Top Interest Rate Headlines 12-06-2011: EU Talks On Doubling Financial Firewall

EU talks on doubling financial firewall
FT.com
http://jlne.ws/tjOZK5

The euro crisis: Tricky treaty
The Economist
ANGELA MERKEL and Nicolas Sarkozy have agreed on the framework of a fiscal deal, to be put to other heads of state at this week's summit. Charlemagne provides details here. There are a few key points worth making.
http://jlne.ws/uysO0Y

Geithner to add U.S. weight to euro zone talks [Video]
Reuters
Treasury Secretary Timothy Geithner arrived in Germany on Tuesday for a three-day blitz of euro zone officials to urge them to take decisive action to backstop their currency union and resolve a crushing debt crisis.
http://jlne.ws/uQLCnw

Bank of American unit in $315-million mortgage settlement
The Globe And Mail
Bank of America Corp. (BAC-N5.78-0.01-0.17%) agreed to pay $315-million (U.S.) to settle claims by investors who said they were misled about mortgage securities offerings by its Merrill Lynch unit.
http://jlne.ws/smRt65

U.S. deficit is an ‘abomination,’ Vanguard bond chief warns
MarketWatch
Politicians may not be able to tell by ultra low Treasury yield levels, but  investors are still very much worried about the lack of progress towards fixing the budget and deficit problems in the U.S.
http://jlne.ws/v6ImvZ

NFA Signs Agreement with FX Alliance to Provide Regulatory Services to FX Alliance's Swap Execution Facility
Press Release
December 5, 2011, Chicago and New York - National Futures Association (NFA) and FX Alliance Inc. (FXall) today announced that they have entered into an agreement that paves the way for NFA to perform regulatory services for FXall's swap execution facility (SEF).
http://jlne.ws/tVlEAH

Credit FAQ: Factors Behind Standard & Poor's Ratings Services Placement Of Eurozone Governments On CreditWatch
Press Release
Standard & Poor's Ratings Services today placed its long-term sovereign ratings on 15 members of the European Economic and Monetary Union (EMU or eurozone) on CreditWatch with negative implications. We now think that there is at least a one-in-two chance that we will lower each of the ratings that we have placed on CreditWatch.
http://jlne.ws/rCWwJs

IMF Executive Board Completes Fifth Review Under Stand-By Arrangement For Greece And Approves EUR2.2 Billion Disbursement
Press Release
The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of Greece's economic performance under a program supported by a three-year Stand-By Arrangement (SBA) for Greece. The completion of the review enables the immediate disbursement of an amount equivalent to SDR1.9 billion (about E2.2 billion), bringing total Fund disbursements under the SBA to an amount equivalent to SDR 17.5 billion (about E20.3 billion).
http://jlne.ws/t2CVLB

Talismanic IMF ponders future role
By Alan Beattie, Financial Times
The Franco-German plan to save the single currency was big on what the eurozone will look like in a year's time. But its immediate aim was to arrest the spiral towards default that seemed to have taken Spain and Italy into its grip.
http://jlne.ws/trRKgF

Why Credit-Default Swaps Work On AMR's Debt, But Not Greece's
By Katy Burne, DOW JONES NEWSWIRES
AMR Corp.'s (AMR) bankruptcy is expected to force sellers of credit default swaps on the company's debt to pay up to $367 million to bondholders, in what would be the latest example of the insurance-like contracts working as expected.
http://jlne.ws/t8x6Ay

Sovereign-Debt Test U-Turn Is Too Late to Save EU Regulator's Credibility
Bloomberg
Less than five months after conducting stress tests that found banks needed to raise 2.5 billion euros ($3.4 billion), the European Banking Authority may tell lenders that they need 40 times that amount to defend against losses on sovereign debt.
http://jlne.ws/veaE4t

Statement Of European Commission Vice President Olli Rehn On The Adoption By The Italian Government Of Extraordinary Fiscal And Economic Measures
Press Release
Following the adoption by the Italian Government of a far-reaching package of fiscal measures and economic reforms, the Vice President of the European Commission in charge of Economic and Monetary Affairs and the Euro, Olli Rehn, delivered the following statement.
http://jlne.ws/td9oPQ

In Ireland, Austerity Is Praised but Painful
By LIZ ALDERMAN, NY Times
As European leaders scramble to overcome the Continent's debt crisis, many are pointing to Ireland as a model for how to get out of the troubles.
http://jlne.ws/tb5Vub

LCH.Clearnet's SwapClear Launches Major Enhancements to FCM Service
Press Release
New York, December 5, 2011 LCH.Clearnet Limited (LCH.Clearnet), the world's leading independent clearinghouse and a CFTC-regulated DCO, today announced that it has gone live with significant enhancements to its SwapClear service. Following extensive consultation with the buy side and Futures Commission Merchants, SwapClear now accepts a broader range of collateral for initial margin and offers increased connectivity and variable notional swaps. In addition, the platform offers risk-free compression and flexible trade submission and is now directly accessible via Tradeweb and Bloomberg (VCON and Electronic Trading) through SwapClear's ClearLink API in addition to MarkitSERV.
http://jlne.ws/uew7Zl

Bankers braced for bonus season scrutiny
By Megan Murphy and George Parker, Financial Times
British banks are braced for the most contentious bonus season since the start of the financial crisis as shareholders ratchet up pressure on pay and regulators push for a radical overhaul of how lenders measure the performance of their most senior staff.
http://jlne.ws/vNyUlU

UBS Joins Chi-X Global Ownership Consortium
Press Release
UBS AG has acquired an equity stake in Chi-X Global Holdings LLCand will join the consortium of five financial institutions that recently bought a minority stake in the firm, Chi-X Global announced today.
http://jlne.ws/uX20mN

HSBC Capital spins out into new firm Graycliff
Market Watch
HSBC Capital Management, the buyout arm of HSBC Holdings PLC's (HBC) business in America, Monday said it has spun out into a new firm called Graycliff Partners--the latest example of a bank disposing of assets in the face of regulatory reform.
http://jlne.ws/tEtgB6

Morgan Stanley Denies Wrongdoing, Says Singapore CDO Investors Knew Risks
Bloomberg
Morgan Stanley (MS) , accused by 18 Singapore investors of fraudulently wiping out their $154.7 million investment, denied wrongdoing and said the group was sophisticated and knew of the risks involved.
http://jlne.ws/v257xJ