DealBook: Democrats and Bush Near Deal on Auto Bailout

To view the latest DealBook headlines on your mobile device, go to: http://mobile.nytimes.com/blogs/dealbook

Edited by Andrew Ross Sorkin

TODAY'S TOP HEADLINES | Wednesday, December 10, 2008 M & A: The Newspaper Bubble, Too, Has Burst BANKING: Ace Greenberg's Lament for Wall Street PRIVATE EQUITY: Survey Finds Weak Demand for L.B.O. Funds HEDGE FUNDS: Gazing Into Hedge Funds' Future OFFERINGS: Global I.P.O. Activity Hits 13-Year Low VENTURE CAPITAL: V.C. in Fraud Case Had Telltale Past LEGAL: Illinois Governor's Arrest: the Tribune Angle TOP STORY Democrats and Bush Near Deal on Auto Bailout Congressional Democrats and the Bush administration on Tuesday night were on the brink of an agreement on a taxpayer rescue of the American automobile industry, with a vote in the House expected as soon as Wednesday afternoon. But with less than six weeks left in President Bush's term, it was unclear if the White House would be able to generate Republican support for the proposal, which is crucial in the Senate where, for procedural reasons, the bill needs 60 votes to advance. A group of Republican senators likely to oppose the auto bailout plan scheduled a news conference for noon on Wednesday, raising the prospect of a legislative battle that could keep the Senate in session well into next week. Go to Article from The New York Times» Read More Add a comment ADVERTISEMENT Back to Top MERGERS & ACQUISITIONS The bankruptcy filing of the Tribune Company on Monday is just the latest, largest evidence that the American newspaper industry is suffering the hangover from an immense buying spree in 2006 and 2007 at what turned out to be the worst possible time for the buyers, just as the business was about to enter a drastic decline. Go to Article from The New York Times» Read More Add a comment New reports raised questions about whether Ford Motor is in talks sell Volvo to its Chinese partner, Changan Automobile Group. Go to Article from The Deal.com» Go to Article from Reuters via The New York Times» Go to Previous Item from DealBook» Read More Add a comment Lehman Brothers is asking a judge in its bankruptcy case to approve the sale of its French investment banking unit, Banque Lehman Brothers, to Nomura Holdings of Japan for one euro, or a little over $1.29. Go to Article from Bloomberg News» But it appears likely to do better with the sale of its American and European merchant banking assets, which have attracted five bidders, including the private equity firms Blackstone Group and Lexington Partners, Bloomberg News reports. Go to Article from Bloomberg News» Read More Add a comment New Star Asset Management, the United Kingdom-based fund manager, has been put up for sale by the syndicate of banks that now control it, The Times of London reported. Go to Article from The Times of London» Read More Add a comment Back to Top INVESTMENT BANKING Alan "Ace" Greenberg, the former chief executive of Bear Stearns told Bloomberg Television that Wall Street changed forever with the collapse of Lehman Brothers and the forced sales of his old firm and Merrill Lynch, leaving the investment banking model he helped create in tatters. Go to Video from Bloomberg Television» Go to Article from Bloomberg News» Read More Add a comment The lone Republican on a Congressional panel overseeing the $700 billion financial rescue plan has voted against its first advisory report, setting up a possible partisan rift as it is delivered to lawmakers on Wednesday. Go to Article from The New York Times» Read More Add a comment Citigroup will slash some 1,000 jobs at its Japanese brokerage unit as part of the ailing U.S. banking giant's efforts to survive the financial meltdown, a report said Wednesday. Go to Article from The Associated Press via The New York Times» Read More Add a comment A top stock-fund manager who left Bear Stearns in early 2007 said he expressed concern about the firm's use of leverage but "was politely told to mind my own business." Go to Article from Reuters» Read More Add a comment American International Group, once the world's largest insurer, owes around $10 billion to Wall Street's biggest firms for trades that have gone sour, the Wall Street Journal reported in its online edition on Tuesday. Go to Article from The Wall Street Journal (Subscription Required)» Go to Article from Reuters via The New York Times» Read More Add a comment The aftershock of the financial earthquake that hit Wall Street late in the summer is rattling two major suburban markets north of Manhattan. As elsewhere, office vacancy rates have been climbing in Westchester County, N.Y., and Fairfield County, Conn., which sit side by side. Go to Article from The New York Times» Read More Add a comment Back to Top PRIVATE EQUITY Private equity firms, which have been collecting record amounts of capital over the last three years, may find little appetite for their new funds in a year, according to a new survey from Coller Capital, which buys and sells interests in private equity funds. Go to Item from DealBook» Read More Add a comment Tribune Company is worth a paltry $3.6 billion, based on where its buyout loans are trading -- a far cry from the $12 billion Samuel Zell paid for it a year ago. But creditors have reason to discount its value, Breakingviews argues. Go to Article from Breakingviews via The New York Times» Read More Add a comment Cerberus Capital Management's vast web of investments is becoming an issue in the battle to bail out Chrysler, as a Wisconsin Democrat said he would oppose help to the auto maker until two Cerberus-owned paper mills in his state are reopened. Go to Item from DealBook» Read More Add a comment As icons of Corporate America struggle to stay afloat, they would do well to revisit the rules of private-equity investing -- so says Jonathan F. Foster, founder of Current Capital, who explains his view in a commentary for DealBook. Go to Another View from DealBook» Read More Add a comment The delinquency rate for loans that were packaged and sold to investors as commercial mortgage-backed securities is expected to accelerate, worrying investors and demonstrating that troubles that have