BlackRock Inc. (NYSE:BLK) Chairman Laurence Fink says Obama administration programs to help homeowners avoid foreclosure may hinder recovery efforts in the mortgage market while benefiting banks that own second loans on the properties. “I am just very worried,” Fink said yesterday in an interview. “How do we get a vibrant securitization market back when we are doing these things in the short run that are good for the banking system and good for the homeowner but not as good as it should be?” Fink stated that the policies introduced this year to reduce foreclosures are faulty because they don’t require home-equity loans to be wiped out before the mortgage is modified. Instead, in a break with the intentions of contracts, the second loan’s terms may also be revised, spreading the financial loss among lenders. -Bloomberg

Chinese authorities may loosen the reins on the nation’s currency, allowing appreciation against the U.S. dollar to resume, at a slower rate than prior to the economic crisis. “We are not looking for any abrupt moves, but directionally it would be for a stronger Yuan and a weaker dollar,” said Mitul Kotecha, head of global foreign-exchange strategy at Credit Agricole’s Calyon. -Marketwatch

Jobless Americans in high-unemployment states could see their benefits extended for an additional 13 weeks under legislation to be considered by Congress next week. The House measure would lengthen benefits for the more than 300,000 people who live in states with unemployment rates greater than 8.5% and who are set to run out of compensation by the end of this month, a Democratic aide said. It is expected that this legislation would also help another 1 million people who are scheduled to lose benefits by the end of the year. –CNN Money

Shares of both KB Home (NYSE: KBH) and Toll Brothers Inc. (NYSE: TOL) rose in premarket trading today after the pair were both upgraded to “overweight” from “neutral” at JPMorgan Chase & Co. (NYSE: JPM), which also stated that housing will continue to recover over the next 24 months and drive price appreciation in homebuilder stocks. –Reuters

Stock futures are pointing to a slightly higher open today as investors aim to resume a recent rally that took the Dow Jones industrials to a new high for the year earlier this week. Major indices had risen earlier in the week on signs the economy is recovering, but gave some ground on Thursday. Overseas markets were mostly higher. Economic data has been better than expected this week in the U.S., the world’s largest economy and key trading partner. –AOL Money & Finance

Record Earnings Ahead for Citigroup? Citigroup Inc. (NYSE: C) took advantage of a more politically acceptable bailout program that could lead to billions more in profits. Through the Fed’s Temporary Liquidity Guarantee Program (TLGP), where the Fed insures the debt against any losses, Citigroup has managed to pass sell $5 billion in notes. The notes pay interest of less than 2%. So basically, thanks to the guarantee from the Fed, Citigroup is able to borrow money at less than 2% and loan it out for 5% or more. Looks like more great, government-assisted “earnings” ahead for Citigroup. That’s why we continue to cover the truth about the ongoing banking sector “recovery” in the Prosperity Dispatch.

-Jutia Group