Someone will be so disappointed today for holding this bag too long!

Banks are doing fine except Citi

April 20 (Bloomberg) -- Obama administration officials signaled there may be no need to request more financial-rescue funds from Congress as several banks plan to return taxpayer money and others are pushed to tap private markets first.

White House chief of staff Rahm Emanuel said while he had not seen results of stress tests on the 19 biggest banks, he believed “we won’t” have to get more money. Aide Lawrence Summers said “the first resort for more capital is going to the private markets,” by issuing new equity or swapping some liabilities into stock that dilutes other stakeholders.

The remarks yesterday indicate the administration isn’t girding for a battle with lawmakers who have warned that a popular outcry against aiding Wall Street means approval of an expansion of the $700 billion Troubled Asset Relief Program would be a challenge.

“We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective,” Emanuel said on ABC’s “This Week” program. He added that “we will be able to avoid” temporary nationalization of the weakest of the big banks.

Summers, National Economic Council director, said on NBC’s “Meet the Press” that “there’s the capacity to turn to the private market” first for firms needing more capital. The government can also deploy “if necessary” additional taxpayer cash, which is likely be buttressed “over time” by lenders “that are in the strongest position” of paying back U.S. money.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRcyQIFEbm2s&refer=home

Banks are doing fine except Citi

April 20 (Bloomberg) -- Obama administration officials signaled there may be no need to request more financial-rescue funds from Congress as several banks plan to return taxpayer money and others are pushed to tap private markets first.

White House chief of staff Rahm Emanuel said while he had not seen results of stress tests on the 19 biggest banks, he believed “we won’t” have to get more money. Aide Lawrence Summers said “the first resort for more capital is going to the private markets,” by issuing new equity or swapping some liabilities into stock that dilutes other stakeholders.

The remarks yesterday indicate the administration isn’t girding for a battle with lawmakers who have warned that a popular outcry against aiding Wall Street means approval of an expansion of the $700 billion Troubled Asset Relief Program would be a challenge.

“We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective,” Emanuel said on ABC’s “This Week” program. He added that “we will be able to avoid” temporary nationalization of the weakest of the big banks.

Summers, National Economic Council director, said on NBC’s “Meet the Press” that “there’s the capacity to turn to the private market” first for firms needing more capital. The government can also deploy “if necessary” additional taxpayer cash, which is likely be buttressed “over time” by lenders “that are in the strongest position” of paying back U.S. money.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRcyQIFEbm2s&refer=home

Banks are doing fine except Citi

April 20 (Bloomberg) -- Obama administration officials signaled there may be no need to request more financial-rescue funds from Congress as several banks plan to return taxpayer money and others are pushed to tap private markets first.

White House chief of staff Rahm Emanuel said while he had not seen results of stress tests on the 19 biggest banks, he believed “we won’t” have to get more money. Aide Lawrence Summers said “the first resort for more capital is going to the private markets,” by issuing new equity or swapping some liabilities into stock that dilutes other stakeholders.

The remarks yesterday indicate the administration isn’t girding for a battle with lawmakers who have warned that a popular outcry against aiding Wall Street means approval of an expansion of the $700 billion Troubled Asset Relief Program would be a challenge.

“We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective,” Emanuel said on ABC’s “This Week” program. He added that “we will be able to avoid” temporary nationalization of the weakest of the big banks.

Summers, National Economic Council director, said on NBC’s “Meet the Press” that “there’s the capacity to turn to the private market” first for firms needing more capital. The government can also deploy “if necessary” additional taxpayer cash, which is likely be buttressed “over time” by lenders “that are in the strongest position” of paying back U.S. money.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRcyQIFEbm2s&refer=home

U.S. Officials Signal No Need for More TARP Funds From Congress

I see this article contradict the one from the NYT.

April 20 (Bloomberg) -- Obama administration officials signaled there may be no need to request more financial-rescue funds from Congress as several banks plan to return taxpayer money and others are pushed to tap private markets first.

