Financial Roundup: Citi Reaches U.S. Deal, "Say on Pay" Sped Up, WaMu Brings Savings

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The financial industry meltdown has been the worst since the great depression. BNET Financial provides daily industry trends and news coverage with insights for managers and executives about the major financial services companies in the banking and finance sector. In addition to detailed company profiles, we bring you industry analysis on new mergers, partnerships, financial products, rates, investments, capital, and a host of other critical factors of success in the finance business.

Citi reaches deal with U.S. — After days of intense negotiating, the U.S. government has reached a deal to exchange $25 billion in emergency bailout money for a 36 percent equity stake in Citigroup. Shareholders will see their ownership shrink to 26 percent and dividends on common shares are being eliminated. So far, Citi has received $45 billion in federal bailout money but no new federal funds are needed in the deal. [Source: Huffington Post]

“Say on Pay” plans sped up — Hundreds of firms will soon be getting notices from the SEC that they have to submit their executive pay plans for a shareholder advisory vote of confidence this year and not in 2010 as expected. The move shows the Obama administration’s backing of “Say on Pay” votes. [Source: The SEC]

Budget beefs up SEC regulation. – President Barack Obama’s proposed $3.6 trillion budget would increase the SEC’s budget by 13 percent to 1.06 billion and the money will be used to hire more regulators. [Source: SEC]

JP Morgan Chase expects WaMu savings — Acquiring Washington Mutual, a failed Seattle thrift, last year will bring about $2 billion in savings to JPMorgan Chase. The savings include about $1.35 billion in job cuts. [Source: The Associated Press]

Georgia banks complain of rules – Officials at Peach State banks such as Buckhead Community Bank complain that “mark to market” accounting rules hurt them when they have to deal with valuing foreclosed houses. A law barring troubled banks from tapping brokered deposits also needs changing, they say. [Source: Atlanta Journal-Constitution]

FDIC reserves plummet — Reserves in the Deposit Insurance Fund fell 45 percent during the fourth quarter to $18.6 billion due to the banking crisis. The FDIC is expected to charge a special assessment to replenish the fund when it meets today. [Source: American Banker]

Tags: Bank, Shareholder, Financial, Washington Mutual Inc., SEC, Citigroup Inc., Financial Accounting, Financial Services, Finance, Peter Galuszka

Peter Galuszka is a Virginia-based journalist with more than three decades of experience, including 15 years at BusinessWeek, during which he was twice Moscow Bureau Chief and International News Editor in New York.

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