Top Interest Rate Headlines 10-05-2010: Fed Official Evans Calls for Aggressive Action

Fed Official Evans Calls for Aggressive Action
BY JON HILSENRATH,
WSJ.com
CHICAGO—Charles Evans, president of the Federal Reserve Bank of Chicago, called for the Fed to do more to charge up the economy, including a new program of U.S. Treasury bond purchases and possibly a declaration that it wants inflation to rise for a time beyond its informal 2% target.
http://jlne.ws/afZzGW

Bank of Japan Cuts Key Rate
BY MEGUMI FUJIKAWA AND TOMOYUKI TACHIKAWA, WSJ.com
The Bank of Japan caught financial markets by surprise Tuesday, announcing a 35 trillion yen ($418 billion) monetary easing program to spur economic growth while cutting interest rates to virtually zero. It also launched a 5 trillion yen program to buy private- and public-sector assets.
http://jlne.ws/ddJh9m

There's 'a Bit of a Bond Bubble': FDIC's Bair
CNBC.com
In the short term, the US needs to deleverage the financial system and restore market discipline and must keep the effects of protracted low interest rates in mind, as a bubble seems to be developing in bond markets, Federal Deposit Insurance Corporation Chairwoman Sheila Bair told CNBC Tuesday.
http://jlne.ws/bee8Dm

Banks Pile Into Safe Bets
By CARRICK MOLLENKAMP, LIZ RAPPAPORT  and AARON LUCCHETTI, WSJ.com
Tighter regulatory requirements are compelling giant investment banks in the U.S. and Europe to tone down their risk-taking and shift to more staid strategies. Now hot on Wall Street: trading securities for clients, processing trades, exchanging currency, managing assets and advising clients on deals and financing.
http://jlne.ws/bNkoeC

ELX Questions CME's Conduct In Treasury Futures Market In Letter To CFTC
By Sarah N. Lynch - Dow Jones
WASHINGTON -(Dow Jones)- ELX Futures LP told regulators in a letter released Monday that it believes CME Group is acting anti-competitively in the Treasury futures market and urged them to look into the matter.
http://jlne.ws/cp4Ks1

IMF says sovereign risk a threat to recovery
By Alan Beattie in Washington - Financial Times
The rising threat of instability from sovereign debt problems has worsened conditions in the global financial system over the past six months despite a reduction in writedowns of assets, according to the International Monetary Fund.
http://jlne.ws/bRxdVI

CME Eurodollar Futures Fade, Treasurys Thrive On Fed Rate Policy
Dow Jones
CHICAGO (Dow Jones)--The volume of Eurodollar futures traded on the Chicago Mercantile Exchange trailed Treasury contracts for the sixth straight month in September, marking a symbolic shift in the benchmark for interest-rate products.
http://jlne.ws/9eUi2Q

RBS Chairman Says Many Bankers Are Overpaid
NPR
The chairman of the Royal Bank of Scotland made a remarkable admission before a conference of fellow bankers Monday. Sir Philip Hampton said many of his top employees are not worth their extravagant salaries and bonuses, which totaled $2 billion last year. But he said not rewarding top staff with fat bonuses, could drive employees to work for rival banks.
http://jlne.ws/99ZHD6