August 11, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Tracking The Global Economy
The Economic Research Department of the Federal Reserve Bank Of St. Louis has introduced a collection of charts that report the current trends for several economic indicators divided by country and also by variable of economic data.
*Access the main research page here.
*Access charts for the U.S. here.
--Christine Nielsen
Lead Stories
Mortgage Rates Hit New Record Low for 2011
Mortgage Banks Rates.com
Mortgage rates on 30 year home loans hit a new low in 2011, and 15 year, 5 year and 1 year mortgage rates hit all time lows in this week’s mortgage rate survey. In Freddie Mac’s Primary Mortgage Market Survey 30 year mortgage rates decreased to 4.32% with 0.7 mortgage points for the week ending August 11, 2011, down from the prior week’s average 30 year mortgage rate of 4.39%. Average mortgage rates today on 30 year loans as reported by MonitorBankRates.com is even lower at 4.27%.
http://jlne.ws/pdvwRg
Aug. 9, 2011 FOMC Meeting Statement
http://jlne.ws/nNdB4L
U.S. 2-Year Notes Yield Falls to Record on Fed Move
By Cordell Eddings and Susanne Walker, Bloomberg
Treasuries rose, pushing 10 and two- year note yields to a all-time lows, after Federal Reserve officials promised to keep benchmark interest rates at record lows at least through mid-2013 in a bid to revive economic growth.
http://jlne.ws/nMqpXg
Nothing New in Obama Remarks
By FLOYD NORRIS, The New York Times
Presidential addresses on days of market panics seldom accomplish very much, but it is not really easy to see why the one President Obama gave this afternoon was scheduled. He got there later than promised. He announced nothing new. He had the same old suggestions for what the government should do — some of them quite reasonable — but gave no reason to hope that the Republicans would agree to any of them.
http://jlne.ws/qkdYqT
Stock Plunge Isn’t a Great Recession Predictor
WSJ.com
By Sudeep Reddy
Is the recent plunge in stocks a sign the economy is entering a recession? J.P. Morgan analysts looked at evidence from past declines, and concluded that it’s not.
http://jlne.ws/p23LAR
Moody's cautious about U.S. deficit cuts plan
By Walter Brandimarte, Reuters
Ratings agency Moody's Investors Service on Monday warned it might also downgrade the U.S. government's credit rating if its planned measures to reduce its budget deficit turned out to be not "credible" after all.
http://jlne.ws/pU8xu9
S and P cuts ratings tied to U.S. sovereign credit
Reuters
Credit ratings for some of the main arteries of the U.S. financial system -- from clearing houses to government mortgage agencies -- were cut one notch to AA-plus by Standard and Poor's Ratings Services on Monday.
http://jlne.ws/rfqwMa
MSRB Provides Municipal Market Guidance On U.S. Sovereign Credit Downgrade
Press Release
http://jlne.ws/omd0Io
Why the U.S. Is Still AAA
By FLOYD NORRIS, The New York Times
Virtually unnoticed last week was that Moody’s kept a Triple A rating on the United States.
http://jlne.ws/nNvrkf
U.S. unlikely to regain AAA rating soon
By Greg Robb, MarketWatch
The United States is unlikely to manage a quick return to the top-tier rating of AAA, a Standard and Poor’s official said Monday. “Given the nature of the debate currently in the country and the polarization of views around fiscal policies right now, we don’t see anything immediately on the horizon that would make an upgrade back to AAA again the most likely scenario,” said David Beers, S and P’s head of global sovereign ratings.
http://jlne.ws/q9PXOa
S and P Cuts Ratings Of Major US Clearinghouses
Jacob Bunge and Melodie Warner, DOW JONES NEWSWIRES
Standard and Poor's Ratings Services cut ratings on the top U.S. financial clearinghouses Monday, as ripple effects from the firm's historic downgrade of U.S. credit spread. S and P lowered ratings on clearing facilities run by the Depository Trust and Clearing Corp. and OCC, previously known as the Options Clearing Corp., to double-A-plus, one step below the coveted triple-A rating, with negative outlooks.
http://jlne.ws/o2q1w0
S and P Lowers Fannie, Freddie Citing Reliance on U.S. Government
Lorraine Woellert, Bloomberg
Standard and Poor's lowered credit ratings for Fannie Mae, Freddie Mac, and other lenders backed by the federal government. The U.S.-sponsored mortgage finance companies were lowered one step from AAA to AA+, S and P said in a statement today. The company said the downgrade reflects the companies' "direct reliance of the U.S. government."
