Satyam Computer Services Ltd ,State Farm Insurance Co has terminated its contract

Fraud-hit Satyam Computer Services Ltd said on Monday a U.S.-based client had cancelled its contract, dealing a blow to the embattled Indian outsourcer caught in the country's biggest corporate scandal. State Farm Insurance Co has terminated its contract, a Satyam spokeswoman said, confirming a report in India's Mint newspaper on Monday, but she declined to give details of the contract."While we are disappointed in State Farm's decision to discontinue services, our executives are reaching out to clients around the world, and at this point, well over 90% of our clients have committed to continuing with Satyam," she said.A tech sector analyst with a Mumbai brokerage firm said State Farm was one of the top 10 clients for Satyam, who together accounted for a third of the outsourcing firm's revenue in the July-September quarter last year.The analyst, who asked not to be named as he was not allowed to speak to the media, said he was briefed about Satyam's top clients and their revenue contribution a few months back by the company's management.
Satyam, India's No. 4 software services exporter, was plunged into crisis after founder Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and $1 billion of cash on the books did not exist.
Some of other Satyam's clients might cancel orders, wary of business risks in the fraud-hit company, analysts said."Any customer dealing with Satyam at this point in time will be concerned with what is happening at the company now," said R.K. Gupta, managing director at Taurus Asset Management.A government-appointed board at Satyam said on Saturday it was talking to banks about funding, saying all efforts were being made to ensure staff salaries were paid on time.The board, which also discussed scheduling of vendor payments, said it had received expressions of support from clients. It said it was still looking for a new chief executive and chief financial officer for the outsourcing firm.Shares in Satyam (SAY), which have tumbled about 85% since the scandal broke, ended up 4.1% at 25.45 rupees in a Mumbai market that edged up 0.1%.The Economic Times newspaper said on Monday Satyam's new board was looking to appoint up to three investment banks to explore the possibility of finding a buyer.But analysts said finding a buyer for Satyam, which specializes in business software, would be difficult until the extent of the fraud was detected and measures to streamline operations were taken. "A buyer will have to take the responsibility for the company, and I don't think any one will take a shot in the dark before the accounts are restated and the legal issues are resolved," said Kevin Trindade, an analyst with KR Choksey Shares and Securities.

The former chairman, managing director and chief financial officer of Satyam were moved to police custody on Sunday after spending nearly a week in jail. Under custody, the accused are held in a police lock-up to help investigators with interrogation. The former executives are expected to stay in police custody until Wednesday.

An application against the former executives being held in jail has been deferred to Thursday, Raju's lawyer Bharat Kumar told Reuters. He did not give any reason for the postponement from Monday.Maytas Infra Ltd, in which Raju and his family hold a 36% stake, said on Monday its chief executive had resigned. Maytas is Satyam spelt backwards.In December, Satyam announced plans to buy Maytas Infra and Maytas Properties, a deal which was hastily abandoned in the face of a shareholder revolt. In his Jan. 7 resignation letter, Raju said the deal was his last attempt to resolve the problem of fictitious assets on the Satyam balance sheet.

Anglo Irish Bank nationalised

The Irish government said on Thursday it would nationalise Anglo Irish Bank (ANGL.I) because its viability was of systemic importance to Ireland, adding that the bank remained solvent and would continue to trade.Under the initial bank bailout plan announced last month, the government was set to inject an initial 1.5 billion euros ($1.97 billion) of core tier 1 capital via preference shares, which was to give the state 75 percent of all voting rights in the bank."Anglo has a balance sheet of some 100 billion euros with a substantial deposit base which the state is determined to safeguard," the ministry said in a statement on Thursday.Anglo Irish shareholders were due to vote on Friday on the earlier state bailout plan.The niche commercial lender shocked the financial industry last month when then-chairman Sean FitzPatrick said he had kept shareholders in the dark about 87 million euros ($114 million) of loans from the bank, triggering a purge of senior management."The funding position of the bank has weakened and unacceptable practices that took place within it have caused serious reputational damage to the bank at a time when overall market sentiment towards it was negative," the government said

