Oilsands Quest: Speculation vs. Value (BQI)

Hi commodity prices beget high stock prices of companies that deal in those commodities. At least speculation isn't at play in the markets, after all the speculators even say they aren't responsible. This notion is arguable either way on too many fronts too poke holes in, but what is for sure is that speculators are hanging out in many smaller oil and gas stocks that they think will have a shot at becoming the next giant. Oilsands Quest Inc. (AMEX: BQI) is one such company where speculation has led to greater and interest. Remember that speculation itself isn't bad, and...
Source: 24/7 Wall St. | 1 Jul 2008 | 11:57 am

CIT sells home lending business

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 11:50 am

Indications: U.S. stock futures point to weak start for third quarter

Stock-index futures point toward a sharply lower opening for Wall Street, playing off a steep fall in equities in Europe and continuing worries about rising oil prices.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 11:48 am

Constellation Brands first quarter profit up

NEW YORK (Reuters) - Constellation Brands Inc reported a higher first quarter profit on Tuesday, helped by higher-margin brands such as Clos du Bois and Wild Horse, as well as price increases.

Source: Reuters: Business News | 1 Jul 2008 | 11:47 am

Movers & Shakers: Tuesday's biggest gaining and declining stocks

Among the companies whose shares are expected to see active trade in Tuesday’s session are the auto makers, Anheuser-Busch, Dollar Thrifty, Fortune Brands, Smithfield Foods and UBS.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 11:46 am

Stocks: New quarter, old fears

Stocks were poised for a bleak start to the third quarter on Tuesday, as concerns about surging oil prices continued to dog investors.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 11:45 am

Inflation fears spark global market rout

Fear of inflation returned to spook investors at the start of the new quarter as the oil price jumped close to record highs, sparking a sell-off in equity markets and strengthening the yen
Source: FT.com - US homepage | 1 Jul 2008 | 11:42 am

Good German data belies squeeze on economy (AFP)

AFP - German retail sales were shown rebounding and unemployment falling in data on Tuesday, but with food and fuel inflation still squeezing consumers and firms hard, economists saw little reason for cheer.

Source: Yahoo! News: Business | 1 Jul 2008 | 11:40 am

Good German data belies squeeze on economy (AFP)

AFP - German retail sales were shown rebounding and unemployment falling in data on Tuesday, but with food and fuel inflation still squeezing consumers and firms hard, economists saw little reason for cheer.

Source: Yahoo! News: Business | 1 Jul 2008 | 11:40 am

London Markets: Shares in London slide as bank stocks weigh

London shares fell sharply on Tuesday morning, pointing to a downbeat start for the third quarter, as companies connected to the housing market lost more ground.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 11:40 am

Writedown fears nag as UBS rejigs management

ZURICH (Reuters) - UBS failed to address nagging concerns about further possible writedowns on Tuesday, dishing out instead a restructuring of top management and sending shares to a fresh 10-year low.

Source: Reuters: Business News | 1 Jul 2008 | 11:36 am

Oil rises on Middle East tension, supply worries

LONDON (Reuters) - Oil rose more than $2 on Tuesday after the International Energy Agency revived concerns about long-term supply shortages and tension between Israel and Iran raised fears about possible outages in the much nearer term.

Source: Reuters: Business News | 1 Jul 2008 | 11:31 am

CIT sells home lending operations for $1.8 billion

LONDON (MarketWatch) -- Commercial finance company CIT Group Inc. said Tuesday that it's agreed deals to sell its home lending business and manufactured housing portfolio for a total of $1.8 billion, marking its exit from all home lending operations.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 11:31 am

Will Sirius-XM Cut Talent Costs? (SIRI, XMSR)

We already saw the first projections yesterday from Sirius Satellite Radio Inc. (NASDAQ: SIRI) and XM Satellite Radio Inc. (NASDAQ: XMSR). We also saw the resounding thud that the markets greeted the company's with. What is interesting is what is going to happen to costs cuts not just at the base level. We have been trying to calculate the future values, which are very different from the values of 2005, regarding the content from the top talent that both XM and Sirius have generated. The first such talent question boils down to Howard Stern with his lavish contract. It is...
Source: 24/7 Wall St. | 1 Jul 2008 | 11:26 am

South Asians face fuel price rise

Bangladesh and Pakistan announce further sharp rises in fuel prices as the cost of crude oil continues to soar.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 11:25 am

Tempus analysis: Slow lane

Shareholders in Northgate, the biggest van rental operator in the UK and Spain, must look back ruefully at the £12 a share offer tabled two years ago - and subsequently withdrawn after the biggest investors held out for more. Since then, the shares have fallen more than 70 per cent.
Source: Latest Business News from Times Online | 1 Jul 2008 | 11:20 am

Currencies: Dollar moves lower, pressured as global equities give ground

The dollar's back on the defensive, playing off mounting risk aversion amid rising oil prices and sliding equities around the world.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 11:20 am

Study: Sioux Falls, S.D., safest US driving city

An insurance study has once again found that Sioux Falls has the safest drivers in the nation, marking the third straight year that South Dakota's largest city has topped the list. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:16 am

Qantas may float frequent flyer unit

Qantas on Tuesday said it was considering the partial float of its frequent flyer business later this year, in a move that could raise between A$2bn and A$3.5bn for Australia's biggest airline.Geoff Dixon,...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 11:15 am

Justice to seek more information from Swiss bank (AP)

AP - The Justice Department said it is seeking information from Swiss bank UBS AG about U.S. taxpayers who may have used offshore accounts to avoid paying federal income taxes.
Source: Yahoo! News: Business | 1 Jul 2008 | 11:14 am

Justice to seek more information from Swiss bank

The Justice Department said it is seeking information from Swiss bank UBS AG about U.S. taxpayers who may have used offshore accounts to avoid paying federal income taxes. The broadening
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:14 am

Airlines try to hedge against soaring fuel costs

The computer screen on Scott Topping's desk at Southwest Airlines flickered with row after row of dates and numbers, but they had nothing to do with arrivals and departures. They tracked
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:09 am

UK banks off the hook for savings guarantee

The Government today confirmed plans to increase the guarantee on depositors' savings to £50,000 if their bank collapses but said lenders will not have to pay billions of pounds upfront into a protection scheme.
Source: Latest Business News from Times Online | 1 Jul 2008 | 11:02 am

Stocks head to lower open in first day of 3Q

Wall Street appeared headed for a sluggish start to the third quarter Tuesday, hurt by ongoing concerns about the damage rising oil prices will do to the economy. Crude oil held near its
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

