Wall Street Rumors – June 19, 2008

Daily rumors covering the global markets. Subscribe to the update feed here.

Prosecutors in Bear Case Focus In on Email
The indictments of two former Bear Stearns Cos. hedge-fund managers are expected to cite a personal email sent from one to the other suggesting that the funds were headed for the rocks — four days before they told investors there was little to worry about.

Midwest Floods May Drive Food Prices Even Higher
The Midwest floods are raising the inflationary tide rippling through the nation’s supermarkets and restaurants — and meat prices may soon start rising along with prices for bread, eggs and breakfast cereals.

Stock Futures Trade Flat Ahead of Key Jobs Data
U.S. stock futures were largely unchanged Thursday following Wednesday’s sharp losses in the financial sector, as caution prevailed ahead of key economic data.

Paulson Pushes Oversight Changes
WASHINGTON — Treasury Secretary Henry Paulson is expected to call for faster changes to the oversight of financial markets that would expand the role of the Federal Reserve, in the wake of the collapse of brokerage firm Bear Stearns & Cos.

Surprise Ruling Gives Boeing New Shot at $40 Billion Job

Boeing Co., (NYSE:BA) battling to reverse its defeat on a $40 billion tanker contract, received a surprise boost as a federal-government watchdog said the Air Force botched the bidding and should reopen it.

In Saudi Oil Output Discussions, The Old Clout Will Be Missing
Oil diplomacy used to be the province of a small cast of characters with the muscle to make a difference when prices got out of hand.

Still ‘Brutal’ at Morgan Stanley
Almost everything that could go wrong for securities firm Morgan Stanley (NYSE:MS) did in its latest quarter, deepening concerns that Wall Street still has a way to go before it is finished digging out of the credit crunch.

Regulators Lay Plans for Investment Banks’ Access to Fed Loans
June 19 (Bloomberg) — U.S. regulators are planning how to let investment banks retain access to Federal Reserve loans if the central bank shuts an emergency program in September, two government officials said.

Kerkorian’s Tracinda Increases Stake in Ford to 6.5% (Update1)
June 19 (Bloomberg) — Billionaire investor Kirk Kerkorian’s Tracinda Corp. bought another 40.8 million Ford Motor Co. (NYSE:F) shares to build his stake in the second-biggest U.S.- based automaker to 6.5 percent.

HBOS Says House Prices to Fall, Pushing Up Bad Loans
June 19 (Bloomberg) — HBOS Plc, the U.K.’s biggest mortgage lender, warned house prices will fall as much as 9 percent this year, more than it earlier forecast, forcing more borrowers to default on home loans.

Wealthy Investors Shift Funds From Global Banks to Reduce Risks
June 19 (Bloomberg) — High-net worth individuals, those coveted financial-services customers with at least $2 million to invest, are shifting assets from brokerages and large global banks to smaller, more conservative alternatives.