Atlantic Business Channel

Joshua Green

Recently by Joshua Green

Jun 30 2009, 5:49PM

Is Oracle In The Justice Department's Crosshairs Again?

by Joshua Green

In May, Christine Varney, the new antitrust chief at the Justice Department, promised to scrutinize high-tech mergers more closely than her Bush-era predecessors. In the early Obama administration, talk of a possible antitrust action has focused almost exclusively on Google. The latest example is this Sunday Times profile of the apple-cheeked Googler whose job it is to furiously spin decision makers on the idea that Google is not really so big after all. But that's not the only antitrust issue lurking. If the recession, the energy bill, the prospects for health care, and a dozen other stories weren't already dominating headlines, yesterday's news that the Justice Department is taking a closer look at Oracle's $7.4-billion purchase of Sun would be a really big deal.

More

Feb 22 2009, 7:26AM

The Santelli Clause

by Joshua Green

I enjoyed Rick Santelli's rant as much as anyone. Financial news has found its Howard Beale. It's likewise amusing to see the White House snap back at Santelli, as Marc just wrote about. Leaving aside the obvious hypocrisy (Santelli didn't get worked up when his bank-exec neighbors got bailed out), here's a less obvious bit: The stimulus also contains a huge mortgage-related giveaway to wealthy types exactly like the pit traders in Santelli's audience. Buried on page 111 is a clause raising the "jumbo-conforming limit" on government-backed mortgages from $625,500 to $729.750 in rich areas like New York, Washington DC, and Santelli's home of Chicago. This is a big deal because Fannie and Freddie are the only ones buying mortgages anymore, so it will have the effect of driving down interest rates on really big mortgages. (Good breakdown here.) The Regular Joes on whose behalf Santelli seemed to be ranting don't take out $730K mortgages.


But I'll bet CNBC anchors do. If I were Robert Gibbs, I would point this out. I might even have some fun by dubbing the provision " the Santelli Clause" to drive home the point.