The Morning Download

Markets Fall in Asia, Europe Opens Higher (NYT): Markets in the Asia-Pacific region fell across the board on bank worries on Tuesday, but Europe posted modest gains.

Treasury lawyers overrule Geithner: PPIP players may be subject to pay caps. (TBI) If so, trash asset removal program officially doomed.

Roubini: You’re all fools. (TBI)   Dr. Doom ain’t buying this “green shoots” thing.  And the stock market has predicted six of the last zero economic recoveries.

Geithner May Refuse To Let Banks Pay Back TARP (WSJ): Geithner, in an interview, indicated that the health of individual banks won’t be the sole criterion for whether firms can repay bailout funds.

Citigroup’s Shareholders Wonder When Treasury Will Oust ‘Hall of Shame’ Board (Bloomberg).  They aren’t the only ones.

Fresh questions on Pandit’s future at Citi (FT) FDIC officials discuss possible successors.

Credit Rating Firms Using Freedom of Speech As a defence (WSJ) Faced with a rash of litigation over their ratings of mortgage-backed securities, credit-rating firms are hoping to rely on the First Amendment.

Geithner blasted on bail-out (FT) Tarp watchdog calls for closer scrutiny.

Pelosi Sets Wall Street Probe modelled on Pecora in 1933 After Market Crash. (Bloomberg).  Bankers beware.

Regulators Give Greater Weight to Loan Quality in U.S. Bank Stress Tests (Bloomberg).  But assumptions are still no doubt wildly optimistic.

Banks need to cut the charade and admit they’re not lending. (Marketwatch).  And while they’re at it, they need to explain why: Because creditworthy borrowers are waiting to spend (and borrow) until things get cheaper, and the banks will lose money if they lend to anyone else.




Whitney Expects Banks to Return to ‘Negative Earnings’


Roubini Says Stocks Rebound Is a ‘Bear Market Rally’

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