Obama Signals Openness to Short-Term Debt Extension .
http://jlne.ws/phqZYV
EU warns of economic damage if Greece summit fails
http://jlne.ws/qpKXEG
Debt ceiling scuffle already hurting economy
http://jlne.ws/p4cUK5
Some investors likely to bail if U.S. rating cut
http://jlne.ws/oVQwe8
Goldman to Cut Jobs as Debt Trading Misses
http://jlne.ws/nBV20g
Rabu, 20 Juli 2011
Selasa, 19 Juli 2011
Top Interest Rate Headlines 07-19-11: Housing Starts Hit 6-Month High
Housing starts hit 6-month high
Reuters
Housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased, a government report showed on Tuesday, likely reflecting growing demand for rental apartments.
http://jlne.ws/nqQwn8
Goldman to Cut Jobs as Debt Trading Misses
By Christine Harper, Bloomberg
Goldman Sachs Group Inc. (GS), the U.S. bank that makes most of its money from trading, said it will cut about 1,000 jobs after a plunge in fixed-income revenue that was bigger than analysts estimated.
http://jlne.ws/nBV20g
NYSE Euronext Appoints John Spiegel as Vice President, Interest Rate Business Development for NYSE Liffe U.S.
NYSE Euronext (NYX) today announced that John Spiegel has been appointed as Vice President, Interest Rate Business Development, for NYSE Liffe U.S. In this Chicago-based role, Mr. Spiegel is responsible for expanding the NYSE Liffe U.S. interest rate futures complex by continuing to create and develop strong customer relationships across the spectrum of key market participants, including banks, asset managers, FCMs, and inter-dealer brokers. He will report to Marco Bianchi, Senior Vice President, Head of Business Development, NYSE Liffe U.S.
http://jlne.ws/p7WjJW
FSB releases consultation documents on measures to address systemically important financial institutions
The Financial Stability Board (FSB) and the Basel Committee on Banking Supervision are today launching a public consultation on two documents that set out proposed measures to address the systemic and moral hazard risks posed by systemically important financial institutions (SIFIs). The measures implement the framework contained in the FSB’s recommendations endorsed by the G20 Leaders in November 2010.
http://jlne.ws/nthWmB
Debt Deal Search Intensifies
By CAROL E. LEE And NAFTALI BENDAVID, WSJ.com
Top White House officials and congressional leaders are racing against the clock to devise a scaled-down deficit-reduction proposal that would get both President Barack Obama's signature and enough Republican votes to pass the House in time to avert a government default.
http://jlne.ws/rgSePG
Bank of NY Mellon gains on European uncertainty
FT.com
http://jlne.ws/nLNkcL
Greece debt: Merkel dampens expectations of deal
BBC
German Chancellor Angela Merkel has played down the chances of Thursday's emergency eurozone summit resolving Greece's debt crisis.
http://jlne.ws/q8TIh1
Consumer Spending: The Chicken or the Egg
By DAVID LEONHARDT, The New York Times
Yet more on the consumer bust, this time from David Backus (via Andrew Gelman): The suggestion … is that the economy is growing slowly because consumers aren’t spending money. But how do we know it’s not the reverse: that consumers are spending less because the economy isn’t doing well. As a teacher, I can tell you that it’s almost impossible to get students to understand that the first statement isn’t obviously true. What I’d call the demand-side story (more spending leads to more output) is everywhere, including this piece, from the usually reliable David Leonhardt.
http://jlne.ws/rnCTAd
Rules cleared to identify systemic clearinghouses
By Ronald D. Orol, MarketWatch
A group of financial watchdogs on Monday approved rules for designating derivatives clearinghouses systemically important, a move that will allow regulators to start identifying which of the intermediaries for the $450 trillion swaps industry will be subject to higher capital levels and more examinations.
http://jlne.ws/ruGR9b
Bank of Canada keeps key interest rate at 1%
CBC News
The Canadian dollar soared nearly a penny in trading Tuesday after the Bank of Canada decided to keep its bench-mark overnight interest rate steady at one per cent.
http://jlne.ws/pnKiKE
Start-Up Targets Price Transparency in Bonds, Derivatives
BY KATY BURNE, Dow Jones
A technology start-up called Benchmark Solutions introduced a service Monday offering investors a way to assess if dealers are offering them a fair price on fixed-income and derivatives trades. The company, started by the co-founder of electronic bond and swaps trading platform Tradeweb Markets LLC and backed by private-equity giant Warburg Pincus LLC, promises to try to bring the same level of price transparency to credit markets that exists in the stock markets.
http://jlne.ws/peXCsZ
Tradition sees strong take up of swaps platform
By Philip Stafford, Financial Times
Compagnie Financière Tradition, one of the five biggest interdealer brokers, is shaping up to rival market leader Icap after the Swiss-based group said its new electronic trading platform had conducted trades worth more than E100bn in its first two months of existence.
http://jlne.ws/ogn946
Debt fears lead to US downgrade
By Michael Mackenzie in New York, Financial Times
Egan-Jones has become the first US rating agency to downgrade the country’s sovereign credit rating from triple A to double A plus as it focuses on the rapid rise in outstanding debt over the past five years.
http://jlne.ws/oDKu3c
Royal Bank of Scotland is sued by federal regulators over credit union losses
Los Angeles Times
The National Credit Union Administration lawsuit is seeking $629 million for allegedly selling risky mortgage securities to Western Corporate Federal Credit Union. Federal regulators are seeking $629 million in damages from a Royal Bank of Scotland unit accused of selling riskier-than-advertised mortgage securities to Western Corporate Federal Credit Union, a San Dimas credit union that failed ...
http://jlne.ws/oCayGM
Deutsche Bank, SocGen Face Pressure to Boost Funds After Tests
BusinessWeek
Deutsche Bank AG, Royal Bank of Scotland Group Plc, Societe Generale SA and UniCredit SpA may face pressure from investors to boost capital after scraping through Europe's banking stress tests.
http://jlne.ws/nmzgIl
RBS restructuring head to quit for Lloyds - report
Reuters Finance News (EU) via Yahoo! UK & Ireland Finance
Royal Bank of Scotland's head of restructuring and risk, Nathan Bostock, is leaving the bank to join rival Lloyds Banking Group , Sky News reported on Monday. Bostock is expected ...
http://jlne.ws/ogWw4K
HSBC alerts customer segment of IRS letter
UPI
A bank at the core of a U.S. crackdown on tax scofflaws has alerted Indian-American clients it received an IRS summons seeking U.S. account-holders' names.
http://jlne.ws/p1hBmO
HSBC, Barclays on cost-cutting spree
Business Standard India
In a departure from roaring growth and profit numbers posted last year, two leading British lenders in the country, HSBC and Barclays, are on a cost-cutting spree, involving some retrenchments as they realign their operations.
http://jlne.ws/r15SJJ
Barclays Takes the Lead in IPOs
BusinessWeek
Ros Stephenson's cultivation of private equity firms pays off.
http://jlne.ws/pTFYxk
U.S. regulators sue RBS over mortgage securities
Reuters via Yahoo! UK & Ireland News
Royal Bank of Scotland is facing a second lawsuit from U.S. credit union regulators accusing it of misrepresenting mortgage backed securities that it sold.
