Gloomy jobs outlook, U.S. sues banks and more news

Failure of the U.S. economy to add any jobs during August make recession worries harder to sweep away.

The news tanked stock markets, although a Labor Department survey of senior executives indicates many plan to hire soon and so far are not swayed by recent stock volatility.

The lacklustre job report increases pressure on the Obama Administration to present some sort of plan to create at least short-term employment for unemployed and underemployed Americans, even if the president has to use executive order authority to bypass Congress.

Obama may not have to try too hard, though, if one Senator’s hairy prediction about how many jobs could be created by a bill to reauthorize funding for the Federal Aviation Administration comes true.

Meanwhile, it’s emerged the Federal Housing Finance Agency will be filing a lawsuit against some of the country’s largest mortgage lenders, alleging poor disclosure and other faults in the packaging of bad loans.

Some pundits predict this will spark a court clogging stream of lawsuits from anyone who ever took out a bum home loan. The news came on the same day Goldman Sachs announced it had completed the sale of its mortgage origination business.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.