Santander, the Spanish owner of Abbey and Alliance & Leicester, looks likely to miss its ambitious €10 billion (£9 billion) profit target for 2008

Santander, the Spanish owner of Abbey and Alliance & Leicester, looks likely to miss its ambitious €10 billion (£9 billion) profit target for 2008 after suffering hits from the Bernard Madoff scandal and the collapse of Lehman Brothers.Speculation about Spain’s biggest bank came as more details emerged about Mr Madoff’s frantic attempts to prevent the collapse of his scheme and as American prosecutors boosted their efforts to jail the fund manager.Santander, which had emerged relatively unscathed from the credit crunch, said in June that it was aiming for a net profit of €10 billion for 2008. Banking sources in Spain said, however, that Santander’s private bank faced compensating wealthy clients who lost millions of euros on Lehman bonds after the investment bank collapsed last September.It is also possible that Santander will have to compensate customers who lost money in the Madoff scandal after investing in the bank’s Optimal strategic US equity fund. The Switzerland-based fund lost about €2.33 billion of clients’ cash put in Mr Madoff’s fund. Santander itself lost €17 million that it invested with Mr Madoff.The fund manager was arrested on December 11 after confessing that he had been running a fraudulent scheme in which he used funds invested by new clients to pay fake returns to existing investors. The scam unravelled after clients became nervous because of the financial downturn and asked for $7 billion of their cash back.Yesterday, it emerged that Mr Madoff had tried to prop up the scheme by taking $250 million (£165 million) from Carl Shapiro, one of his long-time supporters, in the weeks before his arrest. Mr Shapiro, 95, an entrepreneur and philanthropist who is one of Mr Madoff's oldest friends, lost an estimated $400 million in the fraud and his charitable foundation lost a further $100 million.

Mr Madoff, 70, is on bail, staying at his penthouse in Manhattan, but yesterday prosecutors stepped up their efforts to have him jailed after he allegedly broke the terms of his bail. Marc Litt, Assistant US Attorney, told a court in Manhattan on Monday that Mr Madoff had posted valuables over Christmas and new year to his sons, his brother, Peter, and to an unnamed couple. The fund manager had been ordered not to move any assets while investors who lost money try to recover their cash.

Ira Sorkin, Mr Madoff’s lawyer, told the court on Monday that the items were family heirlooms sent in innocence. Mr Litt said yesterday that one parcel contained 13 watches, a diamond necklace, an emerald ring and two sets of cufflinks. The prosecutor said that the collective value of this parcel could exceed $1 million.
“Two other packages containing a diamond bracelet, a gold watch, a diamond Cartier watch, a diamond Tiffany watch, four diamond brooches, a jade necklace and other assorted jewellery, also were sent to relatives,” Mr Litt wrote in his evidence.
Judge Ronald Ellis must decide whether Mr Madoff's activities warrant revocation of his $10 million bail.Irving Picard, the trustee appointed to unwind Mr Madoff’s affairs, has uncovered about $830 million in cash in the company and about $850 million in liquid assets.

UIQ Technology, which develops the interface for Symbian UIQ, seems no longer able to meet its debts and is in bankruptcy.

The company UIQ Technology, owned 50:50 by Sony Ericsson and Motorola, will soon close its doors. It has just been placed under the Swedish bankruptcies, being short of cash and can not find any external support to reinvest in these times of economic crisis.Although the future of UIQ is now linked to the development of the Symbian Foundation, which should emerge by 2010 a new mobile operating system open source, the first layoffs began in June.Activity was stopped for two months and, for Johan Sandberg, CEO of UIQ Technology, “there is no opportunity for a revival of activity in the current financial climate.” The company developed an interface for Symbian able to respond to public needs and professional thanks to its flexibility.
Unfortunately, apart from Sony Ericsson, which was commonly used for its range of professional terminals (such as the Sony Ericsson P1i), UIQ interface failed to win, despite advantages such as support for interfaces tactile.UIQ Technology is now under the management of the district administrator in Blekinge (southern Sweden), which will be responsible for dismantling the company’s assets and terminate the contracts of some 200 employees remaining.