White House chief of staff Rahm Emanuel said while he had not seen results of stress tests on the 19 biggest banks, he believed “we won’t” have to get more money. Aide Lawrence Summers said “the first resort for more capital is going to the private markets,” by issuing new equity or swapping some liabilities into stock that dilutes other stakeholders.

The remarks yesterday indicate the administration isn’t girding for a battle with lawmakers who have warned that a popular outcry against aiding Wall Street means approval of an expansion of the $700 billion Troubled Asset Relief Program would be a challenge.

“We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective,” Emanuel said on ABC’s “This Week” program. He added that “we will be able to avoid” temporary nationalization of the weakest of the big banks.

Summers, National Economic Council director, said on NBC’s “Meet the Press” that “there’s the capacity to turn to the private market” first for firms needing more capital. The government can also deploy “if necessary” additional taxpayer cash, which is likely be buttressed “over time” by lenders “that are in the strongest position” of paying back U.S. money.

.......

There have been signs this year of some recovery in the banking industry. Goldman Sachs Group Inc. reported earnings on April 13 that exceeded analysts’ forecasts. The New York-based firm sold $5 billion in stock to help repay government capital injections.

JPMorgan Chase & Co. last week also reported profit that beat analysts’ estimates. Chief Executive Officer Jamie Dimon labeled the TARP program a “scarlet letter” and said the firm could repay the government “tomorrow.”

Banking lawyers and industry officials said the Treasury needs to be clear with the public about the reviews. Because of the intense interest from the media and investors, the government needs to “explain early and often” the purpose of the program, said the ABA’s Abernathy.

“It’s very possible that we are seeing the turning of the corner for the banking industry,” he said. “Our biggest fear is that it becomes a confidence-eroding episode at just the wrong time.”

Short Term Good News for BAC

I see this article is a short term good news for BAC for the follwing reasons:

BAC does not need to pay back the government TARP money now so no dilution in the near future as some of the posters in yahoo mentioned.

Here is the news:

April 17 (Bloomberg) -- The Treasury may retain a stake in many U.S. banks even after they buy back the shares the government currently holds.

The government will continue to hold warrants, attached to every capital injection it has made, even after any share buybacks, Treasury officials said. Banks seeking to escape the government’s grip want to retire the warrants -- which give the right to buy stock in the future at a preset price -- at the same time they acquire the government-owned preferred shares.

The officials said the U.S. would give up the warrants only after subsequent talks with appraisers and the banks to agree on a price. As long as the warrants remain, lenders would continue to face some federal constraints, including limits on hiring non-American citizens, the officials said. Lenders would be freed of restrictions on executive pay and dividends, they said.

“When this program was created, everything was done so fast, I don’t think people were contemplating they would be exiting this quickly,” said Diane Casey-Landry, chief operating officer of the American Bankers Association.

Escalating federal demands on the banks have spurred institutions including Goldman Sachs Group Inc. and JPMorgan Chase & Co. to seek an early exit from the Treasury’s rescue program. The warrants issue may be the latest complication in a $700 billion effort to unfreeze credit that has sparked an outcry among both lawmakers and some bankers.

Most of the funds from the Troubled Asset Relief Program distributed so far have been used for buying stakes in financial companies. Warrants apply to all elements of TARP, and officials are still wrestling with how to include them in their plan to finance purchases of distressed assets.

Toxic-Debt Programs

Treasury representatives are working with the Federal Deposit Insurance Corp. and potential participants in the toxic- debt programs on how to apply the warrants requirement.

Lawmakers pressed for warrants in the TARP law enacted in October as a way for taxpayers to benefit from future profits of companies getting help. When exercised, the government can buy newly issued shares from the company at a pre-determined price.

It’s unclear how much the warrants may be worth and valuing them may prove contentious. Bankers said the warrants, under current market conditions, may turn out to be expensive for those looking to exit the rescue programs quickly.

“If you look at the cost of those warrants and turn it into an annual percentage rate, it’s enormous,” said Camden Fine, president of the Independent Community Bankers of America. “It almost makes the Treasury look like a payday lender.”

