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From Briefing.com

Periodicals Wrap-Up for Monday, September 29th
WALL STREET JOURNAL: The Wall Street Journal reported that lawmakers and the Bush administration have agreed on a deal to rescue the financial system. The $700B deal will essentially nationalize the toxic mortgages and the securities associated with them. At the deal’s core is Treasury Secretary Paulson’s idea of buying impaired mortgage related assets from financial institutions…FINANCIAL TIMES: According to the Financial Times, Goldman Sachs (GS) is looking to buy up to $50B worth of assets from troubled financial institution as part of its push into commercial banking. Goldman plans to put these assets on the balance sheet of its Utah industrial loan corporation…American International Group (AIG) is planning to sell 15 business units including its aircraft leasing unit to pay off the $85B government loan and remain independent, according to the Financial Times. People familiar with the situation said that AIG wants its international life insurance business and its U.S. pension business to remain as its core businesses…NEW YORK TIMES: The New York Times reported that federal regulators are pushing for the sale of Wachovia (WB) to either Wells Fargo (WFC) or Citigroup (C)…PRESS TV: Iran is shocked by the UN Security Council’s decision to pass a new resolution against the country on Saturday, the speaker of Iran’s parliament said. The resolution may prompt Iran to evaluate whether to continue negotiations about ending its nuclear program, according to Press TV…

Asian Markets Wrap-Up for Monday, September 29
Asian stocks retreated on concerns that the U.S. bailout plan will not halt bank failures worldwide. Most markets there were lower…JAPAN: The Nikkei 225 Stock Average dropped 149.55, or 1.3%, to 11,743.61, while the broader Topix index fell 20.02, or 1.7%, to 1,127.87. Inpex lost 6.1% to Y918,000. Mitsui & Co. (MITSY) dropped 8.4% to Y1,304. Resona was down 2.3% to Y142,200. Mizuho Financial Group (MFG) lost 1.5% to Y461,000. Fast Retailing gained 5.1% to Y10,900. FamilyMart Co. jumped 6.8% to Y4,390. Kikkoman Corp. added 4.5% to Y1,519. Isuzu Motors slid 10% to Y291…AUSTRALIA: The S&P/ASX 200 Index dropped 97.40, or 2%, to 4,807.40. BHP Billiton (BHP) tumbled A$1.60, or 4.5%, to A$34.24. Rio Tinto Group (RTP) slumped A$5.50, or 5.5%, to A$95.50. Aquarius Platinum lost 38 cents, or 5.3%, to A$6.82. Platinum Australia sank 5 cents, or 2.9%, to A$1.68. Caltex Australia slid 55 cents, or 4.3%, to A$12.19. Woodside Petroleum (WOPEY) was down A$1.25, or 2.2%, to A$54.55. Santos (STOSY) lost 25 cents, or 1.3%, to A$19.70. Centro Properties Group was up 2 cents, or 24%, to 10.5 cents…AROUND ASIA: In Hong Kong, the Hang Seng Index retreated 801.41, or 4.3%, to 17,880.68. HSBC (HBC) sank 1.7% to HK$122.40. New World declined 13% to HK$8.23. Hang Lung Properties fell 4.5% to HK$18.02. Sun Hung Kai Properties (SUHJY) tumbled 5.1% to HK$81.10. Ping An lost 11% to HK$42.50. Dah Sing Banking Group was down 9.1% to HK$8.57. Bank of East Asia (BKEAY) sank 5.2% to HK$24.50. Beijing Capital International Airport Co. slumped 27 cents, or 4.3%, to HK$6.

JPM / WFC / BAC - “best bets” as the financial storm intensifies- Barron’s
Shares of JPMorgan Chase (JPM) jumped 11% Friday, as investors applauded the latest bold move by CEO Jamie Dimon. Strong brethren like Wells Fargo (WFC) also rallied. Dimon has again walked away with attractive assets from Washington Mutual (WM) at what seems a good price. But the deal, which came in tandem with WaMu’s seizure by the government, sent shockwaves through the stock and bond markets as investors speculated about which banks would fall next. The two most prominent potential casualties were Wachovia (WB), which closed down 27% on Friday and dropped another 12% after hours; and National City (NCC) which closed down 26% on the day. Investors and analysts were quick to applaud JPMorgan Chase’s WaMu acquisition. It gives JPMorgan a presence in some key states, and should boost its profits right away. The deal will make JPMorgan Chase the industry’s largest holder of deposits. Dave Ellison, who runs the FBR Large Cap Financial Fund (FBRFX) says, “Deposit franchises are where you want to be right now.” Pointing also to Wells Fargo (WFC) and Bank of America (BAC) as other examples. Ellison says, “Those are the companies you want to own.”

Weekly additions to the Investors Business Daily-100
The following are additions to the Investors Business Daily-100 list for the week of September 26: Tyler Technologies (TYL), Sybase (SY), CSG Systems (CSGS), Gmarket (GMKT), Syniverse Holdings (SVR), Open Text (OTEX), Norfolk Southern (NSC), Laclede Group (LG), Southside Bancshares (SBSI), Westwood Holdings Group (WHG), Emcor Group (EME), Psychiatric Solutions (PSYS), Permian Basin Realty Trust (PBT), Northern Trust (NTRS), Strayer Education (STRA), Concho Resources (CXO), Stericycle Inc (SRCL), Jos A Bank (JOSB), Green Mountain Coffee roasters (GMCR), Badger Meter (BMI).

