I am going to try to be there. We are launching a well funded new website next month and it will deal exclusively with biomed news and reports for investors, so we think it might be very important for us to have a presence there.

How'd you make out?

HYPE TIME!

Print a copy of news of Atryn approval and fax to CNBC:

CNBC Fax 201-735-3200

BREAKING NEWS-- Just released GTCB gets FDA Approval

Just starting to run!

http://finance.yahoo.com/news/FDA-OKs-1st-drug-from-apf-14279821.html

BREAKING NEWS-- Just released GTCB gets FDA Approval

Just starting to run!

http://finance.yahoo.com/news/FDA-OKs-1st-drug-from-apf-14279821.html

BREAKING NEWS-- Just released GTCB gets FDA Approval

Just starting to run!

http://finance.yahoo.com/news/FDA-OKs-1st-drug-from-apf-14279821.html

Agreed. CHTR should be sold off in pieces. Their days were numbered regardless- especially with the way Paul Allen has managed it.

Heads up! ACTC starting to move on news:

http://www.washingtontimes.com/news/2009/feb/06/obama-guarantees-aiding-stem-cell/

ACTC starting to move up on Obama's STEM CELL news:

http://www.washingtontimes.com/news/2009/feb/06/obama-guarantees-aiding-stem-cell/

ACTC up on Obama's Stem Cell promise

http://www.washingtontimes.com/news/2009/feb/06/obama-guarantees-aiding-stem-cell/

ACTC up 14% already on Obama News!

http://www.washingtontimes.com/news/2009/feb/06/obama-guarantees-aiding-stem-cell/

It was published 2 days ago. Suit yourself if you want to be wiped out. I was just warning others.

New L.A. Times Article about BofA- must read

http://www.latimes.com/business/la-fi-bofa6-2009feb06,0,4755158.story?page=2

'Monster Move' Coming for Stocks: S&P Could Hit 1000 by Spring, Harrison Says

Posted Feb 05, 2009 10:49am EST

http://finance.yahoo.com/tech-ticker/article/168673/Monster-Move-Coming-for-Stocks%3A-S%26P-Could-Hit-1000-by-Spring%2C-Harrison-Says

After two months of relative calm, there is a "monster move" coming for the stock market starting as early as next week, says Todd Harrison, CEO of Minyanville.com.

Harrison, who has largely been negative (and thus right) in the past year, is positioning himself for a rally that could bring the S&P 500 above 1000 by springtime, or an approximately 20% rally from current levels.

Not surprisingly, Harrison's upbeat outlook is based on a view the financials are poised to rally, despite (or maybe because of) the prevailing negativity surrounding the group.

Harrison is long Bank of America and sees potential opportunities in Morgan Stanley and Wells Fargo but, as with the broader market, for a trade only and with defined stops to limit risk if the expected advance doesn't materialize or fades quickly.

Admittedly, part of Harrison's prediction is based on a "gut feeling." But he's also expecting the next phase of the bank bailout package to be announced soon, which could provide a catalyst. As detailed here, he also has recommendations for how the package should be shaped, featuring:

* Immediately suspend all dividend payments for TARP-recipient banks, including dividend payments to the government and other investors.
* Convert the government's preferred holdings to common stock and offer the same terms to existing preferred shareholders.
* For the top 25 largest financial institutions, separate the good assets and businesses from the bad.
* Let smaller, troubled banks, fail and create an RTC-like entity to deal with the management and sale of their assets.

As you'll see in the accompanying video, I don't agree with all of Harrison's recommendations, which seem to perpetuate the "too big to fail" doctrine and doesn't do enough to protect taxpayers for the "investments" made to date.

But at least he's got a plan, which is more than can be said for Washington. Furthermore, I wouldn't bet against Todd when it comes to the trading side of the equation.

'Monster Move' Coming for Stocks: S&P Could Hit 1000 by Spring, Harrison Says

Posted Feb 05, 2009 10:49am EST

http://finance.yahoo.com/tech-ticker/article/168673/Monster-Move-Coming-for-Stocks%3A-S%26P-Could-Hit-1000-by-Spring%2C-Harrison-Says

After two months of relative calm, there is a "monster move" coming for the stock market starting as early as next week, says Todd Harrison, CEO of Minyanville.com.

Harrison, who has largely been negative (and thus right) in the past year, is positioning himself for a rally that could bring the S&P 500 above 1000 by springtime, or an approximately 20% rally from current levels.