Goldman Share Sale

Goldman Sachs Chief Financial Officer David Viniar said in an April 14 interview that “there’s a prescribed process for how you do it -- where you propose a price, they accept or not, you negotiate and then you hire appraisers and come up with an agreed-upon valuation.”

“We’ll figure it out, we don’t know” the cost, Viniar said. Goldman Sachs raised $5 billion this week in a share sale in order to help pay back the $10 billion it took from the government in October.

JPMorgan Chief Executive Officer Jamie Dimon said April 16 his firm could repay U.S. government rescue funds “tomorrow.” He called the receipt of the $25 billion in TARP money last year “a scarlet letter.”

JPMorgan spokesman Joseph Evangelisti declined to comment on the warrants.

For the top 19 banks, any TARP repayments will have to wait until after the so-called stress tests conclude, a Treasury official said. U.S. regulators are reviewing the biggest banks to gauge whether they have enough capital to survive a deeper economic slowdown. A Federal Reserve official said yesterday that the results are planned for release May 4.

To repay, a bank must apply to the Treasury. The request then goes to the bank’s regulators, who review the soundness of the institution. If the bank is deemed in good shape, it’s allowed to buy out the government stake.

Some smaller banks are already in the process of repaying their TARP funds. Of the six who have repaid so far, five have outstanding warrants that need to be addressed.

I heard some rumors that Citi might not covert all the preferred shares into common shares due to its financial strength in share price. If this news is true, C should be valued at around $6 per share.

Good luck to all!

WID

GM to Lay Groundwork for BK Filing by June 1

WASHINGTON, April 12 (Reuters ) - The U.S. Treasury Department is directing General Motors (GM.N) to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday.

GM is operating under emergency U.S. government loans. It has been told by the Obama administration's task force overseeing its bailout that it must cut costs and reduce its debts in order to continue to receive aid.

The White House-appointed autos task force has given GM 60 days to come up with a restructuring plan and it is trying to determine whether the automaker can be a viable company.

Quoting sources who had been briefed on the GM plans, the Times said the goal was to prepare for a fast "surgical" bankruptcy.

The newspaper said preparations are aimed at assuring a GM bankruptcy filing is ready if the company is unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in GM and with the United Automobile Workers union.

A plan under consideration would create a new company that would buy the "good" assets of GM after the carmaker files for bankruptcy, the Times said.

Less desirable assets, including unwanted brands, factories and health care obligations, would be left in the old company, which could be liquidated over several years, according to the paper.

Treasury officials are examining one potential outcome in which the viable GM enters and exits bankruptcy protection in as little as two weeks, using $5 billion to $7 billion in federal financing, a person briefed on the matter told the Times.

The Times sources declined to be identified because they were not authorized to discuss the process. Both GM and Treasury Department officials declined to comment, the newspaper said.

Last week, GM's chief executive said the automaker wanted to restructure out of court, but also preparing for a bankruptcy filing.

http://www.reuters.com/article/marketsNews/idINN1235687020090413?rpc=44

youngest executive officer in Big Pharma:

Malvinder Mohan Singh of Ranbaxy Pharmaceuticals Inc

WID

Economic Calendar for next week:

http://www.bloomberg.com/markets/ecalendar/index.html

There may be a pull back on Monday and Wednesday due to profit taking but the long term for financial stocks are strong.

Best investment!
WID

Federal Reserve Chairman Ben S. Bernanke said policies to unfreeze credit markets are working.

http://www.bloomberg.com/apps/news?pid=20601087&sid=az5l5KYFjxQE&refer=home

Federal Reserve Chairman Ben S. Bernanke said policies to unfreeze credit markets are working.

http://www.bloomberg.com/apps/news?pid=20601087&sid=az5l5KYFjxQE&refer=home

Geithner said: world economy may be stabilizing

Geithner’s pledge comes as signs emerge that the world economy may be stabilizing. Confidence among U.S. consumers climbed last month from the lowest level on record, according to the Conference Board. U.K. house prices rose in March for the first time since October 2007, while Chinese manufacturing increased, reports last week showed.

http://www.bloomberg.com/apps/news?pid=20601087&sid=as2lRVVkuweQ&refer=home

Geithner said: world economy may be stabilizing

Geithner’s pledge comes as signs emerge that the world economy may be stabilizing. Confidence among U.S. consumers climbed last month from the lowest level on record, according to the Conference Board. U.K. house prices rose in March for the first time since October 2007, while Chinese manufacturing increased, reports last week showed.

http://www.bloomberg.com/apps/news?pid=20601087&sid=as2lRVVkuweQ&refer=home

We will have ISM report at 10:00 am and the chairman of the fed will talk later today. Look for rally in the afternoon.