http://jlne.ws/okp7eP
Regulators Weigh Changes To Bank Ownership Caps In Swaps Venues
By Jacob Bunge and Katy Burne, DOW JONES
Regulators are reconsidering proposals that would limit the amount of voting power dealer banks have in derivatives clearinghouses and swaps trading platforms, worried that draft rules went too far, according to people involved in the discussions. A proposal last fall from the Commodity Futures Trading Commission would have allowed up to one-fifth of voting equity to be held by any individual member in a clearinghouse or swap execution facility.
http://jlne.ws/nmXDsf
Reuters
Housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased, a government report showed on Tuesday, likely reflecting growing demand for rental apartments.
http://jlne.ws/nqQwn8
Goldman to Cut Jobs as Debt Trading Misses
By Christine Harper, Bloomberg
Goldman Sachs Group Inc. (GS), the U.S. bank that makes most of its money from trading, said it will cut about 1,000 jobs after a plunge in fixed-income revenue that was bigger than analysts estimated.
http://jlne.ws/nBV20g
NYSE Euronext Appoints John Spiegel as Vice President, Interest Rate Business Development for NYSE Liffe U.S.
NYSE Euronext (NYX) today announced that John Spiegel has been appointed as Vice President, Interest Rate Business Development, for NYSE Liffe U.S. In this Chicago-based role, Mr. Spiegel is responsible for expanding the NYSE Liffe U.S. interest rate futures complex by continuing to create and develop strong customer relationships across the spectrum of key market participants, including banks, asset managers, FCMs, and inter-dealer brokers. He will report to Marco Bianchi, Senior Vice President, Head of Business Development, NYSE Liffe U.S.
http://jlne.ws/p7WjJW
FSB releases consultation documents on measures to address systemically important financial institutions
The Financial Stability Board (FSB) and the Basel Committee on Banking Supervision are today launching a public consultation on two documents that set out proposed measures to address the systemic and moral hazard risks posed by systemically important financial institutions (SIFIs). The measures implement the framework contained in the FSB’s recommendations endorsed by the G20 Leaders in November 2010.
http://jlne.ws/nthWmB
Debt Deal Search Intensifies
By CAROL E. LEE And NAFTALI BENDAVID, WSJ.com
Top White House officials and congressional leaders are racing against the clock to devise a scaled-down deficit-reduction proposal that would get both President Barack Obama's signature and enough Republican votes to pass the House in time to avert a government default.
http://jlne.ws/rgSePG
Bank of NY Mellon gains on European uncertainty
FT.com
http://jlne.ws/nLNkcL
Greece debt: Merkel dampens expectations of deal
BBC
German Chancellor Angela Merkel has played down the chances of Thursday's emergency eurozone summit resolving Greece's debt crisis.
http://jlne.ws/q8TIh1
Consumer Spending: The Chicken or the Egg
By DAVID LEONHARDT, The New York Times
Yet more on the consumer bust, this time from David Backus (via Andrew Gelman): The suggestion … is that the economy is growing slowly because consumers aren’t spending money. But how do we know it’s not the reverse: that consumers are spending less because the economy isn’t doing well. As a teacher, I can tell you that it’s almost impossible to get students to understand that the first statement isn’t obviously true. What I’d call the demand-side story (more spending leads to more output) is everywhere, including this piece, from the usually reliable David Leonhardt.
http://jlne.ws/rnCTAd
Rules cleared to identify systemic clearinghouses
By Ronald D. Orol, MarketWatch
A group of financial watchdogs on Monday approved rules for designating derivatives clearinghouses systemically important, a move that will allow regulators to start identifying which of the intermediaries for the $450 trillion swaps industry will be subject to higher capital levels and more examinations.
http://jlne.ws/ruGR9b
Bank of Canada keeps key interest rate at 1%
CBC News
The Canadian dollar soared nearly a penny in trading Tuesday after the Bank of Canada decided to keep its bench-mark overnight interest rate steady at one per cent.
http://jlne.ws/pnKiKE
Start-Up Targets Price Transparency in Bonds, Derivatives
BY KATY BURNE, Dow Jones
A technology start-up called Benchmark Solutions introduced a service Monday offering investors a way to assess if dealers are offering them a fair price on fixed-income and derivatives trades. The company, started by the co-founder of electronic bond and swaps trading platform Tradeweb Markets LLC and backed by private-equity giant Warburg Pincus LLC, promises to try to bring the same level of price transparency to credit markets that exists in the stock markets.
http://jlne.ws/peXCsZ
Tradition sees strong take up of swaps platform
By Philip Stafford, Financial Times
Compagnie Financière Tradition, one of the five biggest interdealer brokers, is shaping up to rival market leader Icap after the Swiss-based group said its new electronic trading platform had conducted trades worth more than E100bn in its first two months of existence.
http://jlne.ws/ogn946
Debt fears lead to US downgrade
By Michael Mackenzie in New York, Financial Times
Egan-Jones has become the first US rating agency to downgrade the country’s sovereign credit rating from triple A to double A plus as it focuses on the rapid rise in outstanding debt over the past five years.
http://jlne.ws/oDKu3c
Royal Bank of Scotland is sued by federal regulators over credit union losses
Los Angeles Times
The National Credit Union Administration lawsuit is seeking $629 million for allegedly selling risky mortgage securities to Western Corporate Federal Credit Union. Federal regulators are seeking $629 million in damages from a Royal Bank of Scotland unit accused of selling riskier-than-advertised mortgage securities to Western Corporate Federal Credit Union, a San Dimas credit union that failed ...
http://jlne.ws/oCayGM
Deutsche Bank, SocGen Face Pressure to Boost Funds After Tests
BusinessWeek
Deutsche Bank AG, Royal Bank of Scotland Group Plc, Societe Generale SA and UniCredit SpA may face pressure from investors to boost capital after scraping through Europe's banking stress tests.
http://jlne.ws/nmzgIl
RBS restructuring head to quit for Lloyds - report
Reuters Finance News (EU) via Yahoo! UK & Ireland Finance
Royal Bank of Scotland's head of restructuring and risk, Nathan Bostock, is leaving the bank to join rival Lloyds Banking Group , Sky News reported on Monday. Bostock is expected ...
http://jlne.ws/ogWw4K
HSBC alerts customer segment of IRS letter
UPI
A bank at the core of a U.S. crackdown on tax scofflaws has alerted Indian-American clients it received an IRS summons seeking U.S. account-holders' names.
http://jlne.ws/p1hBmO
HSBC, Barclays on cost-cutting spree
Business Standard India
In a departure from roaring growth and profit numbers posted last year, two leading British lenders in the country, HSBC and Barclays, are on a cost-cutting spree, involving some retrenchments as they realign their operations.
http://jlne.ws/r15SJJ
Barclays Takes the Lead in IPOs
BusinessWeek
Ros Stephenson's cultivation of private equity firms pays off.
http://jlne.ws/pTFYxk
U.S. regulators sue RBS over mortgage securities
Reuters via Yahoo! UK & Ireland News
Royal Bank of Scotland is facing a second lawsuit from U.S. credit union regulators accusing it of misrepresenting mortgage backed securities that it sold.
http://jlne.ws/okp7eP
Regulators Weigh Changes To Bank Ownership Caps In Swaps Venues
By Jacob Bunge and Katy Burne, DOW JONES
Regulators are reconsidering proposals that would limit the amount of voting power dealer banks have in derivatives clearinghouses and swaps trading platforms, worried that draft rules went too far, according to people involved in the discussions. A proposal last fall from the Commodity Futures Trading Commission would have allowed up to one-fifth of voting equity to be held by any individual member in a clearinghouse or swap execution facility.
http://jlne.ws/nmXDsf
IMF Executive Board Concludes Article IV Consultation on Euro Area Policies
IMF Executive Board Concludes Article IV Consultation on Euro Area Policies
Public Information Notice (PIN) No. 11/91
July 19, 2011
Public Information Notices (PINs) form part of the International Monetary Fund's (IMF) efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.