Not surprisingly, Harrison's upbeat outlook is based on a view the financials are poised to rally, despite (or maybe because of) the prevailing negativity surrounding the group.

Harrison is long Bank of America and sees potential opportunities in Morgan Stanley and Wells Fargo but, as with the broader market, for a trade only and with defined stops to limit risk if the expected advance doesn't materialize or fades quickly.

Admittedly, part of Harrison's prediction is based on a "gut feeling." But he's also expecting the next phase of the bank bailout package to be announced soon, which could provide a catalyst. As detailed here, he also has recommendations for how the package should be shaped, featuring:

* Immediately suspend all dividend payments for TARP-recipient banks, including dividend payments to the government and other investors.
* Convert the government's preferred holdings to common stock and offer the same terms to existing preferred shareholders.
* For the top 25 largest financial institutions, separate the good assets and businesses from the bad.
* Let smaller, troubled banks, fail and create an RTC-like entity to deal with the management and sale of their assets.

As you'll see in the accompanying video, I don't agree with all of Harrison's recommendations, which seem to perpetuate the "too big to fail" doctrine and doesn't do enough to protect taxpayers for the "investments" made to date.

But at least he's got a plan, which is more than can be said for Washington. Furthermore, I wouldn't bet against Todd when it comes to the trading side of the equation.

'Monster Move' Coming for Stocks: S&P Could Hit 1000 by Spring, Harrison Says

Posted Feb 05, 2009 10:49am EST

http://finance.yahoo.com/tech-ticker/article/168673/Monster-Move-Coming-for-Stocks%3A-S%26P-Could-Hit-1000-by-Spring%2C-Harrison-Says

After two months of relative calm, there is a "monster move" coming for the stock market starting as early as next week, says Todd Harrison, CEO of Minyanville.com.

Harrison, who has largely been negative (and thus right) in the past year, is positioning himself for a rally that could bring the S&P 500 above 1000 by springtime, or an approximately 20% rally from current levels.

Not surprisingly, Harrison's upbeat outlook is based on a view the financials are poised to rally, despite (or maybe because of) the prevailing negativity surrounding the group.

Harrison is long Bank of America and sees potential opportunities in Morgan Stanley and Wells Fargo but, as with the broader market, for a trade only and with defined stops to limit risk if the expected advance doesn't materialize or fades quickly.

Admittedly, part of Harrison's prediction is based on a "gut feeling." But he's also expecting the next phase of the bank bailout package to be announced soon, which could provide a catalyst. As detailed here, he also has recommendations for how the package should be shaped, featuring:

* Immediately suspend all dividend payments for TARP-recipient banks, including dividend payments to the government and other investors.
* Convert the government's preferred holdings to common stock and offer the same terms to existing preferred shareholders.
* For the top 25 largest financial institutions, separate the good assets and businesses from the bad.
* Let smaller, troubled banks, fail and create an RTC-like entity to deal with the management and sale of their assets.

As you'll see in the accompanying video, I don't agree with all of Harrison's recommendations, which seem to perpetuate the "too big to fail" doctrine and doesn't do enough to protect taxpayers for the "investments" made to date.

But at least he's got a plan, which is more than can be said for Washington. Furthermore, I wouldn't bet against Todd when it comes to the trading side of the equation.

Aha! Makes sense. :)

Spread the word- CHTR preparing for bankruptcy!

Report:

http://phoenix.bizjournals.com/atlanta/stories/2009/02/02/daily33.html

Spread the word- CHTR preparing for bankruptcy!

Report:

http://phoenix.bizjournals.com/atlanta/stories/2009/02/02/daily33.html

RESISTANCE ABOVE at 6.76 ± 0.59, type single, strength 8

Great to have you. I'm all in at BAC, though. Like their volume and chart a little more. Either way, looks like the financials are in for a nice run.

This BAC chart was drawn Jan 26, 2009---

I think he nailed it!

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35101563&txt2find=triangle|bac

This chart for BAC was drawn JAN 26, 2009---

I think he called it!

