Tuesday morning headlines

Countrywide needs money: The NY Post is reporting that another multi-billion dollar bailout plan may be in the works for the nation's largest home lender. Sources told the newspaper that J.P. Morgan and Citigroup could be involved, as well as several hedge funds. This would indicate that Bank of America's $2 billion infusion last month isn't enough to stem the bleeding. "Countrywide is in desperate need of cash right now to continue funding mortgages and the credit markets are still largely closed to them," one source told the Post. All of which is bound to raise questions about the wisdom of B of A's investment. From Deal Journal:

Should the worst-case scenario come true for Countrywide, BofA would have the right to buy a mortgage business it has always coveted. But the BofA deal, struck when Countrywide stock was at about $22, gave the Charlotte, N.C., bank the right to essentially buy the stock at $18. Even that option is now under water. This BreakingViews column at the time perhaps sagely pointed out similarities between Lewis’ Countrywide move and Warren Buffett’s Salomon Brothers investment in the late 1980s. Hailed as a conquering hero at the time, the Oracle of Omaha ended up getting a big headache from that deal.

CEOs are selling: An analysis by Financial Week shows that they dumped sizable chunks of stock while buybacks were going on. In most cases, the size of those sales dwarfed their stock sales in the 12 months before the buybacks were announced. To be fair, much of the selling involved stock options that were expiring. That was the case with Disney’s Robert Iger, who has sold $41.6 million in stock since the company announced its $10.2 billion buyback in early 2006.

Buybacks are supposed to increase shareholder value, because they send a signal to the market that the stock is undervalued. But they also typically provide a pop in the stock price, noted Rob Leiphart, an analyst with Birinyi Associates, which tracks buybacks. While it’s perfectly legit to sell stock into a buyback, CEOs who sell could be taking advantage of that boost in the share price. George Muzea, founder and president of Muzea Insider Consulting Services in Reno, Nev., a firm that monitors insider trading for institutions, said that to prevent this kind of behavior, companies could prohibit insiders from selling stock for a certain period after a buyback is announced.

Health premiums soar: Workers and their employers have seen payments increase an average of 6.1 percent this year, outpacing inflation and pay increases. Insurance costs probably will rise again next year, according to the survey by the Kaiser Family Foundation. Many of the more than 3,000 companies surveyed said they were very or somewhat likely to raise premiums. "It just shows health insurance is becoming increasingly unaffordable for working people and many businesses in our country," said Drew Altman, the foundation's president and CEO. (AP)

Relief in California? Don't bet on it. Gov. Arnold Schwarzenegger's plan for universal statewide health-care coverage is in trouble. He can't get Republican lawmakers on board and Democrats aren't happy because of its mandate requiring everyone without employer insurance to buy individual coverage. The Legislature passed a Democratic plan on Monday, but the governor announced he would veto it and call a special session this fall to work out a compromise. Good luck. (LAT)

Nurses rally: Hundreds of members of the California Nurses Association marched on the Capitol and pledge to continue to campaign for universal healthcare coverage. From the LAT:

Nurses have come a long way since the late 1980s, when hospitals were laying them off in droves to cut costs amid the managed-care revolution. Factions of frustrated, change-seeking nurses broke away from professional associations in California and elsewhere to form collective bargaining units. Their unions continue to grow even as organized labor is in critical care. In labor's heyday, more than one-third of all U.S. workers, almost all of them blue collar and male, belonged to unions. Today, about one in eight workers carries a union card. Among the largely female ranks of nurses, however, the figure is closer to one in five.

Boycott on Western Union:More than 150 immigrant advocacy groups accuse the money-transfer company of charging exorbitant fees while failing to adequately reinvest in immigrant communities. This is a big issue in Socal, where Latinos depend on electronic transfers to send money for food, medical care and education to their families back home. Western Union said its rates were in line with similar money-wiring services. (LAT)

Energy update: OPEC ministers will probably raise production quotas, which should ease concerns around the globe about rising energy demand in the fourth quarter. (Forbes) Here at home, the average price of gas went up almost 7 cents a gallon, according to the government's latest survey. (EIA)

Port still polluted: Pollution from ships, trains and trucks at the Port of Long Beach jumped by between 11 and 15 percent, according to a study that covers the period between 2002 and 2005. The number would probably have been higher if not for the increased use of cleaner fuels and new engines. Of special concern is the rise in diesel particulate matter, which can get into your lungs. (Press-Telegram)

Lacter on radio: This morning's business chat with KPCC's Steve Julian covers the plunge in home sales, Countrywide's role in the credit crunch, and fast food restaurants in South L.A.