Executive Board Assessment
Executive Directors noted the risks that the euro area sovereign debt crisis poses to both the European and the global recoveries, and called for strong policy implementation in the program countries, a more consistent effort across the euro area to restore market confidence, and a significant strengthening of economic governance, building on current efforts.
Directors agreed that growth has rebounded but noted the increasing disparities among member states and the large tail risk from sovereign stresses combined with pockets of financial fragility. They noted that, if these stresses remain contained and the recovery stays on track, planned fiscal consolidation should continue and there would be room for gradually phasing out monetary policy accommodation. However, given the continued tensions in some sovereign markets, Directors saw a need to maintain unconventional monetary support as long as necessary and raise bank capital buffers beyond the requirements of Basel III.
Directors urged a comprehensive and concerted approach for effectively addressing the sovereign debt crisis. Strong implementation of existing commitments should be supported with adequate financing on terms supporting debt sustainability and private sector based solutions to banking problems. At the euro-area level, Directors stressed a number of essential actions. First, they urged a rapid implementation of the commitment to scale up the capacity of the European Financial Stability Facility (EFSF) and supported a more flexible use of the EFSF as a backstop for sovereign and banking problems. Second, Directors called for clarity in the approach to private sector involvement with regard to ongoing programs and in the context of the European Stability Mechanism. And third, they called for immediate measures to strengthen the financial system through adequate capitalization and a strong follow up to the stress-test.
Directors saw the establishment of the ESAs and the ESRB as an opportunity to bolster the economic governance framework by building a strong and harmonized regulatory and supervisory environment for the single financial market. They called for improving institutions for crisis management and resolution, with an agreed burden sharing solution and common backstop. They also saw a need for a flexible macro-prudential toolkit, coordinated by the ESRB to support reciprocity and address home-host coordination.
Directors emphasized the need to push forward with fiscal consolidation and structural reforms. In this context, they welcomed the efforts to strengthen the SGP and improve national fiscal frameworks, coordinate policies, foster structural reform, and reduce imbalances, underscoring that more binding procedures would be helpful. They saw deeper financial and economic integration, including by closing the competitiveness gaps, as a precondition for unleashing the euro area’s growth potential.
Directors concurred with the findings of the spillovers analysis that spillovers could be large if stress in euro-area crisis countries spreads to other members. They emphasized the need to stem contagion through a cohesive and cooperative approach, noting that delays in resolving the crisis could be costly for the euro area and the global economy. Directors also noted that the rest of the world would profit from policies that lift the euro area’s growth potential.
See the entire IMF notice here.
Public Information Notice (PIN) No. 11/91
July 19, 2011
Public Information Notices (PINs) form part of the International Monetary Fund's (IMF) efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.
Executive Board Assessment
Executive Directors noted the risks that the euro area sovereign debt crisis poses to both the European and the global recoveries, and called for strong policy implementation in the program countries, a more consistent effort across the euro area to restore market confidence, and a significant strengthening of economic governance, building on current efforts.
Directors agreed that growth has rebounded but noted the increasing disparities among member states and the large tail risk from sovereign stresses combined with pockets of financial fragility. They noted that, if these stresses remain contained and the recovery stays on track, planned fiscal consolidation should continue and there would be room for gradually phasing out monetary policy accommodation. However, given the continued tensions in some sovereign markets, Directors saw a need to maintain unconventional monetary support as long as necessary and raise bank capital buffers beyond the requirements of Basel III.
Directors urged a comprehensive and concerted approach for effectively addressing the sovereign debt crisis. Strong implementation of existing commitments should be supported with adequate financing on terms supporting debt sustainability and private sector based solutions to banking problems. At the euro-area level, Directors stressed a number of essential actions. First, they urged a rapid implementation of the commitment to scale up the capacity of the European Financial Stability Facility (EFSF) and supported a more flexible use of the EFSF as a backstop for sovereign and banking problems. Second, Directors called for clarity in the approach to private sector involvement with regard to ongoing programs and in the context of the European Stability Mechanism. And third, they called for immediate measures to strengthen the financial system through adequate capitalization and a strong follow up to the stress-test.
Directors saw the establishment of the ESAs and the ESRB as an opportunity to bolster the economic governance framework by building a strong and harmonized regulatory and supervisory environment for the single financial market. They called for improving institutions for crisis management and resolution, with an agreed burden sharing solution and common backstop. They also saw a need for a flexible macro-prudential toolkit, coordinated by the ESRB to support reciprocity and address home-host coordination.
Directors emphasized the need to push forward with fiscal consolidation and structural reforms. In this context, they welcomed the efforts to strengthen the SGP and improve national fiscal frameworks, coordinate policies, foster structural reform, and reduce imbalances, underscoring that more binding procedures would be helpful. They saw deeper financial and economic integration, including by closing the competitiveness gaps, as a precondition for unleashing the euro area’s growth potential.
Directors concurred with the findings of the spillovers analysis that spillovers could be large if stress in euro-area crisis countries spreads to other members. They emphasized the need to stem contagion through a cohesive and cooperative approach, noting that delays in resolving the crisis could be costly for the euro area and the global economy. Directors also noted that the rest of the world would profit from policies that lift the euro area’s growth potential.
See the entire IMF notice here.
Senin, 18 Juli 2011
Top Interest Rate Headlines 07-18-11: Politicians Can't Agree on Debt? Well, Neither Can Economists
Politicians Can't Agree on Debt? Well, Neither Can Economists
CNBC
The politicians grappling over how to pay the nation’s debts have been contributing to the heat of summer with back-and-forth charges that their opponents are disregarding the laws of economics.
http://jlne.ws/nnFmOu
Obama Picks Consumer Bureau Leader
The Daily Beast
It looks as though Elizabeth Warren will be headed back to Harvard: President Obama has picked Richard Cordray, the former attorney general of Ohio, to lead the Consumer Financial Protection Bureau.
http://jlne.ws/oidTLE
Investors Break Their Bonds to Ratings Agencies
Reuters
Some of the world's largest asset managers are cutting ties to credit rating agencies, potentially signaling the beginning of the end of their grip on global financial markets.
http://jlne.ws/nnCZnN
Fed Forecast Buoyed by Dudley Expecting Exports
By Caroline Salas Gage, Bloomberg
Denise Morrison, the incoming chief executive officer of Campbell Soup Co. (CPB), outlined a strategic plan last week after the world’s largest soup maker failed to attract as many consumers as estimated during the recession. A key component: Sell more food overseas.
