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BUSINESS
By Bloomberg Business News | February 9, 1993
NEW YORK -- Salomon Inc. said yesterday it created a new AAA-rated subsidiary to trade complex financial instruments called derivatives.Salomon officials first announced plans to create the new unit, Salomon-Swapco Inc., last October, but couldn't start trading until the credit rating was issued. Swapco will trade derivatives like swaps, which represent payments based on underlying interest rates, currencies, indexes or commodities.Moody's Investors Service Inc., Fitch Investors Service Inc. and Standard & Poor's Corp.
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HEALTH
By Sierra George, Special to The Baltimore Sun | March 5, 2013
Nutritionists from the University of Maryland Medical Center regularly contribute a guest post. The latest post from Sierra George, dietetic intern, is printed here. Despite its name, the coconut is a fruit from the coconut palm. Tropical cultures have been using this delicious fruit for everything from food to body lotion and even currency. Until recently, Americans have seen coconut mostly as the dried, shredded ingredient of cookies, candies and cakes. Now, as more products derived from the coconut hit grocery store shelves, we are given the delicious opportunity to get creative with the coconut.
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BUSINESS
By Bloomberg Business News | January 6, 1995
WASHINGTON -- Congress shouldn't use last month's bankruptcy by California's Orange County and other recent investor losses as an excuse to pass unneeded new laws on derivative securities, Federal Reserve Chairman Alan Greenspan and several regulators said yesterday."
BUSINESS
By Jamie Smith Hopkins, The Baltimore Sun | July 7, 2011
Maryland will share in a $75 million settlement that state attorneys general across the country negotiated with JPMorgan Chase & Co. to resolve allegations of bond derivative bid-rigging that defrauded states, counties and nonprofits, the state said Thursday. The Maryland attorney general's office said it was not yet clear how much would go to each of the 25 states involved in the settlement. But about 10 agencies and nonprofits in Maryland are expected to receive money, including the Johns Hopkins Hospital and the University of Maryland Medical System.
BUSINESS
By New York Times News Service | December 6, 1994
In the first big government action against a seller of the financial instruments known as derivatives, the Federal Reserve Board said yesterday that it had reached a settlement with Bankers Trust Co. that requires the bank to increase the disclosure of risks its customers face.At the same time, two other federal agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission, are expected to reach a joint settlement against Bankers Trust in the next few weeks.
BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,Washington Post Writers Group | May 9, 1994
NEW YORK -- A lot of wily investment professionals found themselves nuked in the market last month by a complex class of securities known as derivatives.The pros borrowed money to pyramid their derivatives bets. But when interest rates rose, their gambles collapsed and their investments were vaporized. The unlucky treasurer of Procter C Gamble lost his company $157 million after a failed derivatives play. Pension-fund manager David Askin, pursuing what he thought was a conservative strategy, lost a large portion of his clients' money.
BUSINESS
By Kim Clark | December 11, 1994
The news of the $1.5 billion derivatives debacle in Orange County, Calif., that forced the home of Disneyland into bankruptcy last week was a little familiar. After all, in August, the Charles County government found itself on the edge of bankruptcy because a deputy treasurer had put much of the county's $33 million of operating funds into money-losing derivatives.Is there a widespread problem with derivatives? Can other communities or investors expect to be hit by losses?Raymond F. DevoeEditor, the Devoe Report, Legg Mason Wood Walker Inc.The problem in Orange County was that the treasurer was running for re-election.
NEWS
By Kim Clark and Gary Gately and Kim Clark and Gary Gately,Sun Staff Writers | December 17, 1994
Education Alternatives Inc., which manages schools in pTC Baltimore and Hartford, Conn., got a painful economics lesson in recent months, as the value of its $36 million investment in derivatives and securities has dropped by more than one-third.Corporate finance specialists and a national teachers union criticized EAI yesterday for investing in derivatives -- volatile, interest-sensitive investments that have cost companies and communities around the nation billions of dollars as interest rates have risen.
BUSINESS
By Andrew Leckey | September 21, 1994
Popcorn sold in movies, Mexican and Chinese food, margarine.Seems they're always discovering something new that's supposedly bad for us.This year's financial addition to that blacklist has been the derivative. Just as many Americans don't know what they're eating, others don't know what they're investing in. Judging from the letters received by this column that are concerned about derivatives, it's time for everyone to become an informed investor.Derivatives are financial arrangements whose prices are derived from prices of stocks, bonds, currencies or other underlying markets.
BUSINESS
By Joel Obermayer and Joel Obermayer,Boston GlobeSun Staff Writer | April 17, 1994
Philip Luhmann is a soft-spoken man, known for his crew cut, his conservative suits and his money handling skills.For more than two decades, Mr. Luhmann oversaw the endowment of the City Colleges of Chicago, a vast system of seven community colleges and 83,000 students. So there was no surprise on the morning of Feb. 3, when he told the college's seven-member board that the system's finances were in good shape. After all, Mr. Luhmann had helped direct investments that made solid gains in the last two quarters of 1993.
