Afternoon Roundup: Today's Top Stories
At The Motley Fool, we know our readers like to be informed. We've scouted out today's most relevant news items and brought them to you all on one page. We hope you find this midday edition informative and useful.
Four months after going public, Dunkin' Brands (NAS: DNKN) announced that its international president, Neal Yanofsky, is leaving the company. Dunkin' Brands didn't give a reason for Yanofsky's departure, other than to say the company wasn't a good fit for him -- perhaps surprising, given that CEO Nigel Travis not long ago praised Yanofsky for the skill set he brought to the company. Before coming to Dunkin' Brands, Yanofsky was CEO of Generation Mobile and president of Panera Bread (NAS: PNRA) .
While the company looks for a replacement, Dunkin' Donuts International will report to Travis, while Baskin Robbins International will report to CFO Neil Moses. The company plans on expanding its international business by opening 400 to 500 net new restaurants, adding to the existing 7,000 outside the United States. Read more at Reuters.
In the face of doubtful investors and cash-hoarding companies worried that Western countries won't be able to defuse a ballooning debt crisis, Wall Street's mightiest firm, Goldman Sachs (NYS: GS) , might post its first quarterly loss since the 2008 financial crisis. Goldman's rival, Morgan Stanley (NYS: MS) , has seen its shares drop 21% over fears for its profit outlook and exposure to the European crisis.
Weaker banks may have a vast negative effect on the country's economy. The thinking goes that lower profits will most likely lead to restructuring and job cuts, which will then lead to overall lower consumer spending. Slumping banks will probably lend less, increasing the risk of a recession. Bank of America (NYS: BAC) already announced that it will reduce 30,000 jobs in hopes of reducing costs, while Goldman said it will cut a large percentage of its low performers. Read more at The Wall Street Journal.
(NAS: DISH) announced that it will offer a Blockbuster-branded subscription online movie-rental service to challenge Netflix's (NAS: NFLX) product. The new service will allow users to stream a movie after paying a one-time transaction fee, the company said. CEO Joseph Clayton said he believes DISH can compete with the likes of Hulu and Netflix with this new product.
Netflix has recently been under fire after unexpectedly raising prices on its DVD-by-mail service. The company also announced that it will spin off the business, which will now be known as Qwikster. An apology letter from CEO Reed Hastings didn't keep the stock from dropping.
Bank of America announced that it will sell a roughly $880 million portfolio of commercial mortgages at a discounted rate of 20% to 25% off face value. A venture of Square Capital Management and a fund managed by Canyon Capital Realty Advisors will buy the portfolio, which is a mix of performing and non-performing loans tied to 32 properties, including the Renaissance office Building in Wilmington, Del., and the Bank of America Tower in St. Louis -- which the bank doesn't own.
This is a large deal as banks continue to sell loans they'd made before the financial crisis. Bank of America, which has been selling off assets that are not part of its core business, recently sold an $8.6 billion Canadian credit card portfolio. Read more atThe Wall Street Journal.
So there you have it -- the top financial stories for this afternoon. If you're interested in getting all the news and commentary on these stocks, sign up for My Watchlist -- it's free!
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At the time this article was published Michelle Zayed doesn't own any stocks mentioned. The Motley Fool owns shares of Panera Bread and Bank of America.Motley Fool newsletter serviceshave recommended buying shares of Panera Bread and Netflix and creating a bear put spread position in Netflix. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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