The Breakdown

Explaining Southern California's economy

Reportings: MF Global; Yahoo takeover; debit-card fees; Tribune bankruptcy

Person using debit card
Person using debit card iStockphoto

MF Global, the bankrupt wannabe global investment bank run by Goldman Sachs alum and former New Jersey governor Job Corzine, may have been mixing client money with its own funds, a definite no-no: "'While we are unable to determine the precise scope of the firm's violation at this time, we are investigating the circumstances of the firm's failure,'" [Chicago Mercantile exchange CEO Craig] Donohue said in a conference call about his company's quarterly financial results. (LAT)

 

Henry Blodget still wants to be the CEO of Yahoo, but now he wants the board to resign — because that's what Steve would demand: "Steve [Jobs] taught many people many things, and one of the things he has now taught me is that you need to set your terms upfront. Especially when dealing with a board that is, slowly but surely, destroying a once-great company." (BI)


Bank of America goes with the flow and reverses its decision to charge a $5 monthly debit-card fee: "The move is a dramatic retreat following decisions by several rivals in recent days to drop customer tests of the new fees. SunTrust Banks Inc. and Regions Financial Corp. also said Monday that they will stop charging customers for debit-card transactions." (WSJ)

 

In the neverending Tribune Co. bankruptcy, the court now looks to be favoring senior creditors over junor creditors who have alleged fraud: "Despite not picking a clear winner, [bankruptcy judge Kevin] Carey effectively chose sides with his decision, making it plain that he favored a plan proposed by Tribune Co. and a group of senior creditors, including Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase." (Chicago Tribune)

 

Follow Matthew DeBord and the DeBord Report on Twitter.

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