Financial News Wed May 16th 2012 – GM quits Facebook, Mladic Trial, Greece Panic


Financial News Wed May 16th 2012 – GM quits Facebook, Mladic Trial, Greece Panic

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    Reuters reports, Greece put a senior judge in charge of an emergency government, today, to lead it to new elections on June 17th, and bankers sought to calm public fears, after the president said political chaos risked causing panic and a run on deposits. Greek savers withdrew at least 700 million euros, from banks in recent days, as the prospect of the country being forced out of the European Union’s common currency zone, seems ever more real. European Commission President Jose Manuel Barroso, told a news conference in Brussels, that Greeks must realize, what was at stake in their election.
    The BBC reports, the opening day of the war crimes trial, of Former Bosnian Serb army commander Ratko Mladic has heard, that he intended to “ethnically cleanse” Bosnia. General Mladic faces 11 counts of war crimes and crimes against humanity, including genocide, in connection with the brutal 1992-95 Bosnian war. Prosecutors at The Hague said they would show his hand in the crimes. He has called the accusations “monstrous” and the court has entered a not guilty plea on his behalf. General Mladic is accused of orchestrating the massacre, of more than 7,000 Muslim boys and men at Srebrenica in 1995. He is also charged in connection with the 44-month siege of Sarajevo during which more than 10,000 people died.
    The Wall Street Journal reports, General Motors plans to stop advertising with Facebook, after deciding that paid ads on the site, have little impact on consumers’ car purchases. The move by GM, one of the largest advertisers in the U.S., puts a spotlight on an issue, that many marketers have been raising: whether ads on Facebook help them sell more products. On Friday, Facebook is expected to sell shares in an IPO, that could put a market value on the company of as much as $104 billion. Executives have spent the last two weeks trying to convince investors, that its advertising business, makes it worthy of a sky-high valuation. Rick Summer, an analyst at equity researcher Morningstar, said that GM’s decision only proves that advertising on Facebook, is still in its early stages, which should be a lesson to investors, hoping to get in on the company’s IPO.

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