UBS revamps board

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 11:00 am

Janez Acquires La Jolla/Golden Triangle Property From Arden Realty for $56 Million

SAN DIEGO, July 1 /PRNewswire/ -- San Diego-based Janez Group announced yesterday that it has acquired the 159,000-square-foot Genesee Executive Plaza at 9333 and 9339...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

New York Agencies Help Boost Economy by Funding Business Growth

New York State Agencies fund business expansion with loans, tax benefits, rebates and grants NEW YORK, July 1 /PRNewswire-USNewswire/ -- During these tough economic...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

Maxim Group LLC Appoints Richard H. Kreger Senior Managing Director of Investment Banking

NEW YORK, July 1 /PRNewswire/ -- Maxim Group LLC, a leading full-service mid-tier investment banking, securities and wealth management firm today announced the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

iStar Financial Declares Regular Quarterly Common Dividend

NEW YORK, July 1 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI), a leading publicly traded finance company focused on the commercial real estate industry,...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

[video] WallSt.net's '3 Minute Press Show' Features Executive Interviews and Highlights Recent Press for the Following: ACCL, ENWV, KWBT and ZVTK

NEW YORK, July 1 /PRNewswire-FirstCall/ -- WallSt.net's 3-Minute Press Show is a daily video program hosted by WallSt.net reporter, Tracee Tolentino. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 11:00 am

Euro on firm footing against dollar

The euro firmed against the dollar on Tuesday as the foreign exchange market awaited fresh economic data ahead of a likely eurozone interest rate hike later this week. The...
Source: Infocious RSS raw feed - channel BNewsBusiness | 1 Jul 2008 | 10:59 am

Factories hit worldwide as commodity prices soar (Reuters)

Reuters - Soaring commodity costs are denting manufacturing activity in Asia and Europe and the outlook looks bleak as new orders drop off in the face of rising prices, surveys showed on Tuesday.

Source: Yahoo! News: Business | 1 Jul 2008 | 10:59 am

Factories hit worldwide as commodity prices soar

LONDON/TOKYO (Reuters) - Soaring commodity costs are denting manufacturing activity in Asia and Europe and the outlook looks bleak as new orders drop off in the face of rising prices, surveys showed on Tuesday.

Source: Reuters: Business News | 1 Jul 2008 | 10:58 am

Howard Stern may have a Sirius dilemma

Howard Stern hit the jackpot when he moved satellite radio more than three years ago. He's pocketing $80 million a year and has received Sirius Satellite Radio stock worth roughly $200 million for meeting subscriber growth targets spelled out in his five-year contract.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:58 am

Crude soars $2 as dollar slides

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:56 am

GM shares skid to 54-year nadir

GM shares fall to a 54-year low as investors worry about the firm's financial position amid falling sales.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 10:55 am

CIT to sell home lending business for $1.5 billion

(Reuters) - Commercial lender CIT Group Inc agreed to sell its home lending business to private equity firm Lone Star Funds for $1.5 billion in cash to increase liquidity, and will take a related second-quarter charge of $2 billion.

Source: Reuters: Business News | 1 Jul 2008 | 10:54 am

Banking woes, oil fears hit markets

LONDON (Reuters) - The second half of 2008 got off to a brutal start for equity investors on Tuesday as worries about the banking sector battered European stocks while inflation fears increased with oil over $142 a barrel.

Source: Reuters: Business News | 1 Jul 2008 | 10:53 am

Real, not speculative reasons for record oil: IEA

LONDON (Reuters) - It is easy to blame speculation for the doubling of oil prices over the past 12 months, but the real reasons are strong demand growth, coupled with shortages of supply and refining capacity, the IEA said on Tuesday.

Source: Reuters: Business News | 1 Jul 2008 | 10:51 am

How GE gives away its money

I'm not a big fan of corporate philanthropy. Too often, it's a feel-good exercise, generating little value for a company's shareholders. At its worst, it allows CEOs to use other people's money to glorify themselves. (Tyco once pledged $5 million to Seton Hall University, which named a building or two after its then-CEO, Dennis Kozlowski.) Rarely is corporate giving both benevolent and strategic.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:50 am

Stocks set for steep falls; banks in focus (Reuters)

Reuters - Stock futures pointed to losses of about 1 percent on Wall Street on Tuesday, tracking European shares which slid as profit warning rumors hit banks.

Source: Yahoo! News: Business | 1 Jul 2008 | 10:48 am

Stocks set for steep falls; banks in focus

(Reuters) - Stock futures pointed to losses of about 1 percent on Wall Street on Tuesday, tracking European shares which slid as profit warning rumors hit banks.

Source: Reuters: Business News | 1 Jul 2008 | 10:48 am

The best way to take a pension

If you're one of the lucky 30 million American workers still covered by a traditional defined-benefit pension plan, you'll likely be faced with a crucial and irrevocable decision when you retire: should you take your pension in the form of a guaranteed monthly check for life or should you grab all of your pension money up front and manage the funds yourself? The vast majority of retirees choose the lump sum - 90% of them, according to the Society of Actuaries. Before you join them, consider the risks.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:43 am

TNK-BP chief prepares staff to leave Russia

Robert Dudley, the chief executive of TNK-BP, BP's 50 per cent owned Russian joint venture, in an email sent to staff on Tuesday warned his staff face 'temporary relocation' as early as this week
Source: FT.com - US homepage | 1 Jul 2008 | 10:43 am

InBev hints at hostile bid for Anheuser-Busch

InBev, the Belgian brewer and owner of Stella Artois beer, has hinted again that it is prepared to go hostile in its $47 billion pursuit of Anheuser-Busch, the brewer of Budweiser.$
Source: Latest Business News from Times Online | 1 Jul 2008 | 10:40 am

Gas hits another all-time high

Retail gas prices have risen to a new record high while diesel prices have held steady, according to a daily survey by AAA Tuesday.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:35 am

Asia Markets: Tokyo falls for ninth session: oil and bank shares hurt Sydney

Asian shares end broadly lower, with declines coming in sectors ranging from banks to resources.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 10:35 am

Thus investors mulling C&W's bid

Thus shares are little changed, after surging 20% on Monday on news C&W had raised a takeover offer.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 10:32 am

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 10:31 am

Europe Markets: Shares in Europe slide at start of 3rd quarter; banks are hurt

European shares started the new month and the quarter on a downbeat note on Tuesday, falling sharply as higher oil prices crimped share prices for airlines and auto makers and as financials like UBS put in another poor performance.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 10:31 am

