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Spotlight Stocks: AIG, Deutsche Bank, Lehman Brothers, Washignton Mutual


Friday's top stories and stocks with potential to move.


Stocks to watch for Friday, September 12, 2008:

  • American International Group (AIG) is no longer the world's insurance leader by value. Fears stemming from the company's mortgage exposure has caused losses, a trend that is likely to continue. Shares have lost over 70% over the past year, causing its valuation to drop to about $47 billion from roughly $175 billion a year ago, reported Reuters.

  • Deutsche Bank (DB) announced it will acquire a 29.75% stake in rival Deutsche Postbank from its parent company Deutsche Post. The deal is worth 2.79 billion euros ($3.93 billion), or 57.25 euros a share. According to MarketWatch, Deutsche Post has also granted Deutsche Bank an option to acquire an additional 18% of Postbank for 55 euros a share, which can be exercised between 12 months and 36 months after the deal. Additionally, DB has a right of first refusal on the remainder of Deutsche Post's 50% stake in Postbank.

  • Lehman Brothers (LEH) was actively shopping itself around yesterday as shares plummeted over 40%. The company discussed a possible complete sale with US officials, sources said. Potential buyers include Bank of America (BAC) and Barclay's (BCS). Lehman stock closed down $3.03 at $4.22, and traded as low as $3.20 in after-hours trading.

  • Washington Mutual (WM) was downgraded by Moody's Investors Service to below investment grade after the company projected a $4.5 billion third-quarter increase in reserves for bad loans but said it has more than enough capital. WaMu's senior unsecured debt rating is now 'Ba2', its second-highest 'junk' grade, from 'Baa3', with a 'negative' outlook, reported Reuters. It also lowered its rating for the banking unit to 'Baa3 from 'Baa2'.

Market Recap

  • Asian trading closed with the Hang Seng -0.18%, Nikkei +0.93%, Sensex -2.36%, Taiwan +0.94% and Shanghai +0.03%.

  • Over in Europe we find the CAC +0.95%, DAX +0.29%, FTSE +0.88%, ATX +1.29%, Swiss Market +0.88% and Stockholm +1.15%.

  • In commodities, crude oil is trading higher +1.26 to 102.13 and gold is also up +11.4 to 756.9 this morning.
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