http://jlne.ws/nOSqbH
Homebuilder Confidence in U.S. Rose in July
By Bob Willis, Bloomberg
Confidence among U.S. homebuilders improved in July from a nine-month low as executives turned less pessimistic on the outlook for sales.
http://jlne.ws/rgcVZC
Tim Geithner: Sides are moving closer on debt deal
By JENNIFER EPSTEIN, Politico
Treasury Secretary Timothy Geithner said on Monday there’s progress on the debt talks and he is “absolutely” certain that President Barack Obama and congressional Republicans will be able to reach a deal to raise the ceiling ahead of the August 2 deadline.
http://jlne.ws/nB5Pxk
Sovereign Debt Weakens European Banks
By LANDON THOMAS Jr., The New York Times
European banks for years bolstered their balance sheets with assets considered safe and secure: the sovereign debt of European countries.
http://jlne.ws/q9aa7H
Fitch: Rating Linkages to the U.S. Sovereign Rating A Sector and Transaction Analysis
Report - Registration required
http://jlne.ws/mOI8kr
ICE credit clearer bulks up, gets Dodd-Frank ready
By Jonathan Spicer, Reuters
IntercontinentalExchange Inc's (ICE.N) U.S. clearinghouse for credit derivatives, known as ICE Trust US, will add nearly a dozen formal users and become a new entity approved by the Dodd-Frank financial overhaul. The clearinghouse, which will be renamed ICE Clear Credit, added 11 bank units as formal "clearing participants," bulking up a group of heavyweight market players that has helped ICE establish itself as the top central counterparty for U.S. credit default swaps (CDS).
http://jlne.ws/oXnc3r
Plan D stands for default ... and the death of the euro
By Wolfgang Münchau, Financial Times
The biggest single danger in the eurozone crisis now is that events are moving too fast for Europe’s complacent political leadership. Last week, the crisis reached Italy. And the European Union looked the other way.
http://jlne.ws/rrujab
Spain and Italy top results in stress tests
By Patrick Jenkins and Brooke Masters in London and Quentin Peel in Berlin - Financial Times
Spain and Italy’s leading banks were the strongest performers in last week’s European stress tests, in a surprise result that could help relieve the funding pressure that had been building on them.
http://jlne.ws/olkc61
ECB and Merkel clash over Greece
By Peter Spiegel and Stanley Pignal in Brussels and Quentin Peel in Berlin - Financial Times
The head of the European Central Bank placed a major obstacle on the path to a new agreement on a Greek financial bail-out, saying the bank could not accept defaulted bonds as collateral, potentially cutting off fundng from the Greek banking system.
http://jlne.ws/oAOBAb
Sovereign Debt Weakens European Banks
New York Times
The latest bank stress test revealed how exposed banks are to the government bonds of Greece, Portugal, Spain and Italy.
http://jlne.ws/ovBR87
Southern Exposure for Europe Banks
BY DAVID ENRICH , WSJ
Europe's banks are sitting on vast quantities of loans to individuals and businesses in cash-strapped Southern European countries, highlighting how plain-vanilla loans, not just government debt, pose potential risks to the Continent's troubled banking system.
http://jlne.ws/p5Zcni
Citigroup Says $22 Billion at Risk in Five European Nations
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank, estimated it has at least $22 billion in loans, trading assets and other "exposures" to Greece, Italy, Portugal, Spain and Ireland.
http://jlne.ws/r7Yph1
Citigroup goes on the offense: hiring, expansion
San Francisco Chronicle
For 2 1/2 years, Vikram Pandit was forced to hunker down to fix Citigroup's troubled businesses and fend off the bank's critics in Washington. Now, after reporting a 24 percent profit increase for the second quarter,...
http://jlne.ws/pELvDG
Citigroup investigates charge it ignored service members act
Pittsburgh Post-Gazette
Banking giant Citigroup is looking into allegations in a federal lawsuit filed by Sewickley-area lawyers that it ignored a law barring most foreclosures on homes owned by active-duty soldiers.
http://jlne.ws/rthxvQ
CNBC
The politicians grappling over how to pay the nation’s debts have been contributing to the heat of summer with back-and-forth charges that their opponents are disregarding the laws of economics.
http://jlne.ws/nnFmOu
Obama Picks Consumer Bureau Leader
The Daily Beast
It looks as though Elizabeth Warren will be headed back to Harvard: President Obama has picked Richard Cordray, the former attorney general of Ohio, to lead the Consumer Financial Protection Bureau.
http://jlne.ws/oidTLE
Investors Break Their Bonds to Ratings Agencies
Reuters
Some of the world's largest asset managers are cutting ties to credit rating agencies, potentially signaling the beginning of the end of their grip on global financial markets.
http://jlne.ws/nnCZnN
Fed Forecast Buoyed by Dudley Expecting Exports
By Caroline Salas Gage, Bloomberg
Denise Morrison, the incoming chief executive officer of Campbell Soup Co. (CPB), outlined a strategic plan last week after the world’s largest soup maker failed to attract as many consumers as estimated during the recession. A key component: Sell more food overseas.
http://jlne.ws/nOSqbH
Homebuilder Confidence in U.S. Rose in July
By Bob Willis, Bloomberg
Confidence among U.S. homebuilders improved in July from a nine-month low as executives turned less pessimistic on the outlook for sales.
http://jlne.ws/rgcVZC
Tim Geithner: Sides are moving closer on debt deal
By JENNIFER EPSTEIN, Politico
Treasury Secretary Timothy Geithner said on Monday there’s progress on the debt talks and he is “absolutely” certain that President Barack Obama and congressional Republicans will be able to reach a deal to raise the ceiling ahead of the August 2 deadline.
http://jlne.ws/nB5Pxk
Sovereign Debt Weakens European Banks
By LANDON THOMAS Jr., The New York Times
European banks for years bolstered their balance sheets with assets considered safe and secure: the sovereign debt of European countries.
http://jlne.ws/q9aa7H
Fitch: Rating Linkages to the U.S. Sovereign Rating A Sector and Transaction Analysis
Report - Registration required
http://jlne.ws/mOI8kr
ICE credit clearer bulks up, gets Dodd-Frank ready
By Jonathan Spicer, Reuters
IntercontinentalExchange Inc's (ICE.N) U.S. clearinghouse for credit derivatives, known as ICE Trust US, will add nearly a dozen formal users and become a new entity approved by the Dodd-Frank financial overhaul. The clearinghouse, which will be renamed ICE Clear Credit, added 11 bank units as formal "clearing participants," bulking up a group of heavyweight market players that has helped ICE establish itself as the top central counterparty for U.S. credit default swaps (CDS).
http://jlne.ws/oXnc3r
Plan D stands for default ... and the death of the euro
By Wolfgang Münchau, Financial Times
The biggest single danger in the eurozone crisis now is that events are moving too fast for Europe’s complacent political leadership. Last week, the crisis reached Italy. And the European Union looked the other way.
http://jlne.ws/rrujab
Spain and Italy top results in stress tests
By Patrick Jenkins and Brooke Masters in London and Quentin Peel in Berlin - Financial Times
Spain and Italy’s leading banks were the strongest performers in last week’s European stress tests, in a surprise result that could help relieve the funding pressure that had been building on them.
