Monday June 23 Housing and Economic stories

Top Stories:

BofA, Perhaps Countrywide Wrote Dodd-Shelby Bailout - (www.ml-implode.com) - The National Review Online has obtained an internal 61 page document on Bank of America letterhead dated March 11th that matches the Dodd-Shelby Bill almost identically. First, we find out that Dodd is a Countrywide "insider" but is so ignorant he didn't read his loan papers to know he got a "deal." Now, we find out that BofA, who is supposed to be closing on their Countrywide purchase in the next few months, wrote the Bill for him. If this Bill passes, BofA's Countrywide buyout is much more palatable and the $60+ billion in toxic loans are mostly covered.
White House threatens to veto secret bank bailout - (www.usatoday.com)
Vin Baker -- Foreclosure on Former NBA Star's Mansion - (www.ml-implode.com) - In this latest installment of "Celebrity Foreclosures" we hear of former NBA star Vin Baker's ongoing financial woes.
Banks Trimming Limits for Many on Credit Cards - (www.nytimes.com) - After fostering the explosive growth of consumer debt in recent years, financial companies are reducing the credit limits on cards held by millions of Americans, often without warning.
Banks that issue cards like Visa and MasterCard, as well as the American Express Company, are cutting the limits for customers who have run up big debts, live in areas that have been hit hard by the housing crisis or work for themselves in troubled industries.
Ford and GM financial arms may incur writedowns: Lehman - (www.reuters.com) Ford Motor Co's (F.N: Quote, Profile, Research, Stock Buzz) and General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) financial arms may need to write down $1.1 billion and $1.5 billion, respectively, said a Lehman Brothers analyst, who expects U.S. auto credit to be pressured by a weakening used-car market.
MBIA Says It May Be Forced to Make $7.4 Billion in Payments - (www.bloomberg.com)
Economy has some states tangled in 'dire' financial snares - (www.usatoday.com) The nation's weak economy has landed some big states in a desperate struggle to balance their budgets before July 1 when their new fiscal years begin.
Arizona, California, New Jersey, Nevada and Pennsylvania are among states that must slash spending or raise taxes to straighten out their finances. Nevada Gov. Jim Gibbons, a Republican, plans to call a special session of the Legislature next week to find a last-minute solution to a budget shortfall approaching $1 billion. California is outspending revenue by $1 billion a month yet is nowhere near settling on a budget due in 10 days. Republican Gov. Arnold Schwarzenegger and the Democratic Legislature are far apart on what to do.
White House veto threat to housing law - (www.ft.com) The White House said it approved of certain provisions, such as a plan to create a new, stricter regulator for Fannie Mae (NYSE:FNM) and Freddie Mac, the government-sponsored mortgage companies.
But it was opposed to other elements such as a $4bn allowance for local governments to buy foreclosed properties and the diversion of funds from Fannie Mae and Freddie Mac to pay for up to $300bn in guarantees for mortgages refinanced to reflect lower home values.
Evergreen Liquidating Ultra-Short Fund After 18% Drop - (www.ml-implode.com) Evergreen Investments, the money- management unit of Wachovia Corp., plans to liquidate a $403 million fund with almost three quarters of its assets in mortgage-backed securities after it fell 18 percent this month."
FBI holds 406 for mortgage fraud - (news.bbc.co.uk)
But only 2 charged on Wall Street. Funny... - (biz.yahoo.com)
Fallout From Bad Loans Rocks Regional Banks - (www.nytimes.com)


Other Stories:

Renters sitting prettier amid house-market upheaval - (www.latimes.com)
Hundreds swept up in mortgage fraud arrests - (biz.yahoo.com)
Ex-Bear Stearns Managers Arrested on Fraud Charges - (www.nysun.com)
Banks Closed Till Further Notice - (Mike Morgan at realestateandhousing2.blogspot.com)

Big Oil's Iraq Payoff: Exxon Mobil, Shell, Total and BP � the original partners in the Iraq Petroleum Company � are in talks for no-bid contracts to service Iraq's largest fields - (www.nytimes.com)
FISA Bill Eviscerates the Fourth Amendment - (www.rawstory.com)
Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government - (www.freedomworks.org)
Midwest Flooding will Inflate Grocery Bills Across the Board - (www.desmoinesregister.com)
Rising mortgage rates add to housing woes - (news.yahoo.com)
Median house price in California drops 30% in May - (www.latimes.com)
SF Bay Area house prices fall by 22% - (www.dailynews.com)
Ex Bear Stearns Managers Indicted for Fraud - (www.bloomberg.com)
Central Bank Has Lost Control of Credit Crisis - (www.dailyreckoning.com.au)
Wealthy Investors Shift Funds From Global Banks to Reduce Risks - (bloomberg.com)
Economist slams government targets on house ownership - (www.building.co.uk)
Killing the Comps - (www.viewfromsiliconvalley.com)
D.C. Region's Foreclosure Rate Soars - (www.washingtonpost.com)

