This A.M.: Lethargy on the Street; Empty Seats in NFL Stadiums; Bank-Buying is Breaking the Bank
Wisdom for a punch-drunk Wall Street (FT)
Book review of Henry Kaufman's The Road to Financial Reformation: Warnings, Consequences, Reforms. One of the Wall Street elder statesman's "biggest beefs is the Fed's tolerance of concentration in the financial system." Ten largest U.S. financial institutions control more than 50 percent of country's financial assets, compared with only about 10 percent in 1990. Glass-Steagall, he says, should have never been repealed.
Madoff Victims: Are You Kidding Me?! (WallStNation)
People duped by Bernie want not only their initial investments back but also the phony profits Madoff told them they earned. "U.S. greed rolls on."
Raft of Deals for Failed Banks Puts U.S. on Hook for Billions (WSJ)
FDIC's absorbing banks' risk on billions in loans. Shudder. Call it the Bank Buying Bubble. But the NYT looks at the bright side: "As Big Banks Repay Bailout Money, U.S. Sees a Profit," saying that "taxpayers have begun seeing profits" from the bailout of banks.
Can Rally Run Without Revenue? (WSJ)
OK, all these companies are leaner, and their quarterly reports reflect that, and investors are happy. Now, what about revenue? Sales are disappointing, most people are still in the grip of a recession that will get worse. We'll see when the third quarter reports are in just how bad the damage still is. NYT version: "Some Analysts See an End to Market Rally." More immediately, CNN says, "Wall Street braces for a hit." Sobering news that the market may be at its peak right now. Gloomy news from the Mole on Seeking Alpha: "Preview from Europe: Stocks Get the China Syndrome." And watch out: Inflation forces "are brewing."
Wall Street Stealth Lobby Defends $35 Billion Derivatives Haul (Bloomberg)
Gearing up to defend the $592 trillion over-the-counter derivatives market.
Recession runs interference as NFL teams try to score profits (CNN)
Overall attendance had already dropped slightly before the recession. For the upcoming season, neither the Jacksonville Jaguars nor the Minnesota Vikings have sold out any of their games.
A Hired Gun for Microsoft, in Dogged Pursuit of Google (NYT)
Focus on searchmaster Qi Lu, leading the war against Google by building Microsoft into a search giant.
Newsday Rejects Ads by Verizon, Now a Rival (NYT)
Taking time off from running the Knicks into the ground, the Dolan family (the paper's new owners) won't let Newsday sell ads for FiOS. A newspaper in the 21st century that's turning down ads? Yes.
Health Bill Would Cut Drug Spending for Many on Medicare, Budget Office Says (NYT)
Higher premiums, but supposedly lower overall drug spending for geezers. How much clout will the aging baby boomers have?
A 'Little Judge' Who Rejects Foreclosures, Brooklyn Style (NYT)
Justice Arthur Schack tilts against the bank's windmills, throwing out 46 of the 102 foreclosure motions that have come before him in the past two years. And he lambastes the banks in the process.
KENNEDY MEMOIR EXPECTED TO BE INSTANT HIT (NY Post)
Tight embargo on Teddy's True Compass, which will flood bookstores in mid-September.
Lehman Brothers UK sues US arm for $100 billion (Telegraph U.K.)
The complexity of dismantling Lehman. "Rifts have already emerged between the US and UK administrators."
Bank Failure Friday Claims Three More (ProPublica)
Three more small banks bite the dust. Running list here.
Get ready for 2,000 house parties, rallies, and "town hall" meetings.
The Economics of Men's Underwear (WashPost)
"For one answer to the nation's most pressing economic question -- when will the recession end? -- just take a peek inside the American man's underwear drawer."
Wind Farms Set Wall Street Aflutter (WSJ)
Not tilting at windmills, Morgan Stanley and Citigroup have each poured $100 million into wind-farm schemes.
Former Israeli Prime Minister Is Indicted (NYT)
Ehud Olmert is formally accused of "fraud, breach of trust, falsifying corporate records and failing to report income."
Wall Street pro's billion-dollar woes (CNN)
Deep profile of the problems of billionaire investor Chris Flowers.
Rep. Frank eyes Fed audit, emergency lending curbs (Reuters)
Barney wants to audit the Fed's books and at least slow down the Fed's loans to non-bank firms that want to buy banks.
Report Is Set to Criticize SEC Over Madoff Scheme (FOX)
Big probe to be delivered to SEC this week. How will the Obama Administration spin it?
