Media Digest 9/18/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Citigroup (C) is considering buying Washington Mutual (WM).

Reuters reports that US markets rallied on word of a potential plan for the government to take over the toxic assets of banks.

Reuters reports that a possible merger of Wachovia (WB) and Morgan Stanley (MS) raises questions because of liabilities on the big bank’s balance sheet.

Reuters reports that Freddie Mac (FRE) says that Lehman (LEH) owes it more than $1.2 billion.

Reuters reports the the new head of AIG (AIG) see a smaller, more agile firm in the future.

Reuters reports that the SEC may further tighten rules on short selling as the UK banned all short selling  of financial shares.

Reuters reports that over the last week banks borrowed an average of $48 billion a day from the Fed.

The Wall Street Journal says that Morgan Stanley chief John Mack went on the offensive lobbying the government on intervention and a curb on short sales.

The Wall Street Journal reports that Warren Buffett’s operations will buy troubled energy firm Constellation.

The Wall Street Journal says that NY attorney general Cuomo will target short sellers in a probe.

The Wall Street Journal reports that database sales lifted earnings at Oracle (ORCL).

The Wall Street Journal reports that GM (GM) dropped plans for a new crossover in favor of marketing a smaller sedan.

The Wall Street Journal reports the the SEC may put a temporary ban on short selling.

The Wall Street Journal reports that the US may no longer be considered a financial safe haven for foreign investors.

The Wall Street Journal reports that earnings at Palm (PALM) were negative but revenue rose.

The New York Times writes that Putnam closed a $15 billion fund due to withdrawals.

The New York Times writes that foreign sovereign funds are backing away from investments in financial firms.

The New York Times writes that Russia will buy stocks to stop the financial slide in that country.

The New York Times reports that the House is backing a bill to curb oil speculation.

The FT reports that Moody’s has increased its projections for losses on residential mortgage-backed securities.

Douglas A. McIntyre