Weekly subtractions from the Investor’s Business Daily-100
The following are subtractions from the Investors Business Daily-100 list for the week of September 26: Titan Machinery (TITN), Fuel Tech. (FTEK), Potash Corp (POT), Bruker Biosciences (BRKR), Hill International (HILL), Sohu.com (SOHU), Northwest Pipe Co, (NWPX), Nasdaq Omx Group (NDAQ), Southwestern Energy (SWN), Agrium (AGU), Riskmetyrics Group (RMG), TD Ameritrade (AMTD), Mindray Medical (MR), Netlogic Microsystems (NETL), Quanta Services (PWR), Greif Inc (GEF), NCI Building Systems (NCS), Middleby Corp (MIDD), Chart Industries (GTLS), Interwoven Inc (IWOV).

Steel demand and prices decline-WSJ
U.S. steel manufacturers are seeing a significant drop in demand as the credit crisis severely affects the auto and construction sectors, reports the Wall Street Journal. Inventories are growing and prices are off by as much as 10%, according to the Wall Street Journal. “The instability of financial markets and the general slowdown in the commercial building sector are cause for concern in coming quarters,” according to George Stoe, COO of Ohio’s Worthington Industries (WOR).

U.S. equity futures continue to point to a lower open
Stocks continue to point to a lower open as the bailout package heads to the House despite ongoing criticism from lawmakers. Earlier today President Bush urged Congress to pass the measure. Also, it was announced that Wachovia Corp. (WB) will be acquired by Citigroup (C) in a deal that involved the Treasury Department, the FDIC and Federal Reserve. Shares of Wachovia are now trading lower by more than -80% despite the fact that the bank is being acquired and has not failed.

AAPL downgraded to Equal Weight from Overweight@MSCO
Morgan Stanley downgraded AAPL decelerating PC unit and EPS growth. Target to $115 from $178.

Citigroup to acquire banking operations of Wachovia-FDIC
Citigroup Inc. will acquire the banking operations of Wachovia Corporation, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. All depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC. Citigroup Inc. will acquire the bulk of Wachovia’s assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

Sources say Goldman was AIG’s largest trading partner-NY Times
According to six people close to the insurer, as regulators looked to stave off disaster, first with the collapse of Lehman Brothers and then with the “teetering” American International Group (AIG), Goldman Sachs (GS) CEO Lloyd Blankfein had particular cause for concern: Goldman was reportedly AIG’s largest trading partner and a collapse could mean a “hole of as much as $20B” for Goldman. A spokesperson for Goldman said the company “was never imperiled” by AIG’s troubles; the spokesperson says Blankfein was involved in the Fed discussions “to safeguard the entire financial system, not his firm’s own interests”.

Amazon.com-AMZN estimates lowered ahead of Q3 results@BWS Financial
BWS Financial believes competition is pushing prices lower and that Chinese sales in the quarter were impacted from the hurricane and the Olympics. The firm maintains a Sell rating on the stock.

Jim Cramer’s “Mad Money”
Cramer told the viewers Friday that there is a new problem looming on the horizon. Cramer explained that as fears lingers in the markets, large corporations and institutions are pulling their money out of bank money market funds, in favor of government backed Treasury bills. This move is slowly robbing banks of the capital reserves they so desperately need. Cramer called it “an invisible run on the banks.” Cramer called for the Federal Deposit Insurance Corporation (FDIC) to raise its account protection limit from $100,000 to as much as $2.5M per account to rescue the banking system. Cramer told investors that without a bailout plan and higher FDIC limits, they should continue to sell into strength and prepare for the worst. Then, Cramer directed his “Outrage of the Day” segment at Sen. Richard Shelby (R., Ala.) and his supporters. Cramer said Shelby’s opposition to the government bailout plan could do more to destroy the economy that any other person in history. Cramer reminded viewers that without the plan, the unemployment rate could rise from 6% to 7% to as much as 20%, and the DJIA could plummet almost 3,000 points. He predicted we could see another 5 to 6 more bank failures next week if a bailout plan does not get passed. Cramer said that people who speculate on bank stocks, hoping for a quick spike or takeover, are just dead wrong. Next, Cramer talked with Dr. T.J. Rodgers, pres/CEO of Cypress Semiconductor (CY), to find out how the spinoff of solar company Sunpower (SPWR) will affect the stock going forward. Rodgers said Cypress still trades as a combined company today, but he looks forward to spinning off the $3B solar subsidiary to once again focus exclusively on semiconductors. He said that investors fall in and out of love with solar stocks and he’ll be glad to see the volatility ease. Regarding Cypress’ remaining business, Rodgers said that he is seeing the market slowing down for semiconductors, and acknowledged times are tight at Cypress. (Bullish) SYY; LOW. (Bearish) FMER; STP; JCI; CNB; GOOG.

Fast money position recap: Macke Owns (MSFT), (WMT); Seymour Owns (AAPL), (EEM), (MER), (MSFT); Seygem Asset Management Owns (VIP); Seygem Asset Management Is Short (RSX); Finerman Owns (GS); Finerman’s Firm Owns (MSFT), (MO), (PM), (RAI) ; Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (AAPL), (EOG), (FCX), (FTO), (GS), (KOL), (NOV), (POT), (X), (YHOO); Terranova Is Long Mini S&P Futures; Terranova Owns (AIG) And Owns (AIG) Puts; Terranova Owns (MS) And Owns (MS) Puts; Terranova Is Long Crude Oil

WB dropping like a rock is not good for the morning atmosphere. There is now a clear separation of the weak and strong in the financials. If you need help from the Fed, you will be punished and these shareholders will be last in line for EPS with leftovers from future earnings. This bill will accelerate the complete purge of the toxic assets but there will be collateral damage to all. The quicker we move throught his process the better IMO. Oil is down sharply as well as basic materials including steel.