already begun to afflict the commercial real estate industry will be widespread and not limited to high-profile deals. Go to Article from The New York Times» Read More Add a comment SAIF Partners, the investment firm backed by Japan's Softbank, has raised 1.6 billion yuan ($233 million) for its first yuan-denominated private equity fund, Reuters reported. Go to Article from Reuters» Read More Add a comment Back to Top HEDGE FUNDS Hedge fund managers are bracing for some serious changes to their industry, which could include more regulation and new fee structures, according to Investment Dealers' Digest. Go to Article from Investment Dealers' Digest» Read More Add a comment Och-Ziff Capital Management, the hedge fund that went public last year, has cut at least 10 jobs in Asia, including that of partner Raaj Shah, Bloomberg News reported, citing people familiar with the matter. Go to Article from Bloomberg News» Read More Add a comment Pershing Square Capital Management, the hedge-fund firm run by William Ackman, has raised the stakes in his bet on mall owner General Growth Properties. Go to Article from The Wall Street Journal» Go to Article from Reuters» Go to Article from Bloomberg News» Go to S.E.C. Filing from Pershing Square» Read More Add a comment Back to Top I.P.O. / OFFERING Ernst & Young has released its Global I.P.O. update and it should come as no surprise that the numbers are dismal. Go to Item from DealBook» Go to Press Release from Ernst &Young via MarketWatch» Read More Add a comment The United States Federal Reserve is considering issuing its own debt for the first time, which would provide the central bank with more flexibility to tackle the financial crisis, The Wall Street Journal reported. Go to Article from The Wall Street Journal» Go to Article from Reuters via The New York Times» Read More Add a comment Back to Top VENTURE CAPITAL William "Boots" Del Biaggio, a former Silicon Valley venture capitalist accused of defrauding investors of $65 million, had a long legal history. Go to Item from Bits» Go to Previous Item from DealBook» Read More Add a comment RiseSmart, which specializes in job search for people looking to earn $100,000 or more, has raised $3 million from Norwest Venture Partners. Go to Article from VentureBeat via The New York Times» Go to Press Release from RiseSmart» Read More Add a comment Web entrepreneurs who refer to their start-ups as their second family, take note: Friday is the second annual Spouse 2.0 Day, dedicated to the significant others of start-up founders. Go to Item from Bits» Read More Add a comment Back to Top LEGAL Tribune, and its attempts to sell Chicago's Wrigley Field, were caught up in an alleged scheme related to Tuesday's stunning arrest of Illinois Gov. Rod Blagojevich, prosecutors say. Go to Item from DealBook» Go to Article from The New York Times» Read More Add a comment Fannie Mae and Freddie Mac engaged in "an orgy of junk mortgage development" that turned the two mortgage-finance giants into vast repositories of subprime and similarly risky loans, a former Fannie executive testified on Tuesday. Go to Article from The New York Times» Read More Add a comment One group has been notably silent on the debate over a federal bailout for Detroit's struggling automakers: foreign car companies. Go to Article from The New York Times» Read More Add a comment Former Chrysler chairman Lee Iacocca said Tuesday that he doesn't think the major automakers should have to oust their chiefs to get federal aid. Go to Item from DealBook» Go to Mr. Iacocca's Statement via PRNewswire» Read More Add a comment The new auto bailout plan has several interesting elements, especially the wide-ranging powers of the proposed auto czar, according to the Deal Professor. Go to Item from The Deal Professor» Read More Add a comment In its latest memo to clients, law firm Wachtell, Lipton, Rosen & Katz offers advice on how directors can prepare for what is expected to be a tumultuous 2009. Go to Item from DealBook» Read More Add a comment Arun Sarin, the former chief of mobile-phone giant Vodafone, has been approached about filling the slot left by Jerry Yang, the Yahoo chief executive who resigned last month, The Financial Times reported. Go to Article from The Financial Times» Read More Add a comment Nortel Networks has sought legal advice to study a bankruptcy protection scenario in the event that its restructuring plan fails and has also been exploring potential assistance from the Canadian government, The Wall Street Journal reported. Go to Article from The Wall Street Journal (Subscription Required)» Go to Article from Reuters via The New York Times» Read More Add a comment The Deal Professor takes a look at Greenwich Financial Services' lawsuit against Countrywide Financial over the principal reductions for subprime and pay-option adjustable-rate mortgages. Go to Item from The Deal Professor» Read More Add a comment Biotechnology industry executives plan to visit Congress on Wednesday to ask for a temporary change in the tax law that would let money-losing companies get cash from the government now, in exchange for tax credits they would pledge not to take if they eventually become profitable. Go to Article from The New York Times» Read More Add a comment Simmons Bedding said Tuesday night that it has won a reprieve from its senior lenders that extends a loan interest forbearance agreement to March 31. In the interim, the company will work to restructure its balance sheet. Go to Item from DealBook» Go to Simmons Press Release via MarketWatch» Read More Add a comment Sullivan & Cromwell said Wednesday that it has hired Donald L. Korb, the chief counsel for the Internal Revenue Service for the past four and a half years, to lead its tax controversy team. Go to Item from DealBook» Read More Add a comment Christopher Cox, chairman of the Securities and Exchange Commission, praised new mark-to-market accounting rules in a speech Monday in Washington, which could mean his agency won't recommend major changes. Go to Item from DealBook» Go to Text of Mr. Cox's Speech» Go to Article from CFO.com» Read More Add a comment Get home delivery of The New York Times for as low as $3.15 a week.

