Reuters:   The US closed  its car “clunkers” program just as it began as funds ran out.

Reuters:   Obame faces more questions about his health care plan.

Reuters:   A Congressional bill would affect OTC derivative holdings.

Reuters:   Japan announced record deflation.

Reuters:   Ford (F) has slowed the Volvo bidding process to get more money.

Reuters:   Disney (DIS) profits beat Wall St. estimates.

Reuters:   Obama says the recession is slowing sharply.

Reuters:   British Air debt and expenses are falling.

Reuters:   Investors are taking a hard look at Yahoo! (YHOO) after the Microsoft (MSFT) deal was announced.

WSJ:   Companies are looking for modest improvements in business by the end of the year.

WSJ:   Regulators are increasing the number of banks that they put on probation.

WSJ:   Silicon Valley’s jobless are leaving the tech industry.

WSJ:   The rally lifted stocks to 2009 highs.

WSJ:   Asset sales helped Alcatel-Lucent (ALU).

WSJ:   Wii sales dropped and hurt Nintendo.

WSJ:   Retailers are launching Christmas in July sales.

WSJ:   Tough Treasury sales this weak raised questions about whether China is still buying.

WSJ:   Investors should be cautious about the second quarter GDP numbers as an indicator.

WSJ:   Southwest (LUV) made a bid for Frontier Airlines.

WSJ:   Motorola (MOT) posted a profit but cellphone sales kept dropping.

WSJ:   Cablevision (CVC) will spin off Madison Square Garden assets.

NYT:   Marketers are mining offline data and applying it to browsers to created targeted ads.

NYT:   Now that AIG (AIG) has been rescued, it faces ongoing weakness.

NYT:   The fight against corporate and government corruption in India is growing.

NYT:   Merch (MRK) is selling its animal venture stake to Schering-Plough (SGP).

NYT:   A MedImmune swine flu vaccine has proven unexpectedly effective.

NYT:   Profits fell 66% at Exxon Mobil (XOM).

FT:   Lenders won control of Delphi.

FT:   The S&P is near the 1,000 level.

FT:   Jaguar is a test of the UK programs to help manufacturers.

Bloomberg:   China will cut loans to ease a stock market bubble.

Douglas A. McIntyre

The figure is part of a report from KBW that says American money center and regional banks will have to come up with $30 billion to make their balance sheets right. According to the AP, "Among the banks reviewed by KBW, 10 are large-capitalization banks that would account for $21 billion in capital necessary to cover potential losses."

For BAC, which is already trading poorly in the market due to general malaise in the bank industry and its ill-advised purchase of Countrywide (CFC), the dilution from raising $10 billion would be close to 15%.

That could take its stock from $23, near a 52-week low, to $18. And, that is if there is no other bad news.

Douglas A. McIntyre

Reuters reports that InBev is sticking to it offer to buy Anheuser-Bush (BUD).

Reuters reports that Chrysler is shutting minivan plants.

Reuters writes that financial executives are still looking for companies that they can buy cheap and improve.

Reuters reports that Lehman (LEH) rose after Morgan Stanley gave the brokerage a positive rating.

Reuters reports that Florida has sued Countrywide over its mortgage practices.

Reuters reports that Ford (F) was in talks to sell Volvo to Renault.

The Wall Street Journal writes that federal authorities want the names of UBS (UBS) clients who may have used the bank to dodge taxes.

The Wall Street Journal writes that Sirius (SIRI) put out financial forecasts for the firm once it combines with XM Radio (XMSR).

The Wall Street Journal writes that the US corn crop is mostly intact even after Midwest flooding.

The Wall Street Journal reports that UBS is likely to issue another profit warning.

The Wall Street Journal writes that Starbucks (SBUX) new coffee has attracted new customers and some critics.

The Wall Street Journal reports that Ford (F) is trying to maintain the vitality of its flagship product, the F-Series pick-up.

The Wall Street Journal reports that Teva (TEVA) has begun to ship a generic version of schizophrenia treatment Risperdal.

The New York Times reports that the Saudi Khurais oil field, one of the largest in the world, may not do as well as many had hoped.