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35101563&txt2find=triangle|bac

Petition and Call for Congressional Investigation of Forced Merrill Lynch deal

Sign and Spread this petition which is a result of the nreaking news from today' Wall Street Journal:

http://www.petitionspot.com/petitions/SaveBofA

Petition and Call for Congressional Investigation of Forced Merrill Lynch deal

http://www.petitionspot.com/petitions/SaveBofA

Petition and Call for Congressional Investigation of Forced Merrill Lynch deal

Sign and Spread this petition which is a result of the nreaking news from today' Wall Street Journal:

http://www.petitionspot.com/petitions/SaveBofA

Overseer calls for bank bailout makeover

NEW YORK (CNNMoney.com) -- The $700 billion financial sector bailout needs an oversight makeover, according to a report that an oversight official will present to Congress on Thursday.

Neil Barofsky, special inspector general of the Treasury's Troubled Asset Relief Program, is set to tell members of the Senate Banking Committee that the bank bailout needs tighter regulation, a better investment strategy and new fraud prevention standards.

The committee will hear testimony from the heads of the three key TARP oversight bodies: including Barofsky; Elizabeth Warren, head of the Congressional Oversight Panel; and Gene Dodaro, acting comptroller general of the Government Accountability Office.

In his report, Barofsky says that all TARP agreements must contain stricter oversight language, indicating to all banks in receipt of bailout funds that they should periodically give Treasury an account of how they are using the funds.

Banks have been criticized by lawmakers and the public for not divulging the use of the taxpayer funds they have received. In an earlier report, the Congressional Oversight Panel questioned why Treasury did not require banks to lend, like the British bank bailout program did.

So far, the Treasury has injected into 360 banks nearly $200 billion of the $250 billion allocated for capital injections. It has also sent another $20 billion each to Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500). In exchange, Treasury has collected preferred shares or warrants and amassed a large portfolio of investments.

Barofsky's report says that Treasury needs to develop a strategy for what it wants to do with the investments. Namely, Treasury should figure out how to value its portfolio.

"How long these securities should be held and when ... they should be sold into the market are vitally important questions that implicate not only the taxpayers' return on their investment but also the stability of the markets," Barofsky said in his report.

One of the key new bailout programs - the Term Asset-backed Securities Loan Facility (TALF) - is vulnerable to fraud, waste and abuse, the report said. The Fed-supported and Treasury-backstopped program will buy up securities backed by consumer loans, such as auto loans and credit cards, beginning later this month.

The $200 billion program is intended to increase the availability of loans to consumers, and Treasury dedicated $20 billion of TARP funds to backstop any losses that the government might suffer from the purchases.

Barofsky said purchasing asset-backed securities can be a risky business, because many of the underlying loans have been "overvalued due to fraud or lax underwriting." Recent investigations into the mortgage meltdown have shown that many borrowers falsified information on loan applications, and many others were issued loans under false pretenses or illegal conditions by lenders.

The report said reducing risk on the purchases "is critically important to whether the taxpayers' investment is a sound one." Accordingly, the report recommended that Treasury adopt fraud prevention standards to screen out potential risks. Barofsky also recommended that TALF not include purchases of mortgage-backed securities until a further review.

Treasury has faced much criticism from the three bailout oversight groups, including several Congressional Oversight Panel reports that claim the government's bailout efforts are not working. Many lawmakers voted to halt the release of the second half of the bailout funds, though the motion eventually failed and Treasury received the second $350 billion.

Newly appointed Treasury Secretary Timothy Geithner and President Obama hinted that they may detail a revised bank bailout as soon as this week. The plans are likely to include a program that would relieve banks of troubled mortgage assets, and may also feature promises for additional capital infusions or an offer to guarantee the value of some bank holdings.

http://money.cnn.com/2009/02/05/news/economy/tarp_recommendations/?postversion=2009020503

Overseer calls for bank bailout makeover

NEW YORK (CNNMoney.com) -- The $700 billion financial sector bailout needs an oversight makeover, according to a report that an oversight official will present to Congress on Thursday.

Neil Barofsky, special inspector general of the Treasury's Troubled Asset Relief Program, is set to tell members of the Senate Banking Committee that the bank bailout needs tighter regulation, a better investment strategy and new fraud prevention standards.

The committee will hear testimony from the heads of the three key TARP oversight bodies: including Barofsky; Elizabeth Warren, head of the Congressional Oversight Panel; and Gene Dodaro, acting comptroller general of the Government Accountability Office.

In his report, Barofsky says that all TARP agreements must contain stricter oversight language, indicating to all banks in receipt of bailout funds that they should periodically give Treasury an account of how they are using the funds.

