Sony Layoffs Job Cut: fires 16000 employees

One of the big electronics companies of the world, Sony is learnt to go for a round of massive layoffs or job cuts. Since the entire global markets and businesses are suffering from the downturn, this company also seeems to be affected and affected in a big way to cut more than 16000 jobs. Just few days back, we had reported about Sony Ericsson Lay off Job Cut Firing 450 employees, then there were Sony job cuts recently in France. Now the list is going multi-folds.

How many employees will be fired in Sony Layoffs Job Cut?
Around 16,000 employees will be laid off in Sony Layoffs.

Which segment of employees will be affected in the Sony Layoffs Job Cut?
Around 16,000 permanent and part-time jobs from its worldwide electronics division will be cut.

Which locations will see the Sony Layoffs Job Cut?
The layoffs by Sony will be worldwide and all regions across the globe are expected to be affected.

How is Sony going to cope up with the economic problems?
SOny's layoffs are the first step to cut back on cost and make some efficient savings. Then it is learnt that it will raise prices for its gadgets in the face of dwindling consumer spending.
Then there will be massive restructuring, which will see a lot of ups and downs. Many units will be shut down which are learnt to be unprofitable loss-making and not in the core of Sony business.

Any specific divisions which will be affected by Sony Layoffs Job Cut?
The video games and movie businesses are the ones that are on radar. The move will not affect its flagship Playstation3 games console, but will push up prices of Blu Ray disc players and batter the competitiveness of core Sony products at a critical time.

When will the Sony Layoffs Job Cut happen?
It will be a bad new year for many employees as the job cuts are expected to happen in early Next Year.

Let's hope that alternative jobs are available to the affected employees of Sony Layoffs Job Cut.

Nomura Asia Layoffs Job Cut: fires 100

Just few days back, we had reported that Nomura will be cutting 100 jobs in London. One of the largest financial companies of the world, which had recent taken over the bankrupt Lehman Brothers, is learnt to go for another round of layoffs or job cuts - this time in Asia. Since the entire global markets and businesses are suffering from the downturn, this company also seeems to be affected.

Where will Nomura Layoffs Job Cut happen?
The job cuts will be made primarily in Asia, but outside the home country Japan. Hence, it is expected that countries like India, Singapore, HongKong, etc. may see the layoffs by Nomura.

How many employees will be fired in Nomura Layoffs Job Cut
Around 100 employees will loose their jobs.

When will the Nomura Layoffs Job Cut happen?
It is learnt that the layoffs will be done by the end of December, meaning a bad New Year and Christmas for many affected employees.

What are the primary reasons for Nomura Layoffs Job Cut
Consolidation of Businesses after the takeover of Lehman Brothers, to achieve cost cutting.

Nomura took on about 1,500 employees from Lehman's operations in the Asia-Pacific region, excluding Japan. Shares of Nomura were up 8.7% at 686 yen in afternoon trade in Tokyo, outperforming the benchmark Nikkei average which was flat.

Let's hope that alternative jobs are available to the affected employees of Nomura Layoffs Job Cut.

Wagon Automotive may go bankrupt Lay off Job Cut: fires 4500 jobs in danger

Wagon Automotive, the largest car parts maker in the UK, may go bankrupt and file for bankruptcy. At the same time, Wagon Automotive is learnt to go for a massive layoffs or job cuts, all atttributing to the bankruptcy problems. The company is in the business of making car parts and products, and since the entire global markets and businesses are suffering from the downturn, this company also seeems to be affected.

As per the news, Wagon Automotive, one of the largest car parts maker in the UK, is taking steps to file for bankruptcy, a move which would reportedly cost up to 4,500 jobs.

How many jobs will be at stake due to Wagon Automotive Bankruptcy?
Around 4500 jobs will be at stake if the company declares bankruptcy.

What is the ownership and holding pattern for Wagon Automotive?
The company is controlled by WL Ross & Co, the entity run by American billionaire investor Wilbur Ross, which holds over 86 per cent stake in Wagon Automotive.

Any official statements issued by Wagon Automotive?
"Discussions with its principal stakeholders relating to the company's future funding position have broken down...the Board regrets to announce that it is taking steps to place the company into administration," the firm today said in a regulatory filing.

According to the regulatory filing, it is expected that Alastair Beveridge, Simon Appell and Stuart Mackellar of Zolfo Cooper LLP would be appointed shortly as joint administrators to Wagon plc and several UK subsidiaries.

Let's hope that alternative jobs are available to the affected employees of Wagon Automotive Layoffs Job Cut

Lehman Brothers Bonds Latest News: Effect of Lehman Brothers Bankruptcy

As reported in the article, Effect on Lehman Brothers Bonds: Lehman Brothers Bankruptcy, the biggest question that faces the investors of Lehman Brothers is about their Lehman Brothers stocks and Lehman Brothers bond holdings. The Lehman Brothers Stock Price is as available from the various exchanges on which the LEH stock is trading and it went down by more than 95%. The big questions that is haunting the investors is What is the status of Lehman Brothers Bonds, i.e. the Bonds issued by Lehman Brothers.

