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May 14, 2010

FDIC : Bank Closing - Midwest Bank and Trust Company, Elmwood Park, IL


On Friday, May 14, 2010, Midwest Bank and Trust Company (CERT #18117), Elmwood Park, IL was closed by the Illinois Department of Financial Professional Regulation - Division of Banking. All deposits, excluding certain brokered deposits, were transferred to the acquiring institution. For further information, please visit the FDIC web site: Midwest Bank and Trust Company (www.fdic.gov).

REUTERS BUSINESS : The Cost of Fear. May 14th, 2010

NASDAQ: Top Stories / Market News and Analysis. May 14th, 2010

NASDAQ

        TOP BUSINESS STORIES

Market Watch: Industry Financial Services.- Midwest Bank, others failures bring '10 tally to 72. / Goldman to look at suitability of complex productsMay 14th, 2010


MarketWatch
  (INDUSTRY: FINANCIAL SERVICES)
Midwest Bank, other failures bring '10 tally to 72 By John Letzing MarketWatch
5/14/2010 7:39:00 PM


The closure on Friday of Midwest Bank and Trust Co., which had over $5 billion in deposits and assets, helped bring the number of U.S. bank failures for the year to 72. See full story

Goldman to look at suitability of complex products

By Alistair Barr MarketWatch
5/14/2010 7:07:00 PM


Goldman Sachs Group Inc. unveiled details late Friday of a new Business Standards Committee that the firm has set up to bolster the investment bank's client focus and increase the transparency of its activities. See full story




MarketWatch : Weekly Roundup.-MarketWatch's top stories of the week, May 10 - 14

MarketWatch
Weekly Roundup
MAY 14, 2010

MarketWatch's top stories of the week, May 10 - 14

By Christopher Noble, MarketWatch



SAN FRANCISCO - The U.S stock market recorded healthy gains this week, even though they finished in the red on Friday. The gains were mostly attributable to the announcement on Sunday of a major rescue package for euro zone countries under pressure from international markets.

The Dow Jones Industrial Average (.DJI) fell 162.79 points or 1.5% to close at 10,620.16 on Friday but still managed a 2.3% gain for the week. The Nasdaq Composite Index (.COMP) dropped 47.51 points or 2% to close at 2,346.85 on Friday. For the week, the index rose 3.6%. The benchmark Standard & Poor's 500 Index (.SPX) ended the day down 21.76 points or 1.9% to close at 1,135.68 on the day while notching a 2.2% gain for the week.

Please stay tuned to MarketWatch all weekend for the news you need. Our Weekend Investor story will help you protect your retirement from inflation and our weekend features will include a look at how the sovereign debt crisis may play out.

Also, please take a few moments to view our weekly preview videos.

 U.S. Week Ahead: Earnings and Bank Reform

 Europe's Week Ahead: Airlines In Focus

 Asia's Week Ahead: Central Banks In Focus

-- Christopher Noble , assistant managing editor.

Here today, here tomorrow

The financial crisis never really went away. The debt mountain that threatened the global financial system and brought down some of the world's leading banks and insurers has simply been transferred to national balance sheets. The impact on markets has been severe, but is worse yet to come? Read MarketWatch's story on a looming sovereign debt crisis.

Experts don't know it all

The experts are ruining the world. The technocrats that society has empowered to run the machines, institutions and systems of our modern world have failed to protect us. And they admit that they don't even understand why they failed. Read a commentary about how experts are hurting us.

Facebook faces a storm of its own making

Facebook is caught up in a storm of its own making. Ever since the popular social networking website unveiled so-called social plug ins that share user "like" information with other sites, it's been in the crosshairs of privacy experts - again. Read a column about Facebook's latest self-inflicted wound.

Financial reform on the way

Even with dozens of amendments and measures still to be voted on, the light at the end of the tunnel of financial reform is finally visible. The senate is expecting to have the bill passed by Wednesday. After that it's over to the House of Representatives and reconciliation. Read a story about the financial reform bill's prospects.

Cisco surge

Cisco Systems (CSCO) reported a big jump in quarterly profit because customers bought more of its Internet equipment. The company also said it saw signs the economic recovery was building up a head of steam. Read a story about Cisco's earnings.

