Top Interest Rate Headlines 01-18-11: China Lowers Holdings of US Debt in November

China Lowers Holdings of US Debt in November
By AP
China, the biggest buyer of U.S. Treasury securities, reduced its holdings in November after four months of gains.
http://jlne.ws/eutCB8

JPMorgan's EMC Mortgage Sued Over Home Loan Documents
By Sophia Pearson, Bloomberg
JPMorgan Chase & Co.’s EMC Mortgage, facing homeowner lawsuits over foreclosures, was sued by the trustee of a mortgage portfolio for refusing to turn over documents detailing the quality of loans bought by the trust.
http://jlne.ws/flRw00

The People’s Republic of the U.S. Treasury
By Jon Hilsenrath, WSJ.com
Here’s an ominous image of the U.S. Treasury Department building today, decked out with flags of the People’s Republic of China, in honor of China’s visiting president, Hu Jintao.
http://jlne.ws/f2PStu

Blackstone Group joins the Twitterverse
By Dan Primack, Fortune
The Blackstone Group (BX) joined Twitter today, with a snarky message about how Q4 earnings will be announced early next month. Oh, wait, it was just an informative link to an existing press release. Still, Blackstone at least has gone where just one or two other private equity firms have gone before.
http://jlne.ws/htaasy

Credit Scores, Card Debt Both Fell In 2010, Report Shows
By Darren Waggoner, US Banker
U.S. consumers’ average credit scores slipped one point in the past year, and credit card debt fell by 8 percent to $7,404 during the same period, according to data released Jan. 12 by Credit Karma.
http://jlne.ws/gd1i8d

ECB has emerged from the financial crisis as one of the few institutions with its reputation intact
FT.com
The European Central Bank has emerged from the financial crisis as one of the few institutions with its reputation intact – and its powers greatly enhanced – so a job on its governing council is a pretty good gig by any measure.
http://jlne.ws/eTdIkD

LCH.Clearnet named clearing house of the year: Risk Awards 2011
London, 17 January 2010
LCH.Clearnet Group (LCH.Clearnet) has been named “clearing house of the year” by Risk Magazine, in recognition of its pivotal role in reducing systemic risk and for its development of market leading clearing solutions.
http://jlne.ws/g3XDXU

Fleeing first lady said to have taken central bank gold
Adrian Blomfield, The Sydney Morning Herald
Tunisians have been outraged to be told that the former president's wife, Leila Trabelsi, took 1.5 tonnes of gold from the central bank when she and her family fled to Dubai.
http://jlne.ws/gmhzAw

Swiss bank UBS to change much-mocked dress code
By FRANK JORDANS, Associated Press
Good news for Swiss bankers: They may soon be allowed to wear red underwear, black nail polish — and even eat garlic. Swiss banking giant UBS AG said Monday it is revising its 44-page dress code telling its Swiss staff how to present themselves, which generated worldwide ridicule for its micromanagement of their dressing and dining habits.
http://jlne.ws/h3DK1U

Citigroup Profit Misses Analysts' Estimates on Credit Spreads
By Donal Griffin and Bradley Keoun, Bloomberg
Citigroup Inc., the third-largest U.S. bank, posted a profit of $1.31 billion that missed analysts’ estimates as revenue from stock and bond trading fell more than at JPMorgan Chase & Co.
http://jlne.ws/eDkoOT

Canada Keeps Rates Steady
BY NIRMALA MENON, WSJ.com
The Bank of Canada held its benchmark overnight rate steady at 1% for the third successive time, raised growth forecasts slightly and said net exports will likely contribute more to growth.
http://jlne.ws/fN4eGw

Fed Bank of New York - Inflation protection in today's POMO, buying $1.74bln in TIPS of $4.939bln offered by dealers
The purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system.
http://jlne.ws/dcRpcM

Treasury to Offer $25B 56-Day Cash Management Bills
By Gary Siegel, The Bond Buyer
The Treasury Department said it will auction $25 billion 56-day cash management bills on Wednesday, January 19.
http://jlne.ws/hyY2Y4

Derivatives trading platform bypasses banks
By Jeremy Grant in London - Financial Times
A new type of derivatives trading platform has emerged that would allow pension funds and industrial companies to transact off-exchange derivatives between themselves, cutting out banks that have long acted as intermediaries in such deals.
http://jlne.ws/dKaJz4