Banks have been criticized by lawmakers and the public for not divulging the use of the taxpayer funds they have received. In an earlier report, the Congressional Oversight Panel questioned why Treasury did not require banks to lend, like the British bank bailout program did.

So far, the Treasury has injected into 360 banks nearly $200 billion of the $250 billion allocated for capital injections. It has also sent another $20 billion each to Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500). In exchange, Treasury has collected preferred shares or warrants and amassed a large portfolio of investments.

Barofsky's report says that Treasury needs to develop a strategy for what it wants to do with the investments. Namely, Treasury should figure out how to value its portfolio.

"How long these securities should be held and when ... they should be sold into the market are vitally important questions that implicate not only the taxpayers' return on their investment but also the stability of the markets," Barofsky said in his report.

One of the key new bailout programs - the Term Asset-backed Securities Loan Facility (TALF) - is vulnerable to fraud, waste and abuse, the report said. The Fed-supported and Treasury-backstopped program will buy up securities backed by consumer loans, such as auto loans and credit cards, beginning later this month.

The $200 billion program is intended to increase the availability of loans to consumers, and Treasury dedicated $20 billion of TARP funds to backstop any losses that the government might suffer from the purchases.

Barofsky said purchasing asset-backed securities can be a risky business, because many of the underlying loans have been "overvalued due to fraud or lax underwriting." Recent investigations into the mortgage meltdown have shown that many borrowers falsified information on loan applications, and many others were issued loans under false pretenses or illegal conditions by lenders.

The report said reducing risk on the purchases "is critically important to whether the taxpayers' investment is a sound one." Accordingly, the report recommended that Treasury adopt fraud prevention standards to screen out potential risks. Barofsky also recommended that TALF not include purchases of mortgage-backed securities until a further review.

Treasury has faced much criticism from the three bailout oversight groups, including several Congressional Oversight Panel reports that claim the government's bailout efforts are not working. Many lawmakers voted to halt the release of the second half of the bailout funds, though the motion eventually failed and Treasury received the second $350 billion.

Newly appointed Treasury Secretary Timothy Geithner and President Obama hinted that they may detail a revised bank bailout as soon as this week. The plans are likely to include a program that would relieve banks of troubled mortgage assets, and may also feature promises for additional capital infusions or an offer to guarantee the value of some bank holdings.

http://money.cnn.com/2009/02/05/news/economy/tarp_recommendations/?postversion=2009020503

Better regulation MUST come into the market if they want all those investors sitting on the sidelines to come back in. Hell, Vegas casinos are better policed. It's become so blatantly obvious that they're playing games.

Yeah, but what happened? Anyone know?

As reported in the Atlantic magazine- and MANY other places...

"The risk is that nationalization becomes a contagious idea and spreads from one bank to the next, acting as a self-fulfilling prophecy. Even mentioning "the N word" scares off private capital, so if the government is not going to nationalize, a precommittment to that effect would be useful.


Subsidies and bailouts, of course, have their own problems, most of all that they cost money. But it also costs money to recapitalize a nationalized banking system. I've yet to see the evidence that the nationalization option would be cheaper. And if nationalization increases the number of banks that require assistance, one way or the other, it could well prove more expensive in the longer run."

Mr Obama and his staff have said multiple times that they are going to be sensitive to the market and have even proposed not taking on more preferred shares in the institutions because it's scaring the common stock holder and affecting share prices.

These reporters ought to do their homework or join the ranks of CNBC!

What the hec happened in the last few minutes?

CLOSED at .73 ???

http://finance.google.com/finance?q=NASDAQ:GTCB

Front page Thursday's Wall Street Journal

http://online.wsj.com/article/SB123379687205650255.html

In Merrill Deal, U.S. Played Hardball

By DAN FITZPATRICK, SUSANNE CRAIG and DEBORAH SOLOMON

Kenneth Lewis is getting a hard lesson in the new balance of power between Washington and Wall Street.
[USA Inc.]

The Bank of America Corp. chairman and chief executive had agreed to buy brokerage giant Merrill Lynch & Co. in September, possibly saving it from collapse. But by early December, Merrill's losses were spiraling out of control. Internal calculations showed Merrill had a horrifying pretax loss of $13.3 billion for the previous two months, and December was looking even worse.

Mr. Lewis had had enough. On Wednesday, Dec. 17, he flew to Washington, ready to declare that he was through with Merrill, people close to the executive say.