Here are some more interesting but disturbing news about the developments for the Lehman Brothers Bonds:
It was in HongKong, now a part of China, where angry investors of Lehman Brothers Bonds clashed with police outside Bank of China's Hong Kong headquarters Wednesday and demanded the repayment of investments linked to failed US bank Lehman Brothers.

Thousands of investors who have lost their earnings of life due to investments in the Lehman Brother Bonds due to the Lehman Brothers Bankruptcy have also stormed other major banks and demanding help from the law keepers to regain their money.

The biggest problem is that it was not the invetors who have directly selected to invest in the Lehman Borthers Bonds, but they had selecteed schemes like mutual funds, investment vehicles and other savings schemes which invested their money in the Lehman Borthers Bonds. The protestors, who complain that the banks which sold them the so-called "mini-bonds" had not fully explained the risks involved, held placards and shouted slogans to demand a full refund of their investments.
Lawmakers, grabbed by protesters as they were on their way to the first session of the new legislature, promised to do all they could to pressure the government to take more aggressive action against the banks.
People from all Walks of Life were complaining how they were "cheated" and "mis-lead" by the so called "investment advisors" and fund managers about how safe their investment is going to be. People are complaining that they had invested their lives earnings and now they are down to zero with their investments.

Political parties said they would meet with some of the banks Wednesday afternoon to discuss plans to resolve the crisis.
The government proposed on Monday that the banks buy back the products at their estimated value from investors, who bought an estimated 12.7 billion dollars (1.63 billion US) of the products.
But the proposal failed to pacify bond holders, who said the market value of the products is now much lower than their purchasing price.
Let's hope that there can be some way to redeem to investors hard earned money, with the help of the government and banks.

Is ICICI Bank affected by Lehman Brothers Bankruptcy?

ICICI Bank, the second largest bank of India and the largest bank in private sector, has straight away dismissed any problems with its ICICI UK exposure to Lehman Brothers Bonds. As per the news, Chanda Kochar, joint managing director of ICICI Bank, said its cumulative overseas exposure is less than 4 per cent of its consolidated assets and the bank has the ability to take any losses, if they arise. NDTV News.

Since the day Lehman Brothers declared Banruptcy, there are big rumors running around in the market about ICICI bank's exposure to the troubled Lehman Brothers Bank and its Bonds. There have been questions raised about ICICI bank's solvency concerns.

"The exposure is very small compared to our balance sheet and profitability and the risk could be even lower," she said. Some of the losses on overseas investments, Kochar said, are just mark-to-market provisions, "not underlying credit losses".

On rumours of senior management selling their stake, Kochar said that none of the bank’s working directors has sold any stake in 2008 and described these speculations as "malicious". "We have reasons to believe the rumours are malicious," she said. The bank plans to urge the regulator to take action against those spreading it.

As per the news, The current credit turmoil in the Wall Street has also impacted the domestic liquidity. But Kochar indicated that ICICI Bank’s liquidity situation remains comfortable as "the bank had taken steps a year ago to increase it". "We operate on domestic liquidity in the range of Rs 8,000 crore to Rs 10,000 crore and global cash and cash equivalents of $2 billion," she said.

On the Wall Street crisis, she said that it is more panic that erosion of underlying value. She noted that recent deals in which US investment bank Merrill Lynch was bought by Bank of America, and Lloyds TSB’s takeover deal of HBOS PLC, UK’s biggest mortgage lender. Both these institutions were bought at much higher prices than their market prices, she pointed out.

Effect on ICICI Bank for Lehman Brothers Bankruptcy

The global investment bank Lehman Brothers, has filed for bankruptcy under Chapter 11, but it said that its bankruptcy plans will not include its broker-dealer operations and other units like Neuberger Berman.

Coming to India, some investors are worried whether any of their banks or investment firmss had any exposure to Lehman Brothers, directly or indirectly. There is some news available about the ICICI Bank exposure to Lehman Brothers and ICICI Bank officials claim that the losses are not so phenomenal or significant.

As per the news, the ICICI Bank's UK division has a lot of exposure to Lehman Brothers Bondsholds 57 million euro of senior bonds of Lehman Brothers Inc. "Potential losses are not material," the bank said in a statement.

The bank said it had undertaken transactions with the US-based troubled investment banker as part of treasury operations.

"The exposure to Lehman Brothers' entities on account of these transactions and potential loss thereon are not material," it said.

However, the ICICI Bank shares yessterday went down by around 6 per cent to Rs 591.35 on the Bombay Stock Exchange.

Lehman Brothers, which is a 158-years-old-financial institution has filed for bankruptcy protection, after losing around $60 billion (About Rs 2,76,000 crore) in sinking real-estate market.

Another investment bank Merrill Lynch is being bought over by Bank of America for $50 billion, while world's largest insurer American International Group (AIG) is also facing financial crisis.