FDIC is often appointed as receiver for failed banks. This page contains useful information for the customers and vendors of these banks

The FDIC is often appointed as receiver for failed banks. This page contains useful information for the customers and vendors of these banks. This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership.
This list includes banks which have failed since October 1, 2000.
Bank Name Closing Date Updated Date
Sanderson State Bank, Sanderson, TX
En Español December 12, 2008 December 12, 2008
Haven Trust Bank, Duluth, GA December 12, 2008 December 12, 2008
First Georgia Community Bank, Jackson, GA December 5, 2008 December 5, 2008
PFF Bank and Trust, Pomona, CA November 21, 2008 November 21, 2008
Downey Savings and Loan, Newport Beach, CA November 21, 2008 November 21, 2008
The Community Bank, Loganville, GA November 21, 2008 November 21, 2008
Security Pacific Bank, Los Angeles, CA November 7, 2008 November 7, 2008
Franklin Bank, SSB, Houston, TX November 7, 2008 November 7, 2008
Freedom Bank, Bradenton, FL October 31, 2008 October 31, 2008
Alpha Bank & Trust, Alpharetta, GA October 24, 2008 October 24, 2008
Meridian Bank, Eldred, IL October 10, 2008 October 10, 2008
Main Street Bank, Northville, MI October 10, 2008 October 10, 2008
Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT September 25, 2008 October 20, 2008
Ameribank, Northfork, WV September 19, 2008 October 20, 2008
Silver State Bank, Henderson, NV
En Español September 5, 2008 October 20, 2008
Integrity Bank, Alpharetta, GA August 29, 2008 December 23, 2008
The Columbian Bank and Trust, Topeka, KS August 22, 2008 October 20, 2008
First Priority Bank, Bradenton, FL August 1, 2008 October 27, 2008
First Heritage Bank, NA, Newport Beach, CA July 25, 2008 October 20, 2008
First National Bank of Nevada, Reno, NV July 25, 2008 December 9, 2008
IndyMac Bank, Pasadena, CA July 11, 2008 October 27, 2008
First Integrity Bank, NA, Staples, MN May 30, 2008 October 20, 2008
ANB Financial, NA, Bentonville, AR May 9, 2008 October 27, 2008
Hume Bank, Hume, MO March 7, 2008 October 27, 2008
Douglass National Bank, Kansas City, MO January 25, 2008 October 20, 2008
Miami Valley Bank, Lakeview, OH October 4, 2007 October 20, 2008
NetBank, Alpharetta, GA September 28, 2007 December 23, 2008
Metropolitan Savings Bank, Pittsburgh, PA February 2, 2007 October 20, 2008
Bank of Ephraim, Ephraim, UT June 25, 2004 April 9, 2008
Reliance Bank, White Plains, NY March 19, 2004 April 9, 2008
Guaranty National Bank of Tallahassee, Tallahassee, FL March 12, 2004 October 20, 2008
Dollar Savings Bank, Newark, NJ February 14, 2004 April 9, 2008
Pulaski Savings Bank, Philadelphia, PA November 14, 2003 July 22, 2005
The First National Bank of Blanchardville,
Blanchardville, WI May 9, 2003 October 20, 2008
Southern Pacific Bank, Torrance, CA February 7, 2003 October 20, 2008
The Farmers Bank of Cheneyville, Cheneyville, LA December 17, 2002 October 20, 2004
The Bank of Alamo, Alamo, TN November 8, 2002 March 18, 2005
AmTrade International Bank of Georgia, Atlanta, GA
En Español September 30, 2002 September 11, 2006
Universal Federal Savings Bank, Chicago, IL June 27, 2002 April 9, 2008
Connecticut Bank of Commerce, Stamford, CT June 26, 2002 October 20, 2008
New Century Bank, Shelby Township, MI March 28, 2002 March 18, 2005
Net 1st National Bank, Boca Raton, FL March 1, 2002 April 9, 2008
NextBank, N.A., Phoenix, AZ February 7, 2002 October 20, 2008
Oakwood Deposit Bank Company, Oakwood, OH February 1, 2002 October 20, 2008
Bank of Sierra Blanca, Sierra Blanca, TX January 18, 2002 November 6, 2003
Hamilton Bank, N.A., Miami, FL
En Español January 11, 2002 October 20, 2008
Sinclair National Bank, Gravette, AR September 7, 2001 February 10, 2004
Superior Bank, FSB, Hinsdale, IL July 27, 2001 October 20, 2008
The Malta National Bank, Malta, OH May 3, 2001 November 18, 2002
First Alliance Bank & Trust Company, Manchester, NH February 2, 2001 February 18, 2003
National State Bank of Metropolis, Metropolis, IL December 14, 2000 March 17, 2005
Bank of Honolulu, Honolulu, HI October 13, 2000 March 17, 2005

