philip markoff

MISTER MARKET/BAD DAY OR BLOOM OFF THE ROSE?-The Dow Jones lost some 290 points today, about 3.5% of its value, to close at 7842. Pulling the market downward? The same stocks that have recently been pushing the market upward: banks. Bank of America was the latest bank to report a 1st quarter profit, saying this morning that they made $4.2 billion in the 1st quarter. BofA joins Wells Fargo, JP Morgan Chase and Citicorp in announcing 1st quarter profits that handily beat analysts’ projections.

So what’s the problem? Dan Harris reported for WORLD NEWS tonight that “specifically what spooked investors today was a warning from Bank of America…that even though they posted a $4.2 billion profit, it’s setting aside $13.4 billion to cover loans that could go sour in the coming months…a clear sign that the credit crisis is not over.” The renewed worries about banks' debt problems were aggravated by news reports that their lending remains tight and that the government may swap its debt in banks for ownership stakes as its $700 billion bailout fund runs down.

Because of the central role lending plays in keeping businesses of all kinds going, investors have been hunting for signs of a recovery in banks before they get more optimistic about the broader economy. As Hugh Johnson noted in Harris’ WORLD NEWS piece, “We have an economy that grows on money and credit and unless banks start to increase their lending it’s hard to make the case that there’s going to be a recovery in the economy.” The Treasury Department will outline Friday how it plans to structure the stress tests, which aim to gauge the health of 19 big banks. Those results are due on or around May 4th.

In the interim, reports Harris, “many investors are expecting the market to be down for the coming days…(until we) see how healthy the major banks really are.” CRAIGSLIST SUSPECT IN CUSTODY: Boston authorities have apprehended a man they say is connected to the assault of a lap dancer at a Boston hotel last week, and possibly two other attacks. Police have arrested Philip Markoff, 22, of Quincy, MA. Markoff has been charged in the murder of Julissa Brisban and the assault on a woman last week at a Boston hotel.

The Boston University student was taken into custody at 4pm this afternoon after being stopped by authorities on Route 95 in Warpole, MA. He had no prior criminal record. Authorities said they found him through ‘technical means’ and ‘physical evidence’, and he had also been under surveillance. Markoff will be arraigned in Boston Municipal court Tuesday morning. (thanks to Marisa Bramwell for this entry)

OBAMA VISITS THE CIA/”YOU’VE GOT A HARDER JOB TO DO AND SO DO I”-Last Thursday’s release of the controversial Justice Department memos discussing the legality of certain CIA interrogation techniques once again shed light on the CIA where they didn’t necessarily need (or want) it. It was not a decision taken lightly-Jake Tapper noted tonight on WORLD NEWS that “sources close to (President Obama) say the hardest decision (he’s had to make so far) was his decision to release (those) memos.”

So today’s visit to the CIA by President Obama was seen as both a chance for the President to explain his reasoning and a chance to deliver a “pep talk”, as Jake Tapper noted. Let’s start with his reasoning-Tapper: “The President says American values and ideals must be upheld even under the fear and threat of terrorism.” As for the pep talk, President Obama seemed to hit the nail on the head when discussing the frustrations of working for a security agency. Obama: “What makes (your job) tougher is when you succeed, as you so often do, that success usually has to stay secret. So you don’t get credit when things go good, but you sure get some blame when things don’t.”

Obama also told the assembled group: “We will protect your identities and your security as you vigorously pursue your missions. I will be as vigorous in protecting you, as you are vigorous in protecting the American people.”

OBAMA/NOT GEORGE W’S FOREIGN POLICY-President Obama’s recent trip to the Summit of the Americas has brought a good deal of criticism on the Administration for ‘engaging” with U.S. critics like Venezuela’s Hugo Chavez during the summit. As Martha Raddatz notes though, “it should not be a surprise that President Obama is reaching out to friend and foe..after promising a stark change." Raddatz goes down the list:

“In just the first 90 days, he has reached out to the Iranian people, Muslims and the Russians.” While the jury’s still out on what those moves have changed, there’s no disputing the change with Cuba. Raddatz: “Lifting a half century of restrictions on Cuban Americans, a move that prompted Cuban President Raul Castro to excitedly declare he would now talk about “everything, everything, everything” with President Obama.” One glaring failure so far-North Korea. Raddatz: “(President Obama)’s reaction to the recent missile launch showed echoes from the Bush Administration…stern words and a UN Security Council condemnation..that have done little good. “
DEAD POLO HORSES-The sudden death of 21 polo horses at the U.S. Open Polo Championship in Palm Beach County, Florida shortly before the event began yesterday has perplexed veterinarians. Sharyn Alfonsi filing for WORLD NEWS sets the scene: “The horses belonged to the Venezuelan-owned team Lechuza Caracas and had not shown any signs of illness. But when handlers went to off-load the horses at the stadium, investigators say ‘some of the animals were dead’ and the others-struggled to breathe and stand. Vets rushed to help but one by one the horses collapsed. 14 died on Sunday 7 more overnight.” Several theories as to what killed the horses are out there and each has found critics to refute the possibility. Alfonsi notes that “state labs are now running tests on the animals trying to solve the mystery of what killed so many horses so fast.” OTHER STUFF--GAS PRICES-The price you paid at the pump last week was the highest price paid in 2009. The national price for regular unleaded rose 0.8 cent to an average of $2.06 a gallon, the highest level in five months, but it is still down $1.45 from a year ago, the department's Energy Information Administration said in its weekly survey of service stations. Pump prices are expected to rise another 20 cents for this summer, with drivers expected to pay an average $2.23 a gallon for the season, according to the EIA's forecast. That's much cheaper than the record $4.11 hit last July or last summer's average pump price of $3.81 a gallon.--FOUR CORNERS (NOT)-Maybe they can call it Four Corners Adjacent.

National Geodetic Survey officials say the Four Corners marker showing the intersection of Arizona, Colorado, New Mexico and Utah is about 2.5 miles west of where it should be. The only place in the United States where four state boundaries come together was first surveyed by the government in 1868 during the initial survey of Colorado's southern boundary. Apparently the survey was inaccurate.

TUESDAY—--SOMALI PIRATE IN NY FEDERAL COURT—ayem-The lone surviving Somali pirate from the kidnapping of Maertz Alabama Captain Richard Phillips will be arraigned in NY federal court tomorrow morning. --SUPREME COURT - STRIP SEARCH: In 2003 a 13 year-old Arizona school girl was stripped searched by school officials looking for a banned substance (ibuprofen) another student had accused her of possessing. They found nothing. She sued the school district and won. The lower court said that "common sense informs that directing a 13 year-old girl to remove her clothes, partially revealing her breasts and pelvic area, for allegedly possessing ibuprofen … was excessively intrusive."

The school district has appealed and the Supreme Court has agreed to hear the case (likely sometime in April.) Some have argued that students should have the same constitutional rights as adults, but some educators argue that schools should be treated differently. They say that a ruling against them could jeopardize campus safety. Jan Crawford Greenburg has a preview piece to air day of arguments for GMA. (Dennis Powell) --SERVE AMERICA LEGISLATION—4pm ET-- Tomorrow President Obama will appear with former President Bill Clinton and Senator Kennedy to sign the “Edward M. Kennedy Serve America Act.”

The act creates new service opportunities aimed at growing the number of volunteers nation-wide and focuses on providing incentives for middle and high school students to engage in service. At the 4 pm event held at the SEED school in Washington, DC Senator Kennedy will introduce the President who will then make remarks on national service before signing the legislation