Small lenders express reform worry (Reuters)

WASHINGTON (Reuters) - U.S. lenders and bankers of the community has rang to legislators Tuesday over proposed federal rules to reduce the risk on mortgage, saying that the guidelines could hurt the small banks and impair the credit markets.

The rules - mandated by the adoption of the Act of revision Dodd - Frank Wall Street - are under study by regulatory agencies to establish guidelines for the initiators of securitized loans, the types of instruments which are blamed for the financial crisis of 2007-2009.

Regulators intend to reduce the risk by forcing lenders to hold a 5 percent stake in any common debt instrument on the secondary market.

"This proposal should be adopted, it will certainly be driving many banks of mortgage credit and many borrowers of closure of the credit market entirely," Christopher Dunn, chief operating officer of South Shore Savings Bank in South Weymouth, Massachusetts, told a hearing of Senate Banking Committee, on behalf of the American Bankers Association.

The guidelines present "fly to standards of practice and clear", said. This type of "regulatory burden is significant" small institutions and will affect access to credit for consumers.

The Act creates an exemption for mortgage loans, deemed to be sufficiently safe and gave regulators the task of defining suitable loans. Regulators proposed an exemption for so-called qualified residential mortgage loans when borrowers are 20 per cent payments. A comment on the proposed rule period expires August 1.

"We must achieve a proper balance," said Senator Jack Reed, a Rhode Island Democrat, at the hearing. "If you have any of these rules of the road, you will get exactly what we - who was at stake and without low money.".

FREDDIE AND FANNIE REFORMING

The Group of experts representing small lenders also expressed unease about proposals ends Fannie Mae (FNMA.)(OB) and Freddie Mac (WMAC.)(OB).

Government sponsored enterprises are crucial for the housing market because they provide funding for the banks and corporations purchase mortgage loans and keep them on their books or their packaging for sale to investors.

"I have concerns ranging from a GSE market in a private market." "You must put in place a system," said Jack Hartings for America's independent community bankers.

He said "The ESCO must not be released to businesses on Wall Street that has fueled the financial crisis with haphazard subscription, abusive loan terms and an endless stream of complex securitization products,".

Legislators in the Senate have not produced a legislative approach to revamp the housing finance system. The Republican led House of representatives of the United States, however, has introduced a variety of bills aimed at curbing the role of Government in the system of mortgage loans, including legislation that would create private entities to replace Fannie and Freddie completely.

Many small institutions worry that if Fannie and Freddie have been eliminated, the banks would have an advantage over smaller competitors.

Hartings said Committee community banks and small institutions represent approximately 20 percent of the mortgage market and provide access to loans for borrowers underserved by large banks.

Legislators agreed by small banks should not be adversely affected by new regulations.

"We just to make sure that we do not regulatory barriers that place small banks an unfair competitive disadvantage," said Senator Richard Shelby of Alabama, top of the page of the Republican group.

(Reports by Margaret Chadbourn;) (Editing by Andrea Ricci)

RPT-Wall St Week Ahead: Bulls ready to charge into the wall of worry - Reuters

(Repeats column originally transmitted late Friday)

* End quarter Bounce looms for stocks

* The Greece and the Italy are sources of uncertainty

* S & P 200 days moving average line in the sand.

By Rodrigo Campos

(NEW YORK, June 26, Reuters) - A bounce could be in the cards for us stocks this week as the bulls of defending a level key technical and portfolio managers buy winners of the quarter to support their books.

But earnings from defensive staples or other areas health care which exceeded the market in recent months only support the notion that the US stock market should complete its phase of correction and panic sale must be done before a more sustained return develops.

"We want to see more fear," said Ari Wald, strategist of fairness to Brown Brothers Harriman in New York.

Be careful that your desires.

The problems that have led the recent decline, including the slow March of the Greece to default on its debt, weak U.S. economic data and the rampant due to lift the ceiling of the U.S. debt, are far from resolved.

HOLDING THE 200 DAYS SHOWS THE WAY

Despite a drop in dragging the & S P 500 as 8.2% below its high success three years in early may, the index held above its 200-day moving average - a line in the sand as the bears and bulls major battle for control of market.

The slide had been telegram for the weeks and the performance by the market book - folding to a widely followed level - seems too well choreography to some analysts.

