Sunday December 4 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

Nancy Pelosi Wants A Federal Babysitting Service – (www.businessinsider.com) After saving health-care, Pelosi offers to save parents from the needs of their children. Buried in a Washington Post story about Herman Cain calling Nancy Pelosi, "Princess Nancy" is a new policy idea that Pelosi has been pitching recently during her short tour through California. "One of the great pieces of unfinished business is high-quality child care; I wonder why we just can’t do that,’’ she recently said to a California audience. By "we", Pelosi means the federal government. Pelosi clarified that Congress should be “doing for child care what we did for health-care reform.” The Post characterizes Pelosi as touting the economic and social benefits of government child-sitting: When it comes to “unleashing women” in a way that would boost the economy, she says, “this is a missing link.”

U.S. Congress Votes to Put Americans Further in Debt and Raise FHA Mortgage Limits to $729,750 - (www.bloomberg.com) The U.S. House of Representatives approved higher limits for mortgages backed by the Federal Housing Administration, bypassing the objections of Republicans who said the increase could threaten the agency’s stability. Lawmakers voted today for increasing the limit to $729,750 as part of a $182 billion spending bill that included funding for the government through Dec. 16. The legislation, approved in a 298-121 vote, was opposed by 101 members of the House’s Republican majority, some of whom said they opposed the measure primarily because of the loan-limit increase. “This is an irresponsible action by the folks that should be the fiduciary for the American taxpayer,” Representative Patrick McHenry, a North Carolina Republican, said in an interview. “We need to be reining in our government housing finance programs so the private sector can step in.”

‘Unsellable’ Real Estate Assets Threaten Survival of Smaller Spanish Banks - (www.bloomberg.com) Spanish banks, under pressure to cut property-backed debt, hold about 30 billion euros ($41 billion) of real estate that’s “unsellable,” according to a risk adviser to Banco Santander SA (SAN) and five other lenders. “I’m really worried about the small- and medium-sized banks whose business is 100 percent in Spain and based on real- estate growth,” Pablo Cantos, managing partner of Madrid-based MaC Group, said in an interview. “I foresee Spain will be left with just four large banks.” Spanish lenders hold 308 billion euros of real estate loans, about half of which are “troubled,” according to the Bank of Spain. The central bank tightened rules last year to force lenders to aside more reserves against property taken onto their books in exchange for unpaid debts, pressing them to sell assets rather than wait for the market to recover from a four- year decline.

European Banks Face $270 Billion Goodwill Hangover for Past Acquisitions - (www.bloomberg.com) European banks may have to write down some of the $270 billion of goodwill from their purchases in the run-up to the financial crisis before they can sell assets, or new stock, to bolster capital. UniCredit SpA (UCG), Italy’s biggest lender, this week opted to take an 8.7 billion-euro ($10 billion) impairment charge following a series of acquisitions at home and in eastern Europe. Other European banks are yet to follow, analysts said. Credit Agricole SA (ACA), Banco Santander SA (SAN)

and Intesa Sanpaolo SA are among European banks with the most goodwill remaining on their balance sheets, according to data compiled by Bloomberg. “Banks that paid a premium for businesses when the outlook was better will need to reassess the goodwill on their balance sheets,” said Andrew Spooner, an accounting partner at Deloitte LLP in London. “Previous acquisitions which are exposed to peripheral Europe are most vulnerable to impairments.”

ECB Lending To IMF Proposal Gaining Traction - Sources - (www.online.wsj.com) A proposal that the International Monetary Fund could call on the European Central Bank to lend it money so it can finance bailouts for euro-zone governments threatened with insolvency is gaining traction and if all parties agree, a deal could be announced at the Dec. 9 European Union summit, two people with direct knowledge of the matter said. "Germany and the ECB are still opposed to the idea but with no other viable alternatives talks could start soon. There is urgency in this as something must be in place if Italy needs a bailout," a senior euro-zone government official said.

OTHER STORIES:

Franco-German Spat on Role of ECB Renewed - (www.bloomberg.com)

Europe Running Out of Options: Katainen - (www.bloomberg.com)

Spain latest to take hit in European debt crisis - (www.washingtonpost.com)

European Rift on Bank’s Role in Debt Relief - (www.nytimes.com)

European bank funding slows to a trickle - (www.ft.com)

Euro Debt Worries Shift to Spain and France - (www.nytimes.com)

China Home Prices Fall Most This Year as Curbs Drag Down Shanghai, Wenzhou - (www.bloomberg.com)

Congress Deficit-Cut Panel Members Hardening Positions as Deadline Nears - (www.bloomberg.com)

S&P to update bank credit ratings within 3 weeks - (www.reuters.com)

Words of a Euro Doomsayer Have New Resonance - (www.nytimes.com)