Bank of America Corp raised $13.47 billion on May 19 through a share sale to meet the U.S. government’s requirements for capital-raising. Including the recent $7.3 billion sale of its stake in China Construction Bank, BofA is more than half-way toward filling the $33.9 billion capital shortfall identified by the government.

The share announcement comes after smaller issuances by other banks, which also have been ordered to raise capital. That includes $8.6 billion by Wells Fargo and $4 billion by Morgan Stanley. According to a person familiar with the matter, Bank of America sold 800 million shares at $10 each alone on May 19.

Source: Reuters

What Happens When Banks Return Taxpayer Cash?

Major U.S. banks are racing to pay back billions of taxpayer dollars, with many insisting they will do so by year-end. In response, regulators are determining how and when these institutions should be allowed to return the bailout money — and whether that might leave banks vulnerable to another crisis should the economy turn for the worse.

Source: New York Times

Congress Beefs Up FDIC’s Powers

On May 19, the U.S. Congress green-lighted the Federal Deposit Insurance Corporation to borrow as much as $100 billion from the Treasury Department and extended the agency’s new deposit-insurance limit of $250,000 until 2013. The FDIC’s enhanced financial maneuverability is expected to counter fears that the rising cost of bank failures has drained the agency’s funds.

Source: Wall Street Journal

Japan’s Q1 GDP Falls Record 4%

Japan’s economy contracted by a record 4% in the first three months of 2009 compared to the previous financial quarter as domestic demand declined and exports continued to suffer. The fall in gross domestic product — equivalent to a 15.2% fall on an annualized basis — highlights the problems facing the world’s second largest economy, which has now contracted for an unprecedented four consecutive quarters.

Source: Financial Times

Toyota: U.S. Sales Have Bottomed Out

Japan’s Toyota — the world’s biggest automaker — said on May 20 that ‘a slight uptick’ in its U.S. sales in May could represent the end to the industry’s worst slump in three decades. Jim Lentz, the president of Toyota’s U.S. sales division, said: “I think we’ve found the bottom,” though he added major improvements are unlikely to happen before 2010.

Source: Bloomberg

Oil Prices Rise Above $60 a Barrel

On May 20, oil prices rose above $60 a barrel to hit a six-month high as markets awaited more U.S. oil inventory data. Since April, prices have been on an upward trend, mostly on the back of bullish equity trading. They also have recovered from below $33 in December, 2008 after a plunge from record highs above $147 in July, 2008.

Source: Reuters

Three Bidders Battle for GM’s European Business

At least three bidders will make offers on May 20 of around $900 million for a stake in General Motors’ European operations. RHJ International, the Brussels-listed car parts holding company, has emerged alongside Italian automaker Fiat and Canada’s Magna as contenders for the troubled US carmaker’s Opel-Vauxhall divisions.

Source: Financial Times

Air France Hunts for Alternative Funding

Air France-KLM Group — Europe’s biggest airline — has turned to Singapore’ BOC Aviation to finance jetliner purchases after its traditional lenders closed their purse strings, according to the airline’s Chief Executive Pierre-Henri Gourgeon. Recently, Air France bought four Boeing 777s via sale and leaseback deals with BOC.

Source: Bloomberg

Intel Takes On Microsoft’s Windows

Tech giant Intel on May 19 unveiled a new version of Moblin, a variant of the open-source Linux operating system, that has emerged as a competitor to Microsoft’s Windows in the hot market for low-end netbooks. The announcement is emblematic of the company’s ambitions to become a bigger player in software — a strategy that could conflict with the plans of current allies Microsoft, Apple, and Google.

Source: Wall Street Journal

Companies Take Anti-Union Stand

Companies increasingly are taking tough stances against employee unions. According to a Cornell University study of 1,004 union organizing drives, employers threatened to close plants in 57% of the campaigns and threatened to cut wages and benefits in 47% of them.

Source: New York Times

Recession Hits College Graduate Employment

A ranking of favored employers for undergraduates shows new trends and a few surprises as college students digest the economic crisis. This year’s graduating classes are feeling the sting of a tough economy: Only 19.7% of those who have sent out a resume have a job, according to a recent survey by the National Association of Colleges & Employers. Even worse: Less than 60% of undergraduates have bothered to look for employment.

Source: BusinessWeek

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