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Tansy_Gold

(17,867 posts)
Mon Sep 23, 2013, 08:43 PM Sep 2013

STOCK MARKET WATCH -- Tuesday, 24 September 2013

[font size=3]STOCK MARKET WATCH, Tuesday, 24 September 2013[font color=black][/font]


SMW for 23 September 2013

AT THE CLOSING BELL ON 23 September 2013
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Dow Jones 15,401.38 -49.71 (-0.32%)
S&P 500 1,701.84 -8.07 (-0.47%)
Nasdaq 3,765.29 -9.44 (-0.25%)


[font color=green]10 Year 2.70% -0.02 (-0.74%)
30 Year 3.72% -0.02 (-0.53%)[font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.








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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]


23 replies = new reply since forum marked as read
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STOCK MARKET WATCH -- Tuesday, 24 September 2013 (Original Post) Tansy_Gold Sep 2013 OP
The markets are seriously not happy Demeter Sep 2013 #1
Tolles bashes GOP too Demeter Sep 2013 #2
It's crunch time for me. Expect me next when you see me Demeter Sep 2013 #3
Global shares edge down as uncertainty sets in over global economy xchrom Sep 2013 #4
Regulator sues Morgan Stanley, eight others over faulty securities xchrom Sep 2013 #5
Ireland set to resist pressure from lenders and ease austerity xchrom Sep 2013 #6
Britain's Labour leader woos voters before 2015 poll xchrom Sep 2013 #7
Exclusive: Gulfport Energy ex-chairman received millions in free equity xchrom Sep 2013 #8
Fed to push hard with stimulus now; can step back later this year: Dudley xchrom Sep 2013 #9
After the floods, Colorado hospital finds itself isolated DemReadingDU Sep 2013 #10
When I was a School Nurse in New Mexico...... AnneD Sep 2013 #20
Robert Scheer: Obama’s Friends in Low Places. Fuddnik Sep 2013 #11
Dimon should be in prison..... n/t Hotler Sep 2013 #15
What about his Protector? Demeter Sep 2013 #19
In legal circles.... AnneD Sep 2013 #21
Obama is what sucked all the hope out of me. Obama could have been the one to.... Hotler Sep 2013 #23
US house prices show strong gains xchrom Sep 2013 #12
ZeroHedge: July Case-Shiller Housing Index Misses For Third Month In A Row DemReadingDU Sep 2013 #13
Shippers Poised to Return to Profit as Cargoes Grow 10%: Freight xchrom Sep 2013 #14
Consumer Confidence Index in U.S. Decreased to 79.7 in September xchrom Sep 2013 #16
Was this whistle-blower muzzled? antigop Sep 2013 #17
It's worse than that. Fuddnik Sep 2013 #18
I can see your public shaming picture now..... AnneD Sep 2013 #22
 

Demeter

(85,373 posts)
1. The markets are seriously not happy
Mon Sep 23, 2013, 10:22 PM
Sep 2013

Reality is a burden...and karma....well, let's just say, it's caught up.

xchrom

(108,903 posts)
4. Global shares edge down as uncertainty sets in over global economy
Tue Sep 24, 2013, 07:34 AM
Sep 2013
http://www.reuters.com/article/2013/09/24/us-markets-global-idUSBRE96S00E20130924

(Reuters) - A smaller than expected rise in German business sentiment in September and growing uncertainty over the strength of the global economy helped nudge world shares lower on Tuesday, while major currencies were trapped in tight ranges.

Germany's Ifo think tank said that its latest reading on business morale showed that the euro zone's biggest economy was on a sustainable growth path after weak start to the year, but that any recovery was likely to be modest.

"The further rise in German Ifo business sentiment confirms that the economy is recovering, but we continue to expect growth to be reasonably sluggish," said Ben May, a European economist at Capital Economics.

