Another Freaking Bank Bailout. WTF over!

WASHINGTON (AP) -- Treasury officials and regulators are weighing a fresh round of bailouts for banks that were deemed too risky to qualify for earlier aid.

Representatives from the Treasury Department, Federal Deposit Insurance Corp. and House Financial Services Committee discussed the plan by phone Thursday, said California Bankers Association Chairman Dan Doyle, who was on the call.

Small community banks are struggling as commercial real estate and other loans go sour. Officials and industry representatives are considering how to get money to those banks, Doyle said Friday.

The new program could force Treasury to postpone closing its $700 billion bailout fund, which is scheduled to expire this year. That decision has become a political hot potato amid public backlash against bailouts and a rising deficit.

Other banking industry leaders confirmed that the conversations are taking place. They did not know when Treasury might announce the plan.

Treasury spokesman Andrew Williams would not comment on the proposed program. Treasury is "continually monitoring economic conditions and exploring options to ensure that a sustainable recovery is taking hold on Main Street," he said in a statement. An FDIC spokesman did not respond to requests for comment.

The money could go to banks whose ratings by regulators made them too weak to qualify for earlier rounds of funding. It may be limited to banks with less than $5 billion on their books. The banks could be required to raise matching money in the private markets, Doyle and others said.

"The rules were pretty restrictive," Doyle said. "They want to give another opportunity for some of the community banks."

As with earlier capital injections, banks eventually will have to repay Treasury with interest.

The move could prevent some small bank failures, which would ease pressure on the FDIC's dwindling fund that insures bank deposits.

House Financial Services Committee Chairman Barney Frank, D-Mass., has been "very, very supportive" of extending the program to reach more community banks, said committee spokesman Steve Adamske. Frank had talked with Treasury Secretary Timothy Geithner about the plan, Adamske said.

"We're very concerned about the community banking sector," Adamske said. "We await Treasury's decision."

One challenge is that the program was designed for larger banks that are publicly traded, he said. Many community banks are privately owned or held by small groups of investors, making it more complicated for them to participate.

A leading bailout critic on the committee called the proposed expansion "a uniquely bad idea."

"It creates even greater taxpayer exposure for the program, where the taxpayer is certainly not going to recoup anywhere near his investment," said Rep. Jeb Hensarling, R-Texas, who sits on the congressional panel that oversees the $700 billion fund.

At a forum Friday, Rep. Maxine Waters, D-Calif., told Federal Reserve Chairman Ben Bernanke that she worries about the ability of small and minority-owned banks to access capital.

Bernanke responded that the "the best source" was the government's $700 billion bailout fund. He also said the government was looking at expanding the program to make it available "very broadly for access." He offered no details.

Rep. Jim Costa, D-Calif., who arranged for Thursday's call, said bankers in his Fresno district were suffering from high unemployment and foreclosure rates. He said the additional money would allow banks to lend more to "those who need it most."

Small banks currently have until Nov. 9 to apply for the money. If more banks are deemed eligible, the deadline could be pushed back, as the application process can take months to complete.

The plan could prevent officials from winding down the $700 billion fund that is set to expire on Dec. 31.

Republican lawmakers and some Democrats want Treasury to stop lending now that the financial markets have stabilized. Frank said this week that he supports extending the program beyond the end of the year.

Geithner has trumpeted the end of some emergency financial programs as signs the economy is recovering. The department expects to see tens of billions of dollars in additional repayments to the fund in coming months.

But Doyle said FDIC officials still expect up to 150 bank failures this year. So far, 95 banks have been closed. That's the most since 1992, during the savings-and-loan crisis. Officials are scrambling for a way to add money to the deposit insurance fund, and may levy a second extra fee on the banking industry.

Officials have said the capital injections from Treasury are intended for healthy banks not at risk of failing.

Lobbyists for small banks say the rules have been too restrictive, discriminating against smaller institutions that are likely to succeed.

"We believe the criteria to determine viability have been too strict," said Karen Thomas, the top lobbyist with the Independent Community Bankers of America.

Banks that want government money should be required to raise some private capital to prove that the market believes they will succeed, she added.