Also, Lehman has suspended operations of its three Asian arms. Lehman Brothers Asia, Lehman Brothers Securities Asia and Lehman Brothers Futures Asia Ltd have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice.

Effect on Lehman Brothers Bonds: Lehman Brothers Bankruptcy

The global investment bank Lehman Brothers, has filed for bankruptcy under Chapter 11, but it said that its bankruptcy plans will not include its broker-dealer operations and other units like Neuberger Berman.

The biggest question that faces the investors of Lehman Brothers is about their stocks and bond holdings. The Lehman Brothers Stock Price is as available from the various exchanges on which the LEH stock is trading and it went down by more than 94% in yesterday's trades. The biog questions that is haunting the investors is What is the status of Lehman Brothers Bonds, i.e. the bonds issued by Lehman Brothers.

The Standard & Poor's or S&P has downgraded the Long term bonds of Lehman Brothers to Default Status. These Lehman’s long-term bonds are still trading and being quoted flat in the secondary market. Some of the market data providers have said that they are unable to collect quotes or other market information for a number of Lehman index-linked bonds and Lehman Brothers Commercial Bank certificates of deposit (CDs).Similarly, no concrete information is available about Lehman index-linked bonds and Lehman Brothers Commercial Bank CDs. God knows what will happen with the long term bonds issued by Lehman Brothers.

There is a lot of interest among other investment firms in buying its broker-dealer operations. Lehman Brothers said that it is in advanced discussions with a number of potential buyers of its investment management division. Lehman Brothers Bankruptcy will represent the end of a 158-year old company that survived world wars and the collapse of Long-Term Capital Management but could not survive the global credit crunch. This is another example like that of the Bear Sterns bank being sold out to J P Morgan for a measely 10 dollars a share, while the bid started at just $2 per share.

As per the news, Investors in recent weeks had grown increasingly jittery about Lehman's $46 billion of mortgages and asset-backed securities, as well as its credit rating and its ability to raise capital. Helpless investors can just wait and watch.

Lehman Brothers Bankruptcy: files for Bankruptcy under Chapter 11

This may come as the biggest setback for most of the financial sector investors. The global investment bank Lehman Brothers, is all set to file for bankruptcy under Chapter 11, but it said that its bankruptcy plans will not include its broker-dealer operations and other units like Neuberger Berman.

There is a lot of interest among other investment firms in buying its broker-dealer operations. Lehman Brothers said that it is in advanced discussions with a number of potential buyers of its investment management division. Lehman Brothers Bankruptcy will represent the end of a 158-year old company that survived world wars and the collapse of Long-Term Capital Management but could not survive the global credit crunch. This is another example like that of the Bear Sterns bank being sold out to J P Morgan for a measely 10 dollars a share, while the bid started at just $2 per share.

As per the CNBC news, Investors in recent weeks had grown increasingly jittery about Lehman's $46 billion of mortgages and asset-backed securities, as well as its credit rating and its ability to raise capital.

Officials at the Federal Reserve and U.S. Treasury are taking steps to mitigate risk to the system and assure the orderly functioning of the U.S. markets when they open Monday. And the Federal Reserve has also agreed to accept lower-quality assets in return for loans from the government. Ten of the Wall Street banks have agreed to set up a collateralized borrowing facility, and committed to fund for $7 billion each - namely Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley, and UBS.

It is almost certain that Monday will see a gloomy trading day for the US markets, as the US stock markets are set to open with the news of Lehman Brothers Bankruptcy. One Wall Street trader involved in the discussions with officials from the Federal Reserve said every firm had determined their exposure to Lehman by Sunday morning, and were preparing for some Federal assistance in unwinding the trades. However, officials from the Fed said they won't be involved in any such unwind — they told the Wall Street firms to work among themselves to determine how best to settle trades with Lehman. In another setback to Lehman Brothers, the Barclays Bank of UK has decided to pull out from buying Lehman Brothers, almost at the brink of Bankruptcy.

Thornburg Mortgage Defaults Bankruptcy: Shares down 51 pc

There is a very big mortgage lender in US, the Thornburg Mortgage Inc. (TMA.N).
Yesterday, it made a disclosure to SEC that it failed to meet a $28 million margin call from JPMorgan Chase & Co & that the bank may like exercise its rights under a $320 million loan. Margin calls force borrowers to pay back loans or post more collateral.

Unfortunately, the case for mortgage lenders is worst. Since they may or may not have reserve money for paying up for the mortgage calls, it become difficult for them to keep up the margin requirements. The result is that they end up raising their hands and declare foreclosures and bankruptcies.

The shares of Thornburg Mortgage yesterday tanked by more than 51 percent, all on the fears that Thornburg Mortgage may declare bankruptcy. Thornburg said the JPMorgan notification triggered defaults under its other reverse repurchase and secured loan agreements, and its obligations under those agreements were "material."

No official comment has been communicated from Thornburg Mortgage, but if you believe the rumors and the foreclosure that Thornburg has made to SEC, then this company may file for bankruptcy.

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