http://jlne.ws/qz76FN
Moody’s forecasts a US downgrade by 2013
Forex NewsNow
Credit rating agency Moody’s Corporation reiterated on Monday that it may also decide to lower the US Debt Rating before 2013, unless the country takes significant steps to reign in it’s spending and increase it’s fiscal discipline.
http://jlne.ws/qb1ffV
Pimco CEO: Downgrade will hurt job market [Video]
http://jlne.ws/pltyr1
Credit Seen Safest Since 2008 as Clearinghouses Control Swaps
By Matthew Leising, Bloomberg
Credit markets, which inflicted more than $2 trillion of losses and writedowns on the world’s biggest financial institutions from 2007 through 2009, are now seen as the safest since before the financial crisis.
http://jlne.ws/pKrDgl
S and P Seen Surrendering to Tea Party Costing U.S. Taxpayer
By Zeke Faux, Bloomberg
Standard and Poor’s, the rating company that downgraded the debt of the United States to AA+ from AAA for the first time, now finds itself assailed by investors led by billionaire Warren Buffett for making a political decision that has more to do with Tea Party politics than the financial stability of the U.S.
http://jlne.ws/rh86mb
Why This Crisis Is Different From the 2008 Financial Crisis
By FRANCESCO GUERRERA, WSJ.com
It is a parallel that is seducing Wall Street bankers and investors: 2011 as a repeat of 2008, the history of financial turmoil playing in one endless loop.
http://jlne.ws/qIUQxM
Origins of the debt showdown
The Washington Post/Bloomberg
In mid-January, newly installed as the GOP House majority leader, Virginia's Eric Cantor rose to the podium inside a spacious hotel ballroom to deliver a message to his troops, including the 87 newcomers who had given the party control of the House. A vote to increase the nation's $14.3 trillion debt limit was coming soon, he told the caucus members who had gathered at the Marriott in Baltimore's Inner Harbor for a closed-door retreat less than 10 days after taking power. Think of it as a "hidden" opportunity, he implored them, a chance to achieve their goal of reining in the federal government and its spending habits...
http://jlne.ws/opm3jt
Geithner to stay on as Treasury chief
Reuters
Treasury Secretary Timothy Geithner, who had considered stepping down after the government borrowing limit was raised, confirmed on Sunday that he will remain at his post at President Barack Obama's request.
http://jlne.ws/qDISsz
10 Questions for Geithner
By JOHN HARWOOD
Shortly after announcing that he would remain on the job as President Obama’s Treasury secretary rather than leave the administration and return home to New York, Timothy F. Geithner sat down with John Harwood of The New York Times and CNBC on Sunday to discuss Standard & Poor’s decision to downgrade the United States government’s credit rating and America’s economic road ahead. Below is a condensed, edited view of their conversation.
http://jlne.ws/oEJzOA
Banks Seek Shelter in ECB
BY MARGIT FEHER AND WILLIAM LAUNDER, WSJ.com
Use of the European Central Bank's overnight lending facility jumped to its highest level in three months Wednesday amid renewed worries over the European banking sector's exposure to Greek debt and a broader economic slowdown.
http://jlne.ws/qshsbT
French banks at center of new funding crunch
Reuters
A new crisis of confidence gripped Europe's banking industry Thursday as its borrowing costs soared, lenders sought emergency funding, and some institutions reviewed exposure to French banks in particular.
http://jlne.ws/oIGSFa
France’s AAA Credit Affirmed by S and P
By John Detrixhe and Anchalee Worrachate, Bloomberg
France’s top credit grade was affirmed by Standard and Poor’s, Moody’s Investors Service and Fitch Ratings as relative yields on the nation’s debt climb on concern that Europe’s sovereign debt crisis is intensifying.
http://jlne.ws/nN2SVr
Europe Considers Ban on Short Selling
STEPHEN CASTLE AND LOUISE STORY, The New York Times/Yahoo! Finance
A European market regulator is considering recommending a temporary ban on negative bets against stocks across the continent, in an effort to stop the tailspin in the markets, according to two people with knowledge of government discussions.
http://jlne.ws/oC2SZo
In U.S. Stress Tests, a Tool to Gauge Contagion in Europe
By Jesse Eisinger, CNBC
In early 2010, top officials at the Federal Reserve began to wonder: how would United States banks hold up through the European debt crisis? Investors were fleeing Greece and Ireland, and starting to get nervous about Portugal and Spain, spreading contagion.
