WSF Headline Roundup - 12/01/08 - GM's new plan; Citi sells Japan unit; Morgan Stanley's banking push; Goldman gets NY bank license ok; New Star mess; Neuberger bids deadline; Shoppers look for bargains; Latest YHOO / MSFT rumor denied; Trump debt troubl

• GM board reviews new turnaround plan for bailout
• Citi to raise cash by selling Japanese unit
• Morgan Stanley Blitzes Into Banking
• Goldman Sachs Wins New York State Approval for Banking License
• New Star Says It’s in ‘Advanced’ Talks With Lenders
• Deadline looms for rival Neuberger bids
• Libor for Three-Month Dollars Rises for Third Day, BBA Says
• Crude Oil Falls After OPEC Delays Decision to Reduce Production
• Holiday Weekend Shopping Grew Despite Weak Economy, Reports Show
• Deep Discounts Draw Shoppers, but Not Profits
• Yahoo-Microsoft report denied
• Deutsche Bank Sues Trump
• Trump Entertainment Forgoes Interest Payment to Conserve Cash

GM board reviews new turnaround plan for bailout - Reuters

The board of General Motors Corp met on Sunday to review a restructuring plan intended to cut costs and win support for up to $12 billion in emergency funding from the government, a person familiar with the deliberations said.

Along with rivals Ford Motor Co and Chrysler LLC, GM is rushing to complete the business plans demanded by Congress as a condition of considering a $25-billion rescue package for the embattled industry.

A GM spokesman said the automaker does not comment on board meetings as a matter of policy. "We are moving ahead toward delivering the plan," GM spokesman Tom Wilkinson said....

Citi to raise cash by selling Japanese unit - Financial Times

Citigroup is poised to sell NikkoCiti Trust and Banking Corporation, its trust bank in Japan, as part of a global move to raise much needed funds through asset disposals and restructuring measures.

The US bank, which is expected to start receiving bids for its trust bank business this week, could raise an estimated Y40bn ($400m) through the sale, Japanese media reported.

The sale comes as Citigroup faces intense pressure to cut costs after issuing preference shares to the US government to raise much-needed capital.....

Morgan Stanley Blitzes Into Banking - Wall Street Journal

It probably won't be "stocks and socks" all over again, but Morgan Stanley is revving up its push into retail banking.

Two months after converting to a bank-holding company, executives at the New York firm are considering a variety of scenarios to increase deposits, including acquisitions of regional banks with a customer base that overlaps with Morgan Stanley's existing brokerage and asset-management clients.

"The external environment seems to be aligned for us to become bigger in this space," says James Gorman, a Morgan Stanley co-president who is leading the retail-banking push.

Executives won't discuss specific targets or predict how quickly Morgan Stanley might strike a deal. The firm already has about $36 billion in deposits, ranking it among the 50 largest U.S. banks. A big chunk of those deposits comes from checking accounts and other products sold to brokerage customers.....

Goldman Sachs Wins New York State Approval for Banking License - Bloomberg

Goldman Sachs Group Inc. won approval for a New York State banking license to transform into a bank holding company and take deposits. 

Goldman Sachs Bank USA will have its headquarters in New York City, the New York State Banking Department said today in a statement. 

Goldman, which was the biggest U.S. securities firm before converting to a bank holding company in September, applied in October to become a full-service, state-chartered bank instead of a national bank like rival Morgan Stanley. Goldman was one of nine major U.S. banks that received a total of $125 billion under the U.S. government’s $700 billion rescue plan for the financial industry.....

New Star Says It’s in ‘Advanced’ Talks With Lenders - Bloomberg

New Star Asset Management Group Ltd., the U.K. fund company founded eight years ago by John Duffield, is in discussions with lenders and asked to temporarily suspend its stock from trading in London. 

New Star is in “advanced and constructive” talks with its bank syndicate and is seeking the stock suspension pending the conclusion of those discussions, the London-based company said in a statement today. 

The company, which has lost 93 percent of its market value this year, said last week it had halted redemptions at its International Property Fund. New Star also agreed last month to pay a higher interest rate on its debt as assets under management fell to 14.3 billion pounds ($22 billion) after markets deteriorated and clients withdrew funds.....

Deadline looms for rival Neuberger bids - Reuters

A deal to sell Lehman Brothers Holding's prized Neuberger asset management arm to two private equity firms could be challenged on Monday if any rival bidders emerge to counterbid by a noon deadline.

