Goldman Sachs International Advisor now Italian Job : Mario Monti

            
Mario Monti the Economist on the Italian No 1 Job may find lot Pain in the Political Ring Of Fire. With the Baggage of Economic Theories and Corporate advisory to Real Time War are different Loops.?
I wish a lot of Luck but the thankless Job of Cleaning the financial Slur seems to be onerous task in Hand

Goldman Sach report

FED Act on Golaman Sachs : FED press

For immediate release

The Federal Reserve Board on Thursday announced a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA to address a pattern of misconduct and negligence relating to deficient practices in residential mortgage loan servicing and foreclosure processing involving its former subsidiary, Litton Loan Servicing LP.
Goldman Sachs sold Litton to Ocwen Financial Corporation on September 1, 2011 and has ceased to conduct residential mortgage servicing. Litton is the 23rd largest mortgage servicer in the United States.
The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010. The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011.
If Goldman Sachs re-enters the mortgage servicing business while the action is in effect, it will be required to implement enhanced corporate governance, risk-management, compliance, borrower communication, servicing and foreclosure practices comparable to what the 14 mortgage servicers are implementing.
As noted in the April press release, the Federal Reserve believes monetary sanctions are appropriate and plans to announce monetary penalties. These monetary penalties against Goldman Sachs will be in addition to the corrective actions that Goldman Sachs will be taking pursuant to today's action. Goldman Sachs has acknowledged in today's action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct.

Enforcement Action on Goldman

The Federal Reserve Board on Thursday announced a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA to address a pattern of misconduct and negligence relating to deficient practices in residential mortgage loan servicing and foreclosure processing involving its former subsidiary, Litton Loan Servicing LP.
Goldman Sachs sold Litton to Ocwen Financial Corporation on September 1, 2011 and has ceased to conduct residential mortgage servicing. Litton is the 23rd largest mortgage servicer in the United States.
The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010. The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011.
If Goldman Sachs re-enters the mortgage servicing business while the action is in effect, it will be required to implement enhanced corporate governance, risk-management, compliance, borrower communication, servicing and foreclosure practices comparable to what the 14 mortgage servicers are implementing.
As noted in the April press release, the Federal Reserve believes monetary sanctions are appropriate and plans to announce monetary penalties. These monetary penalties against Goldman Sachs will be in addition to the corrective actions that Goldman Sachs will be taking pursuant to today's action. Goldman Sachs has acknowledged in today's action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct.

US GDP in Danger Zone..?

The first revision to Q1 GDP printed at 1.0%, down from the preliminary Q2 GDP print of 1.3%, and as expected was worse than Wall Street consensus of -1.1%, although it was certainly not as bad as the miss to the preliminary number. Stone McCarthy's forecast of 0.7% is not necessarily wrong: it is probably just early: the final revision to Q2 GDP will come on September 29, one week after the next FOMC meeting, and will be the last sub 1% GDP growth number before we see a negative GDP print for Q3. Personal Consumption printed a little better than expected at 0.4%, higher than consensus of 0.2%. Alas, this number will be whacked massively in Q3. Core PCE was also slightly higher than expectations of 2.1%, coming at 2.2%. The components of the 1.0% revised GDP were: PCE: 0.3%; Fixed Investment: 1.01%, Change in Private Inventories: -0.23%; Exports: 0.41%; Imports -0.31%; and Government consumption -0.18%. This is the third consecutive quarter in which the government has taken away from growth





And here is Goldman's breakdown:

1. Q2 real GDP growth was revised down to 1.0% (quarter-over-quarter, annualized) in the second estimate, down from 1.3% in the advance report. The revision reflected a reduction in the contribution from inventories to -0.2 percentage points (pp) from +0.2pp previously. Final sales growth-GDP excluding the effects of inventories-was revised up to 1.2% from 1.1% in the advance report. Changes in the components were in line with our expectations. Consumer spending and business fixed investment were revised up, but net exports were revised down. Other components were close to unchanged.

