Saturday October 1 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

French bank downgrade is latest blow to Europe - (money.cnn.com) Underscoring the uncertainty about Europe's financial system, two major French banks -- Societe Generale and Credit Agricole -- were downgraded Wednesday due to their exposure to the debt of Greece and other weak eurozone nations. The move by Moody's Investors Service wasn't a complete shock to the markets, since the ratings firm had placed SocGen, Credit Agricole and BNP Paribas on review on June 15. BNP remains under review. European markets, beaten down in recent months by concern about the impact of the debt crisis in Greece and several other nations, rebounded on the news. London's FTSE 100 (UKX), the DAX (DAX) in Frankfurt and the CAC 40 (CAC40) in Paris all rose by at least 1%. Moody's downgraded Societe Generale's long-term ratings by one notch to Aa3, with a negative outlook. The rating agency said that its downgrade reflects "the potentially persistent fragility in the bank financing markets." The rating agency said that SocGen could "absorb potential losses it is likely to incur over time on its Greek government bonds," even if the bond creditworthiness of two other nations, Ireland and Portugal, were to "deteriorate further."

Europe's banks are staring into the abyss - (www.telegraph.co.uk) Where now for European banks? Sir Howard Davies, former chairman of Britain's Financial Services Authority, said on BBC Radio's Today programme on Tuesday morning that he thought the French government was only days away from having to recapitalise the country's banking system for a second time. It's hard to disagree. The panic seems to have been temporarily stemmed by a statement from BNP Paribas to the effect that it wasn't having the problems widely reported of finding dollar funding. There was also an emphatic denial of discussions over state intervention. But no-one is kidding themselves. Italy had to pay the highest spread since joining the euro to sell its bonds on Tuesday. There are growing fears over whether Europe's largest borrower can stay the course. The eurozone sovereign debt crisis is meanwhile exacting a devastating toll on the European banking system as a whole, the UK included. With their high exposure to eurozone debt, the problem is particularly acute for the French banking goliaths, BNP Paribas and Societe Generale.

More than 22% of mortgages still underwater - (www.housingwire.com) Nearly 11 million properties, roughly 22.5% of all U.S. homes, were worth less than the underlying mortgage in the second quarter, according to CoreLogic. The percentage of properties in negative equity declined slightly from 22.7% the previous quarter and down from 24% one year ago. Another 2.4 million borrowers held less than 5% equity in their home, what analysts call near-negative equity. CoreLogic also showed nearly three-quarters of all underwater borrowers are paying above-market interest on their home loans. "High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery," said Mark Fleming, CoreLogic chief economist.

5 Central Banks Move to Supply Cash to Europe - (www.nytimes.com) Worried that Europe’s debt impasse posed a growing threat to the global financial system, the world’s major central banks moved Thursday to assure that European banks would not run short of cash as troubled nations like Greece and Italy sought to stabilize their economies. The central banks, in a coordinated action intended to restore market confidence, agreed to pump United States dollars into the European banking system in the first such show of force in more than a year. Some banks have found it hard to borrow dollars as American lenders grew nervous about their financial condition. Thursday’s action, coming almost exactly three years after the collapse of the investment bank Lehman Brothers, lifted global stock markets, sharply increasing the value of shares in banks heavily exposed to debt from Greece and the other struggling members of the euro zone. The euro, which had been falling in recent days, rebounded.

Goldman Sachs Shuts Global Alpha Fund - (www.bloomberg.com) Goldman Sachs Group Inc. (GS), the fifth-biggest U.S. bank by assets, will shut its Global Alpha fund after clients pulled money from the quantitative trading pool that was once the firm’s largest hedge fund. Global Alpha will stop charging fees at the end of this month and aims to finish liquidating most assets by mid-October, according to a letter that Goldman Sachs Asset Management sent to clients Sept. 14. The fund, which managed $11 billion of assets in 2007, had less than $1.7 billion at the end of June, according to a person familiar with the matter who spoke on condition of anonymity because the numbers aren’t public. Goldman Sachs, led by Chairman and Chief Executive Officer Lloyd C. Blankfein, 56, has been shrinking Global Alpha since 2007 when it lost 40 percent because of bad bets on currencies, equities and bonds worldwide. The fund’s co-managers Mark Carhart and Raymond Iwanowski quit in March 2009, and Katinka Domotorffy took charge of the quantitative investment strategies unit, which uses computers to pick securities and oversees $56 billion.

