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The Mother of All Central Banking Challenges
by: James Picerno posted on: June 25, 2008 | about stocks: DIA / QQQQ / SPY / XLF Font Size: PrintEmail The market expects no change in the current 2.0% Fed funds rate at this afternoon's FOMC announcement. Looking out over the second half of this year, however, the Fed funds futures market anticipates higher rates.
The December '08 contract is currently priced with a 50-basis point hike to 2.5% in mind. It's anyone's guess if that forecast will hold, or if it's even worthy of pursuit. Meantime, the central bank continues to grapple with the twin risks of inflation and deflation, as Martin Wolf writes in today's Financial Times: "Two storms are buffeting the world economy: an inflationary commodity-price storm and a deflationary financial one."
It's not yet obvious that the Fed and other central banks are up to the job of collectively navigating the complex macroeconomic waters that define and threaten the global economy in 2008 and beyond. But resolving this challenge, or not, will determine much of what unfolds in the years ahead. The central banks, in short, have their work cut out for them. Hanging in the balance: trillions of dollars of investments, the outlook for the global economy and the livelihoods of the planet's workforce.
Alas, cracking this nut isn't going to be easy. For one thing, much of the experience in central banking is dealing with inflation fighting alone, occasionally interrupted by an outright bout of deflation, as during the Great Depression in the 1930s and Japan for much of the past 20 years. Battling both at once is a rare event, which is to say that the Fed's experience in dealing with such a beast is relatively thin.
Experienced or not, that's the predicament du jour. On the one hand, inflation is bubbling. Although absolute levels of prices generally are rising by historically modest standards, the fact that the trend has been up for some time sends a warning signal that central banks can't, or at least shouldn't ignore indefinitely.
But while inflation bubbles, demand destruction appears to be gaining momentum too. The latest examples include yesterday's news on tumbling home prices and plunging consumer confidence.
The hope remains that the demand destruction will derail any inflationary spiral, leaving the economy in relatively good shape for the next upturn. That, at least, has been the Fed's strategy: lower interest rates sharply without fear that the cuts will spark lasting inflation, courtesy of the demand destruction.
It's a nice theory, and it may yet work out. But what if it doesn't? What if inflation doesn't recede and demand destruction continues apace? That's called stagflation, and it's a central banker's worst nightmare. And for good reason: there's precious little track record in the history of monetary policy for overcoming the problem. One exception of a sort was during the Volcker tenure in the early 1980s, when political considerations were cast asunder and an all-out effort to break inflation's back were embraced directly and forthrightly. Of course, winning the war over inflation came at a temporarily hefty price in terms of demand destruction, a fact that only reminds that central banks aren't really up to the task of fighting a two-front war.
But ready or not, the twin fronts are here. Further complicating matters is the necessity of fighting the war on a global basis. In a globalized economy, the benefits as well as the challenges are spawned by the U.S., Europe, Asia and Latin America together. As such, the proper policy responses ultimately must come in concert too. Indeed, now that globalization has taken root, the rules can't be temporarily suspended for central bankers.
That doesn't mean that all central banks should be doing the same thing at the same time. In fact, one could argue that an enlightened and effective policy of central bank coordination these days demands a mix of policy responses that are at once appropriate for the home country while positively supportive of the best interests for the global economy. So it goes in a world that has multiple currencies, multiple monetary policies, multiple economic trends, and multiple inflation rates.
But while the case for coordinated action is strong, it's not clear that it's imminent or that the central banks are up to the multi-dimensional task. This is not the challenge of yore, such as the Plaza Accord of the 1980s, when the objective was simply driving down the dollar vis a vis the Deutsche mark and yen. In many ways, that was a one dimensional task with clear objectives and an obvious path to success.
By contrast, today's challenge is multi-faceted, with objectives including:
* lower inflation
* enhance growth prospects for the global economy
* reduce the trade imbalances between the U.S. and Asia
* soften the pain from the ongoing corrections in the real estate and financial markets but without promoting too much growth, which could ignite even higher commodity prices, which in turn could elevate inflation
* and all the while keep the dollar--the world's reserve currency--from crashing
Perhaps success on those fronts is possible only in a world with one global central bank overseeing one global currency. Alas, ours is a world with many central banks, which share conflicting agendas and a range of political pressures that don't always inspire an intelligent monetary policy. Like it or not, this is the world we live in, and the future begins now.
Countrywide shareholders approve takeover by BofA
Wednesday June 25, 12:35 pm ET
By Alex Veiga, AP Business Writer
Countrywide Financial shareholders approve takeover by Bank of America
LOS ANGELES (AP) -- Countrywide Financial Corp. says stockholders controlling a majority of the mortgage lender's outstanding shares have approved the company's takeover by Bank of America Corp.
Countrywide says more than 69 percent of outstanding shares were voted Wednesday in favor of the transaction at a stockholders meeting in Calabasas, Calif.
The lender says the deal is expected to close on July 1.
Countrywide agreed to sell itself in January for about $4 billion in stock. The deal is now valued at about $2.8 billion, reflecting a decline in Bank of America's stock price over the past six months.
You think? lol
Yep...Like leading the Sheep to slaughter....Makes one stop & think
lol..."Analysts probably have less credibility than they did 10 years ago," said author and finance teacher Charles Geisst. "This has just eroded it a little bit more."
You think?
BZH 6.00 9.89% HOV 6.55 7.83% TOL 20.75 5.17% Fed day is always a good day for Homebuilders...
UVE 3.58 7.51%
CFC 4.78 2.45%
BAC 27.71 4.09%
SA:Thoughts on a Possible Economic Crash
by: Andy So posted on: June 25, 2008 | about stocks: ABK / MBI Font Size: PrintEmail There are a number of startling factors for investors to consider when evaluating the possibility of a larger looming economic crisis. A few authors have guessed that the majority of writedowns are now done and that the worst may be past us. From the most recent news, I believe we may extend losses past the most recent credit crises fueled by collateralized debt. We may soon face a banking crisis larger than the Savings and Loan crises of the late 1980’s.
Here are a few factors to consider:
1) The Fed may increase interest rates in the near future. An increase in rates is bullish for the dollar and necessary to fight inflation. An increase would add tremendous pressure to an already fragile housing market by making payments on adjustable rate mortgages more expensive. Increases would also make borrowing more expensive and would restrict access to already tight credit. The potential impact of rate increases is unknown.
