Global markets mixed. Oil $49.
Chrysler preparing bankruptcy filing, gov’t has handshake deal with UAW. WSJ adds that Chrysler will file Chap 11 even if deal can be reached with bondholders.
PAULSON RECANTS: Now says Bernanke didn’t make him threaten Ken Lewis. Yes, it was an extraordinary time. But Bank of America shareholders got shafted. And Ken Lewis should still go.
Morgan Stanley may spin out prop trading desk, which has produced $6.5 billion since 2006. Why? In part because of TARP comp restrictions.
Economist says Shiller’s housing chart is “bogus.” But he comes to almost exactly the same conclusion about house prices.
PPIP applications due today (FT). Firms still concerned that if they play and win, Congress will change rules.