http://jlne.ws/qSPIji
How to make the best of the long malaise
By Joseph Stiglitz, Financial Times
The only good thing about the continuing barrage of bad economic news is that it could have been worse: all three rating agencies could have downgraded the US, stock markets could have fallen further and the US could have defaulted on its debt. The general view is now that in this, the next round of the Great Recession, there is a high risk of things getting worse, with no effective instruments at governments’ disposal. The first point is correct but the second is not quite right.
http://jlne.ws/r0eESt
***CN: Note the writer here.
Tea Party Made Up of 'Freaked Out White Men': Whitney
By: Jeff Cox, CNBC
Tea Party members are primarily “freaked out white men” who pose the greatest political threat to Democrats in 2012, according to banking analyst Meredith Whitney.
http://jlne.ws/ogiH52
CME Group's Terry Duffy Talks Market Reaction to US Downgrade [Video]
CME Group Executive Chairman Terry Duffy was interviewed by Fox Business Network today, where he discussed the US downgraded credit rating from S and P, price movement in treasuries, and new market regulation.
http://jlne.ws/oeeRij
Vital Signs: 4.5 Unemployed for Each Job Opening
By Justin Lahart, WSJ.com
Work is hard to find. For each U.S. job opening at the end of June, there were 4.5 people looking for work, according to Labor Department figures. That was down from a year earlier, when there were 5.4 job seekers for every opening. But in 2007, there were about two job openings for every three unemployed workers.
http://jlne.ws/qHT2xz
How To Explain Negative Interest Rates
24/7 Wall St.
The floor for interest rates is ZERO. Right? Apparently not when extreme conditions arise. Those extreme conditions came today as investors moved solidly into the safety of very short-dated T-bills and the bidding was so intense for a while the real rate was actually a negative yield. The rate technically went to -0.01% on the 1-month bills and this came on the same day that both the S and P and DJIA went into formal correction territory.
http://jlne.ws/qsZA3F
MF Global CEO Corzine Buys $98,638 in Shares After Bond Offering
By Matthew Leising, Bloomberg
Jon Corzine, chief executive officer of MF Global Holdings Ltd., bought about $98,638 worth of the company’s shares a week after the New York broker sold bonds with an interest rate that will rise if he takes a government job.
Billionaire George Soros sued by ex-girlfriend Adriana Ferreyr for reneging on promise of real estate
NY Post
A beautiful Brazilian soap star has the lead role in her own daytime drama, which casts George Soros, the billionaire financier of lefty causes, as a heavy who not only broke her heart, but also reneged on a promise to give her an Upper East Side apartment worth $1.9 million. The drama will be staged in Manhattan Supreme Court, where 28-year-old Adriana Ferreyr yesterday filed a blockbuster $50 million suit charging, among other things, that the frisky octogenarian slapped her around while they were in bed discussing his real-estate betrayal.
http://jlne.ws/pWVmyS
**CN: Perhaps she could take advantage of the low mortgage rates and buy her own condo.
**CN #2:Yes folks, that's octogenarian.
ISDA Publishes Analysis of Counterparty Credit Risk Management in the US OTC Derivatives Markets
Press Release
NEW YORK, Friday, August 5, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) today published a new analysis of counterparty credit risk management in the US over-the-counter (OTC) derivatives markets. The paper examines the extent of counterparty credit losses and notes the efficacy of credit mitigation techniques in the US banking system.
http://jlne.ws/ohQFAa
ESMA Published List Of Registered And Certified Credit Rating Agencies
Press Release
According to the Credit Rating Agencies Regulation ((EC) No 1060/2009), ESMA publishes today the list of those credit rating agencies that as of today were either registered or cirtified in the European Union.
http://jlne.ws/qrBIht
Bank to Charge New Fee to Hold Cash
By LIZ RAPPAPORT, WSJ.com
Bank of New York Mellon Corp. on Thursday took the extraordinary step of telling large clients it will charge them to hold cash.
http://jlne.ws/ppaXgX
Three Things the Fed Could Do Right Now
By Jon Hilsenrath, WSJ.com
Federal Reserve Chairman Ben Bernanke faces tough choices as he prepares for the central bank’s next policy meeting Tuesday and a speech at the Fed’s annual gathering in Jackson Hole, Wyo., later this month. The economy isn’t measuring up even to the Fed’s modest expectations. Inflation rose more than officials expected in the first half of the year. Even if he decides he wants to provide more monetary stimulus to the economy, his options aren’t very appealing.