Cash is king

Tech companies including Apple (AAPL), Microsoft (MSFT) and Cisco all have very different businesses, but one thing they have in common is their huge cash piles. Speculation about how they might spend that money has investors looking closely at the companies. Read a story on tech companies' cash piles.

Low appraisal blues

A low appraisal can kill a home sale. "It's one of the more common reasons that transactions fall apart these days," said Tara-Nicholle Nelson, consumer educator for Trulia.com, a real-estate website, and a real-estate broker and attorney in the San Francisco area. Read a story about what you can do to fight back.

Secrets to help you manage your credit

A happy consequence of the recession is that Americans are widely expected to be better consumers. That means we'll only take on loans that we can afford, pay off credit-card debt at the end of each month and put money away. Or does it? Read Jennifer Water's Consumer Confidential report.

Bonds helped, but what about the euro?

It may be too soon to fully judge the impact of a nearly $1 trillion aid package designed to help the euro zone withstand debt problems and market speculation. While the package did help stop a drop in government bonds, the euro itself seems to have barely benefited. Read an analysis of the impact of the euro zone aid package.

Adidas readies Reebok

Adidas may be about to reap more than a billion euros from sales tied to the World Cup, but that's not what gets the company's CEO excited. Instead it's the turnaround at Reebok, which Adidas purchased four years ago. Read a story about the turnaround at Reebok.

FOX BUSINESS: What's Hot. May 14th,2010


european central bank euro sculpture 276
Eurozone in the CrosshairsWith EU member Greece teetering on the edge of insolvency and concerns about the euro's viability, could the world soon see a divided Europe?
THE MOST POWERFUL NAME IN BUSINESS NEWS

Retail Sales Just One Piece of the Pie

The true strength of April's retail sales report will be seen with the release of two other economic reports.

ShoreBank on the Brink of Failure

Wall Street firms looking to bail out the troubled community lender have yet to come up with the funding they need to avoid an FDIC takeover.

Intel CEO: Future Is 'Very Bright'

EXCLUSIVE Intel CEO Paul Otellini discusses the company's International Science & Engineering Fair and the importance of investing in education.

THE WALL STREET JOURNAL: Holding Brokers To a Higher Standard. May 14th, 2010

THE WALL STREET JOURNAL

Holding Brokers To a Higher Standard 

As Congress enters the final rounds of mud-wrestling over financial reform, small investors might end up splattered and trampled yet again.
At issue is whether a financial adviser—which nowadays means anybody from a stockbroker or insurance agent to a financial planner or "wealth manager"—should be held to higher standards of conduct.
Many brokers and insurance agents are obligated only to have reasonable grounds for believing that any investment they recommend is "suitable" for you. They need not inform you of conflicts of interest that might bias their judgment; you might never find out, say, that they sold you a particular fund primarily because it paid them a fatter commission than others would have.
Other financial pros, however, bear a "fiduciary duty," meaning that they must put their clients' interests ahead of their own and disclose potential conflicts. After the rolling calamities of the past decade, wouldn't this be an improvement over business as usual?
A measure in the Senate's earlier reform bill would have imposed a fiduciary duty on all financial advisers. It has been superseded by one that would merely study whether the current standards are adequate. An amendment introduced last week would exempt many insurance agents, and brokers selling their firms' own products, from being fiduciaries.
According to a recent investigation by The Wall Street Journal, Congress may not be in a very good position to tell the difference between suitable and unsuitable financial advice.
Some members of Congress permit brokers to trade their accounts hundreds of times a year; others trade too much themselves. The accounts of 38 members of Congress or their spouses showed at least 100 trades apiece in 2008, according to public records; 15 had more than 300 trades each.
Such activity is just what long-term investors try to avoid. Regulations have long sought to protect small investors from "churning," or excessive trading.
In a recent interview with the Journal's Brody Mullins, Sen. Tom Coburn (R., Okla.) said that most of his money is managed by a professional adviser. The senator explained that his portfolio is heavy on oil and natural-gas stocks because energy is big business in his home state of Oklahoma.
Sen. Coburn added that he has his own account at TDAmeritrade, valued at about $70,000. He said he trades actively based on tips he gleans from Jim Cramer's "Mad Money" show on CNBC.
In 2008, Sen. Coburn traded Transocean four times in less than a month on Mr. Cramer's advice. "I lost my shirt," the senator said. He fared better with Tyson Foods, which he bought on Nov. 20, 2008, and sold less than three weeks later. "I bought it and got out because it went up," Sen. Coburn said. He added that he regretted selling Tyson so quickly, because its price kept rising after he sold.
While it's far from clear that Congress has the courage and knowledge needed for reform, it's quite clear what shape the reform should take.
Arthur Laby, a professor at Rutgers School of Law-Camden and a former assistant general counsel at the Securities and Exchange Commission, points out that securities salepeople are usually exempted from a fiduciary duty if their advice is "solely incidental" to their brokerage services and if they receive "no special compensation" for providing advice.
But that exemption, says Mr. Laby, is "an antiquated concept embedded in an antiquated statute." When the law was enacted, in 1940, many brokers acted as custodians for cash or securities, and trading was much more cumbersome than it is now. "Today, advice is the main dish," points out Mr. Laby, "and it's brokerage that's become 'solely incidental' to advice." Therefore, he says, anyone providing individualized investment advice should bear a fiduciary duty toward his clients—putting their interests first and disclosing any conflicts of interest.
Going one step further, Mr. Laby suggests that Congress could require investment banks to bear a fiduciary duty toward anyone who buys the stocks or bonds they underwrite. Instead of having a primary duty toward the issuers of the securities, Wall Street would first have to do right by the purchasers.
While that might not completely prevent underwriters from generating the kind of toxic waste that poisoned investors over the past decade, it might well cut back on the volume of sewage. It's a reform well worth considering.
—intelligentinvestor@wsj.com Write to Jason Zweig at intelligentinvestor@wsj.com