2) Any failure in the derivatives market would signal the beginning of an imminent crash. Estimates vary wildly over the total value of the derivatives market. The Financial Times recently estimated that the size of the derivatives markets stood at roughly $450 trillion dollars. As of December 2007, The Bank of International Settlements estimated that the amount of listed credit derivatives, i.e. tradable in some form through an exchange, stood at roughly $548 trillion. The amount of OTC derivatives was estimated at $596 trillion notional value. This brings the total derivatives estimate by The Bank of International Settlements to 1,140 trillion.
Taken from Investopedia:
[A]…derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.
Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Because derivatives are just contracts, just about anything can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.
Due to the complex structure of derivatives, it becomes very difficult to evaluate the underlying assets of many derivatives. Problems in the industry could lead to massive derivative writedowns by banks. Derivatives could form an extension of the collateralized debt obligation [CDO] and mortagage backed security [MBS] problems that fueled most of the recent writedowns by financial institutions. If there are too many sellers and not enough buyers in the derivatives market, investments become stagnant and pose the possibility of devaluation if anxious sellers seek to cash out.
My guess is that the derivatives estimate from The Bank for International Settlements is the most accurate. Taken from The Bank of International Settlements website: The Bank for International Settlements [BIS] is an international organization which fosters international monetary and financial cooperation and serves as a bank for central banks. The bank was established on May 17th, 1930 and is headquartered in Switzerland. BIS is the world’s oldest international financial organization and currently includes 55 member central banks.
3) Leverage is out of control. As we learned from the Bear Stearns Crash, leverage can turn against you very quickly. Bear Stearns leveraged 11.8 billion to control a balance sheet of 395 billion. Carlyle Capital leveraged its balance sheet 32 times to own $21.7 billion in mortgage backed securities, primarily AAA-rated bonds guaranteed by Fannie Mae (FNM) and Freddie Mac (FRE). Carlye Capital’s portfolio was backed by just $670 million in equity. The problem of leverage is prominent by all major big balance sheet banks such as Goldman Sachs (GS) and JPMorgan Chase (JPM) is very real as they provide access to credit and frequently loan money between each other. Any devaluation of assets or calls for more collateral on loans could lead to forced margin calls and major additional writedowns for banks.
4) Credit ratings on bond insurers Ambac (ABK) and MBIA (MBIA) fall. Ockham Research wrote on February 28th, 2008:
“Citigroup (C), Wachovia (WB), and UBS (UBS) among others need to keep Ambac healthy as the ripple effect from an Ambac bankruptcy would be massive. Oppenheimer estimates that the major banks have $70 billion of exposure to Ambac and the bonds they insure.
Clearly, Ambac losing its credit rating of AAA or declaring bankruptcy would be catastrophic. If the worst were to occur it would make the housing crisis pale in comparison. The banks act as underwriters for billions of dollars in corporate bonds of which Ambac and MBIA are the two main insurers.”
Banks like UBS (UBS), Citigroup (C) and Merrill Lynch (MER) buy bond insurance as a hedge from Ambac and MBIA. If the insurer were to go out of business, 100% of the default risk is exposed to the bank. Banks have taken insurance on trillions of dollars of collateralized debt obligations and other mortgage backed securities. The potential impact of bond insurers going out of business for banks is tremendous. Market Watch is reporting that Ambac’s drop from AAA to AA is going to cost UBS, Citigroup and Merrill Lynch an estimated additional $10 Billion in new writedowns. This is money that the banks can’t afford to continue losing.
5) The Fed is printing money at an ever quicker pace. I’ve covered most of this in my previous article on How to Predict the Price of Goods. An increase in the money supply helps to alleviate access to credit and offers additional available cash to banks in the form of Fed loans. Increases also lead to an inflationary economy and possible drop in the dollar.
6) Inflation is out of Control. Basic necessities like food and energy prices have skyrocketed 300% or more in recent years.
7) Eli Hoffman reported that financial performance of mutual funds in 2008 may be worse than the year of the .com crash. Eli writes that “As of January, 2007, nearly 1,400 mutual funds were earning 15% or more. This January, just 270 funds hit that number — an 80% decline. From December 2000 to December 2001 — the bursting of the tech bubble — the 12-month drop was only 57%.”
There are many situations that may play out. The extreme economic collapse would be a failure of the banking system that would mean massive bank runs and a large devaluation of the dollar. Since the risk of an economic crash is very real, and may be the worst since the great depression, I am continuing to recommend cycling into physical assets and a diversified portfolio of non-cash assets.
Food for thought: Stocks and bonds are held in a clearing account by your bank or brokerage. If a bank run causes you to lose your money, eventually your stocks and bonds will be returned to you since technically they can be delivered in the form of stock certificates and paper contracts. Picking the correct recession resistant investments will be key to preserving capital in the event of an economic crash.
The good news is that if we are able to quickly emerge from a recession, every post economic recovery has lead to higher wages and asset appreciation. This has been true all the way from the Great Depression to the .com lead recession.
*Disclaimer: The author does not own a position in any of the stocks above.
Fed talking tough on the threat of inflation
Wednesday June 25, 9:31 am ET
By Martin Crutsinger, AP Economics Writer
Fed likely to keep interest rates unchanged but employ tough talk about inflation threats
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke and his colleagues, concluding a two-day meeting, are expected to keep talking tough about inflation while stopping short of actually doing anything, at least right away.
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The Fed is widely expected at the conclusion of Wednesday's discussions to express more concerns about inflation and in that way signal that rate increases could be on the way later this year.
However, at the same time, private economists are in agreement that the Fed will not actually start raising interest rates at this week's meeting, given how weak the economy is at the moment.
"The Fed is caught between a rock and a hard place," said Sung Won Sohn, an economics professor at California State University. "The economy seems to be slipping into a recession at the same time that inflation is getting worse."
In economic news Wednesday, the Commerce Department reported that orders to factories for big-ticket durable goods were unchanged in May as strength in aircraft and cmputers was offset by widespread weakness in other areas.
The Conference Board reported Tuesday that its gauge of consumer sentiment dropped in June to the lowest reading in 16 years as soaring gas prices, rising unemployment and sinking home values continued to batter Americans.