The program would help "avoid any preventable bank failures," bolster the FDIC's deposit insurance fund and help small banks "weather the storm," Thomas said.

---

AP Economics Writer Jeannine Aversa contributed to this report.

SPX near lod, VIX reverses (good sign), XLB XLK below wedge, USO near supt, SPX wkly at 4 wk EMA

China Update - critical level to hold or downtrend continues... pretty clear it's topped out

SPX 1041 lod, TLT in breakout mode but under res up over 1%. $VIX over all EMAs today

1004 is next support on a wash out.

Flat to red XLE strong, watch 1040 on SPX and the RSI 50 lvl for possible reversals. RIMM ect have the bulls wondering if we get more than 60% run

Today's prices off that up 600% since March list. ZOOM hammered

  Symbol Name Close Change % Change
Date
TRGT Targacept Inc. (TRGT) 19.59 +0.01 +0.05% 2009-9-24
SMRT Stein Mart, Inc. (SMRT) 12.65 -0.13 -1.02% 2009-9-24
RINO RINO International Corp. (RINO) 17.24 -0.25 -1.43% 2009-9-24
JNY Jones Apparel Group, Inc. (JNY) 17.68 -0.33 -1.83% 2009-9-24
FUQI Fuqi International Inc. (FUQI) 29.33 -0.64 -2.14% 2009-9-24
CETV Central European Media Enterprises Ltd. (CETV) 33.95 -0.77 -2.22% 2009-9-24
SAH Sonic Automotive, Inc. (SAH) 10.11 -0.23 -2.22% 2009-9-24
AINV Apollo Investment Corp. (AINV) 9.72 -0.24 -2.41% 2009-9-24
ASH Ashland, Inc. (ASH) 42.37 -1.14 -2.62% 2009-9-24
OMX OfficeMax Inc. (OMX) 12.68 -0.35 -2.69% 2009-9-24
BCS Barclays Plc (BCS) 23.35 -0.65 -2.71% 2009-9-24
SOA Solutia Inc. (SOA) 12.31 -0.39 -3.07% 2009-9-24
FITB Fifth Third Bancorp (FITB) 9.54 -0.31 -3.15% 2009-9-24
HGSI Human Genome Sciences, Inc. (HGSI) 18.27 -0.60 -3.18% 2009-9-24
SGY Stone Energy Corp. (SGY) 15.93 -0.55 -3.34% 2009-9-24
OFG Oriental Fncl Group, Inc. (OFG) 13.09 -0.51 -3.75% 2009-9-24
SEH Spartech Corp. (SEH) 11.35 -0.45 -3.81% 2009-9-24
ABG Asbury Automotive Group Inc. (ABG) 12.54 -0.51 -3.91% 2009-9-24
TRW TRW Automotive Holdings Corp. (TRW) 16.71 -0.69 -3.97% 2009-9-24
UTA Universal Travel Group (UTA) 12.56 -0.56 -4.27% 2009-9-24
ANN Anntaylor Stores Corp. (ANN) 15.56 -0.72 -4.42% 2009-9-24
SMP Standard Motor Prod, Inc. (SMP) 14.34 -0.72 -4.78% 2009-9-24
GGC Georgia Gulf Corp. (GGC) 28.90 -1.46 -4.81% 2009-9-24
DNDN Dendreon Corp. (DNDN) 26.90 -1.37 -4.85% 2009-9-24
VNDA Vanda Pharmaceuticals Inc. (VNDA) 11.88 -0.62 -4.96% 2009-9-24
TCK Teck Resources Ltd. (TCK) 26.62 -1.41 -5.03% 2009-9-24
AGO Assured Guaranty Ltd. (AGO) 19.35 -1.08 -5.29% 2009-9-24
CENX Century Aluminum Co. (CENX) 9.76 -0.57 -5.52% 2009-9-24
VCI Valassis Comm, Inc. (VCI) 15.92 -0.95 -5.63% 2009-9-24
GNW Genworth Financial Inc. (GNW) 12.06 -0.74 -5.78% 2009-9-24
IRE Ireland Governor & Co. Bk (IRE) 17.25 -1.14 -6.20% 2009-9-24
ATPG ATP Oil & Gas Corp. (ATPG) 17.40 -1.21 -6.50% 2009-9-24
CAR Avis Budget Group, Inc. (CAR) 12.35 -0.87 -6.58% 2009-9-24
TEN Tenneco Automotive (TEN) 13.42 -0.99 -6.87% 2009-9-24
DTG Dollar Thrifty Auto Grp (DTG) 23.15 -1.75 -7.03% 2009-9-24
LVS Las Vegas Sands Corp. (LVS) 17.40 -1.34 -7.15% 2009-9-24
MAPP Map Pharmaceuticals Inc. (MAPP) 9.69 -0.82 -7.80% 2009-9-24
BCRX BioCryst Pharmaceuticals, Inc. (BCRX) 8.36 -0.78 -8.53% 2009-9-24
RDN Radian Group, Inc. (RDN) 10.53 -1.19 -10.15% 2009-9-24
ZOOMD Zoom Telephonics, Inc. (ZOOM) 7.80 -1.11 -12.46% 2009-9-24
List Notes:

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DJIA finished much better than the broad mkt, UUP looks like it may not be a good bottom yet so we may get a spike to new highs.. UUP USO /UNG below

AND RIMM - 13% AH on a ER miss

1045 LOD, Bounce time?

Broad market (IWM) off 2.5%, DOW off .7%.... 4 X the Dow.....bailing out of trash today I guess

Looking for a short term bounce around 1040

UUP (USD) could give a closing bottom sig if it stays up here today...bearish for metals oil and stocks

Fibs on the SPX, 924 is 38% retracement, FWIW MACD is at the sig line here at 1052 on the SPX

Follow though selling, 1040 is next support, 30 SPX point reversal so far

20 Point SPX reversal off FOMC, 1060 close. FOMC Slow to no growth justifing low/zero rates = more nervous longs

FYI, forget that $VIX buy signal...all red now...selling is different, huh

Got the $VIX buy sig if we close up around here

Spike and reverse after same old Fed FOMC comments...not helping Oil from the d

Set up for the FOMC PR at 2:15 ET

USO UNG pair working in reverse with trend line broken and rsi sig to sell USO and buy UNG. 25% move off highs

Market flat with energy weak (UNG up though)

USO oil report killing it... at trend support, see if it holds

TAN (Solar ETF) having a hard time around the 200 EMA for the last few months...spike due?

TLT 20yr bond 5 th try at downtrend line here TMF TMV for the 3X

New SPX closing high RSI non conf, and $VIX at support?

US Dollar near capitulation

Looking for clues in the $VIX...new lows and an RSI sig (buy for stocks) not too far away

Boy, Gov't control of markets is how I read this!! World PPT

U.S. to push for new economic world order at G20
Mon Sep 21, 2009 7:19pm EDT



By Alister Bull

WASHINGTON (Reuters) - The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice.

A document outlining the U.S. position ahead of the September 24-25 Group of 20 summit in Pittsburgh said exporters, which include China, Germany and Japan, should consume more, while debtors like the United States ought to boost savings.

"The world will face anemic growth if adjustments in one part of the global economy are not matched by offsetting adjustments in other parts," said the document, which was obtained by Reuters on Monday.

Link

A meltup to 1150 plus could be in in the cards this week looking at the MACD, if it holds and kisses up here

Still no momo here...hummmm

After a good pop at the open SPX is having a problem in this set up to the upside, xle f b, ect up over 1% 1%

I won't bother with pair trades unless you want them

Following / trading, USO UNG, FSLR ENER, XLE USO, GLD SLV, AXP DFS, BIDU GOOG, XLE XLF, UAUA LCC among others

SPX weekly, 1051 and 1019 are pullback points "this week" to reload if you are flat

Airlines back to the top of their run again today LCC UAUA +10% Oil and UNG -3 PLUS %

