Top Interest Rate Headlines 09-12-11: FRBSF: Expect Cont'd Sluggish Growth For Several Quarters, More Normal Recovery Pace In '13 And Beyond

FRBSF: Expect Cont'd Sluggish Growth For Several Quarters, More Normal Recovery Pace In '13 And Beyond
Federal Reserve Bank Of San Francisco
Revisions to second-quarter GDP showed that the U.S. economy grew at a 1% rate, down from the initial estimate of 1.3% reported in July. The change was more than accounted for by downward revisions to net exports and inventories, which tend to be volatile from one quarter to the next.
http://jlne.ws/rm7Omi

Critics of Italian Austerity Plan Find Rallying Point
By ELISABETTA POVOLEDO, The New York Times
In the persistently quarrelsome climate that marks Italian politics, bipartisan agreement tends to be the exception rather than the rule. Unless, it turns out, a city’s patron saint is concerned.
http://jlne.ws/pxJilD

UK joins toughest bank regimes
By Brooke Masters, James Wilson and Matthew Steinglass, FT.com
http://jlne.ws/nuK1B3

Treasury confirms Tiny Tim to attend EcoFin
By Jamie Coleman, ForexLive
Global economic recovery and financial regulation are said to be the topics on his agenda. Maybe he can do some good on regulation. Even Geithner is opposed to a financial transaction tax, and on bank regulation, he got his marching orders today from Jamie Dimon.
http://jlne.ws/nrmiQv

JPMorgan chief says bank rules ‘anti-US’
By Tom Braithwaite and Patrick Jenkins, FT.com
http://jlne.ws/nEMCVc

Italy in talks with China on bonds: BBG
By Jamie Coleman, Forex Live
A quick pop from the 1.3570s to 1.3624 on a Bloomberg headline that Italy is in talks with China’s sovereign wealth fund to buy Italian bonds. China’s been buying this crap for more than a year…why the market would expect miracles in beyond me…They’ve got Greek debt out the ying-yang…(is that a Chinese term? Yes, it means bought to soon).
http://jlne.ws/okjgcI

Woes at French Banks Signal a Broader Crisis
BY DAVID GAUTHIER-VILLARS AND NATHALIE BOSCHAT, WSJ.com
France's largest private-sector banks will likely suffer further credit-rating downgrades this week, people familiar with the matter said, the latest sign that the debt crisis on the euro zone's periphery is slowly infecting the core of the region's financial system.
http://jlne.ws/qeEFfu

Germany’s Schaeuble: Must be prepared for everything
By Jamie Coleman, FX Street
Regarding Greek insolvency, says government has to consider all eventualities EUR/USD sliding again, now at 1.3575.
http://jlne.ws/qIjxQ0

Bank of America to Cut Costs $5 Billion A Year
By Hugh Son, Dawn Kopecki and Max Abelson, Bloomberg
Bank of America Corp. (BAC), the biggest U.S. lender by assets, expects to cut about $5 billion in costs annually by 2013 under Chief Executive Officer Brian T. Moynihan’s plan to bolster profit and the company’s stock.
http://jlne.ws/qLpQ4J

FIA - Remembering 9/11: The Impact on the Futures Industry
Futures Industry Association
http://jlne.ws/peWu6A

Obama sending jobs bill to Congress
By Michael A. Memoli, La Times
After a brief hiatus to mark the 10-year anniversary of the Sept. 11 attacks, President Obama will resume his campaign-style effort to advance his economic plan with a Rose Garden event this morning to announce he is sending the $447-billion bill Congress' way.
http://jlne.ws/oqVr2i

Fed Scrutinizes Capital One-ING Deal
BY VICTORIA MCGRANE AND MAYA JACKSON RANDALL, WSJ.com
The Federal Reserve asked Capital One Financial Corp. to respond to questions that appear aimed at determining whether the proposed acquisition of ING Groep NV's U.S. online-banking business would create a bank so large and complex that its failure would pose a risk to the financial system.
http://jlne.ws/p2GFB0

German financial authority approves Deutsche Börse - NYSE merger
Press Release
Germany’s Federal Financial Supervisory Authority (BaFin) has approved the merger of Deutsche Börse and NYSE Euronext. With BaFin’s decision, the merger has reached an important regulatory milestone in Germany. The BaFin examination is comparable to the shareholder control procedure by the stock exchange regulators. It concerns a significant acquisition of shares in the banks and financial services institutions of the Deutsche Börse Group by the parent company of the new group (Holdco) headquartered in the Netherlands, and the permissibility of this acquisition. This particularly includes Clearstream Banking AG as the central settlement institution for securities transactions, and Eurex Clearing AG as the central counterparty for the derivatives exchange Eurex.
http://jlne.ws/pqXEtt

Europe Stress Seen in French Bank Commercial Paper Rates: Credit Markets
By Matthew Leising, Bloomberg
Societe Generale SA, BNP Paribas SA and Credit Agricole SA (ACA) are being quoted higher rates than their competitors in the commercial paper market as the crisis in the euro zone spreads beyond Greece, Portugal and Italy.
http://jlne.ws/qDKi2P