes to re trade the deal in the wake of the improved economic situation. Creditors in Lehman Brothers are in the meanwhile pressing that Barclays should return the assets of the former company. The assets of Lehman Brothers were sold off in a quick deal that was approved by the SEC and the Federal Reserve in a bid to calm the global stock markets. But was the decision appropriate or the pricing right?

http://news.yahoo.com/s/ap/20090831/ap_on_bi_ge/oil_prices;_ylt=At381kPMWX7DPOeblN93ldWyBhIF;_ylu=X3oDMTJmb3RvaGtoBGFzc2V0A2FwLzIwMDkwODMxL29pbF9wcmljZXMEY3BvcwM0BHBvcwMxBHNlYwN5bl9oZWFkbGluZV9saXN0BHNsawNvaWxuZWFyNzFhc3M

- It has been a narrow range; $70 to $75 a barrel, in which oil prices have moved all of August. Much of this movement has been governed by news from the US economy. With most indicators being made public weekly, there is a period of anticipation a couple of days before the announcement is made. If analysts and economists are predicting that the data released that Friday will be better than that of the previous week, oil prices start climbing. Following an unexpected poorer result, oil prices again drop. Oil prices have seen a support at about the $70 a barrel range, and though volatile, prices have not dropped sharply. The current drop is on account of a sharp fall in the Chinese stock markets, and doubts being expressed on how soon the US economy can show a return to growth.

http://www.google.com/hostednews/ap/article/ALeqM5hGjACTfw-Rcohi_SELMEx03_PSFgD9ABB64G0

The Federal Trade Commission’s decision to ban most of the highly annoying Robo telemarketing calls from September 1 should be welcomed by all Americans who are sick and tired of their dinner being disturbed by such calls. All such calls are banned unless the telemarketer has the written permission from a customer that he/she wishes to receive such calls. The ban is part of the amendments to the FTC’s Telemarketing sales rule unveiled last year. However, certain exemptions have been identified and include calls that are not trying to sell goods and services, calls that provide essential information such as cancellation of flights or delivery notices from debt collectors. Several other calls not covered under the rule are the ones from politicians, charities, banks, phone companies, insurers, survey calls and certain healthcare messages. At last some relief for the Americans.

http://www.clickondetroit.com/news/19029795/detail.html

Now this might surprise anybody to see a dog being named as the defendant, that too a police dog. Certainly did not cause much worry to the canine but seems that the incident has left the victim in pain. The judge was not very convinced since the report of the incident in 2007 had no records of a dog bite.
Inez M. Starks has been fined $500 for naming a police dog as defendant and another $500 for not appearing in Macomb County Circuit Court for the hearing on Friday. Wonder if the defendant made it!! The payment of the fine by April 13th can restore her case or it would be dismissed. There is more probability of the occurrence of the latter case.

China Worried About US Treasuries

China is one of the largest investors in US Treasury bills amounting to as much as $1 trillion. It has expressed concern, seeking reassurance that the US government will honor its commitments. China’s investment in the US economy is the largest of its kind in the world. Also, since the USA is its largest exporter, its fortunes are closely tied to the fortunes of the USA.

Recently, miffed at USA ignoring it on the run up to the G-20 summit, China has tried to create subtle pressure on the US. Maybe it is also concerned that trade barriers imposed by the US to protect the domestic economy will have a negative impact on Chinese imports.

In the current scenario, both countries are interdependent and China realizes that the value of its assets (in the US treasury bills) may plunge if it tries to sell off the large volumes it has in the market.

It is in the best interest of China not to exert pressure and co-operate with US efforts of revival for the safety of its own (read China) investments.

For six consecutive weeks, regulators have been seizing control of banks after the closure of markets on a Monday. In 2009 it self, 14 banks have already failed, adding to the 25 which failed in 2008.

Financial analysts predict that about 100 banks will close before the year-end at the current rate. On the other hand, some advocated recommend the closure of non-performing banks so that the economy can be on its way to recovery after the worst is over.

Followers of economics know that cyclical booms and slumps have been a part of the world economy for as long as the market has been studied. We wonder if the almost perfect information communication system that we have today was the culprit in spreading panic and blowing out of proportion the natural occurrences in the business cycles.

Consider this: 534 banks closed in 1989, and 1900 in the period between 1987 and 1991. Yet, the world economy recovered and actually went into a boom a few years later! We recommend loads of patience and grit to bear it out. The tide will turn, folks. Just wait and watch.