OTHER STORIES:

Mortgage-Default Filings Jump 33% in U.S. - (www.bloomberg.com)

Unemployment filings at more than 2-month high - (money.cnn.com)

German Leader Faces Key Choices on Rescuing Euro - (www.nytimes.com)

Wholesaler Prices in U.S. Little Changed- (www.bloomberg.com)

Greece, Europe struggle to contain debt crisis - (finance.yahoo.com)

European Interest Rates Rise in Spite of Central Bank Buying - (www.bloomberg.com)

Russia Sees Stalling Economy, With $60 a Barrel Oil Price - (www.bloomberg.com)

Federal Reserve boosts flow of dollars to European Central Bank - (www.washingtonpost.com)

UBS Trader Gets No Miracle as Loss Leads to Arrest - (www.bloomberg.com)

Analysis: BP oil spill report may prompt $30 billion pay-out - (www.reuters.com)

German Taxpayers Want Equity in Bank Bailouts: Karl Heinz Daeke - (www.bloomberg.com)

Friday September 30 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

ECB Coordinates With Federal Reserve in Lending Dollars to Euro-Area Banks - (www.bloomberg.com) The European Central Bank said it will lend dollars to euro-area banks in a series of three-month loans as the region’s debt crisis limits market access to the U.S. currency. The Frankfurt-based ECB said it will coordinate with the Federal Reserve and other central banks to conduct three separate dollar liquidity operations to ensure banks have enough of the currency through the end of the year. The three-month loans are in addition to the bank’s regular seven-day dollar offerings and will be fixed-rate tenders with full allotment, the ECB said in a statement today. They will be offered on Oct. 12, Nov. 9 and Dec. 7.

Mortgage-Default Filings Jump 33% in U.S. as Bank Foreclosure Logjam Eases - (www.bloomberg.com) Default notices sent to delinquent U.S. homeowners surged 33 percent in August from the previous month, a sign that lenders are speeding up the foreclosure process after almost a year of delays, RealtyTrac Inc. said. First-time default notices were filed on 78,880 properties, the most in nine months, the Irvine, California-based data seller said today in areport. Total foreclosure filings, which also include auction and home-seizure notices, increased 7 percent from a four-year low in July to 228,098. One in 570 homes received a notice during August. On a year-over-year basis, foreclosure filings dropped for an 11th straight month after claims of “robo-signing,” or pushing through documents that weren’t verified, spurred an investigation by state attorneys general in October. The jump in default notices from July -- the biggest monthly gain in four years -- shows that banks’ paperwork delays are easing even as industry talks to settle the probe continue, RealtyTrac said.

Greece Needs to Default, Euro Exit Over Loan, Slovak Party Leader Says - (www.bloomberg.com) Greece should default on its debt and abandon the euro as further loans won’t solve its crisis, a Slovak lawmaker whose vote in parliament may decide whether the country backs a bailout package for the currency area said. The Freedom and Solidarity party, a member of Slovakia’s coalition government, will vote in parliament against the European bailout system, founder and parliamentary speaker Richard Sulik said in an interview. His party, known as the SaS, wants member states to “keep to the rules” guiding the euro and “start saving money.”

“The first step is, Greece has to go bankrupt,” he said at his office in the Slovak parliament in Bratislava. “There is no possibility that” Greece “not now, not in the future, not in 50 years, will” pay back “the loans. My personal opinion is it would be better for Greece to leave the eurozone.”