"I need you to know how bad the picture looks," Mr. Lewis told then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, according to accounts of the conversation by people inside the government. Mr. Lewis said Bank of America had a legal basis to abandon the deal.

View Interactive

Messrs. Paulson and Bernanke forcefully urged Mr. Lewis not to walk away, praising the bank's earlier cooperation -- but warning that abandoning the deal would be a death sentence for Merrill. They said the move also could undercut confidence in Bank of America, both in the markets and among government officials. Despite the blunt talk, Bank of America executives interpreted the comments as a signal that the government was willing to work out a compromise.

Two days later, in a follow-up conference call, federal officials struck a harder tone. Mr. Bernanke said Bank of America had no justification for ditching Merrill, according to people who heard the remarks. A Federal Reserve official warned that if Mr. Lewis did so and needed more government money down the road, Bank of America could expect regulators to think hard about their confidence in management. Mr. Lewis was told that the government would consider ousting executives and directors, people close to the bank say.

The threats left no doubt: The federal government saw itself as firmly in charge of U.S. financial institutions propped up since October by infusions of taxpayer-funded capital.

During the four weeks that followed Mr. Lewis's conference call, federal officials and Bank of America hashed out a deal to salvage the Merrill takeover. The government agreed to provide $20 billion in additional aid for the Charlotte, N.C., bank, and to provide protection against losses on $118 billion in troubled assets.
[Merrill Lynch]

The money is coming at a price. Six months into the great bailout of U.S. finance, Washington's rescue attempt has helped shore up the system. But that emergency effort, planned on the fly, has taken the government on a risky journey deep into the heart of American capitalism.

Bureaucrats are calling the shots behind the scenes at some of the nation's largest enterprises. Critics of the bailout program say its rules are opaque and its execution ad hoc, leading to a lingering lack of confidence in the financial system. Some lawmakers are scrambling to steer funds to favored lenders.

Federal officials have said little publicly about their oversight of the institutions that received capital from the Troubled Asset Relief Program. Initially, the government seemed reluctant to use the ownership stakes it got in banks ranging from J.P. Morgan Chase & Co. to Saigon National Bank as leverage over bank executives.

Front page Thursday's Wall Street Journal

http://online.wsj.com/article/SB123379687205650255.html

In Merrill Deal, U.S. Played Hardball

By DAN FITZPATRICK, SUSANNE CRAIG and DEBORAH SOLOMON

Kenneth Lewis is getting a hard lesson in the new balance of power between Washington and Wall Street.
[USA Inc.]

The Bank of America Corp. chairman and chief executive had agreed to buy brokerage giant Merrill Lynch & Co. in September, possibly saving it from collapse. But by early December, Merrill's losses were spiraling out of control. Internal calculations showed Merrill had a horrifying pretax loss of $13.3 billion for the previous two months, and December was looking even worse.

Mr. Lewis had had enough. On Wednesday, Dec. 17, he flew to Washington, ready to declare that he was through with Merrill, people close to the executive say.

"I need you to know how bad the picture looks," Mr. Lewis told then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, according to accounts of the conversation by people inside the government. Mr. Lewis said Bank of America had a legal basis to abandon the deal.

View Interactive

Messrs. Paulson and Bernanke forcefully urged Mr. Lewis not to walk away, praising the bank's earlier cooperation -- but warning that abandoning the deal would be a death sentence for Merrill. They said the move also could undercut confidence in Bank of America, both in the markets and among government officials. Despite the blunt talk, Bank of America executives interpreted the comments as a signal that the government was willing to work out a compromise.

Two days later, in a follow-up conference call, federal officials struck a harder tone. Mr. Bernanke said Bank of America had no justification for ditching Merrill, according to people who heard the remarks. A Federal Reserve official warned that if Mr. Lewis did so and needed more government money down the road, Bank of America could expect regulators to think hard about their confidence in management. Mr. Lewis was told that the government would consider ousting executives and directors, people close to the bank say.

The threats left no doubt: The federal government saw itself as firmly in charge of U.S. financial institutions propped up since October by infusions of taxpayer-funded capital.