http://jlne.ws/p54Akk
Events
Valuation and Pricing Methodologies of Debt Instruments - Auction Rate Securities
September 1, 2011
Madison Street Capital (MSC) Is Lead Presenter In This Financial Research Associates Webinar Segment
http://jlne.ws/pxF2sq
FIA Treasury & Rates Forum
September 14, 2011
FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
SEFCON II
October 3, 2011
WMBAA To Examine Role And Operation Of Swap Execution Facilities Under Dodd-Frank
http://jlne.ws/pY4N7S
Economic News
Jobless Claims Fall Slightly
BY LUCA DI LEO AND JEFF BATER, WSJ.com
The number of people claiming new jobless benefits fell slightly last week, a small bright spot in a persistently weak U.S. labor market.
http://jlne.ws/qJOVt6
Wholesale Inventories Up 0.6%; Sales Rise 0.6% in June
By Dennis Moore, The Bond Buyer
Wholesale inventories rose 0.6% in June on a seasonally adjusted basis, the Commerce Department reported Wednesday. That followed a revised 1.7% rise in May.
http://jlne.ws/r7C1Lh
U.S. Productivity Dips
NPR
http://jlne.ws/phX6Y9
Labor Force Participation Hits New Low
By Sara Murray, WSJ.com
Two years into the economic recovery labor force participation has hit a new low. The labor force participation rate, the share of Americans who are working or looking for jobs, declined to 63.9% in July from 64.1% a month earlier, the Labor Department said Friday. July’s numbers were a new low for the measure, which has dropped during the recession and slow recovery to its lowest percentage since the early 1980s.
http://jlne.ws/rsSamq
Beneath Jobs Report Surface Lies Some Ugly Truths
CNBC
Before getting too excited about the modest uptick in net job creation and a slight downward move in the unemployment rate, it’s probably worth a look under the hood.
http://jlne.ws/qS8LXN
White House Chief Economist Goolsbee on US jobs report [Video]
http://jlne.ws/p6G9Bn
Exchanges, Clearing Houses & MTFs
CME Group cuts fees for some asset managers
By: Lynne Marek, Crain's
CME Group Inc. last week reduced fees on some of its interest rate products for asset managers that handle more than $250 billion, as those customers become increasingly bigger traders and as competition in the area intensifies.
http://jlne.ws/oZMydM
CME Interest Rate Chief Resigns, Effective At Year's End
By Howard Packowitz, DOW JONES NEWSWIRES
The chief of CME Group Inc.'s (CME) interest rate product group for the past five-and-a-half years is leaving the company at the end of this year, CME reported Monday. Robin Ross will leave her post at year's end as CME's managing director of interest rate products to "ensure a seamless transition," CME said in a news release.
http://jlne.ws/p8u1jW
CME Group Announces New Heads for Equity and Interest Rate Businesses
Press Release
CHICAGO, Aug. 8, 2011 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the following additions to its product leadership team:
Michael Kilgallen, Managing Director, Equity Products. Kilgallen, 39, will be responsible for advancing the growth strategy for the company's equity index business line. He will be based in New York and will report to Scot Warren, Managing Director, Equity Index Products and Services. Sean Tully, Managing Director, Interest Rate Products. Tully, 47, will be responsible for leading and developing the company's global interest rate business.
http://jlne.ws/cjpXe7
CME, LCH Won’t Drop U.S. Bond Collateral Value After S and P Cut
By Matthew Leising, Bloomberg
CME Group Inc., the world’s largest futures market, and LCH.Clearnet Ltd., owner of the largest interest-rate swap clearinghouse, won’t change how they assess U.S. Treasuries after the debt’s rating was cut. “We will continue to monitor the liquidity environment and advise market participants if the environment changes,” Kim Taylor, president of Chicago-based CME Group’s clearinghouse, said in an e-mailed statement. The company last month increased the discount rate, also known as a haircut, it uses to value the Treasury securities it holds as collateral.
DTCC Statement on FICC Activities Following S and P Rating Change on U.S. Sovereign Debt
Press Release
http://jlne.ws/o98BgO
Firms & Banks
Citadel Securities Shutting Down This Morning
By Bess Levin, Deal Breaker.com
According to Citadel “we’re laying off some employees but not shutting down the entity. This continues to be an ongoing business.”
http://jlne.ws/pBZ0Wm
Bank of New York Mellon plans 1,500 job cuts
USA Today
Bank of New York Mellon said Wednesday that it will cut about 1,500 jobs, or 3% of its work force, the latest sign of the banking industry's painful shrinking.
