Media Digest 8/6/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Freddie Mac (FRE) now has a negative net worth which means some investors think it should trade close to zero.

Reuters writes that AIG (AIG) posted a huge loss of over $5 billion on bad mortgage bets.

Reuters reports that Carl Icahn has joined the Yahoo! (YHOO) board and will begin to pressure the company to make a transaction.

Reuters writes that McDonald’s (MCD) may have to raise more prices.

Reuters reports that high oil prices are causing significant changes in consumer behavior.

Reuters reports the the fiscal 2008 US budget has a $400 billion deficit.

The Wall Street Journal writes that Chrysler and Nissan may team up to make mid-sized cars.

The Wall Street Journal reports that mortgages issued in the first half of 2007 are going bad much faster than those issued in 2006.

The Wall Street Journal reports that Barclay’s (BCS) net fell 35%.

The Wall Street Journal reports that Citigroup’s (C) deal to repay auction-rate securiteis customers may pressure other banks to do the same.

The Wall Street Journal reports that AOL remains a sticking point for Time Warner (TWX) earnings.

The Wall Street Journal reports that Sprint (S) posted a large loss.

The Wall Street Journal writes that GM (GM) is pressuring its ad agencies on costs.

The Wall Street Journal writes that Connecticut sued Countrywide for deceptive lending practices.

The Wall Street Journal reports that GM’s (GM) directors said they stand behind CEO Rick Wagoner.

The FT writes that large banks are seeking changes in the derivatives business to limit risks in the future.

Bloomberg reports that Toyota’s TM) net dropped by the largest amount in five years.

Douglas A. McIntyre