Dow Moves Back To 10,000

The DJIA is heading back to 10,000 and it may not take long to get there. The index moved into “correction” territory yesterday, down 10% from its peak. Another 1,ooo points and it will have moved back into “bear” territory. Is it any wonder? The DJIA moved up by 70% from its March 2009 lows. [...]

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Source: 24/7 Wall St. | 21 May 2010 | 4:13 am

Funding gap causes mortgage lending to dive

Gross mortgage lending plummeted 12 per cent between March and April, as lenders urge the coalition Government to address the funding gap they say is holding them back.


Source: Latest Business News from Times Online | 21 May 2010 | 4:13 am

Opel sees "significant" turnaround progress

FRANKFURT (Reuters) - Opel Chief Executive Nick Reilly and labor leader Klaus Franz have called a joint press conference for 1200 GMT (8 a.m. ET) to inform on "significant progress" in the restructuring of Opel, the carmaker said on Friday.



Source: Reuters: Business News | 21 May 2010 | 4:12 am

BA reports record loss of £531m

British Airways reports its biggest annual loss due to lower passenger numbers, higher costs and the impact of strike action.
Source: BBC News | Business | World Edition | 21 May 2010 | 4:11 am

Abbott to buy Piramal division for $3.7 billion

Abbott Laboratories agrees to buy the branded generic drugs business of India’s Piramal Healthcare for about $3.7 billion, a deal that will thrust Abbott into the leading spot among drug makers in the country.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 4:09 am

Indications: U.S. futures edge up after Thursday's bashing

U.S. stock futures point higher Friday after the previous session's pounding that sent markets into a correction territory. Dell earnings disappoint.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 4:05 am

BA posts record full-year loss, eyes break even in 2010/11

LONDON (Reuters) - British Airways posted a record 531 million pounds full-year loss on Friday, hit by the recession, industrial disputes and the winter snow, though its ambitions to break even next year could by hit by more strikes.



Source: Reuters: Business News | 21 May 2010 | 4:03 am

Most (and least) affordable cities to buy a house

Here are the 5 metro areas where the average American family can easily afford to purchase a median-priced home -- and the 5 where they can't.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 4:03 am

Stocks set for higher start

U.S. stocks were poised for a higher start Friday, as investors eyed opportunities after the previous session's rout sent stocks into correction territory.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 4:00 am

Europe Markets: Europe shares off lows but debt jitters linger

European shares decline on Friday, with investors still nervous about levels of government debt, although the losses weren’t as steep as seen in sessions earlier in the week.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 4:00 am

Taskforce in euro crisis meeting

An EU taskforce of finance ministers is to meet in Brussels to brainstorm ways to prevent another crisis like that in Greece.
Source: BBC News | Business | World Edition | 21 May 2010 | 3:59 am

The FCC Prepares To Beat Down AT&T And Verizon, Lift Sprint

The FCC may try to undo what the free markets have done according to its annual report. It argues that the concentration in the wireless market is rising quickly, perhaps too quickly.The FCC data indicates that AT&T (NYSE: T) and Verizon Wireless have become too powerful and that Sprint (NYSE: S) and T-Mobile are being [...]

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Source: 24/7 Wall St. | 21 May 2010 | 3:59 am

Frantic selling abates as euro rises

The euro made gains in Asia as signs of the frantic selling in the previous session began to abate, lifting the Aussie dollar and limiting losses in Asia
Source: Financial Times - US homepage | 21 May 2010 | 3:57 am

All bets off for future of Leisure & Gambling

Italian football fans — and especially followers of José Mourinho’s mighty Inter Milan — may have done for Leisure & Gaming, the London-listed bookmaking company, whose shares were suspended today after a seemingly doomed attempt to crack the betting market in Italy.


Source: Latest Business News from Times Online | 21 May 2010 | 3:57 am

US presses Beijing on clean-energy market access (AP)

U.S. Commerce Secretary Gary Locke, center, attends the ribbon-cutting ceremony for the United Family New Hope Oncology Center in Beijing, China, Friday, May 21, 2010. (AP Photo/Ng Han Guan)AP - Commerce Secretary Gary Locke pressed Beijing on Friday to give U.S. clean energy companies greater access to its market to help combat climate change.



Source: Yahoo! News: Business News | 21 May 2010 | 3:52 am

BA posts another record loss as strikes loom (AP)

British Airways planes sit on the tarmac at Heathrow terminal 5 in London, Thursday, May 20, 2010. Thousands of travellers face the renewed threat of disruption in coming weeks after the union representing British Airways cabin crews won a landmark ruling against a legal block on its planned strikes. (AP Photo/Odd Andersen)AP - British Airways PLC posted a record net loss for the second consecutive year on Friday — giving Chief Executive Willie Walsh a platform to accuse striking cabin crews of being out of touch with reality.



Source: Yahoo! News: Business News | 21 May 2010 | 3:52 am

Government borrowing hits £10bn high

The Government borrowed less than expected last month, official figures showed today, in a boost for the Chancellor George Osborne as he battles to draw up his emergency Budget.


Source: Latest Business News from Times Online | 21 May 2010 | 3:51 am

Mutual Funds Weekly: Vanguard's Bogle calls for fund-industry reform

Don't miss these top money and investing columns.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 3:50 am

Stock market: tracker funds take a tumble

As index funds fall out of favour, is it time to switch to an active manager?
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 3:48 am

US Senate backs Wall St reforms

The US Senate passes a bill providing the most sweeping overhaul of financial regulations since the 1930s.
Source: BBC News | Business | World Edition | 21 May 2010 | 3:42 am

British Airways reports record annual loss of £531m (AFP)

British Airways on Friday posted a record annual pre-tax loss of 531 million pounds (609 million euros, 765 million dollars) as sales slumped but forecast it would break even this year.(AFP/File/Carl Court)AFP - British Airways on Friday posted a record annual pre-tax loss of 531 million pounds (609 million euros, 765 million dollars) on slumping sales but forecast it would break even this year.



Source: Yahoo! News: Business News | 21 May 2010 | 3:40 am

BOJ cautious on Europe woes, outlines new loan plan

TOKYO (Reuters) - The Bank of Japan raised its outlook for the economy Friday, citing signs of sustained recovery in domestic demand, but also warned that Europe's debt debacle posed a risk to the global economy.



Source: Reuters: Business News | 21 May 2010 | 3:39 am

PepsiCo to Invest $2.5 Billion in China Over Next Three Years


Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 3:39 am

Mortgage lending falls in April

The total amount of money lent in new mortgages fell back in April, underlining the low level of lending so far this year.
Source: BBC News | Business | World Edition | 21 May 2010 | 3:38 am

UK budget deficit revised lower

The Office for National Statistics (ONS) revises down last year's budget deficit from £163.4bn to £156bn.
Source: BBC News | Business | World Edition | 21 May 2010 | 3:38 am

Abbott buys India drugs unit for $3.7bn

US drugmaker is set to become India’s biggest pharmaceutical company after it announced the acquisition of Piramal’s generics drugs business unit
Source: Financial Times - US homepage | 21 May 2010 | 3:33 am

Pakistan blocks Youtube, others


Source: Business and financial news - CNNMoney.com | 21 May 2010 | 3:31 am

Politicians In Europe Try To Find The Details Of Austerity

Somewhere among all of those hundreds of billions of dollars in budgets from Greece, Ireland, the US, Spain, and Portugal, wasteful spending is hiding. Or, perhaps it is money that is “essential” to the process of governing but has become less so in an age of prosperity. The FT reports that in the UK “A [...]

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Source: 24/7 Wall St. | 21 May 2010 | 3:28 am

'Europe isn't perfect but it's not about to crash and burn'

Fundamentalist view: the Continent has its problems but investors can still find quality European companies, says Henderson's Richard Pease.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 3:28 am

Eyes on Germany as lawmakers vote on euro rescue (AP)

German Chancellor Angela Merkel, right, and Vice Chancellor and Foreign Minister Guido Westerwelle react during the final parliament debate of an euro 750 billion (US $1 trillion) eurozone rescue package in Berlin, Friday, May 21, 2010. (AP Photo/Markus Schreiber)AP - With the future of the euro in the balance, German lawmakers were expected Friday to approve the massive rescue deal to save the common currency and contain the debt crisis — a signal that the finance minister said was needed to reassure jittery markets.



Source: Yahoo! News: Business News | 21 May 2010 | 3:28 am

Opel seals deal to save €1bn in labour

German carmaker agrees with its works council in plan to save labour costs over the next five years in a bid to bring it back to profit
Source: Financial Times - US homepage | 21 May 2010 | 3:23 am

CORRECTED: Opel sees "significant" turnaround progress (Reuters)

Reuters - Opel Chief Executive Nick Reilly and labor leader Klaus Franz have called a joint press conference for 1200 GMT (8 a.m. ET) to inform on "significant progress" in the restructuring of Opel, the carmaker said on Friday.
Source: Yahoo! News: Business News | 21 May 2010 | 3:21 am

Oil spill: How much is a pelican worth?