http://jlne.ws/olkc61
ECB and Merkel clash over Greece
By Peter Spiegel and Stanley Pignal in Brussels and Quentin Peel in Berlin - Financial Times
The head of the European Central Bank placed a major obstacle on the path to a new agreement on a Greek financial bail-out, saying the bank could not accept defaulted bonds as collateral, potentially cutting off fundng from the Greek banking system.
http://jlne.ws/oAOBAb
Sovereign Debt Weakens European Banks
New York Times
The latest bank stress test revealed how exposed banks are to the government bonds of Greece, Portugal, Spain and Italy.
http://jlne.ws/ovBR87
Southern Exposure for Europe Banks
BY DAVID ENRICH , WSJ
Europe's banks are sitting on vast quantities of loans to individuals and businesses in cash-strapped Southern European countries, highlighting how plain-vanilla loans, not just government debt, pose potential risks to the Continent's troubled banking system.
http://jlne.ws/p5Zcni
Citigroup Says $22 Billion at Risk in Five European Nations
BusinessWeek
Citigroup Inc., the third-biggest U.S. bank, estimated it has at least $22 billion in loans, trading assets and other "exposures" to Greece, Italy, Portugal, Spain and Ireland.
http://jlne.ws/r7Yph1
Citigroup goes on the offense: hiring, expansion
San Francisco Chronicle
For 2 1/2 years, Vikram Pandit was forced to hunker down to fix Citigroup's troubled businesses and fend off the bank's critics in Washington. Now, after reporting a 24 percent profit increase for the second quarter,...
http://jlne.ws/pELvDG
Citigroup investigates charge it ignored service members act
Pittsburgh Post-Gazette
Banking giant Citigroup is looking into allegations in a federal lawsuit filed by Sewickley-area lawyers that it ignored a law barring most foreclosures on homes owned by active-duty soldiers.
http://jlne.ws/rthxvQ
Jumat, 15 Juli 2011
Top Interest Rate Headlines 07-15-11: S&P: U.S. Debt Cut May Cascade To Other Entities
S&P: U.S. Debt Cut May Cascade to Other Entities
Reuters
A wide assortment of U.S. entities directly linked or reliant on the federal government's credit rating might suffer a ``knock-on'' effect and be downgraded if the nation loses its AAA rating, Standard & Poor's said in a statement Friday.
http://jlne.ws/o5w5GB
Greek rescue goes long
IFR
Eurozone officials are working on a new plan to restructure Greece’s sovereign debt. Earlier French-led proposals to roll over debt have been shelved and discussions now centre on replacing old debt with super-long bonds of up to 40 years. Such issuance would allow banks to avoid writing down their holdings, and would also reduce the country’s immediate repayments. Christopher Spink reports.
http://jlne.ws/oyD9fa
S&P Threatens Broad Downgrade of Finance Companies
CNBC
Standard & Poor's Friday put a broad range of financial firms on negative credit watch, warning they could all be downgraded if the United States has its credit rating cut.
http://jlne.ws/mRU5ej
European Banks Urged to Bolster Reserves Following Stress Tests
By JULIA WERDIGIER AND JACK EWING, The New York Times
About two dozen European banks were put under official pressure Friday to bolster their reserves, after a much-anticipated test of whether they would be able to survive such economic shocks as a further deterioration in the sovereign debt crisis.
http://jlne.ws/qMv2va
U.S. probes Credit Suisse for aiding tax evasion
By Katie Reid and Chris Vellacott, Reuters
Swiss bank Credit Suisse is being probed by the U.S. Department of Justice as part of a broader investigation into banks suspected of helping Americans evade taxes.
http://jlne.ws/qtkGvG
ICE credit clearer bulks up, gets Dodd-Frank ready
By Jonathan Spicer, Reuters
IntercontinentalExchange Inc's U.S. clearinghouse for credit derivatives, known as ICE Trust US, will add nearly a dozen formal users and become a new entity approved by the Dodd-Frank financial overhaul.
http://jlne.ws/rj9QVi
BofA Drops Below $10, First Time in 2 Years
By Rick Green, Bloomberg
Bank of America Corp. (BAC), the biggest U.S. lender by assets, fell below $10 a share in New York trading today as concern mounted about the company’s ability to restore profit.
http://jlne.ws/oDJZKI
8 Banks Fail EU 'Stress Tests'
BY DAVID ENRICH, WSJ.com
European regulators, trying to douse the Continent's financial crisis, unveiled the results of their banking "stress tests," but the small number of lenders that flunked the exams provoked skepticism.
http://jlne.ws/qZiQGm
Italy to give final OK to austerity package
By Alessandra Rizzo, The Daily News
Italy passed a —70 billion ($99 billion) austerity package on Friday in a move considered crucial to preventing the eurozone's third-largest economy from succumbing to the debt crisis.
http://jlne.ws/qsurAo
Obama laying out why he didn't press harder for Simpson-Bowles
By Jeanne Sahadi, CNNMoney
Last December, the bipartisan debt reduction commission that President Obama created put out a series of recommendations supported by a majority of its members.
http://bit.ly/p0pk2W
Industrial Production in U.S. Climbs 0.2%
By Bob Willis, Bloomberg
Industrial production in the U.S. rose less than forecast in June, restrained by declines in the output of autos and business equipment.
http://jlne.ws/n7ff5g
CPI: Inflation retreats on lower gas prices
CNN Money
Falling prices at the pump pushed inflation lower in June, but consumers are still paying significantly more than they were last summer.
http://jlne.ws/q2lseD
Obama Returns to the Podium to Discuss Debt Talks
By Michael D. Shear, The New York Times
President Obama on Friday reiterated his desire to reach a grand bargain that would deal with the nation’s long-term debt problems even as leaders in Washington take action to avoid a financial default by the government.
http://jlne.ws/o01CIU
Fed Members Release Financial Reports
By Jeffrey Sparshott and Andrew Ackerman
Federal Reserve Vice Chairman Janet Yellen stands as potentially the wealthiest member of the central bank’s board of governors since joining in October.
http://jlne.ws/nfY7gT
Reuters
A wide assortment of U.S. entities directly linked or reliant on the federal government's credit rating might suffer a ``knock-on'' effect and be downgraded if the nation loses its AAA rating, Standard & Poor's said in a statement Friday.
http://jlne.ws/o5w5GB
Greek rescue goes long
IFR
Eurozone officials are working on a new plan to restructure Greece’s sovereign debt. Earlier French-led proposals to roll over debt have been shelved and discussions now centre on replacing old debt with super-long bonds of up to 40 years. Such issuance would allow banks to avoid writing down their holdings, and would also reduce the country’s immediate repayments. Christopher Spink reports.
http://jlne.ws/oyD9fa
S&P Threatens Broad Downgrade of Finance Companies
CNBC
Standard & Poor's Friday put a broad range of financial firms on negative credit watch, warning they could all be downgraded if the United States has its credit rating cut.
http://jlne.ws/mRU5ej
European Banks Urged to Bolster Reserves Following Stress Tests
By JULIA WERDIGIER AND JACK EWING, The New York Times
About two dozen European banks were put under official pressure Friday to bolster their reserves, after a much-anticipated test of whether they would be able to survive such economic shocks as a further deterioration in the sovereign debt crisis.