Bloomberg Breaking News. May 14th, 2010


NYT: Afternoon Business Update


Afternoon Business Update

DealBook

Waddell Cited as Mystery Trader in Market Plunge

By DEALBOOK
A mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high-frequency trader, but the money manager Waddell & Reed Financial.

U.S. Retail Sales in April Beat Expectations

By CHRISTINE HAUSER
Sales rose for the seventh consecutive month, lifted by building materials. But sales in some consumer categories fell.
Media Decoder Blog

NBC Cancels 'Law & Order'

By BRIAN STELTER and BILL CARTER
NBC confirmed Friday that it had canceled "Law & Order," shutting down one of the largest television productions in New York.
Bits Blog

Google Admits Defeat in Selling Nexus One Direct

By BRAD STONE and MIGUEL HELFT
Google admits defeat in its attempt to change wireless industry dynamics with the Nexus One phone.
Off the Charts

Trade, Surging in Some Countries, Barely Creeps Up in Others

By FLOYD NORRIS
World trade, which contracted sharply in the credit squeeze a year ago, is coming back, but not evenly across the globe.

RTTNews: Envening Market Wrap.-Stocks Sink As European Debt Crisis Remains Chief Concern - U.S. Commentary . May 14th, 2010

Evening Market Wrap Fri May 14 17:06 2010 

Commentary

May 14, 2010 Stocks Sink As European Debt Crisis Remains Chief Concern - U.S. Commentary Stocks saw sharp losses for a second straight session on Friday, as concerns regarding the impact of the European debt crisis overshadowed continued improvement on the U.S. economic front. The major averages all finished firmly in negative territory but still higher on the week. Full Article

Economic News

May 14, 2010 Retail Sales Show Relatively Modest Growth In AprilWith sales of building materials and garden equipment showing a substantial increase in the month of April, the Commerce Department released a report Friday morning showing a relatively modest increase in retail sales for the month. The report showed that retail sales edged up by 0.4 percent in April following an upwardly revised 2.1 percent increase in March. Full Article
May 14, 2010 Industrial Production Increases In Line With Estimates In AprilIndustrial production showed a notable increase in the month of April, according to a report released by the Federal Reserve on Friday, although the increase in production was partly offset by a continued decrease in output from utilities. The Fed said that industrial production increased by 0.8 percent in April following an upwardly revised 0.2 percent increase in March. Full Article

