Briefcase: Feds want to rent foreclosed homes

WASHINGTON – The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.

The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration.

The U.S. government rescued Fannie and Freddie in 2008 and has funded them since the financial crisis. The mortgage giants own or guarantee about half of the nation’s mortgages and nearly all new mortgages.

At the end of last month, the government owned roughly 248,000 foreclosed homes, officials said. About 70,000 of those are listed for sale. But officials expect the number of foreclosures to soar in the coming months.

Converting the homes into rentals may reduce “credit losses and help stabilize neighborhoods and home values,” said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.

Associated Press

Louboutin’s red sole not protected

NEW YORK – In a court case that has all sides seeing red, a judge said Wednesday that a French maker of luxury shoes worn by stars such as Sarah Jessica Parker, Scarlett Johansson and Halle Berry will likely fail in its effort to stop other shoemakers from producing high-heeled women’s shoes with red soles.

U.S. District Judge Victor Marrero refused a request by Christian Louboutin to stop the sale of women’s shoes with red soles by competitor Yves Saint Laurent S.A.S., another French company based in Paris. Though the ruling came at an early stage of consideration of a lawsuit Louboutin brought in April, the judge said it will probably be tossed out.

He said it was unlikely Louboutin could defend an “overly broad” trademark granted in 2008 by the U.S. Patent and Trademark Office. The judge said the office was “perhaps swayed in part by the widespread recognition the red sole had already attained” as the shoes became a favorite of well-heeled famous clients. The trademark notes that the color red is claimed as a feature of the mark, which consists of a lacquered red sole on footwear.

“Awarding one participant in the designer shoe market a monopoly on the color red would impermissibly hinder competition among other participants,” Marrero wrote.

Associated Press

Companies shy about going public

NEW YORK – Wall Street’s recent gloom is laying waste to the hopes of companies planning to raise money from investors.

Of the 11 companies that had been scheduled to go public this week, eight have canceled their initial public offerings and one has slashed its deal size in order to get the transaction done.

The recent volatility in the stock market is hurting demand for IPOs. That’s a reversal from earlier this year, when big debuts from technology and retail companies had analysts predicting the strongest year for new listings since before the recession.

Associated Press