The FAA Is About To Run Out Of Money AGAIN Due To Senate Stalemate - (www.businessinsider.com) For the second time in as many months, the Federal Aviation Administration may temporarily furlough some 80,000 employees if Congress can't reach a deal to extend the agency's funding by Friday night. Sen. Tom Coburn (R-OK) has held up passage of the funding extension bill, which would appropriate additional money for the FAA and federal highway transit projects, citing an objection to one component of the transit side of the legislation. The House unanimously passed that bill Tuesday, and the Senate has until midnight on Friday to also pass it before funding for the FAA runs out. Complicating matters, Majority Leader Harry Reid (D-NV) accused Coburn of putting a hold on a $7 million FEMA emergency funding bill that, due to procedural rules, must be voted on before the Senate can move on to the FAA bill. Since the Senate passed a cloture motion on Tuesday to move ahead on the FEMA bill, they must tackle that bill first unless Reid punts on it, something he has so far refused to do.

Michigan to require BMI reports on kids - Health - Diet and nutrition ... - (www.msnbc.msn.com) Michigan Gov. Rick Snyder plans to direct doctors in his state to begin monitoring the body weight of their young patients and provide the data to a new state registry, in one of the most extensive government efforts to address the growing problem of pediatric obesity, the Associated Press has learned. The move would help track the state's growing obesity problem while opening the way for doctors to be more proactive in offering advice, Snyder spokeswoman Sara Wurfel told The Associated Press on Tuesday. The Republican governor will announce the initiative Wednesday as part of his proposal for improving Michigan residents' health. The body mass index statistics for patients under 18 would be reported to the Michigan Care Improvement Registry but the children's identity would remain anonymous. The state already requires doctors to report how many children are immunized.

OTHER STORIES:

Merkel says euro bonds are "absolutely wrong" - (www.reuters.com)

China Willing to Buy Bonds From Sovereign-Debt-Crisis Nations, NDRC Says - (www.bloomberg.com)

Gold-Backed Dollar Puts ‘Fair Value’ at $10,000 an Ounce: Chart of the Day - (www.bloomberg.com)

Banks use gold to get dollar funds - (www.ft.com)

EU Cuts Euro-Area Second-Half Growth Forecasts - (www.bloomberg.com)

European treasury needed to avoid Depression: Soros - (www.reuters.com)

Inflation in August Is Above Forecasts - (www.bloomberg.com)

U.S. Jobless Claims Rose to Highest Since June - (www.bloomberg.com)

Manufacturing in New York Fed Area Contracts at Faster Pace Than Forecast - (www.bloomberg.com)

Flat retail sales keep U.S. on recession watch - (www.reuters.com)

Obama-Boehner summer deficit talks not a template for president’s debt taming plan - (www.washingtonpost.com)

UBS Says It Had $2B Loss From Unauthorized Trading - (www.bloomberg.com)

Thursday September 29 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

SOLYNDRA-GATE: Emails suggest White House pressured OMB to make $535 million loan to bankrupt solar company - (www.businessinsider.com) The scandal surrounding the $535 million federal loan to the now-bankrupt Solyndra, is now knocking on the doors of the West Wing. Internal emails obtained by The Washington Post show that White House officials tried to rush the review of the loan — so that Vice President Joe Biden could announce the award at the groundbreaking of the solar company's factory in September 2009. One official from the Office of Management and Budget charged with providing final review of the loan wrote of “the time pressure we are under to sign-off on Solyndra.” A second raised a red flag, saying “There isn’t time to negotiate.” Fox News reports that the Bush administration turned down a loan request from the company two weeks before Obama came into office. "This deal is NOT ready for prime time," one OMB staffer wrote in a March 10, 2009 email obtained by ABC News, nine days before the administration formally announced the loan. Another official said “We have ended up with a situation of having to do rushed approvals on a couple of occasions (and we are worried about Solyndra at the end of the week)." Sent on August 31, 2009, the message sent to Biden’s domestic policy adviser Terrell P. McSweeny, closed with, “We would prefer to have sufficient time to do our due diligence reviews.” Bloomberg reported last week that just two months before the loan was awarded, auditors found significant financial troubles — enough to “raise substantial doubt about its ability to continue as a going concern.” The White House has denied for weeks that it displayed anything more than interest in the timing of the loan — and maintains it did not pressure OMB or the Department of Energy to make the loan.