Have a great weekend!
WID

Global Economic Slide May Be Easing

Evidence is building that the deepest global recession since World War II may be easing -- giving comfort to those who say the G-20’s $2 trillion of fiscal stimulus is working, as well as those who argue that enough has been provided. An index compiled by UBS AG economists to show when economic data is stronger than markets expect logged its biggest jump last month since August.

Among what economists call the possible “green shoots” of recovery: In the U.S., sales of new homes rose unexpectedly in February by 4.7 percent, and factory inventories are falling. The rate of contraction in European manufacturing and services industries is slowing. New bank lending quadrupled in China in February and vehicle sales rose 25 percent, while Japanese companies including automaker Nissan Motor Co. say they will increase production in coming months.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aNz_BL.tu7yw&refer=home

UK wants G20 to pledge $2 trln stimulus-magazine

BERLIN, March 28 (Reuters) - A draft G20 communique shows Britain wants the group of leading economies to pledge $2 trillion in stimulus when they meet in London next week, German magazine Der Spiegel reported. It was unclear how much if any of the $2 trillion figure would represent new spending from the G20, whose individual members have already pledged total stimulus measures close to that amount. In the draft communique it cited, the magazine also said the $2 trillion was in brackets, showing that it is a proposal by G20 president Britain that has not been approved by the broader group. Der Spiegel said the draft stated the stimulus would boost growth by 2 percentage points and employment by 19 million. Britain was also pushing the G20 to come up with a concrete target for global growth in 2010, although no specific goal was included in the draft, the magazine reported. British Prime Minister Gordon Brown, who will host the April 2 summit, has said he expects world leaders to do "whatever it takes" to create growth and jobs when they come together. The draft cited by Der Spiegel includes the following pledge: "We are determined to restore growth, resist protectionism and to reform our markets and institutions for the future." It continues: "We believe that an open world economy, based on the principles of the market, effective regulation and strong global institutions, can ensure sustainable globalisation with rising well-being for all." (Writing by Noah Barkin; editing by Sue Thomas) Keywords: G20/STIMULUS REPORT (noah.barkin@reuters.com; +49 30 2888 5091; Reuters Messaging: rm://noah.barkin.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

http://www.cnbc.com/id/29928577

AD:

The economy conditions are better now that it was a month ago... It is actually now bottomed.

ETF's such as FAS, UYG, etc..(the financial bulls) will perform much better than the normal market. FAS is bull 3x so it will outperform the others..

Although FAS is very volatile so you need to know your entries and exits...

If you remembered what Obama said during the election... he favored the main street but not wall street... things are changed now. He said we (main street and wall street) are on the same boat...

Moreover, there is some political liabilities for the democrats if the market is bearish... especially, the financial system.

Have a great weekend!
Thanks!
WID

AD:

The economy conditions are better now that it was a month ago... It is actually now bottomed.

ETF's such as FAS, UYG, etc..(the financial bulls) will perform much better than the normal market. FAS is bull 3x so it will outperform the others..

Although FAS is very volatile so you need to know your entries and exits...

If you remembered what Obama said during the election... he favored the main street but not wall street... things are changed now. He said we (main street and wall street) are on the same boat...

Moreover, there is some political liabilities for the democrats if the market is bearish... especially, the financial system.

Have a great weekend!
Thanks!
WID

AD: You need to sell FAZ and get into FAS over the weekend.

I think Ken borrrows some $$$ from the longs this morning to fund his trip to meet president Obama today. Ken promise to pay back the $$$ the next business day with 25% return.