Secret loans to Anglo Irish Bank directors.

Mr Neary bowed out after a report was presented to the board of the Financial Regulator on the loans scandal at State bailed-out Anglo Irish Bank.The report heavily criticised the failure of regulatory staff to take action over the hiding of the directors' loans.The chief executive of the Financial Regulator paid the price after it emerged that officials in the watchdog had known that

former Anglo Irish chairman Sean FitzPatrick had kept shareholders in the dark about €87m worth of loans he received from the bank.

The conclusions of the probe into the secret loans affair, and how it was handled by regulators, was released last night and it catalogues a string of failures by regulators.The report refers to a "failure to take appropriate and timely actions in relation to what was a serious matter and to escalate the matter to the authority".The report went on: "In summary, in relation to dealing with the issue of directors' loans in Anglo Irish Bank, the committee concluded that there was a breakdown in terms of internal communications and process and in the regulatory follow-up and response of the organisation."The report, compiled by a committee of the board of the regulator, also called for a review of staffing in the regulatory body, the speeding up of a strategic review of the organisation and better internal communication.Mr Neary issued a statement at 9pm last night tendering his resignation, with effect from January 31. But he insisted he was not aware of the loans when they were first discovered by regulators early last year.His statement said: "So far as I am concerned, I was not advised of any such matters in early 2008 and there has been no oral, written or email escalation of these issues to me or to the Authority over the period until the matter was raised with me by the minister on December 10, 2008."The probe into the Anglo Irish loans scandal was ordered by Finance Minister Brian Lenihan who discovered the existence of the loans when reading the annual report of Anglo Irish Bank.The findings of the report were discussed at a lengthy meeting of the board of the Financial Regulator yesterday afternoon, with Mr Neary dramatically tendering his resignation afterwards.The board was understood to have been furious to be told that regulatory staff became aware of the loans as far back as January 2008.Despite knowing about the loans, their existence was kept a secret by staff in the regulator's office.Now the Financial Regulator is to undergo a root and branch review of how it carried out banking supervision.Father of three Mr Neary had been due to appear before a parliamentary sub-committee on Tuesday, when he was set to be grilled on the matter.But even before last month's loans controversy at Anglo Irish erupted Mr Neary had been repeatedly called on to resign because of what was seen as his failure to rein in the huge exposure of Irish banks to property loans.Trinity College, Dublin's, associate professor of finance, Brian Lucey said: "There has been a lot of concern about the regulatory laxity of the Irish system. The perception is one of a regulator asleep at the wheel." And Sunday Independent business editor Shane Ross was among those who consistently called on Mr Neary to step aside.
The secret loans scandal has now claimed four scalps at the troubled bank.