The opposing forces of weak growth and recession put the central bank in a bind. Its main policy tool -- changes in interest rates -- can only address one of those problems at a time. The Fed can cut interest rates to spur consumer and business spending and economic growth or it can raise interest rates to slow spending and growth and ease inflation pressures.
From September through April, the Fed aggressively cut interest rates seven times in an effort to keep a severe credit crunch and prolonged housing slump from pushing the country into a deep recession.
However, after a series of sizable rate cuts as the credit crisis was roiling global financial markets at the beginning of this year, the Fed at its last meeting in April reduced rates by a more modest quarter-point. That pushed the federal funds rate, the interest that banks charge each other, down to 2 percent. The funds rate had been at 5.25 percent before the central bank began cutting rates on Sept. 18.
If the Fed leaves the funds rate unchanged, it will mean that commercial banks' prime lending rate, the benchmark for millions of business and consumer loans, will remain unchanged as well at 5 percent, the lowest it has been since late 2004. It will be the first Fed meeting without any change in interest rates since August.
While a stand-pat rate decision is widely anticipated, financial markets will be closely watching exactly how Bernanke and his colleagues explain their views about economic conditions. Investors will be searching for clues on whether the Fed is feeling increasing pressure to start raising interest rates in light of soaring prices for oil, food and other commodities.
In a speech on June 9, Bernanke took a tough line on inflation, saying that the Fed would "strongly resist an erosion of longer-term inflation expectations." Those comments and tough talk from other Fed officials unnerved investors who went from thinking the Fed might leave rates unchanged for most of this year to starting to worry that rate hikes could begin this summer.
It also left some economists grumbling that once again the Bernanke Fed was unnecessarily roiling markets.
"When it comes to clearly communicating policy intentions to financial markets, the Bernanke Fed has been the gang that can't shoot straight," said Stephen Stanley, chief economist at RBS Greenwich Capital.
Other analysts, however, said it might have been Bernanke's intent to send out a strong anti-inflation warning, especially since it was coupled with a comment in an earlier speech about the Fed chief's concerns that the weak dollar was adding to U.S. inflation problems. The remarks taken together had the impact of bolstering the dollar, which had been tumbling.
Bernanke was assisted in his efforts to talk up the value of the dollar by President Bush and Treasury Secretary Henry Paulson as the administration has grown worried that the dollar's weakness has contributed to the big jump in oil prices, which are priced in dollars.
Some economists saw the comments by Bernanke and his colleagues as an effort to convince the markets that the central bank is serious about fighting inflation without having to start raising interest rates at a time when the economy remains very weak.
"It is a tricky thing that the Fed is trying to pull off here, trying to keep rates low enough to help the economy while not igniting rising inflation expectations," said Mark Zandi, chief economist at Moody's Economy.com.
The last thing the central bank wants is a repeat of the 1970s, when successive oil price shocks did trigger a wage-price spiral that sent inflation soaring and was only subdued when the Fed under Paul Volcker pushed interest rates to levels not seen since the Civil War.
"In the 1970s, the Fed allowed inflation expectations to get out of control. The central bank does not want that to happen again," said David Jones, head of DMJ Advisors, a Denver-based consulting firm.
UVE 3.55 ^6.61%
BAC 27.39 2.89%
cfc 4.78 2.58%
Analyst: WaMu could avoid raising more capital
By Riley McDermid
Last update: 8:17 a.m. EDT June 25, 2008Comments: 1
NEW YORK (MarketWatch) - Ladenburg Thalmann bank analyst Dick Bove on Wednesday said Washington Mutual Inc. (WM:Washington Mutual Inc
News, chart, profile, more
Last: 6.00+0.20+3.45%
9:37am 06/25/2008
WM 6.00, +0.20, +3.5%) may be able to bear $36 billion in losses and still remain in business without raising capital. Bove said the $10 billion in new funds raised by the bank since December could cover $15 in pretax losses, while the $4 billion the bank has in reserves could cover an additional $19 billion of losses. "I estimate that over the next three years, the thrift will generate $17 million in pretax, pre-provision earnings, " Bove wrote in a research note, which could leave the thrift well-positioned to weather possible capital trouble. Bove trimmed his 2008 earnings per share estimate for WaMu to a loss of $3.03 from previous estimate of a loss of $3.61. WaMu shareholders on Tuesday approved two proposals related to its recent $7 billion cash infusion
CFC 4.73 1.50%
BAC 27.15 +1.95%
World now has 10 million millionaires, report says
Tuesday June 24, 5:39 pm ET
By Candice Choi, Associated Press Writer
The millionaire club grows to more than 10 million, and the rich are getting much richer
NEW YORK (AP) -- Add an extra zero to the ranks of the millionaires club.
The number of people around the world with at least $1 million in assets passed 10 million for the first time last year, according to a new report. And their bank accounts are growing even faster.
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The combined wealth of the globe's millionaires grew to nearly $41 trillion last year, an increase of 9 percent from a year before, Merrill Lynch & Co. and consulting firm Capgemini Group said Tuesday.
That means their average wealth was more than $4 million, the highest it's ever been. Home values were not included in asset totals.
"The growth of their wealth is outpacing the growth of their population, and that's a trend that's going to continue in coming years," said Ileana Van Der Linde, a principal with Capgemini.
The ranks of the wealthy are growing fastest in the developing economies of India, China and Brazil. The number of millionaires in India grew by about 23 percent.
The United States still reigns supreme when it comes to fat wallets, though: One in every three millionaires in the world lives in America. Combined, Africa, the Middle East and Latin America account for just one in 10.
All told, there were about 600,000 more millionaires in the world in 2007 than in 2006, for a total of about 10.1 million. That's a 6 percent increase from the previous year.
Ten million may seem like a big number for such an elite club, but it still represents less than one-fifth of 1 percent of the world's 6.7 billion people.
The rarefied group of the superrich -- those with at least $30 million in assets -- got richer, too. There were 103,000 of them around the world last year, 9 percent more than the year before, and their wealth grew by nearly 15 percent.
The 600,000 new millionaires was unsurprising to Brian Bethune, an economist with Global Insight, who said inflation and the expansion of the world economy accounts for the growth.
