Top Interest Rate Headlines 05-06-11: Debt Limit D-Day To Spell Tough Choices For Obama

Analysis: Debt limit D-day to spell tough choices for Obama
By Tim Reid and Rachelle Younglai, Reuters
If Congress does not raise the limit on U.S. government debt before the specter of default becomes reality this summer, President Barack Obama will need to decide which bills to pay -- and choose between market mayhem and a firestorm over missed benefit payments.
http://jlne.ws/jygrTQ

Dr. Econ, Fed Bank of San Francisco: With soaring commodity prices, are you worried about higher headline inflation?
Federal Reserve Bank of San Francisco
This is a very timely question, as many analysts and policymakers today are closely watching commodity prices. How does one think about the link between this rise in commodity prices and headline inflation? Let me take a stab at outlining my thinking on the issue...
http://jlne.ws/iPcO3K

What if the Treasury defaults?
Kurt Brouwer, MarketWatch
Hedge fund manager Stanley Druckenmiller discussed a potential Treasury bond default in a solid piece in the Wall Street Journal.  With his experience in the bond market, Druckenmiller’s voice adds a dose of common sense and street smarts to the discussion of the U.S. government debt ceiling and what might happened if the ceiling does not get raised.
http://jlne.ws/k63Hin

PIMCO: Strauss-Kahn Allegations Are Consequential for the Global Economy
By Mohamed A. El-Erian, Pimco
Should Strauss-Kahn be forced to step down, this would catch the IMF with a selection process for the top position that is still overly dominated by politics. The allegations facing Strauss-Kahn are serious and will take time to be investigated properly. In the meantime, they have caught Europe still without a sustainable solution to the debt crisis in its periphery.
http://jlne.ws/jEFiMz

Google to sell bonds
By Ken Sweet, CNN Money
Google plans to raise cash by selling bonds for the first time in the company's history, the Internet search giant said Monday in a filing with the Securities and Exchange Commission.
http://jlne.ws/jsq8Bj

US halts 2 pension investments
By MARTIN CRUTSINGER, Associated Press
Treasury Secretary Timothy Geithner said Monday that he will immediately halt investments in two big government pension plans so the government can continue to borrow money.
http://jlne.ws/isGDoy

NYSE Liffe U.S. Achieves New Milestones in Interest Rate Futures Trading: Over 5% Market Share in Eurodollar Futures
NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), today announced it has achieved several key milestones further establishing the innovative exchange as viable, liquid and highly efficient competitor in the U.S. futures market.   On Friday, May 13, NYSE Liffe U.S. executed over 141,000 Eurodollar futures, a new daily volume record, which equates to 5.1% market share versus CME.   In reaching this new daily volume record for Eurodollar futures, NYSE Liffe U.S. traded over 91,000 lots in the central order book and 50,000 lots via block trades.  As of May 16, total Open Interest on NYSE Liffe U.S. crossed 270,000 contracts, also an exchange record.   The continued growth in open interest represents a strong indication of the diverse client participation and vibrancy of the NYSE Liffe U.S. market.
http://jlne.ws/jP7gdd

ISDA Responds to the Financial Stability Board Report on OTC Derivatives Markets Reforms Implementation
By Louise Marshall, Deriv Alert
The International Swaps and Derivatives Association, Inc. (ISDA) has submitted its response to the Financial Stability Board’s (FSB) progress report on OTC derivatives market reforms, published on April 15, 2011. The work of the FSB is vital to ensuring that regulatory reform is consistent across different regions, and ISDA believes that the progress report offers a valuable insight into the extent of international convergence.
http://jlne.ws/kYMNim

Nomura Hires Ellen Zentner As Executive Director And Senior Economist For The US
Economic Voice
The global investment bank Nomura has announced today that it has enhanced its team with the hiring of Ellen Zentner as Executive Director and Senior Economist for the US.
http://jlne.ws/mP10nR

Geithner: U.S. hits debt limit, special measures put in place - The Oval: Tracking the Obama presidency
By David Jackson, USA TODAY
The federal government hits the $14.3 trillion debt ceiling today, the Obama administration announced, requiring extraordinary measures that can stave off a default for a few more months.
http://jlne.ws/jhNDIR