The New York Times writes that business activity in the Midwest remained weak in June.

The FT reports that Warner Music (WMG) has signed up for Nokia’s (NOK) music service.

Bloomberg reports that Eli Broad says the current recession is the worst since WWII and believes the housing market will not recover for years.

Bloomberg writes that Bank of America (BAC) will pay about one-third less for Countrywide (CFC) than it had planned.

Douglas A. McIntyre

Reuters writes that Anheuser-Busch (BUD) turned down an offer from InBeve.

Reuters reports that Yahoo! (YHOO) has realigned its senion management

Reuters reports that China Mobile (CHL) said it was making progress with Apple (AAPL) on iPhone distribution.

The Wall Street Journal reports that Mozilo of Countrywide (CFC) helped many people get loans.

The Wall Street Journal writes that the Fed will make it easier for private equity firms to invest in banks.

The Wall Street Journal writes that IACI (IACI) will take a $300 million goodwill hit.

The Wall Street Journal write that the new Centro did not keep Palm (PALM) from a big loss.

The New York Times writes that a suit claims that UBS (UBS) misled investors.

The New York Times writes that Sony (SNE) has put together a plan to improve returns in its electronics businesses.

The Wall Street Journal writes that Ford (F) is offering buy-outs at some of its plants.

The Wall Street Journal reports that a memo from Microsoft’s (MSFT) Ballmer offers clues about what he will do with the company.

The New York Times writes that Chrysler brought back Lee Iacocca to give employess a pep talk.

The FT writes that Verizon (VZ) is pressing Vodafone (VOD) to exit its piece of Verizon Wireless.

Bloomberg writes that AIG (AIG) is facing another $5 billion in write-downs.

Douglas A. McIntyre

GM (GM) Big sell rating and possible credit rating downgrade. Economy catches up to Detroit. Makes multiyear low at $11.10 down from 52-week high of $43.20.

Rite Aid (RAD) Larger than expected loss. Sells off to to $1.39 from 52-week high of $6.51.

Lear Corporation (LEA) Auto supplier in a bad auto market. Screams down to $14.25 from 52-week high of $41.33.

Bank of America (BAC) Series of negative comments from brokerages about money center banks. Wall Street also does not like Countrywide (CFC) deal. Sells down to $25.01 from 52-week high of $52.96.

Citigroup (C) Wall St. estimates another $9 billion in write-offs in Q2. Drops to $17.53 from 52-week high of $52.97.

XM Satellite Radio (XMSR) Concerns about viability, merger or not. Drops to $7.33 from 52-week high of $16.44

Sirius (SIRI) Ditto. Dips to $1.80 from 52-week high of $3.94

AIG (AIG) Investors looking for more huge write-offs. Tumbles to $28.26 from 52-week high of $70.97

United (UAUA) Oil prices top $140 a barrel. Sell down to $5.25 from 52-week high of $51.60

Douglas A. McIntyre

GM (GM) is off 11% today to $11.43. Anyone who watches the car industry much must have known that car sales would be bad this year. Gas is too high and consumer income is too low. The stock traded above $21 a month ago.

GE (GE), one of the most admired companies in the world, is down 2% to $27.49, near its 52-week low. There is nothing new from the conglomerate. The most management has said is that it thinks it will hit its numbers. Hardly a reason to racket the share price down again.

RIM (RIMM) and Oracle (ORCL) are both down, RIM by 11% and Oracle by 3%. Each had guidance below Wall St. estimates, but the guidance was still for significant growth. The news should be a relief.

Bank of America (BAC) took out a new low today. Goldman said Citigroup (C) would have $8.8 billion in new write-offs in the current quarter. That helped drop BAC. So did its acquisition of much-troubled mortgage company Countrywide (CFC) Bank of America is one of the few stocks that should be taking a beating.

Even the darling of the investment community, Apple (AAPL) is off nearly 3% to $172.42. With everything so right at the company, why should its share fall?

Some of the selling has become too bloody to watch. It is time to avert the eyes or find a new hobby that does not involve investing in the stock market.

Douglas A. McIntyre

Reuters writes that Oracle (ORCL) posted strong earnings but its outlook was light.