Besides, $1 million isn't what it used to be. One million dollars in 1996, the first year the report was issued, would have been worth about $1.3 million last year, Van Der Linde said.
Steady growth powered economies worldwide in the first half of 2007, but more mature markets were hammered in the second half by the U.S. housing and credit crises. Emerging economies were largely unaffected, the report found.
The downturn started catching up with emerging economies in the beginning of 2008, Van Der Linde said.
Already, the report found, the millionaires club wasn't expanding as fast as before. From 2005 to 2006, the group swelled by more than 8 percent. The club has grown every year since the report was started.
Because of the economic slowdown, the wealthy tended to shift their money to safer investments such as bonds and money-market savings accounts, and away from less stable investments such as real estate, the report found.
Cash deposits and fixed-income securities accounted for 44 percent of the assets of the world's millionaires, up from 35 percent in 2006.
The wealth of the world's richest is projected to reach almost $60 trillion by 2012, the report said.
Merrill Lynch: http://www.merrilllynch.com
Capgemini: http://www.capgemini.com
lol....Yep!
Illinois to sue Countrywide; BofA’s big tax break
There are some new wrinkles in Bank of America’s (BAC) plan to buy struggling mortgage lender Countrywide (CFC). Illinois’ attorney general is planning to sue Countrywide, claiming the mortgage lender misled consumers and eased its lending standards to pump up loan volume, boosting its profits. The suit is expected to be filed in state court Wednesday, asks the court to rescind or reform questionable loans written in the state over the past four years, The New York Times reports.
The news comes as Countrywide shareholders prepare to vote on Bank of America’s $2.8 billion takeover plan. Countrywide investors are expected to approve the merger, which stands to rescue the Calabasas, Calif., lender from rising problems in its mortgage portfolio and questions about its business practices. Worries that the Countrywide deal will saddle Bank of America with heavy loan losses and legal bills have pulled BofA shares down 30% since the deal was struck in January. But a Bloomberg report Wednesday says not to worry: Taxpayers, via tax write-offs available to Bank of America, are actually footing the bill, to the tune of as much as $5 billion over 20 years, according to accounting watchdog Robert Willens.
“Ken Lewis got a break,” Willens said, referring to Bank of America’s chief. “What these losses do is reduce the effective cost of the deal so the headline price isn’t really what they’re paying. It’s entirely possible that the entire equity purchase price could be financed by tax savings.” Whether those savings can offset the hit BofA’s reputation may take in future Countrywide litigation remains to be seen.
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The lawsuits by states on behalf of their residents are just the beginning as I’m sure many Attorneys General will sue Countrywide for their unethical practices. I wouldn’t be surprised if the US Attorney General sues them as well for the fraud they perpetuated in Bankruptcy Proceedings. Bank of America is and will be in for a surprise if they haven’t done their due diligence.
Posted By Mike from NYC : June 25, 2008 9:06 am
Again this is just another ploy to undermind and derail the impending merger between the two companies. The fact remains, borrowers entered into these transactions with both eyes wide open. If the borrowers didnt understand the term of the loan then more questions needed to be asked and if the answers were still not to their liking then then they shodl hav sought additionla help outside of their discussions with the loan officer. Why is it that we keep blaming Countrywide. It’s the responsibility of the borrower to make sure that they understand the terms. No one held a gun top to their head and made them sign the loan documents. Every borrower has the right to leave the closing table if they are uncomfortable with the terms. That being said, one piece of the puzzle that no one has mentioned yet is the Title company. The title companys’ responsibility is to make sure that the term and conditions of the loan are explained in detail and that the closer checks for understanding. If the closer just glances over the terms and dosent explain how a particular portion of the loan can effect them then the Title co. is not doing their job. The title company is the stop gap in the process. The double edged sword here is that the title company dosent make any money if the loan dosent close. The more loans that are closed, the more money is made by the title company.
Posted By Fred, Sarasota, FL. : June 25, 2008 8:18 am
GM! Just a short trip....Flew down to Seminole HardRock over the weekend for their Table Grand Opening....
Angelo's Ashes
Wednesday June 25, 8:00 am ET
Countrywide Financial is becoming more of an embarrassment for Bank of America just days before it completes a takeover of the mortgage lender.
At the same time, the Senate is pushing ahead with sweeping legislation on housing while facing questions about why some of its members received below-market-rate mortgages from Countrywide.
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As first reported by Daniel Golden on Portfolio.com, the primary author of the Senate bill, Christopher Dodd, Democrat of Connecticut, as well as Senator Kent Conrad, Democrat of North Dakota, refinanced properties through Countrywide's V.I.P. program in 2003 and 2004.
The Senate vote on the bill may come as soon as today.
Also today, Countrywide shareholders will vote on the all-stock acquisition, initially valued at $4 billion, but now significantly less than $3 billion, thanks to a decline in shares of Bank of America. The deal could close as soon as July 1.
Hanging over both events is the growing questions and investigations into how Countrywide does business. Today, the attorney general of Illinois plans to sue Countrywide and its chief executive, Angelo Mozilo, contending that the company engaged in deceptive trade practices in lending.
The complaint, reports Gretchen Morgenson of the New York Times, accuses Countrywide of "relaxing underwriting standards, structuring loans with risky features, and misleading consumers with hidden fees and fake marketing claims, like its heavily advertised 'no closing costs loan.'"
"People were put into loans they did not understand, could not afford, and could not get out of," the Illinois attorney general, Lisa Madigan, told the Times, "This mounting disaster has had an impact on individual homeowners statewide and is having an impact on the global economy. It is all from the greed of people like Angelo Mozilo."
The attorney general is seeking that any mortgages that used deceptive practices be rescinded or modified in some way.
Tanta on the Calculated Risk blog is very skeptical of the attorney general's claims, noting that Countrywide's allegedly deceitful practices were common in the business. Tanta says:
"Nobody has to like any of these business practices. But they have been hiding in plain sight for a long, long time. This ginned-up outraged innocence—all directed at Countrywide, as if everyone else in the industry had never heard of any of this—is truly getting on my nerves."
Still, the Illinois investigation is just one of a number into the company's practices and into stock sales by Mozilo. The potential liability for Bank of America—in terms of both public image and legal costs—appears to be huge.