During the four weeks that followed Mr. Lewis's conference call, federal officials and Bank of America hashed out a deal to salvage the Merrill takeover. The government agreed to provide $20 billion in additional aid for the Charlotte, N.C., bank, and to provide protection against losses on $118 billion in troubled assets.
[Merrill Lynch]

The money is coming at a price. Six months into the great bailout of U.S. finance, Washington's rescue attempt has helped shore up the system. But that emergency effort, planned on the fly, has taken the government on a risky journey deep into the heart of American capitalism.

Bureaucrats are calling the shots behind the scenes at some of the nation's largest enterprises. Critics of the bailout program say its rules are opaque and its execution ad hoc, leading to a lingering lack of confidence in the financial system. Some lawmakers are scrambling to steer funds to favored lenders.

Federal officials have said little publicly about their oversight of the institutions that received capital from the Troubled Asset Relief Program. Initially, the government seemed reluctant to use the ownership stakes it got in banks ranging from J.P. Morgan Chase & Co. to Saigon National Bank as leverage over bank executives.

Forbes: Where's All The TARP Money?
Liz Moyer, 02.05.09, 12:01 AM ET

http://www.forbes.com/2009/02/04/tarp-treasury-congress-business-beltway_0205_tarp_print.html

The watchdog for the Troubled Asset Relief Program will push banks and other companies that got federal bailout money to detail what they plan to do with it. Why? The government hasn't asked.

According to a new report issued early Thursday, 317 financial firms have received $194.2 billion in TARP funds from the U.S. Department of the Treasury since October, but only two of them--Citigroup and Bank of America--were required to say what they would do with it the money. As of Jan. 23, $293.7 billion of TARP funds have already been spent, the report says.

Neil Barofsky, TARP's special inspector general, will ask companies to detail their planned use of the funds, including how they plan to comply with executive compensation rules. He will also ask the companies to document how the funds were used and to give the inspector general's office accuracy certifications.

One big criticism of the $700 billion TARP program since it began in October is the general lack of understanding of how the program is being run and where the money is going. The government designed it to kick start the credit markets by getting banks to lend again, but evidence from the regulators themselves shows banks have been hoarding cash, guarding capital and tightening lending.

"What remains almost entirely opaque, however, is what has been done with the TARP money," Barofsky says in January letter to Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee. "If the American taxpayer is to be expected to fund this extraordinary effort to stabilize the financial system, it is not unreasonable that the public and its representatives in Congress have some understanding as to how those funds have been used by the recipients."

Barofsky tries to lift the veil on the TARP program in a 188-page report to be released early Thursday morning. He will testify to the Senate Banking Committee about the report later Thursday morning.

The report details what the Treasury has spent so far in the TARP program, for which Congress authorized up to $700 billion. In addition to the $194.2 billion spent on direct equity investments in banks, $40 billion funded a program to shore up American International Group, $52.5 billion was set aside to shore up Citi and Bank of America, and $20.8 billion was earmarked for Detroit automakers.

In return for the investments, Treasury is getting preferred shares and warrants. So far it has received $279.2 billion worth of preferred shares. Through January, five banks have paid a total of $271 million in dividends on preferred shares (JPMorgan Chase paid the most, $114.5 million).

The report comes days before Treasury Secretary Timothy Geithner is set to reveal his plans for the remaining $300 billion or so of TARP funds not already spoken for. Talk in Washington sees the Treasury pedaling back to the TARP's original mission of buying assets from banks and guaranteeing some other assets.


Barofsky raises concerns about the potential for fraud in the program, including the fact that compliance is now limited to signed certifications. The Treasury and the Fed are working on how to strengthen fraud prevention for TALF, including screening for the pools of asset-backed securities pledged as collateral and an agreement to let the Fed inspect those who borrow in the program.

The inspector general warns the Treasury not to participate in TALF (the $20 billion in TARP funds is going to fund the purchase of the collateral for the Fed) until a stronger compliance program can be designed. Good idea.

Bank of America to sell three jets and Merrill's helicopter

http://www.ft.com/cms/s/0/01d06bfc-f325-11dd-abe6-0000779fd2ac.html

Published: February 5 2009 02:00 | Last updated: February 5 2009 02:00

Bank of America is selling three corporate jets from its fleet, as well as a helicopter it acquired through its purchase of Merrill Lynch, the company said yesterday.

In addition, the bank is believed to be trying to sell one of its corporate apartments in New York, according to a source familiar with the matter.

The dramatic downsizing came on a day when the bank's share price dipped below $5 for the first time since 1990, raising questions about whether the bank would need yet another infusion of federal funds to its capital base.

