Bloomberg - "Bank of America Advances After Profit Beats Estimates" (7-21-08)

"Second-quarter net income at Bank of America, the biggest U.S. consumer bank, declined 41 percent to $3.41 billion, or 72 cents a share, exceeding the 54-cent average estimate of analysts surveyed by Bloomberg. Revenue was a record $20.6 billion and Chief Executive Officer Kenneth Lewis said there are no plans to cut the dividend."

Bloomberg - "Bill Gross Says Fannie Mae, Freddie Mac Mortgages `Excellent'" (7-21-08)

"Eight of the top 10 holdings in Gross's $128.8 billion Total Return Fund were mortgage-backed securities guaranteed by Fannie Mae, according to data compiled by Bloomberg News as of March 31, the latest date for which figures are available. Mortgage securities made up 61 percent of the fund as of June 30, up from 53 percent a year earlier, according to Pimco's Web site."

Bloomberg - "Paulson Pushes Covered Bonds, Sidestepping Congress" (7-21-08)

"Treasury Secretary Henry Paulson, aiming to create a new source of U.S. mortgage financing, wants banks to start issuing covered bonds without waiting for legislation from Congress. Regulators can provide the guidance that lenders are asking to be set in law, said a Treasury official working on the issue who declined to be identified. Banks want a standardized definition of a covered bond, which requires the lender to make good on payments if homeowners default, and guidelines on bondholder protections."

Bloomberg - "Freddie Mac May Slow Purchases of Mortgages, Bonds" (7-21-08)

"Freddie Mac, the second-largest U.S. mortgage-finance company, may cut purchases of home loans from banks and bonds backed by housing debt to shore up its capital amid record delinquencies. The government-sponsored company is also considering selling securities and reducing its dividend while it prepares to issue $5.5 billion of stock, McLean, Virginia-based Freddie Mac said in a July 18 filing with the U.S. Securities and Exchange Commission. JPMorgan Chase & Co. analyst Matthew Jozoff said in a report last week that growth in mortgage holdings of Freddie Mac and the larger Fannie Mae will be 'weak.'"

Bloomberg - "AIG, Chubb Among Insurers of Executives Facing Losses'" (7-21-08)

"American International Group Inc., Chubb Corp. and other insurers may lose money on coverage of U.S. corporate boards for the first year since at least 2002 as investors burned by subprime losses open more lawsuits."

Mercury News - "Homebuilders, schools at odds" (7-21-08)

"Either the Silicon Valley economy will grind to a halt, or thousands of students will be bused to overcrowded schools. In a dispute over San Jose's largest expansion of housing since its redeveloped downtown, two sparring public bodies predict looming disaster if the other has its way. The city of San Jose hopes to build 32,000 units of housing and add 83,000 jobs in the North San Jose area, extending along North First Street toward Alviso. But the Santa Clara Unified School District says it must accommodate the new families - and needs a way to fund at least three new schools."

Orange County Register - "June sees worst O.C. construction job loss in 15 years" (7-21-08)

"While O.C. construction bosses added 700 workers from May to June, total employment in this sector is off 6,100 people in a year — a 5.8% drop that’s the biggest tumble since 1993. (By the way, from 1990 to 2007, June’s typical one-month construction job surge is 1,600 workers, so even this year’s one-month gain isn’t great news!)"