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GM loses big: The carmaker says that its cash reserves at the end of 2008 were down to $14 billion (sounds like a lot but it's not), and that it lost $9.6 billion in the fourth quarter. At this point the numbers don’t much matter - the company's fate will be based on political and not financial considerations. (NYT)
Ken Lewis playing up Countrywide: The Bank of America CEO says that $30 billion worth of mortgages were originated at B of A in January, much of that coming from Countrywide, the mortgage giant that the bank bought last year. Speaking to Bloomberg TV, Lewis says that when interest rates fall below 5 percent "you get action." He has sounded quite bullish on the Countrywide acquisition (still causing some head scratching on Wall Street). From Bloomberg:
Two former Bank of America Corp. chief executive officers praised CEO Kenneth Lewis’s decision to buy Countrywide Financial Corp. and said the government forced the bank to purchase Merrill Lynch & Co. Acquiring Countrywide puts the bank “in a unique position to take advantage of one of the few bright spots in the entire industry right now: the surging market for mortgage financing that is being fed by extremely low interest rates,” Hugh McColl Jr. and Thomas Storrs said in a letter published today in the Charlotte Observer.
Leno on the hot seat: The late-night host came before a disciplinary panel of the Writer Guild over whether he violated strike rules last year by delivering a monologue on "The Tonight Show." He could face a fine, suspension or expulsion from the guild. Leno went back on the air while the strike was still going on, claiming at the time that he was following guild rules. (Variety)
Ryland chief retires: R. Chad Dreier will be stepping down as CEO of the Calabasas-based homebuilder, to be replaced by the company's president, Larry Nicholson. Dreier was one of the best-compensated executives during the housing boom - over a five-year period he made $181 million, according to a WSJ analysis. (DJ)
WaMu-related cuts: JPMorgan Chase says it will eliminate about 12,000 jobs as it folds in the operations of Washington Mutual. Earlier, JPMorgan had put the number at 9,000. In any event, several thousand are coming from California, though the bank has no plans to close any of the state's branches. (AP)
L.A. film czar?: City officials are considering hiring someone to be a liaison for the film industry. It's another move to address the loss of film location shooting to other cities and states. (Daily News)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.