"The fact that we went 200-days... seems just a little too perfect,"said Marc Pado, U.S. Cantor Fitzgerald & Co in San Francisco market strategist.""

He said that the timing of the move was favourable, as the market creates a technical basis before resuming its move upward on the back of solid gains.

"You might get an attempt of a move of dust," said Pado. "But the majority is sometimes right."

Even if they are right, they seem not too convinced. So far in this quarter - being the first in the red for the S & P 500 in the last year, daily volume on the New York Stock Exchange, NYSE Amex and Nasdaq has average 7.22 billion shares.

It is to the bottom of the actions 7.94 billions of dollars traded every day during the first quarter, when the & S P 500 won 5.4%. Commitment to the market decreased. Frantic selling, flush to the bottom of the day traders appears to be absent up to now in this corrective phase.

Despite the holding above this level, the market has not removed the danger zone of dipping in its 200-day average. The curve has a steep slope, the & S P 500 took about two years to check an advance of 100 per cent of its March 2009 low.

The 200 day moving average is$ 1,263.47, less than 0.4% below the S & P 500 Friday closing.

"Whenever you test a resistance or support level, make you smaller," said Nicholas Colas, chief strategist of the New York ConvergEx Group market. "It's almost like a piece of metal." Each time that you hit, it grows more fragile, and that is why people are really concerned about the third or fourth time. »

After three consecutive days of decline, the & S P 500 declined 0.24% for the week and finished Friday at 1, 268. 45 - its seventh decline in the last eight weeks.

Industry lost Dow.DJI 0.58% for the week, closing Friday at 11,934.58, while the Nasdaq Composite.IXIC rose 1.39% for the week to end the 2,652.89. The Nasdaq is only slightly higher for the year, while the Dow and the S & P 500 both are still solidly in the black for 2011.

The next two weeks before the start of serious, quarterly earnings season may be marked by wild swings as those recently considered. Thursday, after a title to the Greece market, the & S P 500 posted his return stronger in almost a year, the days where the reference point fell more than 1%.

Its session low Thursday, the & S P 500 climbed more than 20 points in the fence. Swing covered Dow 233.79 points from its low intraday high session Thursday.

But buying interest waned Friday. Doubts about the transition to the Parliament in Athens of higher taxes and service cuts, weak Italian banks are also scaring investors.

The Federal Reserve on Wednesday gave a bleak outlook on the economy, down its forecast of growth of GDP in 2011 and 2012. And Chairman of the Fed Chairman Ben Bernanke has found it difficult to explain the sources of a said economic "soft patch" which seems to have become ubiquitous.

SUMMER STORM DATA

Also the weekly numbers of claims without employment, housing and manufacturing data will attract the most attention this week.

The index of S & P Case-Shiller April home prices Tuesday and the National Association of Realtors can index sale House Wednesday awaiting could confirm double dip of the housing market.

Activity of the plant grew in May to its slower pace since September 2009, according to the Institute for supply management, and Friday June ISM number should fall to 51.9, indicating a still slower rate of growth.

New applications for unemployment Thursday are expected to land over 400 000 for a 12th consecutive week, according to economists surveyed by Reuters.

Personal income and consumption, Monday, should move higher in May. Consumer confidence, on Tuesday by the Conference Board, predicted a reading of 60.5 June, just a touch less than 60.8 may, a survey Reuters showed. Despite a recent string of weak data in may, a sharp decline in crude oil prices is expected to buoy the confidence of consumers. (Wall St Week Ahead appears every Sunday.) Comments or questions about this column can be sent by email to: rodrigo.campos (at) thomsonreuters.com) (Reporting by Rodrigo Campos;) Other reports by Edward Krudy; (Editing by Jan Paschal)

Ready to compete in the wall of bulls worry (Reuters)

NEW YORK (Reuters) - a rebound may be maps for stocks this week as the bulls of defending a level key technical and portfolio managers buy winners of the quarter to support their books.

But earnings from defensive staples or other areas health care which exceeded the market in recent months only support the notion that the US stock market should complete its phase of correction and panic sale must be done before a more sustained return develops.

"We want to see more fear," said Ari Wald, strategist of fairness to Brown Brothers Harriman in New York.

Be careful that your desires.

The problems that have led the recent decline, including the slow March of the Greece to default on its debt, weak U.S. economic data and the rampant due to lift the ceiling of the U.S. debt, are far from resolved.