http://jlne.ws/qMv2va
U.S. probes Credit Suisse for aiding tax evasion
By Katie Reid and Chris Vellacott, Reuters
Swiss bank Credit Suisse is being probed by the U.S. Department of Justice as part of a broader investigation into banks suspected of helping Americans evade taxes.
http://jlne.ws/qtkGvG
ICE credit clearer bulks up, gets Dodd-Frank ready
By Jonathan Spicer, Reuters
IntercontinentalExchange Inc's U.S. clearinghouse for credit derivatives, known as ICE Trust US, will add nearly a dozen formal users and become a new entity approved by the Dodd-Frank financial overhaul.
http://jlne.ws/rj9QVi
BofA Drops Below $10, First Time in 2 Years
By Rick Green, Bloomberg
Bank of America Corp. (BAC), the biggest U.S. lender by assets, fell below $10 a share in New York trading today as concern mounted about the company’s ability to restore profit.
http://jlne.ws/oDJZKI
8 Banks Fail EU 'Stress Tests'
BY DAVID ENRICH, WSJ.com
European regulators, trying to douse the Continent's financial crisis, unveiled the results of their banking "stress tests," but the small number of lenders that flunked the exams provoked skepticism.
http://jlne.ws/qZiQGm
Italy to give final OK to austerity package
By Alessandra Rizzo, The Daily News
Italy passed a —70 billion ($99 billion) austerity package on Friday in a move considered crucial to preventing the eurozone's third-largest economy from succumbing to the debt crisis.
http://jlne.ws/qsurAo
Obama laying out why he didn't press harder for Simpson-Bowles
By Jeanne Sahadi, CNNMoney
Last December, the bipartisan debt reduction commission that President Obama created put out a series of recommendations supported by a majority of its members.
http://bit.ly/p0pk2W
Industrial Production in U.S. Climbs 0.2%
By Bob Willis, Bloomberg
Industrial production in the U.S. rose less than forecast in June, restrained by declines in the output of autos and business equipment.
http://jlne.ws/n7ff5g
CPI: Inflation retreats on lower gas prices
CNN Money
Falling prices at the pump pushed inflation lower in June, but consumers are still paying significantly more than they were last summer.
http://jlne.ws/q2lseD
Obama Returns to the Podium to Discuss Debt Talks
By Michael D. Shear, The New York Times
President Obama on Friday reiterated his desire to reach a grand bargain that would deal with the nation’s long-term debt problems even as leaders in Washington take action to avoid a financial default by the government.
http://jlne.ws/o01CIU
Fed Members Release Financial Reports
By Jeffrey Sparshott and Andrew Ackerman
Federal Reserve Vice Chairman Janet Yellen stands as potentially the wealthiest member of the central bank’s board of governors since joining in October.
http://jlne.ws/nfY7gT
Kamis, 14 Juli 2011
July 14, 2011: Credit Rating Agencies Moved Closer To An Unprecedented Downgrade Of The U.S. Government's Debt [NEWSLETTER]
Conversation Starter
Five Minutes With Neal Wolkoff, chief executive officer of ELX Futures, L.P.
There was some excitement at the headquarters for ELX Futures L.P. over the weekend. The exchange - which was founded in 2007 and launched in 2009
and is backed by a consortium of founding partners comprising major global investment banks and market making firms - celebrated its second
anniversary. Neal Wolkoff, chief executive officer of ELX, took few minutes this week to talk about the occasion and the outlook at the
exchange at this juncture.
Q: There was an anniversary celebrated at ELX over the weekend. Could you tell me the significance of the occasion?
A: Our two-year anniversary was a big milestone. It cemented ELX’s place in the futures marketplace as a long-term competitor to the CME Group. I
was personally very proud of my team and the partners behind ELX. We still have much more to accomplish, but the past two years of working hard to
build an exchange from scratch has been remarkable and rewarding. We celebrated with an internal party for the staff. We take great pride in the
anniversary.
Q: Is ELX where you had anticipated it would be at this juncture? Why or why not.
A: When we launched, I wanted ELX to be a competitive alternative that offered lowered fees, state-of-the-art technology and attractive services for our
customers. I believe we achieved all of that.
Q: Which products have gained the most traction at the exchange thus far? Why do you think this is so?
A: U.S. Treasuries and Eurodollars both made their mark and we’re gaining market share and open interest. Do we want to launch new products?
That’s a definite yes.
Q: Is the goal at this point to take the lead in terms of market share for benchmark products such as the 30-year and Eurodollars, or is there another
goal? If there is another goal, what is the goal?
A: We would like to grow our market share on all our products, introduce new products and attract new customers and focus on gaining more
institutional clients. I think ELX is moving in the right direction and it would take very little to move us a remarkable amount forward.
There are going to be great synergies in terms of OTC and derivatives that would result in greater participation. It would make the client base
potentially larger and create opportunities for us.There has been unclear direction in the economy. Futures exchanges are important in strong economic
times as well as weak.
Q: Which products are undergoing more development?
A: European interest rates are undergoing more development. They have not been introduced yet at ELX. Our goals for the rest of this year are to really
create greater ties between ELX, our investors and the buy-side clients of our investors, and we think there are great opportunities for synergies in the
clearing of these products with European products. We haven’t launched yet, but we have it thoroughly in our plans to roll this product out.
Q: ELX has touted the technology it offers its customers as superior. Why is it superior to other offerings out there?
A: We use eSpeed technology that has been proven to be faster and more efficient. We’re very happy that our technology platform has been solid and
stable for the past two years and we are planning for even more advancements in our technology. The platform allows users to access cash and futures
simultaneously – without having to deal with the latency of trading separate markets. Over time, some OTC products will end up trading and looking more
exchange like. We certainly would want to be in the mix.
Q: What is your take on the current state of Dodd-Frank regulatory efforts? Do you anticipate any key changes in ELX's target areas?
A: Dodd-Frank won’t represent major change to exchanges and how we’ll be governed. We’re now fully regulated by the CFTC. It does impose some
additional rules on products and the like. There will be more synergies in OTC futures, more opportunities for cost savings. I do think the market will want
to have the kind of open access to clearing that Dodd-Frank promises.
Q: What can we expect in the future from ELX?
A: We plan to launch new products and new business initiatives to attract new customers.
-- Christine Nielsen
------------------------------------
MarketsWiki Questions: Exploring Financial Technology - an interactive video series and event on Oct. 6, 2011 in Chicago
Question 3 Now Available
Ahead of our MarketsWiki Questions: Exploring Financial Technology event in October, we're asking experts in the financial services industry seven questions and providing the best answers in an interactive video format. Question 3: Whose responsibility is risk management technology today, and what is the best solution for risk management?
http://jlne.ws/kbEq3v
Lead Stories
Raters Put U.S. on Notice
By DAMIAN PALETTA, CAROL E. LEE and MATT PHILLIPS, WSJ.com
Credit rating agencies moved closer to an unprecedented downgrade of the U.S. government's debt amid deteriorating talks in Washington, with President Barack Obama abruptly walking out of a key meeting Wednesday with Republicans seeking a deal to raise the federal borrowing limit.
http://jlne.ws/qfLROS
*CN: According to this article, a downgrade risks pushing interest rates higher, stock markets lower and disrupting global financial markets.
