U.S. stocks decline as firms detail Madoff exposure

Date: Mon, 15 Dec 2008 17:01:41 -0500

U.S. stocks decline as firms detail Madoff exposure

U.S. stocks fall, with financial shares weighing on the broader market
as firms detailed their exposure to the alleged $50 billion fraud by
Bernard Madoff.

MADOFF ARREST RAISES QUESTIONS ABOUT SEC OVERSIGHT

The arrest of investment manager Bernard Madoff on allegations that he
ran a $50 billion "Ponzi scheme" raises questions about the
effectiveness of the Securities and Exchange Commission's oversight of
the $1.5 trillion hedge-fund industry.

THE FED: FED IS COMING TO THE END OF THE LINE ON RATE CUTS

The Federal Reserve is likely to cut the federal funds rate as low as
it can go at this week's meeting, and to begin shifting its focus to
nontraditional policies.

EUROPEAN BANKS REVEAL EXPOSURES TO ALLEGED MADOFF FRAUD

European and Asian banks reveal billion of dollars of exposure to
Bernard Madoff and his alleged ponzi scheme, with customers of Spain's
Santander potentially facing some of the biggest losses.

STATE BUDGETS EXPECTED TO DROP FOR FIRST TIME IN A GENERATION

States will experience a bleak fiscal 2009, a new report says, with
spending expected to decrease for the first time since 1983 and budget
cuts to follow in coming fiscal years.