Archive for July 15th, 2009

WASHINGTON: A new government investigative panel charged with getting to the bottom of what caused the financial crisis was assembled on Wednesday, and its chairman vowed to begin work soon.Congressional leaders named 10 members of the Financial Crisis Inquiry Commission, which has the power to hold hearings and collect records examining everything from fraud to… »

NEW YORK (Fortune) — The government appears poised to come to the aid of struggling small business lender CIT Group. A federal bailout plan could be in place within 24 hours, Reuters reported Wednesday, citing a source familiar with the government’s thinking. The White House said President Obama has been briefed on CIT but referred… »

(breakingviews.com) — Credit rating firms may finally be forced to eat their own cooking.The 173 billion California Public Employees’ Retirement System is suing the top three raters over some 1 billion in losses it incurred when three top-rated structured investment vehicles collapsed. Raters have prevailed against similar legal challenges before. But Calpers might now have… »

SAN FRANCISCO (Reuters) — Wal-Mart Stores Inc., the world’s biggest retailer, will announce Thursday the development of an index that will be used to measure the social and environmental impact of the products it sells in its discount stores.The information could be used to one day provide consumers a label assessing how “green” or “sustainable”… »

NEW YORK: AIG suffered another setback in its effort to pay back the government this week, again calling into question whether the troubled insurer will ever be able to make good on the billions of dollars it owes U.S. taxpayers. A large part of the company’s plan to pay back the 83.5 billion of federal… »

NEW YORK: The small business credit market is about to take another major hit. Six weeks after Advanta abruptly froze all of its 1 million credit-card accounts, lending giant CIT Group hangs in limbo and is reportedly eying bankruptcy.But over the past nine months, the one-time financial services powerhouse has all but ceased making new… »

NEW YORK: The unemployment rate could top 10% later this year, the Federal Reserve said Wednesday, but the central bank also said it believes the end of the recession could be in sight.These forecasts were included in the minutes of the central bank’s June 24 meeting. At that meeting the Fed left its key interest… »

NEW YORK: General Motor’s Vice-Chairman Bob Lutz is back and he’s ready for a fight.Having reversed his earlier to decision to resign rather than work for what he feared would be a government-run company, Lutz, a famously straight talker, promises to take on competitors shot for shot as the carmaker’s marketing head.”I am very much… »

WASHINGTON (Reuters) — The Obama administration on Wednesday will send Congress legislation demanding that hedge fund managers submit to new registration and disclosure rules to boost transparency and limit any risks they pose to the financial system, a senior U.S. Treasury official said.”Later today, we will send legislative language to the Hill that requires… »

NEW YORK (Fortune) — Investors now have an easy way to bet on the direction of housing prices. Expect prices to rise? You can buy MacroShares Major Metro Housing Up (UMM). Fear they have further to fall? Go for MacroShares Major Metro Housing Down (DMM).Both products were created by MacroMarkets, an investment management company co-founded… »