In Debt Watch, Next Shoe to Drop Could be Moody’s
By Damian Paletta, WSJ.com
Wall Street and foreign investors might finally begin paying attention to the scrum over deficit reduction in Washington this week. That’s because Moody’s Investors Service could put the U.S. government’s Aaa bond rating on review for a possible downgrade soon. Moody’s had warned on June 2 that a “review” could come by mid-July “if there were no progress on increasing the statutory debt limit.”
http://jlne.ws/rpi5WK
Treasury says new office to safeguard firms' data
By Jessica Holzer, MarketWatch
A new office within the U.S. Treasury Department will exercise its broad authority to collect data from the financial industry "responsibly" and will adopt the private sector's and the government's current best practices for ensuring it doesn't fall into the wrong hands, a top adviser to Treasury Secretary Timothy Geithner said in prepared testimony Thursday.
http://jlne.ws/qSuTnU
Obama: Social Security checks 'not guaranteed'
By Charles Riley, CNN Money
President Obama issued a broadside Tuesday in the debt ceiling debate, saying in a high-profile interview that he cannot ensure government benefits -- including Social Security -- will be paid if Congress fails to act.
http://jlne.ws/oIkIWF
Obama: Time to "eat our peas" and pass debt deal
By Stephanie Condon, CBS News
President Obama is still seeking the largest deficit reduction deal possible as part of a package deal to raise the debt ceiling, he said in a press conference today. "I continue to push congressional leaders for the largest possible deal," he said from the White House. "It is possible for us to construct a package that would be balanced, would share sacrifice [and] would involve both parties taking on their sacred cows."
http://jlne.ws/nHOzY7
Obama walks out of tense US debt meeting - aide
Reuters
President Barack Obama abruptly ended a tense budget meeting on Wednesday with U.S. Republican leaders by walking out of the room, a Republican aide familiar with the talks said. The aide said the session, the fourth in a row, was the most tense of the week as House of Representatives Speaker John Boehner, the top Republican in Congress, dismissed spending cuts offered by the White House as "gimmicks and accounting tricks."
http://jlne.ws/qhhuH4
Ron Paul (R-TX) says raising the debt limit 'negative' in long term [Video]
http://jlne.ws/ojCudb
Debt ceiling dynamics are bond bullish
By Warren Mosler, Credit Writedowns
Here’s my take:
A. They get a few trillion in long term cuts and maybe a few that kick in reasonably soon and extend the debt ceiling. This would help ensure aggregate demand stays low for long, which is bond friendly, and stocks muddle through in a range with slowing earnings growth but just enough top line growth to stay positive.
B. They don’t extend the debt ceiling...
http://jlne.ws/qmfwd9
Geithner: We need a debt ceiling deal this week
By Jennifer Liberto, CNN Money
Treasury Secretary Tim Geithner said Tuesday that he wants a deal to raise the debt ceiling and cut the budget by the end of this week -- or next week at the latest -- to give Congress enough time to turn the deal into law.
http://jlne.ws/nhCmo6
Geithner Doesn't View 14th Amendment As Way Around US Debt Limit -Official WSJ.com
By Tom Barkley Of DOW JONES NEWSWIRES
Treasury Secretary Timothy Geithner doesn't believe the 14th Amendment could provide a way to skirt the debt ceiling, and has never made such an argument, a Treasury official said Friday in response to a newspaper column. George Madison, Treasury's general counsel, sought to correct an assertion made by constitutional scholar Laurence Tribe in an opinion piece in Friday's edition of the New York Times that Geithner has suggested the constitutional amendment could be used to issue more debt if Congress refuses to raise the country's legal borrowing limit.
http://jlne.ws/p1Blt5
‘Double Eagle’ Gold Fight Recalls Last U.S. Default
By Pham-Duy Nguyen, Bloomberg
The 10 rare Double Eagle gold coins at the heart of a federal trial in Philadelphia are remnants of the last U.S. government default, almost eight decades before the current stalemate in Congress over raising the debt limit.
http://jlne.ws/omXLOm
FRB: Press Release--Minutes of the Federal Open Market Committee, June 21-22, 2011--July 12, 2011
The Federal Reserve Board and the Federal Open Market Committee on Tuesday released the attached minutes of the Committee meeting held on June 21-22, 2011. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the June 21-22, 2011 meeting is also included as an addendum to these minutes.
http://jlne.ws/r24GRJ
Fed minutes: some ready to ease if recovery lags
Reuters
Some Federal Reserve officials are ready to provide more monetary policy easing if the recovery is too sluggish to cut the lofty unemployment rate and if inflation eases as expected, minutes of their June meeting released on Tuesday show.
http://jlne.ws/p6iJmF
Bernanke Faces Lawmakers for Second Day
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
Federal Reserve Chairman Ben Bernanke said Thursday that the central bank wasn't ready yet to take additional steps to boost the economy, acknowledging that the outlook for the recovery remains uncertain.
http://jlne.ws/pMR0Gu
Bernanke repeats Fed to act if recovery stumbles
Reuters
Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that overzealous cuts to government spending could derail an already fragile recovery and said a U.S. debt default could wreak financial havoc.
http://jlne.ws/pHJEyd
Bernanke Says Fed Could Act, but Doesn’t Indicate It Will
Federal Reserve Chairman Ben Bernanke noted in his testimony that the central bank could act if needed, but didn’t offer any indication that it planned to do so any time soon.
http://jlne.ws/qhf107
Bernanke Says Fed Would Consider New Stimulus Effort
By BINYAMIN APPELBAUM, The New York Times
The Federal Reserve chairman, Ben S. Bernanke, gave a subdued account of the economy’s health Wednesday, saying that he expected the economy to grow at a moderate pace during the rest of the year, with unemployment declining “only gradually.”
http://jlne.ws/oSHPMI
Bernanke, Semiannual Monetary Policy Report to the Congress--July 12, 2011
Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
July 13, 2011
Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress (PDF). I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy...
http://jlne.ws/nrwECc
Bernanke Not Yet Ready to Step In
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
http://jlne.ws/pGBrVN
Gold hits record high on Bernanke, euro worries
Reuters
Gold surged to a record near $1,590 an ounce on Wednesday as the possibility of more Federal Reserve stimulus coupled with Europe's deepening debt crisis fueled bullion's longest winning streak in five years.
http://ow.ly/5DE9M
Fitch Slashes Greece Ratings 4 Notches On Absence Of Aid
WSJ.com
Fitch Ratings slashed Greece's issuer default ratings four notches deeper into junk territory, saying the move reflected the absence of a new, fully funded and credible European Union/International Monetary aid program.
http://jlne.ws/psUmn2
IMF says Greece must move faster, sees deeper slump
Reuters
The International Monetary Fund (IMF) said on Wednesday that Greece's economy would contract more than previously expected and debt would soar even more despite far-reaching deficit-cutting measures.
http://jlne.ws/piOsLV
Strauss-Kahn won't negotiate, says New York lawyer
Reuters
Former IMF chief Dominique Strauss-Kahn will not plead guilty to minor charges or cut a deal in the sexual assault case against him in New York, his lawyer said in remarks published Thursday.
http://jlne.ws/nboVsi
SIFMA: Housing finance reform in U.S., including the future of GSEs, will be addressed separately from Dodd-Frank Act
Overall housing finance reform in the U.S., including the future of the GSEs, will be addressed separately from the Dodd-Frank Act. The term securitization refers to the process of converting assets with predictable cashflows into securities that can be bought and sold in financial markets. In other words, securitization allows financial institutions to bundle and convert illiquid cashflow-producing assets held on their balance sheets, such as individual mortgage loans or credit card receivables, into liquid securities.
http://jlne.ws/oE8cMt
Is China’s Economy Finally Slowing Down?