The $2.15 billion sale of the unit to Bain Capital LLC and Hellman & Friedman LLC was agreed on Sept. 29, two weeks after Lehman filed for bankruptcy protection.

A bankruptcy court in October set a deadline for other parties to submit bids by Dec. 1 at 12:00 noon New York time (1700 GMT), and scheduled an auction for Dec. 3....

Libor for Three-Month Dollars Rises for Third Day, BBA Says - Bloomberg

The London interbank offered rate, or Libor, that banks say they charge each other for three-month loans in dollars rose for a third day. 

The rate climbed less than half a basis point to 2.22 percent today, according to British Bankers’ Association data. The overnight rate dropped seven basis points to 1.09 percent, nine basis points above the Federal Reserve’s target.....

Crude Oil Falls After OPEC Delays Decision to Reduce Production - Bloomberg

Crude oil fell below $53 a barrel in New York after the Organization of Petroleum Exporting Countries deferred for another two weeks a decision to reduce output. 

Slowing global growth means demand will be ``much lower'' than expected a month ago, OPEC said in a statement after the group's Nov. 29 meeting in Cairo. Another cut on Dec. 17 may not be needed if member states enacted 80 percent of the 1.5 million barrel-a-day reduction agreed in October, Al Hayat reported, citing Saudi Arabia's Oil Minister Ali al-Naimi. 

``We've got a market that's focused a little bit too much on the demand-side factors and perhaps less on supply,'' Gerard Burg, energy and minerals economist at National Australia Bank Ltd. in Melbourne, said in a Bloomberg television interview. The impact of future cuts ``will be muted by the fact that spare capacity has been on the increase,'' he said.....

Holiday Weekend Shopping Grew Despite Weak Economy, Reports Show - Washington Post

Consumers swarmed the nation's stores over the weekend in search of deeply discounted electronics and apparel, sending sales rising and giving retailers a little Christmas cheer, according to early reports released yesterday. 

Market research firm ShopperTrak reported that sales on Black Friday grew 3 percent to about $10.6 billion. Last year, sales on that day grew 8.3 percent. 

"Under these circumstances, to start off the season in this fashion is truly amazing and is a testament to the resiliency of the American consumer, and undeniably proves a willingness to spend," said Bill Martin, ShopperTrak co-founder....

Deep Discounts Draw Shoppers, but Not Profits - NY Times

Sales in the nation’s stores were strong over the weekend, to the relief of retailers that had been expecting a holiday shopping period as slow as the overall economy.

But while spending was up, there were troubling signs in the early numbers. The bargains that drove shoppers to stores were so stunning, analysts said that retailers — already suffering from double-digit sales declines the last two months — would probably see their profits erode even further.

Also, after shoppers flooded stores on Friday, foot traffic trailed off significantly on Saturday and Sunday.....

Yahoo-Microsoft report denied - Bloomberg via Mercury News

Yahoo isn't planning to sell its Internet search business to a group of investors backed by Microsoft, people familiar with the situation said Sunday, denying a report in the Sunday Times of London.

The Times reported, citing no sources, that Microsoft is backing a new management team to take control of the search unit after its failed takeover attempt.

But there are no plans by Yahoo to sell the business, people familiar with the matter told Bloomberg News....

Deutsche Bank Sues Trump - Wall Street Journal

Deutsche Bank AG sued Donald Trump over the developer's troubled Chicago condominium and hotel project, in a further sign of the deteriorating situation among lenders and borrowers in commercial real estate.

The suit, filed in New York state Supreme Court in Manhattan on Friday, demands Mr. Trump pay a $40 million personal guarantee connected to a $640 million construction loan that Deutsche Bank originated in 2005. That loan came due Nov. 7 with an outstanding balance of $334 million.

Mr. Trump didn't return a request for comment. A Deutsche Bank spokesman declined to comment.....

Trump Entertainment Forgoes Interest Payment to Conserve Cash - Bloomberg

Trump Entertainment Resorts Inc., the casino company founded by Donald Trump, said it will forgo a $53 million bond-interest payment due Dec. 1 as it negotiates with creditors on ways to restructure the company’s finances. 

Trump has a 30-day grace period during which it will hold talks with lenders. The company’s board formed a committee to oversee the discussions, Atlantic City, New Jersey-based Trump said today in a statement on Globe Newswire. 

The casino owner posted its fourth straight quarterly loss this month as its Atlantic City properties attracted fewer gamblers and it wrote down the value of its Taj Mahal Casino....