The bank decision to pare down its fleet of jets comes in the wake of a furore over Citigroup's disclosure last month that it would take delivery of a new corporate jet, even though the bank has received more than $45bn in capital injections from the US government, and guarantees of support for almost $300bn in questionable assets.

After lawmakers and corporate governance experts expressed outrage over Citi's aircraft, the bank announced that it would cancel the order.

BofA received $25bn in government funding last year, and another injection of $20bn last month in order to complete its purchase of Merrill. The additional government funding has drawn scrutiny of every expenditure at the bank. Merrill's decision to pay out cash bonuses to its employees in late December, after recording $41bn in operating losses for 2008, has also been questioned.

Earlier this week, in response to a request from the Financial Times, a BofA spokesman said he was not aware of any changes in the size of the bank's fleet. But yesterday, the spokesman said: "As part of an ongoing cost reduction effort, we have been scaling back on our use of corporate aircraft, including selling three aircraft we own, and the Merrill Lynch helicopter."

However, the cutbacks will by no means ground "BofA Airways". The bank is reported to have had nine corporate jets registered to it as of December. Also, through its purchase of Merrill Lynch, BofA acquired the helicopter and a Bombardier Global Express jet. BofA plans to keep the jet which is said to be worth $50m, says an executive at the bank.

BofA owns a company apartment in the Time Warner Center in Manhattan. But a source familiar with the matter says the bank will sell a different apartment in New York.

Bank of America's shares were lower yesterday at $4.70, down 11 per cent.

Reuters: (New article about old subject) why now?

NEW YORK, Feb 4 (Reuters) - Federal officials pushed Bank of America Corp (BAC.N) hard to complete its acquisition of Merrill Lynch even as credit losses mounted at the troubled investment bank, the Wall Street Journal reported on Wednesday, without citing any named sources.

Bank of America arguably saved Merrill from collapse in September when it quickly struck a merger agreement the same weekend Lehman Brothers went bankrupt.

By December, as Merrill's losses were soaring, BofA Chief Executive Ken Lewis told U.S. Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke he was having second thoughts, the paper said, according to people close to Lewis.

But Paulson and Bernanke on Dec. 17 "forcefully urged Mr. Lewis not to walk away," the paper reported. They warned Lewis that if the deal collapsed, Merrill could be doomed and that their confidence in Bank of America would be "undercut."

Days later, Bernanke told Lewis Bank of America had no grounds to walk away, the Journal reported, citing people who heard the remarks. Another Federal Reserve official warned that if Lewis did walk away and later needed more government money, regulators might consider ousting executives and directors, people close to the bank say.

During the four weeks that followed, federal officials and Bank of America worked out a deal to preserve the Merrill deal. The government agreed to provide $20 billion in additional capital for the bank and to insure against losses on $118 billion in troubled assets.

Officials from the bank and from the government could not be reached immediately for comment on events described by the Journal report.

Bank of America previously received $25 billion as one of nine U.S. banks that kicked off the Troubled Asset Relief Program, or TARP, last fall.

Bank of America's Lewis has come under fire in recent weeks after his bank announced much larger than expected losses from Merrill and revealed it was receiving a second capital injection. [ID:nN16253682]

The bank's stock price has been hammered as shareholders, who were asked to approve the merger in December, complain they should have been warned about Merrill's woes earlier. (Reporting by Joseph A. Giannone; Editing by Anshuman Daga)

http://www.reuters.com/article/marketsNews/idINN0447844220090205?rpc=44

Heads of 10 bailed-out banks took home $200 million in 2007

http://www.kansascity.com/444/story/1017885.html

However you count their stock options, bonuses and perks, the chief executives of 10 banks that have gotten at least $161 billion in federal bailout money were doing swell the last year in which their income was publicly disclosed.

Together, they earned more than $200 million in 2007.

President Barack Obama signaled what could be the end of those heady days of lofty executive pay at failing companies with a brief announcement on Wednesday, limiting the brass at the worst-hit companies to half a million dollars in total annual compensation.

Experts say that if the mood in Congress is any indication, disclosures that failing banks have used bailout money hold lavish conferences and pay $18 billion in bonuses could lead to legislation that will finally deter exorbitant pay on the top rungs of the corporate ladder.