European leaders try to calm fears of a Greek default - (www.washingtonpost.com) European leaders closed ranks on Tuesday to insist that Greece will not default on its bonds, trying to quell speculation that divisions within the euro area are becoming irreparable. Speaking in Washington, Christine Lagarde, the International Monetary Fund’s managing director, said she was “very, very hopeful” that Greece can stick to the plan laid out under a bailout agreement with the IMF and other European countries. The IMF this month broke off talks with Greece over budget cuts and other measures required for the IMF to release the next installment of loans to the country. Lagarde said an IMF team had returned to the country to resume work with Greek officials. Without loans from the IMF and other European countries, Greece would not be able to make payments on its bonds. The prospect of a Greek default has loomed for a year and a half as the economy has been stuck in recession. A default by the Athens government could rock many European banks, which hold large amounts of Greek bonds, and unsettle global financial markets.

ECB Lends Dollars to European Banks as Markets Tighten - (www.bloomberg.com) The European Central Bank said it will lend dollars to two euro-area banks tomorrow, a sign they are finding it difficult to borrow the U.S. currency in markets. The ECB allotted $575 million in a regular seven-day liquidity-providing operation at a fixed rate of 1.1 percent. It’s the first time since Aug. 17 that a lender requested dollars from the ECB. The spot rate was $1.3625. An ECB spokesman declined to comment on which banks borrowed the funds. The premium European banks pay to borrow in dollars through the swaps market is close to the highest level in almost three years. The cost of converting euro-based payments into dollars, as measured by the one-year cross-currency basis swap, was 99.1 basis points below the euro interbank offered rate, or Euribor, at 12:24 p.m. in Frankfurt, indicating a premium to buy the greenback. It widened to as much as 112.6 basis points earlier this week, the most since Dec. 2, 2008, according to data compiled by Bloomberg. U.S. money-market funds “have stopped rolling over dollar loans of European banks,” said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London. “I wouldn’t be surprised if demand increased in the next weeks.”

So Much For "Pass This Bill Now": Senate Won't Act On Obama's Jobs Plan Before October - (www.businessinsider.com) Senate Majority Leader Harry Reid said the upper chamber won't take up President Barack Obama's jobs bill until the next legislative work period which begins in October — at earliest. Obama has repeatedly called on Congress to take up his jobs plan immediately — saying there should be "No games. No politics. No delays." Reid's lack of urgency is surprising, given how central the jobs plan has become to Obama's political fortunes. Reid has said the Senate has other priorities over the next two weeks — including more funding for FEMA disaster relief, and extension of a key highway bill and the passage of trade agreements. The Senate must also act along with the House to fund the government into the next fiscal year, which begins on October 1.

Obama disapproval rating hits new high - (www.cnn.com) President Barack Obama's disapproval rating has reached a new high of 55% while the number of Americans who think he is a strong leader has dropped to a new low, 48%, according to a CNN/ORC poll released Tuesday. And a familiar pattern in public opinion on Obama again asserts itself: Americans don't like his track record on major issues while they continue to like him personally. Nearly eight in 10 respondents say Obama is likeable; large majorities believe he is compassionate, hard-working, and has a vision for the country's future. Three-quarters think he fights for his beliefs. But only 39% approve of how he is handling unemployment, and just 36% approve of the way he is handling the economy, not surprising when more than eight in 10 think the economy is in poor shape.

OTHER STORIES:

ECB Will Lend Dollars to Two Euro-Region Banks as Market Funding Tightens - (www.bloomberg.com)

Euro-Bond Plan From Barroso Would Keep EU on Collision Course With Germany - (www.bloomberg.com)

Risk Rises at ECB as European Banks Lose Deposits - (www.bloomberg.com)

Spain Faces Rating Risks on ‘Downside’ as Regions Lag Targets, Fitch Says - (www.bloomberg.com)

Swiss 1970s Inflation Specter Seen in SNB’s Unlimited Sales - (www.bloomberg.com)

Wen sets preconditions to help Europe - (www.ft.com)

World Must Cut Deficits, Not Rely on China: Wen - (www.bloomberg.com)

Posen Steps Up Push for Stimulus at BOE - (www.bloomberg.com)

Retail Sales in U.S. Unexpectedly Stagnate - (www.bloomberg.com)

Wholesaler Prices in U.S. Little Changed - (www.bloomberg.com)

Debt Panel Opens With Bleak Economic Picture - (www.nytimes.com)