SEARCH DEALBOOK SITE DealBook | E-mail Preferences Help | Advertising Opportunities Workers Pay for Tribune Debacle Sam Zell literally mortgaged the future of Tribune's employees to close his ill-fated buyout deal. More» Sarin would tick important boxes for Yahoo December 10, 2008 Tribune's creditors leave margin for error December 9, 2008 Now all the US needs is prohibition December 9, 2008 Rescue Memo to Vikram Pandit Jack Flack says that Citigroup's chief executive needs to stop surviving and start leading. More» Video: Chrysler's Plea Robert Nardelli, the chairman of Chrysler, urged members of the Senate Banking Committee to approve federal aid for his company. More» What's a Wall Street Chief Worth? With taxpayers' money on the line, creating packages that pay enough -- but not too much -- becomes an even thornier problem. More» Tracking the Bailout The New York Times tracks how the $700 billion Troubled Asset Relief Program is being doled out to banks, insurance companies and more. More» The Deal Professor A blog-within-a-blog that looks at mergers, private equity and corporate governance through a legal lens, written by Steven M. Davidoff, a professor at the University of Connecticut School of Law and a former lawyer at Shearman & Sterling. More» Revolving Door The latest hires, promotions and departures at Kirkland & Ellis, Fannie Mae, BlackRock and more. More» The Rescue Squad DealBook's special section looks at the people reshaping Wall Street and what the new landscape might look like. More» Lehman's Fall Full coverage of Lehman Brothers' dramatic slide into bankruptcy protection. More» The Bear Bailout Full coverage of the proposed takeover of the troubled investment bank -- and the crisis that led to the sale. More» DealBook for BlackBerry Get one-click access to DealBook to read the latest deal news throughout the day. Visit mobile.nytimes.com/bbinstall directly from your BlackBerry or by sending the text message "db install" to 698698. More information on DealBook for BlackBerry. News By Industry Airlines / Autos Basic Industries Consumer Goods Energy / Utilities Financial Services Food & Beverage Healthcare Media Real Estate Retail / Leisure Technology Telecom Tools & Resources GET QUOTES Look Up Symbol RESEARCH SUITE Portfolio Company Research U.S. Markets International Markets Mutual Funds SEND A TIP OR FEEDBACK E-mail us at dealbook@nytimes.com Dealboard

About This E-mail DealBook is a joint production of The New York Times and NYTimes.com, published daily, Monday-Friday, except on U.S. Market holidays and during the last week of the year. Editorial staff: Andrew Ross Sorkin, Peter Edmonston, Michael de la Merced and Liza Klaussmann. You received this message because you signed up for NYTimes.com's DealBook newsletter. As a member of the BBBOnline Privacy Program and the TRUSTe privacy program, we are committed to protecting your privacy. Manage Subscriptions | Unsubscribe| Change Your E-Mail | Privacy Policy | Contact | Advertise | nytimes.com/dealbook

Copyright 2008 | The New York Times Company | Privacy Policy | 620 Eighth Avenue New York, NY 10018