Just how much is a dead pelican worth? BP is about to find out.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 3:16 am

Rise of rivals causes LSE profits to plunge

The rise of rival trading platforms has caused profits at the London Stock Exchange to plunge by nearly a fifth.
Source: Latest Business News from Times Online | 21 May 2010 | 3:14 am

Chrysler unveils new Grand Cherokee

Chrysler unveils the first totally new vehicle launched by the carmaker's new management.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 3:12 am

Inquiry into Pakistan series loss

The performance of Pakistan on their tour of Australia is being investigated by the International Cricket Council's anti-corruption unit.
Source: BBC News | Business | World Edition | 21 May 2010 | 3:08 am

BOJ cautious on Europe woes, outlines new loan plan

TOKYO (Reuters) - The Bank of Japan raised its outlook for the economy Friday, citing signs of sustained recovery in domestic demand, but also warned that Europe's debt debacle posed a risk
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 3:07 am

The Limits Of Science, Oil Leak At 95,000 Barrels A Day?

There is a wild divergence in the estimates of oil leaking from the Deepwater Horizon rig disaster. The NOAA and BP plc (NYSE: BP) estimates continue to be at 5,000 barrels a day. BP says that its mechanisms have lowered the amount of oil that is leaking by 2,000 as it captures the crude as [...]

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Source: 24/7 Wall St. | 21 May 2010 | 3:06 am

Germany votes on aid as stocks slide on euro worries

BRUSSELS/BERLIN (Reuters) - Stocks slid further around the world on Friday on fears Europe's debt crisis and tougher financial regulation will hurt a global economic recovery, as Germany prepared to vote on a massive standby package to stabilize the euro.



Source: Reuters: Business News | 21 May 2010 | 3:01 am

Should I Trust the Stock Market? (Money and Your Mind)

What happens to your expectations when the Dow moves.



Source: SmartMoney.com | 21 May 2010 | 3:01 am

The Week in Business Tweets: Fear Factor (Twitter Beat)

Europe's woes and the flash crash consume the Twitterati.



Source: SmartMoney.com | 21 May 2010 | 3:01 am

MetroPCS Makes the Right Calls

Industry trends send strong signals about the prepaid-wireless giant.



Source: SmartMoney.com | 21 May 2010 | 3:01 am

Stock futures signal pause in sharp sell-off

(Reuters) - Stock index futures pointed to a slightly higher open on Wall Street on Friday, following the previous session's steep sell-off, with futures for the S&P 500 up 0.4 percent, Dow Jones futures up 0.29 percent and Nasdaq 100 futures up 0.15 percent at 0800 GMT (4 a.m. ET).



Source: Reuters: Business News | 21 May 2010 | 3:00 am

Stock futures signal pause in sharp sell-off (Reuters)

A flag flies on outside of the New York Stock Exchange building in New York, May 6, 2010. REUTERS/Lucas JacksonReuters - Stock index futures pointed to a slightly higher open on Wall Street on Friday, following the previous session's steep sell-off, with futures for the S&P 500 up 0.4 percent, Dow Jones futures up 0.29 percent and Nasdaq 100 futures up 0.15 percent at 0800 GMT (4 a.m. ET).



Source: Yahoo! News: Stock Markets News | 21 May 2010 | 3:00 am

Bling Bone, Fine Jewelry and Accessories for Pets and Pet Lovers Selects Whitegate PR as Agency of Record


Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 3:00 am

Economic Report: Euro-zone PMI signals slower pace in May

Sharp slowdown in manufacturing leads to a more sluggish pace of growth for private-sector activity in the 16-nation euro zone in May.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 2:58 am

Eyes on Germany as lawmakers vote on euro rescue

With the future of the euro in the balance, German lawmakers were expected Friday to approve the massive rescue deal to save the common currency and contain the debt crisis, a package the...
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 2:50 am

FDIC Signal Bank Industry Improvement, Hiding Scars

The FDIC Quarterly Banking Profit reports that industry net income rose to a two-year high of $18 billion. While that seems like a large number, it is spread across almost 8,000 banks. The figure is well up from less than $5 billion in the same period last year. The agency’s carefully watched “problem bank” list [...]

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Source: 24/7 Wall St. | 21 May 2010 | 2:49 am

British Airways sees second straight record loss

U.K. carrier says it should be able to break even in the current year dogged already by strikes and volcanic eruptions.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 2:49 am

Europe markets down on debt fears

European stock markets lose ground on continuing fears that the region's debt crisis could spread around the world.
Source: BBC News | Business | World Edition | 21 May 2010 | 2:48 am

Thailand has been knocked ‘back to square one’

Thailand’s reputation has been knocked “back to square one” by the eruption of deadly political violence on the streets of Bangkok and cannot expect investor confidence to return soon, the country’s Finance Minister said today.


Source: Latest Business News from Times Online | 21 May 2010 | 2:47 am

London Markets: U.K. shares down again as banks weigh

British shares fall Friday, with banks pressured as investors continue to fret about economic growth trends.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 2:43 am

Abbott buys unit of Piramal Healthcare for $3.7B (AP)

AP - Abbott Laboratories has agreed to buy the domestic healthcare business of India's Piramal Healthcare Ltd., a leading generics company, for $3.72 billion, the companies said Friday.
Source: Yahoo! News: Business News | 21 May 2010 | 2:41 am

Abbott buys unit of Piramal Healthcare for $3.7B

Abbott Laboratories has agreed to buy the domestic healthcare business of India's Piramal Healthcare Ltd., a leading generics company, for $3.72 billion, the companies said Friday. The...
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 2:41 am

David Cameron and Angela Merkel to clash over EU treaty call

On his first foreign trip, the Prime Minister meets the German Chancellor for talks that diplomats have suggested will be "frosty".
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 2:39 am

Asian stock markets tumble amid Europe fears (AP)

A television screen on the floor of the New York Stock Exchange shows the closing number for the Dow Jones Industrial Average, Thursday, May 20, 2010, in New York. (AP Photo/Richard Drew)AP - World markets tumbled Friday, extending a wave of selling amid growing fears that Europe's debt crisis could spread and undermine global economic growth.



Source: Yahoo! News: Business News | 21 May 2010 | 2:39 am

Asian stock markets tumble amid Europe fears (AP)

A television screen on the floor of the New York Stock Exchange shows the closing number for the Dow Jones Industrial Average, Thursday, May 20, 2010, in New York. (AP Photo/Richard Drew)AP - World markets tumbled Friday, extending a wave of selling amid growing fears that Europe's debt crisis could spread and undermine global economic growth.



Source: Yahoo! News: Stock Markets News | 21 May 2010 | 2:39 am

FTSE 100 falls after more losses in US, Asia (AFP)

Leading shares fell in early trade, after steep losses elsewhere, as eurozone debt concerns, rising US jobless claims and the prospect of Wall Street financial reforms hit sentiment.(AFP/File/Shaun Curry)AFP - Leading shares fell on Friday, after steep losses elsewhere, as eurozone debt concerns, rising US jobless claims and the prospect of Wall Street financial reforms hit sentiment.



Source: Yahoo! News: Stock Markets News | 21 May 2010 | 2:35 am

Broker fined for 'rotten' scheme

The City regulator issues a record £2.8m fine to a broker who ran a "rotten" scheme to ramp up the price of shares he owned.
Source: BBC News | Business | World Edition | 21 May 2010 | 2:28 am

Euro rises again before key German vote

The euro has improved for the third consecutive day as the German Parliament prepares to vote on the bailout package and European finance ministers hold key meetings.


Source: Latest Business News from Times Online | 21 May 2010 | 2:24 am

Abbott to buy India Piramal's health unit for $3.7 billion

MUMBAI (Reuters) - Abbott Laboratories Inc will pay $3.72 billion to acquire India's Piramal Healthcare's pharmaceutical solutions business, as global drugmakers look to boost their presence in emerging markets.



Source: Reuters: Business News | 21 May 2010 | 2:23 am

Spain approves austerity measures

Spain approves a 15bn-euro ($19bn) austerity plan to rein in the public deficit and ease fears of a Greek-style debt crisis.
Source: BBC News | Business | World Edition | 21 May 2010 | 2:16 am

5 economic fault lines pose risks for recovery

Most economists agree the Great Recession has been over for almost a year, and that the U.S. economy is not poised to fall into a "double dip" recession.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 2:15 am

Which bank deserves your money?

Shopping for a new bank? It's nice to have a branch on every corner, but that's not the only quality that makes an institution worthy of your business.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 2:05 am

LSE swings to profit, but competition hits revenue

The London Stock Exchange on Friday reports a return to profit in the latest fiscal year due to lower one-off charges, though revenue and operating profit suffer.



Source: MarketWatch.com - Top Stories | 21 May 2010 | 2:05 am

Wall Street reform backed by US Senate

The US Senate has passed a bill that would impose the most far-reaching restraints on the big banks since the Great Depression.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 2:01 am

'I am not asking for forgiveness' - Bryers says he's sorry

Blue Chip property investment group co-founder Mark Bryers has apologised to investors, many of whom lost large sums when the group was put into liquidation, and says he has put in place a scheme to compensate former clients."I...
Source: nzherald.co.nz - Business | 21 May 2010 | 2:01 am

The Conference Board Germany Business Cycle Indicators(SM)


Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 2:00 am

BA attacks strikers amid record losses

British Airways has crashed to its worst-ever loss. The airline, which is in the middle of a debilitating strike with cabin crew, reported losses of £531 million in the year to March 31.