Fed's Weapons of Mass Distraction - (online.wsj.com)

Treasury to accommodate Fed on ‘Twist’ - (www.ft.com)

Credit Agricole, Societe Generale Debt Ratings Cut - (www.bloomberg.com)

Wednesday September 28 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

Disabled New Jersey Man Earns $15 Million Exposing Largest Medicaid Fraud In History - (www.businessinsider.com) Richard West was shocked when he went for some dental work and found his Medicaid benefits had maxed out. Pulling up his Medicaid record, he totaled the care he'd received, the bills submitted by his provider -- and found the problem. According to The Star-Ledger, West, 63, found the company arranging his nursing care, Maxim Healthcare, was over-billing the government for hundreds of hours of service from people he'd never seen. After calling several government hot-lines and receiving no help, he got a lawyer of his own. That phone call unraveled a fraud stretched across 40-states and resulted in a $150 million settlement -- the largest for healthcare fraud in history. Monday, Maxim agreed to return $121.5 million in state and federal claims; $8.4 million to the VA, and pay a $20 million fine. For exposing the fraud West will receive $15.4 million. He told the Ledger it wasn't tough figuring out the scam. "The hard part," he said, "was turning them in." Nine people, including three senior managers have pleaded guilty to felony charges, but no top executives have been charged. The whole story at The Star-Ledger is really worth checking out >

Greek bond investors face month’s wait - (www.ft.com) Anxious debt investors will have to wait until mid-October for the much-anticipated results of the Greek debt exchange offer, aimed at cutting Greece’s heavy public debt burden. The eventual offer will allow all holders of Greek debt to swap their Greek bonds maturing before 2020 for longer-dated paper, taking losses of about 21 per cent on their holdings in the process. If fewer than 90 per cent of eligible Greek bonds are tendered for the offer, the Hellenic Republic, after consulting with European authorities, has the option of cancelling the entire exchange if its debt sustainability targets are not met. But what is likely to be the world’s biggest ever liability management exercise, a type of debt restructuring often undertaken by companies, will proceed in a series of stages during the next month.

Pain Mounts for Europe Banks - (online.wsj.com) Europe's banks, burdened by concerns about exposure to ailing Greece, took a perilous turn on Monday despite efforts by the biggest of them to calm panicked investors. France's financial system was especially hard hit, with shares in its three largest banks all falling more than 10%, as concerns about Greek default continued to cascade across Europe. European banks are cutting back on dollar-denominated loans, a troublesome sign of credit contraction at a time when American and European economies can least afford it. Underscoring the pressure banks face, Societe Generale chairman and chief executive Frédéric Oudéa held a morning conference call on Monday to quell concerns and say that the bank was well funded. Still, the French bank said that in addition to reducing its dollar-denominated debts, it is laying off workers and will speed up the sale of some investments to free up cash. That wasn't enough to soothe investors. Shares of Societe Generale, BNP Paribas and Crédit Agricole all tumbled on Monday, and have seen their values fall by about half since July.

Merkel Eschews ‘Uncontrolled Greek Insolvency’ - (www.bloomberg.com) German Chancellor Angela Merkel said Greece is taking the right steps to get its next bailout payment, warning against allowing a Greek default because of the risk of contagion for other euro-area countries. Merkel, in a German radio interview broadcast today, said that an “uncontrolled insolvency” would further roil markets spooked by the prospect of a Greek default. The euro region currently has no system for “orderly” insolvency until the permanent rescue fund is established in 2013, she said. “The top priority is to avoid an uncontrolled insolvency, because that wouldn’t just hit Greece and the danger that it hits everyone, or at least a number of other countries, is very big,” Merkel told Berlin-based broadcaster Inforadio. “I have made my position very clear: that everything must be done to keep the euro area together politically, because we would very quickly face a domino effect.” Merkel’s comments are a rebuff to calls by members of her ruling coalition to consider allowing Greece’s insolvency and exit from the currency union as it struggles to satisfy the terms of its aid package. They also belie government plans to support German banks in the event that Greece goes into default.