Reuters reports that RIM (RIMM) has an excellent quarter but weak guidance.

Reuters reports that the Fed held rates buy showed concern about inflation.

Reuters writes that Goldman Sachs (GS) says Citigroup (C) may have $9 billion in write-downs in the current quarter.

Reuters reports that Sony (SNE) expects 10% ROE in three years on TVs, Blu-ray and chips.

Reuters reports that Jerry York, adviser to billionaire investor Kirk Kerkorian said auto sales will not recover in the second half.

The Wall Street Journal writes that three more states have filed suits against Countrywide (CFC).

The Wall Street Journal writes that no one is rushing to buy GE’s credit card operations.

The Wall Street Journal reports that the head of Yahoo! (YHOO) wrote to shareholders defending the company’s reaction to the Microsoft (MSFT) offer

The Wall Street Journal writes that Fitch cut its creditor default ratings on Ford (F) and GM (GM).

The New York Times writes that the Supreme Court cut awards against Exxon (XOM) in the Valdez case.

The FT writes that the ECB may raise interest rates.

Bloomberg writes that Goldman Sachs (GS) and four other banks sold $1.7 billion in LBO debt for 70 cents on the dollar.

Douglas A. McIntyre

Countrywide shares are up 1.9% at $4.75 today and Bank of America shares are up 2.9% at $27.39 today.  The final buyout price based upon the full 0.1822 share conversion would be at an adjusted $4.99 based on Bank of America’s price.

Jon C. Ogg
June 25, 2008

According to The Wall Street Journal, "In a draft of the complaint, Illinois alleges that the company engaged in "unfair and deceptive practices" in the sale of mortgage loans." The root causes of this is probably that Mozilo wanted to improve his earnings and fuel the secondary mortgage market. He was willing to pay brokers to loan money to anyone, even those in homeless shelters.

The charges are severe because they assume a conspiracy on the part of the CFC top management to push practices which they know were wrong. It is not the first time that ethics have arm-wrestled profits at financial companies, and it will not be the last.

There are enough government agencies after Mozilo that one or more of them will probably catch him. He helped ruin a significant part of the national financial system.

But, Mozilo alone is not at fault. How could such a large fraud go detected for so long? Certainly other companies in the industry must have been aware of what was transpiring at CFC. And, what about the mortgage firm’s own employees? And, local authorities which could see the home sales and mortgage documents come across their desks?

For Mozilo, the question will be what is the price of depravity?

A big fine? Or, twenty years to life?

Douglas A. McIntyre

Reuters writes that the CEO of Nissan is bracing for the worst in the US.

Reuters writes that Hilton will add 300 hotels in Asia over the next decade.

Reuters reports that Barclays (BCS) will raise $8.8 billion in new capital.

Reuters reports that Blockbuster (BBI) shares rose on rumors it would not buy Circuit City (CC).

Reuters reports that Illinois is suing Countrywide (CFC) and Mozilo.

Reuters reports that Blackrock (BLK) sees the global slowdown getting worse in 2009.

The Wall Street Journal reports that the cost of oil could cause large cuts in orders at Boeing (BA) and Airbus.

The Wall Street Journal writes that consumer confidence plunged

The Wall Street Journal reports that Chrysler tapped it $2 billion credit line.

The Wall Street Journal reports that Charter (CHTR) will delay sending targeted ads to its customers becuase of privacy concerns.

The Wall Street Journal writes that the number of very wealthy people is growing faster in Asia, Russia, and India than it is in the US.

The Wall Street Journal writes that RIM (RIMM) is entering the risky market of consumer handsets.

The Wall Street Journal writes that Wachovia (WB) has hired Goldman Sachs (GS) to evaluate its loan portfolio.

The New York Times writes that Disney (DIS) is overhauling its website to make it more attractive to consumers.

The FT writes that inflation is now global and threatens economies in almost every region.

The FT writes that Nokia (NOK) has taken full control of software company Symbian in a challenge to handset operating systems from Apple (AAPL) and Google (GOOG).

The FT reports that Wal-Mart (WMT) will open its first Marketside small grocery chains in the Fall.

Douglas A. McIntyre