Vivendi to Sell NBC Universal Stake to GE for $5.8 Billion 
Dec. 3 (Bloomberg) -- Vivendi SA agreed to sell its 20percent stake in NBC Universal to General Electric Co. for $5.8billion, paving the way for GE to shift control of the U.S.media group to Comcast Corp.
The Paris-based owner of the world’s largest music companywill sell 7.66 percent of NBC Universal to GE for $2billion in September 2010. It will sell the rest for $3.8 billionwhen the GE-Comcast deal is closed, the companies said in astatement. The stake is valued on Vivendi’s balance sheet atabout 4.3 billion euros ($6.5 billion).
The decision will set in motion a GE plan to sell controlof New-York based NBC Universal, which owns television stations,Hollywood film studios and amusement parks, to Comcast, thelargest U.S. cable company. Comcast and GE today announced a $30billion agreement to transfer control of NBC Universal from GEto Comcast.
Bernanke Doesn't Rule Out Using Rates to Control Asset Bubbles
Dec. 3 (Bloomberg) -- Federal Reserve Chairman Ben S.Bernanke said he doesn’t rule out using monetary policy to popasset-price bubbles, while stressing that financial regulationis his preferred approach.
“Supervision, regulation of the financial system is thestrongest, most effective” way to deal with bubbles, he said inresponse to a question at a Senate Banking Committee hearingconsidering his nomination to a second term. “I do not rule outusing monetary policy if necessary, if that situation doesbecome worrisome and threatening.”
Bernanke said he sees no sign of “extreme misvaluations”in U.S. markets. Fed policy makers said for the first time lastmonth that their decision to cut interest rates to zero may befueling undue financial-market speculation, according to minutesof their Nov. 3-4 meeting released last week.
GLOBAL MARKETS-World stocks race to 14-mth high after bofa
* MSCI world equity index hits 14-month high of 302.45
* BofA move to repay taxpayer funds boost optimism
* Oil rises; dollar, yen under pressure
Web-TV Divide Is Back in Focus With NBC Sale
As she prepared her daughter for college, Anne Sweeney insisted that a television be among the dorm room accessories.
“Mom, you don’t understand. I don’t need it,” her 19-year-old responded, saying she could watch whatever she wanted on her computer, at no charge.
That flustered Ms. Sweeney, who happens to be the president of the Disney-ABC Television Group.
Bank of America to Repay Bailout, Easing CEO Search
Dec. 3 (Bloomberg) -- Bank of America Corp., the nation’sbiggest lender, will repay $45 billion of U.S. governmentbailout funds, helping free the bank from curbs on executive paythat have hampered its search for a new leader.
The bank will repay the Troubled Asset Relief Program using$26.2 billion of “excess liquidity” and $18.8 billion from thesale of securities, according to a statement. The firm plans toincrease equity by $4 billion through asset sales, and willissue $1.7 billion of restricted stock instead of year-endbonuses to some employees.
Bank of America’s two rounds of U.S. funding included $20billion to help cushion losses tied to the takeover of MerrillLynch & Co. The planned repayment will ease the bank’s effort toreplace Chief Executive Officer Kenneth D. Lewis, who announcedhis departure in September.
Move to Repay Aid Helps Bank of America Shed a Stigma
Less than a year after grasping two multibillion-dollar bailouts from Washington, a resurgent Bank of America announced on Wednesday that it would repay all of its federal aid, underscoring the banking industry’s swift recovery from the gravest financial crisis since the Depression.
Despite continuing problems with its loans to struggling homeowners and consumers, Bank of America plans to return the $45 billion in aid that it received at the height of the financial panic — a step that, only months ago, would have been almost unimaginable.
But like many other big banks, Bank of America is once again making money, in large part through Wall Street businesses like trading stocks and bonds, rather than by making loans. Its recovery, while many ordinary Americans are still struggling, is an important milestone in the government’s yearlong effort to stabilize the nation’s financial industry.
Bank of America Will Repay Bailout, Easing Search for CEO
Dec. 3 (Bloomberg) -- Bank of America Corp., the nation’sbiggest lender, will repay $45 billion of government bailoutfunds, helping free the bank from U.S. curbs on executive paythat have hampered its search for a new leader.
The bank will repay the Troubled Asset Relief Program using$26.2 billion of “excess liquidity” and $18.8 billion from thesale of securities, according to a statement today. The firmplans to increase equity by $4 billion through asset sales, andwill issue $1.7 billion of restricted stock instead of year-endbonuses to some employees.
Bank of America’s two rounds of U.S. funding included $20billion to help cushion losses tied to the takeover of MerrillLynch & Co. The planned repayment will ease the bank’s effort toreplace Chief Executive Officer Kenneth D. Lewis, who announcedhis departure in September.
Most US Stocks Advance After Fed Says Economy Is Improving
Dec. 2 (Bloomberg) -- Most U.S. stocks rose for a third dayafter the Federal Reserve said the economy is improving andgains in metal prices lifted raw-material producers,overshadowing declines in energy companies and banks.
Alcoa Inc., Home Depot Inc. and Verizon Communications Inc.gained at least 1 percent as the Fed’s Beige Book report saidthe economy improved “modestly” across the U.S. from Octoberto mid-November as consumer spending increased. Exxon MobilCorp. and Schlumberger Ltd. led energy shares lower as crudeplunged on an increase in inventories, while JPMorgan Chase &Co. fell on an analyst’s prediction that revenue may fall by $3billion if most derivatives trades move to exchanges.
“I don’t see anything here that threatens a nascentrecovery where the fourth quarter’s going to show positive GDPgrowth,” Peter Sorrentino, who helps manage $13.8 billion atHuntington Asset Management in Cincinnati, said of the Fed’ssummary of economic conditions. “At least at the moment, theeconomy’s still recovering and we’re out of recession.’”
Whitacre Said to Tell GM Employees Search for Chief May Take Up to a Year
Dec. 2 (Bloomberg) -- General Motors Co. Chairman EdWhitacre, who took over the chief executive officer job fromFritz Henderson yesterday, told employees that the search for anew CEO may take as long as a year.
Whitacre, 68, who as chief of AT&T Inc. assembled theworld’s largest telecom company, said the selection processwould last as much time as necessary, said two people whowatched him in a 30-minute broadcast. The search may also becompleted within months, said the people, who asked not to beidentified discussing internal communications.
Whitacre was appointed by the Obama Administration’sautomotive task force in July.
Whitacre Said to Say CEO Search May Take as Long as a Year
Dec. 2 (Bloomberg) -- General Motors Co. Chairman EdWhitacre told employees today that he may need to hold the chiefexecutive officer job as long as a year while he seeks areplacement for Fritz Henderson, who was ousted yesterday,people familiar with the 30-minute broadcast said.
Whitacre, who spoke conversationally from a few notes, saidthe search would not be rushed, and will be given as much timeas is needed, said the people, who didn’t want to be quoteddiscussing internal communications. The search also may becompleted within months, they said.
Whitacre said additional firings were not planned, theysaid.
