* WASHINGTON (7/29/08)--The projected budget deficit for the fiscal year beginning Oct. 1 will be $490 billion--about $83 billion more than President Bush projected in February (Bloomberg
July 28). The shortfall may be reflected in the cost of distributing economic stimulus payments, the overall economic slowdown and expenses from wars in Afghanistan and Iraq. Dana Perino, White House press secretary, declined to comment on the projections at a press briefing Monday. A July 25 Bloomberg
survey indicated that the deficit will be at $447 billion next year and $407 billion this year ... * WASHINGTON (7/29/08)--The Securities and Exchange Commission (SEC) is expected to broaden temporary limits on short-selling beyond 19 financial companies, it recently announced. The limits expire Tuesday (The Wall Street Journal
July 28). Under short-selling, traders sell borrowed stock while assuming the price will decline, and the stock can be repurchased at a lower price. The SEC is working to make its short-selling rules permanent, and was expected to recommend options to commissioners this week ... * WASHINGTON (7/29/08)--Ken Wilson, a Goldman Sachs Group executive, will take a leave of absence to join the Treasury Department as a housing crisis adviser (Inside Washington
July 28). The Federal Deposit Insurance Corp. also announced that Arthur Murton will act as interim chief operating officer until John Bovenzi, who is running IndyMac, returns to his post ... * WASHINGTON (7/29/08)--The U.S. Treasury Department issued a best practices report for residential covered bonds Monday. The document
aims to provide clarity and homogeneity to the market, define a starting point for the U.S. covered bond market, and serve as a complement to the Federal Deposit Insurance Corp. final policy statement, the department said ... * WASHINGTON (7/29/08)--The Community Development Financial Institutions (CDFI) Fund announced Monday that organizations that are not certified CDFIs and intend to apply for financial assistance in 2009 must submit a certification application by Oct. 1. Certified CDFIs that intend to apply for financial assistance next year must submit a certification of material events by Oct. 1 ...