Monday morning headlines

Stocks tumble: This could really be bad. The Dow is now down more than 500 points.

Oil tumbles: It's hovering around $90 a barrel, largely on concerns about a global recession.

Countrywide settlement: Bank of America, which now owns the Calabasas-based mortgage giant, agreed to shell out as much as $8.4 billion to modify loans in 11 states, including California. As many as 400,000 homeowners nationwide could be affected, though it's unclear how much of a break will be offered. Up to now, lenders have been reluctant to adjust loans. The cost will be shared by B of A and investors who have ties to Countrywide mortgages. (WSJ, LAT, NYT). Here's Jerry Brown's comment:

“Countrywide’s greed turned the American dream into a nightmare for thousands of Californians who now face foreclosure,” said Jerry Brown, the attorney general of California. He led the negotiations for the states with Lisa Madigan, the Illinois attorney general. “Our goal here is to help as many people stay in their homes as possible and get some compensation for those who have already been pushed out of their homes,” he said.

Seeking Wachovia deal: The feds are trying to work out a compromise in the battle being waged by Wells Fargo and Citigroup for control of Wachovia. One idea would have Wells and Citi divvy up Wachovia branches along geographic lines, with Citigroup getting the Northeast and mid-Atlantic and Wells Fargo taking the Southeast and California. The plans being discussed don't involve any sort of federal assistance, reports the WSJ. More talks are expected this morning.

Even as negotiations to split up Wachovia were proceeding, lawyers for Wachovia and Citigroup were sparring in court over the validity of an "exclusivity agreement" Wachovia had signed when it agreed to sell its banking business to Citigroup for $2.1 billion. A New York state appeals court Sunday night reversed a lower-court ruling from the day before that had extended the expiration of that agreement to Friday from Monday.

IndyMac regulator: Bet you never heard of Darrel Dochow. He was the federal regulator in charge of IndyMac and attention is now being paid to his role in the failure of the Pasadena-based bank. It just so happens that Dochow was head of regulation at the Federal Home Loan Bank Board when Lincoln Savings & Loan of Irvine failed (he was relieved of his high-level duties). From the LAT:

Regulators at the Office of Thrift Supervision, the successor agency to the federal bank board, have blamed Sen. Charles E. Schumer (D-N.Y.) for pushing the bank over the edge by disclosing a critical letter he had written that may have triggered the run on deposits and derailed an effort by regulators to arrange a private sale or bailout. But a closer look also shows that officials ignored warning signs, former regulators say, allowing IndyMac to continue operations despite growing questions about its viability. The bank is now expected to cost the federal insurance fund nearly $9 billion, up from initial government estimates of $4 billion to $8 billion. Had the regulators intervened sooner, that price tag would probably have been substantially less.

Crisis impacts philanthropy: Lots of concern among local nonprofits about the losses being piled up by Eli Broad and other local billionaires. From the LABJ:

Even worse, philanthropic capital is drying up at the same time social service-oriented non-profits need more help to fulfill their mission to help the poor and at-risk. “The needs are greater when the supply of philanthropic capital will be lower,” said Katherina Rosqueta, executive director of the Center for High-Impact Philanthropy at the University of Pennsylvania. “People start doing triage with their philanthropy.”

SAG, AFTRTA cut deal: The two actors' unions will conduct joint negotiations for the upcoming commercials contract, perhaps the first step in reestablishing peaceful relations. You may recall that AFTRA negotiators split off from SAG during the primetime contract talks. The commercials contract has been put off until March 31. (Variety)

Seems like old times: To celebrate its 100th anniversary, Phillipe the Original is rolling back prices on its classic French dipped sandwich. Between 4 p.m. and 8 p.m., French dips will be going for 10 cents and a cup of joe will be 5 cents. The morning TV hairdos are all over it.