A Billionaire's Consensus On A Deep Recession

Eli Broad, one of the richest men in the world, says the current economy is the worst he has seen in his lifetime, the worst since WWII. According to Bloomberg, he also says a housing market recovery remains ``several years'' away. Fellow billionaires George Soros and Warren Buffett also think this downturn will be long and very bad. Soros is concerned about the credit market. Buffett's poison is high debt and inflation. Each man is touching the elephant from a different direction, but not one of them questions what the elephant is. The very rich are often wrong. They believe...
Source: 24/7 Wall St. | 1 Jul 2008 | 10:25 am

FTSE plunges as manufacturing hits 7-year low

The FTSE 100 index dived below 5,500 today today after it emerged that the British manufacturing industry shrunk at its fastest rate since the New York terrorist attacks seven years ago.
Source: Latest Business News from Times Online | 1 Jul 2008 | 10:18 am

Score hot tickets on the cheap

Getting to this summer's Major League Baseball All-Star Game at Yankee Stadium requires patience, persistence and determination - and that's just for the fans.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:17 am

Nokia (NOK) Takes On Apple (AAPL)

If any company has the chance to take on the Apple (AAPL) iTunes/iPod franchise it is Nokia (NOK). It has started its own music store and recently signed up Warner Music (WMG). According to the FT, "Warner’s participation means Nokia, the world’s largest mobile phone maker, has enlisted three of the four largest record groups," Nokia controls 40% of the global market in handsets, selling over 400 million units per annum. That gives it a significant amount of leverage in terms of what software and services run on its phones. The company has decided that as the price of handsets...
Source: 24/7 Wall St. | 1 Jul 2008 | 10:13 am

Writedown fears nag as UBS rejigs management (Reuters)

Reuters - UBS failed to address nagging concerns about further possible writedowns on Tuesday, dishing out instead a restructuring of top management and sending shares to a fresh 10-year low.

Source: Yahoo! News: Business | 1 Jul 2008 | 10:12 am

IEA cuts five-year oil demand forecast as drivers scale back

SAN FRANCISCO (MarketWatch) - The International Energy Agency Tuesday cut its five-year forecast for global oil demand, saying booming oil prices are causing wealthy countries' drivers to park their gas-guzzlers.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 10:11 am

Yukos boss faces new fraud claims

Russian prosecutors bring new charges against former Yukos chief Mikhail Khodorkovsky.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 10:07 am

Shanghai slump casts pall over Asia

Shanghai equities tumbled on Tuesday amid persistent concerns over possible rate rises, with those declines exacerbated by thin trading. The declines set the tone for a glum day in the rest of the region...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 10:07 am

Speculation not to blame for oil, study says

An influential oil-policy group released a report Tuesday arguing that the increase in oil-market speculation is not driving up crude prices. But the study far from ends the debate.

Source: Business and financial news - CNNMoney.com | 1 Jul 2008 | 10:05 am

UBS departures clear way for board shake-up

The Swiss bank, the biggest European casualty of the US subprime crisis, is clearing room on its board for up to four new directors with significant banking experience
Source: FT.com - US homepage | 1 Jul 2008 | 10:00 am

UBS departures clear way for board shake-up

UBS is clearing room on its board for up to four senior members with significant banking experience, with the surprise resignation of four of its longest serving directors. Its shares fell 6.6 per cent...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 10:00 am

Ciao, Angelo

Today, Bank of America completes its acquisition of Countrywide Financial, and Angelo Mozilo, age 69, will retire as chief executive.
 
He will be missed—although not by customers now staggering under mortgages they cannot afford, or disappointed shareholders who saw their shares plunge, or the many regulators who are investigating Countrywide's practices and Mozilo's sales of stock.
 
Mozilo is a colorful character whose like we may not see again on the center stage of American business for some time to come. What other C.E.O. would take the time to read customer complaints or to help the friend of a friend of a friend? (For more on that, see Portfolio.com's complete coverage of Countrywide's V.I.P. loan program here.)
 
Sure, other entrepreneurs will emerge from this nation's working class to found giant companies, but they will certainly be more savvy about their public image or at least more circumspect than the brash and blunt Mozilo.
 
A self-made man, Mozilo was not afraid to shoot off his mouth and made no apologies for his huge pay packages. If he were a character in a film or a novel, he might be an unbelievable caricature with his stylish suits, cuffs and handkerchief, and that deep, lined tan. The son of a Bronx butcher, he has long carried a chip on both shoulders.
 
To mark his exit, here are some memorable Mozilo moments:
 
THE IMPERIAL C.E.O.: Union pension funds pushed for a resolution at Countrywide's 2007 annual meeting that would give shareholders a nonbinding vote on management compensation. Countrywide opposed the measure. "The shareholders have no clue," Mozilo said at the time, according to the Wall Street Journal.
 
THE THIN-SKINNED C.E.O.: Congressional investigators this spring released an October 2006 email from Mozilo to a compensation consultant for Countrywide: "Boards have been placed under enormous pressure by the left wing antibusiness press and the envious leaders of unions and other so-called C.E.O. comp watchers. I strongly believe that a decade from now, there will be a recognition that entrepreneurship has been driven out of the public sector, resulting in underperforming companies and unwillingness on the part of boards to pay for performance."
 
THE BROKEN PROMISE: In October, after Countrywide reported its first quarterly loss in 25 years, Mozilo sought to ease investors' worries, saying that the company would be back in the black in the next quarter. Countrywide had "laid the foundation for a return to profitability in the fourth quarter," he said. In January, after fending off rumors of an imminent bankruptcy filing, Countrywide posted a larger-than-expected loss of $422 million for the fourth quarter.
 
THE WAYWARD EMAIL: This May, Mozilo mistakenly replied to an email from a troubled Countrywide borrower who was seeking a loan modification. Mozilo wrote: "This is unbelievable. Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the internet. Disgusting."
 
 


Source: Portfolio.com: Top 5 | 1 Jul 2008 | 10:00 am

Does Starbucks (SBUX) New Coffee Taste Like Dishwater?

