Weil's View on Finance, Afternoon Edition
Hello, View fans. The day wouldn't be complete without afternoon links. So here you go.
No eminent domain for underwater mortgages in this city
The city council in North Las Vegas, Nevada, unanimously rejected a plan to seize mortgages for residents who owe more than their homes are worth. The plan under consideration was similar to one being pursued by Richmond, California. The Las Vegas Review-Journal has a good recap.
Money-market funds still vulnerable to another Lehman moment
A year after Securities and Exchange Commission Chairman Mary Schapiro gave up on her proposal to make money-market funds safer, there is still no consensus on what to do about them. The industry is as vulnerable to runs by investors as it was when the Reserve Primary Fund broke the buck five years ago after Lehman Brothers collapsed. Dave Michaels and Christopher Condon of Bloomberg News chronicle the lobbying battles.
It's official: Larry Summers is Barack Obama's preference to become the next Federal Reserve chief. New York Times reporter Jackie Calmes said so. The hard part is figuring out how to avoid a nasty battle in the Senate, where some Democrats view him as too friendly to big banks. Dan Kervick laid out the case against Summers earlier this week on his blog Rugged Egalitarianism.
Not so fast on Europe's recovery
Ambrose Evans-Pritchard of the U.K.'s Telegraph writes that Europe has begun to stabilize, but has not recovered: "The complacency of those dictating Euroland's policies -- though not its victims -- is breathtaking." He's always worth reading.
Never a good sign when your favorite Greek yogurt hisses at you
Chobani is officially doing a recall. From Gothamist: "Chobani eaters had been taking to the company's Facebook page to report cups that were `ready to explode' and yogurt that tasted like it had been `mixed with bitter seltzer, fizz or pop rocks.'" Good thing I switched to Fage a few months ago.
(Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter.)