Chrysler bankruptcy, Citigroup stress test, Teresa Tambunting, Legacy banks
May 4, 2009
Here we summarize relevant business news around the world that happened last week which you ought to know.
- Chrsyler files for bankruptcy
- Citigroup may need up to $10 billion more capital
- Tambunting relative arrested for stealing $12 million worth of gold
- PDIC settles P1.5 billion of P6 billion “doubtful” Legacy accounts
Details of these stories below.
Chrysler files for bankruptcy
Chrysler, the third-largest car manufacturer in the US, filed for Chapter 11 bankruptcy protection on April 30, 2009 in New York. US President Barack Obama forced Chrysler into federal bankruptcy protection so it could pursue a lifesaving alliance with Italian automaker Fiat. As part of the bankruptcy protection plan, the US government will lend Chrysler an additional $8 billion, on top of the $4 billion it had already provided. All Chrysler plants will be closed until the company comes out of bankruptcy.
Citigroup may need up to $10 billion more capital
The Wall Street Journal reported on May 1 that Citigroup Inc. may need up to $10 billion in new capital to meet the requirements of the stress tests of the US government. The stress tests are a way to measure the capital needs of 19 largest banks in the US and their ability to withstand a variety of economic scenarios. The results of the stress tests are expected to be made public on May 7.
Tambunting relative arrested for stealing $12 million worth of gold
The wife of a member of the rich Tambunting clan in the Philippines was arrested on April 29 in New York for allegedly stealing a total of 500 pounds of gold from the jewelry store she was working. Fifty-year-old Teresa Tambunting, wife of Edgardo Tambunting who is part of the Tambunting family that owns pawnshops and thrift banks in the Philippines, was accused of hauling more than $12 million worth of gold from Jacmel Jewelry. She allegedly slipped it out piece-by-piece in her purse lining during the past six years. Tambunting faces up to 25 years in prison if convicted.
PDIC settles P1.5 billion of P6 billion “doubtful” Legacy accounts
The Philippine Deposit Insurance Corp. (PDIC) said it had validated and settled P1.5 billion out of P6 billion “doubtful” deposit claims in connection with the collapse of several Legacy banks. PDIC president Jose Nograles said they have already started mailing the payments for these P1.5 billion deposit accounts. According to the PDIC, over P6 billion of an estimated P14 billion deposit claims were fraudulent because they lacked supporting documents.
News Sources: CNN Money, The New York Post, Philippine Daily Inquirer
Related forum discussion threads:
- If Citigroup goes bankrupt, is Citibank Philippines affected?
- The Collapse of Legacy, Rural Banks, and Pre-Need Firms
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