Source: Latest Business News from Times Online | 21 May 2010 | 2:00 am

Oil falls below $70 on global economy concerns

Oil prices fell below $70 a barrel Friday in Asia on investor concern that a financial crisis in Europe could undermine the global economic recovery and crude demand. Benchmark crude for
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 1:55 am

Oil falls below $70 on global economy concerns (AP)

Traders react during trading of crude and natural gas options on the floor of the New York Mercantile Exchange, Thursday May 20, 2010. Oil prices slid below $70 a barrel as protests in Greece renewed market concerns about Europe's debt crisis. (AP Photo/Bebeto Matthews)AP - Oil prices fell below $70 a barrel Friday in Asia on investor concern that a financial crisis in Europe could undermine the global economic recovery and crude demand.



Source: Yahoo! News: Business News | 21 May 2010 | 1:55 am

Senate passes Wall Street reform bill

The Senate passed late Thursday night the most sweeping regulatory overhaul of the financial system since the New Deal.
Source: Business and financial news - CNNMoney.com | 21 May 2010 | 1:51 am

Obama aims for better mileage years into future

President Barack Obama plans to order the government to prepare new fuel efficiency standards to begin years from now. Obama is also asking federal agencies to extend a national...
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 1:51 am

Media Digest 5/21/2010 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   Shares in Europe plunged Reuters:   Oil hit the shores of Louisiana Reuters:   The EU faces scrutiny over whether its austerity measure will be adequate. Reuters:   The euro moved up in a short covering rally. Reuters:   Google Inc (NASDAQ: GOOG) launched its new TV product.Reuters:   Samsung says it sees strong cellphone demand. Reuters:   Abbott (NYSE: [...]

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Source: 24/7 Wall St. | 21 May 2010 | 1:49 am

Markets take fright at political moves

Fears that politically motivated financial regulation could undermine the fragile economic recovery have sparked a crisis of confidence among investors
Source: Financial Times - US homepage | 21 May 2010 | 1:49 am

Spain cuts 2011 growth forecast as austerity bites (AP)

AP - Spain says cutbacks aimed at reigning in its deficit will hurt economic growth in 2011, which it now expects to be half a percentage point lower than previously forecast.
Source: Yahoo! News: Business News | 21 May 2010 | 1:46 am

Spain cuts 2011 growth forecast as austerity bites

Spain says cutbacks aimed at reigning in its deficit will hurt economic growth in 2011, which it now expects to be half a percentage point lower than previously forecast. Finance...
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 1:46 am

Opel to make 8 a.m. ET announcement on restructuring

FRANKFURT (Reuters) - Opel Chief Executive Nick Reilly and labor leader Klaus Franz have called a joint press conference for 1200 GMT (8 a.m. ET) to inform on "significant progress" in the...
Source: RSS feed - channel BNewsBusiness | 21 May 2010 | 1:42 am

Toyota recalls Lexus cars in Japan, US to follow (AP)

A visitor takes a photograph of the Toyota Lexus LS650hL at a Toyota showroom in Tokyo, Japan, Wednesday, May 19, 2010. Toyota said Wednesday it will recall 4,500 Lexus vehicles in Japan to fix a computerized steering problem, with another 7,000 vehicles overseas also likely affected. (AP Photo/Shizuo Kambayashi)AP - Toyota Motor Corp. began a recall Friday of 4,509 Lexus cars in Japan because of a computer problem affecting the model's steering system, with a similar recall to follow in the U.S.



Source: Yahoo! News: Business News | 21 May 2010 | 1:40 am

Tesco backs alcohol price limits

Supermarket chain Tesco says it wants to see curbs on the sale of cheap alcohol during this Parliament.
Source: BBC News | Business | World Edition | 21 May 2010 | 1:39 am

US Senate passes biggest overhaul of big banks since Depression

The US Senate has passed the most far-reaching restraints on big banks since the Great Depression.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 1:11 am

Toyota gets Tesla stake while Tesla gets Toyota factory

PALO ALTO, Calif./TOKYO (Reuters) - Toyota Motor Corp said it would take a $50 million stake in U.S. electric carmaker Tesla Motors, a move that gives the Japanese automaker a chance to repair its dented public image and vaults the California start-up on to the world stage.



Source: Reuters: Business News | 21 May 2010 | 1:08 am

National Restaurant Assn. and UnitedHealth join on coverage effort for restaurant workers

The initiative is one of the largest private-sector efforts to expand health coverage. Its creators say it could help cover the 4 million to 6 million restaurant employees without health benefits.

The National Restaurant Assn. and insurance giant UnitedHealth Group Inc. are teaming up in a bid to make coverage more accessible to millions of restaurant workers without health benefits — three years ahead of when the healthcare overhaul would require everyone to have insurance.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

Stocks tumble; Dow drops 376 points

Investors worry about Europe's continuing fiscal problems and an unexpected increase in first-time unemployment claims.

The stock market had its worst day in more than a year Thursday, with the Dow industrials tumbling 376 points, as fear intensified that a debt crisis in Europe could jeopardize the global economic recovery.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

9 Southern California men charged with operating foreclosure-relief scam

The state attorney general's office says the Canoga Park company allegedly stole at least $2.3 million from about 1,500 homeowners.

Nine Southern California men have been charged with operating a foreclosure-relief scam that allegedly stole at least $2.3 million from about 1,500 homeowners across the U.S., the state attorney general's office announced Thursday.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

California median home price in April unchanged from March

The median price for all homes sold in the Golden State was $255,000, a 15.4% jump from the April 2009 bottom, when more than half of sales were foreclosures. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Tesla to build electric cars at Northern California plant

Toyota invests $50 million in the venture. Unhappy Downey officials say Tesla had indicated it would put its factory there. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Backyard gardens become income generators in lean times

Green-thumb entrepreneurs turn a grocery list of items they can grow, hunt or collect themselves into extra cash. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Southern Californians are ready to travel again this holiday weekend

After staying close to home last Memorial Day, they plan to hit the road in greater numbers this year, an AAA survey says. Travelers also are expected to spend a little more than they did in 2009. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Payday lenders scuttle financial reform amendment to limit such loans

Thursday was a good day for supporters of financial reform. It was a great day for payday lenders.
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Stocks tumble; Dow drops 376 points

Investors worry about Europe's continuing fiscal problems and an unexpected increase in first-time unemployment claims. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Payday lenders scuttle financial reform amendment to limit such loans

Thursday was a good day for supporters of financial reform. It was a great day for payday lenders.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

Backyard gardens become income generators in lean times

Green-thumb entrepreneurs turn a grocery list of items they can grow, hunt or collect themselves into extra cash.

Locking up his station wagon, the one with the scratched paint and unpaid bills covering the floor mats, Cam Slocum crossed the parking lot and stepped into the kitchen of the swanky French restaurant Mélissein Santa Monica.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

National Restaurant Assn. and UnitedHealth join on coverage effort for restaurant workers

The initiative is one of the largest private-sector efforts to expand health coverage. Its creators say it could help cover the 4 million to 6 million restaurant employees without health benefits. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Southern Californians are ready to travel again this holiday weekend

After staying close to home last Memorial Day, they plan to hit the road in greater numbers this year, an AAA survey says. Travelers also are expected to spend a little more than they did in 2009.

After staying close to home last year, Southern Californians plan to shake off their recession fears by hitting the road in bigger numbers this Memorial Day weekend.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

Big banks prosper but smaller lenders' struggles deepen

The FDIC reports that nearly 10% of all U.S. institutions — most of them community banks — were in trouble as the first quarter closed. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Motion picture fund fined $7,500 by state over injury at nursing home

A resident had suffered a serious head wound while being moved last May. The incident is likely to fuel questions about the level of care that existed after a decision to shut down the home. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Big banks prosper but smaller lenders' struggles deepen

The FDIC reports that nearly 10% of all U.S. institutions — most of them community banks — were in trouble as the first quarter closed.

First-quarter profits tripled for the nation's banking industry as big banks recovered their footing, the government reported Thursday.



Source: L.A. Times - Business | 21 May 2010 | 1:00 am

9 Southern California men charged with operating foreclosure-relief scam

The state attorney general's office says the Canoga Park company allegedly stole at least $2.3 million from about 1,500 homeowners. ...
Source: RSS feed - channel BNPaperBusiness | 21 May 2010 | 1:00 am

Business Bullet: Asia, Euro, Oil & Gold, BA

The latest news on: Asia, Euro, Oil & Gold, BA
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 12:56 am

Market rallies but still at lowest in months

The New Zealand sharemarket finished off its day's lows, helped by a rebound on the Australian market, but still ended the week at its lowest level in nine months.The benchmark NZX-50 index, which has been on a downward slide...
Source: nzherald.co.nz - Business | 21 May 2010 | 12:43 am

British Airways posts record £531m loss

BA unveiled record losses as it battled to cope with the biggest economic downturn in 60 years.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 21 May 2010 | 12:36 am

Asian stocks dive although euro edges up (Reuters)

An employee counts Euro notes at the Bank of Taiwan head office in Taipei May 10, 2010. REUTERS/Pichi ChuangReuters - Asian stock markets slid on Friday as worries about the euro zone and the flare-up in market volatility prompted investors to sell shares and keep cash until calm returns.



Source: Yahoo! News: Stock Markets News | 21 May 2010 | 12:34 am

Economic Report: Bank of Japan holds steady, upgrades econ view

The Bank of Japan keeps its policy interest rate unchanged at 0.1%, as widely expected, and upgrades its economic outlook to say the nation is 'recovering moderately.'