HOLDING THE 200 DAYS SHOWS THE WAY

Despite a drop in dragging the & S P 500 as 8.2% below its high success three years in early may, the index held above its 200-day moving average - a line in the sand as the bears and bulls major battle for control of market.

The slide had been telegram for the weeks and the performance by the market book - folding to a widely followed level - seems too well choreography to some analysts.

"The fact that we went 200-days... seems just a little too perfect,"said Marc Pado, U.S. Cantor Fitzgerald & Co in San Francisco market strategist.""

He said that the timing of the move was favourable, as the market creates a technical basis before resuming its move upward on the back of solid gains.

"You might get an attempt of a move of dust," said Pado. "But the majority is sometimes right."

Even if they are right, they seem not too convinced. So far in this quarter - being the first in the red for the S & P 500 in the last year, daily volume on the New York Stock Exchange, NYSE Amex and Nasdaq has average 7.22 billion shares.

It is to the bottom of the actions 7.94 billions of dollars traded every day during the first quarter, when the & S P 500 won 5.4%. Commitment to the market decreased. Frantic selling, flush to the bottom of the day traders appears to be absent up to now in this corrective phase.

Despite the holding above this level, the market has not removed the danger zone of dipping in its 200-day average. The curve has a steep slope, the & S P 500 took about two years to check an advance of 100 per cent of its March 2009 low.

The 200 day moving average is$ 1,263.47, less than 0.4% below the S & P 500 Friday closing.

"Whenever you test a resistance or support level, make you smaller," said Nicholas Colas, chief strategist of the New York ConvergEx Group market. "It's almost like a piece of metal." Each time that you hit, it grows more fragile, and that is why people are really concerned about the third or fourth time. »

After three consecutive days of decline, the & S P 500 declined 0.24% for the week and finished Friday at 1, 268. 45 - its seventh decline in the last eight weeks.

Dow industrial (.)(DJI) lost 0.58% for the week, closing Friday at 11,934.58, while the Nasdaq Composite (.)(IXIC) rose 1.39% for the week to end the 2,652.89. The Nasdaq is only slightly higher for the year, while the Dow and the S & P 500 both are still solidly in the black for 2011.

The next two weeks before the start of serious, quarterly earnings season may be marked by wild swings as those recently considered. Thursday, after a title to the Greece market, the & S P 500 posted his return stronger in almost a year, the days where the reference point fell more than 1%.

Its session low Thursday, the & S P 500 climbed more than 20 points in the fence. Swing covered Dow 233.79 points from its low intraday high session Thursday.

But buying interest waned Friday. Doubts about the transition to the Parliament in Athens of higher taxes and service cuts, weak Italian banks are also scaring investors.

The Federal Reserve on Wednesday gave a bleak outlook on the economy, down its forecast of growth of GDP in 2011 and 2012. And Chairman of the Fed Chairman Ben Bernanke has found it difficult to explain the sources of a said economic "soft patch" which seems to have become ubiquitous.

SUMMER STORM DATA

Also the weekly numbers of claims without employment, housing and manufacturing data will attract the most attention this week.

The index of S & P Case-Shiller April home prices Tuesday and the National Association of Realtors can index sale House Wednesday awaiting could confirm double dip of the housing market.

Activity of the plant grew in May to its slower pace since September 2009, according to the Institute for supply management, and Friday June ISM number should fall to 51.9, indicating a still slower rate of growth.

New applications for unemployment Thursday are expected to land over 400 000 for a 12th consecutive week, according to economists surveyed by Reuters.

Personal income and consumption, Monday, should move higher in May. Consumer confidence, on Tuesday by the Conference Board, predicted a reading of 60.5 June, just a touch less than 60.8 may, a survey Reuters showed. Despite a recent string of weak data in may, a sharp decline in crude oil prices is expected to buoy the confidence of consumers.

(Reporting by Rodrigo Campos;) Other reports by Edward Krudy; (Editing by Jan Paschal)

Bulls ready to charge into the wall of worry

Traders work on the floor of the New York Stock Exchange on June 10, 2011.

Credit: Reuters/Brendan McDermidBy Rodrigo Campos

NEW YORK | Sun June 26, 2011 12: 13 EDT

NEW YORK (Reuters) - a rebound may be maps for stocks this week as the bulls of defending a level key technical and portfolio managers buy winners of the quarter to support their books.