Bernanke's Put, European PMI/Debts, Anna Hazare

Goldman Sachs has down graded the Growth prospect for US in Q3 and Q4. The head line news shall rumble as week is entered.

 Anna Hazare's Agitation now elapses a week. The Gritty man and his millions of agitators shall be entering into a crucial phase. The Indian government has barricaded itself with ' Standing Committee' and the Equity markets have been silent watcher or has yet react. It is expected that, Congress who has no political leadership, will find the situation intolerable. The deterioration of Anna's health or that of any other activist, may cause ' Ripples' and cause Infectious consequences. The Parliament is likely to Buzz, the mammoth human rally, across the Length and Breadth of the nation. The Government seems to have ignoring the issue and the costs may rise. The Uncertainty may chase the market and business sentiment. 

Recession Crusader 

Bernanke's Put and Jackson Hole : In the FOMC minutes, FED had immensely elaborated the its options and Mr Bernanke exercised, ' PUT '. The occasion shall be an ideal place to respond the 3 Wise man, who voted against the decision, in last Meet. 2) Mr. Bernanke is likely to Explain the Utility of the ' Declaration of Mid 2013' and may be explicit about the Intentions, of accommodative Policies. 

French- German finance Ministers, shall be meeting on the Tuesday to further shape up the Merkel-Sarkozy accord and its efficacy. European Bank and Its Stake holders appear to have been loosing ' patience' and insecure.


The Flash P.M.I. Survey's may add some ' Glucose' in the early part of the week, on Tuesday

US Data : Economic reports in the coming week include new-home sales Monday, durable goods Wednesday, and weekly jobless claims Thursday. A second reading on second quarter GDP is released Friday, as is consumer sentiment for August.


The end of month data may mixed and markets are likely to reach in oversold zone. 


Its anticipated that, the early part of the week shall remain Weak and Week end GDP nos shall be  a threat. 
Expecting a ' Squeeze Rally ' in between as relief rally.  


My Note : I remain preoccupied with world moving around and making me restless and uneasy. My animal sense is smelling a ' tragedy' in India. 

US Housing Data gets Worst, BofA starts demolitons

Bank Of America Bulldozes And Gives Away Homes To Cut The Glut

Read more: http://www.businessinsider.com/bank-of-america-gives-away-bulldozes-homes-2011-7#ixzz1TagBtPwV

BofA, Goldman Sachs Find State Mortgage Cases Hard to Shake.

http://www.businessweek.com/news/2011-07-29/bofa-goldman-sachs-find-state-mortgage-cases-hard-to-shake.html.

The US Banks have still drawning Under the Sub Prime Mortgage Crisis and are getting desperate to shake the ailment. BofA, has started removing the houses by bulldozer, and saving the cost of maintainable expenses. The indicators are much similar to as given in ' Rich Dad, Poor Dad'.

However, Never thought I shall witness them.

                                       The Analysis of New Home sales in US 

The warmer weather of spring and early summer has yet to bolster new home purchases, as sales of new single-family homes were down again in June 2011. Sales dipped another 1.0% in June to a seasonally adjusted annual rate (SAAR) of 312,000 homes, according to a July 26, 2011, report published by the U.S. Census Bureau.

Not all of the country suffered, however. The Northeast and West saw declines in sales of 15.8% and 12.7%, respectively, while sales were up 3.4% and 9.5% in the South and Midwest, respectively. But despite the pockets of improvement, the overall drop in June brings annualized home sales closer to record lows after declining 0.6% in May. Sales peaked at 1,389,000 homes in July 2005 and declined 77.5% through June 2011.