CFTC’s Agricultural Advisory Committee to Meet May 19, 2011
Press Release
Committee to discuss issues concerning the Dodd-Frank Act including proposed rules on position limits, hedge exemptions, the swap dealer definition, the end user exception and margin requirements for uncleared swaps.
http://jlne.ws/lKROtT

IMF Completes First and Second Reviews Under Extended Arrangement with Ireland and Approves €1.58 Billion Disbursement
The Executive Board of the International Monetary Fund (IMF) today completed the first and second reviews of Ireland’s performance under an economic program supported by a three-year, SDR 19.5 billion (about €21.8 billion; or US$30.9 billion) arrangement under the Extended Fund Facility (EFF), or the equivalent of about 1,548 percent of Ireland’s IMF quota. The completion of the reviews enables the immediate disbursement of an amount equivalent to SDR 1.41 billion (about €1.58 billion; or US$2.24 billion), bringing total disbursements under the EFF to SDR 6.42 billion (about €7.20 billion; or US$10.19 billion).
http://jlne.ws/l1YOOg

Fed's Plosser:Allowing monetary policy to fall behind curve can result in greater inflation, more economic instability 
Good morning. Thank you for this opportunity to speak with so many leaders from the New Jersey banking community at this your 107th annual convention. Over the years, the Federal Reserve Banks have maintained an ongoing dialogue with the banks, businesses, and other organizations in the communities within our respective Districts. That dialogue provides an opportunity for the Fed to communicate not just to the financial markets, but to citizens in communities around the country about monetary policy and the economy. In addition, through conversations with our directors, advisory councils, and various individuals one on one, we seek to gain an understanding of what is happening in the economy firsthand...http://jlne.ws/l7ZpF7

O'Neill Says EU Must Not Delay on Greek Restructuring
Jim O'Neill, chairman of Goldman Sachs Asset Management, discusses this weekend's arrest of International Monetary Fund Managing Director Dominique Strauss-Kahn and the European sovereign-debt crisis. O'Neill, speaking with Andrea Catherwood on Bloomberg Television's "Last Word," also talks about the IMF's leadership outlook, Mario Draghi's candidacy to replace Jean-Claude Trichet as president of the European Central Bank and China's economy.
http://jlne.ws/lI5Ixo

Big banks, pension funds put in $3.6 billion bid for TMX Group
Investment Executive
A group of four big banks and five pension funds has submitted a $3.6 billion rival bid for stock market operator TMX Group, hoping to derail a controversial merger with the London Stock Exchange.
http://jlne.ws/lVSn4S

US banks attack proposed accounting standards
Accountancy Age
US BANKS have attacked accounting standards proposed by the International Accounting Standards Board and its US equivalent, the FASB.
http://jlne.ws/kU6r4L

UBS, Other Banks Ask New York Court to Reinstate Suit Over MBIA Split
Bloomberg
UBS AG (UBSN) and about a dozen other banks asked New York's highest court to reinstate a lawsuit over MBIA Insurance Corp.'s split in 2009. The banks filed a so-called reply brief with the New York Court of Appeals in Albany today that said the court should reverse a lower court decision dismissing the suit against MBIA.
http://jlne.ws/kec3N0

Hester in for long haul at Royal Bank of Scotland
By Patrick Jenkins and Sharlene Goff, Financial Times
The chief executive of Royal Bank of Scotland has told senior colleagues that he will stay in the job for up to eight more years, scotching rumours that he could quit within 18 months.
http://jlne.ws/jHL3wd

Goldman Sachs Said to Ready Blackstone Challenge for Hedge-Fund Startups
Bloomberg
Goldman Sachs Group Inc . is seeking money to bankroll fledgling hedge funds, its second attempt since 2008 to break into a business now dominated by Blackstone Group LP , according to three people with knowledge of the plan.
http://jlne.ws/iMikOn

Citadel’s Griffin Debates Dodd-Frank
By AZAM AHMED, NY Times
LAS VEGAS — Many hedge fund managers are not happy with the regulatory tone in Washington. Among their biggest concerns: the Dodd-Frank law, which was passed in the wake of the financial crisis.
http://jlne.ws/low078