President Barack Obama formally launched a $75 billion-plus program to assist struggling homeowners today. The package of measures, unveiled last month, could help as many as 9 million homeowners, says the Administration. The plan has two main components: a scheme to induce lenders to modify loan terms for up to 4 million homeowners, and another to refinance up to 5 million homeowners with little equity in their homes into more affordable fixed-rate loans.

The promised relief comes not a minute too soon for millions of Americans. More than 8.3 million U.S. mortgages, or 20% of all mortgaged properties, were saddled with negative equity at the end of 2008, according to a Mar. 4 report from LoanPerformance, a company that tracks mortgage data.

Source: Washington Post, BusinessWeek

GE’s Stock Plummets

Shares of General Electric fell below $6 on Mar. 4, for the first time since December 1991. The stock plunged as much as 18% today as concerns mounted that the finance unit may require a capital infusion. In an email message to investors the company labeled such rumors pure speculation. Fears that GE may soon be stripped of its prized AAA debt rating have also weighed on the stock.

Source: Bloomberg

Nearly 700,000 U.S. Jobs Wiped Out in February

Companies cut 697,000 jobs in the U.S. in February, according to a Mar. 4 report by ADP Employer Services. The ADP report, which encompasses only non-farm private-sector jobs, is being closely scrutinized ahead of the release of the government’s more complete set of figures on Friday.

Source: Wall Street Journal

A Sign of Hope for China

China’s closely watched index of manufacturing activity edged up in February, fueling speculation that the economy may have seen the worst of the downturn. The official purchasing managers’ index rose to 49 in February, from 45.3 in January and a low of 38.8 in November (a reading below 50% indicates a contraction). The improvement may have been due in part to a technical rebound, but still underlines the resilience of the Chinese economy. Chinese Premier Wen Jiabao is soon expected to announce another round of stimulus measures, adding to a $585 billion spending.

Source: New York Times, Bloomberg

GM Calls for EU Aid

General Motors warned that its European arm could run out of money as early as next month, putting up to 300,000 jobs at risk, if emergency funds from European countries did not materialize. Drawing a direct line between its pleas for government aid and possible factory closures, GM estimated that its excess capacity in the continent stood at 30%, or three plants too many.

Source: Financial Times

Tighter H-1B Oversight Worries Tech Employers

The federal government’s tightening oversight of a controversial visa program that allows companies to bring in skilled workers from overseas could make it more difficult for U.S. companies to hire talented foreign workers. Tech giants such as Microsoft, Oracle, and IBM have been active participants in the program known as H-1B visas.

Source: BusinessWeek

Merrill’s $10 Million Earners

Although Merrill Lynch’s net loss ballooned to $27.6 billion in 2008, its top investment banker Andrea Orcel was paid $33.8 million in cash and stock, just shy of his pay in 2007. A group of 11 top executives received more than $10 million in cash and stock last year, and an additional 149 received $3 million or more, according to people familiar with the situation.

Source: Wall Street Journal

Amazon Brings Kindle Application for iPhone

The owner of an iPhone or iPod Touch will be able to read the same electronic books offered by Amozon.com even without the latest $359 Kindle reader from the Seattle-based online retailer. In a bid to increase its slice of the e-book market, Amazon plans to roll out a free program that brings several of the Kindle’s functions to the Apple devices. The program can be downloaded from Apple’s online application store.

Source: Associated Press

UBS Chairman Resigns

UBS says its embattled Chairman Peter Kurer will step down. The board of the Switzerland’s largest bank nominated former Finance Minister Kaspar Villiger to replace Kurer after one year amid a probe into whether it helped wealthy Americans evade taxes. UBS is being sued by the U.S. to force disclosure of as many as 52,000 client names, after agreeing last month to hand out details of as many as 300 clients to avoid prosecution in a criminal case.

Source: MarketWatch, Bloomberg

In Your Face: DEPRESSED U.S. CITIES

Reader SweetLou Writes: “I’m willing to bet that the population of every city on this list has about 1% whiners who would find something to be unhappy about in Eden.”

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