Countrywide

Italy Races To Arrange €5 Billion Bailout For Monte Paschi Before Friday's Stress Test

Italy is scrambling to secure a privately-backed bailout of Monte dei Paschi di Siena, the most exposed of the country’s troubled lenders, including a plan to raise €5bn of fresh capital so as to avert nationalisation, the FT reports. The bank needs to obtain some €5 bilion in capital ahead of Friday's stress test, or else a dire "contagion" scenario could unfold that could impair not only all Italian banks, but promptly spread first to France and then to Germany...

Cleveland Cop Responds To Baton Rouge Shooting: "Obama Has Blood On His Hands"

"It's absolutely insane that we have a president of the United States and a governor of Minnesota making the statements they made less than one day after the police-involved shootings," said an emotional Cleveland Detective Steve Loomis. "How the hell did we ever become the bad guys in this country? I cannot imagine how we got here. It's the irresponsible reporting of the media. And the irresponsible statements of people that are credible like the president of the United States."

Here We Go Again - Stockman Warns Of August 2007 Redux

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy and elsewhere in Europe and the sudden trading suspensions by four UK commercial property funds. If this is beginning to sound like August 2007 that’s because it is. And the denials from the casino operators are coming in just as thick and fast.

Too Orange To Jail? US Government Drops Suit Against Countrywide's Mozilo

U.S. prosecutors have abandoned their case against Angelo Mozilo, the over-tanned character at the center of the risky subprime mortgages that fueled the financial crisis, after a two-year quest to bring a civil suit against him. As Bloomberg resports, The Justice Department has decided not to sue Mozilo, according to people familiar with the matter, ending a decade-long hunt for someone, anyone to jail over what happened.

Scotland Bans Fracking... Forever

The Scottish Parliament voted to ban fracking countrywide on Wednesday, making a moratorium on the controversial technique a permanent affair.

Bank of America's Winning Excuse: "We Didn't Mean To"

A federal appeals court overturned a $1.3 billion judgement against Bank of America, ruling that good intentions at the outset shield bankers from fines for subsequent fraud... “Is the idea that a good state of mind initially can insulate you from fraud later on?” exclaimed one law professor, adding, "that would be a very strange and troubling doctrine...it almost seems like the 2nd Circuit fell victim to a lawyer’s trick."

Frontrunning: May 27

  • Oil prices ease from seven-month high to below $49 (Reuters)
  • Wall Street Waits for Yellen Before Taking Off for a Long Weekend (BBG)
  • Donald Trump Celebrates Clinching GOP Delegate Race (WSJ)
  • Trump vows to undo Obama's climate agenda in appeal to oil sector (Reuters)
  • Japan Fails in Bid to Have G-7 Warn of Global Crisis Risk (BBG)
  • Valeant Rejected Joint Takeover Approach From Takeda, TPG (WSJ)

Wells Fargo Reintroduces 3% Down Mortgages

Wells Fargo & Co. is rolling out a new mortgage for borrowers making minimal down payments, an offering that could allow the bank to step back significantly from a controversial Federal Housing Administration program. The bank’s new mortgage allows borrowers?with credit scores?as low as 620 on a scale of 300 to 850?to make down payments of as little as 3%, while also allowing them to use income from family members or renters to qualify.

Frontrunning: May 24

  • Asian stocks near 11-week lows, dollar bounces on Fed rate view (Reuters)
  • Poll Finds Lack of Enthusiasm for Clinton and Trump (WSJ)
  • Oil falls for fifth day as focus returns to growing exports (Reuters)
  • The Hedge Fund That Couldn't Stay Open Long Enough for a Big Payday (BBG)
  • French police break up refinery blockade in anti-reform showdown (Reuters)

Institutionalized Lying - Why Central Bankers Never See Bubbles

Every day there is more confirmation that the casino is an exceedingly dangerous place and that exposure to the stock, bond and related markets is to be avoided at all hazards. In essence the whole shebang is based on institutionalized lying, meaning that prouncements of central bankers, Wall Street brokers and big company executives are a tissue of misdirection, obfuscation and outright deceit. And they are self-reinforcing, too.

Goldman Slammed With $5.1 Billion Fine For "Serious Misconduct" In Mortgage Selling

Hot on the heels of Wells Fargo's $1.2 billion settlement, Bloomberg reports that Goldman Sachs will pay $5.1 billion to settle a U.S. probe into its handling of mortgage-backed securities involving allegations that loans weren’t properly vetted before being sold to investors as high-quality bonds. “This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart Delery.