Wednesday morning headlines

Stocks resume slide: Attention is focused on what will happen with Greece (and Spain) and how it might impact the euro zone. Dow is down 155 points.

Facebook stock is up: Well, it wasn't going to keep falling forever. Pickup this morning is 2.7 percent, to $31.81 a share.

Facebook, banks sued over IPO: A group of shareholders claims that the company's discouraging growth forecasts had been hidden from many investors. From Reuters:

Shareholders said research analysts at several underwriters had lowered their business forecasts for Facebook during the IPO process, but that these changes were "selectively disclosed by defendants to certain preferred investors" rather than to the public generally. "The value of Facebook common stock has declined substantially and plaintiffs and the class have sustained damages as a result," the complaint said.

Prepping for a Greek exit: Euro zone officials have told their members to develop contingency plans in case Greece decides to bail - an increasingly likely prospect. From Reuters:

Despite fears Greeks could open the exit door if they vote for anti-bailout parties at a June 17 election, Spain, where the economy is in recession and the banking system is in need of restructuring, is at the frontline of the crisis, with concerns growing that it too could need bailing out.

Congressional Budget Office warns of recession risk: The combination of big tax increases and spending cuts could lead to another downturn in 2013, according to the nonpartisan office. From the NYT:

Avoiding that danger in the short run, by extending tax cuts and repealing automatic spending cuts, would hold its own economic perils for the long term by adding to annual deficits, the budget office said. It suggested a combination of higher deficits in the short term with adoption of tax and spending policies meant to gradually reduce annual deficits later in the decade.

New rules on prepaid debit cards: They've been lightly regulated, which is one reason the cards are popular with banks. Under the proposal, companies would be required to reimburse consumers for unauthorized charges. (DealBook)

Brown's three-pronged dilemma: In trying to solve the budget crisis, the governor faces challenges on several fronts, says Sacramento Bee columnist Dan Walters:

He must not only persuade voters to pass his sales and income tax package, but, implicitly, persuade them to reject a rival tax measure just for schools. Meanwhile, Brown is pressing liberal Democratic legislators to ignore their political DNA by making deeper cuts in health and welfare programs, not only to close the deficit but to bolster appeals to voters for new taxes. "It's not easy," Brown told hundreds of business and civic figures gathered Tuesday in Sacramento for the annual Host Breakfast.

Environmental group not happy with stadium plan: The Natural Resources Defense Council, which supported legislation to expedite construction of Farmers Field, now says that the environmental impact report failed to fully analyze health risks created by cars that would travel to and from the 72,000-seat facility. From the LAT:

Other organizations offered their own complaints. In a 77-page letter, the advocacy groups Public Counsel and Legal Aid Foundation of Los Angeles said the stadium analysis falls "far short" of requirements in the state's environmental law. They said the report does not back up AEG's claim that the stadium would "provide economic development opportunities" to residents of Pico-Union and South Los Angeles. Because of the expedited timeline for court challenges, AEG will not feel as much pressure to address the issues now being raised by the public, said Kathryn Phillips, director of Sierra Club California.

Jump in new-vehicle registrations: Industry group reports an 18 percent increase in the first quarter compared with a year earlier. (Sacramento Bee)

Government loses big portion of its IndyMac case: A a federal judge threw out many of the fraud allegations against the CEO of the onetime Pasadena mortgage lender. From the LAT:

The SEC alleged that [Michael] Perry allowed false or misleading statements to be made to investors about the company's financial condition, including the omission of material information about the bank's deteriorating condition as the real estate market crashed. But [U.S. District Judge Manuel Real] ruled that in five instances, the company's regulatory filings didn't contain any false or misleading statements to investors and didn't omit pertinent information.

All Olympics, all the time: NBC plans more than 5,000 hours of coverage on its networks this summer, more than twice the number during the 2008 Beijing games. (The Wrap)