The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.
The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.
The board was erected to highlight the $2.7 trillion level of debt in 1989. The clock's owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.
Sign of the times? This house was sold on eBay for only $1.75. The state of Michigan has fallen on hard times ... and of course, McSame as left to campaign elsewhere. Guess he saw the story and just assumed it was $1.75M. The old coot!
Wachovia Corp. is in trouble. It purchased a bank that had questionable lending practices in 2006 and is now paying the price.
At least two major banks were reportedly in talks Sunday to buy Wachovia Corp., the latest U.S. bank to be the focus of investor anxiety over mounting losses tied to toxic assets.
The New York Times reported on its Web site that Citigroup Inc. and Wells Fargo & Co. are bidding in a possible emergency takeover of Charlotte, N.C.-based Wachovia.
The Wall Street Journal also listed Spain's Banco Santander SA as a possible bidder.
Wachovia spokeswoman Christy Phillips-Brown declined to comment on the reports, as did Citigroup spokeswoman Christina Pretto. Wells Fargo spokesmen could not be immediately reached for comment.
Wachovia's shares fell 27 percent in regular-session trading on Friday, and shed another 15 percent in after-hours dealings to end the week at $8.50, as investor worries heightened.
Wachovia's current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments
But like many other banks, Wachovia stands to benefit from the passage of the government's proposed $700 billion rescue plan — the details of which were emerging from Washington on Sunday.
This summer, Wachovia reported a $9.11 billion loss for the second quarter, announced plans to cut 11,350 jobs — mostly in its mortgage business — and slashed its dividend. Wachovia also boosted its provision for loan losses to $5.57 billion during the second quarter, up from $179 million in the year-ago period.
Earlier this month, Wachovia said it is on track to reduce securities and outstanding loans on its balance sheet by $20 billion this year, which will free up $1.5 billion in capital.
Additionally, Wachovia still expects to reduce expenses by $2 billion by the end of 2009.
However, the second-half expense benefit will be more than offset by $525 million to $650 million in severance and benefit costs related to previously announced job cuts, Wachovia said.
— AP Story via Yahoo! Business news
As home values decrease in South Florida, the following story appears in The Miami Herald
A campaign is under way to provide badly needed money to people cheated by rogue mortgage brokers.
The Florida Association of Mortgage Brokers and AARP are pushing for the revival of a special fund that was quietly killed by regulators a decade ago, saying it could help thousands of people who have lost their homes and savings.
''We should never have gotten rid of it,'' said Ritch Workman, president of the FAMB. "We are going to fight to bring it back.''
Workman and AARP spokesman Dave Bruns said their groups will press to reinstate the Mortgage Brokerage Guaranty Fund, which paid up to $20,000 to individual victims before it was shut down in the 1990s.
Though recent federal legislation requires states to provide some protection, there's no requirement to create a victims fund.
The effort to resurrect the program comes as Florida leaders prepare for sweeping changes in state law that governs the mortgage industry, including tougher restrictions on people who apply for broker licenses and stiffer penalties for those who commit fraud and other crimes.
Just last week, a state Cabinet report blasted the state's oversight of the mortgage industry, saying Florida regulators allowed hundreds of people with criminal histories to peddle loans, failed to alert police agencies to rogue mortgage operations, and ignored citizen complaints.
With Florida steeped in the nation's highest level of mortgage fraud, several lawmakers overseeing the home loan industry said they'll support legislation that brings the kinds of protection now being pushed by the two statewide groups.