Starbucks (SBUX) hoped one of the ingredients of getting turned around was its new Pike Place Roast coffee. The java chain brought the new product to market because it tastes more like Maxwell House, which is what most Americans like. It is an inexpensive drink by Starbucks' standards, which means it costs less than $4 a cup. By many accounts Pike Place has brought more customers into the company's stores. According to The Wall Street Journal, introducing the new cup of joe to market has "touched off a debate about what customers think Starbucks should stand for: bold coffee for...
Source: 24/7 Wall St. | 1 Jul 2008 | 9:55 am

GE buys $1bln of property loans from Credit Suisse

LONDON (Reuters) - The property investment arm of U.S. conglomerate General Electric has bought a portfolio of loans from Credit Suisse for 642 million euros ($1.01 billion), it said on Tuesday.

Source: Reuters: Business News | 1 Jul 2008 | 9:48 am

GE buys $1bln of property loans from Credit Suisse (Reuters)

Reuters - The property investment arm of U.S. conglomerate General Electric has bought a portfolio of loans from Credit Suisse for 642 million euros ($1.01 billion), it said on Tuesday.

Source: Yahoo! News: Business | 1 Jul 2008 | 9:45 am

Carpetright's Lord Harris warns of toughest year of 50-year career

Carpetright's chairman has warned that next year could be one of the most difficult he has faced in his 50-year career, as the ailing property market and slowing economy takes its toll.
Source: Telegraph Business | 1 Jul 2008 | 9:40 am

Carpetright's Lord Harris warns of toughest year of 50-year career

Carpetright's chairman has warned that next year could be one of the most difficult he has faced in his 50-year career, as the ailing property market and slowing economy takes its toll.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 9:40 am

Merging Ford (F) And Chrysler

It has been over a year since hedge fund Cerberus bought Chrysler and installed Home Depot (HD) pariah Robert Nardelli as the car company's unlikely CEO. Cerberus coughed up $7.4 billion for the privilege of owning the third largest auto firm in the US. The day after the deal was done. the auto industry began its precipitous decline. That trend has accelerated ever since. Nardelli has spent most of his time firing people and closing plants. The betting in Las Vegas is that Chrysler lost over 30% of its sales in June when compared to the same month last year....
Source: 24/7 Wall St. | 1 Jul 2008 | 9:36 am

Vietnam's economy slows down

Vietnam's economy slows in the first half of 2008 but lower growth is welcome to prevent overheating, economists say.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 9:32 am

BOJ tankan shows sentiment deteriorated, but better than expected

TOKYO (MarketWatch) -- The Bank of Japan's quarterly tankan survey of business sentiment released Tuesday showed corporate Japan's mood is indeed growing gloomier amid soaring materials prices, but the figures were slightly better than consensus expectations, suggesting companies are weathering the global storm better than many economists had thought.

Source: MarketWatch.com - Top Stories | 1 Jul 2008 | 9:32 am

Mozilo's Legal Woes

Under normal circumstances, a 69-year-old chief executive retiring from the company he founded would look forward to leisurely days in the sun working on his tan.

Not so with Angelo.

Angelo Mozilo, who started Countrywide Financial in 1969 with David Loeb, will bid adieu to the torn-and-tattered remains of the company today as it formally completes its sale to Bank of America.

Also on Portfolio.com The VIP Club Portfolio.com's guide to the loan scandal. With Friends Like These Who's who in the scandal.

While Mozilo has made no public announcement about his retirement plans, it's safe to assume he'll be spending more time in his lawyer's office than your average retiree.

The fallout from the subprime debacle will likely continue to unfold in courtrooms for years to come. With foreclosures still on the rise and with home prices still falling, the full impact of the mortgage meltdown is still incalculable.

Countrywide, the nation's biggest lender, and by all appearances the one with the most aggressive sales tactics during the housing boom, has already been named in many shareholder and employee class-action lawsuits, a discrimination suit, and suits filed by two state attorneys general.

But while Mozilo may be ending his involvement with Countrywide's operations, he can't separate himself from its legal troubles. Mozilo has been named as a defendant in nearly all of the class-action suits, as well as in the complaints filed last week by the attorneys general from Illinois and California.

In all likelihood, more is still to come. Attorneys general from Connecticut, Florida, and Iowa have all indicated they are weighing suits as well. The states seek restitution for borrowers who may have been victims of Countrywide's allegedly deceptive business practices. Senator Charles Schumer has also asked the Federal Trade Commission to investigate Countrywide's treatment of homeowners in bankruptcy.

But the real problems for Mozilo lie in what legal actions could come from the Securities and Exchange Commission and the Department of Justice, which are conducting separate investigations of Mozilo and Countrywide.

The securities class actions and the state suits would be indemnified by Bank of America, while any forthcoming suits from the S.E.C. or the Justice Department would result in Mozilo's own personal liability, according to Columbia University law professor John Coffee.

The Justice Department has already demonstrated its interest in bringing responsible parties to trial for their roles in the mortgage crisis. Last month, it charged 406 individuals with mortgage fraud as part of its Operation Malicious Mortgage effort. It also charged two former Bear Stearns hedge fund managers for fraud relating to losses from their subprime investments.

"I'm guessing the government wants to start at the bottom and move its way up the ladder," Coffee says.

While we've certainly not likely heard the last from Mozilo, he may stay quiet in the coming weeks and months as the ongoing investigations continue. "I suspect his lawyers are telling him to keep a low profile and make no statements," Coffee says.

That might be tough for Mozilo, but he'd be wise to find the strength to follow that advice.

Related Links
Credit C.E.O. Comp Under Fire, IV
Was B of A Blindsided by Countrywide Lawsuits?
Angelo's Ashes


Source: Portfolio.com: Top 5 | 1 Jul 2008 | 9:30 am

Tesco to quit buying products from Zimbabwe

Tesco has announced that it will stop sourcing products from Zimbabwe "as long as the political crisis persists" in the country.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 9:30 am

Tesco to quit buying products from Zimbabwe

Tesco has announced that it will stop sourcing products from Zimbabwe "as long as the political crisis persists" in the country.
Source: Telegraph Business | 1 Jul 2008 | 9:30 am

FTSE tumbles in weak start to second half

London's equity market started the second half dismally, after further gloom in the UK housing market and a steady climb towards record oil prices on commodity exchanges.The FTSE 100 index, which suffered...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 9:22 am

Mercosur anger at EU migrant laws

A South American summit under way in Argentina is set to voice strong criticism of new European Union immigration laws.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 9:09 am

Banks lead European equities lower

UBS led the European banking sector lower on Tuesday after further turmoil at Europe's biggest casualty of the US subprime crisis, while rising inflation also caused a stir.Shares in the Swiss group fell...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 8:53 am