BUSINESS
By Jay Hancock | March 17, 2010
T he economic crisis was caused by dumb home buyers doing business with greedy financial companies, abetted by politicians who were both dumb and greedy. Should we really look to Washington to prevent a repeat? Sen. Christopher Dodd's financial reform bill, which landed on Capitol Hill on Monday, has some good ideas. But it also might add red tape and expense without making much difference, or even aggravate problems it's designed to solve. Here are further thoughts, outsourced in part to Baltimore financiers.
BUSINESS
By JAY HANCOCK and JAY HANCOCK,jay.hancock@baltsun.com | April 1, 2009
Maryland hospitals say: We want our bailout! Not in so many words, but that's the upshot of last week's Chewbacca-like cry of anguish from the Maryland Hospital Association. "Economic Crisis Hits Maryland Hospitals," said the official statement, launched as the association seeks to push up prices for Marylanders needing hospital treatment. Terrible news, if true. Health and social care make up only about an eighth of the Maryland economy, but they have accounted for well over half of the state's job growth over the past five years.
NEWS
By Meredith Cohn and Meredith Cohn,meredith.cohn@baltsun.com | February 9, 2009
As snowy white granules rain down on a cup of coffee, words appear across the TV screen: "Sprinkle your coffee with something other than guilt." Then, the narrator intones: "Try the first great-tasting, zero-calorie, natural sweetener borne from the leaves of the stevia plant. Truvia. Honestly sweet. Find it at your grocery store." It's not exactly pure spring water, but the newest sugar substitute on the market is getting buzz for its origins in flora rather than the lab. The Food and Drug Administration said in December that an extract of stevia was safe to eat, and about the same time, the food-supply giant Cargill Inc. launched the commercial for tabletop packets of Truvia.
BUSINESS
By New York Times News Service | March 29, 2008
Economists note there should not be two prices for one thing at the same place and time. Could a drugstore sell two identical tubes of toothpaste, and charge 50 cents more for one of them? Of course not. But, in effect, exactly that has been happening, repeatedly and mysteriously, in trading that sets prices for corn, soybeans and wheat - three of America's biggest crops and, lately, popular targets for investors pouring into the nation's volatile commodities market. Economists who have been studying this phenomenon say they are at a loss to explain it. Whatever the reason, the price for a bushel of grain set in the derivatives markets has been substantially higher than the simultaneous price in the cash market.
BUSINESS
By New York Times News Service | May 22, 2007
General Electric Co. agreed yesterday to sell its plastics division for $11.6 billion to the largest public company in Saudi Arabia, the Saudi Basic Industries Corp. The deal for the GE division, which has 11,000 employees in 20 countries, is one of the largest yet by the Saudi company, known as Sabic. Sabic prevailed in a sometimes crowded race, with other top bidders including Basell Holdings BV, the Dutch plastics maker, and Apollo Management, the American private equity firm led by Leon Black.
BUSINESS
By Bloomberg News | March 9, 2007
NEW YORK -- John A. Thain said yesterday that he plans to expand NYSE Group Inc.'s derivatives trading business and remain at the helm of the world's largest stock exchange as long as necessary to oversee the merger with Paris-based Euronext NV. "I definitely have to stay here to make sure that the whole Euronext deal is integrated and that we deliver," Thain said in an interview. "If you look at the mix of our business, I'd like the derivatives piece to be bigger because derivatives are both growing faster and have better margins."
BUSINESS
By JANE BRYANT QUINN | July 18, 1993
New York--More money has probably been lost chasing higher yields than in all the world's investment scams. And today, the chase is on again -- this time for higher paying tax-exempt municipal bonds and bond mutual funds.As interest rates drop, old tax-exempt bonds paying 8 percent to 10.5 percent are being recalled by their issuers. When you get the cash back to reinvest, you find that today's higher-quality munis yield only 5.3 percent. What a comedown. No wonder investors will listen to anyone offering something that pays more.
NEWS
By Scott Shane and Scott Shane,SUN STAFF | January 18, 2002
Don't worry if your palms sweat and your eyes glaze over when, in reading about the Enron collapse, you spot the word derivatives. You have plenty of company. But understanding derivatives can help you make sense not only of Enron, but of several other recent financial meltdowns. It gives a peek into an alternative universe where wheeler-dealers trade not stocks and bonds but bandwidth, bankruptcies, pollution and even weather, where transactions of brain-numbing complexity carry nicknames like "iron butterflies" and "shout options."
NEWS
By Michael Oneal and Michael Oneal,Chicago Tribune | January 21, 2007
Tribune Co. directors came away with no decisions made after meeting in Chicago yesterday to consider offers for the company generated by a four-month auction process that ended last week. After the meeting, Tribune, which owns The Sun, issued a statement saying the independent special committee formed to oversee management's effort to create additional shareholder value was considering the offers that came from outside bidders as well as strategies the company might enact independently.
BUSINESS
By Martin Z. Braun and Martin Z. Braun,Bloomberg News | January 20, 2007
NEW YORK -- The third-poorest city in Pennsylvania is a lot poorer because of a 28-year bet on interest rates that already has gone awry. The Reading, Pa., school district, which has 18,323 students, must pay $230,000 this week to Deutsche Bank AG, Germany's largest bank, because it's on the losing side of a wager that long-term interest rates would rise faster than short-term interest rates. In April, the district board rushed approval of the so-called interest-rate swap in eight days after its financial adviser said the transaction might earn the district $16 million by 2034.
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