Higher gas price with transit tariff unchanged will bankrupt gas transportation system

Ukrainian President Viktor Yushchenko says increase in the Russian natural gas price without a simultaneous increase in the cost of its transit via the territory of Ukraine may cause bankruptcy of the Ukrainian gas transportation system. He expressed this opinion during his joint press conference in Kyiv with Czech Prime Minister Mirek Topolanek.“A rise in the gas price with the old transit tariff, exactly gas accounting for 85% of it, would make the transit system go bankrupt,” he said. Yushchenko added that the principles of forming the prices of gas, its transit and storage, must be interconnected, because a discussion when a certain price is called without any proofs or arguments takes us away from rational talks. The President called setting of a single European gas price a “good idea”. 'Yet, to my mind, to have this price it is first necessary to have a single European gas policy, which is unlikely in the nearest future,' the head of state noted. In his turn, the Czech Prime Minister noted that he backed a tripartite agreement between the European Commission, OJSC Gazprom and SJSC Naftogaz of Ukraine on the supply of gas to Europe. Mr Topolanek also says the price of Russian gas for Europe may fall to USD 250 per 1,000 cubic meters. Particularly, he noted, the EU gas price is set with the use of a “mathematical model”, pegging that price to the price of petroleum and the US dollar rate. Until recently, that price was USD 450, particularly for the Czech Republic. Yet, Topolanek does not rule out that the price may fall to USD 250. He added that Ukraine and Russia must work out their own model for setting the gas price for Ukraine.

metro Atlanta observers are already calling the city the epicenter for U.S. bank failures

2008 ranked as one of the worst years for banking since the Great Depression. 2009 may become the worst ever. Bankers, industry experts and insiders are already projecting the new year will be a watershed for banks throughout metro Atlanta and Georgia, potentially setting a new record for the number of banks seized within the state in a calendar year.There have been five failures in the last five months, a rate not seen in decades.An informal survey of bankers, attorneys and analysts shows they generally expect that this year no less than 15 banks will fail in Georgia. That would be more than double the previous records, when seven banks were seized in both 1989 and 1991 during the height of the Savings and Loan Crisis.Estimates vary from as few as 15 to as many as 50 bank failures — or about one a week on average —in Georgia this year. The bulk of any failures, industry insiders said, will be among metro Atlanta banks, which led the charge in new bank creation earlier this decade...The collapse was so dramatic, and concentrated in metro Atlanta, that national observers are already calling the city the epicenter for U.S. bank failures

Indian software company Satyam

Ramalinga Raju, who said the firm had exaggerated cash reserves by some $1bn (£661m), and his brother Rama have been charged with criminal conspiracy. founder of scandal-hit Indian software company Satyam is to be held in custody until 23 January, after he admitted falsifying its accounts.
Police have also detained Vadlamani Srinivas, Satyam's chief financial officer, for questioning. The affair is India's biggest-ever corporate fraud. Mr Raju, formerly chairman, and his brother, formerly managing director, have been charged with criminal conspiracy, forgery, criminal breach of trust and falsifying documents, S.K Kumudi, a senior police officer, said. They could face life in prison, he added.
Fighting for life The company, which employs 53,000 people and brought in about $40bn last year, is now fighting for its life. Its clients include Nestle, General Electric and Ford. The Satyam case is an aberration Satyam is a publicly traded company, but, in exceptional circumstances, the government can step in. The government said on Saturday that a new board would meet within seven days. "We are working on the names," Prem Chand Gupta, the Corporate Affairs Minister, told reporters.The scandal comes at a tough time for Indian companies, already hit by the global slowdown and faltering growth in India, one of Asia's tiger economies. Mr Gupta expressed concern that the affair could blight India's reputation.
"The Satyam case is an aberration," he said. "The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this." Satyam's shares fell to 11.50 rupees on Friday, their lowest level since March 1998. Last year they hit a high of 544 rupees.

South Korea's 5th largest automaker, Ssangyong Motor Co., has gone bankrupt

The US automakers are not the only ones that have been hit hard by the high price of gas last year followed by the global economic meltdown. According to CNN, South Korea's 5th largest automaker, Ssangyong Motor Co., has gone bankrupt due to the global economic crisis. The credit crunch has impacted the automaker and higher gas prices affected the sales of the SUVs that the company produced. Vehicles sales were down for the company by 30% last year.