Catie is wife of Donald Marron (financier, private equity investor and entrepreneur).
White Mountains Re Group Ltd.. announces its decision to sell its U.S. subsidiary Sirius to an investor group led by Light year Capital. The transaction must be finalized before the end of summer 2006.
CBRE is the world's leading property asset management by acquiring ING REIM
Undermined by the crisis and invited the Commission to refocus on his heart craft, the Dutch giant ING Group has recently separated from ING REIM, a subsidiary of real estate asset management on behalf of CB Richard Ellis ( CBRE) for most of its activities. The transaction, which amounts to 940 million dollars (695 million) gives the buyer the world leader in this market. CB Richard Ellis recovered at this time the $ 44.7 billion (33 billion) of assets managed by ING REIM Europe, Asia and ING REIM Clarion Real Estate Securities (CRES). CBRE Investors currently manages $ 37.6 billion (27.8 billion euros) in assets.
Big is (again) beautiful
With the return of large mergers and acquisitions, it opens a new cycle in real estate. ProLogis / AMB to form a global giant in the logistics, and now the group CB Richard Ellis who will get their hands on ING REIM. This mega-deal, € 770 million (940 million), comprises all operations of ING REIM Europe and Asia but also the U.S. subsidiary Clarion Real Estate Securities (CRES). A second transaction for Clarion Partners has also been reached with the asset management company Light year Capital.
Now remains to find buyers for toxic assets
Is this the beginning of the bounce? Wonder many investors - and citizens - in seeing the reaction to the new grants U.S. rescue banks. The contrast is striking with the icy reception given to its first version in February.
Has the situation changed so much in six weeks? No. The updated version offers more details and a few days after a massive purchase of Treasury bonds by the Federal Reserve. After a period of uncertainty where the Obama administration gave the impression of being more interested in health care and education to the financial crisis, or being dragged by a popular revolt on bonuses AIG, it takes the initiative. The rebound of an award is the first sigh of relief on Wall Street.
On the merits, the plan Geithner, of the Secretary of the Treasury, adheres to the principles established in February:
1. Rid banks of toxic assets inherited from the deflating housing bubble, and for which there is currently no market. This "legacy" as nicely appointed the official document, amounts to one trillion dollars at least.
2. Let the market set itself the value of toxic securities.
How to get investors to buy today what they were sulking yesterday? By providing strong incentives. For every dollar invested by a private actor, the state put 12 in the form of loans or guarantees. The icing on the cake, government loans are "non-recourse" is to say that private investors do not lose their initial wager if they can put on the market the shares purchased, as they affect much of the potential gains.
This arrangement is generous to say Nobel laureate economist Paul Krugman and Joseph Stiglitz that the bet is one way. "This is not to let the markets work, but rather an indirect subsidy to the purchase of toxic securities," writes Paul Krugman. The taxpayer will be the fall guy, complains Joseph Stiglitz.
But the big question is first: investors they will bite the bait? Tim Geithner did not run blindly. "This plan is perhaps the first win-win proposal that arrives at the table, it should be greeted with enthusiasm," said Bill Gross, founder of Pimco, one of the major funds that should be involved in setting the value of assets. Black Rock, the largest bond trading company, also appears ready to participate. The hedge fund managers are more reserved.
For Donald Marron, Light year Capital, the plan opens Geithner "the first crack in the ice." It will measure the extent of the problem, bring transparency in this market. For now, there is a chess game between the banks holding assets rotten (Citigroup head) and potential buyers. The first pretend not to be pressed to avoid selling at bargain prices, while the latter know that time is on their side. The plan Geithner is biased on this point, observe certain: it helps especially soundest banks in the position to wait any longer, so get a better price.
And if the markets came to the conclusion that banks refuse to see in front for a year, asks Paul Krugman, that their toxic assets are worth nothing in reality, or at least much less than they trying to convince? In this case, the debate on the nationalization would come roaring back, but would have lost precious months marked by the deterioration of the real economy, which impacts negatively on the spiral balance sheets of banks.
A timetable and regular monitoring of operations would have been welcome to minimize this risk. The official document does not mention it.
The economist James Surowiecki summed up the general feeling when he wrote that if the plan Geithner was to appear in retrospect as a mistake, "it will not be because the Obama administration has misjudged the situation, but rather because it will be considered too heavy cost of nationalization, "and cross your fingers hoping that the financial system is strong enough in the spring of 2009 to digest its toxic securities, with a big boost public. Markets and taxpayers their fingers crossed with him.
