MORNING BRIEFS

*so why is GE stock worth more than $5? Because the federal government has decided to give them my money. Then why don't I have GE stock? If those Alaskans get oil royalties, then I should get stock certificates of all of these bailout banks and companies each month until they pay back every dime, including preferreds and warrants.

GE the biggest beneficiary of U.S. bank bailout
U.S. taxpayers have poured more bank-rescue money into General Electric, the biggest industrial company in the world, than any other recipient. The company has received the benefits without coming under regulatory restraints that govern other major players in the financial sector. Unlike Bank of America, Citigroup and JPMorgan Chase, GE is not subject to the Federal Reserve's rules limiting risk taking and has not been required to undergo the central bank's stress tests. The Washington Post/ProPublica (29 Jun.)

*do you think the higher interest rates have anything to do with it? hummmmmmm

U.S. housing industry remains stalled despite efforts
U.S. President Barack Obama vowed to bolster home sales, but the turnaround has been impeded by factors including banks' reluctance to lend to borrowers who will not live in the homes. Mortgage lending also has decreased because of increasing costs of residential loans and stricter qualifying rules. The tax credit for first-time home buyers has done little to help, said Eric Belsky of Harvard University's Joint Center for Housing Studies. "It hasn't been much more than a seesawing of data," Belsky said. "Housing has led the U.S. economy out of every recession for at least 50 years, and for that to happen again, more stimulus is going to be needed." Bloomberg (29 Jun.)

*no government in my back yard, unless I need some BIG money!

Wall Street bristles over regulation but not bailouts
Wall Street has nobody but itself to blame for the demand for regulation, columnist Allan Sloan writes. Left to itself, Wall Street fueled the speculative bubble that brought the world's financial system to the brink of destruction. When taxpayers' money was pouring into the U.S. financial sector, nobody was complaining about socialism, Sloan writes. CNNMoney.com/Fortune (29 Jun.)

*but since mark to market accounting rules have been suspended indefinately, 2Q earnings likely rigged sky high so TRADE with caution on the downside. Gangsters!

Derivatives exposure eases, but still substantial for big banks
Banks in the U.S. reduced their exposure to possible losses related to derivatives 10% in the first quarter, according to the Office of the Comptroller of the Currency. However, their exposure is expected to remain substantial, although it's difficult to assess as public data are not available. "Credit exposure is an important number to watch," Janet Tavakoli, a structured-finance consultant, wrote in a recent note, but "more disclosure is needed by all members of the banking system." CNNMoney.com/Fortune (6/26)