Congress is also grappling with the fallout over Countrywide as it tries to push through an overhaul to ease the nation's worst housing slump since the Depression.
The core of the Senate bill is a plan that would allow thousands of troubled borrowers to refinance to more affordable fixed-rate loans through the Federal Housing Administration.
Seeking to address the questions being raised by the disclosure of the Countrywide V.I.P. loans, an amendment to that bill would require lawmakers to disclose the lender and terms of the mortgages on their residences in an annual financial statement, reports Lori Montgomery of the Washington Post.
Politico.com, which has asked all 100 senators to disclose where they got their mortgages and whether there were any special terms, says that only 15 members have failed to respond.
Universal Insurance Holdings, Inc. Announces Common Stock Repurchase Program
Wednesday June 25, 9:00 am ET
FORT LAUDERDALE, FL--(MARKET WIRE)--Jun 25, 2008 -- Universal Insurance Holdings, Inc. (AMEX:UVE - News), a vertically integrated insurance holding company, today announced that its board of directors has authorized the Company to repurchase up to $3,000,000 of its shares of outstanding common stock. Under the repurchase program, management is authorized to repurchase shares through December 31, 2008, with block trades permitted, in open market purchases or in privately negotiated transactions at prevailing market prices in compliance with applicable securities laws and other legal requirements. To facilitate repurchases, the Company plans to make purchases pursuant to a Rule 10b5-1 plan, which will allow the Company to repurchase its shares during periods when it otherwise might be prevented from doing so under insider trading laws.
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About Universal Insurance Holdings, Inc.
The Company is a vertically integrated insurance holding company. Through its subsidiaries, the Company is currently engaged in insurance underwriting, distribution and claims. UPCIC, which generates revenue from the collection and investment of premiums, is one of the top five writers of homeowners' insurance policies in the state of Florida and has aligned itself with well-respected service providers in the industry.
Readers should refer generally to reports filed by the Company with the Securities and Exchange Commission (SEC), specifically the Company's Form 10-KSB for the year ended December 31, 2007, and the Company's Form 10-Q for the quarterly period ended March 31, 2008, for a discussion of the risk factors that could affect its operations. Such factors include, without limitation, exposure to catastrophic losses; reliance on the Company's reinsurance program; underwriting performance on catastrophe and non-catastrophe risks; the ability to maintain relationships with customers, employees or suppliers; and competition and its effect on pricing, spending, third-party relationships and revenues. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available on the SEC's web site at http://www.sec.gov. The Company disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include, but not be limited to, projections of revenues, income or loss, expenses, plans, and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described in forward-looking statements.
Contact:
Investor Contact:
Steven Carr
Dresner Corporate Services
312-780-7211
scarr@dresnerco.com
--------------------------------------------------------------------------------
Source: Universal Insurance Holdings, Inc.
<o hear the airlines tell it, the new fee structure is designed to benefit consumers. > LOL...Got to luv their logic
Do We Want a World Without Ratings?
Posted by Heidi N. Moore
The best time to get rid of firm guidance on complicated securities is in a bear market.
And by “the best time,” we mean, of course, “the worst.”
And yet, consider the Securities and Exchange Commission’s new push to reduce the importance of the ratings offered by Moody’s Investor Service, Standard & Poor’s, and Fitch Ratings. Our colleagues wrote today, “If regulatory changes succeed, ratings would become more of a guide, but not a quasi-regulation from the government on what investors can or cannot hold….Rating firms haven’t protested this line of thinking, saying that they don’t want their ratings to be misinterpreted as a catch-all recommendation to buy a security.”
Therein lies the rub. Ratings providers are, naturally, gun-shy about taking responsibility for the performance of complicated securities. And they already wear a Scarlet AAA for allegedly underestimating the default risk on complicated securities. The ratings firms valiantly blamed a computer error for the misunderstanding, but explanation did nothing to allay investors’ concerns.
It isn’t just ratings providers that are backing away from responsibility. Take the monoline bond insurers, including Ambac Financial Group and MBIA. These businesses, which are supposed to guarantee investors that municipal bonds are perfectly safe, took their own risks on complex securities. And instead of cleaning the toxic securities off their books, the monolines recently asked not to be rated at all.
And then look at much of Wall Street equity research, where the pages of disclosures are frequently longer than the actual reports. Last week, Goldman Sachs Group analyst Mark Wienkes downgraded both XM Satellite Radio Holdings and Sirius Satellite Radio, hitting their shares. But his rating was a “conviction sell,” which is a Goldman term that makes it clear just how much these ratings are based on an analyst’s individual beliefs.
In fact, the post-Spitzerian move away from “buy, sell, hold” to “underweight” and “overweight” shares casts an air of vagueness over the whole enterprise of financial advice, a disingenuousness by professionals whose entire business model depends on their being considered experts on what to buy. Yet they don’t actually want to be responsible for telling people what to buy.
That transforms the world of Wall Street investing into a madcap, choose-your-own adventure book. Money managers learned long ago to reduce their dependence on stock research, but debt securities are a lot harder to value. Bond insurers, investment banks and the Federal Reserve all depend on ratings as a way to defend their investing and other decisions. But even if the ratings providers keep their analysis the same, it won’t have the conviction of a specific call. It is no wonder, then, that the primary problem around the markets right now is one of confidence. It’s hard to know who to believe.
U.N. Nuke Chief: Mideast Could Burn If Iran Attacked
Saturday, June 21, 2008
DUBAI, United Arab Emirates — The U.N. nuclear watchdog chief warned in comments aired Saturday that any military strike on Iran could turn the Mideast into a "ball of fire" and lead the country to a more aggressive stance on its controversial nuclear program.
The comments by Mohamed ElBaradei, head of the International Atomic Energy Agency, came in an interview with an Arab television station aired a day after U.S. officials said they believed recent large Israeli military exercises may have been meant to show Israel's ability to hit Iran's nuclear sites.
• U.N. Nuke Chief Urges Syria to Cooperate With Inspectors
"In my opinion, a military strike will be the worst ... it will turn the Middle East to a ball of fire," ElBaradei said on Al-Arabiya television. It also could prompt Iran to press even harder to seek a nuclear program, and force him to resign, he said.
Iran on Saturday also criticized the Israeli exercises. The official IRNA news agency quoted a government spokesman as saying that the exercises demonstrate Israel "jeopardizes global peace and security."
