Renae Merle at the Washington Post throws cold water on the idea that the "nascent" economic recovery (is anyone still calling it that?) will continue much longer in this story about a subject that seems to slip further and further from the top of everyone's list of concerns - the growing backlog of foreclosures or soon-to-be foreclosures.

Ouch.

Anton Valukas is Chairman of the Jenner & Block law firm. A former United States Attorney specializing in civil and white collar criminal litigation, he was selected as the Lehman Brothers (LEHMQ.PK) bankruptcy trustee. He just released his 2,200 page report (he is, after all, a lawyer, and gets paid by the page) on how Lehman dug itself into the hole it could not climb out of.

We have two warnings on the board in financials.

First, Discover (DFS) said it is boosting reserves and expects to loss 22 cents, which is a significant deterioration from the 9 cent profit previously expected.

Fitch’s rating outlook for the U.S. banking sector remains negative, although many of the factors that put negative pressure on ratings are easing. We are pleased to offer a complimentary download of Fitch’s latest US Banking Quarterly, which includes individual comments on the top 24 banks rated by Fitch.

As Chris Dodd prepares for retirement, possibly to his 10-acre plot on Inishnee Island on Galway Bay (a story for another day as while it is part and parcel of the seedy side of Washington I can’t, for the life of me, figure out how to work the CDS market into it), he will attempt to bring a financial reform bill that can actually pass both houses. The bill was originally intended to fix every last thing that was wrong with Wall St., the credit card companies, the mortgage industry and a whole host of other businesses whose raw material and finished product is the $ sign.