Financial Business Review: AIG Makes Money, Jefferies Exploits Europe
AIG (NYSE:AIG) owes the U.S. government approximately $45 billion from the bailout, according to its CEO Bob Benmosche (as told to Jim Cramer in a Monday interview). However, once this sum is repaid to the Treasury, taxpayers could make a profit of between $5 billion and $10 billion, says Benmosche, noting that so far in March AIG has repaid more than $14.6 billion, including $6 billion from the sale of shares.
Some U.S. banks might be pulling back from Europe, but mid-size investment bank Jefferies (NYSE:JEF) wants their market shares there as it explores ways to establish a corporate lending business on the continent, according to The Financial Times. Speaking for Jefferies, Brian Friedman says “We are working actively to develop corporate lending capacity in Europe and have underwritings in process.”.
Cloud newbies Dropbox, Evernote, and Box.net, induce Wells Fargo (NYSE:WFC) to shut down its fee-based document storage service. Apparently the ‘upstarts’ were just too competitive for WFC.
A plan reported to be in the works by MF Global’s (MFGLQ.PK) trustee to propose bonuses for executives employed by the company at its collapse, is getting opposition in the U.S. Senate. A non-binding bipartisan resolution is being introduced Tuesday, which urges that the plan be dropped.
The British government currently holds an 82 percent stake in The Royal Bank of Scotland (NYSE:RBS), but talks are being held concerning a possible sale of up to one third of that to Abu Dhabi. Though sources warn that such a deal is not yet imminent, RBS shares jumped in London on Tuesday, regardless.
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