U.S. Stocks Decline on Concern SEC Plan Will Hurt Broker Profit

[flashl]

May 7 (Bloomberg) -- U.S. stocks declined the most in a month, led by financial shares, on concern new disclosure requirements for investment banks will limit their profits.

Merrill Lynch & Co. and Lehman Brothers Holdings Inc. sent brokerages and lenders to their biggest tumble since March after the Securities and Exchange Commission said it will require Wall Street firms to disclose capital and liquidity levels. Fourteen of 15 homebuilders in Standard & Poor's indexes fell on a National Association of Realtors report that fewer Americans bought previously owned homes in March. United Parcel Service Inc. led a drop in all 10 transportation companies in the S&P 500 as oil climbed to a record above $123 a barrel.

...

"The market is obviously worried about what will be disclosed,'' said Janna Sampson, co-chief investment officer at Lisle, Illinois-based Oakbrook Investments LLC, which oversees about $1.4 billion. "From an investor's perspective, you want to know the firm you are invested in has a strong capital standing. Why these firms wouldn't disclose this data is a mystery.''

'Lessons Learned'

The SEC requirement comes after speculation about a cash shortage at Bear Stearns Cos. triggered a run on the firm.

"One of the lessons learned from the Bear Stearns experience is that in a crisis of confidence, there is great need for reliable, current information about capital and liquidity,'' SEC Chairman Christopher Cox told reporters in Washington today. "Making that information public can certainly help.''

Bloomberg

[DemocratInSoCal]

1. OHHHH NOOOOOOO......FUCKING NOOOOO!!! NOT THE TRUTH!!! nt

[On the Road]

2. Should be Good News for Everyone

except financial companies hiding risk and other bad news. Strange reaction from the market.

[Warpy]

3. Bullshit. Stocks dropped on oil heading to $125 tomorrow

and the report that Americans sank a lot more into debt than any of the experts had predicted, pampered, disconnected saps that the experts usually are.

[screembloodymurder]

4. I agree, but ...

why is the dollar rising? I'm stumped.

[Warpy]

5. The dollar is rising because central bankers have been

convinced by the Bear Stearns buyout that all their funny paper backed up by nothing but bum loans in California, Florida and selected big cities out west will be guaranteed. They've forgotten for the time being that the country is nearly bankrupt and that it has insufficient industry to back up even its weakened currency.

Reality will set back in sooner or later.