Daily Blog: Scouting the Internet and World at large

Further deterioration of earnings for Wachovia Corp. The business revised its first quarter loss up by 80% as a result of third part "stable value" vehicles which were related to its insurance portfolio. The expectation of this revision is possible what prompted Wachovia to raise $8 billion in capital earlier in the year.

Wachovia nearly doubles its 1Q loss to $708 million

The Charlotte-based bank said it lost $708 million, or 36 cents per share, during the January-March period, according to a filing with the Securities and Exchange Commission. It previously said losses totaled $393 million, or 20 cents per share, during the quarter.

Last month, Wachovia said it would pay $144 million to settle federal allegations that it failed to stop telemarketers who took advantage of thousands of elderly consumers.

Reports have also circulated that federal prosecutors are investigating Wachovia in a probe into alleged laundering of drug proceeds by Colombian and Mexican

It looks like Bank of America is having second thoughts about buying out Countrywide. Rumors have BofA making indications that they think the previously announced deal is too rich by both lowering their target price and all but refusing to honor much of Countrywide's debt. If the rumors are true then this is at least a sign of sanity within the company. Even without taking on risk from the troubled mortgage market the company faces lean times as the American economy and financial doubts drag down the investment market.

B. of A. should exit Countrywide deal: analyst

The analysts predicted that Charlotte, N.C.-based Bank of America will likely renegotiate the deal to $2 a share or less, and force the owners of Countrywide bonds to swallow the rest of the potential charges. All the same, they'd like to see a more drastic step taken.

"Bank of America should completely walk away from the Countrywide deal, as Countrywide's loan portfolio will prove a drag on earnings and could force Bank of America to raise additional capital," Miller wrote.

Standard & Poor's Ratings Services said Friday it lowered ratings on Countrywide due to the disclosure from Bank of America that there was no assurance that any of Countrywide's debt would be "redeemed, assumed or guaranteed" after their pending merger, according to the ratings agency.

Ok, now we have a real crisis. With wheat prices rising and the loss of a large portion of the strategic hops stockpile, beer prices are expected to continue to rise. The problem is expected to hit microbreweries hardest, though I wouldn't rule out a slow price escalation for major domestic manufacturers as well. The unfortunate fact is that while many are predicting the rise there is little we can do about it given the products shelf life. Is it finally time to switch to wine?

A Nation in Crisis: Beer Prices on the Rise

Beer retail prices had remained constant for the last several years, but began to increase in the second half of last year and continue to do so. Even worse news is that you will probably continue to pay more for your beer even if prices ease on other foods.

The two main grains used to make beer have risen dramatically in price over the last year. Malted barley, which is the second biggest ingredient used in making beer after water, is the grain used to create alcohol during beer fermentation. Barley prices have risen by double-digit percentages over the last year due to worldwide demand of all grains.

The other main ingredient in beer is hops. Some hop varieties give beer its bitter taste while other varieties give beer its aroma. Hops have had even more dramatic triple-digit percentage price increases over the last year and continue to be in short supply.

Lending Tree was forced to inform its clients of a data breech which exposed customer's personal information to outside mortgage companies. The breech was the result of several former employees who illegally accessed Lending Tree's system when the necessary credentials were not revoked after their termination. Lending Tree is currently pursuing legal action against the parties involved, but that does little to alleviate the shame of such a careless error.

LendingTree tells clients of breach

In a letter, the Charlotte-based company said that outside loan companies may have accessed the information, including Social Security numbers, between October 2006 and early 2008 and used it to market their own mortgages to LendingTree customers.

LendingTree would not say Monday when it learned of the incident or how many people were potentially affected. It sent e-mails to alert customers it believes may be at risk of having their information accessed.

The company said it does not believe the disclosure led to identity theft or fraudulent financial activity, but recommended customers check their credit reports for suspicious activity.