BofA, Goldman: Monday's Headlines

(Updated with HSBC CEO comments on recovery.)

NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Monday, October 5, 2009.

Monday's Early Headlines

• BofA Board to Select Emergency Interim CEO. - The Wall Street Journal reports that Bank of America's (BAC Quote) board will select an emergency CEO this week in case Ken Lewis has to step down before the end of the year because of legal troubles. Led by Chairman Walter Massey, the five-person board committee, formed earlier this year to respond to concerns raised by U.S. banking regulators, plans to submit its choice to the full board for approval, the report said. A separate board committee formed on Friday is sifting through possible successors for Lewis.
• Goldman Could Net $1 Billion in CIT Group Bankruptcy. - The Financial Times reports that Goldman Sachs (GS Quote) could earn about $1 billion if CIT Group (CIT Quote) files for Chapter 11 bankruptcy protection. The agreement with Goldman states that if CIT defaults or goes bankrupt, it "would be required to pay a make-whole amount" that totals $1 billion, the report said, citing people familiar with the matter. CIT said last week it was negotiating with Goldman to amend the facility.
• Three More Firms Join PPIP Lineup. - Alliance Bernstein (AB Quote), BlackRock (BLK Quote) and Wellington Management all have raised the minimum $500 million to take part in the Treasury Department's program to purchase toxic assets from banks. The three new firms increase the total purchasing power to obtain banks' soured assets to $12.27 billion, Treasury said, according to The Associated Press.
• HSBC CEO Expects W-Shaped Recovery. - The Financial Times reports that HSBC (HBC Quote) CEO Michael Geoghegan expects a second economic downturn in the coming months and he plans to delay any rush to expand the bank. "Is this a V recovery or a W?" Geoghegan asked in an interview with the FT. "[I think] it's the latter. [If I'm right], we have to be very careful we don't grow the balance sheet so far before the recovery has come only to write it back into the impairment line later on. I'm cautious about growing too fast."
• Brocade Reportedly Is Up for Sale. - The Wall Street Journal reports that Brocade (BRCD Quote) has put itself up for sale and Hewlett-Packard (HPQ Quote) is showing interest in the data-storage and networking company. Oracle (ORCL Quote) also may be examining a purchase, the report said. No deal is imminent, the people said, and Brocade could eventually decide not to complete a sale, the Journal said.
• Unemployment Rate Will Rise Through 2010: Roubini. - Nouriel Roubini, chairman of RGE Monitor, New York University professor and outspoken bear, told CNBC that he sees "the unemployment rate rising through most of 2010." High unemployment and a lack of stimulus for private demand by countries like Japan and Germany could slow down the world recovery, Roubini said, according to CNBC. "Not just is going to go above 10% but the risk is it's going to stay above this level and return to more normal only more gradually and that's going to be one of the important sources of weakness for an economic recovery," Roubini added.
• ISM Services Index Expected to Rise - At 10 a.m. EDT, the Institute for Supply Management will post its services index for September, which should rise to a reading of 50 from 48.4 in August. Any reading of 50 or above indicates expansion in the sector while a reading below 50 indicates contraction.

Monday's Earnings Roundup

• RPM International (RPM Quote) reported fiscal first-quarter earnings of $73 million, or 57 cents a share, topping the Thomson Reuters average estimate of 44 cents a share. Revenue fell 7% from a year ago to $916 million, also beating expectations. The company also upped its 2010 earnings forecast.
• Mosaic (MOS Quote) is expected to post a quarterly profit of 35 cents a share on revenue of $1.54 billion when the company reports after the closing bell Monday.