The Financial Landscape: BofA Deal Nixed; Goldman Sachs Deal Exposed

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Not So Fast, B of A: A small group of bond investors called Walnut Place has thrown a wrench into Bank of America's (BAC) massive mortgage securities settlement by rejecting the deal, which they say is tilted in favor of larger investors. Shares of the nation's largest bank by assets fell 3% Wednesday.

And on Thursday B of A suffered a loss in court, as a district judge in New York ruled that homeowners who contend that the bank stiffed them on mortgage-modifications intended to prevent foreclosure can proceed with a class-action lawsuit.

Goldman and the Government Cookie Jar, Cont'd: The Federal Reserve finally released details of a secret 2008 lending program for banks, revealing that a unit of Goldman Sachs (GS) took the largest single loan. The New York Times reports that Goldman "borrowed $15 billion from the Federal Reserve on Dec. 9, 2008, the Fed said in data released on Wednesday. The Fed made 28-day loans from March 7, 2008, to Dec. 30, 2008, as part of an $80 billion initiative... The information was released in response to a Freedom of Information Act request by Bloomberg." This news is of some interest since CEO Lloyd Blankfein has adamantly insisted that his firm could have survived the financial crisis without government assistance.

Social Safety Net on the Table:
According to The Washington Post, "President Obama is pressing congressional leaders to consider a far-reaching debt-reduction plan that would force Democrats to accept major changes to Social Security and Medicare in exchange for Republican support for fresh tax revenue." Obama seems to sense an opportunity for a major legislative achievement -- "something big," in the words of Reuters -- that addresses the looming budgetary crisis in entitlement spending. Obama's meeting with top congressional leaders is scheduled to begin at 11 a.m.

Strong Results in Retail: Reuters reports "no misses so far" in same-store sales for June: All 10 retailers who have reported -- including Limited Brands (LTD), Costco (COST), Hot Topic (HOTT), and Wet Seal (WTSLA) -- beat their estimates. Fourteen companies have yet to report. According to Reuters, the retail outlook is good: "Summer vacation started and there's been an increase of teenagers shopping at the mall. Positive same store sales are expected across the board, as retailers managed leaner inventories. Warm weather is driving seasonal items that seem to have sold well in the second quarter, positioning retailers well for the Back-to-School season."



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zzhanzhidan

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July 08 2011 at 6:00 AM Report abuse rate up rate down Reply
zzhanzhidan

As the cheap basketball jerseys online store of the NBA, we offer you a large selection of new NBA 2008 USA Olympic Basketball Jerseys. From adidas Atlanta Hawks jerseys in the official team colors to Mitchell & Ness, the NBA Jerseys Shop has it all in every popular size. Celebrate the 2008-2009 NBA season with the latest Hawks custom apparel and NBA 2008 USA Olympic Basketball Jerseys clothing as well as Hawks memorabilia and other exclusive merchandise. Visit the best basketball jerseys NBA Store regularly for great discounts, free shipping offers on top all star player discount basketball jerseys and the latest fan gear for men!And maybe you will also like the NBA 2008 USA Olympic Basketball Jerseys and NBA 2009 All Star Jerseys on our Nbajerseyss.com

July 08 2011 at 5:58 AM Report abuse rate up rate down Reply
ATM

If the SEC allows them to stay in business, then they are as corrupt and as ineffective as they appear to be. We are now an Investment Bank Government, run by alumni of investment banks... trying to play currency trades rather than providing representative government. Charges of Treason should go to all levels, bar none.

July 07 2011 at 8:36 PM Report abuse rate up rate down Reply
ATM

Who advised Iceland on financial matters? - you knw- to do off-balance sheet financing- Iceland is bankrupt. Who advised Greece? Who Advised Portugal? Who advised Italy? Who turned the US Government into an investment bank, playing with the Treasury and making it a pawn in a high stakes game of Investment Bank Roulette?

We all know who.

It is disgusting, and it is wrong. And it is treason.

July 07 2011 at 8:34 PM Report abuse rate up rate down Reply
faulmm

Way to go Tom. It makes no difference though. There are fewer retirees to vote and they die sooner. There are more poor people and illegal who vote. It is only votes and political contributions that count. Screw the oldsters. Mike

July 07 2011 at 4:39 PM Report abuse -1 rate up rate down Reply
1 reply to faulmm's comment
jbumonkey

how about all the old timers saying screw the youngsters. it wasn't the newer generations that put this county in massive debt or takes money from their paychecks to put in ss and medicare that they'll never see a single cent of. it's awfully selfish and arrogant to think you oldsters are getting the shaft when your generations caused all this mess and put this country close to bankruptcy. the youngsters who grow up in this mess made by the oldsters generations....get left with a mess to clean up, and debt to drive them into poverty from day one. you really are going to sit there and complain? that's like being the rapist and complaining that the victim didn't lie still enough, for you.

July 07 2011 at 5:18 PM Report abuse +1 rate up rate down Reply
larryeart

The JOBS market has missed its target. The Housing market has missed its target. Unemployed Americans ( many now used up unemployment) are missing ALL their targets. What a disconnect-the wealthy are having a stock market rally the last 9 minths....meanwhile low-middle income Americans' economic plight gets WORSE every single week. USA is like two separate countries...maybe we need TWO separate governments!! ONE could then fight for the poorer!

July 07 2011 at 4:32 PM Report abuse rate up rate down Reply
1 reply to larryeart's comment
jbumonkey

the stock market rally is due to multi-national corporations and all the money they are making in foreign countries. america is still in this recession, and it appears it's getting worse.

July 07 2011 at 5:12 PM Report abuse +1 rate up rate down Reply
havecash

Surprise, surprise....Lloyd Blankfein lied to people....He did the same before Congress and hasn't been charged, yet.

July 07 2011 at 4:03 PM Report abuse rate up rate down Reply
Law Rec Sy

Social security is not an entitlement. Check your paystubs.

July 07 2011 at 3:22 PM Report abuse +3 rate up rate down Reply
4 replies to Law Rec Sy's comment