News of the Competition

MADISON, Wis. (11/5/09)

• Executives at financial services companies do not expect hiring and pay conditions to improve at their firms, despite the improvement in the economy. Roughly 20% of banking executives said their companies will ramp up hiring in the next six months, according to a survey released Tuesday by Grant Thornton LLP--the U.S. arm of Grant Thornton International LLP. However, nearly 25% of executives surveyed expect job cuts. The online survey of 846 chief financial officers and senior comptrollers--conducted Sept. 21 through Oct. 2--included 42 executives at financial institutions who were marginally more pessimistic about job cuts and hiring at their companies than respondents in other industries, analysts said (American Banker Nov. 4) ...

• A U.S. bankruptcy judge set a Dec. 8 hearing to fast-track the approval of CIT Group's Inc.'s financial reorganization. Judge Allen Gropper said Tuesday in a Manhattan bankruptcy court that he is trying to help the large commercial lender emerge from bankruptcy by the end of the year. A quick reorganization is essential for CIT to retain the majority of its customers and remain a strong supporter of its banking unit, which did not file for bankruptcy protection, analysts said. Also affected by the proceedings will be several hundreds of thousands small- and mid-sized businesses--such as operators of Dunkin' Donuts stores--that are dependent on CIT for financing, analysts added. Small businesses employ roughly half the U.S. labor force (Reuters Nov. 3) ...

• The Treasury Department announced plans to sell a record $81 billion in its quarterly auctions of long-term debt next week. The Treasury also said it replaced its inflation-protected 20-year bond with a reintroduced 30-year security. The agency will auction $40 billion in three-year notes on Monday, $25 billion in 10-year notes on Tuesday, and $16 billion in 30-year bonds on Thursday. The government will conduct another year of debt sales, ranging from $1.5 trillion to $2 trillion because the U.S. is headed for a second straight year of budget deficits, analysts said. "Treasury debt managers will continue to remain aggressive in managing financing needs while minimizing potential market implications," the Treasury said in a statement Wednesday (Blooomberg.com Nov. 4) ...