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Most U.S. Stocks Drop as SunTrust CEO Predicts More Bank Losses
Aug. 24 (Bloomberg) -- Most U.S. stocks fell, led by financial companies, after SunTrust Banks Inc. said lenders face more credit losses and commercial real estate may falter through 2010. Oil’s advance to a 10-month high sent energy shares in the Standard & Poor’s 500 Index higher for a fifth day.
Banks in the S&P 500 fell 2.5 percent as SunTrust Chairman and Chief Executive Officer James Wells III said “the industry is a long way from declaring any sort of victory.” Ford Motor Co. declined 4.3 percent before the “cash for clunkers” program for cars expires today. Commodities and equities rallied globally as leaders of the biggest central banks buttressed confidence in the economic recovery.
Six stocks fell for every five that rose on the New York Stock Exchange. The S&P 500 fell 0.1 percent to 1,025.57 at 4 p.m. in New York after climbing as much as 0.9 percent. The Dow Jones Industrial Average added 3.32 points, or less than 0.1 percent, to 9,509.28. The MSCI World Index of 23 developed nations advanced 0.7 percent. The UBS Bloomberg Constant Maturity Commodity Index increased 1.1 percent.
“Maybe we’re not completely out of the financial crisis,” said E. William Stone, who oversees $101 billion as chief investment strategist at PNC Wealth Management in Philadelphia. “We’ve had almost no economic data, plus light trading and a good week last week, so that may give people an itchy trigger finger to take profits if they sniff trouble.”
UPDATE 2-Citi faces $44 bln loan losses over 18 months - analyst
Aug 24 (Reuters) - Fox-Pitt Kelton expects Citigroup Inc (C.N) to face another $44 billion in loan losses over the next 18 months, but said the embattled bank's capital is now strong following the "painfully dilutive" preferred conversion.
Citi received $45 billion of bailout money from the U.S. Treasury's Troubled Asset Relief Program, or TARP, and the government now owns a 34 percent stake in the company.
"We are not modelling in write-downs in problem securities, given recent stability in prices," analyst David Trone wrote in a note to clients.
Citi's large exposure to problem securities could once again be a threat, should the global economy dip again, the analyst said, adding that loan losses could end up closer to $68 billion.
UPDATE 2-U.S. home lender Taylor Bean files for bankruptcy
NEW YORK, Aug 24 (Reuters) - Taylor, Bean & Whitaker Mortgage Corp filed for Chapter 11 bankruptcy protection and said it may liquidate, three weeks after it closed its mortgage lending business and was suspended by a federal agency.
The Ocala, Florida-based company, which was the nation's 12th-largest U.S. mortgage lender from January to June, filed for protection from creditors on Monday with the U.S. bankruptcy court in Jacksonville.
Saying its business has been "crippled," Taylor Bean said it plans to operate on a scaled-down basis as it works to recover, restructure and possibly liquidate its assets.
It named Neil Luria of Navigant Capital Advisors as chief restructuring officer, and restructuring specialists Bruce Layman and Bill Maloney to its board.
"The speed of its collapse has been stunning," Luria said in a statement.
According to the bankruptcy petition, Taylor Bean has more than $1 billion of both assets and liabilities, and between 1,000 and 5,000 creditors.
Aug. 24 (Bloomberg) -- The Federal Reserve must make public reports about recipients of emergency loans from U.S. taxpayers under programs created to address the financial crisis, a federal judge ruled.
The Board's Motion for Summary Judgment is DENIED, and Bloomberg's Motion for Summary Judgment is GRANTED. Specifically:
1. The Board shall produce forwith the Remaining Term Reports within five business days of the date hereof;
2. The Board shall search forthwith records at the FRBNY that constitute "Records of the Board" within the meaning of 12 C.F.R. # 231.2(i)(1); and
3. The parties shall confer following their review of the results of the search and inform the Court by letter no later than September 14, 2009 how they propose to proceed.
Reuters: Obama to praise Bernanke for "bold action" in dealing with the financial crisis, White House says.
Reuters: Obama to reappoint Ben Bernanke as Chairman of the U.S. Federal Reserve on Tuesday, White House says.
Originally posted by fromunclexcommunicate
The dollar is still above its lows, probably waiting for the treasury auction results. Retail sales could go either way, but today would have been a good day to gamble and go short in the morning.
Originally posted by stander
Did anyone get kick out of that sucker's rally?
High volume was absent, so was Mr. Goldman. He'll be back on Monday, though, to keep the bubble bull in the right direction.
Massive US Treasury debt auctions have become almost run of the mill lately, but this week's substantial offerings are unusual in they jump the maturity gun. Normally new Treasury auctions are set to coincide with maturity dates of previous issues, allowing bond traders to roll over their investments. This week's auction - a record total of US$109bn in twos, fives and sevens over the next three days - is scheduled ahead of maturity dates, meaning traders will have less funds available to play with. Is this what the Fed was worried about? Normally bond yields rise ahead of auctions (prices fall) as traders set themselves ahead of a rush of new supply.
Originally posted by marg6043
Hey life is peachy in the Goldman Sach wonderland.
Originally posted by marg6043
Yes you are right, but unfortunately I am just a tax payer sucker.