Top Interest Rate Headlines 09-23-11: IMF’s Blanchard Says World Economy Has ‘Enormous Risks’ Now

IMF’s Blanchard Says World Economy Has ‘Enormous Risks’ Now
By Bob Willis and Tom Keene, Bloomberg
European officials need to convince investors that European Union countries aren’t at risk of becoming another Greece as they forge ahead with their own deficit-cutting measures, said Olivier Blanchard, chief economist at the International Monetary Fund.
http://jlne.ws/mXWFYX

Economic Signals Heighten Worries of a Double-Dip
BY SUDEEP REDDY AND BEN CASSELMAN
Is the world heading for another recession?
Fresh data Thursday pointed to a decline in manufacturing activity in both China—a critical engine of the global recovery—and Europe, a sign businesses are bracing for slower growth. Compounding the concern is the political paralysis in Europe and the U.S., where rival parties are divided on how to respond to the crisis.
http://jlne.ws/qotpgu

G20, IMF/World Bank meetings in Washington
Reuters
IMF WESTERN HEMISPHERE DEP'T DIRECTOR NICOLAS EYZAGUIRRE ON U.S. FEDERAL RESERVE'S SO-CALLED 'OPERATION TWIST'
"That kind of a measure is something that would have an effect of appreciating the Latin American currencies. And what has happened is that Latin American currencies have been depreciating not appreciating.
http://jlne.ws/n4itPg

Fed’s Williams Says It’s Unclear If ‘Operation Twist’ or QE Works Better
By Steve Matthews and Klaus Wille, Bloomberg
Federal Reserve Bank of San Francisco President John C. Williams said it’s unclear whether outright purchases of Treasury securities or lengthening their duration such as in the plan announced this week is more effective in boosting the economy.
http://jlne.ws/qdaucL

TREMONTI: Solution To European Crisis Is a Firm Germany
AGI
Italy's economics minister, Giulio Tremonti said in an interview with RAI that Europe is "the epicenter of the crisis. The solution will be found only if Germany takes a more firm position, if it has the courage, the force and vision to invest in Europe, for the good of Europe and for the good of Germany."
http://jlne.ws/n8Mgww

Cost To Insure French Bank Debt Falls 8% On Aid Talk
Mena Fn/Dow Jones
http://jlne.ws/nBHMKr

Money Market Funds Cut European Bank Debt to Lowest Since 2006, Fitch Says
By Christopher Condon, John Glover and Charles Stein, Bloomberg
Money-market mutual funds reduced lending to European banks further last month, with the biggest U.S. funds cutting their holdings to the lowest in at least five years, as the region’s sovereign debt crisis worsened.
http://jlne.ws/nc0tUb

Moody's: Rising Risks Make U.S. Recession an Even Bet 
The probability that the U.S. will be in recession in six months is rising quickly, requiring action by both U.S. and European policymakers.http://jlne.ws/q60qlF

Citi Launches CitiConnect, which provides connectivity for Treasury & Trade Solutions, Securities & Funds Services
Press Release
Citi's Global Transaction Services today announced the launch of its integrated enterprise connectivity solution, CitiConnect. This new connectivity offering provides a wide range of connectivity options to meet clients' unique business needs and provides greater choice and flexibility for integration with their back end systems.
http://jlne.ws/piZBWs

NCUA proposing amendments to its proposed rule governing corporate credit unions
The NCUA is proposing amendments to its proposed rule governing corporate credit unions, previously published on March 1, 2011 (see 76 FR 11164). The original proposal removes references to credit ratings in regulations and proposes alternatives to the use of credit ratings. Among other changes, these amendments would delete the definition of "daily average net risk-weighted assets" and revise the definition of "net assets."
http://jlne.ws/oCCGNa

Fitch:U.S. money fund exposure to European banks declines further
U.S. prime money market funds (MMFs) further reduced their total exposure to European banks as of month-end August 2011, according to Fitch Ratings. European bank exposure currently represents 42.1% of total MMF holdings within Fitch's sample, down from 47.2% as of month-end July. On a dollar basis, MMF exposure to European banks declined by 8% since month-end July and by 27% since month-end May.
http://jlne.ws/pwjOeW

G20 promises collaboration to boost world economy
USA Today
The Group of 20 leading advanced and emerging economies are vowing to work together to boost the struggling global economy and financial system. The G-20 voiced the resolve in a statement, saying its finance ministers and central bank governors are "committed to a strong and coordinated international response to address the renewed challenges facing the global economy."
http://jlne.ws/p2NayW

ECB Ready to Act Next Month If Outlook Worsens 
Bloomberg
The European Central Bank may step up efforts to boost growth and ease financial-market tensions as early as next month, Governing Council members said.
http://jlne.ws/oVCnva

Moody's Downgrades 8 Greek Banks
ABC/AP
Moody's downgraded eight Greek banks Friday, citing their exposure to their government's bonds and the deteriorating economic situation in the country as it struggles to convince creditors it's doing enough to get more bailout cash.
http://jlne.ws/pRUENr