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February 3rd, 2009
11:36 AM ET

Financial Dispatch: Tuesday’s tally – 8,300 jobs gone

Andrew Torgan
CNN Financial News Producer

Thousands more workers got bad news today as companies in fields ranging from financial services to retail announced job cuts. All told, five companies said they would eliminate more than 8,300 positions.

-PNC Financial Services Group plans to cut 5,800 jobs, or nearly 10% of its workforce, following its acquisition of National City last year.

-Liz Claiborne is cutting 725 jobs, or 8% of its workforce, in response to what it called a "challenging retail and economic environment."

-King Pharmaceuticals will reduce its workforce by 22%, or 760 jobs.

-Rockwell Collins, a maker of aviation electronics, plans to eliminate 600 jobs

-Huntington Bank says it will eliminate approximately 500 positions, or approximately 4 percent of its workforce, throughout 6 states by March 1.

On Friday, we’ll be getting the employment report for January. Current estimates are that the economy shed another 500,000 jobs last month. And the unemployment rate is expected to jump to 7.5% - the highest level since the early 1990s.

Citigroup is said to be exploring the possibility of backing out of a nearly $400 million marketing deal with the New York Mets baseball team.

Officials at Citigroup have made no final decision about whether to try to void the 20-year agreement, which includes naming the Mets' new stadium after the bank. Asked to comment on the story, a Citi spokesman would only say: “Citi signed a legally binding agreement with the New York Mets in 2006. We’re using no TARP capital for Citi Field, or for marketing purposes.”

Next week, Citigroup CEO Vikram Pandit and other bank CEOs are scheduled to appear before a House committee, where they are likely to be pressed for answers about their use of taxpayer-funded bailout money.

Today, Citi offered its first glimpse into how it’s spending the $45 billion in government bailout money it’s received in recent months by issuing its first quarterly progress report on spending.

Real estate values around the nation have collapsed and sales of foreclosed and "underwater" homes now dominate many housing markets. According to a report from real estate Web site Zillow.com, nearly 20% of the nation's home sales in 2008 were of bank-repossessed properties. Another 11% were short sales, in which homeowners owed more in mortgage debt than their homes were worth.

But pending home sales rebounded in December as buyers snapped up properties at deep discounts, especially in the South and Midwest. The National Association of Realtors says its seasonally adjusted index of pending sales for pre-owned homes rose 6.3% in December. The reading also was up 2.1 percent from December 2007.

Gas prices rose 1 cent overnight to $1.890 a gallon. That’s the sixth consecutive increase. 6 states now have regular unleaded gas prices of $2 and higher. The highest gas prices are in Alaska ($2.467). 44 states and the District of Columbia have regular unleaded gas prices below $2. The cheapest gas prices are in Wyoming ($1.563)

And be sure to check out CNNMoney.com’s gallery of the 14 cleanest vehicles on the road, according to the American Council for an Energy Efficient Economy.

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Filed under: Andrew Torgan • Citigroup • Economy • Finance • Gas Prices • Housing Market • Oil • Wall St.
soundoff (23 Responses)
  1. ronvan

    What a mess! I like the idea of giving the American people this money! Right now it seems we are to suffer while we bail out all these crooks! I wouldn't give a penny to all these failed banks and car dealers. Again I totally agree with Greggs comment about cars. All 3 of our american car makers created their own problems by charging stupid prices for cars that do not last long enough to make the final payment! And I know they have the knowledge and technical ability to make more fuel efficient cars but they will not do it and even if they do the car will be overpriced!! The sad part is that WE could put a stop to most of this if ALL of us would band together as one, but I do not see that happening!