Source: MarketWatch.com - Top Stories | 21 May 2010 | 12:00 am

NZ dollar claws back some lost ground

The New Zealand dollar regained some lost ground today against most currencies after an overnight slide, when spooked investors moved to the safe haven currencies of the United States dollar and Japanese yen.BNZ market strategist...
Source: nzherald.co.nz - Business | 20 May 2010 | 11:41 pm

China , U.S. seen nearing deal on yuan

Beijing may offer a major concession on its foreign-exchange policy in talks with U.S. officials early next week, though analysts say it's unlikely any official Chinese announcement on its currency would immediately follow the three days of meetings.



Source: MarketWatch.com - Top Stories | 20 May 2010 | 11:30 pm

Toyota to build electric cars with Tesla

Toyota Motor has announced a surprise joint venture with Tesla Motors to design and build electric cars.


Source: Latest Business News from Times Online | 20 May 2010 | 11:06 pm

Senate approves sweeping Wall St. reform bill

WASHINGTON (Reuters) - The U.S. Senate approved a sweeping Wall Street reform bill on Thursday night, capping months of wrangling over the biggest overhaul of financial regulation since the 1930s.



Source: Reuters: Business News | 20 May 2010 | 11:01 pm

Ranking the Full-Service Brokers (Magazine Cover)

Brokerage firm turmoil has shaken up the ranks of full-service brokers.



Source: SmartMoney.com | 20 May 2010 | 10:01 pm

Goldman Sachs chief regrets leveraged transactions: report

MUMBAI (Reuters) - Goldman Sachs Chief Executive regretted having participated in transactions that brought too much leverage into the world, he said in an interview to India's Economic Times newspaper published on Friday.



Source: Reuters: Business News | 20 May 2010 | 9:47 pm

Historic Wall Street overhaul passed by US Senate

The US Senate has passed legislation that will usher in the biggest overhaul of Wall Street since the Great Depression, fulfilling President Obama’s vow to toughen regulation of the financial sector after the credit crisis.


Source: Latest Business News from Times Online | 20 May 2010 | 9:00 pm

Senate approves sweeping overhaul of financial regulations

The 59-39 vote mostly along party lines brings the Obama administration a step closer to a top priority. The Senate and House must resolve differences in their bills before the president can sign it.

The Senate on Thursday approved the most sweeping rewrite of financial rules since the Great Depression, a milestone in President Obama's drive to expand government oversight and safeguard against another crisis like the Wall Street meltdown of 2008.



Source: L.A. Times - Business | 20 May 2010 | 8:40 pm

Toxie's In a Coma!

Toxie just got run over by a HAMP.

Loan modifications -- the kind encouraged by the government's HAMP program -- delivered the latest blow to Toxie, Planet Money's mortgage-filled toxic asset.

We bought Toxie for $1,000 earlier this year. Every month, we get a check. It's a small piece of the payments people are making on their mortgages. And every month, more houses get foreclosed on and sold off by the bank. When enough houses get sold off by the bank, Toxie will be dead.

She's not dead yet -- but she's in very, very bad shape.

Last month, we got $72.41; so far, we've received a total of $449.

This month, our payment was zero dollars and zero cents. We could still get another payment next month -- maybe. (This graphic has more on the status of the mortgages and the payments we've received.)

Samir Noriega, a partner at NPM Capital Management, took a look at Toxie for us. He figured out that lenders forgave some of the principal on the some of the mortgages.

Those are the kind of loan modifications the government's been encouraging as part of its HAMP plan, which is aimed at keeping more people in their homes and reducing the number of foreclosures.

Lowering the principal is sometimes done for homeowners who owe more on their house than it is worth -- people who, like the Planet Money team, bought an overvalued asset.

The modifications meant that the value of the mortgage payments declined. As a result, there wasn't enough money left in the monthly pool to pay us.

More Toxie:

The team at PBS's Patchwork Nation built the map below, which shows where the mortgages in Toxie are located. Click here or on the map to see more.

atm

Note: (PBS/Patchwork Nation)

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Source: NPR Blogs: Planet Money | 20 May 2010 | 8:30 pm

Senators press for flash crash answers

WASHINGTON/NEW YORK (Reuters) - Frustrated lawmakers pressed regulators to move faster to pinpoint the cause of the mysterious May 6 market crash, with two weeks of investigation producing few answers.



Source: Reuters: Business News | 20 May 2010 | 8:05 pm

Toyota's acceleration testing still inadequate, House members say

The automaker's assertions that 'extensive testing' has been conducted for electronic defects 'don't appear to be true,' Rep. Henry Waxman says.

House lawmakers Thursday charged that Toyota Motor Corp. still had not done the testing required to determine the cause of sudden unintended acceleration problems in its vehicles and had been more concerned about its image than addressing the issue.



Source: L.A. Times - Business | 20 May 2010 | 7:49 pm

White House accuses BP of ‘falling short’

The Obama administration accused BP of having “fallen short” of commitments to keep public and government officials fully informed of data and information surrounding the Deepwater Horizon oil spill in the Gulf of Mexico
Source: Financial Times - US homepage | 20 May 2010 | 7:45 pm

NZX keeps on falling, down 2.5pc

The New Zealand sharemarket has continued to fall this morning, hitting a nine-month low as markets around the world also slipped on sovereign debt fears in Europe.The benchmark NZX-50 index, which has been on a downward slide...
Source: nzherald.co.nz - Business | 20 May 2010 | 7:30 pm

Tesla to build electric cars at Northern California plant

Toyota invests $50 million in the venture. Unhappy Downey officials say Tesla had indicated it would put its factory there.

Tesla Motors Inc., bolstered by a $50-million investment from Toyota Motor Corp., will start making electric cars next year at a recently closed plant in Northern California.



Source: L.A. Times - Business | 20 May 2010 | 7:20 pm

Senate approves Wall Street reform bill

The US Senate passed a sweeping overhaul of finance evening, paving the way for President Barack Obama to sign it into law and forcing big banks into a major restructuring
Source: Financial Times - US homepage | 20 May 2010 | 7:16 pm

Toyota to partner with Tesla Motors

Toyota Motors will invest $50 million in electric car maker Tesla, the companies announced Thursday, and form a partnership aimed at developing new technology.
Source: Business and financial news - CNNMoney.com | 20 May 2010 | 7:16 pm

BP shareholders file lawsuit over rig disaster

JUNEAU, Alaska (AP) - A stockholder lawsuit claims "gross mismanagement" by top BP officials has severely damaged the company's reputation and hurt its value.The lawsuit, filed on Thursday in Superior Court in Anchorage, alleges...
Source: nzherald.co.nz - Business | 20 May 2010 | 7:00 pm

Budget adds seasoning to PIEs

The biggest, and best, news for savers in the latest budget was the reduction in PIE tax rates in line with marginal income tax levels.This was somethin
Source: nzherald.co.nz - Business | 20 May 2010 | 6:30 pm

Tesla Chances Efforts With Toyota (TM)

In the past, securing Toyota Motor Corporation (NYSE: TM) as a partner and investor would have been a score for Tesla Motors.  The reality is that it still probably is.  The problem is that Toyota has a tarnished brand after endless waves and waves of recalled cars.  Tonight came the announcement that the two companies [...]

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Source: 24/7 Wall St. | 20 May 2010 | 6:14 pm

Never mind the electric shock, feel the dividend

From an investor’s point of view, the great appeal of National Grid is its predictability. It has a very good idea of how much it will have to spend and how much it can expect to earn stretching years into the future. It may not be a growth business but it should be able to offer very secure income to shareholders.


Source: Latest Business News from Times Online | 20 May 2010 | 6:01 pm

British invasion lifts migration stats

The number of Britons coming to New Zealand has continued to bump up migration statistics, while the state of the UK economy is deterring Kiwis from moving to Britain.Net inward migration was 20,000 in the 12 months ended April...
Source: nzherald.co.nz - Business | 20 May 2010 | 6:00 pm

Obama forces out national intelligence chief

President Barack Obama sacked the US’s intelligence chief after months of turf wars and controversies over the country’s handling of terrorism
Source: Financial Times - US homepage | 20 May 2010 | 5:46 pm

Budget tax overhaul set to fuel inflation spike

Inflation is set to spike higher than economists had predicted as a result of the increase in goods and services tax and other levies and imposts, adding to expectations the central bank will begin hiking interest rates at its next...
Source: nzherald.co.nz - Business | 20 May 2010 | 5:30 pm

Google plans to hit small screens

Group unveils powerful array of allies in consumer electronics, retail and broadcast
Source: Financial Times - US homepage | 20 May 2010 | 5:08 pm

Top After-Hours Movers (BRCD, CLDX, DELL, FL, HOTT, MRVL, NDSN, CRM, RRGB)

We have many movers in the after-hours session.  Stocks on the move are Brocade Communications Systems, Inc. (NASDAQ: BRCD), Celldex Therapeutics, Inc. (NASDAQ: CLDX), Dell Inc. (NASDAQ: DELL), Foot Locker, Inc. (NYSE: FL), Hot Topic, Inc. (NASDAQ: HOTT), Marvell Technology Group Ltd. (NASDAQ: MRVL), Nordson Corporation (NASDAQ: NDSN), Salesforce.com Inc. (NYSE: CRM), and Red Robin [...]