The euro initially slipped when the Ifo fell short of expectations though soon recovered to be little changed against the dollar at $1.35.

xchrom

(108,903 posts)
5. Regulator sues Morgan Stanley, eight others over faulty securities
Tue Sep 24, 2013, 07:36 AM
Sep 2013
http://www.reuters.com/article/2013/09/24/us-morganstanley-creditunion-lawsuit-idUSBRE98N02E20130924


(Reuters) - A U.S. regulator filed lawsuits against Morgan Stanley and eight other banks over the sale of nearly $2.4 billion in mortgage-backed securities to two credit unions that later failed, according to a filing.

Morgan Stanley and Morgan Stanley Capital I Inc, Barclays, JPMorgan Chase & Co's unit Bear Stearns, Credit Suisse Group, Royal Bank of Scotland Group and UBS sold faulty securities to Southwest and Members United corporate credit unions, the National Credit Union Administration (NCUA) said in its complaint.

Goldman Sachs Group Inc, Wachovia Corp, a unit of Wells Fargo & Co and Residential Funding Securities LLC, now Ally Securities, also sold faulty securities to Southwest, NCUA said.

"We continue to pursue accountability and recovery in the wake of billions of dollars in sales of faulty securities that led to the collapse of several corporate credit unions and handed the industry the costly bill of paying for the losses," NCUA Board Chairman Debbie Matz said.

xchrom

(108,903 posts)
6. Ireland set to resist pressure from lenders and ease austerity
Tue Sep 24, 2013, 07:38 AM
Sep 2013
http://www.reuters.com/article/2013/09/24/us-ireland-budget-idUSBRE98N09A20130924

(Reuters) - Ireland looks set to resist pressure from its international lenders and ease off on the pace of austerity after its finance minister said on Tuesday there was some flexibility on the severity of tax hikes and cuts due in next month's budget.

Ministers have been campaigning for months to use the slack afforded by a bank debt deal struck with the European Central Bank earlier this year to bring in a less stringent budget than the 3.1 billion euro ($4.2 billion) package originally planned.

But the International Monetary Fund, Ireland's central bank and, most recently, influential ECB Executive Board member Joerg Asmussen have all said the money should be held to cushion the weak Irish economy against any shocks ahead of an expected exit from the bailout later this year.

"We don't want to impose any hardship that isn't necessary," Finance Minister Michael Noonan told Newstalk radio.

xchrom

(108,903 posts)
7. Britain's Labour leader woos voters before 2015 poll
Tue Sep 24, 2013, 07:40 AM
Sep 2013
http://www.reuters.com/article/2013/09/24/us-britain-politics-idUSBRE98N0AX20130924


(Reuters) - Britain's Labour leader Ed Miliband will stake his claim to replace Prime Minister David Cameron at the 2015 election on Tuesday with an attack on government cuts that he blames for the longest fall in living standards in more than a century.

Miliband will try to improve his disastrous personal poll ratings and convince voters they can trust his opposition party with the economy, accusing Cameron of delaying the recovery from its worst crisis since World War Two.

In a speech to Labour's annual conference, Miliband will cast Cameron's Conservatives as the party of the rich and say only Labour will help families and small businesses bruised by years of stagnation, public cuts and weak wage growth.

Miliband, who beat his older brother to the leadership in 2010, hopes to silence party critics who want him to give a clearer message and do more to be seen as a future premier.

xchrom

(108,903 posts)
8. Exclusive: Gulfport Energy ex-chairman received millions in free equity
Tue Sep 24, 2013, 07:43 AM
Sep 2013
http://www.reuters.com/article/2013/09/24/us-gulfport-wexford-idUSBRE98N0EJ20130924


(Reuters) - Gulfport Energy Corp (GPOR.O), a publicly-traded oil and gas company based in Oklahoma City, allowed its former chairman to receive millions of dollars in equity interests at no cost in more than a dozen firms that have done business with Gulfport.

The equity stakes awarded to Mike Liddell, who stepped down as Gulfport chairman in June, were granted by Wexford Capital LP as part of an uncommon arrangement. While working for Gulfport, Liddell also served as an advisor for energy investments by Wexford, a $4.3 billion Connecticut investment firm.