A CRISIS FOR THE WORLD: Citi's Willem Buiter Warns What Happens If Greece Quits The Euro - (www.businessinsider.com) Citi's Willem Buiter is out with a new note firmly opposing all those who toy with the idea of a Greek exit from the eurozone. "The prospect of Greece exiting the euro area is seldom viewed with the proper degree of fear and trepidation," he writes. While Buiter admits that a Greek exit could have euro-positive implications in the long term, in the short term it would be an "economic disaster" for both Greece and the remaining 16 euro states with "severe economic and political implications" for the rest of the world. Here are a few of his main points:

- A Greek exit is still unlikely but has become a lot more possible in the last few weeks.

- While the Euro Area can't formally kick Greece out of the euro, denying it bailout funds or forcing it to adopt unfeasible austerity measures would virtually amount to booting the Greeks out. Buiter cites stalled negotiations (set to resume tomorrow) between Greek officials and ECB/EU/IMF troika inspectors as a bad sign that this not impossible. "For the sake of economic stability and growth in the euro area, the wider European Union and the global economy, we hope that this message is taken to heart by the European authorities."

- Buiter believes that the troika will continue to give Greece funding, but will probably force Greece to endure more austerity cuts and will be directly involved in designing the program.

OTHER STORIES:

Italy Sells $5.3 Billion of Bonds as Borrowing Costs Climb, Demand Drops - (www.bloomberg.com)

401(k) break at risk as policymakers mull retirement shift - (www.reuters.com)

Italy confirms China meeting as debt pressure mounts - (www.reuters.com)

German Leader Faces Key Choices on Rescuing Euro - (www.nytimes.com)

Wary Investors Start to Shun European Banks - (www.nytimes.com)

U.K. Inflation Accelerates to 4.5% in August - (www.bloomberg.com)

Russia Sees Stalling Economy, Plunging Ruble With $60 a Barrel Oil Price - (www.bloomberg.com)

French Inflation Advances to Highest in Almost Three Years - (www.bloomberg.com)

Dark Side of Brazil's Rise - (online.wsj.com)

Import Prices in U.S. Fall a Second Time in Three Months on Food, Oil Drop - (www.bloomberg.com)

U.S. motorists may spend a record $491 billion for gasoline this year - (www.latimes.com)

Insight: Succession questions swirl around Cisco's Chambers - (www.reuters.com)

Tuesday September 27 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

Fannie, Freddie get away with no monetary penalty or admission of fraud - (www.nytimes.com) Regulators are nearing a settlement with Fannie Mae and Freddie Mac over whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans, bringing to a close a three-year investigation. The proposed agreement with the Securities and Exchange Commission, under the terms being discussed, would include no monetary penalty or admission of fraud, according to several people briefed on the case. But a settlement would represent the most significant acknowledgement yet by the mortgage companies that they played a central role in the housing boom and bust. And the action, however limited, may help refurbish the S.E.C.’s reputation as an aggressive regulator, particularly as the country struggles with the aftereffects of the financial crisis that the housing bubble fueled. But the potential settlement — even it if it is little more than a rebuke — comes at an awkward time for Fannie Mae and Freddie Mac. Last week, the government overseer of the two companies sued 17 large financial firms, blaming them for luring the mortgage giants into buying troubled loans. That is a similar accusation to the one the S.E.C. is leveling at Fannie and Freddie — that the two entities misled their own investors. The case against the financial firms could be complicated should Fannie and Freddie sound a note of contrition for their own role in the implosion of the mortgage market in settling with the S.E.C.

Carry Trades Lose Most in a Year as Stimulus No Barrier to Stronger Dollar - (www.bloomberg.com) Slowing economic growth around the world is punishing investors who bet on Australian and Brazilian assets using money borrowed in dollars and yen with the biggest losses in more than a year. A UBS AG index tracking the performance of carry trades where investors sell currencies with low interest rates to buy ones in 24 markets with higher yields has tumbled 2.6 percent this month after losing 2.2 percent in August and 3.1 percent in July, the biggest back-to-back monthly drop since May and June 2010. The dollar has appreciated 6.5 percent against a basket of nine developed-nation peers from its low this year on Aug. 1, with the yen up more than 7.3 percent from the same day, according to Bloomberg Correlation-Weighted Currency Indexes.

