Bond giant Pimco has begun buying the high-yield debt of battered energy company BP. -CNBC

Pimco Chief Investment Officer Bill Gross; Pimco currently has more than $1 trillion in assets under management .

New home construction hit lowest level in five months as tax credits came to an end in April.

Overall new homes and apartments fell 10 percent in May (seasonally adjusted)

MSNBC Article

“Moody’s Investors Service slashed Greece’s government-bond ratings by four notches to “junk” territory, saying there was “considerable” uncertainty surrounding the timing and impact of support measures on the country’s economic growth.” -WSJ

WSJ

Marketwatch

The ratings agency cut the rating to Ba1, the highest junk-level rating.

CNBC Article

“Markets are clearly in the current circumstances overshooting, we do not deny that we have severe problems in the euro zone but they are less severe than market reaction suggests,” -Juergen Stark

"People have to understand that the euro is (here) to stay" -Mario Draghi, head of Italy's central bank.

CNBC Article: “A big mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high frequency trader as many have suspected, but money manager Waddell & Reed, according to a document obtained by Reuters.”

Waddell and Reed oversaw $74.2 billion in assets as of March 31, 2010.

Marketplace.org: Europe is teetering on the edge of a credit crisis, and markets all around the world are tumbling as investors worry about contagion.

Its all about banks not trusting each other, as Senior Editor Paddy Hirsch explains:

Faulty pricing in certain equities may have been the cause, according to CNBC/Nasdaq.

Click the image above to read the WSJ Article

Intra-day price chart of the Dow Jones Industrial Average (Thinkorswim software)

Greece has accepted a 146 billion dollar bailout after negotiations with the International Monetary Fund, the European Central Bank, and the European Commission.

CNN Money

"Greece's national debt of 300 billion euros ($394 billion) is bigger than the country's economy, and some estimates predict it will reach 120 percent of gross domestic product in 2010." - CNNMoney

Fed funds target rate unchanged at a range of zero to 0.25%

FORBES

CNN MONEY

“Activity has continued to strengthen and the labor market is beginning to improve,” - FOMC

Greece was lowered to BB+ from BBB+ by Standard and Poors earlier today.

Read the full Businessweek article

"The euro weakened and stock markets throughout the region plunged." -Businessweek

“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

-WSJ Article on Cov-Lite Loans

New Home Sales Surged 27% in March

CNN Money Article:

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.