In response to questions from Reuters about Liddell's dual roles, Gulfport said all "material terms" of Liddell's equity stakes had been disclosed to the U.S. Securities and Exchange Commission.

Gulfport appears to be in compliance with SEC disclosure requirements, said three corporate-governance specialists who reviewed Gulfport's SEC filings and its responses to Reuters.

xchrom

(108,903 posts)
9. Fed to push hard with stimulus now; can step back later this year: Dudley
Tue Sep 24, 2013, 07:45 AM
Sep 2013
http://www.reuters.com/article/2013/09/23/us-usa-fed-idUSBRE98J0W420130923

(Reuters) - The Federal Reserve must for now continue to push hard against threats to the U.S. recovery, but should still be able to reduce its support for the economy later this year, an influential central bank policymaker said on Monday.

In a strong defense of the Fed's shock decision last week to keep buying bonds unabated, New York Fed President William Dudley warned in a speech that fiscal uncertainties "loom very large" as Congress prepares to hash out a deal to avoid a government shutdown and raise the nation's debt ceiling.

At a separate New York event, Atlanta Fed President Dennis Lockhart likewise warned that America risked "losing its economic mojo" unless lawmakers worked to reverse declines in labor productivity and new job creation.

In San Antonio, the hawkish chief of the Dallas Fed, Richard Fisher, told reporters that he had pushed for the Fed to reduce its monthly purchases by $10 billion, and warned that by standing pat the Fed had hurt its credibility.

DemReadingDU

(16,000 posts)
10. After the floods, Colorado hospital finds itself isolated
Tue Sep 24, 2013, 09:14 AM
Sep 2013

9/24/13 After The Floods, Colorado Hospital Braces For Winter

As snow begins falling in Colorado's Rocky Mountain National Park, the town at its doorstep, finds itself newly isolated. The only year-round road into or out of Estes Park, Colo., now is the Peak to Peak Highway. It traverses a jumble of mountains all the way. It's not the kind of road an ambulance can scream over at 60 miles an hour. "Not while I'm in the back, hopefully," jokes ambulance driver and paramedic Erle Collum.

The recent flooding in Colorado washed out the other two roads into town for miles at a stretch. That's bad news for Estes Park Medical Center, the town's only hospital. Help from big city medical facilities that used to be an hour away is now more like three or four, via this single remaining road connecting the town to the rest of the world.

Collom says he's grateful the town's ambulances have four-wheel drive. "In the winter time we can get some pretty good snow around here, so it's a nice thing to have, just because of the area we work in," he says. It's typical that there's snow on the ground from late September through April.

Collom says at least one patient a day gets sent down the mountain to an urban hospital for more advanced care. And not everyone stable enough for the old hour-long ambulance ride will be able to take one stretching four hours or more. "They're not the best roads anyway, so I suspect it'll complicate things when winter finally comes around," he says.

The hospital already makes pretty frequent use of helicopters for the trip to larger hospitals. There's no place for airplanes to land, and mountain weather keeps helicopters grounded about half the time in winter, says Bill Collins, a paramedic who flies helicopter missions into Estes Park. "You're basically kind of like being in the center courtyard of a castle, and the castle walls are the mountains," he says.

more...
http://www.npr.org/blogs/health/2013/09/24/225317333/after-the-floods-colorado-hospital-braces-for-winter

AnneD

(15,774 posts)
20. When I was a School Nurse in New Mexico......
Tue Sep 24, 2013, 12:21 PM
Sep 2013

That was a real problem. On a good day, when everything was just perfect-we could get the patient down the hill and to the hospital in 35-40 minutes (the golden hour). We would transport them down the hill (mountain really) and we would call the hospital and they would dispatch their advanced life support ambulance to meet ours at the turn around half way down the mountain. But when does anything go perfectly in medicine.

My one experience involved a construction worker that was not wearing a safety harness and fell 18 feet from the roof of the gym and landing on the floor, hitting an I-beam on the way down. Our volunteer Ambulance crew was out on a run even further away than we were. Fortunately our Ag teacher was a well seasoned EMT (he ran the code and I handed him what I had in my first aid kit). It still took them over 30 minutes to hustle up a volunteer crew and get the ambulance to us.