Bank of America Chief Executive Ken Lewis had a base salary of $1.5 million, but earned between $16.4 million and $24.8 million in 2007, depending on how his stock options, incentive pay and other extras are tabulated. Now, under the pending rules described by the Treasury Department Wednesday, he would be limited to $500,000 and barred from pocketing deferred rewards until the Charlotte, N.C., bank repays the $40 billion it's borrowed from taxpayers.

Same goes for Vikram Pandit, the head of Citigroup, which received at least $45 billion from the Treasury Department last year to avoid collapse. Pandit, whom New York-based Citigroup hired after buying his highflying hedge fund for an estimated $600 million in 2007, may have to get along in the Big Apple with total pay of $500,000.

Citigroup reported Pandit had a salary of $250,000 in 2007 and total compensation of $573,813. The Wall Street Journal, however, using an independent consultant to analyze proxy statements and other Securities and Exchange Commission filings, estimated his total compensation at $5.66 million.

Obama's decision tightened the screws on companies such as Citigroup and Bank of America that sought and might in the future need "exceptional assistance" under Treasury's bailout program, known as the Troubled Asset Relief Program. Those banks were singled out because they came back for a second dip.

Earlier Treasury Department rules prohibited those needing the biggest bailout aid from taking tax deductions of more than $500,000 of an executive's pay and barred their top five senior executives from receiving "golden parachutes" - hefty pay packages when they're fired or quit. The new rules not only impose the pay cap, but also expand the ban on parachutes to the top 10 executives, limit the next 25 highest executives to receiving one year's compensation. And they require corporate boards of those companies to adopt rules for "clawing back" bonus pay from executives caught cooking the books.

Most important to shareholders' rights groups, companies needing "exceptional" federal aid must fully disclose their senior executive pay structure and submit it to stockholders for a nonbinding resolution. While an Illinois senator, Obama sponsored similar legislation to give investors a "say to pay."

"The Obama administration has now enlisted every American shareholder into a posse to oversee the outlaws on the executive compensation front," said Patrick McGurn, special counsel to the RiskMetrics Group, which advises large institutional investors on corporate governance issues.

He predicted that legislation requiring all companies to give shareholders such a say would soon move in Congress.

Bank of America declined to comment Wednesday on the Treasury's new pay limits. However, Lewis has said that he and his top executives will "share in the pain" and receive no bonuses for 2008.

Bank of America CEO Says Results Are ‘Encouraging’

http://www.bloomberg.com/apps/news?pid=20601103&sid=a7BcZjewSzMA&refer=news

Feb. 4 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth Lewis told employees that his management team and strategy have the board’s support and January results were “encouraging” as turmoil in the credit markets eased.

“The board unanimously endorsed our business model, strategic direction and the team,” Lewis said in a Feb. 2 memo to employees that was confirmed by Scott Silvestri, a spokesman for the Charlotte, North Carolina-based bank. “The burden of execution and accountability, as always, rests squarely on our shoulders to vindicate their confidence in us.”

Bank of America, the biggest U.S. bank by assets, lost $1.8 billion in the fourth quarter, its first deficit since 1991, because of writedowns of securities backed by mortgages and increasing defaults on loans to consumers and businesses. Investors have pressed the board to replace Lewis, the CEO since 2001, after his acquisitions of Countrywide Financial Corp. and Merrill Lynch & Co.

“At least for the moment, the extreme dislocations in the capital markets we suffered last quarter seem to have moderated,” Lewis said. “Credit costs continue to be a big issue, as we expected.”

The bank plans to trim $7 billion in annual expenses through the Merrill Lynch merger and has announced plans to cut up to 35,000 employees over the next three years. The bank had 243,075 employees at the end of 2008.

Taking Hits

“We also made cuts on a highly progressive basis, meaning that higher-ranking managers with larger incentive targets took progressively larger hits in relations to more junior associates,” Lewis said in the memo. Lewis and executives reporting directly to him won’t get bonuses this year, he said.

Most of Merrill’s senior executives have left since the Jan. 1 acquisition, including CEO John Thain, Greg Fleming, head of investment banking, and Robert McCann, who led the wealth- management unit. Bank of America’s board added three former Merrill directors, expanding to 19 members.

Bank of America fell 60 cents, or 11.3 percent, to $4.70 as of 4:07 p.m. New York time in New York Stock Exchange composite trading. Earlier today, it hit $4.62, its lowest since October 1990. It has plummeted 67 percent this year.

To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net

Scary times!