It sounds like a great deal to me!

Have a great weekend!

WID

Take your profit or cut your loss and move your capital to FAS ASAP.

Last warning!
GLTA.

WID

You still have time to buy FAS today before lunch time.

GLTA
WID

You don't have to listen... Watch the real action before the closing bell today..

GLTA!
WID

TOP BANK CHIEFS TO MEET WITH OBAMA FRIDAY

March 25 (Reuters) - The following is a list of banks and trade groups that have been invited to meet with U.S. President Barack Obama on Friday, according to a source familiar with preparations:

Fannie Mae (FNM.P) and Freddie Mac (FRE.P) - Seized by regulators when the cost of failing home loans pushed the mortgage-finance companies toward insolvency. Since being nationalized in September, the companies have been turned into tools to aid the housing market.

JPMorgan Chase (JPM.N) - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. Last year, regulators helped JPMorgan buy Bear Stearns and Washington Mutual before they collapsed under the weight of bad housing bets.

Citigroup (C.N) - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. Since that initial investment, Treasury has pumped another $20 billion into the company, promised to shoulder losses on bad investments and otherwise helped prop-up the global lender.

Wells Fargo (WFC.N) - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. That same month, the bank with a strong presence on the West Coast bought North Carolina-based Wachovia before that lender collapsed under the weight of mortgage losses.

Bank of America (BAC.N) - The bank received a $15 billion injection of capital in October along with many large financial services companies. In early January, the Treasury Department pumped $20 billion more into the lender and agreed to shoulder some losses in order to preserve its buyout of Merrill Lynch.

Bank of New York/Mellon (BK.N) - In October, the Treasury bought a $3 billion stake in the financial services firm under its Troubled Asset Relief Program meant to buttress banks' balance sheets. The government's investment was one of the smallest under that first phase of the aid program.

State Street (STT.N) - The Treasury bought a $2 billion stake in the Boston-based financial services company in October -- its smallest investment under the initial phase of the TARP. The other eight firms that received an initial capital injection absorbed $123 billion in federal money.

Merrill Lynch MER.N - The investment bank received a $15 billion boost from the Treasury Department in October in order to preserve its buyout by Bank of America. Deep losses at the company have continued to weigh on Bank of America's balance sheet.

Goldman Sachs (GS.N) - The investment bank took a $10 billion investment from the Treasury Department in October but has since said it wants to return that government money. Now operating as a traditional bank accepting deposits.

Morgan Stanley (MS.N) - The investment bank received a $10 billion investment from the Treasury Department in October and soon thereafter applied to accept consumer deposits to help stabilize its balance sheet.

PNC Financial Services (PNC.N), USBancorp (USB.N) and Northern Trust (NTRS.O) - The three financial services companies have accepted $7.7 billion, $6.6 billion and $1.6 billion, respectively, under the TARP program. All three have said that they want to return the money soon. PNC and USBancorp are large, regional lenders.

American Bankers Association and Financial Services Roundtable - Two Washington-based trade groups that represent many of the large lenders and finance companies that have received billions of dollars in federal aid.

(Reporting by Patrick Rucker, Editing by Eric Beech)

Dew,

As always, thanks for the news!

BANK OF AMERICA TIMELINE

3-23-09: Treasury announces plan to remove toxic assets from banks' balance sheets.

3-26-09: Treasury to announce plan for overhauling financial regulatory system.

4-2-09: FASB vote on relaxing M2M.

4-8-09: SEC vote on reinstating uptick rule.

4-13-09: WFC and GS 1st quarter earnings release.

4-16-09: JPM 1st quarter earnings release.

4-17-09: C 1st quarter earnings release.

4-20-09: BAC 1st quarter earnings release.

4-30-09: Completion of bank stress tests.

March 24 (Bloomberg) -- President Barack Obama said the U.S. is beginning to see signs of progress on the economy “but it will take time, it will take patience” to fully recover, as he made an appeal for his economic strategy in a nationally televised news conference.

The president said his efforts to revive the economy are starting to take hold and that his fiscal 2010 budget will build a “stronger foundation” for future growth.