Greece has cash until October: deputy finance minister - (www.reuters.com) Debt-laden Greece has cash to operate until next month, the country's deputy finance minister said on Monday, highlighting the country's need to qualify for the next tranche out of its ongoing EU/IMF bailout. Filippos Sachinidis's statements confirm previous comments by Greek officials, made on condition of anonymity, that the country had cash for only a few more weeks. "We have definitely maneuvering space within October," Sachinidis said in an interview on television channel Mega, responding to questions how much longer the government will be able to pay wages and pensions. "We are trying to make sure the state can continue to operate without problems," he added.

Nevada wallops Bank of America with sweeping suit - (www.centralvalleybusinesstimes.com) The state of Nevada has dramatically expanded its lawsuit against Bank of America, turning the narrow case it filed late last year into a broadside that targets virtually all aspects of the bank's mortgage operations. Bank of America has previously denied wrongdoing. The sweeping new suit [1] could have repercussions far beyond Nevada's borders. It further jeopardizes a possible nationwide settlement with the five largest U.S. banks over their foreclosure practices, especially given concerns voiced by other attorneys general, New York's foremost among them. (You can read the suit here [1].) In a statement, Bank of America spokeswoman Jumana Bauwens said reaching a settlement would bring a better outcome for homeowners than litigation. "We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality." The suit also weakens a separate, 2008 multistate settlement in which Countrywide promised to evaluate troubled homeowners for loan modifications.

For Graduates, a Shrinking Payoff - (www.nytimes.com) Attention recent college graduates — as well as parents who covered those big tuition bills. You may not want to hear this, but a study released on Wednesday found that entry-level wages for students who graduated from college in 2010 was lower than a decade earlier, after adjusting for inflation. The study was done by Heidi Shierholz, a labor market economist at the Economic Policy Institute, a liberal research and policy center. She found that after gains in the 1980s and 1990s, entry-level hourly wages for college-educated men (without advanced degrees) were $21.77 in 2010, down 4.5 percent from $22.75 in 2000. For college-educated women, entry-level wages were $18.43 in 2010, the study found, down 5.2 percent from $19.38 10 years earlier. (The figures are in 2010 dollars.) Ms. Shierholz said in an interview, “We’re seeing increased demand for college grads, but the fact that we see these declining wages suggests that demand is being more than met by the increased supply of college grads.” She said that in the decade after 2000, the business cycle was tough on workers and wages across the board, except for those at the very top. “These young people coming out of college get swooped up in the bottom part of the wage distribution that really suffered during the whole decade after 2000,” she said.

OTHER STORIES:

How Las Vegas gambled and lost - (www.marcrobusiness.com.au)

French Banks Slide on Possible Moody’s Cut - (www.bloomberg.com)

Insurance Against Sovereign, Bank Defaults Rises to Record Highs in Europe - (www.bloomberg.com)

Italian Yields Surge as Papandreou Struggles With Greece Default Concern - (www.bloomberg.com)

Europe Stress Seen in French Bank Commercial Paper Rates: Credit Markets - (www.bloomberg.com)

Merkel, Roesler Clash on Greece as Talk of Default Deepens Coalition Split - (www.bloomberg.com)

Draghi’s Hands May Be Tied on ECB Stimulus - (www.bloomberg.com)

Stark shock widens German euro faultline - (www.reuters.com)

CDS: modern day weapons of mass destruction - (www.ft.com)

Volcker Rule Delay Is Likely - (online.wsj.com)

India Industrial Output Grows at Slowest Pace Since ’09, Missing Estimates - (www.bloomberg.com)

Home-Shortage Myth Pits Blogs Versus Banks in Call Australia Set for Crash - (www.bloomberg.com)

China’s capital-hungry banks - (www.marketwatch.com)

Merkel allies break taboo with Greek default talk - (www.reuters.com)

US Fed faces tough choices - (www.ft.com)

Societe Generale Plans to Sell $5.4 Billion in Assets to Boost Its Capital - (www.bloomberg.com)

U.S. Banks’ Quarterly Profit Estimates Cut 45% by Citigroup - (www.bloomberg.com)