GM and CitiGroup removed from DOW

admin — Mon, 01 Jun 2009 17:56:24 +0000

The Dow Jones industrial average is the latest Wall Street institution to be reshaped by the financial crisis.

The stock market’s best-known barometer is adding Travelers Cos. and Cisco Systems Inc., replacing Citigroup Inc. and General Motors Corp. The move comes as GM enters bankruptcy protection, a move that was widely expected.

Dow Jones said Travelers, the property and casualty insurer and one-time division of Citicorp, would replace its former parent. Cisco, which makes computer networking gear, is filling the role left by GM after 83 years as part of the Dow.

The changes to the 30-stock index take effect June 8.

This is a major changing of the guard and reflects how greatly the financial crisis has reshaped the world as we know it.

Dow Touches 11,000 The Dow Jo

GM Bankruptcy

admin — Fri, 29 May 2009 12:16:00 +0000

The Treasury Department and a committee of major bondholders at General Motors have reached a deal that could give creditors a larger stake in GM than previously offered. But bankruptcy is still likely in the next few days despite the deal.

The agreement, revealed in a Securities and Exchange Commission filing by GM (GM, Fortune 500) early Thursday, would essentially give the bondholders 10% of the company but also give them the rights to buy an additional 15% of the company’s stock at a low price.

The deal is unlikely to allow GM to avoid bankruptcy, however. If anything, it might clear potential obstacles to the government’s plans to use bankruptcy as a way to turn around the nation’s largest automaker. That’s because bondholders accepting the new offer agreed not to fight the government’s plans for a quick bankruptcy at GM.

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GM and CitiGroup removed from DOW

GM Bankruptcy