STOCKS NEWS US-Obama may ask for $250 bln more for financials

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U.S. stock market report [.N] 1315 ET 26Feb2009-Obama may ask for $250 bln more for financials ------------------------------------------------------------------------------

President Barack Obama has penciled the possibility that he may request an additional $250 billion into his budget to help fix the troubled U.S. financial system.

The figure was described as a "placeholder" as opposed to a specific funding request. The money would support asset purchases of $750 billion through government financial stabilization programs, administration officials said. [ID:nN26313060]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1309 ET 26Feb2009-Volcker warns against protectionism ------------------------------------------------------------------------------

Paul Volcker, the former Federal Reserve chairman and current White House economic advisor, on Thursday warned Congress not to resort to protectionism, saying that trade restrictions could hurt exports and end up doing more damage to the domestic economy.

"You're not going to get anywhere by putting on trade restrictions," he said, adding, "I would urge Congress to be very careful about putting on import restrictions." [ID:nWBT010751]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1304 ET 26Feb2009-Romer: real GDP will bottom in mid-year 2009 ------------------------------------------------------------------------------

Christina Romer, President Barack Obama's chief economic advisor, on Thursday said that real GDP "will fall significantly in the first quarter of the year," though the administration expects it to bottom out "sometime around mid-year 2009 and begin growing again by the end of the year.

"We're forecasting real GDP growth of 3.2 percent for 2010 as a whole and more robust growth in 2011, 2012 and 2013," she added, laying out the underlying economic assumptions for Obama's newly unveiled budget. [ID:nWBT010749]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1256 ET 26Feb2009-Calif housing market may be near bottom: JPMorgan ------------------------------------------------------------------------------

Charlie Scharf, the retail banking chief at JPMorgan Chase on Thursday said that neither New York nor Florida were near bottoms in their housing market, though California could be.

California is "the one place of any real meaning" where prices appeared to be approaching "some kind of bottom," Scharf said. He added that "we know New York is going to deteriorate" in housing conditions and that in any way you look at Florida, "it's taking a long time to sell properties." [ID:nWEN5191]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1230 ET 26Feb2009-Education companies fall on Obama student loan proposal ------------------------------------------------------------------------------

For-profit colleges and trade schools stumbled on Thursday after President Barack Obama proposed shifting federal student loans into a "direct-loan program" administered by the U.S. Department of Education.

Career Education Corp (CECO.O) tumbled 8.8 percent to $23.84 while ITT Education (ESI.N) slumped 8 percent to $107.94 and Corinthian Colleges Inc (COCO.O) fell 6 percent to $19.