FINANCIAL SERVICES TOP STORIES 
 
KC, DALLAS FED WANTED TO RAISE DISCOUNT RATE 

The two regional Federal Reserve banks continued to call for an increase in the interest rate charged to banks on emergency loans, despite signs the U.S. economy's recovery was losing steam, according to minutes of an Aug. 9 policy meeting.

 
DIAMOND TO LEAD BARCLAYS IN SURPRISE SHAKE-UP 
 

Barclays elevates Robert E. Diamond Jr. to chief executive in an unexpected shake-up that installs an American at the helm of the British banking institution. Barclays shares dip 6% in early US trading.

 
TREASURY TO SELL WARRANTS IN HARTFORD, LINCOLN 
 

The U.S. Treasury intends to sell warrants in Hartford Financial Services and Lincoln National that it acquired under a program designed to bail out Wall Street. Hartford shares are down 4%, Lincoln dips 5%.

 
NY AG CUOMO PROBES CREDIT CARD, COLLEGE TIES 
 

New York Attorney General is investigating credit-card companies' marketing campaigns, and the colleges' role in them, regarding whether deceptive offers, fraudulent solicitations or illegal incentives were used or encouraged.

 
PREPARING FOR WEAK US GROWTH 
 

Friday's nonfarm payrolls release may have raised hopes about the extent of the economic recovery in the U.S., but the outlook still looks weak.

 
US CONFERENCE BOARD EMPLOYMENT INDEX DOWN 
 

The Conference Boars says its August employment trends index fell to 96.7, down from July's revised figure of 97.4, first reported as 97.0, suggesting a slowing in hiring in coming months.

 
OBAMA TO UNVEIL BIG TAX BREAK FOR CORPORATIONS 
 

U.S. President Barack Obama will propose that corporations be allowed to write off 100% of their new investment in plants and equipment through 2011, a plan White House economists say would cut business taxes by nearly $200 billion over the next two years.

 
MORGAN STANLEY CUTS 10Y NOTE YIELD VIEW AS BONDS RALLY 
 

Investment bank sees the 10-year Treasury note yielding 3% by the end of the year, slicing their month-ago projection of 3.5% by half a point. Ten-year Treasuries were trading at 2.648% early Tuesday.

 
WAMU PACT FINDINGS RELEASE SEEN NOV. 1 
 

Court-appointed investigator asks bankruptcy judge to give him until Nov. 1 to wrap up his probe of the proposed settlement of legal disputes arising out of the collapse of Washington Mutual Bank.

 
US BUSINESSES SHOW CAUTION IN HIRING PLANS 
 

Employers are hiring at a substantially higher rate than a year ago at this time, but after new hires climbed for three consecutive quarters, businesses are showing some hesitation at continuing that trend, as fourth-quarter numbers appear flat.

 
ADVISERS WHO DO WELL IN UP OR DOWN MARKET 
 

To help gauge the likelihood of another Black September, Mark Hulbert looks at the model portfolios of a group of advisers who beat both the recent bear market and the subsequent bull market, and finds they don't expect a replay of the carnage of September 2008.

 
GOLDMAN TO SHUTTER PRINCIPAL STRATEGIES UNIT 
 

Goldman Sachs decides to shutter its principal strategies unit, which does its proprietary trading, in the wake of recent financial-overhaul regulation, says a person familiar with the matter.

 
BANKS MAKING PROGRESS ON GLOBAL PAY RULES 
 

Global investment banks have made progress in overhauling pay rules as part of internationally agreed standards aimed at limiting excessive risk-taking in the banking industry, a survey by the Institute of International Finance shows.

 
UK FUND MANAGER PRESSURED TO RETURN CASH 
 

UBS and several other investors are taking legal action to force U.K. fund manager Reade Griffith to speed up the return of their money. He has returned only half the money in two years, frustrating investors.

 
RESERVE SEEKS DISMISSAL OF SHAREHOLDERS' CASE 
 

Reserve Management Co. has told a federal judge that a shareholders' class action over the 2008 collapse of the once-$62 billion Reserve Primary Fund is meritless and should be dismissed.

 
TPG SELLS REMAINING PING AN STAKE FOR $1.16B 
 

Private-equity firm TPG sells its remaining stake in Ping An Insurance for $1.16 billion, a person familiar with the situation says, reaping a sizable profit.

 
HARRISBURG, PA. MULLS HIRING BANKRUPTCY LAWYER 
 

Elected officials meet to discuss hiring a bankruptcy advisor and handing over control of their troubled municipal authority to a receiver as fiscal problems in Pennsylvania's capital city mount.

 
CUOMO INVESTIGATES CREDIT-CARD MARKETING 
 

N.Y. Attorney General launches a statewide investigation of credit-card companies marketing to college students through their schools, building on efforts to examine conflicts of interest in the student-lending industry.

 
SILVERFLEET HIRES JPMORGAN FOR SALE OF STERIGENICS 
 

Silverfleet Capital has hired JPMorgan to advise on the sale of Chicago-based medical services company Sterigenics International. JPMorgan has yet to launch a formal process, but the sale is likely to fetch around $800 million.

 
ECONOMY STILL ON A GRADUAL RECOVERY TRACK 
 

Atlanta Fed President Dennis Lockhart says the U.S. remains on a gradual track to recovery, forecasting notable improvement by the end of 2010, despite increasing risks to that outlook.

 
EU CLEARS €10B GREEK PLAN FOR BANKS 
 

The European Commission clears a Greek plan to recapitalize banks through the Hellenic Financial Stability Fund. The Fund has a capital of €10b and forms a part of the financial stability package reached with the IMF and the EU.

(END) Dow Jones Newswires

September 08, 2010 10:00 ET (14:00 GMT)

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