Meanwhile, the inventory of new homes for sale (164,000 units) in June declined to the lowest level since 1963. When new home sales are slow and inventory is depressed, it creates less competition and price strain on existing homes. However, an imbalance exists between supply and demand in the housing market; the lack of demand and high supply of existing homes (including shadow inventory) continue to hurt both the new and existing housing markets. This week's weak new home sales and last week's disappointing existing home sales data highlight the continued weakness in the overall U.S. housing sector.

The median price of new houses sold in June was $235,200, while the median price of existing homes sold during the same month was $184,300. As a result, median prices on new homes were 28% higher than prices on existing homes in June, which is higher premium than the historical level of roughly 15%. Therefore, when making a choice based on price, buyers are likely to prefer existing or even distressed homes over new ones. We expect this high premium to continue to sway consumer demand to existing homes and somewhat damper new home sales. We see this as a positive for existing home sales and prices to an extent. Overall, however, we believe it will take years for the new home market to regain a strong footing.

The home sales activities provide insights on the direction and movement of U.S. home prices as key economic trends. In general, new home sales data tend to lead existing home sales. This is because new home sales are counted in the report when the buyer signs the initial home sales contract (similar to the pending sale of existing homes) versus existing home sales, which are counted when buyers complete the purchase. Despite a modest decline in new home sales this month, we believe low levels of new home sales and a record low new home inventory may somewhat aid in the slow recovery of the existing housing market.

5th of S&P 500 Reports and Housing Data, Debt Crisis wait Next Week

The European Banking Drama and Italian/ Spanish Banks, (De) stressed Test will Continue to Haunt the Market, as Last Weeks Legacy. The Hectic activity at White House and failed Summit, may drive the Monday.
The Bond Market may usurp the Yields, as a Feat Gauge. While, US Markets closed with VIX above 20%.
The Monday's Earning reports are IBM, Mosiac, Haliburton, Chales Schwab.

Tuesday,  A Banking Day :  The course will begin the with Australian Bank Rate decision. Indian market would have HDFC Bank and Crompton Greaves, Chambal fertilizer results. Soon, ZEW survey will take the Shot at German Economic Sentiment and other consumer surveys. The US markets shall open with Building Permits and Housing Starts. But, the Bank of America, Goldman Sachs, Wells Fargo, Coca Cola and Novartis  all will bring the markets live. While, Apple, Blackrock, Yahoo will  post Closing Bell. While, Crude oil is expected to play the rear. The Dodd-Frank Regulation will catch the talks.

Wednesday : The China will fire its Economic Leading Indicators, to Kick start the Trade. The Chinese Banks are expected to take it slow on Rates and reserves, for a while. In India, Dr Reddy's will bring out results. The Minutes of Bank of England should a passing event. The Existing Home Sales are expected to be show More Ghost Inventories live and MBA Purchase applications being sideways. The banking agenda continues with Bank of Canada declaring Rate decision. CAD $/ USD movement will be the trade.
 The EIA Petroleum Inventories may impress the Fresh series for the Crude/ its Derivatives. FED will have its bytes. AMR, BlackRock, EMC and Abbott will spread the result card. Intel, eBay, American Express add on Bell.

Thursday :  The Japanese Merchandise data and Import/Export to Opens the Yen/$. The Indian Markets digets the results from Hero Honda, Hind.Zinc, Sesa Goa, Kotak-Mah. Bank. The Inflation figures will set the back drop for the forthcoming RBI meet. The European summit on Greece will rumble at Brussels.
The Flash PMI's of Germany, France and Major Euro area will echo the activity. The US FHFA Housing Index, Jobless claims and LEI may push the DEBT talk in Full Focus. AT&T, Morgan Stanley, Pepsico, and the Market will close the bell with Microsoft, along with Roche, AMD.

Friday :  The China PMI is trade opener. Indian market have Axis Bank, Canara and Allahabad Bank results.
The Candian CPI carries to the US Trade, Where, Caterpillar, GE, Verizon, Honeywell may reflect what is passed on the Consumers and what is absorbed.

All the impasse will not over shadow the US Debt reaching the Crisis Point