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Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, one of Capitol Hill's most feared panels, has a history with Goldman Sachs.

He clashed publicly with its Chief Executive Lloyd Blankfein a year ago at a hearing on the crisis.

The Democratic lawmaker again tore into Goldman at a press briefing on his panel's 639-page report, which is based on a review of tens of millions of documents over two years.

Levin accused Goldman of profiting at clients' expense as the mortgage market crashed in 2007. "In my judgment, Goldman clearly misled their clients and they misled Congress," he said, reading glasses perched as ever on the tip of his nose.

A Goldman Sachs spokesman said, "While we disagree with many of the conclusions of the report, we take seriously the issues explored by the subcommittee."

The panel's report is harder hitting than one issued in January by the government-appointed Financial Crisis Inquiry Commission, which "didn't report anything of significance," Republican Senator Tom Coburn said at the briefing.

More than two years since the crisis peaked, denunciations of Wall Street misconduct are less often heard on Capitol Hill, with lawmakers focused on fiscal issues. But Coburn joined Levin at Wednesday's bipartisan briefing, firing his own sharp attacks on the financial industry.

"Blame for this mess lies everywhere -- from federal regulators who cast a blind eye, Wall Street bankers who let greed run wild, and members of Congress who failed to provide oversight," said Coburn, the subcommittee's top Republican.

"It shows without a doubt the lack of ethics in some of our financial institutions who embraced known conflicts of interest to accomplish wealth for themselves, not caring about the outcome for their customers," he said.

The Levin-Coburn report criticized not only Goldman, but Deutsche Bank, the former Washington Mutual Bank, the U.S. Office of Thrift Supervision and credit rating agencies Moody's and Standard & Poor's.

"We will be referring this matter to the Justice Department and to the SEC," Levin said at the briefing, though he did not elaborate. A spokesman later said, "The subcommittee does not intend to reveal the specifics of any referral."

The report offered 19 recommendations for reform going beyond changes already enacted after the crisis in 2010's Dodd-Frank Wall Street and banking regulation overhaul.

Case studies from the go-go years of the real estate bubble formed the bulk of the report, which said a runaway mortgage securitization machine churned out abusive loans, toxic securities, and big fees for lenders and Wall Street.

It cited internal emails by Wall Street executives that described mortgage-backed securities underlying many collateralized debt obligations, or CDOs, as "crap" and "pigs."

NYSE could give its own shareholders a special dividend at the time the Deutsche Boerse deal closes, sources said.

Other options include NYSE Euronext and Deutsche Boerse together buying back shares or paying a dividend after the deal is completed, one of the sources said.

The idea is to win shareholder support for the NYSE Euronext-Deutsche Boerse combination over a higher but unsolicited offer for NYSE Euronext by Nasdaq OMX Group (NDAQ.O) and IntercontinentalExchange Inc (ICE.N).

While NYSE Euronext and Deutsche Boerse currently pay dividends, Nasdaq and ICE do not.

Rating agencies have raised concerns about Nasdaq's debt levels. Moody's Investors Service said earlier this month the bid made it more likely to cut Nasdaq's debt ratings to junk over the medium term, while Standard & Poor's said it might cut the exchange's ratings to junk in the near term.

Two junk ratings could create a headache for the combined exchange because NYSE bondholders would have the right to force the company to buy back their $2.1 billion of debt. Nasdaq could be forced to raise even more money.

Still, Nasdaq Chief Executive Robert Greifeld has said that it would consider dividends as a way to return capital to shareholders if its bid for NYSE Euronext was successful.

NYSE, Nasdaq, and Deutsche Boerse declined to comment. The sources requested anonymity because the talks are not public.

SHAREHOLDER MEETINGS

Executives from all four exchange operators have met with shareholders to press their cases in the last few days.

The options being considered by NYSE Euronext and Deutsche Boerse are in part based on those meetings, one of the sources said.

Further highlighting their desire to fend off an unsolicited bid, NYSE Euronext and Deutsche Boerse have also identified additional cost savings from their planned combination, one of the sources said.

Nasdaq and ICE bid $11.3 billion to buy and divide the centuries-old NYSE between them. The offer was a 12 percent premium to Deutsche Boerse's acquisition plan, unveiled in February.

NYSE's board dismissed the counteroffer on Sunday as too risky and contrary to the company's strategy, though NYSE shareholders will likely have to decide between the competing offers.

Crude oil priced edged up after falling about 3 percent overnight, as the market focus shifted to supply concerns in Libya and upcoming U.S. demand. U.S. stock futures steadily gained in Asia, suggesting the sudden shakeout in bets on equities and higher-yielding currencies may have run its course.

