“Lyondell Chemical issued the fist covenant-lite loan since the financial crisis subsided. Senior editor Paddy Hirsch explains what a cov-lite loan is, and why their return could be bad for the economy.” -Marketplace.org
New Home Sales Surged 27% in March
Bloomberg Report:
Pressure on China to let its currency appreciate may have significant effects on businesses around the world.
"Citi today is fundamentally a very different company from what it was only two years ago," -Citigroup CEO Vikram Pandit
Citigroup profit more than doubled in the first quarter of 2010.
The Official 22 Page SEC Complaint Against Goldman Sachs (PDF FILE)
Goldman’s Response:
“The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”
Source: http://www2.goldmansachs.com/our-firm/press/press-releases/current/response.html
The timing of the SEC's complaint against Goldman Sachs has come under scrutiny, as congress is currently debating further regulation of the financial system. (CNBC)
Seeking Alpha Update: “The company (Goldman Sachs) lost money on the transaction in question; extensive disclosure was provided; ACA, the largest investor, selected the portfolio; and Goldman never represented to ACA that Paulson was going to be a long investor.” Source: Seekingalpha.com
This may be the first in a series of complaints filed against firms involved in the CDO market. (CNBC)
Goldman Sachs is set to release earnings next week.
NYU Professor and author Nouriel Roubini discusses his outlook on fed monetary policy in the coming years.
Greek prime minister George Papandreou
If you want to gain a better understanding of the financial meltdown, watch this documentary; it’s approximately one hour long.
James Chanos, founder of Kynikos Associates Ltd.
Hedge fund manager James Chanos sees a collapse in the Chinese real estate market within the next two years.
BLOOMBERG
Senior editor Paddy Hirsch illustrates why the Federal Housing Administration has recently come under increased scrutiny for risky lending practices.
Fannie Mae suffered losses due to “unemployment and continued defaults from many borrowers who owe more on their mortgages than their homes are worth.”
![The government has agreed to absorb unlimited losses for the next three years and up to $400 billion after that. So far, the companies [Freddie Mac and Fannie Mae] have taken a combined $127 billion in Treasury support](http://graphics8.nytimes.com/images/2008/07/14/business/13fanni.exlarge1.jpg)
The government has agreed to absorb unlimited losses for the next three years and up to $400 billion after that for Fannie Mae and Freddie Mac.
Seeking Alpha’s Daryl Montgomery seems to think so.
Recently released employment data does not bode well for the housing market.
The Dollar continued to gain strength today as the Fed announced that it would raise the discount rate (not to be confused with the Federal Funds Rate) from 0.5 percent to 0.75 percent.
Sources:
Federal Reserve Site (official release)
BB&T’s Opinion
Goldman Sachs used the software to execute "sophisticated, high-speed and high-volume trades on various stock and commodities markets."
EU Leaders have pledged to provide financial support to Greece at a summit on Thursday.
(L-R) European Central Bank (ECB) President Jean-Claude Trichet , European Commission President Jose Manuel Barroso, Germany's Chancellor Angela Merkel, Greece's Prime Minister George Papandreou, France's President Nicolas Sarkozy and European Council President Herman Van Rompuy
Kenneth Lewis, the former Bank of America CEO has been sued by New York Attorney General Andrew Cuomo for Securities Fraud.
Former Bank of America CEO Kenneth Lewis
Paul Volcker, former chairman of the Federal Reserve