http://jlne.ws/pgolKX
Goldman reveals 15 days of trading losses
By John McDermott in New York, Financial Times
Goldman Sachs registered trading losses on 15 individual days in its second quarter, underlining a volatile three months during which the bank reduced its risk exposure to tumultuous financial markets.
http://jlne.ws/pECqSY
SEC Probes Goldman Over Libyan Dealings
BY LIZ RAPPAPORT AND RUTH SIMON, WSJ
Goldman Sachs Group Inc. said U.S. securities regulators are investigating whether the securities firm broke bribery laws. Tuesday's disclosure by Goldman of numerous investigations, regulatory reviews and legal action related to its sprawling businesses included a probe of the company's "compliance with the U.S. Foreign Corrupt Practices Act," according to a securities filing.
http://jlne.ws/rlmht0
BofA chief to confront investors
By Tom Braithwaite and Dan McCrum in New York, FT.com
http://jlne.ws/owQgni
BofA boss facing chillin' grillin'
By MARK DeCAMBRE, NY Post
Bank of America boss Brian Moynihan has some explaining to do. The bank chief, who agreed to an investor grilling today at the behest of one of BofA's biggest shareholders, hedge fund manager Bruce Berkowitz of Fairholme Capital, will face an onslaught of questions about his firm's financial health.
http://jlne.ws/pCel7q
Capital One to buy HSBC US credit card arm
Associated Press
Capital One Financial Corp. says it will buy the U.S. credit card arm of Britain's HSBC for a premium of about $2.6 billion as a way to expand its domestic credit card business.
http://jlne.ws/ozI0vw
Morgan Stanley's head of fixed income calls it a day
By Sameera Anand, FinanceAsia
Ranodeb Roy, the head of Morgan Stanley’s Asia-Pacific fixed income division, is quitting the bank and will be replaced by Stephen Glynn, according to an internal memo that FinanceAsia has seen.
http://jlne.ws/ncAyxA
Deutsche Bank Exec Puts Up a Fight
By KEVIN ROOSE, NY Times
At first glance, Richard J. Byrne, the chief executive of Deutsche Bank Securities, doesn’t look much like a warrior. “He isn’t the prototypical person you’d see and think, ‘This guy’s going to beat me up,’ ” said Erik Owings, a professional mixed martial arts fighter who has trained Mr. Byrne since 2008. But given the right circumstances, “if Bruce Lee rose from the dead, Rich could choke him out.”
http://jlne.ws/rsMyvg
Citi poaches bankers for derivatives relaunch
By Jeremy Grant, Financial Times
Citigroup has staked out its ambitions to capture business flowing from sweeping reform of the over-the-counter markets by poaching 14 bankers – mostly from JPMorgan – as the bank relaunches its exchange-traded derivatives business.
http://jlne.ws/ojU9fo
Goldman Said to Make Amends to Buyers After CMBS Deal Is Pulled
By Sarah Mulholland, Bloomberg
Goldman Sachs Group Inc., seeking to placate buyers and guard its reputation, is compensating investors for losses they incurred after a $1.5 billion commercial-mortgage bond deal was pulled last week. The bank is paying clients that purchased the securities and entered into contracts that protect against changes in interest rates and prices for the debt, according to two people familiar with the transaction who declined to be identified because the talks are private. The investors will be paid for contracts that lost money between when the deal was placed and its withdrawal five days later.
http://jlne.ws/pMM3fv
Mortgage Settlement Challenged
By GRETCHEN MORGENSON, NY Times
The New York attorney general is moving to block a proposed $8.5 billion settlement struck in June by Bank of New York Mellon and Bank of America over troubled loan pools issued by Countrywide. A lawsuit filed late Thursday accuses Bank of New York of fraud in its role as trustee overseeing the pools for investors.
http://jlne.ws/nUhU4n
AIG set to sue BofA for $10.5bn
By Tom Braithwaite and Brooke Masters in New York, Financial Times
Bank of America shares dropped as much as 23 per cent on Monday, making it the worst performer in the Standard & Poor’s 500, as the bank faced a $10.5bn lawsuit from AIG over the sale of residential mortgage-backed securities allegedly “marred by fraud, misrepresentations and omissions”.
http://jlne.ws/pTiFi2
Morgan Stanley says US credit rating downgrade could sting more
Economic Times
NEW YORK: Morgan Stanley warned on Monday that worries about the United States' lowered credit rating may have a "material adverse impact" on the bank and broader financial markets beyond what is immediately apparent.