Corporate News

May 14, 2010 JC Penney Q1 Profit More Than Doubles; Raises FY10 EPS ViewDepartment store chain J. C. Penney Co. Inc. (JCP) Friday reported a more than two-fold rise in first-quarter profit, driven mainly by margin improvement. Adjusted earnings per share exceeded analysts' forecast. Boosted by the first-quarter results, the company lifted its earnings per share guidance for fiscal 2010, but below the Street's view. Full Article
May 14, 2010 Intersil Lowers Q2 EPS Forecast To Reflect Techwell BuyIntersil Corp. (ISIL), a manufacturer of analog and mixed signal semiconductors, Friday lowered its earnings outlook for the second quarter, while raising the guidance for quarterly revenues, to reflect the recent acquisition of Techwell, Inc. The stock is trading down over 3%. Full Article
May 14, 2010 International Tower Hill Mines To Spin Off AssetsResource exploration company International Tower Hill Mines Ltd. (THM, ITH.TO) said Friday that its board has approved its proposal to undertake a spin-out transaction to seggregate its assets into two separate independent entities. As per the deal, ITH would retain the assets relating to the advanced stage Livengood gold project in Alaska, while it will form Corvus Gold Inc. to hold the non-Livengood assets. Full Article
May 14, 2010 Kingsway Financial Swings To Profit In Q1Canadian Property and casualty insurer Kingsway Financial Services Inc. (KFS, KFS.TO) reported Friday a profit in its first quarter, compared to a loss last year, helped by gain from the sale of Jevco Insurance Co. On a continuing operations basis, quarterly loss widened from the prior year, mainly due to higher underwriting losses and sharp decline in revenues. Full Article
May 14, 2010 Ladbrokes Says Year-to-date Profitability Broadly In Line With Its ExpectationsOnline betting and gaming company Ladbrokes Plc (LAD.L), Friday, in an interim management statement for the four months ended April 30, 2010 said that year-to-date Group profitability is broadly in line with its expectations. The company's net revenue, excluding High Rollers, declined 6% from last year. Full Article
May 14, 2010 Wolseley Q3 Trading Profit More Than Doubles; Gives FY10 ViewWolseley Plc (WOS.L), a distributor of plumbing and heating products and building materials, Friday reported more-than two fold rise in trading profit for the third quarter despite lower revenues, driven by improved cost base. The company also expects fiscal 2010 trading profit to come in above analysts' current consensus estimate. Full Article
May 14, 2010 Intertek 4-month Reported Revenues Broadly In Line With Last YearQuality testing firm Intertek Group plc (ITRK.L) Friday said organic revenue for the first four months of the year rose from the year-ago period on a currency neutral basis, but reported revenues were broadly in line with last year. The company continues to expect to grow organic revenue at similar levels to 2009, with improvement in business in the second half of the year. Full Article

Forex Top Story

May 14, 2010 Dollar Surges To Highest Since 2008 Versus Reeling Euro The dollar pounded the euro and sterling yet again Friday, ending another wild week at its highest level in more than a year versus a basket of key majors. Equities have sold off at an alarming pace, most commodity prices have plunged, and the dollar has risen to an 18-month peak against the euro amid growing speculation that Europe's debt bailout will fail to prevent restructuring down the road. Full Article

Political News

May 14, 2010 NFIB Joins Lawsuit Challenging Constitutionality Of Health Care BillThe National Federation of Independent Business, the nation's largest association for small business, announced Friday that it is joining in the 20-state lawsuit against the recently-passed health care bill. "Today the NFIB joined the 20 states in this historic lawsuit challenging the constitutionality of the Patient Protection and Affordable Care Act," said NFIB President and CEO Dan Danner. Full Article
May 14, 2010 Obama Scolds Oil Companies For Seeking To Shift Blame For Gulf SpillPresident Barack Obama Friday said he is both angry and frustrated at the continuing spill of oil into the Gulf of Mexico following the explosion of an oil rig on April 20th. Obama, who appeared visibly angry when speaking to reporters in the Rose Garden, said that he would not be satisfied until the leak is stopped and the resulting oil spill is cleaned up. Full Article
May 14, 2010 Kagan Receives Key Support From Moderate RepublicansSupreme Court nominee Elena Kagan received support from two moderate Senate Republicans Thursday, moving her confirmation in the Senate one step closer to becoming a reality. Senator Scott Brown, R-Mass., met with Kagan Thursday and stated that he walked away from the meeting satisfied with her support for the military. Full Article
May 14, 2010 Biden Says Democratic Party Backs Specter In Pennsylvania Senate RaceIn an interview with Pittsburgh radio station KDKA Friday, Vice President Joe Biden said that the Democratic Party backs Senator Arlen Specter, D-Penn., in Pennsylvania's U.S. Senate race. "Arlen is the Democratic candidate," Biden said in the interview. Full Article
May 14, 2010 Sessions Expresses Concern About Ratifying New START TreatySenator Jeff Sessions, R-Ala., expressed concern Friday regarding the ratification of the New START Treaty, an historic arms control agreement between the U.S. and Russia. "I do not believe that the Senate must ratify this treaty, as some of my colleagues suggest," Sessions stated. Full Article