S&P Slashes BofA to a Sell - Thanks Countrywide! - (www.ml-implode.com) - S&P slashes BofA to a sell reducing their price target to $24. They cite “worries over the mortgage portfolio the bank will inhe...
Foreclosure Tour Hits Manhattan - (www.ml-implode.com) - Foreclosure Hits Everywhere- a video
Zero Down, Zero Closing– Restrictions - (www.ml-implode.com) - " "I can’t believe these zero down, zero closing things are still around",Like some of those cheap airline fares however, this p...
Rescap Update: Consolidation/Layoffs at Homecomings - (www.ml-implode.com)
Fremont Files BK to Facilitate Acquisition by CapitalSource - (uk.reuters.com) Fremont General Corp FMNT.PK, a U.S. financial services holding company, said on Wednesday it had filed for bankruptcy protection in order to facilitate the sale of assets of its thrift unit. What remains of Freemont Investment & Loan will become CapitalSource Bank
Commercial Real Estate Bust - (www.ml-implode.com)
Chris Thornberg: Possible 50% House Price Declines in SoCal - (www.ml-implode.com)
Fed's tough inflation talk hits housing - (biz.yahoo.com)
The Entire Subprime Market Is Toast - (blogs.wsj.com)
Screams For More Fed Authority Get Louder - (Mish at globaleconomicanalysis.blogspot.com)
BankUnited imploding - (optionarmageddon.ml-implode.com)
CapitalSource Takes it to the Bank - (www.ml-implode.com)
Renters sitting prettier amid house-market upheaval - (www.ml-implode.com)
Down 13 Points, 4:00 to Go - (www.ml-implode.com)
Quicken Loans Cuts 250 Jobs - (www.ml-implode.com)

Travelers Shift to Rail as Cost of Fuel Rises - (www.nytimes.com)
Price Increases Put Pressure on the Fed - (www.nytimes.com)
New Evidence of Inflation Vexes Central Banks - (online.wsj.com)
States Feel the Pinch From U.S. Slowdown - (online.wsj.com)
California, Florida Had Biggest Job Losses in May, Labor Says - (www.bloomberg.com)
California's unemployment rate rises to 6.8 pct - (www.businessweek.com)
In weak economy, forgoing $4 lattes for home brews - (www.chicagotribune.com)
White House: Fed needs new powers - (www.philly.com)
States spending plummets as revenue comes up short - (www.signonsandiego.com) Spending by states in the coming fiscal year will plummet as revenues continue to come up short and expenses like health care and employee pensions continue to mount, according to a report released Thursday.
Americans reduce driving 1.4 billion miles - (www.startribune.com)

Why Is Oil So High? Pick a View - (www.nytimes.com)
Oil Summit to Take on Speculators - (online.wsj.com)
Bond Insurers Inflict Further Pain on the Market - (online.wsj.com)
FBI eyes big business in mortgage fraud probe - (www.ft.com)
A Question of Value - (www.nytimes.com)
Short Selling on NYSE Sets Record - (online.wsj.com)
Hedge fund launches at eight-year low - (www.ft.com)
CBOE seat goes for record $3.3 million - (www.chicagotribune.com)


Ford Delays New Pickup and Reduces Production - (www.nytimes.com)
GM, Ford, Chrysler Credit Ratings May Be Cut by S&P - (www.bloomberg.com) S&P placed the carmakers' credit ratings, already five levels below investment grade, on CreditWatch negative, according to a statement today. New York-based S&P, a unit of McGraw-Hill Cos., said it may also downgrade their financing arms. While the carmakers will be able to pay their debts this year, their cash may shrink to ``undesirable levels'' by the end of 2009, S&P said.
Citi warns of further large writedowns - (www.ft.com)
Circuit City posts wider fiscal first-quarter loss - (www.latimes.com)
GM to halt major overhaul of pickups, SUVs - (www.signonsandiego.com)
Bear Stearns Fund Prosecutors Reveal `Lot of Evidence' of Fraud - (www.bloomberg.com)
High Fuel Costs Are Squeezing Low Air Fares - (www.nytimes.com)
United, Continental ally to fight fuel costs - (www.chicagotribune.com)
IKEA feels impact of housing slowdown - (www.chicagotribune.com)

Inflation and protests create economic storm - (www.ft.com)
India, China Face Accelerating Inflation, Higher Rates on Fuel - (www.bloomberg.com)
China to raise fuel, electricity prices; global oil market takes notice - (www.latimes.com)
India's inflation jumps to 13-year high - (www.ap.com)


Day of the dollar: A global connection - (www.latimes.com)
The Saga of Bear's Fund Chiefs - (online.wsj.com)