- Obama Adviser Says U.S. Should Mull Second Stimulus
- Not the Bair Minimum
- Big Banks Don’t Want California’s IOUs
- Regulator may tighten rules on commodities speculation
- Nomura has Lehman’s old crown in sight
- High-Yield Heyday Has Mostly Passed
- Fink warns on EU hedge fund rules
- Muni bonds feel US states’ fiscal stress
- AIG brands Greenberg ‘a liar’
- Automakers’ Swift Cases in Bankruptcy Shock Experts
- Auto parts maker Lear Corp files for bankruptcy
- June sales likely rained out for retailers
- After 39 years, a final countdown for Casey Kasem
The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an adviser to President Barack Obama.
The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson said in a speech in Singapore today. The package will have a more pronounced impact in the third and fourth quarters, she added, stressing that she was speaking for herself and not the administration…..
Not the Bair Minimum – NY Post
Federal Deposit Insurance Corp. boss Sheila Bair may have overstepped her authority with last week’s proposal to limit how private-equity firms can snap up fallen banks.
That’s the assessment of some banking regulators, who are expressing concern that Bair’s plan may keep private-equity players away from buying banks that have gone into receivership…..
Big Banks Don’t Want California’s IOUs – Wall Street Journal
A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.
The development is the latest twist in California’s struggle to deal with the effects of the recession. After state leaders failed to agree on budget solutions last week, California began issuing IOUs — or “individual registered warrants” — to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July’s end…..
The Commodity Futures Trading Commission will consider new measures to curb speculation in the markets for energy and other commodities, the agency is expected to announce today.
Such a move, designed to reduce the volatility of prices, faces resistance from top Wall Street firms, which fear the effort could cut into their earnings. Regulators and lawmakers have expressed concern that these firms have used their size and power to inflate commodity prices, booking profits in the process…
Nomura has Lehman’s old crown in sight – Bloomberg
Ten months ago when Lehman Brothers collapsed, it would have been a stretch to suggest that the former investment bank might reclaim its crown as the biggest broker on the London Stock Exchange.
But yesterday the new owner of its European equities trading business, Nomura of Japan, said its newly constituted European equities arm was now the LSE’s third-largest broker, behind Merrill Lynch and top-ranked Credit Suisse….
High-Yield Heyday Has Mostly Passed – Wall Street Journal
High-yield bond funds are enjoying a bumper year, with returns above 20%. But while investors are pouring in billions of dollars, it is likely they have missed the best returns.
High-yield bond funds were up 23% in the first half of the year, according to figures from Morningstar Inc. The high-yield market has seen monthly yields at 18-year highs since October…..
Fink warns on EU hedge fund rules – Financial Times
The adoption of tough European restrictions on hedge funds would provoke a transatlantic regulatory war, one of the sector’s leading figures has warned.
Stanley Fink, the former chief executive of Man Group known as the “godfather” of the British hedge fund industry, said that the European Commission’s proposed regulation would be “very restrictive” for non-EU funds and some styles of investing…
Muni bonds feel US states’ fiscal stress – Financial Times
California’s high-profile budget crisis and the fiscal woes of states throughout the US are taking their toll on the public finance markets, sending borrowing costs higher for states, cities, counties and other municipal issuers.
The Golden State and its gaping $26bn deficit have caught the headlines, but a handful of other states have also failed to agree on balanced budgets, even after federal stimulus. Even the states that have passed budgets have been forced to make dramatic cuts such as closing schools and laying off staff to compensate for plunging tax receipts….
AIG brands Greenberg ‘a liar’ – Financial Times
A lawyer for AIG called Hank Greenberg, the insurer’s ex-chief executive who was ousted in 2005, “a liar” and accused him of fabricating evidence in a $4.3bn lawsuit involving his private investment fund.
The forceful remarks punctuated the closing arguments on Monday in a three-week trial involving Mr Greenberg’s Starr International Company, which once funded a retirement plan at the insurer. Ted Wells, AIG’s attorney, painted the termination of that plan in 2005 as an act of retaliation by Mr Greenberg after he was forced out of the company. “He lied to you,” Mr Wells said of Mr Greenberg to the jury…..
Automakers’ Swift Cases in Bankruptcy Shock Experts – New York Times
In fewer than 45 days each, General Motors and Chrysler swept through government-sponsored sales in bankruptcy court — quick tours that most people in the legal community thought impossible not long ago.
The swift action has riveted bankruptcy lawyers and law professors, who say the cases will be widely studied this fall when law students return…..
U.S. auto parts maker Lear Corp filed for Chapter 11 bankruptcy protection on Tuesday, a day after setting out plans to restructure its $3.6 billion debt burden under a proposed deal with creditors.
Lear, which has been weighed down by heavy debts and a sharp decline in automobile demand, said the reorganization had won the support of the majority of its creditors and it expected to submit the proposals to the bankruptcy court in coming days…..
Unseasonable weather and consumers without the stimulus boost they received last year were expected to have dampened U.S. retail sales in June, analysts said.
The month was “particularly challenging” for stores selling summer products as the first three weeks were cooler and wetter than usual, according to weather tracking firm Planalytics….
Casey Kasem has done his final countdown.
The 77-year-old DJ told American Top 20 listeners across the country Saturday that the program would be his last.
Kasem launched his weekly countdown of the nation’s most popular songs, the American Top 40, on July 4, 1970. Ryan Seacrest took over the show in 2004, and Kasem went on to host two syndicated spinoffs, the American Top 20 and American Top 10….