Latest US Rule: Swaps Dealers Would Provide Trade Details
Dow Jones
WASHINGTON -(Dow Jones)- In its latest effort to make swaps trades more transparent, the main U.S. financial regulator Friday proposed a rule requiring swaps dealers to provide prompt information to counterparties following a trade.
http://jlne.ws/eYprhs

States warned of $2,500bn pensions shortfall
By Nicole Bullock in New York - Financial Times
US public pensions face a shortfall of $2,500bn that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey's pension fund.
http://jlne.ws/eJiLRr

Trichet Bonds Echoing Brady Plan Offer Fix for EU Debt Crisis: Euro Credit
Bloomberg
Two decades after Citigroup Inc.'s William Rhodes helped Latin American nations restructure their debts, investors are telling him a similar solution may fix the euro area's borrowing crisis.
http://jlne.ws/f0yisW

Goldman Sachs Declares Preferred Stock Dividends
Press Release
New York, January 14, 2011 - The Goldman Sachs Group, Inc. (NYSE: GS) (Goldman Sachs) has declared dividends on the following series of its non-cumulative preferred stock (represented by depositary shares, each representing a 1/1,000th interest in a share of preferred stock):
http://jlne.ws/gy6Fz9

Goldman Sachs in the firing line over predicted $15.4bn wage bill
Guardian Unlimited
Latest round of bank results expected to further inflame debate over level of pay in sector The Wall Street bank Goldman Sachs will move centre stage in the ongoing furore over bankers' bonuses this week by setting aside an estimated $15.4bn (L9.7bn) to pay its staff for 2010, amounting to a possible average of $435,000 per employee. Goldman, a perennial lightning rod for fury over banking ...
http://jlne.ws/hqO7nv

Goldman Sachs CEO Blankfein Is Said to Visit Groupon About IPO
BusinessWeek
Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein visited the Chicago headquarters of Groupon Inc. yesterday to pitch executives on hiring his firm for a possible share sale, a person familiar with the matter said.
http://jlne.ws/dW1mcT

Goldman Sachs won't sell Facebook shares in U.S.
San Francisco Chronicle
Goldman Sachs Group Inc. will offer a private investment in Facebook Inc. only to customers outside of the United States due to concerns that "intense media attention" could trigger violations of U.S. financial...
http://jlne.ws/ezwkiT

UBS hires ex-JP Morgan credit sales head
eFinancial News
A senior member of JP Morgan's credit sales staff, who followed former boss Tony Best out of the US firm, has emerged at UBS as the Swiss bank nears the completion of its rebuild in fixed income, commodities and currencies.
http://jlne.ws/gxaVxT

Bank lending targets are sticking point in bonus talks with government
Daily Telegraph
High street bank talks to diffuse government pressure over bumper bonus payouts are stumbling over the size of formal lending targets.
http://jlne.ws/ebvF3g

Citigroup Warrants Will Be Auctioned as Treasury Sells Last of TARP Stake
Bloomberg
The U.S. Treasury Department will sell warrants this quarter in Citigroup Inc. that were given to taxpayers in return for rescuing the lender during the financial crisis.
http://jlne.ws/e8AIeg

Morgan Stanley's Chief U.S. Economist Berner Leaving Firm
Bloomberg
Berner will remain at the sixth-largest U.S. bank by assets in the "near term" as an adviser, New York-based Morgan Stanley said today in an internal memo obtained by Bloomberg News and confirmed by Sandra Hernandez, a spokeswoman for the firm.
http://jlne.ws/gcsVMh

MPs fail to land a punch on Diamond Bob
Guardian Unlimited
Barclays' boss parries Treasury select committee, but what do you expect when you question a banker's pursuit of riches? With a glossy grin, a dry wit and bags of affable Irish-American charm, Barclays' chief executive, Bob Diamond, is a difficult man to discombobulate. His stratospheric career is built on a mastery of canny negotiation - and the man from Massachusetts was never going to be ...
http://jlne.ws/huAWF2

RBS sells Priory Group in L925 million deal
Reuters Finance News (EU) via Yahoo! UK & Ireland Finance
LONDON (Reuters) - Royal Bank of Scotland announced the long-awaited sale of the Priory Group, the care homes operator famous for its celebrity clientele, to buyout firm Advent International in a deal ...
http://jlne.ws/gI1a2V