Carpetright founder Lord Harris warns trading is worst in 50 years

Lord Harris of Peckham, chairman and chief executive at Carpetright, today admitted that the current financial year will be one of the most difficult in his 50 years in the retail trade after reporting profits down 11.2 per cent.
Source: Latest Business News from Times Online | 1 Jul 2008 | 8:49 am

Mobile firms hit roaming deadline

Mobile phone firms reach a deadline to cut the price of sending text messages in EU member nations.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 8:43 am

BP Staff in Russia May Have to Leave

The British oil company appeared to be in danger of losing control of its Russian joint venture after learning that authorities have refused to renew the work visas of its expatriate staff.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 8:35 am

House prices 'fell 0.9% in June'

UK house prices fell for the eighth month in a row, according to the latest survey from the Nationwide.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 8:30 am

Strong video game sales aid HMV

Entertainment retailer HMV reports a rise in full-year profits, helped by strong demand for video games.
Source: BBC News | Business | World Edition | 1 Jul 2008 | 8:26 am

Jumbo weddings

The rich Indians flaunting it in the US
Source: BBC News | Business | World Edition | 1 Jul 2008 | 8:20 am

UBS to replace top directors in boardroom shake-up

UBS, the Swiss bank which has been laid low by losses in sub-prime mortgages, said it would replace four board directors in a corporate governance upheaval aimed at preventing too much power from being exercised by the bank's chairman.
Source: Latest Business News from Times Online | 1 Jul 2008 | 8:19 am

Media Digest 7/1/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, global companies may start to issue profit warnings as business slows overseas. Reuters reports that InBev is sticking to it offer to buy Anheuser-Bush (BUD). Reuters reports that Chrysler is shutting minivan plants. Reuters writes that financial executives are still looking for companies that they can buy cheap and improve. Reuters reports that Lehman (LEH) rose after Morgan Stanley gave the brokerage a positive rating. Reuters reports that Florida has sued Countrywide over its mortgage practices. Reuters reports that Ford (F) was in talks to sell Volvo to Renault. The Wall Street Journal writes that federal authorities...
Source: 24/7 Wall St. | 1 Jul 2008 | 8:10 am

N Brown warns margins have slipped

N Brown, the catalogue and online clothing retailer, which specialises in women with fuller figures, unveiled an acceleration of sales growth in the past nine weeks to the end of June but provided little reassurance on bad debts.
Source: Latest Business News from Times Online | 1 Jul 2008 | 8:10 am

InBev ups pressure on Anheuser board

BRUSSELS, July 1 - InBev stuck to its proposal to take over reluctant bid target Anheuser-Busch and said it would seek to give the latter's shareholders a direct voice if the US brewer still refused to...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 8:08 am

InBev sticks to Anheuser offer, urges dialogue (Reuters)

Reuters - InBev stuck to its proposal to take over reluctant bid target Anheuser-Busch and said it would seek to give the latter's shareholders a direct voice if the U.S. brewer still refused to talk.

Source: Yahoo! News: Business | 1 Jul 2008 | 8:07 am

InBev sticks to Anheuser offer, urges dialogue

BRUSSELS (Reuters) - InBev stuck to its proposal to take over reluctant bid target Anheuser-Busch and said it would seek to give the latter's shareholders a direct voice if the U.S. brewer still refused to talk.

Source: Reuters: Business News | 1 Jul 2008 | 8:07 am

Games lead turnround at HMV

HMV, the music and books retailer, confirmed on Tuesday that its recovery was under way, with a bullish set of full-year results.The company, which operates the Waterstone's books chain alongside the HMV...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 1 Jul 2008 | 7:50 am

Asia Markets 7/1/2008 (CHU)

Markets in Asia were mixed The Nikkei fell .1% to 13,463. Canon fell 2.2% to 5340. Japan Tobacco rose 1.6% to 460000. The Hsng Seng rose .4% to 22,103. China Unicom (CHU) rose 3.7% to 14.48. CNOOC 2.4% to 13.52. The Shanghai Composite fell 3.1% to 2,652. Data from Reuters Douglas A. McIntyre
Source: 24/7 Wall St. | 1 Jul 2008 | 7:41 am

Occidental deal with SandRidge to boost oil output

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

IndyMac denies that it's close to collapse

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Would Bill Gates be No. 2?

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Can Wall Street steer clear of the bear?

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Recipient of Countrywide VIP loan says he sought no favors

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Price of oil sets fresh record before slipping lower

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Malibu investors left high and dry

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Weekend box office

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Countrywide's Mozilo exits stage a fallen hero

Source: L.A. Times - Business | 1 Jul 2008 | 7:00 am

Annual house price falls worst since 1992

The pace of falling UK house prices accelerated sharply last month. According to figures this morning from the Nationwide Building Society, prices are now dropping at an annual rate of 6.3 per cent, the biggest drop since November 1992 and compared with an annual 4.4 per cent fall in May and 1 per cent in April.
Source: Latest Business News from Times Online | 1 Jul 2008 | 6:19 am

Two finance companies fail to produce annual reports

Two troubled finance companies have failed to provide their annual reports for the period ending March 31. They are Dominion Finance Holdings, which owes debenture holders $276 million, and Lombard Group whose finance and investment...
Source: New Zealand Herald - Business | 1 Jul 2008 | 5:00 am

Employment confidence - biggest tumble in four years

An employment confidence survey has taken its biggest tumble in the four years it has been running, although confidence remains firmly in optimistic territory. The Westpac McDermott Miller employment confidence index fell 8 points...
Source: New Zealand Herald - Business | 1 Jul 2008 | 3:19 am

NZX trading falls heavily in June as market plunges

The value of shares traded on the stock exchange in June fell 11 per cent in June to $2.58 billion from June last year, NZX reported today. The number of trades fell 3 per cent and the average daily value traded was $129 million. The...
Source: New Zealand Herald - Business | 1 Jul 2008 | 3:00 am

NZ Oil and Gas set to raise $180 million through options

NZ Oil and Gas has raised nearly $180 million through the takeup of options by its shareholders, which is likely to boost the oil explorer into the top-20 largest listed companies. About 84 per cent, or nearly 118 million, of the...
Source: New Zealand Herald - Business | 1 Jul 2008 | 2:00 am

Contact picks partner to build new $60 million geothermal station

Contact Energy has entered into agreements with Nevada-based geothermal power company Ormat to supply and build a 23.3 megawatt binary power station in Taupo for $60 million. Contact said today it had already drilled the wells...
Source: New Zealand Herald - Business | 1 Jul 2008 | 1:00 am

