The latest litigation has Intel Inside.

The State of New York is going after Intel (NASDAQ: INTC) over antitrust allegations. State Attorney General Andrew Cuomo is accusing the largest chip manufacturer in the world that it is trying to secure a global monopoly for microprocessors.

For several years, Cuomo said that Intel has pushed the likes of Dell (NYSE: DELL) and Hewlett-Packard (NYSE: HPQ) to agree to the exclusive use of Intel's gear in exchange for billions of dollars in payments. The hefty cash outlays have given what Cuomo called a "stranglehold" on the market.

MAJOR PAPERS:

• The Wall Street Journal's "Fund Track" reported that some banks struggling to raise capital may sell their money management units. National City Corporation (NYSE: NCC) is selling its Allegiant Funds, Fifth Third Bancorp (NASDAQ: FITB) is considering selling its Fifth Third Asset Management, and KeyCorp (NYSE: KEY) will possibly sell its Victory Capital Management unit.
• The Wall Street Journal also reported that Andrew Cuomo, the New York state Attorney General, is preparing to file civil securities-fraud charges against UBS AG (NYSE: UBS), possibly as early as this week. Sources said the lawsuit may include allegations of malfeasance by senior UBS executives.

• Bloomberg reported that money manager John Paulson, the owner of Paulson & Co., is launching a hedge fund that will provide capital to financial firms which have been damaged by the housing crisis. Paulson, who wants to open the fund by December, used bets against the U.S. housing market to help him earn $3.7B in 2007.
• After U.S. lawmakers reached a deal on legislation to alleviate the housing recession, the House of Representatives will today vote on a rescue plan for Fannie Mae -- Federal National Mortgage Association (NYSE: FNM) -- and Freddie Mac -- Federal Home Loan Mortgage Corporation (NYSE: FRE). Representative Barney Frank said that the package, which increases the likelihood Treasury Secretary Henry Paulson will get the authority to inject capital into the two, is "fully acceptable," Bloomberg reported.
• Oil trading losses forced SemGroup LP, which used to be America's 12th largest private company, to declare bankruptcy yesterday. Reuters noted that SemGroup LP's parent company is SemGroup Energy Partners LP (NASDAQ: SGLP).

California Attorney General Jerry Brown is reported to have stated that the Federal government may need to bail out the American auto industry from its financial problems. His reasoning is based on the auto makers' "refusal" to manufacture more fuel efficient cars. He places blame upon the government and the industry and, of course, he sees basis for much expensive litigation. Then he points his finger directly at us and makes it clear that it is his opinion that the taxpayers must foot the bill for all of it.

Yes, the American auto industry is playing out a saga that reads like "going to hell in a hand basket." I, myself, have no desire to see the government step in. Let's let the big boys figure it out for themselves, even though it's going to hurt a bit. If Attorney General Brown is so disappointed with how the government has addressed auto makers thus far, why in the blue blazes would he send the buggers back there with fists full of dollars? Honestly, Jerry, don't they call that sending good money after bad? The difference here is that Jerry Brown wants the squandering to go outside the boundaries of company profits and into the public coffers. How wonderfully socialist of him.

I'm just as disappointed with the current status of the American auto industry as anyone else. I feel very bad about all the job losses the industry has suffered and I'm disgusted with the performance of the unions. I have no magic solutions to offer and I fear that things will get much worse before they begin to get better. One thing I can tell you for sure: If Attorney General Jerry Brown thinks that the salvation of the American auto industry rests in the diversion of tax dollars into its hands, then all I can stress is that he himself needs to be immediately removed from the government payroll.

But that's just my opinion.