Bloomberg - "Paulson's Focus on `Excesses' Shows Goldman Gorged" (11-5-07)

"Treasury Secretary Henry Paulson says the U.S. is examining the subprime mortgage crisis to ensure that 'yesterday's excesses' aren't repeated. He could be talking about himself and his former firm, Goldman Sachs Group Inc. Paulson, 61, doesn't mention that Goldman still has on the market some $13 billion of almost $37 billion in bonds backed by subprime loans or second mortgages that it created while he was chief executive officer. Those bonds have an average delinquency rate of almost 22 percent, higher than the average of other subprime bonds from the period, according to data compiled by Bloomberg."

BBC News - "Foreclosure wave sweeps America" (11-5-07)

"A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (£480.6bn) worth of sub-prime debt."

Reuters - "SuperSIV fund faces new challenges: UBS banker" (11-5-07)

"On Sunday, Charles Prince resigned as chief executive of Citigroup as the bank said it might write off $11 billion of subprime mortgage losses on top of a $6.5 billion write-down last quarter. Five days earlier, Merrill Lynch & Co ousted Chief Executive Stanley O'Neal after an $8.4 billion write-down that was more than 50 percent higher than the bank had forecast."

CNN - "Subprime bailouts: Chump check" (11-5-07)

"Countrywide said it will refinance or restructure loans or reduce interest for hybrid ARM borrowers whose rates are scheduled to reset. And no one will have to pony up prepayment penalties for retiring loans early. Countrywide then announced it will rework loans, prime and subprime alike, for any troubled borrower, adjusting payments to reflect what individuals can afford. The company will administer the program with non-profit community advocate, the Neighborhood Assistance Corporation of America (NACA). Some troubled borrowers will escape with refinanced loans as low as 5.25 percent."

CNN - "Banks tighten lending standards" (11-5-07)

"More banks have tightened lending standards on home mortgages, the Federal Reserve said Monday in the latest sign of fallout from a spreading credit crisis. The Fed said that many banks reported tighter standards for traditional prime mortgages, nontraditional mortgages such as 'interest only' loans and for subprime mortgages, those offered to borrowers with weak credit histories."

Bloomberg - "U.S. Stocks Decline, Led by Financials; Citigroup, Merrill Fall" (11-5-07)

"U.S. stocks fell to the lowest in two weeks after Citigroup Inc. said it will report as much as $11 billion in additional writedowns, heightening concern that financial companies face more losses tied to subprime home loans. Citigroup, the largest U.S. bank by assets, tumbled for the fifth straight day after it said the charges will cut profit by as much as $7 billion. Morgan Stanley, Merrill Lynch & Co. and Goldman Sachs Group Inc. also dropped on speculation securities firms will post more writedowns on top of the $40 billion announced in the past four months. Home Depot Inc. and Lowe's Cos. led a gauge of retailers to the lowest in a year after Deutsche Bank Securities said the housing slump will hurt profits through 2008."

Bloomberg - "Subprime Contagion May Claim 10-Year Treasuries Next" (11-5-07)

"The U.S. housing slowdown that propelled 10-year Treasuries to their biggest gains since 2002 may soon make the same securities laggards in the government bond market. The notes returned 9.6 percent since mid-June as investors sought a haven from credit market losses caused by subprime mortgages, Merrill Lynch & Co. index data show. Sales of bonds backed by housing loans have dropped 20 percent this year as home purchases declined, according to Citigroup Inc., reducing the need for longer-maturity Treasuries as a hedge."

Reuters - "Fitch, Moody's cuts Citigroup rating; S&P may follow" (11-5-07)

"Moody's Investors Service cut Citigroup's long-term rating by one notch to 'Aa2,' the third-highest investment grade, from 'Aa1.' Fitch downgraded Citigroup to 'AA,' its third-highest investment grade, from 'AA-plus' and Standard & Poor's warned it may cut Citigroup's 'AA' rating, saying the bank could face a difficult environment across a number of fronts. Moody's and Fitch both assigned a negative outlook to the rating, indicating another downgrade is likely over the long term."

Bloomberg - "H&R Block Finance Chief William Trubeck Steps Down" (11-5-07)

"H&R Block Inc., the tax preparer that lost more than $1 billion making home loans to subprime borrowers, said Chief Financial Officer William Trubeck has stepped down. The company fell the most in two months in New York trading. Trubeck's departure from the largest U.S. tax filing service is 'effective immediately' and treasurer Becky Shulman is acting CFO, the Kansas City, Missouri-based company said today in a statement. H&R Block, which is negotiating to sell money-losing subprime lender Option One Mortgage Corp., hasn't decided if it will search for a permanent replacement, said spokesman Ron Iori."

Bloomberg - "Mishkin Says Fed Can Reverse Rate Cut If Unneeded" (11-5-07)

"Federal Reserve Governor Frederic Mishkin said last week's interest-rate cut was aimed at reducing economic risks and policy makers can take back the move should it prove 'unnecessary.' Fed officials 'perhaps could have waited for more clarity and left policy unchanged last week, but I believe that the potential costs of inaction outweighed the benefits,' Mishkin said at a conference in New York. 'Should the easing eventually appear to have been unnecessary, it could be removed.'"