    February 4, 2009 at 10:17 am |
  2. jim Fallbrook CA

    There is nothing wrong with reporting these statistics. When the liberal news media compares this recession as the worst since the great depression, they need a history lesson. Missing in this equation is Jimmy Carter 1977-1981. This recession is not even close to being as bad as it was with Carter. I was there. My knowledge of history cannot be flawed. With Carter mortgage rates wer at 21% interest, unemployment 14% and inflation at 18%. This definitely did not help the poor. I always thought the democrats were for the working and middle class. Not this time. It was as close to a depression as it can get. Then there was the 444 Day American Hostage and allowing a terrorist government to overthrow the Shah of Iran who was Pro West. This is the main reason we are stuck paying billions of dollars in the Middle East. When making comparisons of this recession, the liberal news media should say the worst recession since 1980. You have to understand things are getting worse but not as bad as it was with Carter in Office.

    February 3, 2009 at 10:27 pm |
  3. jarrod

    I DON"T think the politician are working quick enough on this stimulus package as more and more are becoming jobless and more states are cutting into the welfare and uneployment benifits crime is going up and wealthier people are complaining about taking care of those that can't get a job and are relying on the government but PEOPLE have to survive and I think that all politician need to freeze thier pay until they fix this national problem then they all will work together an eliminate the job loss.......hence if all americans together would band together and stop all transactions i think our government would begin to listen to the people that elected them in the first place

    February 3, 2009 at 8:46 pm |
  4. xavier harris

    I HAVE THE SOLUTION TO THE BAILOUT.THERE ARE ONLY ABOUT 300 MILLION ROOF TOPS IN AMERICA RIGHT?INSTEAD OF GIVING THE BANK ROBBERS THE MONEY,HOW ABOUT GIVING EACH HOMEOWNER OR TAX PAYER 1 MILLION DOLLARS EACH AND LET US STIMULATE THE ECONOMY THE RIGHT WAY.WE WOULD COME OUT ALOT CHEAPER AMERICA.

    February 3, 2009 at 7:52 pm |
  5. joe pernesti

    Forget about giving the banking industries billions.Give each american household fifty thousand each.Let the goverment pay out all outstanding accounts such as mortgage loans , student loans,vehicle notes , along with credit cards, not pay off just catch them up bring them current . Give the household the additional balance to spend , buy, or start the economy back up and create jobs .Single household receive twenty -five thousand this money is only for taxpayers only .This way all the banking and financial institution get what they are owed no more no less.Cost of program approxiamately twelve billion stimulus plan .Eight hundred thirty billion use balance to fund projects and create jobs not to pay million dollar bonuses.

    February 3, 2009 at 7:35 pm |
  6. dan davidson

    where was all this concern when GE cut 3000 jobs in NH in the 90's.
    sent jobs to Mexico and imported ready to go electronic boards.

    Now in Texas making less.
    I've done my part – buying stocks, appliances and last week a truck.
    I have no sympathy for anyone who makes 100K+ and doesn't have a huge savings account

    February 3, 2009 at 6:04 pm |
  7. jim Fallbrook CA

    There is nothing wrong with reporting these statistics. When the liberal news media compares this recession as the worst since the great depression, they need a history lesson. Missing in this equation is Jimmy Carter 1977-1981. This recession is not even close to being as bad as it was with Carter. I was there. My knowledge of history cannot be flawed. With Carter mortgage rates wer at 21% interest, unemployment 14% and inflation at 18%. This definitely did not help the poor. I always thought the democrats were for the working and middle class. Not this time. It was as close to a depression as it can get. Then there was the 444 Day American Hostage and allowing a terrorist government to overthrow the Shah of Iran who was Pro West. This is the main reason we are stuck paying billions of dollars in the Middle East. When making comparisons of this recession, the liberal news media should say the worst recession since 1980.

    February 3, 2009 at 5:28 pm |
  8. Bea

    This is like a virus spreading without a cure. Every states is suffering from the greed of corporate America. I am not sure the stimulus package will help. Look at California and New York, California is furloughing 238,000 + employees. Each will take a pay reduction of about 10%- then those people will curtail their spending _going out to eat, amount they purchase, maybe not use a cleaners do their clothes at home, take children out of private schools and put them in public school. less vacations. I was in a meeting not long ago where employees were discussing cancelling their health insurance, life insurance, donations to united way and other items to make ends meet. Some will inevitably loose their home or car as they are on the very edge already with rising interest rates and such. So sad without and end in sight.

