Lunchtime reading - 11:55AM

Morgan Stanley Sets Aside 72% of Revenue for Employees’ Pay - Bloomberg CIT Hit With Interest Rate More Than 25 Times Libor (Update2) - Bloomberg Wells Fargo’s Bad Loans Rise in Quarter; Shares Drop (Update2) - Bloomberg Morgan Stanley Loss Misses Estimates on Debt Costs (Update2) - Bloomberg Week-to-week mortgage filings up 2.8% as rates rise: MBA - MarketWatch Whirlpool shares off 10% as profit falls on weaker demand - MarketWatch Apple smashes profit forecasts, iPhone shines - Reuters

CIT in talks with Goldman and another Wall Street bank for financing - 12:50PM

Reported on CNBC but no details as of yet. I will post them when I can find some.

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Update - 1:17 CIT soars on report of financing talks with banks - from MarketWatch SAN FRANCISCO (MarketWatch) -- CIT Group Inc. (CIT 0.90, +0.49, +119.51%) shares soared during Friday afternoon trading after Reuters reported that the troubled lender is in talks with J.P. Morgan Chase (JPM 36.61, +0.48, +1.32%) and Goldman Sachs (GS 156.09, -0.75, -0.48%) for short-term financing of $2 billion to $3 billion. CIT shares jumped 40 cents to 81 cents in afternoon action on Friday. A CIT spokesman didn't immediately respond to a phone call and email seeking comment.

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Good, taxpayers have done enough of the bailouts, JPM and GS have plenty of our money.

Now Roubini sees green shoots - who got to him? - plus other reading material - 2:50

I have always read Roubini, and thought he told it like it was. As time went on, we find out he had some sort of deal with Larry Summers. About the time we found that out, he changed his tune. I'm not ready to call him a trader, but close. U.S. Stocks Rise as Roubini Predicts Recession to End This Year - Bloomberg ****Let me just add, CNBC is now talking about how Roubini moved the market. Roubini has been absent from CNBC for quite some time. Why? Because he might not talk about green shoots. Lately they have been mocking and laughing at him. Now, they are touting his latest prognostication. CNBC, your pathetic, and getting worse by the day. This helps prove you are not a business channel, but a comedy of liars. But just now from Reuters - U.S. may need another fiscal stimulus: Roubini CIT Group’s Bondholders Said to Discuss Debt Swap - Bloomberg Nokia posts 66% drop in second-quarter profit - Sony Ericsson swings to a loss as sales plunge 40% - MarketWatch Cisco cutting up to 700 employees at headquarters - MarketWatch Key U.S. factory index slips, jobless claims tumble - Reuters Here's the original call by CNBC - before that gets full too.

Goldman Sachs - Monster Quarter - 8:45AM

Shocked? Not me, I expected this. When you are in bed with the government, and their bailout money, who wouldn't make a profit? From MarketWatch By Greg Morcroft NEW YORK (MarketWatch) -- Goldman Sachs Group Inc said on Tuesday that its second quarter net income rose to $3.44 billion, or $4.93 a share, compared to $2.05 billion, or $4.58 a share a year ago. Analysts polled by Thomson Reuters had expected the company to earn $3.54 a share in the quarter. Net revenues at the firm were $13.76 billion in the second quarter, compared to $9.42 billion last year. Goldman switched from a fiscal reporting schedule to a calendar schedule last year, and this year's second quarter ended in June, while the year ago data is for the period ended May 31, 2008.

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We also have this: CIT Group, which gives credit to many businesses is having a hard time recently: As their chart shows, they have been dropping quite severely, but the last two days have been really bad. But, not to worry, from Bloomberg we see this - CIT Rises on ‘Active’ Talks for U.S. Aid Before Debt Maturity - really? From the article - July 14 (Bloomberg) -- CIT Group Inc. rose in European trading after the corporate lender said it’s in “active discussions” with regulators about a rescue before $1 billion of bonds mature next month. ANOTHER RESCUSE/BAILOUT? Screw that, we the taxpayers have given these damn financial companies enough money. Here's an idea - LET GOLDMAN SACHS BAIL THEIR ASS OUT. By the way, they are up over 18 percent pre-market. Investors (cough, cough) ready to jump on the government backed gravy train. Err...I mean taxpayer backed gravy train. The robbing and pillaging continues.