Financial Roundup: New Credit Card Rules Due, AIG Owes $10 Billion, Debt "Orgy" Infected Fannie Mae and Freddie Mac, Beware the Clawback

(MoneyWatch)  Credit card rules on way -- One of the biggest overhaul of credit card rules in decades is expected after the Federal Reserve Board approves new rules next week. Lobbyists are busy with consumer groups trying to limit overdraft fees and banking lobbyists claiming the rules will squeeze credit further. [Source: American Banker]

AIG down $10 billion in bad debts -- Troubled AIG owes Wall Street firms $10 billion for speculative trades gone bad. The debts are not covered by the firm's $150 billion bailout by the federal government. [Source: The Wall Street Journal]
"Orgy" of subprime loans dealt blow to Fannie Mae and Freddie Mac -- Former executives from the firms told a congressional committee that in 2005 they jumped into subprime loans despite internal warnings. Such bad loans make up 34 percent of the total loans for single-family mortgages. [Source: The New York Times]

SunTrust hits federal well again -- SunTrust Banks Inc. is getting a second tranche of loans from the Treasury Department for $1.4 billion, making its total $4.5 billion. Other banks likely to follow with second requests are KeyCorp., First Defiance Financial, WesBanco, Central Bancorp., and IberiaBank. [Source: American Banker]

Beware the clawback -- Morgan Stanley and UBS AG are introducing rules that would use "clawbacks" to take back money paid to traders and others who give advice on debts that go bad. Clawbacks are more typically used in private equity, hedge funds and executive compensation contracts. [Source: The Wall Street Journal]