Israel sent warplanes and other aircraft on a major exercise in the eastern Mediterranean earlier this month, U.S. military officials said Friday. Israel's military refused to confirm or deny that the maneuvers were practice for a strike in Iran, saying only that it regularly trains for various missions to counter threats to the country.
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Stories
o U.N. Nuke Chief Urges Syria to Cooperate With Inspectors
But the exercise the first week of June may have been meant as a show of force as well as a practice on skills needed to execute a long-range strike mission, one U.S. official said, speaking on condition of anonymity because he was not authorized to speak on the record on the matter.
Israeli Prime Minister Ehud Olmert has said he prefers that Iran's nuclear ambitions be halted by diplomatic means, but has pointedly declined to rule out military action.
The U.S. says it is seeking a diplomatic resolution to the threat the West sees from Iran's nuclear program, although U.S. officials also have refused to take the threat of military action off the table.
Secretary of State Condoleezza Rice refused to comment on the Israeli maneuvers in an interview with National Public Radio aired Saturday but said: "We are committed to a diplomatic course."
One Israeli lawmaker on Saturday urged caution, saying that the world should first do more to toughen and broaden the sanctions against Iran to persuade its leaders to halt the nuclear program.
Tzahi Hanegbi, chairman of the powerful Foreign Affairs and Defense Committee in Israel's parliament, suggested steps including banning Iranian planes, ships and sports delegations from entering Western countries.
"There's a long way to go before diplomatic efforts are exhausted," Hanegbi said. "The sanctions aren't very strong, they are very shallow, there's a lot of room for enhancing them."
Meanwhile, reaction to the Israeli exercises rippled across other parts of the Gulf.
In Dubai, the government-owned Khaleej Times newspaper warned in an editorial Saturday that an attack on Iran by Israel or the United States would have "disastrous consequences for the region."
"A nuclear Iran is in nobody's interest, but military action and armed rehearsals will also not be tolerated," the paper said.
The U.S. and many Western nations accuse Iran of seeking a nuclear bomb. Iran has rejected the charges saying its nuclear program is aimed at generating electricity not a weapon.
A U.S. intelligence report released late last year concluded that Iran has suspended its nuclear weapons program, but Israeli intelligence believes that is incorrect and that work is continuing.
There is precedent for unilateral Israeli action.
In 1981, Israeli jets bombed Iraq's Osirak nuclear facility to end dictator Saddam Hussein's nuclear program. Last September, Israel bombed a facility in Syria that U.S. officials have said was a nuclear reactor being constructed with North Korean assistance.
LOL... Makes my heart "skip a beat" when I read a PR from a triple-zero Pinkie referring to Divvy's and Shareholder value
Stocks drop as credit woes continue
Friday June 20, 10:11 am ET
By Madlen Read, AP Business Writer
Stocks drop on financial sector woes; oil prices rebound ahead of Saudi oil meeting
NEW YORK (AP) -- Stocks tumbled Friday on escalating worries about the financial sector and rebounding oil prices. The Dow Jones industrial average sank more than 170 points.
Merrill Lynch -- which slashed earnings estimates for regional banks Friday -- was the target of market rumors that it may issue its own profit warning. Merrill Lynch spokeswoman Jessica Oppenheim declined to comment. Merrill shares dropped $2.20, or 5.8 percent, to $35.49.
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The rumors added to the market's anxiety, which ballooned Thursday when Citigroup Inc. warned of significant debt markdowns for the second quarter, Washington Mutual Inc. announced 1,200 job cuts, and Moody's Investors Service decided late in the day to downgrade the two biggest bond insurers.
Bond insurer MBIA Inc. shares plunged 69 cents, or 10.5 percent, to $5.77, and competitor Ambac Financial Group Inc. fell 8 cents, or 4 percent, to $1.95, after losing their "AAA" rating from Moody's.
Moody's had already warned of a possible downgrade, and the move followed similar actions by rival agencies Standard & Poor's and Fitch Ratings. But it nevertheless underscored the troubles that the nation's money centers face.
As the economy faces a tight lending climate, it also struggles with surging fuel costs. Crude oil futures jumped $3.46 to $135.39 a barrel on the New York Mercantile Exchange, recovering some of Thursday's $5 a barrel drop on news of a fuel price hike in China.
Investors are awaiting this weekend's meeting in Saudi Arabia of oil producers and consumer nations, which could bring some solutions to the problem of soaring oil prices. But many analysts believe the gathering might end up being a mere finger-pointing session.
The Dow Jones industrial average slumped 174.65, or 1.45 percent, to 11,888.44. The Dow has not closed below 12,000 since mid-March. After falling for three straight days this week, the blue-chip index got a modest lift Thursday from the sharp, brief drop in oil prices.
Broader stock indicators also dropped Friday. The Standard & Poor's 500 index fell 14.58, or 1.09 percent, to 1,328.25, and the Nasdaq composite index fell 30.95, or 1.26 percent, to 2,431.11.
"Quadruple witching" -- the simultaneous expiration of four types of options contracts -- often leads to heavy trading near the start and end of the session, and could account for the steepness of Friday's stock decline.
Bond prices rose as stocks sank. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.13 percent from 4.21 percent late Thursday.
The dollar fell against most other major currencies, while gold prices rose.
Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange, where volume came to 522.9 million shares.
The Russell 2000 index of smaller companies fell 6.92, or 0.94, to 730.91.
Overseas, Japan's Nikkei stock average dropped 1.33 percent. In afternoon trading, Britain's FTSE 100 fell 0.9 percent, Germany's DAX index declined 1.60 percent, and France's CAC-40 fell 2.05 percent.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
Making for a very ugly day...DOW 11893 -169 already...
Stocks drop as bank woes continue
Friday June 20, 9:52 am ET
By Madlen Read, AP Business Writer
Stocks drop on financial sector woes; oil prices rebound ahead of Saudi oil meeting
NEW YORK (AP) -- Stocks tumbled Friday on escalating worries about the financial sector and rebounding oil prices. The Dow Jones industrial average sank more than 130 points.
Merrill Lynch -- which reportedly slashed earnings estimates for regional banks Friday -- was the target of market rumors that it may issue its own profit warning. Merrill Lynch spokeswoman Jessica Oppenheim declined to comment. Merrill shares dropped $1.70, or 4.5 percent, to $36.
