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  Friday, 12 Nov 2010 | 4:48 PM ET

Fed on Track to Spend the Whole $600 Billion

Posted By: Ash Bennington

General Motors IPO Oversubscribed—By a Six Fold (CNBC via Reuters) There is once again something to feel good about in Detroit: Investors submitted orders for $60 billion of GM common stock—although General Motors only filed with regulators to sell about $10 billion in equity. The article goes on to say: " The robust demand suggests that GM's IPO will likely price around the top end of the $26 to $29 per share range and that the full overallotment option—additional shares underwriters can sell to help stabilize the stock after it begins trading—will be exercised, the sources said." Is it too late to hope that the old adage "What's good for General Motors is good for the country" still holds true?

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  Friday, 12 Nov 2010 | 4:15 PM ET

Breaking Down Quantitative Easing, Part Dos

Posted By: Cadie Thompson

Finally, an explanation everyone can understand.

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  Friday, 12 Nov 2010 | 1:51 PM ET

"Re-Foreclosure" Hits Massachusetts

Posted By: Ash Bennington

Question: What's worse than having your house foreclosed upon?

Foreclosure
Fuse | Getty Images
Foreclosure

Answer: having your house foreclosed upon twice . Unless, of course, you get it back the second time.

Homeowners in Massachusetts are now facing "back-to-back foreclosures," due to problems with property titles. When lenders are unable to get title insurance for the property on which they have foreclosed, they are now opting to try the whole process again. In Massachusetts, where the issue has affected at least hundreds, and "possibly thousands," of homeowners, it has become common enough to merit its own name: "re-foreclosure."

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  Friday, 12 Nov 2010 | 1:16 PM ET

Is The Fed Dividend Warning Killing Wells Fargo And US Bank Today?

Posted By: John Carney

Two of the companies that were on just about everyone's list of banks most likely to hike their dividends are getting absolutely crushed Friday.

AP

US Bank and Wells Fargo both saw their stocks rise, after news came out late last week that the Federal Reserve was preparing guidelines that would permit healthy banks to raise dividends in the first quarter of 2011. Today, the situation has reversed, with shares of both banks dropping more sharply than most of their rivals.

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  Friday, 12 Nov 2010 | 12:50 PM ET

EU Tries To Stop The Emerald Island Meltdown

Posted By: Ash Bennington

The European Union may have managed to stanch the bleeding —for the moment—on Irish bonds.

Ireland and European Union
Phillipe Sion | The Image Bank | Getty Images
Ireland and European Union

Bondholders seem to have been placated by a joint statement from five of Europe's most economically powerful nations: Germany, France, Italy, the U.K., and Spain. The statement said that bonds issued before the middle of 2013 would not be affected by changes to the EU's bailout program.

Earlier this morning, reports had surfaced of the possibility of haircutting Irish bondholders, which sent the Irish debt markets skittering.

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  Friday, 12 Nov 2010 | 12:16 PM ET

TARP 'Most Successful US Program Ever': Bove

Posted By: Jeff Cox

The Troubled Asset Relief Program wasn’t really a bank bailout after all, but instead was the “most successful government financial program ever,” banking analyst Dick Bove said.

Deborah Harrison | Getty Images

In a research note, Bove noted that the controversial TARP saved the banking industry as well as the broader economy while generating a hefty return for taxpayers.

Former President George W. Bush signed the $700 billion program into law on Oct. 3, 2008 as banks suffered a liquidity crisis brought on by the collapse of the subprime mortgage market. TARP recapitalized banks across the board—even many that didn’t need the extra money.

Bove praised the program for restoring faith in the system even though it has received a largely negative public perception.

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  Friday, 12 Nov 2010 | 12:07 PM ET

Fed Governor Issues Warning on Bank Dividends and Mortgage Put-Backs

Posted By: John Carney

If you were counting on the big U.S. banks to restore or increase dividends that were pared back or ended during the financial crisis, you might want to think again.

Foreclosure Sign
Getty Images
Foreclosure Sign

The final portions of a prepared speech by a top Federal Reserve official seemed aimed at pulling-back market expectations that the central bank would soon authorize a resumption of dividends.

The Fed has been preparing guidelines on how banks will be able to change their dividend policies in the first quarter of next year. When that news was reported last week—the Wall Street Journal’s headline was “Fed to Let Banks Increase Dividend” — the stocks of several banks rose.

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  Friday, 12 Nov 2010 | 11:46 AM ET

Will The Rest of the World Please Shut Up About Our Monetary Policy?

Posted By: John Carney

The announcement that the Federal Reserve is embarking on a renewed quantitative easing policy has prompted scolding from China, Russia and Germany. Which is perhaps the first thing I’ve heard in quite a while that makes me want to support Ben Bernanke.

Getty Images

Look, I understand the criticism of further easing—even if I think moralistic language about “debasing the currency” and an “unsustainable” monetary policy, or talk of “hyperinflation ,” is usually evidence that the critics have doffed their economic analyst hats and started playing the role of grand inquisitors.

The most valid critique of quantitative easing is not that it will destroy the dollar. It’s that it probably will not work to improve the conditions of the domestic economy. We’re caught in a liquidity trap coupled with a post-boom economic reset. Releasing more dollars into the banking system will not spur more lending or economic growth as long as we’re still working out way out of the bad investments—which include financial positions keyed around mortgages, capital expenditures keyed around suburban sprawl, and worker skills built around the housing sector—from the boom.

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  Friday, 12 Nov 2010 | 11:16 AM ET

Chase Employee Says She Was Insulted for Complaining About Copy-Machine Sex

Posted By: Cadie Thompson

Apparently, having sex on the copy machine is just part of a normal day at Chase Manahattan's South Richmond Hill, Queens Branch.

A former JPMorgan Chase banker, Shivana Persad, who worked at the branch claims that her boss told her to mind her own business after she reported two co-workers having sex near a copy machine.

Persad, a Trinidadian banker, is suing JPMorgan Chase , claiming she was fired because of ethnic tensions. Persad said her Guyanese boss at the bank called Trinidadians "lazy" and "nickel-and-dime workers."

The Daily News reports :

Persad says she was insulted after she complained to a Guyanese manager after witnessing two co-workers having sex near a copy machine in March 2009.

"You Trinis need to mind your own business," she was told, according to court papers.

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  Friday, 12 Nov 2010 | 9:49 AM ET

Nicole Lapin's Short & Long List

Posted By: Nicole Lapin
Nicole Lapin
Nicole Lapin

Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.


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  • NetNet is where you'll find the low-down and the high jinks of Wall Street. It's the place for insider stories, trader gossip, and tales of the foibles of the moneyed crowd and the culture of finance.Wall Street news and commentary served fresh all day long.

 

  • Jeff Cox is finance editor for CNBC.com.

  • Lawrence Develingne

    Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.

  • Stephanie Landsman is one of the producers of "Fast Money."

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