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Source: 24/7 Wall St. | 20 May 2010 | 5:05 pm

Coalition programme for business: Good news, holes and some surprises

The leaders of the coalition Government unveiled their full agreement yesterday in a document entitled The Coalition: Our Programme for Government. Has the coalition delivered the foundations for recovery or just a fudge?
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 20 May 2010 | 4:59 pm

Stocks dive, Dow off 376 on world economic worries (AP)

Trader Gregory Rowe, right, works on the floor of the New York Stock Exchange, Thursday, May 20, 2010. The Dow Jones industrial average fell 376 points, its biggest one-day point drop since February 2009, and all the major indexes were down well over than 3 percent. (AP Photo/Richard Drew)AP - Stocks took their deepest plunge in more than a year Thursday as fears grew that Europe's debt crisis could spread around the world and undermine the U.S. economic recovery. The possibility has been brewing for weeks, but analysts said some investors are just waking up to it.



Source: Yahoo! News: Stock Markets News | 20 May 2010 | 4:44 pm

One month Goldman loss: $26 billion


Source: Business and financial news - CNNMoney.com | 20 May 2010 | 4:36 pm

Summary Box: Dow tumbles 376, the most in a year (AP)

AP - DOWN AGAIN: The Dow Jones industrial average fell 376 points, its biggest point drop since February 2009. The plunge put the Dow back into the red for 2010.
Source: Yahoo! News: Stock Markets News | 20 May 2010 | 4:35 pm

Coalition plan to raise wind power target is a joke

National Grid's vision of the next five years came on the day the Coalition published its programme for government which includes a crucial section on energy and the environment.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 20 May 2010 | 4:24 pm

Shareholders should back National Grid in its plans to spend big

Energy is an expensive business, just consider how your utility bills have changed over the years.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 20 May 2010 | 4:20 pm

Dow index suffers biggest drop in more than a year (AFP)

Traders work on the floor of the New York Stock Exchange on May 17. US stocks slumped Thursday on European debt concerns and bearish US economic data, with the Dow index tumbling more than three percent for its biggest drop in more than a year.(AFP/Getty Images/File/Spencer Platt)AFP - US stocks slumped Thursday on European debt concerns and bearish US economic data, with the Dow index tumbling more than three percent for its biggest drop in more than a year.



Source: Yahoo! News: Stock Markets News | 20 May 2010 | 4:00 pm

Commission warns on credit card fees

The Commerce Commission has warned credit card companies against charging late payment penalty fees of more than $15.The commission has been investigating late payment and over-limit fees on credit cards issued by American Express...
Source: nzherald.co.nz - Business | 20 May 2010 | 4:00 pm

Senators press for flash crash answers (Reuters)

Reuters - Frustrated lawmakers pressed regulators to move faster to pinpoint the cause of the mysterious May 6 market crash, with two weeks of investigation producing few answers.
Source: Yahoo! News: Stock Markets News | 20 May 2010 | 3:53 pm

Write-Offs: 05.20.10



$$$ “We are DONE FOR THE FORESEEABLE FUTURE INVESTING IN LARGE, COMPLICATED FINANCIAL INSTITUTIONS.” [FTAlphaville]

$$$ When public rage mounted over Wall Street executives’ post-bailout bonuses, Obama became impatient with the defense that the payments were necessary to hold key people in place. “Obama later told a friend that the angriest he got as president in his first year was when he heard [CEO Lloyd] Blankfein” justify his compensation by saying “that Goldman [Sachs] was never in danger of collapse. That was flatly untrue,” Obama said. [LA Times]

$$$ “There will be a mini exodus out of RBS in June,” predicts David Reynolds at search firm Scott Reynolds Partners. [eF]

$$$ Hugh Hendry’s Eclectica Fund Sees Hyperinflation Via Deflationary Event; Constructs Asian Bear Portfolio [MF]

$$$ Wall Street Overhaul Measure Moves Forward as Senate Votes to Limit Debate [Bloomberg]

$$$ “No matter how we slice all the chart data, there’s no reason for anyone to have any exposure to the long side of the stock market here,” said Walter Zimmerman, chief technical analyst at United-ICAP. “We have a serious unfolding debt crisis in Europe that very much looks capable of heading to a wave of sovereign-debt defaults.” [WSJ]

$$$ El-Erian Says S&P 500 Plunge May Worsen as Europe Crisis Threatens Growth [Bloomberg]

$$$ Naked Politics Are Wall Street’s Number One Enemy [Deal Journal]



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Source: Dealbreaker | 20 May 2010 | 3:45 pm

Roubini: Get Ready For The Double Dip!




Stocks to lose another 20 percent in value, according to The Doctor, who said we’re in for a “fiscal train wreck.”



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Source: Dealbreaker | 20 May 2010 | 3:36 pm

Budget 2010: Economy to get a shot in the arm

Both near-term and medium-term boosts to economic growth are forecast from the tax package at the heart of yesterday's Budget.The Treasury estimates that fiscal policy will be stimulatory to the tune of about 1 per cent of GDP...
Source: nzherald.co.nz - Business | 20 May 2010 | 3:30 pm

Senate Finance Bill: What's Done, What's Still To Come?

By Jacob Goldstein

The Senate just voted to end debate on its big finance-reform bill.

The key switch from yesterday -- when a vote to cut off debate failed -- was Republican Sen. Scott Brown, from Massachusetts.

Brown was concerned that provisions in the bill related to financial firms' investments could harm the mutual fund and insurance industries, which have a large presence in his home state. Harry Reid reportedly assured Brown that those industries would be exempted from certain rules in the bill.

The two Democrats who voted against cutting off debate yesterday because they thought the bill did not do enough to rein in the finance industry voted no again today.

A final vote on the bill could come as soon as tonight. But some substantive issues remain unresolved.

Before the final vote, the Senate is expected to vote on an amendment, proposed by Republican Sen. Sam Brownback, that would exempt auto dealers from the consumer finance agency created by the bill.

There is also likely to be a vote on second amendment, from Democratic Sens. Carl Levin and Jeff Merkley, that would ban banks from proprietary trading and from owning hedge funds or private-equity funds.

But because of some odd procedural rules (explained here), the Merkley-Levin amendment can only make it into the final bill if the Brownback amendment is approved.

That sets up a conflict for those senators (mainly Democrats) who support the Merkley-Levin amendment but oppose the Brownback amendment.

What's more, Sen. Chris Dodd could also make some changes to the bill in the "manager's amendment," which is the version of a bill that's introduced just before the final vote. The manager's amendment is supposed to be limited to technical fixes, but sometimes includes substantive changes.

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Source: NPR Blogs: Planet Money | 20 May 2010 | 3:28 pm

Expiring Options, Stock Selloff, Flight to Quality: TakingStock


Source: Bloomberg - All Podcasts | 20 May 2010 | 3:15 pm

Thailand Burns; Traders See Past Smoke (Global Recovery Watch)

Violence and civil unrest don't derail stocks or regional growth.



Source: SmartMoney.com | 20 May 2010 | 3:00 pm

How the major stock indexes fared on Thursday (AP)

AP - Stocks plunged again Thursday as more investors woke up to the possibility that economic problems such as Europe's debt crisis might spread around the world.
Source: Yahoo! News: Stock Markets News | 20 May 2010 | 2:56 pm

Big Drop Crushes ETFs and Indexes (Daily ETF Wrap-Up)

Another stock plunge hits most exchange-traded funds.



Source: SmartMoney.com | 20 May 2010 | 2:52 pm

Fiat Raised to `Buy,' Rockwell Cut to `Neutral': Audio


Source: Bloomberg - All Podcasts | 20 May 2010 | 2:43 pm

Congressman Pascrell Discusses Fed Audit, BP’s Gulf Spill: BLAW


Source: Bloomberg - All Podcasts | 20 May 2010 | 2:39 pm

Dell Fails To Impress (DELL, HPQ, AAPL)

Dell Inc. (NASDAQ: DELL) reported earnings after the close, and shares are retreating away from any endorsement of Dell over rival Hewlett-Packard Co. (NYSE: HPQ).  The PC-maker said earnings were 0.22 GAAP EPS but $0.30 non-GAAP EPS. Revenue was up 21% at $14.9 billion.  Thomson Reuters estimates were $0.27 EPS (non-GAAP) and $14.27 billion in [...]

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Source: 24/7 Wall St. | 20 May 2010 | 2:27 pm

Breathing Room for Large Banks (Market Update)

Investors could see upside in banks as financial reform stalls.



Source: SmartMoney.com | 20 May 2010 | 2:19 pm

Selloff Hits Stocks; Dow Falls 3.6% (Market Update)

Financials hit by reform vote; Dow drops 376 points. Europe's woes spread.



Source: SmartMoney.com | 20 May 2010 | 2:15 pm

Smaller bad loan provisions help boost US banks

US banks recorded their best quarterly profit in two years during the first three months of 2010 in part thanks to smaller provisions for bad loans, the Federal Deposit Insurance Corporation said
Source: Financial Times - US homepage | 20 May 2010 | 1:50 pm

SmartMoney 2010 Broker Survey (Magazine Cover)

As discount brokers battle over prices, who's tops in research and customer service?



