Bank of America Leads Lehman Bidders; Treasury Balks By Yalman Onaran Sept. 12 (Bloomberg) -- Bank of America Corp. leads a list of potential bidders for Lehman Brothers Holdings Inc., a person with knowledge of the talks said, even as the U.S. Treasury opposed funding a deal and the structure of any transaction remained in flux. Chief Executive Officer Richard Fuld, who built Lehman into the biggest U.S. underwriter of mortgage securities during his four decades at the investment bank, was pushed toward a forced sale after talks about a cash infusion from Korea Development Bank ended, sparking a drop of more than 75 percent in the firm's market value in the past four days. http://www.bloomberg.com/apps/news?pid=20601087&sid=airWpYw5k9Vw&refer=home
Alt-A Mortgages Next Risk for Housing Market as Defaults Surge By Dan Levy and Bob Ivry Sept. 12 (Bloomberg Homeowners lured by low introductory rates to Alt-A mortgages, which typically require little or no proof of a borrower's income, may fuel the next wave of foreclosures and further delay a recovery from the worst housing decline since the 1930s. Almost 16 percent of securitized Alt-A loans issued since January 2006 are at least 60 days late, data compiled by Bloomberg show. Defaults will accelerate next year and continue through 2011 as these loans hit their three- and five-year reset periods, according to RealtyTrac Inc., an Irvine, California-based foreclosure data provider. http://www.bloomberg.com/apps/news?pid=20601109&sid=arb3xM3SHBVk&refer=home Paulson Adamant No Money for Lehman, Fed Against It By Craig Torres and Rebecca Christie Sept. 12 (Bloomberg) -- Treasury Secretary Henry Paulson is adamantly opposed to using government funds to aid Lehman Brothers Holdings Inc., and Federal Reserve officials are inclined to agree. A person familiar with Paulson's thinking said Wall Street has been aware of Lehman's troubles for a long time and had time to prepare for any crisis at the company. The access Lehman has to loans from the central bank will allow an orderly process, the person said. Fed officials are aligned with the Treasury a http://www.bloomberg.com/apps/news?pid=20601068&sid=azMNL.tm5ckk&refer=economy AIG May Announce Its Turnaround Plan Before Sept. 25 Deadline By Hugh Son Sept. 12 (Bloomberg) -- American International Group Inc., the largest U.S. insurer by assets, may announce a turnaround plan before the previous deadline of Sept. 25, a person familiar with the company said. The plan may include selling assets, raising capital and restructuring the company, said the person, who declined to be named because New York-based AIG hadn't made an official announcement. To contact the reporter on this story: Hugh Son in New York at [EMAIL PROTECTED] http://www.bloomberg.com/apps/news?pid=20601087&sid=a6r6t3k8uX4A&refer=home Washington Mutual Sees $4.5 Billion Loan-Loss Provision in Quarter Sept. 11 (Bloomberg) -- Washington Mutual Inc., the savings and loan that lost a third of its value this week, said that it is ``well capitalized'' and forecast a third-quarter loan-loss provision of $4.5 billion. Net charge-offs may increase by less than 20 percent in the third quarter, compared with 60 percent in the previous period, the Seattle- based lender said today in a statement. WaMu said it has $50 billion in liquidity. http://www.bloomberg.com/apps/news?pid=20601087&sid=aeWYL8tllp7s&refer=home --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