    February 3, 2009 at 4:53 pm |
  9. Annie Kate

    A lot of companies shed jobs in the 4th quarter and 1st quarter of the year but pick back up around spring time and hire again. Hopefully we will see some jobs start to come back again soon – spring isn't that far away. Just don't expect to make as much as you were on your last job.

    February 3, 2009 at 4:16 pm |
  10. Mary V., Salt Lake City, UT

    Many millions will lose their jobs. That's why it is so important that the government, the SEC, etc., keep an eye on Wall Street and the banking industry! These people were betting on the failures of mortgage loans, and some are becoming very, very wealthy off the back of regular people.

    What I want to know is WHERE WERE the "so-called-fiscal-conservatives" when Bush & Co., were spending our Nation into bankruptcy???????

    Where was McCain & his cronies, when Bush was TRIPLING our Nation debt???????????

    They were silent. Cowards.

    February 3, 2009 at 4:16 pm |
  11. Greg

    One way to Fix the Economy is to Wipe out all the bad credit that people have. Every 10 yrs your credit history should be wiped out. and you have a fresh start. Also the auto industry needs to stop charging so much for these cheap cars, then maybe people will buy them it doesn't make any since that you have to pay $50,000 dollars for a half decent car. The next day its only worth $30,000. that's the problem. they charge all this money for these cars which is only costing them $2,000 to make its ridiculous. Its a Scam if you ask me..

    February 3, 2009 at 4:14 pm |
  12. Frances Pitcher

    watch the documentary movie "who Killed the electric Car" Then tell me if you think any car company should have a handout.

    February 3, 2009 at 4:12 pm |
  13. Terry

    Chill everybody...the sky isn't falling....most companies will reduce employees in Jan and Feb. They are looking at the Dec. books already trying to keep their companies in the black.

    Everyone just needs to think as taxpayers and let the Senate tear this Pork and Pay for Play Job Package apart....it's an oinker.

    President Obama's only mistake was letting Pelosi and Reid put this stupid thing together.

    February 3, 2009 at 2:53 pm |
  14. Allen

    When will you guys finally ask the "Imperial Congress" to give back the recent pay raise they took from the taxpayers, as a good will gesture to the American people, since they (congress) are ultimately responsible for the collapse of the economy, by turning a blind eye for years, to the utter corruption in banking, and wall street, all while they had their greedy little hands out to lobbyists of every sort.
    Congress suffers from the same disease as Wall street,... a grandiose sense of entitlement and self worth... All on our backs.
    Only on Wall Street and Capitol hill, can one get a huge pay raise for doing a really lousy job.
    The American people are in deep trouble, as our politics are confined to that of bread, and milk, and fuel and housing.
    Congress better wake up real fast, befor ewhat is happening in Greece and France and all over Europe, happens here.
    Give the pay raise back Congress!!! You didn't earn it. Show some backbone for a change, and do what;s right...for the people!! For the People!!!

    February 3, 2009 at 2:50 pm |
  15. Sande Sue

    Given the state of the economy and the number of people losing their jobs why aren't the banks and financial instutions offering home owners 50 year mortages? Medical science indicates we are living longer and as such we are working many more years why is no one considering offering a 50 year mortage to avoid foreclosure?