Source: SmartMoney.com | 20 May 2010 | 1:19 pm

The Senator Who's Never Used An ATM

atm

Note: These men are not U.S. senators. (Paul Sakuma/AP)

By Jacob Goldstein

There are a bunch of proposed financial-reform amendments that haven't come up for a vote in the Senate. One of them would cap ATM fees at 50 cents.

A reporter from the Omaha World-Herald asked Ben Nelson, a senator from Nebraska, about the issue.

"I've never used an ATM, so I don't know what the fees are," Nelson said.

Nebraska's other senator, Mike Johanns, said he has used ATMs at most five times in his life.

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Source: NPR Blogs: Planet Money | 20 May 2010 | 1:10 pm

Ben Nelson Clueless About ATMs



Ok, so we can sort of understand the utter ignorance of many lawmakers about markets and modern finance in general. We can’t expect all of them to possess the kind of Maxine Watersesque encyclopedic knowledge of swap credit defaults and other complex derivatives.

But never using, and therefore by extension, not knowing how to use an ATM machine is just beyond dumb. I mean, how out of touch with reality do you need to be to still drive up to the bank teller, fill out a withdrawal slip and wait for the cash?

Just ask Democratic Sen. Ben Nelson.

Lawmakers walk past that ATM all the time on their way to votes on the Senate floor, but don’t expect to see Sen. Ben Nelson stopping to grab some quick cash. The Nebraska Democrat pleaded ignorance when asked this week whether Congress should cap ATM fees. Nelson said that while he’s no fan of unnecessary fees, he’s unfamiliar with the charges.

“I’ve never used an ATM, so I don’t know what the fees are,” Nelson said, adding that he gets his cash from bank tellers, just not automatic ones. “It’s true, I don’t know how to use one.

“But I could learn how to do it just like I’ve . . . I swipe to get my own gas, buy groceries. I know about the holograms.” By “holograms,” Nelson clarified that he meant the bar codes on products read by automatic scanners in the checkout lanes at stores such as Lowe’s and Menard’s.

“I go and get my own seating assignment on an airplane,” Nelson said. “I mean, I’m not without some skills. I just haven’t had the need to use an ATM.”

ATMs a Mystery to Senator [Omaha World Herald]



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Source: Dealbreaker | 20 May 2010 | 1:10 pm

Have a Plan for Your Financial Planner

Prevent market upheaval from straining your relationship with your planner.



Source: SmartMoney.com | 20 May 2010 | 12:29 pm

Dow tumbles more than 300 points (AFP)

Traders work on the floor of the New York Stock Exchange on May 17. US stocks slumped Thursday on European debt concerns and bearish US economic data, with the Dow index tumbling more than three percent for its biggest drop in more than a year.(AFP/Getty Images/File/Spencer Platt)AFP - US stocks slumped Wednesday on European debt and US unemployment concerns as well as fears that the American recovery could be losing steam, with the blue-chip Dow index tumbling more than 300 points.



Source: Yahoo! News: Stock Markets News | 20 May 2010 | 12:09 pm

Lobbyists demand some respect

The American League of Lobbyists is ponying up $25,000 to start a PR campaign. Brett Neely reports.
Source: Marketplace | 20 May 2010 | 12:02 pm

Oil Drop’s Real Losers: Alternative Energy Stocks (TAN, PBW, LDK, ESLR, JASO, CSIQ, AKNS, HOKU, ZOLT, FCEL, CPST, AMSC)

Oil has fallen off the proverbial cliff into the roll date and as the concerns that the eurozone’s weakness is going to spread enough to really hurt the recovery of the global oil demand.  And then there is the de-risk trade taking place where traders and investors are taking money out of riskier assets.  The [...]

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Source: 24/7 Wall St. | 20 May 2010 | 12:02 pm

California cities join forces

Professor Jefferey Sellers from the University of Southern California talks with Tess Vigeland about how the recession has led some California cities to consider sharing services and programs.
Source: Marketplace | 20 May 2010 | 12:01 pm

Thank the recession for busy start-ups

Mitchell Hartman talks to Tess Vigeland about a report today from the Kauffman Foundation that suggests the recession helped breed an especially industrious group of entrepreneurs.
Source: Marketplace | 20 May 2010 | 12:01 pm

EPA says, 'Use a less toxic cure for spill'

The Environmental Protection Agency said today that BP has to start using a less toxic form of chemical dispersant to break up that big oil spill in the Gulf of Mexico. Rob Schmitz reports.
Source: Marketplace | 20 May 2010 | 12:01 pm

Banks, get your reserves up!

The financial overhaul bill imposes tough capital requirements on big banks, but the Treasury Department and the Federal Reserve, among others, are opposed. John Dimsdale talks with Tess Vigeland about the latest regarding the financial overhaul bill.
Source: Marketplace | 20 May 2010 | 12:01 pm

Are U.S. shoppers over frugality?

Luxury stores are reporting a sizable jump in profits, and they're hopeful it shows American consumers are more willing to buy -- not just what they need, but what they want. Bob Moon reports.
Source: Marketplace | 20 May 2010 | 12:01 pm

Ackman, Redeker, Carey, Resler, Wilmott, Clifton: Surveillance


Source: Bloomberg - All Podcasts | 20 May 2010 | 11:49 am

The Scatological Rumor Going Around RBS For Why They Lost Power On The Stamford Trading Floor



I mean…

“Trading floor over here lost power temporarily (I think computers and phones only) for about ten minutes. Rumor is someone clogged a toilet on 7th floor and it leaked into some communications closet on 6th floor (trading). They haven’t confirmed but that seems to be the persistent belief.”

If only CNBC were broadcasting from there live today, Steve Liesman could confirm! (And maybe lend a hand. I don’t know why, but SL seems like a guy who travels with his own plunger.)



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Source: Dealbreaker | 20 May 2010 | 11:46 am

Tax on Carried Interest Moving Closer to Reality



A new proposal to tax carried interest as ordinary income was just attached to a larger tax and spending bill that could be voted on by the House as early as tomorrow.

The bill would have a huge impact on private equity, venture capital and other private partnerships that rely on carried interest as their main source of income. The move would also impact some hedge funds that pay significant long-term capital gains. Washington has been toying with the tax increase for nearly three years, but the the current bill, sponsored by Sen. Max Baucus and Rep. Sander Levin, marks the first time the Senate and the House have come together on the issue.

Venture capital firms, real estate and energy partnerships have lobbied hard to be excluded from the tax increase, arguing that it will hurt start-ups looking to raise capital. But that effort has seemed to fail.

A summary of the bill, cited by Bloomberg, said it would allow carried interest that reflects return on invested capital to continue to be taxed at the lower capital gains rates. For other funds, “the bill would require investment fund managers to treat 75 percent of the remaining carried interest as ordinary income,” the summary said.

One only has to look at KKR’s latest S-1 filing to understand how significant the tax increase will be.

If the changes suggested by the administration or any of the proposed legislation or similar legislation were adopted, income attributable to carried interest may not meet the qualifying income requirements under the publicly traded partnership rules, and, therefore, we could either be precluded from qualifying as a partnership for U.S. federal income tax purpose or be required to hold interests in entities earning such income through a taxable U.S. corporation. If we were taxed as a corporation, our effective tax rate would increase significantly. The federal statutory rate for corporations is currently 35%. In addition, we would likely be subject to increased state and local taxes. Therefore, if any such legislation or similar legislation were to be enacted and apply to us, it would materially increase our tax liability, which could well result in a reduction in the market price of our common units.

In addition, if the proposed legislation is adopted, it could increase the amount of tax KKR’s principals and other professionals would be required to pay, thereby adversely affecting KKR’s ability to offer attractive incentive opportunities for key personnel.



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Source: Dealbreaker | 20 May 2010 | 11:31 am

Presented By:


Source: Dealbreaker | 20 May 2010 | 11:31 am

WaMu, Barcalounger: Bloomberg Law Bankruptcy Review


Source: Bloomberg - All Podcasts | 20 May 2010 | 11:16 am

Should MBAs Take An Ethics Oath?

By Jacob Goldstein

The push for MBAs to take an ethics pledge (akin to doctors' Hippocratic Oath) is back in the news.

Nitin Nohria, the Harvard Business School ethics professor whose 2008 article gave a big boost to the idea, was recently named dean of HBS.

Bloomberg News has a piece up on the oath today, and the Boston Globe had an article this weekend. Planet Money talked last year with one the Harvard MBA students who has been pushing the oath; here's the full text.

One representative line says, "I ... will not advance my personal interests at the expense of my enterprise or society."

So here's the debate: Is this oath only a superficial measure that masks the need for real reform? Or could the oath actually change the MBA culture (even a little) and make executives more likely to behave in an ethical manner?

Planet Money Question of the Day: Should MBAs take an ethics oath?

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Source: NPR Blogs: Planet Money | 20 May 2010 | 10:37 am

Will the Swiss Stabilize the Euro?



The euro keeps diving to new lows and currency traders are hoping someone, (perhaps the Swiss) will step in to stop the bleeding.

Rumors that the Swiss will move to stabilize the currency have stemmed the tide for now. The euro dropped to $1.2176 against the dollar yesterday, a new low, but has bounced back to around $1.2342 in today’s trading.

Nicolas Haymoz, a spokesman for the Swiss central bank, declined to comment on currency market developments. The bank has said in the past that it would act to prevent any excessive appreciation of the Swiss franc.

