Financial 411: Government Sues Deutsche Bank
Tuesday, May 03, 2011
Fuel-Efficient Cars Benefit from High Gas Prices
High gas prices are driving sales of small, fuel-efficient cars. General Motors and Ford posted double-digit growth for April, with profits driven in large part by smaller models that use less gas, like the Chevrolet Cruze and the Ford Focus. Nationwide, the average price for gasoline is now $3.96 a gallon, according to the Energy Department. Here in New York, it's $4.50.
The market euphoria after the news of Osama bin Laden's death appears to have faded already. Markets were mixed Tuesday.
The Dow was flat, closing at 12,808.
The S&P 500 fell five points, to close at 1,357.
The NASDAQ dropped 22 points, ending the day at 2,842.
Pelley to Replace Couric
CBS has announced that "60 Minutes" correspondent Scott Pelley will replace Katie Couric as the anchor of "CBS Evening News" next month. The program is currently ranked last among the big three network evening news shows.
That's according to Nielsen, the ratings company, which came out with a new report on Tuesday that isn't likely to boost ratings confidence. Nielsen estimates that next year, only 97 percent of American households will own TV sets, down from 99 percent.
Federal Government Sues Deutsche Bank for Millions in Damages
The U.S. government is suing Deutsche Bank and its mortgage subsidiary for what it calls "years of reckless lending practices."
The government accuses them of repeatedly lying so they could join a government program that insures mortgages, and then profiting from the resale of the risky mortgages, leaving the government to foot the bill.
"This lawsuit sends them and other lenders the message that they cannot get away with lies and recklessness, they cannot casually assign the prospect of being caught to the cost of doing business," said U.S. Attorney Preet Bharara.
The lawsuit seeks to recover hundreds of millions of dollars in insurance claims.
Guy Cecala, publisher of Inside Mortgage Finance, talks about this big step for the federal government. He also gives us an update on negotiations between regulators and attorneys general trying to settle with several of the larger banks over shoddy mortgage lending and foreclosure practices.