Paulson and Bernanke ordered Ken Lewis to keep silent about the Merrill losses (WSJ). Startling testimony from BAC CEO highlights the veil of secrecy around the government’s approach to this crisis.
Government’s new offer in Chrysler deal still screws bondholders (WSJ). A bit better than the opening bid, but not much. What is the government thinking? That Chrysler bondholders should just do it for the country?
Banks will find out stress test results on Friday and have the weekend to “dispute” them. Should be some good leaks Friday afternoon.
Hamptons house prices plunge 23% (Bloomberg). Is that all? Call us when they drop another 23%.
Rep. Frank Slows Marget Regulation Bill Rather than rush a new bill through, Barney Frank decides to take a more deliberate approach. Probably good not to make it a rush-job.
Senate Advances Inquiry Of Crisis Both the House and Senate will likely hold hearings on the origins of the financial crisis. Get ready for a lot of political theatrics.