“There is a lot of speculation that there is a concerted effort to put a floor into the value of the euro,” said Tom di Galoma, the United States head of fixed-income rates trading at Guggenheim Partners. But the decline in stocks reflected “a lack of confidence in the overall plan.”

He added, “I think the longer-term view is that the euro goes lower.”

Shares Fall as Germany Moves to Restrict Trades [NYT]




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Source: Dealbreaker | 20 May 2010 | 10:22 am

Where You Can Get Drunk Downtown After Putting In 30 Minutes Of Work



This should be you.

True or false: the one thing the financial services industry could really use right now is a good buzz? True. And while happy hours and the boozy lunch are always a good idea, you know what would be even better? For you to get hammered at the start of the day, after putting in like 30-60 minutes of work or maybe even on the way to the office. Would add a new and exciting twist to things, amiright? You know I am. To assist you in this pursuit, one NYDrinker has compiled a list of drinking establishments downtown that open at 8AM, though you probably know them all already, Lloyd.



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Source: Dealbreaker | 20 May 2010 | 10:20 am

High-frequency focus in ‘flash crash’ enquiry

Regulators told a Senate committee hearing that they were closely examining the role of high speed computer programs in the market turmoil this month, known as the “flash crash”
Source: Financial Times - US homepage | 20 May 2010 | 10:16 am

Unfounded Rumor Of The Morning: Booz And Co.



“Booz & Company is going to launch a  large PE fund later this year.”

“This is from very senior, internal sources at the firm. It’s happening later this year, sometime in 2010, probably fall. They’ve already trademarked the name ‘Booz Capital’ (and grabbed a domain– boozcapital.com redirects to the Booz & Co website). Heard the first fund will be $1b+ and that a lot of the partners plan to put in cash. There are over 200 of them– most agreeing to kick in a couple million and some are throwing in 8 figure amounts. Apparently the plan is to raid employees from top bulge brackets and other megafunds.”

A spokesman for Booz and Company said he had “no information to pass on,” so who knows! It’s all relative.



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Source: Dealbreaker | 20 May 2010 | 10:15 am

Harvard Business School Graduates Continuing Year Old Oath-Taking Tradition



Saving Goldman Sachs

Last May, a bunch of HBS grads got together and decided to take an “MBA Oath,” promising not to do anything wrong once they were released into the world. They put a condensed version on little laminated cards to keep in their back pockets as a quick reference in case they ran into a situation that offered them the opportunity to lie, cheat, steal or short their the individual mortgages of down-on-their-luck friends in the Hamptons, and weren’t sure how to proceed. They also posed with said cards in the New York Times, looking like the members of a Christian rock band, so you knew it was serious. And yet…we still kind of thought it was just a phase, something they’d grow out of. Such is not the case! This year’s HBS grads are still feeling the need to sign a sheet of paper that says they promise to be good and not just that but they’re really kicking things up a notch with bold claims such as the following:

If Goldman Sachs’s leadership had followed the oath’s tenets, the company may not have entered into agreements to sell mortgage-backed securities that another client, New York investment company Paulson & Co., was betting against, said Khurana, the Harvard professor who worked with students in drafting the oath.

“For me, it was a stake in the ground, to say here are my values, here’s what I believe in,” said Estrada, who plans to work as an investment manager for Goldman Sachs in Seattle. “When I have a tough decision, I want to be in a position where I have my own personal oath.”

Unfortunately, at this time, Lucas van Praag cannot speak freely re: what he really thinks of all this, as he is on a time out. This guy’s got time and no one holding him back though:

The pledge is “well meaning but in the end, very mushy and not well thought out,” said Steven Kaplan, a professor of entrepreneurship and finance at the University of Chicago Booth School of Business.

Goldman Harvard Recruit Pledges to Do No Harm, Fights for Oath [Bloomberg]



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Source: Dealbreaker | 20 May 2010 | 9:04 am

`Buffett & Me': Bloomberg Markets Cover Story


Source: Bloomberg - All Podcasts | 20 May 2010 | 8:27 am

ETFs Accounted for 70% of Cancelled Trades, Study Finds: Audio


Source: Bloomberg - All Podcasts | 20 May 2010 | 8:16 am

Fast-Food Industry Suggestion: Please Try The Chicken!

By Jacob Goldstein

Even with inflation ultralow, some prices are rising. The price of 50%-lean beef, for example, is up 32% from last year, with both domestic production and imports down.

That's cutting into fast-food restaurants' profits, and some are pushing customers to try stuff other than burgers, the WSJ reports this morning.

"We do factor in the commodity costs," the CEO of Jack in the Box, which is promoting ham and turkey sandwiches, said. New promotions are "margin friendly and actually have a lower food cost."

Wendy's, which was famous a million years ago for its "Where's the Beef?" ads, is pushing wings and getting ready to roll out a new line of salads. Sonic is bringing out foot-long hot dogs and Burger King is going with pork ribs, the WSJ says.

Meanwhile, the restaurants aren't raising prices on their burgers. And some store-owners are complainng.

The CEO of Burger King's largest franchisee said recently that selling double cheeseburgers for $1 "contributed to a significant erosion in profits," according to the WSJ. "The essence of it is that we're promoting the wrong product," he said.

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Source: NPR Blogs: Planet Money | 20 May 2010 | 8:03 am

Pulling Profits Out of Carbon Capture: An Interview

What will the power plants of the future look like? The same old coal chuggers, but with carbon sequestration units attached? Pebble bed nuclear reactors? Acres of windmill generators?

Mantra Energy has something different in mind. Their patented technology, electro-reduction of carbon dioxide (ERC), allows factories to capture carbon dioxide. Once captured, the carbon combines with water to produce chemicals that energy plants can sell for profit.

If Mantra succeeds, the energy industry will go hybrid in more than one way.

Currently, factories can produce formate and formic acid using Mantra technology, but the company has more chemicals on the horizon. By innovating a vertical market, Mantra hopes to make carbon capture pay off in a new way.

We spoke with John Russell, Mantra’s VP of Technology Evaluation, to learn more about Mantra’s technology, how big energy companies will scale carbon capture, and what the competition looks like in the evolving carbon capture space.

BP: I’ve read that carbon capture sequestration (CCS) actually increases the cost of energy from a power plant. Could you tell me a little bit about that?

The first answer is yes, carbon dioxide is a major cost of CCS. The numbers from IEA (International Energy Association) and some of the major European engineering firms indicate that utilities will have to make massive capital investments to meet the needs of CCS, because a lot of power goes into it. Operating costs will be up, and they estimate that the cost of power to consumers will go up by 30%.

We don’t expect the cost of carbon capture to be a large part of our ERC system. ERC is not carbon capture, it is a different technology. Mantra is developing new technology in which it expects to capture CO2 at minimal cost. We are predicting for ourselves, for our own technology, that carbon capture will be a modest cost.


Image: adamsofen/Flickr

BP: Who are you ultimately planning on selling most of your ERC systems to?

That’s a fairly profound question. The answer comes in bits of pieces.

Initially, our ERC systems will go into demonstration projects, into smaller projects. These will be installed around the world as our technology gets known and as carbon reduction, carbon recycling, starts to bite.

These customers are going to be looking to the future. They’re not interested specifically in a demonstration, but in where that demonstration can end up. They’re going to be looking to build an ERC plant incrementally. They are in the process of arranging government support and internal finance, looking at what competitors are doing. As we see it, each demo will mark the very high probability of a future large sale.

The small commercial systems will follow. These are, say, 100 tons/day of formic acid production. These small commercial systems will provide the proof of the practicality and the economics of ERC. They will be designed to impress the general public, and government regulators, and customers will see that return on their investment.

This is very very very different from CCS, which is literally money down the hole.

Now, we move on to the large systems, a little further into the future. We expect to be building systems of 500 tons a day and larger as customers demand.

The decisionmaking process at this point gets political and economic.

Major emitters, we’re talking about the major emitters around the world, will emit depending on complex factors, like the regulatory climate that they see upcoming. They have to read the political climate and where it’s going.

They will be looking at the availability of federal subsidies and where they’re going. Governments will, I think, everywhere they’re serious, put wheels under it by arranging a subsidy of some sort. And they’ll also be calculating, company by company, what sort of economic return they can receive for themselves using the ERC system. They’ll also be looking over their shoulders at the pioneers, and asking themselves how they fare.

Once you get out that far, there are going to be very few companies and very few industries in the world that are going to be outside the market for Mantra’s ERC. Anywhere you’ve got a major emitter, it’s hard to imagine they’re not going to be under the kind of political and growing economic pressure that you already see in places like Europe. I think the industry leaders, the people to first adopt our technology, however, will tend to be found in the EU and the US.


Image: rady one/Flickr

BP: Since, ultimately, the volume of units that you sell has a lot to do with what governments and regulators want, are you doing anything to build connections with governments?

We’re a very small company. We’re a very new company. We don’t have those sorts of high level contacts today. We clearly understand that.

The way we’re going around that is to develop relationships with major companies who have those sorts of talents (Ed.: Mantra has already developed a relationship with 3M).

Think of the big companies in the US. They don’t get out of bed in the morning without thinking “how are we with Washington today?” We will work with companies like that.

BP: What makes you better than the competition?

Look at what’s been happening recently. The cost of energy has gone up the last two years. Most companies who have been thinking about this are already long down the road of saving energy and becoming more efficient. There are either only minor efficiencies left to get, or more efficiency will come to them at greater and greater cost.