EOD set up for a new high no doubt

Short list performance so far today

Default SharpChartGallery PageP&F Chart ZOOM Zoom Telephonics, Inc. (ZOOM) 10.90 -0.66 -5.71% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart TEN Tenneco Automotive (TEN) 14.00 -0.76 -5.15% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart CENX Century Aluminum Co. (CENX) 10.75 -0.54 -4.78% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart BCRX BioCryst Pharmaceuticals, Inc. (BCRX) 9.62 -0.40 -3.99% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart CETV Central European Media Enterprises Ltd. (CETV) 36.60 -1.48 -3.89% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart RDN Radian Group, Inc. (RDN) 11.68 -0.47 -3.87% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart TRW TRW Automotive Holdings Corp. (TRW) 16.84 -0.65 -3.72% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart AINV Apollo Investment Corp. (AINV) 9.95 -0.36 -3.49% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart IRE Ireland Governor & Co. Bk (IRE) 18.69 -0.60 -3.11% 2009-9-21, 11:53ET
Default SharpChartGallery PageP&F Chart ANN Anntaylor Stores Corp. (ANN) 16.93 -0.47 -2.70% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart OFG Oriental Fncl Group, Inc. (OFG) 13.58 -0.37 -2.65% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart MAPP Map Pharmaceuticals Inc. (MAPP) 10.45 -0.27 -2.52% 2009-9-21, 11:49ET
Default SharpChartGallery PageP&F Chart SGY Stone Energy Corp. (SGY) 16.45 -0.35 -2.08% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart VNDA Vanda Pharmaceuticals Inc. (VNDA) 12.33 -0.26 -2.07% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart BCS Barclays Plc (BCS) 24.12 -0.45 -1.83% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart SMP Standard Motor Prod, Inc. (SMP) 13.81 -0.25 -1.78% 2009-9-21, 11:52ET
Default SharpChartGallery PageP&F Chart SEH Spartech Corp. (SEH) 11.86 -0.20 -1.66% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart HGSI Human Genome Sciences, Inc. (HGSI) 19.77 -0.33 -1.64% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart TCK Teck Resources Ltd. (TCK) 26.82 -0.28 -1.03% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart SOA Solutia Inc. (SOA) 13.32 -0.12 -0.89% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart GGC Georgia Gulf Corp. (GGC) 30.26 -0.24 -0.79% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart SAH Sonic Automotive, Inc. (SAH) 10.29 -0.08 -0.77% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart AGO Assured Guaranty Ltd. (AGO) 19.60 -0.15 -0.76% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart FITB Fifth Third Bancorp (FITB) 10.18 -0.06 -0.59% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart OMX OfficeMax Inc. (OMX) 13.55 -0.07 -0.51% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart LVS Las Vegas Sands Corp. (LVS) 18.77 -0.09 -0.48% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart GNW Genworth Financial Inc. (GNW) 12.99 -0.05 -0.38% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart DNDN Dendreon Corp. (DNDN) 29.11 -0.09 -0.31% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart VCI Valassis Comm, Inc. (VCI) 17.53 +0.03 +0.17% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart UTA Universal Travel Group (UTA) 13.63 +0.03 +0.22% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart CAR Avis Budget Group, Inc. (CAR) 13.70 +0.09 +0.66% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart DTG Dollar Thrifty Auto Grp (DTG) 25.49 +0.23 +0.91% 2009-9-21, 11:52ET
Default SharpChartGallery PageP&F Chart RINO RINO International Corp. (RINO) 13.67 +0.14 +1.03% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart ASH Ashland, Inc. (ASH) 44.58 +0.93 +2.13% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart ATPG ATP Oil & Gas Corp. (ATPG) 20.58 +0.53 +2.64% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart JNY Jones Apparel Group, Inc. (JNY) 18.55 +0.51 +2.83% 2009-9-21, 11:55ET
Default SharpChartGallery PageP&F Chart ABG Asbury Automotive Group Inc. (ABG) 13.60 +0.39 +2.95% 2009-9-21, 11:53ET
Default SharpChartGallery PageP&F Chart SMRT Stein Mart, Inc. (SMRT) 13.64 +0.51 +3.88% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart FUQI Fuqi International Inc. (FUQI) 29.55 +1.21 +4.27% 2009-9-21, 11:54ET
Default SharpChartGallery PageP&F Chart TRGT Targacept Inc. (TRGT) 18.73 +0.85 +4.75% 2009-9-21, 11:55ET

Bounce on LEI report, less than expected but 5th mth of increase

1% gap down open...little cold water in the face this Monday AM