We managed to get him down to the hospital, they stabilized him, and he was flown to Albuquerque (children went to Lubbock). There was no snow or wind so he got there fairly fast and survived. But, I have seen cases where we were not able to get advanced care for days because the planes were socked in due to weather.

Rural medicine is an entirely different ball game and I feel sorry for those folks in the mountains with the roads washed out. It will be double tough.

Fuddnik

(8,846 posts)
11. Robert Scheer: Obama’s Friends in Low Places.
Tue Sep 24, 2013, 09:19 AM
Sep 2013

That Barack Obama is such a kidder. No matter how awkward the moment, he’s got just the right quip to purchase some wiggle room. Remember when his old Chicago banking buddy Jamie Dimon, the CEO of JPMorgan Chase, first ran into that bit of trouble over his bank’s “London Whale” derivative scam? That scheme has already lost $6 billion with close to another $1 billion piled on by the SEC in fines last week after JPMorgan admitted it broke the law.

Well of course, being Obama, when the scandal first broke last year, the president picked a women’s daytime talk show, ABC’s “The View,” to deal with the scams of his leading Wall Street backer. “JPMorgan is one of the best-managed banks there is,” he told the “View” audience. “Jamie Dimon, the head of it, is one of the smartest bankers we got, and they still lost $2 billion and counting.”

Yes, counting; that $2 billion is now likely to end up around $16 billion given the future legal fees and possible payouts allotted to countering the myriad lawsuits connected with this admission of illegal activity. That’s aside from the mortgage fraud, Libor rate rigging and energy manipulation cases still confronting the beleaguered bank. Thursday, on the same day that Dimon’s bank got slapped with the SEC fine, federal regulators revealed that JPMorgan had agreed to pay $389 million in penalties and refunds to compensate for a credit card identity theft protection scam after $309 million already paid out in that case.

It should be remembered that this same Dimon, who appeared before a Senate committee wearing presidential cufflinks, once worked with Sanford Weill in engineering the reversal of the Glass-Steagall law to make Citigroup, a previously illegal merger of investment and commercial banks, possible. But despite his record as a leader in the radical deregulation of banking that caused all of the trouble, Obama turned to Dimon for direction on fixing the economy.

If you still require to be disabused of Obama’s pretend populism, consider his decision to select William M. Daley, JPMorgan’s representative in Washington, to be his White House chief of staff. It gave Dimon the key White House connection to accompany the passkey he already had at Treasury with his pal Timothy Geithner as secretary.

It was a real cozy arrangement; Dimon was still a governor of the New York Federal Reserve Bank, where he had served during Geithner’s presidency overseeing the banking meltdown. Geithner had been instrumental in arranging Fed financing for JPMorgan’s acquisition of troubled Bear Stearns through a $55 billion loan and later an additional $25 billion in TARP funds.

Once appointed Treasury secretary,

(snip)
http://www.truthdig.com/report/item/obamas_friends_in_low_places_20130924

 

Demeter

(85,373 posts)
19. What about his Protector?
Tue Sep 24, 2013, 12:12 PM
Sep 2013

Protecting Dimon is one of the less-lethal and illegal things he's done...

AnneD

(15,774 posts)
21. In legal circles....
Tue Sep 24, 2013, 12:31 PM
Sep 2013

that is called being an accessory and you are held accountable to a degree at which you participated in the criminal act.

But what am I flapping my lips for. This is America, with liberty and justice for the 1%.

Hotler

(11,440 posts)
23. Obama is what sucked all the hope out of me. Obama could have been the one to....
Tue Sep 24, 2013, 12:59 PM
Sep 2013

really turn this country around and bring some meaningful change. Like Bill Hicks said. "They take the newly elected president in a room and the lights go dark and they show him a movie of the Kennedy assignation from a different angle. The light come back on and they say any questions?" It makes me wonder what kind of dirt the PTB have on candidates. Or is it that the money is very good when they leave office? All I can do is shake my head when I think about O. I wonder if he turned out the way we wanted if the PTB would have killed him?

xchrom

(108,903 posts)
12. US house prices show strong gains
Tue Sep 24, 2013, 09:51 AM
Sep 2013
http://www.bbc.co.uk/news/business-24225746


US house prices are continuing to show strong growth according to a closely watched survey.