The pullback in commodity prices had made investors cut exposure to risky assets such as emerging market stocks and currencies that have had steep gains recently such as the Australian dollar.

The MSCI index of Asia Pacific shares outside Japan .MIAPJ0000PUS was up 0.8 percent in choppy trade, with technology-related shares leading the way higher.

Tokyo's Nikkei .N225 finished up 0.9 percent, with shares of Tokyo Electric (9501.T) surging on heavy volume on a report that its liabilities stemming from Japan's nuclear crisis may be capped. Other utilities stocks slid since they may have to help foot the bill. .T

U.S. stock futures rose 0.4 percent after falling for four consecutive sessions, suggesting a higher open on Wall Street.

The yen slipped more than 0.6 percent against the dollar and euro as some analysts said its gains this week were because of stretched positioning and may be an opportunity for investors to re-enter or extend their short positions. <FRX/>

"I think the markets at the moment are just pausing to take a bit of profit and assess things in the yen crosses," said David Forrester, FX strategist at Barclays Capital in Singapore.

"We have to remember that over the past two weeks we have had a big rush into yen-funded carry trades," Forrester said.

Brent crude for May, which expires on Thursday, rose 0.8 percent to $121.78 a barrel. U.S. May crude added 0.4 percent to $106.68.

Gold bounced higher on Wednesday after posting its biggest fall in a month in the previous session. Declines in bullion and silver ETF holdings suggest investors are nervous following a second bearish forecast from commodity bull Goldman Sachs.

Spot gold added more than $3 to $1,458.31 an ounce after falling as low as $1,443.49 an ounce on Tuesday. Gold hit a record around $1,476 an ounce on Monday on the prospect of more declines in the dollar.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD.P), said its holdings slipped to 1,216.299 metric tons by April 12 from 1,217.209 metric tons on April 7.

U.S. Treasuries dipped as Asian investors took advantage of their hefty gains overnight to offload some of their holdings, but market players say prices could climb further if U.S. retail sales data due later in the day shows inflation is crimping consumer spending.

(Additional reporting by Ian Chua in SYDNEY, Masayuki Kitano in SINGAPORE and Ayai Tomisawa in TOKYO.; Editing by Richard Borsuk and Robert Birsel)

Analysts on average expect the second-largest U.S. bank earned $1.16 a share, according to Thomson Reuters I/B/E/S. That compares with a year-earlier profit of 74 cents a share.

JPMorgan is the first of the major U.S. banks to report earnings and is expected to set an upbeat tone for the sector, showing an improvement in credit quality and only moderate trading losses. The bank is closely watched for its broad exposure to both consumer and investment banking.

A big driver for the improved performance is expected to be JPMorgan's credit card business, which lost $303 million in the first quarter of 2010, but seems to be turning around. In the fourth quarter, it earned $1.3 billion.

"It's not like credit is fantastic right now, but we're moving the right way pretty quickly," Jeff Harte, a bank analyst at Sandler O'Neill, said in an interview on Tuesday.

JPMorgan Chief Executive Jamie Dimon is often praised for avoiding the worst of the credit crunch through careful risk management in fixed income trading. But the bank suffered big losses from mortgage loans and other types of consumer credit.

The mortgage losses may continue for some time, but credit card lending appears to be improving and it was the bank's second most profitable unit in the fourth quarter. Financial regulatory reform may crimp future profits in this business.

Investment banking was the most profitable area, with a $1.5 billion profit. The business was tough in the first quarter, analysts said.

European debt fears, high oil prices and the nuclear crisis in Japan have made for a jittery trading environment. With the Dodd-Frank financial reform law limiting a bank's ability to use its own capital to trade for profit, Wall Street sales and trading revenues are likely to have slipped.

JPMorgan beefed up its commodities trading with the acquisition of the non-U.S. assets of RBS Sempra last year. Strength in that business could help dampen weakness elsewhere, Sandler O'Neill's Harte said.

JPMorgan's investment banking business should also benefit from increased corporate debt issuance and it is using its balance sheet to win investment banking business, said Paul Miller, a bank analyst at FBR Capital Markets.

"They've been very good at taking advantage of the liquidity in the system," said Miller.

JPMorgan attracted attention last month when it agreed to be the only bank making the initial commitment on a $20 billion bridge loan to help finance AT&T Inc's acquisition of T-Mobile USA from Deutsche Telekom AG.

The analysts with the best track record are forecasting earnings of $1.17 a share, according to Thomson Reuters StarMine SmartEstimate.

JPMorgan shares have risen nearly 8 percent over the course of the quarter.

(Reporting by Clare Baldwin; editing by Dan Wilchins)