Two key economic indicators, consumer spending and personal income growth, both slowed in April as signs of an economic slowdown continue to accumulate.
The Commerce Department’s Bureau of Economic Analysis released figures this morning that showed growth of personal income shrinking to 0.2% in April, from 0.4% in March, and consumer spending decreasing from a growth rate of 0.1% in March to no growth at all in April.
Bear Stearns plans to turn over documents to securities regulators showing that financial giants like Goldman Sachs, Citadel Investment Group and Paulson & Co cut their exposure to the securities firm before its collapse, the Wall Street Journal reported on Wednesday.
The Securities and Exchange Commission, as part of an inquiry into events surrounding the implosion of Bear Stearns in March, has sought and will examine these trading records, people familiar with the matter told the newspaper.
UBS AG warned that it may post losses on U.S. real estate in the second quarter as it seeks $16 billion from shareholders to fix an ailing balance sheet.
In a prospectus released on Monday, the Zurich, Switzerland-based bank said that market conditions were “volatile and challenging” in the second quarter.
The bank plans to sell $22 billion of U.S. residential-mortgage-backed securities to BlackRock Inc. of New York for $15 billion.
