Items of Interest:
Citigroup's Worries Mount -- The bank's sinking shares indicate investors have lost confidence in CEO Vikram Pandit and it may be headed for a sale or another bailout
Investors are quickly losing faith in Citigroup (C). Shares of the company, once the largest and mightiest U.S. bank by assets and market value, have fallen 66% in November, and finished down 1.85, to 4.55, on Nov. 20. The last time the shares traded that low was 14 years ago. While the stock sank, the price soared on its credit default swaps, which measure the cost of insuring Citi's debt—another worrisome sign. The market woes are raising speculation that some sort of government intervention or major outside investment may be necessary...
Citi Weighs Its Options, Including Firm's Sale -- Executives at Citigroup Inc., faced with a plunging stock price, began weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright, according to people familiar with the matter.
Heidi Moore / Deal Journal:
Ugly, No VERY Ugly, Citigroup Numbers - The hits keep on coming at Citigroup...
Mortgage Crisis Archive -- This topic covers all the information and opinions on the current mortgage crisis and where the economy will go from here... This topic contains 571 news and 935 blog items...
Unconvinced Congress Tables Auto Decision -- With two of Detroit's Big Three automakers teetering on the brink of collapse, congressional leaders yesterday refused to advance a proposal for a federal bailout, saying auto industry executives had failed to persuade lawmakers that they would make good use of the money.
Instead, House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry M. Reid (D-Nev.) ordered General Motors, Chrysler and Ford to submit detailed proposals by Dec. 2 explaining how an emergency infusion of government cash could put them on a path to financial health...
New Jobless Claims Reach a 16-Year High, U.S. Says -- New claims for unemployment benefits jumped last week to a 16-year high, the Labor Department said Thursday, providing more evidence of a rapidly weakening job market.
The government said new applications for jobless benefits rose to a seasonally adjusted 542,000 from a downwardly revised figure of 515,000 in the previous week. That was much higher than economists’ expectations of 505,000, according to a survey by Thomson Reuters...
Paulson calls for regulating everyone and everything -- Treasury Secretary Henry Paulson spoke at the Ronald Reagan Presidential Library Thursday afternoon, giving some insights into where he thinks regulatory reform of Wall Street should be headed. Although Paulson did warn against rushing to rewrite regulatory laws, Paulson did call for a "market stability regulator" with broad oversight authority for all types of financial institutions, as well as any financial product whose market size presents a systemic issue...
Dawn Kopecki / Bloomberg:
Fannie, Freddie Suspend Foreclosures Through Jan. 9
Discussion: Don Surber, Wonkette and Truthdig
Record-Breaking Data Everywhere! -- One of the interesting aspects of this unprecedented housing collapse, credit crisis, economic recession and market crash has been all the new records we keep seeing...
Opinion Journal, THE LIBERAL JOURNAL, Washington Monthly, Obsidian Wings, Hullabaloo and Think Progress
- Twenty Reasons Why We Are Not Consuming - Nouriel Roubini, Forbes
- Auto Bailout Would Be Terrible for Free Trade - Matthew Slaughter, WSJ
- Bankruptcy for GM Is Best Solution - Joshua Rauh & Luigi Zingales, VoxEU
- Detroit Bailout: A Nation in Denial - Michael Moritz, Financial Times
- Time Is Running Out for a Stock Market Rally - Doug Kass, TheStreet.com
- The Case for Optimism Amid the Doom and Gloom - Andy Serwer, Fortune
- FHA-Backed Loans: The New Subprime - C. Terhune & R. Berner, BizWeek
- The End of an Era for the American Consumer - The Economist
- Ignore the Stock Market Until February - Andy Kessler, Wall Street Journal
- What's the Value of a Big Bonus? - Dan Ariely, New York Times
- How to Boost the Economy? No One Knows - Russell Roberts, Forbes
- Rubin, Summers Aren't Change We Can Bank On - Robert Scheer, Nation
- Did Speculators Lower Oil Prices? - J.T. Young, Investor's Business Daily
- Commodity Decline Augurs Africa Crisis - Richard Rahn, Washington Times
- GM, Ford and a Bridge Loan to Nowhere - Jim Manzi, New York Post
- The Secrets of Rupert Murdoch's Succession - Michael Wolff, Vanity Fair
- New Leaders Emerge from Banking Crisis - David Weidner, MarketWatch
- Bank Share Collapse Points to the Failure of TARP - John Tamny, RCM
- Barack Obama Should Keep TARP Alive - Clay Risen, New Republic
- History's Biggest Market Busts vs. How Financials Look - Money & Co.
- The Decline and Fall of Purchasing Power - James Picerno, Capital Spectator
- Sorry, Jeremy Grantham, You're Too Bullish - Henry Blodget, Clusterstock
- If Banks Don't Lend, They Shouldn't Be in Business - W. Buiter, Maverecon
- Stop the Green Carjacking - Kenneth Green, The American
- Can GMAC Save GM? - Felix Salmon, Market Movers