http://jlne.ws/pciTZZ
Auctions & Statistics
Treasury to Sell $12B 5-Yr TIPs on Thursday Aug. 18
By Gary Siegel, The Bond Buyer
The Treasury Department said it will auction $12 billion four-year eight-month inflation-indexed bonds on Thursday, August 18.
http://jlne.ws/otq3X0
Treasury 4-Weeks Go At 0.035% High Yield
By Gary Siegel, The Bond Buyer
The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.035% high yield, a price of 99.997278.
http://jlne.ws/nJxBW8
Regulators
Q&A: ECB’s Mersch on Economic Outlook, Bond Purchases
By Brian Blackstone, WSJ.com
Wall Street Journal reporter Brian Blackstone sat down Wednesday with Luxembourg central bank governor Yves Mersch to discuss the economic and inflation outlook, Spanish and Italian bond purchases and renewed signs of financial stress. The following is a transcript of the interview.
http://jlne.ws/oeWUpe
ECB Buys Italian, Spanish Bonds Again
BY MARK BROWN AND NEELABH CHATURVEDI, WSJ.com
The European Central Bank bought Spanish and Italian bonds for the second day running Tuesday, pushing yields lower and keeping them there, despite extreme volatility in broader financial markets.
http://jlne.ws/qPaxUn
Sarkozy, Merkel to Meet Tuesday
BY NATHALIE BOSCHAT
French President Nicolas Sarkozy is to meet with German chancellor Angela Merkel on Tuesday in Paris to discuss proposals to strengthen the euro zone's economic governance...
http://jlne.ws/poqfuE
Opening Statement, Meeting Of The Commodity Futures Trading Commission, Chairman Gary Gensler
Press Release
http://jlne.ws/prGaE8
Statement Of Support On Three Final Rules Under The Dodd-Frank Act - CFTC Chairman Gary Gensler
Press Release
http://jlne.ws/ptAPwe
OTC
ISDA Publishes Analysis of Counterparty Credit Risk Management in the US OTC Derivatives Markets
The International Swaps and Derivatives Association, Inc. (ISDA) today published a new analysis of counterparty credit risk management in the US over-the-counter (OTC) derivatives markets. The paper examines the extent of counterparty credit losses and notes the efficacy of credit mitigation techniques in the US banking system.
http://jlne.ws/hHMAsV
Global News
Switzerland acts to curb franc's rise
Jonathan Sibun, Telegraph/Yahoo! Finance
Switzerland's central bank warned that it is ready to act to curb the "massive overvaluation" of the Swiss franc after safe-haven investors pushed the currency near parity with the euro and triggered its biggest single-day rise against the dollar.
http://jlne.ws/otVS5Q
Credit Anxiety Hits Shares of French Banks
By LIZ ALDERMAN, The New York Times
Shares of French financial institutions were hammered Wednesday on the Paris stock exchange on mounting fears that France’s own sterling credit rating could be cut if the cost of cleaning up the European debt crisis weighs on the nation and its banks.
http://jlne.ws/oZ4HNH
Despite pledges from world leaders, global markets continue to fall
The Washington Post
Pledges of action by world leaders, and a radical move by the European Central Bank to ease fears of an escalating debt crisis in the region by buying up the troubled debt of Italy and Spain, did not halt another day of bitter losses in global stock markets.
http://jlne.ws/oAEcAK
Bank of Ireland slides back into the red
By Patrick Jenkins, Banking Editor, Financial Times
Bank of Ireland fell deeply into the red in the first half of the year as higher funding costs wiped out more than a quarter of its net interest income.
http://jlne.ws/rm48ro
All UK banks told to draw up ‘living wills’
By Brooke Masters, Chief Regulation Correspondent, Financial Times
All UK deposit-takers and large investment firms will have to draw up “living wills” by the end of next year that would allow them to be wound down over a weekend and quickly return assets to clients,
http://jlne.ws/rpRH4r
Greek and Irish blows knock RBS to $1.1 billion loss
By Sudip Kar-Gupta and Steve Slater, Reuters
Royal Bank of Scotland slid to a pretax loss of 678 million pounds ($1.1 billion) in the second quarter, bruised by writedowns on Greek government bonds and Irish customers struggling to repay loans.
http://jlne.ws/nxEaag
Italy to announce economic reforms
FT.com
http://jlne.ws/qbPAGd
Danske Bank Joins European Bond Market Through MTS BondVision
Press Release
MTS, Europe’s premier facilitator for the electronic fixed income market, today announced that Danske Bank has joined MTS as a market maker on its BondVision market.
http://jlne.ws/oAMfRg
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