Business Briefs - Monday

Robbins & Myers beats, soars. The maker of fluid processing products for sectors such as oil and gas exploration said Q3 EPS rose 59% to 62...
Source: Investor's Business Daily: BUSINESS | 1 Jul 2008 | 12:38 am

Customer Service Outsourcing Stays Strong As Economy Slows

Companies around the world are struggling with inflation and escalating raw material and energy costs. But they haven't slowed spending on...
Source: Investor's Business Daily: BUSINESS | 1 Jul 2008 | 12:38 am

After The Close - Monday

FOREST OIL (FST), an oil and gas firm, increased its holdings in E. Texas and N. La. to 113,000 net acres. Shares rose.
Source: Investor's Business Daily: BUSINESS | 1 Jul 2008 | 12:38 am

Trends & Innovations - Monday

Thirst for bottled water cools off
Source: Investor's Business Daily: BUSINESS | 1 Jul 2008 | 12:38 am

In Brief - Monday

Meat producer Tyson (TSN) said it bought 51% ownership of Godrej Foods, a unit of agribusiness company Godrej Agrovet in India. Terms were not...
Source: Investor's Business Daily: BUSINESS | 1 Jul 2008 | 12:38 am

Manitowoc triumphs in blind auction for Enodis

US firm Manitowoc last night won the fiercely contested battle for Enodis, the Anglo-American kitchen equipment maker, with a £1.2bn bid after going head-to-head with Illinois Tool Works (ITW) in a blind auction.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

Sir Terry's riled, but Tesco appeal is not without risk

When the Competition Commission finally published its report into the grocery sector at the end of April, the stock market shrugged off the findings.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

BP staff thrown out by Moscow but Russia refined enough for Sibir Energy

Henry Cameron, chief executive of Sibir Energy, the Aim-listed oil producer that will enter the FTSE 100 if it moves up later this year as planned, believes the investment climate in Russia has never been more stable.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

Ex-Barclays Capital director joins Jefferies

Jefferies, the investment bank, has hired former Barclays Capital director Andrew Bracey to lead the group's consumer and retail investment banking division in Europe and the Far East.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

Former Rank chief takes Tote reins

Mike Smith, the former chief executive of gambling group Rank, has been appointed chairman of the Tote, the state-owned bookmaker the Government has been trying to sell for the past seven years.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

£530,000 farewell for FSA official who watched over Northern Rock

Clive Briault, the official in charge of supervising Northern Rock when it collapsed, received a payoff of almost £530,000 after parting ways with the Financial Services Authority, it emerged yesterday.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

Cable & Wireless stalks Thus in share buy

Cable & Wireless looks set to take control of smaller telecoms rival Thus for £329m after it bought 29.9pc of the company's shares at 180p and offered to buy out remaining shareholders at the same price.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

Stagflation grips Eurozone as interest rates look set to rise

Eurozone inflation surged to an all-time high of 4pc in June despite worrying signs of a slump in manufacturing, confronting the European Central Bank with the toughest challenge since its creation a decade ago.
Source: Telegraph Business | 1 Jul 2008 | 12:01 am

$220m meat deal on a knife-edge

Meat industry players remain guarded over whether farmers will support PGG Wrightson and Silver Fern Farms' partnership proposal - but its success could finally lead to a consolidation and strengthening of the ailing sector. The...
Source: New Zealand Herald - Business | 1 Jul 2008 | 12:00 am

Warner signs up for Nokia's music service

Nokia's "all you can eat" mobile music service gained momentum with the addition of Warner Music, giving Nokia the participation of three of the four largest record groups as it prepares to launch Comes with Music
Source: FT.com - US homepage | 30 Jun 2008 | 11:04 pm

Taylor Wimpey taps investors to stay afloat

Taylor Wimpey, Britain’s largest housebuilder by production, said that it would take a £550 million write-down on the value of its British land holdings and confirmed that it would tap its largest investors for hundreds of millions in cash to stay afloat.
Source: Latest Business News from Times Online | 30 Jun 2008 | 11:00 pm

Hold the front page: there might be a new ad

Those urging us not to “talk ourselves into a downturn” are too late. It looks suspiciously like we are there already.
Source: Latest Business News from Times Online | 30 Jun 2008 | 11:00 pm

NZ Shares: Pause in market losing streak

There was a pause in the losing streak for the punch-drunk sharemarket in early trading today. But the rally was far from convincing following a mixed session on Wall Street. Soaring oil prices continued to buffet investor confidence...
Source: New Zealand Herald - Business | 30 Jun 2008 | 10:30 pm

After some depositors pull funds, IndyMac responds to latest rumors about its financial health

Source: L.A. Times - Business | 30 Jun 2008 | 9:33 pm

Stocks Finish Flat, Mixed

Traders showed little enthusiasm for equities as oil prices remained in flux. Financials took a hit.

Source: SmartMoney.com | 30 Jun 2008 | 9:31 pm

Detroit car sales set to be 'worst since 1990s'

June car sales data, due out on Tuesday, are expected to show the US auto market heading for its worst year in more than a decade
Source: FT.com - US homepage | 30 Jun 2008 | 9:30 pm

Schoenfeld Says ETF Strategy Offers Access to Overseas Markets

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 9:29 pm

VIX Index of U.S. Stock Option Prices Advances 2.2% to 23.95

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 9:26 pm

Blogs bring new reality to US polls

Barack Obama and Bill Clinton have crossed swords with the biggest names in the media world, but that did not help either recently when they came up against a 61-year-old Californian amateur brandishing a $40 Sony digital voice recorder
Source: FT.com - US homepage | 30 Jun 2008 | 9:12 pm

Chrysler chops jobs as sales slump hits

DETROIT - The worsening US vehicle sales slump has hit Chrysler LLC again as it announced plans to close one St. Louis-area factory and cut a shift from another because of declining demand for minivans and pickups. Officials...
Source: New Zealand Herald - Business | 30 Jun 2008 | 9:00 pm

Geneva shares expected to make volatile debut

A haircut looks likely for Geneva Finance investors when the rejigged finance company makes its sharemarket debut amid a near-meltdown in the sector. As part of a capital restructuring plan, 15 per cent of the company's $98.42...
Source: New Zealand Herald - Business | 30 Jun 2008 | 9:00 pm

Fortune Brands... When Even Booze Spending Is Down (FO)

