Wall Street Roundup: The cost of Fannie and Freddie. American banks and Mexican drugs
Consumer confidence down. A widely watched index of consumer confidence fell in June, and more than expected, pointing to increasing uncertainty about the economic future.
The cost of Fannie and Freddie. While the financial reform legislation avoided dealing with the failures of Fannie Mae and Freddie Mac, the Congressional Budget Office is estimating that the cost to taxpayers of cleaning up the mortgage-financing giants could rise as high as $1 trillion.
Financial regulations have slow phase-in. Banks could have as long as 12 years to get up to speed with some of the strictest rules in the financial reform legislation, Bloomberg reports.
Banks still vulnerable. A leading international finance group, the Bank for International Settlements, released a report Monday arguing that banks have been propped up by government stimulus and have not done enough to avoid future crises.
American banks and Mexican drugs. Bloomberg Markets takes a long look at the role that American banks such as Wachovia have played in moving money around for Mexican drug cartels.
BP and American banks. The New York Federal Reserve is probing whether American banks could be at risk if BP fails in the wake of the oil spill in the Gulf of Mexico, Reuters reports.
-- Nathaniel Popper in New York