To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net; To contact the reporter on this story: Hans Nichols in Washington at hnichols2@bloomberg.net

Last Updated: March 24, 2009 20:08 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=a15oORMJT3as&refer=home

I think the runup will extend to next week for the banking system.

Have a great day!
WID

Someone said: "No doubt in my mind this puppy FAZ will hit 200$ before summer."

I think that he/she made a mistake" $2.00 instead $200". It is a minor mistake to put the decimal point at the wrong location.

FAZ to $2.00

WID

It sounds to me that there are a few people miss the train for the last couple days or weeks.... It's not too late to join now..

Have a great time this week and next week.

Thanks!
WID

See you at $8 on Wed.

BAC is trading actively in EU and look very positive..

http://www.ls-d.de/USA.95.0.html

Have a great day!

WID

US Is Rushing to Get More Control Of Financial Giants

FDIC Chairman Sheila Bair Thursday told Congress that the government’s policy of bailing out firms because they were too big to fail had to be replaced.

Under current law, the FDIC has so-called “bridge bank authority” to take over a troubled institution with government insured deposits. The FDIC essentially keeps the bank open for a short period of time before a pre-arranged buyer—meaning another bank—assumes control and operation. In some cases, the government actualyy closes the bank and pays off depositors.

http://www.cnbc.com/id/29386561

US Is Rushing to Get More Control Of Financial Giants

FDIC Chairman Sheila Bair Thursday told Congress that the government’s policy of bailing out firms because they were too big to fail had to be replaced.

Under current law, the FDIC has so-called “bridge bank authority” to take over a troubled institution with government insured deposits. The FDIC essentially keeps the bank open for a short period of time before a pre-arranged buyer—meaning another bank—assumes control and operation. In some cases, the government actualyy closes the bank and pays off depositors.

Here is the link:

http://www.cnbc.com/id/29386561

Thanks a lot Dew!

I have been reading messages on I-Hub and I have read a lot of messages from you under BTK. I sometimes posted messages in there myself too. I am very impressed with the way you post and the amount of time you spent to gather the information. With your experience in the stock market as general and biotech stocks as particular. May I have couple questions for you regarding financial stocks as well as biotech?

I saw you couple times posting in the BAC board and I am currently holding some BAC shares in my daughter education account but I whether I should hold on to it or unload it?

Do you think the banking industries, especially under this kind of economy, are out of the mess yet?

I appreciated you quick response regarding to MNTA this morning and I am very thankful for you to keep up such a great message board for investors and scientists to share their ideas or opinions with each other.

Thanks!
WID

[b/MNTA related News

Rivaroxaban competes against MNTA generic verion of enoxaparin.

Any comments on Rivaroxaban??

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Rivaroxaban, a proposed new type of drug designed to keep blood clots from forming, was better than a comparator drug at stopping such clots but caused increased bleeding among patients in clinical studies, according to a Food and Drug Administration review.

Rivaroxaban, from Bayer AG's (BAYRY) health-care unit and Johnson & Johnson ( JNJ), faces a review by an FDA panel Thursday. The FDA posted a review of the product on its Web site Tuesday. Rivaroxaban is sold under the brand name Xarelto in Europe, where it was approved last year.

The product is pending FDA approval for short-term use to prevent blood clots in patients undergoing hip or knee-replacement surgery. Blood clots, which typically form in the leg, can be fatal if they travel to the lungs. The FDA panel will be asked to vote on whether the drug carries a favorable risk- benefit profile. If the panel votes yes, it amounts to a recommendation that the agency approve the drug, while a no vote would suggest regulators should reject the drug.

The FDA makes the final decision but typically follows panel recommendations. If approved, Johnson & Johnson would sell the drug in the U.S. It would also mark the first approval of an oral anticoagulant drug since the FDA approved warfarin in 1954.

The agency said the "main safety finding" in clinical studies was increased bleeding among patients. The agency also said there is evidence of an increase in a liver enzyme that can indicate liver damage. The rate of major bleeding, or bleeding that requires medical intervention, was low, but was almost twice that for patients being given another drug, enoxaparin, the review said.