Fortune Brands, Inc. (NYSE: FO) has come clean with a lowered earnings guidance for the current quarter and full year of 2008. The company noted that a weakening consumer sentiment in the U.S., the ongoing correction in the U.S. housing market, and a large and unexpected Australian tax increase on ready to drink spirits products have all culminated together to create a more challenging environment for the company’s products. The company now expects pre-charge/gain earnings to be down at a high-teens-to-mid-20's percentage rate compared to diluted EPS of $1.51 before charges/gains for continuing operations in the year-ago quarter. This is...
Source: 24/7 Wall St. | 30 Jun 2008 | 8:49 pm

Crude oil hits yet another record

NEW YORK - The price of crude oil hit yet another record on the last day of a tumultuous first half, spurting past $143 a barrel before ending lower on demand fears and a resilient dollar. Crude has shot up nearly 50 per cent since...
Source: New Zealand Herald - Business | 30 Jun 2008 | 8:45 pm

Getting Around Airlines' New Minimum-Stay Requirements (Deal of the Day)

Major airlines are reinstating minimum-stay requirements. Here's how to get around them.

Source: SmartMoney.com | 30 Jun 2008 | 8:26 pm

U.S. Senator Chuck Hagel Discusses McCain, Obama, Iraq

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 8:19 pm

Bloomberg's Stohr on Handgun Ruling; Arendt Discusses Poll

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 8:17 pm

Energy ETFs Gain on Ho-Hum Day (Daily ETF Wrap-Up)

After touching record levels, oil pulled back. But energy ETFs still did well.

Source: SmartMoney.com | 30 Jun 2008 | 8:15 pm

EMCORE Corp. Unloads Part of Alternative Energy Holdings (EMKR, WWAT)

EMCORE Corporation (NASDAQ: EMKR) has announced after the close of trading that the company has agreed to sell 2,000,000 shares of Series D Preferred Stock of WorldWater & Solar Technologies Corporation (OTC Bulletin Board: WWAT.OB). It has sold this along with 200,000 Warrants, to The Quercus Trust, a major shareholder of both EMCORE and WorldWater, at a price equal to $6.54 per share of the Series D Preferred Stock. The Series D Preferred Stock is convertible into WorldWater Common Stock at a ratio of 10 to 1, and each of the Warrants entitles the holder to purchase a share of...
Source: 24/7 Wall St. | 30 Jun 2008 | 8:12 pm

John Silvia Sees Impact of Energy Prices on Retail Sales

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 8:08 pm

Busy Tax Season Yields Bonus (One-Day Wonder)

The rebate rush and the disposal of the mortgage unit paid off for H&R Block.

Source: SmartMoney.com | 30 Jun 2008 | 8:06 pm

Yahoo: Icahn Can't

Few companies are willing to get down and dirty in a schoolyard brawl with Carl Icahn.

Even when Icahn implied that Dick Parsons, then the chief executive of Time Warner, was an "idiot," the media conglomerate held back from returning fire.

Yet Yahoo, in defending how it handled merger discussions with Microsoft, is taking aim at Icahn just where it hurts. Icahn, Yahoo suggests, is simply not a very good activist investor.

In a presentation to its shareholders, Yahoo lists 15 companies that Icahn invested in over the last three and a half years and sought to change its strategy or gain representation on its board. Only three of the 15 have had gains in their stock prices since Icahn started to stir things up.

Among the notable losers are WCI Communities, which is down 90 percent with Icahn as chairman, and Motorola, down 50 percent, although Icahn has two of its 12 board seats. The big winner is BEA Systems (up 40 percent), where Icahn agitated successfully for a sale to Oracle, albeit at a price significantly less than what BEA ultimately received.

For Yahoo, Icahn has "an ill-defined plan" that consists entirely of selling the company to Microsoft, Yahoo says.

And such a sale is not happening, and that is all Microsoft's fault, Yahoo contends. The software giant was "unresponsive and inconsistent" in negotiations before it walked away, Yahoo says.

"This is simply revisionist history," a Microsoft spokesman told the Associated Press.

With its stock drifting down toward $20 and just a month before its annual shareholder meeting, Yahoo is pressing hard to make its case that it didn't blow a chance to get shareholders a rich premium. Investors disappointed with Jerry Yang and Yahoo's board may vote for Icahn's slate in protest.

And what does Icahn think of Yahoo's attack on his investing record? He did not respond immediately, but had promised last week on his blog that he would be discussing Yahoo "shortly."



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Source: Portfolio.com: Top 5 | 30 Jun 2008 | 8:00 pm

Not your average home improvements

In dangerous areas like Beirut, residents hope for the best, but transform their homes into fortresses in preparation for the worst. Ben Gilbert reports.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Iraq to announce U.S. oil contracts

The bidding is on for access to Iraq's oil fields and U.S. companies seem likely to profit. Host Bob Moon talks with the Brookings Institute's Mike O'Hanlon about the impact the contracts will have.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

A bit of rate relief for students

Students borrowing money from the federal government will soon be able to slash their interest rates. Host Bob Moon asks Marketplace's Tess Vigeland how to take advantage of the rate change.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Let young workers make a difference

A new generation is hitting the workforce -- and steering clear of jobs in the federal government. But don't blame them, says commentator Paul Light; blame the bureaucracy.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Ruling threatens resales on eBay

A French court ordered eBay to pay millions for allowing knock-offs on its site, a decision that could have an impact on the auctioneer's business worldwide. Jill Barshay reports.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Insurance companies are well covered

Extreme weather has driven insurance claims way up in 2008, but the insurance companies have plenty of capital to weather the storm. Dan Grech reports.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Banks fear Europe's reaction to inflation

Inflation is prompting European regulators to start raising interest rates, a move some worry could send the global economy into an even sharper downturn. Stephen Beard reports.
Source: Marketplace | 30 Jun 2008 | 7:50 pm

Ebay ordered to pay €38m to LVMH over fakes

A French court has hit at the heart of Ebay's business model by ordering the online retailer to pay almost €40m to LVMH, the French luxury goods maker, for failing to do enough to block sales of counterfeit goods
Source: FT.com - US homepage | 30 Jun 2008 | 7:31 pm

France Telecom drops $40bn TeliaSonera bid

France Telecom has abandoned its $40bn cash and share bid for TeliaSonera, leaving its plans to create Europe's largest telecoms company in tatters
Source: FT.com - US homepage | 30 Jun 2008 | 6:53 pm

Installing a Pool Without Getting Soaked (SmartMoney Magazine)

Here's how to build your backyard oasis without getting soaked.

