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The National Credit Union Administration (NCUA) files lawsuits against J.P. Morgan Chase and Royal Bank of Scotland (RBS) for losses suffered on $50 billion in mortgage bonds held by the NCUA. The NCUA is the federal regulator for credit unions in the U.S. More than 40 credit unions failed and a large number have suffered losses and are in a weakened condition because of the mortgage crisis. Because of the losses the credit unions have to pay more into the NCUA fund, pay less on deposits and charge higher rates on loans. About $800 million in damages is sought by the NCUA, which would go to NCUA's insurance and emergency support funds.

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Enrique Pena Nieto talks with the Journal's O'Grady. He would like to seee a consitutional amendment that allows private investment in Pemex, Mexico's state owned oil company..

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A detailed account on how Corzine ran MF Global, the motivation behind his decisions, and how his plan unraveled. The initial motivation for his decision to invest heavily in European sovereign bonds was to generate profits quickly to preserve MF Global's credit ratings. During his days as a bond trader at Goldman in the 1980's and 1990's Corzine was known to make risky bets to generate large profits. The same strategy failed to work in the highly volatile environment of 2011, when even the U.S. sovereign bond credit rating was downgraded.

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The handling of the oil spill by the Obama administration threatens to permanently affect the image of the Obama administration. There may be a spillover effect from BP's ineptness that draws in Obama's and Interior Secretary Ken Salazar's handling of the crisis. The Obama administration relied too much on BP to bring an end to the crisis. And it has not articulated aclear policy for regulation of technologically sophisticated industries like investment banking, deepwater oil drilling and other industries of this type where alot can go wrong. Tough inspections are needed in these industries and strict regulation for the proper operation of capitalism. Financial regulatory reform bills in Congress also have suffered from being whittled down so that strict regulation is far from being a reality to avoid future crises.

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Vice President Biden talks with Charlie Rose and tells hime he thinks BP has done the best they could . Apart from being slow in giving the correct figures about how much oil is coming out of the pipe, Biden says BP as responded to every request of the Obama administration. Charlie Rose specifically asks Biden, hasn't his administration lost its story and isn't it looking more and more like the Carter Administration during the Iranian Crisis. Biden's response is that the President has acted swiftly. Rose asks about the talk of a new norm for unemployment as unemployment remains sticky on the way down, and hiring has not picked up though layoffs have slowed down. Biden's response is that he and Obama don't buy into a new norm and are out to build anew economy. It appears there is a misconnect somewhere between the questions about genuine concerns and the responses.

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The Syrian National Coalition wins recognition from about 100 countries as the fall of the Assad regime approaches. U.S. recognition is seen by the Coalition as delayed, coming only a day after banning of a Muslim group fighting the Assad regime, giving the impression that the Obama administration was more concerned about counter terrorism than the Syrian people's popular struggle against the Assad regime.

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Gail Collins on why Senator Lieberman is opposing the public option, expanding Medicare Eligibility and other parts of the health care bill.

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A new report from Tepco and the Japanese government says the reactor core melted fully. Nuclear-fuel rods melted completely, burning through to the bottom of a second containment vessel and eroding two metres into the concrete bottom, and close to breaching the vessel's steel casing.

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Of the $787 billion stimulus program only $46 billion has gone out so far, mostly to help with unemployment checks and for Medicaid, and only $33 million has gone out for transportation projects.

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New legislation that cleared Congress on helping homeowners about 400,000 homeowners avoid foreclosure. Congresspromises to get tough on lenders and loan servicers if they do work to honor what Congress has mandated. The Federal Housing Administration will run the program and it will insure upto $300 billion in refinanced 30 year fixed rate loans The mortgages cannot be for more than 90% of a home's newly appraised value. For mortgages that exceed that value the lender would have to voluntarily write down the principal to the qualifying level. If the home goes up in value the borrower must share newly created equity with the FHA. THe program begins October 1 and ends Sept 30, 2011. Borrowers will not qualify if they have intentionally defaulted on the loan or if they had a debt to income ratio of less than 31% as of March 1. This is the first serious effort by Congress and the Administration to work in bipartisan fashion to put a serious dent in the housing foreclosure levels which are at the root of the present financial crisis and Secreatary Paulson, Bernanke, and Barney Frank and others in Congress have helped support this effort which should eventually help the financail markets recover from failing mortgages that caused this crisis....

