The bottom line
Consumer prices drop; Citigroup prepares for financial reform; Nook and Kindle go to war; Feds investigate housing scams in Nevada; Goldman Sachs' new scourge
Consumer prices drop
Consumer prices fell 0.2 percent in May, led by falling costs for food and energy. The drop is squeezing many consumer-goods companies, whose costs are still rising.
The Wall Street Journal
Citigroup prepares for financial reform
Despite looming prohibitions on speculative trading by commercial banks, Citigroup is raising $3.25 billion for two private investment funds, suggesting that Citi believes the trading limits will have plenty of loopholes.
Nook and Kindle go to war
Barnes & Noble has cut the price on its Nook electronic reader to $199 from $259, undercutting Amazon’s category-leading Kindle. Both readers come with 3G and Wi-Fi connectivity. Amazon promptly cut the Kindle’s price to $189.
The Boston Globe
Feds investigate housing scams in Nevada
Since March 1, a federal mortgage fraud investigation in Nevada known as Operation Stolen Dreams has resulted in 123 charges or convictions. Most scams involved using “straw buyers” to quickly “flip” houses to send their prices soaring. The scammers then took out fraudulent loans based on the inflated values.
Goldman Sachs' new scourge
As if being hammered daily in the press weren’t bad enough, Goldman Sachs is now dealing with a new scourge: bedbugs. Employees at the investment bank’s Jersey City office tower had to summon exterminators because bedbugs had infested rugs, chairs, and even walls.