Now, in terms of direct competition, the most obvious competitor we’ve got is CCS. Compared to ERC, we are profitable as compared to costly. We put out valuable products, CCS doesn’t. ERC is safe and immediately controllable; CCS, eh, there are questions about that.

ERC can be started small, really small, whereas CCS, logically, it has to be done big. By European projections, CCS costs a billion dollars and above—well above. Probably a billion and a half above based on what the EU is projecting. That’s a pricey first step.

ERC is an established industrial process. It’s based on electrochemistry. There’s nothing unknown about electrochemistry, other then of course the details of what we do. You can go out, get authorization for it, and build a plant today.

For CCS, there isn’t a legal and regulatory structure written for it, as far as I understand, anywhere in the world today. They’re working towards it, and it’s still open there are questions.

There are some parts of the world, and I name India and Scotland here, that are convinced that CCS is not practical.

There are other examples of carbon recycling. Maybe the best known one today would be Calera. It’s an interesting technology, but as far as I can see, it’s fixed. It makes one product.

The ERC system is capable of development. Because it’s an electrochemical basis, more can be done with it. Eventually, we’ll make a number of products. It’s a more broadly capable platform, if you will. We forecast that we’ll be more broadly profitable in the long run.

BP: The concept of energy companies selling a lot of chemicals on the side is new to me. Are setting up a new market model?

It’s new. If you go to the standard power plant, the standard utility, you’ll find big piles of coal and they make power. They sell electrical energy. They pretty well universally stick to their knitting. They’ve got no reason to do other complex things. They focus.

Now, there’s a real revolution having to go on here. It is on each of the major emitters, like power utilities. They now have to think beyond their core business, and they have to think about what they’re going to do with regards to CO2. They can either pay a massive amount of money into a project like CCS, or they can look for some other way to do it.

If they’re offered an approach that is more economical, that meets their requirement of doing something about emissions and also makes them money, we feel that they’ll be attracted to that. That puts them into a chemicals industry, into producing formic acid.

We will try to make it as painless as possible for them by arranging off-take licenses. They’ll make chemicals, but they don’t have to have a sales group go out and sell them. They don’t have to worry about what the market’s doing today in terms of what they’re making. There’s a group arriving at the door to take it away for them and paying them a fixed price.

But it is a new business model, if you will.

BP: That’s certainly an interesting proposition.

It’s an interesting idea. If you look down into it, my concept of the revolution that’s happening is that the last big shift in the handling of money was back in the 16th century, when we discovered double-entry bookkeeping. I believe it was a monk who discovered that. Today, we’ve always had two columns. Now we’ve got a third column. It reads carbon.

That’s a big shift in the way we think about things. When the board meets in mega-industry, it’s no longer simply how much, what return. The question attached to it is what emissions, and what do we do about it?

Learn more about Mantra Energy at their website, MantraEnergy.com.



Source: Business Pundit | 20 May 2010 | 7:59 am

UBS's Yu on Euro, Dixon on Greek Debt: First Word


Source: Bloomberg - All Podcasts | 20 May 2010 | 7:43 am

Could Doping Be Effectively Legalized, Regulated?


One way to be against doping: Dopers Suck coffee.

After 8 years of keeping his doping a secret, Floyd Landis, who won the 2006 Tour de France, confessed to taking performance-enhancing drugs. He also accused US racers Lance Armstrong, George Hincapie, Levi Leipheimer, and Dave Zabriskie of doping. The New York Times reports:

After four years of maintaining his innocence about doping charges that ruined his reputation and caused him to be stripped of his 2006 Tour de France title, the American cyclist Floyd Landis has sent e-mail messages to several cycling officials in the United States and in Europe in which he admits using performance-enhancing drugs for most of his career.

Two of those officials said that Landis’s messages provided a detailed description of doping that began in 2002, Landis’s first year alongside then-teammate Lance Armstrong. Both were riding for the successful but now-defunct United States Postal Service team.

Landis provided detailed information about his own doping practices, saying he consistently used the blood-booster EPO to increase his endurance, testosterone, human growth hormone and blood transfusions. He spent $90,000 a year on his doping regimen, he said.

Doping regimens were encouraged by some team officials, including Johan Bruyneel, the longtime Postal Service team manager and current head of Armstrong’s RadioShack team, Landis wrote…Landis said that Bruyneel, his team manager on the Postal Service team, introduced him to the use of steroid patches, blood doping and human growth hormone, according to officials who received the e-mail. Landis also said that in 2003, after breaking his hip, he had stored bags of blood in Armstrong’s apartment in Girona, Spain. He said that his blood was stored in a refrigerator, along with bags of blood belonging to Hincapie and Armstrong.

Landis, who went as far as to write a book and appear on Larry King Live claiming his innocence, said he had to clear his conscience, according to the Times.

I was lucky enough to be at the Tour de France in 2005. One thing I remember clearly was that although doping wasn’t openly talked about, it was known that everybody did it. Kind of like steroids in bodybuilding–everybody does it, it’s a known practice, but they deny it when publicly asked about it.

Anti-doping agencies spend God knows what enforcing doping laws every year, but it doesn’t seem to be doing much good. That’s true for many sports, not just cycling. What if we admitted to our enforcement failures, and just legalized and regulated everything? G. Pascal Zachary comments on that idea in Wired:

The Greeks had their gods and heroes. Twelfth-century Frenchmen celebrated dragon-slaying knights. We moderns have sports heroes. Friedrich Nietzsche explained it all in 1883: Every culture needs the uebermensch (“over-man”) to make lesser mortals – the rest of us – feel pride in our shared humanity.

…nature isn’t keeping up with the demand for superathletes. With the explosion of professional and Olympic sports, we now need squadrons of hyper-evolved stars. Predictably, science and technology have stepped in to fill this need with everything from designer steroids to beta-blockers. It’s time to face the obvious implication: Athletes should be permitted to use performance enhancers, so long as the users are monitored for safety.

…the sporting world must ultimately accept that the distinctions between doping and nutritional supplements, illegal enhancements and scientific training, no longer exist. Elite sports are already thoroughly enmeshed in a laboratory world of pharmaceuticals, medicine, and high tech nutrition. Any athlete who wants a banned drug can get it. And as we’ve seen repeatedly, designer drugs coevolve with tests, staying one step ahead of authorities and allowing savvy athletes to juice unnoticed.

Imagine a world where performance enhancement was open and regulated. Instead of forcing athletes to sneak through back alleys to stay competitive, sports authorities should admit that drugs are essential – then help athletes cope with the side effects. Once legalized, drug use would still have limits, but they would be established by physicians and athletes – based on their ability to handle performance enhancers. Bad outcomes would be far less frequent if players were not forced to rely on quacks (such as the former Tower of Power bassist at the center of the baseball designer steroid scandal). Innovation in performance enhancers would accelerate in the light of day. There might even be spinoff applications that would benefit you and me.

Zachary also suggests creating one league for doped-up athletes, and another for athletes who don’t dope. Given the massive amount of funds, time, and energy spent trying to regulate (and avoid charges of) doping, I think the idea of legalizing and regulating is seriously worth entertaining.



Source: Business Pundit | 20 May 2010 | 7:32 am

Demystifying Swiss Bank Accounts

Money.co.uk has a neat infographic on Swiss bank accounts. There’s some serious money going through them.



Source: Business Pundit | 20 May 2010 | 7:21 am

Renegade Dems Want Bank Breakup

By Jacob Goldstein

A vote to end debate on the Senate's finance-reform bill failed yesterday. Almost all of the Democrats in the Senate voted in favor of the motion. But two opposed it: Maria Cantwell and Russ Feingold.

Both Senators want to re-instate a Depression-era rule that separates commercial and investment banks. Doing that would mean the break-up of some of the nation's biggest banks.

"We need to eliminate the risk posed to our economy by 'too big to fail' financial firms and to reinstate the protective firewalls between Main Street banks and Wall Street firms," Feingold said in a statement yesterday.

The statement also noted that Feingold was one of eight Senators who in 1999 voted against the repeal of Glass-Steagall, the law that separated investment and commercial banking. (Investment banks are Wall Street firms that underwrite stocks and bonds and advise companies on acquisitions; commercial banks make loans and take deposits.)

Maria Cantwell, the other Dem who voted no yesterday, is the co-sponsor of an amendment that "restores safeguards modeled after the 1933 Glass-Steagall Act." That amendment was never brought to the Senate floor for an up-or-down vote.

But despite yesterday's vote, the re-instatement of Glass-Steagall remains unlikely. Big banks say they need to be big to compete in the global economy, and that big corporate customers want a bank that can provide multiple services. Most Senators seem to support this argument.

And even Cantwell said in a statement yesterday that, while she would like a vote on her amendment, it was not her "primary concern."

The more important issue for Cantwell is a separate amendment that would tighten the rules on trading of derivatives. That amendment has also not been brought to the floor for an up-or-down vote. (For more on derivatives reform, see this post from yesterday.

The final vote yesterday was 57-42 (60 votes are needed to cut off debate). Harry Reid changed his vote to "no" at the last minute, a procedural move that allows him to call another vote on the issue.

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Source: NPR Blogs: Planet Money | 20 May 2010 | 7:20 am

A Street That Lives Up to its Name



Source: Business Pundit | 20 May 2010 | 4:56 am