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The rumors added to anxiety over the Moody's Investors Service decision late Thursday to downgrade the two biggest bond insurers -- MBIA Inc. and Ambac Financial Group Inc. -- from "AAA" amid ongoing concerns about their financial health. MBIA shares plunged 69 cents, or 10.5 percent, to $5.77, and Ambac fell 8 cents, or 4 percent, to $1.95.
Moody's had already warned of a possible downgrade, and the move followed similar actions by rival agencies Standard & Poor's and Fitch Ratings. But it nevertheless underscored the troubles that the nation's money centers face. On Thursday, Citigroup Inc. warned of significant debt markdowns for the second quarter, and Washington Mutual Inc. announced 1,200 job cuts.
Meanwhile, crude oil futures jumped $3.46 to $135.39 a barrel on the New York Mercantile Exchange, recovering some of the $5 a barrel drop on Thursday on news of a fuel price hike in China.
Investors are awaiting this weekend's meeting in Saudi Arabia of oil producers and consumer nations, which could bring some solutions to the problem of soaring oil prices. But many analysts believe the gathering might end up being a mere finger-pointing session.
The Dow Jones industrial average slumped 132.23, or 1.10 percent, to 11,930.86. The blue chip index has not closed below 12,000 since mid-March.
Broader stock indicators also dropped. The Standard & Poor's 500 index fell 13.16, or 0.98 percent, to 1,329.67, and the Nasdaq composite index fell 27.54, or 1.12 percent, to 2,434.52.
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
lol...And with all that good news this morning....Hard to believe..lol
SA:Recommending Parker Drilling Below $10
by: Laura Cadden posted on: June 20, 2008 | about stocks: PKD Font Size: PrintEmail As the big energy providers desperately seek more untapped sources of oil and natural gas, there has been an epic jump in demand for drilling services providers.
The TFN Hot Stock Pick for this week is a Houston-based driller that operates 28 land rigs in ten countries and 18 barge rigs in the inland waters of Mexico, the U.S. Gulf of Mexico, and the Caspian Sea.
Watch this TFN Hot Stock Pick video.
Parker Drilling Company (PKD)
Parker Drilling Company was founded by Gifford C. Parker in 1934. His grandson serves as Chairman and CEO today.
Besides the building and operation of land and offshore barge drilling rigs, this firm provides front-end engineering and design and project management services to both oil and gas operators worldwide.
A main subsidiary, Quail Tools, provides rental equipment for oil and gas exploration and production companies.
On the immediate horizon
In May, Parker announced the issuance of a letter of intent from a subsidiary of BP PLC (BP) to a subsidiary of this company for the building of two new land rigs in Alaska worth $250 million. The five-year drilling contract includes a five-year option and should be executed any day now.
Know-how is not a problem for Parker Drilling as they've been drilling in the Artic since the 1960's.
They seem confident that this contract will happen, as they are already advertising to fill the various staff requirements of the new rigs.
Room to grow
Company revenues were impacted earlier this year by international difficulties in Kazakhstan and Saudi Arabia. These problems have been resolved. But it resulted in a slight decrease of net income with first quarter 2008 coming in at $23.9 million –- $6.1 million less than the same quarter in 2007. This naturally affected the company's stock price.
The pending contract is a perfect short-term price catalyst.
The valuation of the stock is still good, with a P/E ratio of just 10.53. No doubt some of the bigger players have taken note and may move to take over the company –- which wouldn't be a bad thing for investors either.
I recommend you buy shares of Parker Drilling Company (PKD) at or under $10. I anticipate 20% gains within the next six months.
Disclosure: None
SA:Banks Are Failing, So They Are Changing the Rules
by: Andrew Horowitz posted on: June 20, 2008 | about stocks: COF / NCC / WM Font Size: PrintEmail The Wall Street Journal is telling us that there is a new game being played by banks to help make their book of businesses “look” better. It is a desperate move but the problem is the lack of regulation that continues to allow for this latest form of unethical behavior.
David Enrich writes:
In January, Astoria Financial Corp. told investors that its pile of nonperforming loans had grown to about $106 million as of the end of last year. Three months later, the thrift holding company said the number was just $68 million.
How did Astoria do it? By changing its internal policy on when mortgages are classified on its books as troubled. The Lake Success, N.Y., company now counts home loans as nonperforming when the borrower misses at least three payments, instead of two.
This type of blatant disregard for the consumer and shareholders will continue as the FED and the Treasury turn a blind eye. Yet, the truth is that this immoral, and I daresay borderline criminal, action will continue. Let’s face it, there are really no teeth and not enough of a deterrent that provide for a second thought by any of the laws on the books today.
As long as off-balance sheet deals and creative bookkeeping is allowed, feel confident that this will go on indefinitely.
On the other hand, if the banks continue to operate under the current rule set, how long will they be able to stave off the inevitable if their book of business is failing. AND, one more thought…are we all culpable as well as it is somehow in our best interests that they stay solvent and therefore ignore the obvious?
What can we as investors do anyway except vote with our buy or sell orders?
Deals of the Day: Bank of America and Countrywide. Together, Forever, Finally.
Posted by Stephen Grocer
Deals of the Day includes all the major news of the morning related to mergers and acquisitions and financing. For breaking deal news, turn to the WSJ’s Deals & Deal Makers page, or click here to automatically sign up for Deals Alert emails.
