Bloomberg - "Bristol-Myers Posts Quarterly Loss on Investments" (1-31-08)

"Bristol-Myers Squibb Co., the maker of the anti-clotting pill Plavix, reported a fourth-quarter loss from investments in subprime securities that led to a $275 million charge. The subprime related expenses, the first recorded by a drugmaker in the quarter, may rise to as much as $417 million, said Rebecca Goldsmith, a spokeswoman for the New York-based drugmaker, in a phone interview today. The company also booked $522 million in costs for restructuring and an acquisition, recording a net loss of $89 million, or 5 cents a share."

Bloomberg - "MBIA Posts Biggest Loss, Considers New Capital Plans" (1-31-08)

"MBIA Inc., the world's largest bond insurer, posted its biggest-ever quarterly loss and may raise more capital to offset a slump in the value of subprime-mortgage securities. The fourth-quarter net loss was $2.3 billion, or $18.61 a share, prompting concern that the Armonk, New York-based company will lose its top credit rating. MBIA reported a day after FGIC Corp.'s insurance unit became the third financial guarantor lost its AAA grade by Fitch Ratings."

Times Online - "FBI targets senior bankers in far-reaching sub-prime fraud inquiry" (1-31-08)

"America's Federal Bureau of Investigation is investigating senior banking executives for insider dealing and fraud as part of a criminal inquiry into the sub-prime crisis, the agent leading the inquiry said yesterday. Neil Power, the head of the FBI's economic crimes unit, is heading the most far-reaching criminal investigation into the practices of the mortgage industry since it began to melt down last year, after years of increasingly lax lending finally fed through into an increase in defaults on home loans."

Yahoo - "Investors Want More Interest Rate Cuts" (1-31-08)

"Federal Reserve Chairman Ben Bernanke, criticized last year for being too tentative in cutting interest rates, has shown he can act boldly. But the Fed's two aggressive rate cuts in the past eight days have left investors demanding still more."

Economist.com - "Aggressive activism" (1-31-08)

"NO ONE could accuse America’s policymakers of standing pat as the economy flirts with recession. Congress is close to passing a fiscal-stimulus package worth just over 1% of GDP (the House of Representatives passed its version at $146 billion this week. And the Federal Reserve is loosening the monetary reins at the fastest pace in decades."

Orange County Register - "Calif. real estate licenses suffer first drop since ‘99" (1-31-08)

"The California Department of Real Estate reports that real estate licenses decreased vs. the year before in December for the first time since March 1999. As of December, the state had 548,959 folks with a real estate license — still the third highest number on record and equal to one licensee for every 22 Calif0rnia households or one for every 1.4 homes sold last year. But that’s down 0.1% from the number of licensees in December 2006 and from last November."

Los Angeles Times - "Trying to tap into home equity? We'll see" (1-31-08)

"Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They've been told by their lender that they can no longer take money out on their credit lines because sinking home prices have put them "upside down" on their mortgages. Countrywide Financial Corp. sent letters to 122,000 customers last week telling them they could no longer borrow against their credit lines because the total debt on the home exceeded the market value of the property. The lender says it is using computer modeling to determine which of its customers would have their cash spigot shut off."

Los Angeles Times - "Democrats propose new agency to deal with foreclosures" (1-31-08)

"Senate Democrats today demanded a much more forceful response to the crisis of home foreclosures, including the possible creation of a new government body that would purchase failing mortgages and help troubled borrowers refinance into new loans."

Real Estate Journal - "Lawmakers Offer PlansFor Homeowner Refinancing" (1-31-08)

"Lawmakers, looking for ways to aid homeowners in need of refinancing, are considering raising the caps on how much money states can borrow to finance housing projects, and easing other restrictions. Several lawmakers, Democrats and Republicans, are recommending raising the limits on tax-exempt municipal mortgage revenue bonds as a way to ease refinancing."