The S&P/Case-Shiller Home Price Index showed that prices rose 12.4% over the 12 months to the end of July.

The index measures single-family home prices across 20 cities, with 13 cities showing a rising annual growth rate.

Last week, the US Federal Reserve decided to maintain its effort to boost the economy, which involves buying $85bn worth of assets every month.

DemReadingDU

(16,000 posts)
13. ZeroHedge: July Case-Shiller Housing Index Misses For Third Month In A Row
Tue Sep 24, 2013, 10:01 AM
Sep 2013

It's all about what is spinned



9/24/13 July Case-Shiller Housing Index Misses For Third Month In A Row, Pace Of Increase At 10 Month Lows

There was something for everyone in the just released July Case-Shiller house price index. On one hand, on a year over year basis, the NSA Composite 20 city index rose 12.39% in July, up from 12.07% in June, and in line with expectations of a 12.40% increase. This was the highest annual price increase since the start of the great financial crisis. On the other hand, the same Composite-20 Index increased by just 0.62% in July on a SA M/M basis, missing expectations of a 0.80% increase, and down from the 0.88% increase in June. This was the third consecutive miss on a M/M basis, and while the Case-Shiller index continues to still rise, the momentum as can be seen in the chart below, is starting to fade, with the monthly increase posting at the lowest rate since September of 2012 when the rise was 0.52%.


edit to add graph


And the performance relative to expectations:


more...
http://www.zerohedge.com/news/2013-09-24/july-case-shiller-housing-index-misses-third-month-row-pace-increase-10-month-lows

xchrom

(108,903 posts)
14. Shippers Poised to Return to Profit as Cargoes Grow 10%: Freight
Tue Sep 24, 2013, 10:04 AM
Sep 2013
http://www.bloomberg.com/news/2013-09-23/shippers-poised-to-return-to-profit-as-cargoes-grow-10-freight.html

The shipping industry hauling commodities from coal to crops to iron ore is poised to return to profit for the first time since 2010 as the biggest capacity glut in its history diminishes.

Trade in the three largest dry-bulk cargoes will expand 10 percent to a record 2.91 billion metric tons in 2014, according to ACM Shipping Group Plc, the third-largest listed shipbroker. Rates will exceed owners’ break-even levels in 2014 for each of the four main vessel classes, according to 34 analyst estimates compiled by Bloomberg. Investors can profit by buying freight swaps, which are mostly trading below the analysts’ forecasts.

The industry is emerging from its largest-ever glut after record rates five years ago spurred owners to order an unprecedented number of vessels. Shipyards built about 4,300 carriers since then, which lined up end to end would stretch for about 570 miles, or about the length of the U.K. Deliveries are now slowing after earnings that fell as much as 84 percent since 2008 curbed orders.

“We’re starting on the path to recovery,” said Erik Folkeson, an analyst at Swedbank First Securities AS in Oslo, whose recommendations on the shares of shipping companies returned 37 percent in the past two years. “Fleet utilization will tighten, and that’s reflected in higher earnings.”

xchrom

(108,903 posts)
16. Consumer Confidence Index in U.S. Decreased to 79.7 in September
Tue Sep 24, 2013, 10:16 AM
Sep 2013
http://www.bloomberg.com/news/2013-09-24/consumer-confidence-index-in-u-s-decreased-to-79-7-in-september.html

The Conference Board’s index of U.S. consumer confidence decreased to 79.7 in September from a revised 81.8 a month earlier, data from the New York-based private research group showed today.

The median forecast in a Bloomberg survey of economists called for a decrease to 79.9. Estimates of the 78 economists ranged from 76 to 83. The measure averaged 53.7 during the recession that ended in June 2009.

Another report today showed home prices climbed in the 12 months to July by the most since February 2006.