But earnings from defensive staples or other areas health care which exceeded the market in recent months only support the notion that the US stock market should complete its phase of correction and panic sale must be done before a more sustained return develops.

"We want to see more fear," said Ari Wald, strategist of fairness to Brown Brothers Harriman in New York.

Be careful that your desires.

The problems that have led the recent decline, including the slow March of the Greece to default on its debt, weak U.S. economic data and the rampant due to lift the ceiling of the U.S. debt, are far from resolved.

HOLDING THE 200 DAYS SHOWS THE WAY

Despite a drop in dragging the & S P 500 as 8.2% below its high success three years in early may, the index held above its 200-day moving average - a line in the sand as the bears and bulls major battle for control of market.

The slide had been telegram for the weeks and the performance by the market book - folding to a widely followed level - seems too well choreography to some analysts.

"The fact that we went 200-days... seems just a little too perfect,"said Marc Pado, U.S. Cantor Fitzgerald & Co in San Francisco market strategist.""

He said that the timing of the move was favourable, as the market creates a technical basis before resuming its move upward on the back of solid gains.

"You might get an attempt of a move of dust," said Pado. "But the majority is sometimes right."

Even if they are right, they seem not too convinced. So far in this quarter - being the first in the red for the S & P 500 in the last year, daily volume on the New York Stock Exchange, NYSE Amex and Nasdaq has average 7.22 billion shares.

It is to the bottom of the actions 7.94 billions of dollars traded every day during the first quarter, when the & S P 500 won 5.4%. Commitment to the market decreased. Frantic selling, flush to the bottom of the day traders appears to be absent up to now in this corrective phase.

Despite the holding above this level, the market has not removed the danger zone of dipping in its 200-day average. The curve has a steep slope, the & S P 500 took about two years to check an advance of 100 per cent of its March 2009 low.

The 200 day moving average is$ 1,263.47, less than 0.4% below the S & P 500 Friday closing.

"Whenever you test a resistance or support level, make you smaller," said Nicholas Colas, chief strategist of the New York ConvergEx Group market. "It's almost like a piece of metal." Each time that you hit, it grows more fragile, and that is why people are really concerned about the third or fourth time. »

After three consecutive days of decline, the & S P 500 declined 0.24% for the week and finished Friday at 1, 268. 45 - its seventh decline in the last eight weeks.

Dow industrial lost 0.58% for the week, closing Friday at 11,934.58, so that the Composite Nasdaq rose 1.39% for the week to end the 2,652.89. The Nasdaq is only slightly higher for the year, while the Dow and the S & P 500 both are still solidly in the black for 2011.

The next two weeks before the start of serious, quarterly earnings season may be marked by wild swings as those recently considered. Thursday, after a title to the Greece market, the & S P 500 posted his return stronger in almost a year, the days where the reference point fell more than 1%.

Its session low Thursday, the & S P 500 climbed more than 20 points in the fence. Swing covered Dow 233.79 points from its low intraday high session Thursday.

But buying interest waned Friday. Doubts about the transition to the Parliament in Athens of higher taxes and service cuts, weak Italian banks are also scaring investors.

The Federal Reserve on Wednesday gave a bleak outlook on the economy, down its forecast of growth of GDP in 2011 and 2012. And Chairman of the Fed Chairman Ben Bernanke has found it difficult to explain the sources of a said economic "soft patch" which seems to have become ubiquitous.

SUMMER STORM DATA

Also the weekly numbers of claims without employment, housing and manufacturing data will attract the most attention this week.

The index of S & P Case-Shiller April home prices Tuesday and the National Association of Realtors can index sale House Wednesday awaiting could confirm double dip of the housing market.

Activity of the plant grew in May to its slower pace since September 2009, according to the Institute for supply management, and Friday June ISM number should fall to 51.9, indicating a still slower rate of growth.

New applications for unemployment Thursday are expected to land over 400 000 for a 12th consecutive week, according to economists surveyed by Reuters.

Personal income and consumption, Monday, should move higher in May. Consumer confidence, on Tuesday by the Conference Board, predicted a reading of 60.5 June, just a touch less than 60.8 may, a survey Reuters showed. Despite a recent string of weak data in may, a sharp decline in crude oil prices is expected to buoy the confidence of consumers.

(Reporting by Rodrigo Campos;) Other reports by Edward Krudy; (Editing by Jan Paschal)