Fund rescued to prevent market chaos

Article Abstract:

Long-Term Capital Management LP, a struggling hedge fund operator, received US$3.5 billion in cash infusion from 14 major financial institutions as they move to fend off disruption in global financial markets that could stem from a liquidation of the firm's portfolio. The major U.S. and European banks and brokerages that exited in return for a 90% ownership are trying to slash their losses by implementing a three-year bail-out. During the period, lenders will take over all the decision-making of the fund, including the investment strategy, capital structure and employment. A huge loss is expected if a sudden liquidation happens as it will affect at least $100 billion worth of positions, majority of whom are in mortgage-backed securities and other bonds issued by the US government or agencies.

Comment:

Gets US$3.5 bil in cash infusion from 14 major financial institutions, a move to fend off disruption in global financial markets

Receipt of funds, Open-End Investment Funds, Money Market Invest Funds, Mutual fund industry, Money market funds, Long-Term Capital Management LP

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Grandy given familiar challenge at new firm

Article Abstract:

Merrill Lynch Canada Inc. is relieving Robert Grandy of his duties as chairman and chief executive officer in favor of Robert Schultz. Schultz used to be chief executive officer of Midland Walwyn Inc. Merrill Lynch Canada appointed Grandy as deputy chairman with the authority to manage the investment banking operations. An industry insider noted that Merrill Lynch Canada only needs to get seven to eight more banking professionals to snare top business in the investment banking industry. Grandy's main task at the moment will be to enhance the coverage of large-capitalization, TSE 100 firms, noted insiders.

Comment:

Appoints Robert Grandy as deputy chairman with the authority to manage the investment banking operations

Securities Dealers, Investment Banking and Securities Dealing, Executive changes & profiles, Merrill Lynch Canada Inc.

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Imasco to subdivide Genstar

Article Abstract:

Imasco Ltd is making an effort to make its real estate subsidiary Genstar Development Co more attractive to possible buyers by splitting the unit into US and Canadian Properties. Majority of the unit's Canandian residential real estate assets are located in Calgary and Edmonton, while the bulk of its US real estate assets are in California. Imasco put Genstar up for sale with a purchase price of C$400 million, following a C$10.2-billion takeover bid for Imasco from British American Tobacco PLC, Imasco's biggest investor.

Land Subdivision and Land Development, Asset sales & divestitures, Housing Developers, Genstar Development Co.

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