Mergers & Acquisitions
Nearing the finish line: Bank of America aims to complete its planned acquisition of Countrywide July 1. Speculation has swirled for months that the deal could fall through. [WSJ]
D&M Holdings: A Bain Capital-led group will buy the maker of audio equipment maker for $444.6 million from Ripplewood. [WSJ]
Informa: Providence Equity and Carlyle Group confirmed making an approach for the publisher. [Daily Telegraph]
FKP Property: The owner of retirement villages rejected today a A$1.3 billion bid from Lend Lease. [The Australian]
Indophil Resources: The company has recommended a A$540 million takeover offer led by its chief, which trumps a $426 million bid from Xstrata. [The Australian]
Financial Institutions
Domo ArigatoBarclays is in the final stages of negotiating with Japan’s Sumitomo Mitsui Banking Corporation for a £470 million injection of cash. [Times of London]
Capital requirements: Switzerland’s central bank hinted at limits on leverage for the country’s banks to safeguard against the “dire consequences” of a collapse. [Daily Telegraph]
Buyside
We’ll be hanging around for a while: Cerberus says it may be a decade before it sells Chrysler. [FT.com]
Related: Bob Nardelli’s mission has turned from a turnround into a rescue operation. [FT.com]
Guy Hands: UBS is suing a German motorway services operator owned by Terra Firma and a Deutsche Bank property investment fund over a €2.3 billion buyout loan. [Times of London]
Capital Markets
Emerging IPO rush: Brazil’s stock market is one of the best performing in the world, but for investors who took part in an unprecedented rush of IPOs there and in other emerging markets last year, the returns have been decidedly more mixed. [WSJ]
Regulators
Growing rivalry: Federal prosecutors in Brooklyn, N.Y., are seeking to boost the number of white-collar cases they are handling. [WSJ]
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BofA Sets Closing Date For Countrywide Purchase
By James R. Hagerty and Valerie Bauerlein
Word Count: 318 | Companies Featured in This Article: Bank of America, Countrywide Financial
Bank of America Corp. aims to complete its planned acquisition of Countrywide Financial Corp. July 1.
An email sent to Countrywide managers early Thursday announced that target date, assuming that Countrywide shareholders approve the purchase, as expected, at a shareholders meeting June 25. A Bank of America spokesman later confirmed the planned timing, which is still subject to last-minute hitches. Speculation has swirled for ...
White House threatens veto of foreclosure rescue By JULIE HIRSCHFELD DAVIS, Associated Press Writer
Fri Jun 20, 12:25 AM ET
WASHINGTON - A broad bipartisan coalition supporting a massive foreclosure rescue beat back GOP efforts to gut it Thursday, defying a White House veto threat and quashing a bid to make it victim to revelations about two senators' VIP mortgages.
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Administration officials said they oppose the inclusion of $4 billion in the measure to help states buy and rehabilitate foreclosed properties, and a plan to have government-sponsored mortgage giants Fannie Mae and Freddie Mac pay for the rescue.
They announced those and other objections as two GOP senators said they would try to block the package until a committee can investigate how much Countrywide Financial Corp. and other lenders stand to gain from it.
House and Senate Republicans are voicing reservations about the bill in light of allegations that Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., one of its architects, and Senate Budget Committee Chairman Kent Conrad, D-N.D., got cut-rate home loans through a VIP program at Countrywide, a leading subprime lender at the center of the mortgage meltdown.
Both said they neither sought nor knew about the special treatment.
"This bill has come together in such a way as to raise questions all over this country that we need to answer before we move ahead," said Sen. Jim DeMint, R-S.C.
The Senate rejected, 70-11, the move by DeMint and Sen. Jim Bunning, R-Ky., to send the housing package back to Dodd's panel, which would have essentially killed the measure.
The election-year bill, which could help hundreds of thousands of struggling homeowners, appeared to be drawing wide bipartisan backing.
The Senate overwhelmingly defeated two amendments by Sen. Kit Bond, R-Mo., that would have derailed the measure. Both failed on margins large enough to override a promised veto, suggesting the plan could survive a showdown with President Bush.
Dodd and Sen. Richard C. Shelby of Alabama, the senior Banking Republican, said the veto threat was "disappointing," given that their compromise plan includes several elements Bush has demanded, and said they hoped the White House would reconsider.
Michael Ortiz, a spokesman for Democratic presidential candidate Barack Obama, said, "It's baffling why the White House would oppose a bill that would help so many American families at risk of losing their homes on the same day hundreds of mortgage fraud arrests were announced."
One of Bond's proposals, which failed on a 69-21 vote, would have killed the foreclosure rescue. The other, defeated 77-11, would have essentially doomed an affordable housing fund financed by Fannie and Freddie, leaving it — and the mortgage aid plan — without a source of money.
Democrats and many Republicans consider the measure a political imperative amid rising foreclosures and growing public anxiety about the sagging economy.
Its centerpiece is a foreclosure rescue program in which the Federal Housing Administration would provide $300 billion in new, cheaper mortgages for distressed homeowners who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans.
Borrowers would be eligible if their mortgage holders were willing to take a substantial loss and allow them to refinance, and would ultimately have to share with the government a portion of any profits they made from selling or refinancing their properties.
The measure is designed to help hundreds of thousands of borrowers in danger of losing their homes, but it also would benefit mortgage holders by allowing them to avoid costly foreclosures and reclaim some of what they're owed by people facing financial ruin.
The bill would tighten controls on Fannie Mae and Freddie Mac — which provide huge amounts of cash flow to the mortgage market by buying home loans from banks — creating a new regulator for the firms.
It also would provide a $14.5 billion array of housing and other tax breaks, including a credit of up to $8,000 for first-time homebuyers who buy a home in the next year, and boosts in low-income tax credits and mortgage revenue bonds.
A group of 28 House Republicans wrote to Speaker Nancy Pelosi, D-Calif., on Thursday demanding an investigation — with open hearings — on the Countrywide allegations.
"At a time when millions of Americans are struggling to repay their mortgage debts while coping with $4/per gallon gasoline and soaring foods prices, they will be outraged to learn that some members of Congress may have personally profited from their official positions through secret sweetheart deals on their mortgages," said the letter, signed by House leaders.
They called the revelations "extremely troubling" in light of upcoming votes on the housing package.
Rep. Barney Frank, D-Mass., the House Financial Services chairman, said his panel won't look into the Countrywide case, given the panel's already full schedule and a pending Senate Ethics Committee probe of the matter.
He defended Dodd in a statement, saying, "At no point in any of our joint efforts has Senator Dodd shown even the slightest indication that he was in any way influenced by considerations other than what was best for the economy and the American people."
Still, Frank and other Democrats have serious concerns about the Senate housing measure that could frustrate leaders' desire to send it to Bush before Congress breaks for a weeklong July 4 vacation.
(This version CORRECTS to show that the quote came from an Obama spokesman, not from Obama.)
FRPT 4.58 6.76%
No Problem...Believe you nailed it! lol
Cool! Put them in the travel sector. lol