Enoxaparin is an injectible drug sold under the brand name Lovenox by Sanofi- Aventis SA (SNY), and is one of the main drugs currently used to prevent blood clots in certain surgery patients as well as those diagnosed with deep vein thrombosis, or DVT, or a blood clot that forms in a vein deep in the body.

In a briefing document also posted to FDA's Web site, Johnson & Johnson noted that all anticoagulant drugs carry some bleeding risk. The company said the drug has a "favorable safety profile" and that the potential for drug induced liver- injury and cardiovascular effects "appears to be low."

Rivaroxaban is a new type of drug that targets an enzyme known as Factor Xa that's involved in the blood-clotting process. Other anti-clotting agents currently on the market such as Plavix, by Bristol-Myers Squibb Co. (BMY) and Sanofi Aventis SA (SNY), and aspirin work through a different mechanism and are designed to keep blood platelets from sticking together.

Data submitted to the FDA regarding rivaroxaban included four main clinical studies that looked at more than 12,000 patients and in most cases studied it compared to enoxaparin.

The FDA said the absolute risk reduction of a blood clot, a non-fatal clot in the lungs and death from any cause was 2.6% in favor of rivaroxaban in patients undergoing hip surgery and 3.7% among knee surgery patients compared to enoxaparin. However, the incidence of major bleeding was higher in the rivaroxaban group, or 24 patients compared to 13 patients in the enoxaparin group. The review also noted that two patients in the rivaroxaban group died of a fatal bleed compared to none in the enoxaparin group, although one patient never received rivaroxaban.

Although I think that BAC future will be bright, I am not seeing anything to justify the pps of this stock is higher than what it is right now. Until the toxic assets is off the balance sheets and the fed will find a way to deal with credit crisis, loan loss (defaults), foreclosures, emplayment, etc....

I think you are a little too optimistic.

Please be fair & balanced to yourself in your judgment.

WID

Dew,

I just want to know what is your sentiment or perception on MNTA? This stock has been falling back to close to its 52-week low.

Are your still keeping the same sentiment?

Thanks!
WID

BAC & ML Interesting Development

New York prosecutors are investigating whether the early payment of bonuses at Merrill Lynch last year gave the bank’s traders an incentive to mark down the value of their trading positions in the last days of December, according to people familiar with the probe.

The New York attorney-general, Andrew Cuomo, began his investigation after the Financial Times disclosed that Merrill had paid $3.6bn in year-end bonuses during December, only days before the closing of its sale to Bank of America.

In a new twist to the probe, Mr Cuomo’s office is now considering whether the early payments encouraged Merrill traders to mark down their portfolios – which would make it easier for them to post gains fresh out of the gate in January.

Three former Merrill Lynch executives told the FT that traders made such changes to their books in late December.

But the executives said the markdowns were not out-sized, and did not represent a concerted effort to “kitchen sink” the quarter – a strategy in which positions are marked down to make later results look better.

Mr Cuomo’s office accused BofA last week of interfering with the inquiry by refusing to turn over a complete roster of Merrill Lynch executives and their bonus payments for 2008.

In a court filing expected Wednesday, Mr Cuomo will respond to BofA’s argument that the disclosure of the individual bonus payments to Merrill employees in December would be an invasion of privacy.

Mr Cuomo’s office is expected to argue that prosecutors need the specifics of the bonus payments to determine whether important information was kept from BofA shareholders who approved the Merrill acquisition and from federal officials who gave $45bn in taxpayer funds to the Charlotte, North Carolina, bank.

Prosecutors from Mr Cuomo’s office have already taken depositions from John Thain, former chief executive of Merrill Lynch; Greg Fleming, former head of investment banking at Merrill; BofA’s chief executive, Ken Lewis; and two human resources executives from BofA, chief administrative officer J. Steele Alphin and Andrea Smith.

In Mr Thain’s deposition last month, it emerged that between December 8, when Merrill’s board signed off on the bonus payments for the year, and December 31, Merrill’s losses grew by $7bn, far more than expected.