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The NYT Editorial on June 2, 2009, says the Obama anti-foreclosure plan is woefully inadequate, and can't stop the wave of foreclosures. The administration's foreclosure plan that went into effect in March 2009, offers upto $75 billion in incentives to lenders to reduce loan payments for homeowners facing foreclosure. Lender participation is largely voluntary under the Obama plan, making it weak. Since March about 100,000 homeowners have been offered a modification according to the Treasury Department. This is a small dent in the plan's intent of preventing 4 million foreclosures. And it continues the Bush administration's apathy and lack of effective action to prevent foreclosures. The Mortgage Bankers Association reported that in the first quarter 2009 5.4 million mortgages were delinquent or facing foreclosure. There are 15.4 million "underwater" homeowners, those who have no equity in their homes, and with average person deeply in credit card and other debt, these people have little to fall back on if they lose their jobs or have a medical crisis. The simple arithmetic of these 15.4 and the 5.4 million, adding upto 20.8 million households, shows that anywhere near a fifth of American households are in deep financial trouble. The same numbers, or another fifth of American households, are approaching foreclosure. Drawing concentric circles of these homeowners inside a circle showing all American households, and seeing these concentric circles increasing in size with every quarter of job losses, one can clearly see why this is the biggest problem facing the economy. Job losses in January 598,000, February 681,000, March 699,000, April 539,000, totalling 2.5 million for Jan-April 2009, and 8.9 million working parttime. The underemployment rate at 15.8%. Till this foreclosure situation exacerbated by rising under employment is addressed, the credit easing and the small recovery thats been managed since December 2009, is like a mirage in the desert. A false sense of comfort. The NYT editorial makes the point that the foreclosures prevention efforts focus entirely on reducing monthly payments. Even here it falls short, in not reducing the payments enough, or programs not big enough in scope to address the millions of homeowners needing help. But an even bigger problem remains unaddressed, says the NYT, and this is not reducing the principal. An effective anti- foreclosure plan has to reduce the principal for the 15.4 million homeowners under water. This as Martin Feldstein has argued repeatedly in the oped pages of the WSJ since early 2008- the homeowners under water or approaching that situation have no incentive to hold onto their homes- has to be addressed by government taking responsibility for loan principal reduction in a carefully designed plan requiring participation of lenders. NYT points out that the mortgage industry has resisted taking this approach, and the Obama plan does not emphasize this important part of an effective plan to reduce foreclosures. By opposing this, the banks with the toxic mortgage assets and the government by going along with this, are shooting themselves in the foot. This makes any recovery at best weak, and more likely a false hope lacking fundamental support, foresight and vision....

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This WSJ editorial in September 2014 says many of president Obama's statements and decisions on Obama healthcare legislation and implementation, Syria, NSA and privacy, the Middle East, Russia, showed poor judgement. It refers to a piece by Peter Baker in NYT where it is said that Obama mocked how people see him as too professorial, diffident, in a sarcastic statement. The problem says WSJ is that president Obama has poor judgement. Being academically credentialed and quick grasp of subject matter is not the same as having the ability to discern things, instinct and grasp of the essence of the matter. George Bush senior had a long resume and was academically credentialed. By comparison Truman had a short resume and was not academically credentialed or quick with data and analysis. He had something more essential and important- a discerning mind and grasp of the larger picture, as well as listening abilities for exceptional advisors such as General Marshall and Acheson he gathered around him....

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Four resolutions Jack Welch suggests for 2009 and tough times for anybody leading acompany, adivision, or a team, are to be focussed on delivering innovative products and services. Your customers are hurting too so give them more value for their buck. So don't get too defensive and be looking at the internal side of costs alone. Be outward looking and stay on the offensive suggests Welch. This is the first and foremost resolution. The second resolution is make the value of integrity and keeping it, employees learning that ignoring ethical violations however small is the same as making one. Third, he suggests educating the employees and the public of the dangers of taking away secret ballot in labor elections through the Employee Free Choice Act. Its the failure of the union to change work rules and other ways of doing things that has created a lot of the problems facing the Detroit auto industry. Its not the best way to preserve jobs and benefits when they be eroded by failing competitiveness and other errors. And the last resolution for 2009 and the tough years ahead is to celebrate the hard work and results in addressing the difficult challenges ahead so the team remains motivated, inspired, and works with enthusiasm to build on small victories and heroic efforts. ...

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The reasons Exubera was conceived by Pfizer, the events leading to the persistance with backing Exubera with large investments in manufacturing and marketing and buying out Sanofi's stake in the face of repeated setbacks, the difficulties posed by a insulin inhaler from the very beginning. Bulkiness the size of a flashlight this inhaler was embarrassing to use in public, it required regular lung exams because the FDA placed a warning on theproduct because only 10% of the product went where it was intended and 90% was inhaled into the lungs and who knows what that could do especially for asthmatics but also for others. It cost twice as much instead of $2 or 3 it cost $5 per day. And the 3 milligram packet had to be loaded into the inhaler which required instructions on how to use, one doctor saying it woul take an hour to educate a patient compared to 5 minutes for an insulin pen. Abbott and Lilly have insulin inhalers that they are bringing to market in 2009. Abbott's uses aerosol insulin instead of powder, Lilly's is the size of a cellphone. Will they work for customers? Pfizer attributed as key cause of the failure to the need for regular lung exams because of the regulator's warnings for insulin inhaled into the lungs. Are Lilly and Abbott taking this problem seriously?...

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Panasonic's renewed focus on profitability. Panasonic's new 3 year business plan under CEO Tsuga focusses on profitability. Tsuga says "the first thing we have to do under this business plan is to get rid of the loss making businesses." Business units will be reorganized so that each business unit will do the product planning, production and sales, as opposed to the current organization which splits units by functional areas such as development and production. The changes are likely to bring the units down to 49 from 88. In a sign of the changes Panasonic set new profit targets but no revenue targets.

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Islamist parties are having difficulty integrating into political life and bridging the differences with secularist or liberal political parties in Egypt, Libya, Tunisia, Pakistan and Turkey following the democratic transition in 2011-2013 in the Muslim world. Some progress has been made, but lack of experience, lack of respect for the opposition and other opinion, overreaching, personal styles of individual leaders such as Erdogan and Morsi, and poor economic conditions after decades of neglect under military rulers in Egypt and other countries, is creating problems for Islamist parties in government.