ING sells assets
The Dutch bank insurer ING will sell "most" of its advisory and management services for real estate investments of 1.04 billion dollars (about 770 million euros), said Tuesday the Dutch group. The transaction includes the sale of real estate services group at CB Richard Ellis (CBRE), for $ 940 million, the activities of ING REIM Europe and Asia, the U.S. company Clarion Real Estate Securities, which specializes in managing real estate securities. These three companies all managed at December 31, 2010, 44.7 billion euros in assets. CBRE, operated at 31 December 2010, 27.8 billion euros. The advisor and investment manager in the private market Real American Clarion Partners, which manages 16.5 billion euros in assets, will in turn sold $ 100 million to his leadership, in partnership with management company Asset Light year Capital. ING expects that the two transactions, which must still be approved by competent authorities, are closed during the second half. The bancassurance hopes to achieve an after tax gain of EUR 500 million on these two transactions. (AFP)
The U.S. proposal: the carriage of Cinderella
Everyone knows the story of Cinderella and her carriage disappears at midnight. Who would not give any confidence to the princess Cinderella, and possibly without confession?
Everyone, including the consular authorities of the state, prefecture included. But weary, as in the tale, at midnight the coach goes and Cinderella found poor as Job. In version Ardennes, Cinderella had anticipated and planned to remove the royal coach in Delaware, a U.S. State not looking too over the sudden fortunes. Continuing the story from the beginning and see how Cinderella discovered the Ardennes.
In November 2003 the Catalina team was informed of the situation by Vistéon ATG (one of the main customers of ATG) with the objective to support the "management" of the company management . Catalina presented itself as a consulting and expertise in the field of automotive suppliers, composed of former executives from Toyota. When ATG had filed for bankruptcy and was placed in receivership, Catalina had other more ambitious projects.
In June 2004, Catalina filed a continuation plan quite marvelous cover of all staff, including hiring 71 employees in CDI CDD (3), the liability is recorded with a plan to clear debts. Catalina will create a group of automotive suppliers using the methods of cost reduction in force at Toyota. Everything is wonderful, promises only bind those who believe and Cinderella knows.
Catalina can not alone but in this case associated with Light year Capital Fund, an investment fund. Light year provides a credit line of 3 million Euros for a period of 5 years in which ATG can draw, as necessary, and resumes with Catalina in equal shares of 75%-Thomé Génot for the euro symbol . (6) (9)
It's midnight at a quarter the carriage is magnificent. In his view, very friendly, delivered at the commercial court administrator, under the spell Light year will explain that the company has huge financial possibilities, the proof being provided by a letter from Ernst and Young (6).
Yet there is already a small grain of sand in the gears fine: Ernst and Young, Titanic auditing firm and consultancy, third sector globally accumulated a few "incidents" in recent times. In April 2004, Ernst and Young is ordered by an administrative court fined U.S. $ 1.7 million and a ban on accepting any new customers for 6 months to have a business relationship with a publisher so that it was responsible for auditing its accounts. (4)
In February 2003, the State of Geneva urged action against the firm because of infringement of its legal obligations and statutory auditors of banking, these acts have caused injury to the State of over 3 billion francs for which reimbursement is claimed to Ernst and Young. (5)
Back to our story, the administrator is amazed by the carriage Light year. Without doubt he would have questioned the certificate presented by Cinderella, but he did not, despite some information readily available. We can not blame him because at that time everything was still wonderful.
Midnight, the coach goes with him and Light year Capital Fund. Here is what the daily Le Monde: "The first anomaly, between the filing of the recovery plan and the court hearing, Light year Fund, which was to secure 50% funding has disappeared from official documents." (6)
The carriage turned into a Cinderella pumpkin, but promises much: Greg Willis' chief executive officer "of Catalina Capital Advisors, LLC (7):" Catalina thoroughly to enable ATG to meet its commitments. "Exit Light year, Greg "responsible" as they say in business circles.
On September 29, 2004, ATG sells 75.09% stake in Catalina, provided that the commercial court accepts the continuation plan. (3)
On October 14, 2004, as one man and despite the disappearance of Light year, the Commercial Court endorses the continuation plan filed by Catalina (3).