Frontrunning: June 29

• Europe told G8 may use public funds for banks (Reuters)
• 1 in 5 choosing to default on mortgage even though they can pay (Palm Beach Post Money, h/t CB)
• Pimco on government manipulation in MBS prices (via GSEs): "The 30-year 5.50 percent coupons are insanely expensive. Even if this coupon cheapened a full point, I
  would still
  not like them and we are not even close to levels where I would
  consider buying them" (Reuters)
• Alex to become hurricane as swells reach gulf spill, BP refusing to cancel clean up ops (Bloomberg)
• Recession warning (Hussman)
• Google may lose Chinese license after government objections (Bloomberg)
• The three biggest liest about the economy (MarketWatch)
• Cantor Fitzgerald abandoning box-office futures despite regulatory approval (LATimes, h/t Max Keiser)
• Deficit reduction isn't the enemy of jobs (FT)
• Possible Chinese ASBM testing in East China Sea, 30 June-5 July (Andrew Erickson)
• G20 failed, again (Forbes)
• Legg Mason on the Colonel Blotto game (Legg Mason)
• Fire burning at Total's Lindsey U.K. oil refinery, fourth largest in the UK (Bloomberg)

Comments

[FranSix]

U.S. Banks Money Laundering(~$350b) For Mexican Drug Cartels:

http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-c...

[turds in the pu...]

US BANKs prefiere plata sobre el plomo

[overmedicatedun...]

Thanks Fran on posting this ..

why can't we control our southern border..

i can give you 350 billion reasons

(Boa, and others also jumped in to help the cartels how many more billions???)

Those that think they are supporting Human rights in encouraging illegal immigration are useful idiots or fools, or maybe just paid off by BOA or wachovia.

Now I understand why BOA was such a big supporter of illegals - it's always the money.

who is going to jail for money laundering?

Mr Lewis of BOA ,, he will be shocked to learn of money laundering just shocked it happened at his bank. tip of the hat to casablanca.

[doolittlegeorge]

US Treasuries hit high point in price and low in interest paid today.

[doublethink]

Your Tax Dollars At Work

The report said more than three billion dollars has been legally declared to leave Kabul International Airport over the past three years, a figure so large for such a poor country that it triggered concerns.

Transparency International, a watchdog, has ranked Afghanistan as the world's most corrupt nation.

http://rawstory.com/rs/2010/0628/lawmaker-blocks-afghan-aid-vows-one-dim...

[doublethink]

Quote of the Day

"We are losing our nation to lies about the necessity of war."

http://rawstory.com/rs/2010/0629/kucinich-we-losing-nation-lies-necessit...

[Jim B]

"1 in 5 choosing to default on mortgage even though they can pay"

Can't say I blame the strategic defaulters, if I were significantly underwater, I would also consider it.....  And house prices will likely move lower despite the governments efforts to prop them up.  When you defy gravity, it usually wins.

[michael63636]

ARBITRAGE OPPORTUNITY: BP DOWN IN LONDON UP IN US

http://www.londonstockexchange.com/exchange/prices-and-news/stocks/summa...

BP.  BP PLC  $0.25 BP  Currency GBX  Premium Equity Commercial Companies Price +/- % +/- Bid Offer Volume High Low Last close 302.90 -5.35 -1.74% 302.90 303.00 74,095,671 307.14 298.00 302.90 on 29-Jun-2010 As at 29-Jun-2010 16:39:56 - All data delayed by at least 15 minutes.

https://trading.investrade.com/

Detailed Quote for BP P.L.C. (BP)  $ 27.659

RT     0.609 (+2.25%) Volume: 36.33 m 11:58 AM EDT Jun 29, 2010

[Grand Supercycle]

As first suggested on June 23,  looks like the equity counter trend rally has ended.

http://stockmarket618.wordpress.com

http://www.zerohedge.com/forum/latest-market-outlook-1

[michael63636]

http://www3.valueline.com/vlquotes/quote_news.aspx?symbol=BP&viewoption=...

Bp Plc (BP)

2010-06-29@12:23:04 ET
BP Plc Makes First Payment of $71B for Gulf Spill(BP) (PSM)

BP Plc (NYSE:BP) paid $71 billion in bills stemming from the Gulf of Mexico oil spill, meeting the July 1st payment deadline, reports the Associated Press (AP).

AP reported that another $51.4 million bill is currently being prepared by the Obama administration for BP, as well.

Shares of BP are trading up 2.96% mid-Tuesday afternoon at $27.85.

Write to Chip Brian at [e-mail]

[michael63636]

http://noir.bloomberg.com/apps/news?pid=20601103&sid=akT9OgSeqTMw

June 29 (Bloomberg) -- Exxon Mobil Corp. and Royal Dutch Shell Plc may consider bidding for BP Plc after the London-based oil company lost more than half of its market value in the wake of the Gulf of Mexico oil spill, JPMorgan Cazenove Ltd. said.

Exxon Mobil has the stronger balance sheet and proven ability to integrate a large transaction, according to Fred Lucas, a London-based analyst at JP Morgan. It could make a cash and share offer, valuing BP at 473 pence a share compared with yesterday’s close of 308.25 pence, and including a $50 billion spin-off of BP’s downstream assets, according to JPMorgan.

BP’s market value has collapsed by more than $100 billion since the April 20 explosion aboard the Deepwater Horizon drilling rig that killed 11 crew members and caused the leak. The company has set aside $20 billion to pay for Gulf restoration and compensation claims and said yesterday the cost of battling the spill had reached $2.65 billion.

Any potential attempt to buy BP would have to be backed by “ruthless integration,” JPMorgan said. BP has many high quality assets, including deepwater positions and upstream operations, Lucas wrote under a future possible scenario.

Sheila Williams, a spokeswoman for BP, declined to comment, as did Kim Blomley, a London-based spokesman for Shell.

To contact the reporter on this story: Fred Pals in Amsterdam at [e-mail]

Last Updated: June 29, 2010 09:13 EDT