    February 3, 2009 at 2:25 pm |
  16. Dave

    Ok well my thoughts are more realistic then you could imagine.... Everyone lets do are own stimulus package, currently there are 305,741,041 people in the US .... Simple math there is 305+ Million not Billion right .... follow me so far, what if you gave all the people in the US 1 million dollars or gave 2 million dollars to people who are not millionaires..... now it would cost far less then there 825 billion dollars and well the rich would still be getting rich cause "We the People would be Spending are money" maybe a lil wiser then before and some would go out and blow it. Maybe this would help the income temp but when you have a credit score or have had issues in your past with a house, car or credit cards and are getting back on your feet working three jobs but still get "Sorry your credit history shows problems in your past" Well guess what people WAKE UP !! I wanna go back to school but I have to pay for that out of my pocket, I made 55k+ last year and lost my job two days before Christmas day ..... I worked for the Air Force, now doesn't that put a bad taste in your mouth ? I am sorry for getting off track but if you were to offer people 1 to 2 million each the economy would turn right back around, people buying houses and cars and using there money Wisely !! I know I would ! Give me Two Million and I will show you what I would do with it ! and I will go as far as telling you my name so you spell it right on the check ... David Hammon

    I am white and I truly believe the are new President Obama can help the US due alot of good ..... As long as everyone buys in and treats the USA like it is there own business !!

    February 3, 2009 at 1:32 pm |
  17. Terry Evans

    Hey Anderson, didn't the president say that he would do something to
    stop the wave of foreclosures the moment he took office? hummm,
    have you heard him say or do anything, and if so, why did thousands more loose their homes today. Perhaps it's the new treasury secs fault.

    February 3, 2009 at 1:26 pm |
  18. wanda

    Iam appalled that our leaders just don't get it. They are talking of spending huge amounts of money to create new jobs, when it could be as simple as bringing back all of the low level jobs that have been outsourced to other countries,such a India, and other countries. companies, that are as american as apple pie, such as American Express, or your government run collections, are all outsourced positions. This is shameful. I say cut the tax breaks to companies who have outsourced our much needed jobs. Please read this on 360, hopefully someone in Washington will hear our cry.

    February 3, 2009 at 1:08 pm |
  19. Isabel Abreu

    ECONOMIC CRISIS: demission AROUND THE WORLD

    The economic recession in the USA. and the slowdown of activity in other regions strongly affected the profits of many companies in the last months of 2008 and the solution is layoffs.

    The economic crisis modify in a speed increasing, in a social crisis affecting millions of people the planet. In late January, the world registered the announcement of job cuts to 86.5 thousand people. More than 50 thousand will lose their jobs almost immediately. Ads are facing a scenario of contraction of the GDP of rich countries and a slowdown in emerging crisis still has no signs of order in the financial sector.

    But leaving thousands of unemployed people is really a solution?
    I see this as a game of push-push, that takes away the problem of the hands of one and play into the hands of others (the unemployed).

    February 3, 2009 at 1:02 pm |
  20. Jeff

    Maybe I should stop paying federal taxes, then I could get an offer for a big paying job in Washington.

    February 3, 2009 at 12:55 pm |
  21. Baze

    Greed, oversight, accountability whatever... The bottom line is that American has outgrown its britches, and we can't allow the short sightedness of the G.O.P to keep us on a path to extinction.

    February 3, 2009 at 12:49 pm |
  22. sandy

    Every job loss means additional job loss or cutbacks. People without jobs cannot call a plumber or an electrician, go to the doctor, get their hair fixed, go out to eat, take vacations, etc. Every job loss is like a pebble thrown in a pool of water – it ripples out and touches so much more. I grew up when we only had necessities most of the time and we may well see a lot of America return to those times. We have all been greedy...a new phone , computer, ipod, flat screen tv, etc comes out we want it and think it is a necessity. Wants and needs are different. Corporate greed may have fueled a lot of this but personal greed and trying to fulfill every want even if it took people deep into debt has brought us to a point where we will have to rethink our values and way of living.

    February 3, 2009 at 12:39 pm |
  23. Michael "C" Lorton, Virginia

    The peristalyic effects continues as the economy continues to react to the disease of corporate greed and financial incompetency....is the cure in sight?-–TIme will tell and I surely hope that the President's prescription will at least curtail-–if not cure.

    February 3, 2009 at 12:22 pm |