FAT CATS

[Phisherman]

Mortgage lenders to pump $200 billion into markets
WASHINGTON (Reuters) - The two largest U.S. mortgage finance companies on Wednesday won approval to pump up to $200 billion into the distressed U.S. mortgage market, the latest step in government efforts to ward off a credit crunch. Policy-makers at the Federal Reserve, regulatory agencies and the Treasury Department have unveiled a flood of measures to try to tamp down rising home foreclosures and stabilize shaky markets, but some still see the need for a more direct government hand.

Starbucks plans new line, sees economic "tailspin"
SEATTLE (Reuters) - Starbucks Corp (SBUX), which is battling to revive U.S. growth in an economy that is in a "tailspin," plans to roll out a line of energy and health and wellness products, Chief Executive Howard Schultz said on Wednesday. Schultz, who recently returned to the company to lead the turnaround, said Starbucks and other businesses are facing unprecedented business challenges.


Morgan Stanley earnings fall, but beat Street view
NEW YORK (Reuters) - Morgan Stanley (MS) reported sharply lower quarterly earnings on Wednesday after absorbing $2.3 billion of write-downs, but resilient trading results helped the No. 2 U.S. investment bank beat Wall Street's reduced expectations by a wide margin. By several measures, Morgan had the best quarter among the big Wall Street banks, generating more profit than arch-rival Goldman Sachs (GS), suffering the smallest year-over-year profit drop and posting a 20 percent return on equity.

Market slides on oil, profit-taking
NEW YORK (Reuters) - Stocks extended losses on Wednesday in volatile trading a day after the Fed's rate cut, as investors sold stocks to take some profits from Tuesday's rally and cheaper oil prices hurt energy shares. The Dow Jones industrial average shed 138.81 points, or 1.12 percent, to 12,253.85. The Standard & Poor's 500 Index was down 13.30 points, or 1.00 percent, at 1,317.44. The Nasdaq Composite Index was down 21.74 points, or 0.96 percent, at 2,246.52.


Ratings agencies face tougher oversight
LUXEMBOURG (Reuters) - Credit rating agencies, under fire for being slow to warn investors about financial turmoil, face much tougher scrutiny and even new laws, a top market regulator said on Wednesday. Critics say the agencies failed to warn investors in time about complex mortgage backed products as defaults in the U.S. home loans market snowballed into a global credit squeeze.

Investment banks are borrowing from Fed
NEW YORK (Reuters) - Investment banks Goldman Sachs Group Inc (GS), Lehman Brothers Holdings Inc (LEH) and Morgan Stanley (MS) are testing a new program that allows investment banks to borrow directly from the Federal Reserve, according to people at the banks. In a bid to stabilize jittery markets, the Fed said on Sunday that it would allow investment banks to borrow from its discount window using a wide range of investment-grade securities as collateral.

Bear Stearns' Cayne, holder seek rival bid: report
NEW YORK (Reuters) - Bear Stearns Cos Inc (BSC) Chairman James Cayne and top shareholder Joe Lewis are quietly searching for a bidder that would top the offer from JPMorgan Chase & Co (JPM), the New York Post reported on Wednesday. Cayne and Lewis have contacted private equity firms, including J.C. Flowers and Kohlberg Kravis Roberts & Co <KKR.UL>, as well as overseas banks Barclays, HSBC, Credit Suisse <CSGN.VX>, and Royal Bank of Scotland, the paper said, citing sources familiar with the matter.

U.S. Treasury's Ryan: Markets to emerge stronger
WASHINGTON (Reuters) - The U.S. Treasury is confident that capital markets will recover from their current turbulence and emerge stronger with enhancements such as improved credit ratings, better disclosure and increased risk management, a senior Treasury official said on Wednesday. Anthony Ryan, Treasury assistant secretary for financial markets, said markets were experiencing "a great deal of deleveraging" that has hurt liquidity and their ability to facilitate economic activities.

Ford has other options if buyouts come up short: CEO
DETROIT (Reuters) - Ford Motor Co (F) has other options to cut costs if a just-completed round of buyouts for its U.S. blue-collar work force comes up short of its targets, the automaker's chief executive said on Wednesday. "We have a lot of other options to keep right-sizing the place," Ford Chief Executive Alan Mulally said in a presentation to analysts in New York that was monitored by Webcast.

Delta adds another $10 to fares to offset fuel
NEW YORK (Reuters) - Delta Air Lines Inc (DAL) said on Wednesday it added another $10 to U.S. domestic round-trip fares to offset soaring jet fuel prices. A spokeswoman for Delta, the No. 3 U.S. airline, said the $10 is an increase to the fuel surcharge. The hike comes on the heels of one from last week, when major carriers, including Delta, increased their fuel surcharges by as much as $50 round-trip.