Source: SmartMoney.com | 30 Jun 2008 | 6:37 pm

Eurozone inflation soars to new high

June figure is the highest since 1999, new data showed as opposition mounted to a widely expected move by the European Central Bank to raise its main interest rate later this week
Source: FT.com - US homepage | 30 Jun 2008 | 6:29 pm

Yahoo board sharpens attack on Icahn

Yahoo's board intensified an attack on Carl Icahn, the activist investor, questioning his investment record and describing his plans for the internet company as ill-defined
Source: FT.com - US homepage | 30 Jun 2008 | 6:11 pm

Machinery Maker's Returns Look Good, Not Great (Stock Screen)

This machinery maker should offer steady returns, but is that reason enough to buy?

Source: SmartMoney.com | 30 Jun 2008 | 5:17 pm

Dental Supplier Trades at Tempting Discount (Stock Screen)

A midsize distributor of dental supplies is trading at a tempting discount.

Source: SmartMoney.com | 30 Jun 2008 | 5:16 pm

Pack Doesn't Set the Pace -- or Price (Tradecraft)

Can GM's struggles really come as a surprise to the herd still riding its shares?

Source: SmartMoney.com | 30 Jun 2008 | 4:06 pm

Markets, Not Formulas, Dictate Asset Allocation (Tradecraft)

Markets, not formulas, should dictate asset allocation. Plus: Still big on Japan.

Source: SmartMoney.com | 30 Jun 2008 | 3:45 pm

Economy Eases Back From the Brink for Now (Pundit Watch)

After being pushed to the brink, the economy has inched its way back -- for now.

Source: SmartMoney.com | 30 Jun 2008 | 3:22 pm

Gerdau Rated New `Overweight' at JPMorgan

Source: Bloomberg - All Podcasts | 30 Jun 2008 | 2:52 pm

Pessimism Prevails

Is today's economy as bad as it was during the Great Depression? Will the S&P 500 drop as much as it did in 1974? Is the Dow going to 4,500?

Is there any reason to get out of bed anymore?

Current economic forecasts certainly aren't providing it. The consensus seems to be: Things are bad, and they're going to get worse.

The Bank of International Settlements, which is known as the central bank for the world's central banks, said in its annual report that the global economic downturn is nearing a "tipping point" that could be so severe that the rising prices could reverse to enter a period of deflation.

"In the aftermath of a long credit-driven boom, it would not be surprising to see turmoil in financial markets, slowing real growth and temporarily rising inflation. While difficult to predict, their interaction does appear to point to a deeper and more protracted global downturn than the consensus view seems to expect."

It urges central banks to raise interest rates and to be prepared to keep them high even when inflationary pressures are not apparent.

Elsewhere, economists used last week's dramatic sell-off in the stock market to evoke moods of past periods of financial turmoil. On Friday, the Dow Jones industrials officially dipped into bear-market territory, when their intraday lows fell to 20 percent below their highs set last October. It was the Dow's worst performance for the month of June since the Great Depression.

Bloomberg reports that some money managers believe the losses in the stock and bond markets look quite like the losses suffered in 1974, when the S&P 500 lost 30 percent of its value and consumer prices surged 12.3 percent.

Writing in the Financial Times, Harvard's Lawrence Summers suggests that "we are now at the most dangerous moment since the American financial crisis began last August," and he offers advice to policymakers on ways to soften the blow.

The blogger Yves Smith points to a number of stomach-churning headlines, including the forecast from a Société Générale strategist who predicts the Dow will fall to 4,500 and the S&P 500 will drop to 500.

Other European banks are similarly bearish on the U.S. economic state of affairs. The chairman of Fortis said part of the reason it sought a capital injection last week was because it foresees a "complete meltdown" in American financial markets within weeks.

Strategists at Barclays Capital predicts the Federal Reserve will need to raise interest rates six times by the end of next year as inflation rises to 5.5 percent.

Against this backdrop of pessimism, the price of a barrel of oil hit $143 today, and the cost of a gallon of gas hit a record high at $4.08.

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Source: Portfolio.com: Top 5 | 30 Jun 2008 | 2:30 pm

A New Brass Ring for Wall Street

Can Wall Street reinvent itself?

In the wake of the credit crisis, there has been much discussion about overhauling the regulatory oversight of Wall Street, changing capital requirements, and whether investment banks should merge with commercial banks.

A major pillar of Wall Street—compensation—already appears to be heading for a change.

Citigroup is planning to revamp its bonus system, reports Francesco Guerrera of the Financial Times. The aim of the changes is to tie bonuses to the performance of Citi as a whole, rather than as a unit or a trading desk. Bonuses will be calculated in part on how well divisions cooperate with one another.

Douglas McIntyre of 24/7 Wall St. is skeptical, noting that Wall Street has done very well in the past by rewarding individual performances. The bank's plan, he says, "will lump the 'all-stars' in with the mediocre and cause the kind of executive revolt that Citi can ill afford."

But if there is a financial institution that needs to focus on the collective good, it is Citi, a sprawling creation of two decades' worth of mergers. The bank has long suffered from lack of investment and a minimum of integration that at times has had bankers in different divisions working at cross-purposes.

Year-end bonuses are coming under fire in different ways. A number of Wall Street executives did not take bonuses for 2007, and Richard Fuld of Lehman Brothers has already told managing directors at his firm that he will not take one for 2008.

The Financial Times also reports today that a wave of layoffs of bankers this month was prompted in part by fears that the firms could face litigation over bonuses if they were fired in the second half of the year.

It's worth repeating the question posed by Felix Salmon in the March issue of Condé Nast Portfolio: Why are the banks giving out huge bonuses at all?

Wall Street earned a total of $11.4 billion in 2007. But the five firms at the time paid their employees $66 billion, 10 percent more than in 2006.

Investment banks routinely spend half their revenue on paying their bankers, traders, and support staff. A good chunk of that comes in the form of year-end bonuses. But the bonus system has been criticized for encouraging too much risk, for putting the interests of individuals and units above those of the firm itself. In good times, bonuses often reward mediocrity, and in difficult times, they can invite danger.

Michael Santoli provided a good overview of the changes that may come to Wall Street in Barron's this weekend.

Wall Street, "is likely to be a less lucrative and less fun place to work," for perhaps the next couple of years. And compensation practices may change.

"Shareholders may agitate for more for themselves," he notes.



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Source: Portfolio.com: Top 5 | 30 Jun 2008 | 12:30 pm