DAI: Exclusive: Waddell is mystery trader in market plunge. may 14th, 2010




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Good evening Fernando, FRI 14 May 2010 
Exclusive: Waddell is mystery trader in market plunge
Stocks slide on euro zone woes, earnings
Retail sales, industrial output rise firmly
Ex-Sun CEO takes high road after Ellison attack
Caterpillar CEO: Once shunned, now celebrated
Microsoft CFO sees tech mergers on rise
Goldman joins effort to rescue Chicago bank
Deutsche Bank CEO doubts Greece can repay debt: report
Macy's says Bloomingdale's and exclusives to lead sales
Markets sense another "window" for yuan reform


Exclusive: Waddell is mystery trader in market plunge
May 14, 2010 02:29 PM ET
NEW YORK (Reuters) - A big mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high frequency trader as many have suspected, but money manager Waddell & Reed Financial Inc, according to a document obtained by Reuters.

Full Article
Stocks slide on euro zone woes, earnings
May 14, 2010 04:27 PM ET
NEW YORK (Reuters) - Stocks fell on Friday on a combination of retailers' weak earnings, Senate backing for limits on credit card fees and concerns over whether European countries can pay their public debt obligations.

Full Article
Retail sales, industrial output rise firmly
May 14, 2010 03:26 PM ET
WASHINGTON (Reuters) - Retail sales rose and industrial production powered ahead in April, further evidence the economic recovery was strengthening and broadening out.

Full Article
Ex-Sun CEO takes high road after Ellison attack
May 14, 2010 04:28 PM ET
NEW YORK (Reuters) - Former Sun Microsystems Chief Executive Jonathan Schwartz is taking the high road after getting a public tongue lashing from Silicon Valley's richest man, Larry Ellison.

Full Article
Caterpillar CEO: Once shunned, now celebrated
May 14, 2010 03:04 PM ET
CHICAGO (Reuters) - When Jim Owens, the CEO of Caterpillar Inc , retires next month, it will mark the end of a long career bookended by corporate crises and displays of a tough-love approach to leadership and the company's workforce.

Full Article
Microsoft CFO sees tech mergers on rise
May 14, 2010 03:04 PM ET
NEW YORK (Reuters) - More technology deals are on the way as the industry recovers from the recession, but Microsoft Corp is not poised to make a big deal soon, its chief financial officer told Reuters on Friday.

Full Article
Goldman joins effort to rescue Chicago bank
May 14, 2010 12:34 PM ET
WASHINGTON/NEW YORK (Reuters) - Goldman Sachs Group Inc Chief Executive Lloyd Blankfein and a consortium of other top banks are part of an effort to save ShoreBank Corp, a Chicago bank with Washington ties, a Democratic activist close to the institution said on Friday.

Full Article
Deutsche Bank CEO doubts Greece can repay debt: report
May 14, 2010 07:42 AM ET
FRANKFURT (Reuters) - Deutsche Bank Chief Executive Josef Ackermann cast doubt on Greece's ability to repay its debt in a TV interview and said a $1 trillion euro zone rescue package will help stabilize Italy and Spain, while the situation in Portugal is more difficult.

Full Article
Macy's says Bloomingdale's and exclusives to lead sales
May 14, 2010 12:04 PM ET
NEW YORK (Reuters) - Macy's Inc Chief Executive Officer Terry Lundgren told shareholders that rebounding sales at the retailer's upscale Bloomingdale's chain and a focus on private brands and exclusives had spurred results of late and would continue to do so.

Full Article
Markets sense another "window" for yuan reform
May 14, 2010 09:25 AM ET
BEIJING (Reuters) - Beijing could have another window of opportunity over the next few days to make its long-awaited move on the yuan, in the wake of strong Chinese data and ahead of a Sino-U.S. summit.

Full Article
REUTERSwww.reuters.com