The S&P/Case-Shiller index of property values increased 12.4 percent from July 2012 after advancing 12.1 percent a month earlier. The year-over-year gain matched the median projection of 31 economists surveyed by Bloomberg.

antigop

(12,778 posts)
17. Was this whistle-blower muzzled?
Tue Sep 24, 2013, 10:17 AM
Sep 2013
http://www.democraticunderground.com/101674196

The above article is mentioned here:

Quelle Surprise! More Proof that the FCIC was a Whitewash, Thanks to Angelides and Born
http://www.nakedcapitalism.com/2013/09/quelle-surprise-more-proof-that-the-fcic-was-a-whitewash-thanks-to-angelides-and-born.html

William Cohan has a damning account in the Sunday New York Times, “Was This Whistle-Blower Muzzled?” on how the Financial Crisis Inquiry Commission actively suppressed information that would inconvenience America’s favorite zombie bank, Citigroup. Recall that Sheila Bair’s book Bull by the Horns depicted in riveting detail how she engaged in a protracted battle with pretty much all the other regulators, with the Treasury leading the charge, to try to resolve or at least seriously clean up Citigroup, which by all the metrics the FDIC had (and even some OCC measures) was far and away the sickest big bank. Even though Bair could have put down the US depositary on her own authority, the other financial regulators withheld information about the operations not under the FDIC’s purview, which was almost half the bank. As much as she felt Citi needed to be put down, she felt she could not do so when she both had all the bank supervisors opposed to her and she was at an information disadvantage (that is, they’d pillory her even if their data confirmed what she was seeing, and because it was confidential supervisory information, she would be unable to get it divulged).

At least Bair put up a tenacious fight about Citi, even though Geithner, an acolyte of its board member Bob Rubin, used every bureaucratic device he could find to stymie her (Neil Barofsky has separately described how underhanded and persistent Geithner is, frequently working through cat’s paws). By contrast, another person who tried exposing the extent of the rot at Citi when it should have been safe to do so, long after the worst of the crisis was over, found himself blocked by people who were supposedly tasked with getting to the bottom of the crisis.

Richard Bowen III, a Citi executive who was chief underwriter of consumer lending, started warning the board in early 2006 that the bank was making way too many bad and fraudulent loans and could eventually face large losses. Increasingly desperate, he wrote Rubin in November 2007, which looks to have signed his death warrant at the global bank. Bowen demanded an outside investigation, which confirmed his allegation that mortgage lending controls had broken down in 2005. Nevertheless, CEO Chuck Prince signed the Sarbanes Oxley certification stating that the bank’s controls were sound (star NC pupils know that Sarbanes Oxley violations can serve as the basis for criminal prosecutions).

Fuddnik

(8,846 posts)
18. It's worse than that.
Tue Sep 24, 2013, 11:22 AM
Sep 2013

In his book, "Confidence Men", Ron Suskind writes that Barack Obama told Timmeh Geithner to come up with a plan to break up Citi. Timmeh just put it on the back burner and did nothing.

A couple of months later, at an Economics Advisors meeting, Obama asked how the plan to break up Citi was coming along (Timmeh was absent from that meeting). Christine Romer replied, "Mister President, there is no plan". Obama was visibly pissed, and said "There had better be". After the meeting, Romer promptly had her ass chewed off by Rahm Emmanuel for attacking poor little Timmeh, when he wasn't there to defend himself.

End of story.

How rotten is Citi? I got 15 credit card solicitations from them in just the last week, addressed to me, my wife, and my dead mother. And probably 10 the previous week. I just stick a page of the credit card agreement in the postage paid envelope and send it back. So far, the haven't sent any solicitations to the dogs yet. One can only hope.

AnneD

(15,774 posts)
22. I can see your public shaming picture now.....
Tue Sep 24, 2013, 12:38 PM
Sep 2013

Sara and Roscoe with a placard around their neck stating..."I went over my credit limit on my Citi Bank Cards and I didn't pay."
.
.
.
.
.
.
.
Oh the humanity.....

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