Forbes
Although the Chinese economy continues to grow at a pace that far exceeds its Western counterparts, there are signs that inflation fighting measures by the Chinese government may be having an impact.
http://jlne.ws/nW8HDZ
Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York
The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
http://jlne.ws/hp922J
CFTC’s Chilton Says ‘Cheetah’ Traders Must Register for Business
By Silla Brush, Bloomberg
U.S. regulators should require that high-frequency and algorithmic traders register with authorities before they enter financial markets, said Bart Chilton, member of the U.S. Commodity Futures Trading Commission. The traders, which Chilton calls “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process, Chilton said in a speech prepared for a Washington conference held today by the American Soybean Association.
http://jlne.ws/pNijq8
Authorities could bail out banks again, S and P says
By Tom Braithwaite in New York, Financial Times
Officials fighting the next financial crisis may again bail out banks using the public purse, S&P has said, in an opinion that casts doubt on one of the fundamental tenets of US financial reform.
http://jlne.ws/pgdqwa
Sovereign CDS Index Activity Jumps As European Crisis Widens
By Katy Burne Of DOW JONES NEWSWIRES
Trading activity on a derivatives index that tracks the cost of protecting debt issued by 15 European sovereigns jumped Monday to its second-highest level ever after investors shunned Italian government bonds, stoking fears of contagion spreading from the still-unresolved Greek debt crisis.
http://jlne.ws/qR6z8e
Swaps Rules Will Help Market Grow $40.7 Trillion, Citigroup Says
By Matthew Leising, Bloomberg
The market for interest-rate and credit-default swaps will grow more than 10 percent to $435 trillion by 2013 as oversight of over-the-counter derivatives improves price transparency and cuts trading risk, according to Citigroup Inc.
http://jlne.ws/rpOI5s
**CN: Wow.
Dodd-Frank Financial-Overhaul Law Debated At US Senate Hearing
By Jessica Holzer, Of DOW JONES NEWSWIRES
With the Dodd-Frank financial-overhaul law set to turn one-year old next week, witnesses and lawmakers at a U.S. Senate hearing debated the law's effect on investors.
http://jlne.ws/pz6Fk2
Barney Frank Says Dodd-Frank Is “Holding Up Well”
By Melanie Waddell, AdvisorOne
As the one-year anniversary of passage of the Dodd-Frank Act nears, Rep. Barney Frank, D-Mass., expressed his views on Monday about how the law he co-authored with former Democratic Senator Christopher Dodd is being implemented.
http://jlne.ws/pPk7mi
Regulator strengthens enforcement authority
Risk.net
The Commodity Futures Trading Commission (CFTC) passed a final rule to expand its anti-manipulation powers under the Dodd-Frank Wall Street Reform and...
http://jlne.ws/qPMd43
Consumer Financial Protection Bureau Outlines Bank Supervision Approach
Press Release
The Consumer Financial Protection Bureau (CFPB) today outlined the agency’s approach to supervising large depository institutions to ensure compliance with federal consumer financial protection laws – a supervisory process that will begin on July 21, 2011.
http://jlne.ws/qYE1b7
Fed Data Cruncher Finds No New Normal
By Vivien Lou Chen, Bloomberg
Mary Daly holds up two charts containing 33 bars that all point down. They show eight industries getting hit equally hard after the 18-month recession ended in June 2009, suggesting that much of the past two years’ high unemployment is broad-based and should dissipate as the economy improves.
http://ow.ly/5Cm36
Ex Fed Reserve's Kohn: US Monetary Policy Isn't A Currency War
WSJ.com
Adjustments to the global economy should take place through exchange-rate fluctuations, rather than different inflation rates, former U.S. Federal Reserve vice-president Donald Kohn said Friday.
http://jlne.ws/nwRbNv
New Docs Show Goldman Tapped Fed Program For $15 Billion Loan In '08
Forbes.com
Data obtained by Bloomberg News through the Freedom of Information Act by revealed that Goldman Sachs borrowed $15 billion from the Federal Reserve in late 2008.
http://jlne.ws/nv8cS5
Dodd-Frank Sparks Anxiety Issues
By Joan Quigley - The Bond Buyer
One year after the enactment of a sweeping financial reform law, municipal market participants say the overhaul has created an environment of uncertainty, not dramatic change.
http://jlne.ws/qbArnd
Events
Credit Risk in Emerging Markets
August 1, 2011
www.theIFM.org
Making Sense of Credit Default Swaps
August 10, 2011
www.theIFM.org
FIA Treasury & Rates Forum
September 14, 2011
FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
Economic News
Retail Sales Creep Up; Unemployment Claims Edge Lower
By Bill Chappell, NPR
In better numbers than the market had been expecting, retail and food service sales were up in June, according to the Commerce Department. Seasonally adjusted sales were up 0.1 percent. That's a rebound from May, when sales fell by the same amount.
http://jlne.ws/o2kZrv
U.S. Import Prices Fall for First Time in a Year
By Alex Kowalski, Bloomberg
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated.
http://jlne.ws/oU1FwK
U.S. trade deficit expanded 15.1 percent to $50.2 billion in May
Federal Reserve Bank of Cleveland
The U.S. trade deficit expanded 15.1 percent to $50.2 billion in May, dropping by $6.6 billion from $43.6 billion in April. Imports increased $5.6 billion to $225.1 billion, while exports declined $0.9 billion to $174.9 billion.
http://jlne.ws/p5JqjA
Job openings flat in May, a sign of slow hiring
Associated Press
The number of U.S. job postings didn't increase in May, a sign that hiring is unlikely to pick up this summer.
http://jlne.ws/qGRkMl
Exchanges, Clearing Houses & MTFs
DTCC Appoints Bari Jane Wolfe Head Of Regulatory Relations
WSJ.com
The Depository Trust and Clearing Corp. said Tuesday it has hired Bari Jane Wolfe in a newly created head of regulatory relations role.
http://jlne.ws/pBki6T
DTCC Names Adam Wysota Chief Technology Officer
The Depository Trust and Clearing Corporation (DTCC) announced today that Adam Wysota, an information technology veteran with
more than 20 years of experience in the field, joined the organization on July 5 as managing director and chief technology officer.
http://jlne.ws/oqER4D
MarketAxess Releases Next Generation Trading Platform With Enhanced Support for CDS Trading Under Dodd-Frank
Press Release
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other fixed income securities, today announced the launch of an enhanced institutional credit trading system that includes significant additional functionality for credit default swap (CDS) trading. With this release, MarketAxess now has much of the core technology needed to meet the anticipated regulatory requirements for registration as a swap execution facility (SEF) and security-based swap execution facility (SB SEF) under the Dodd-Frank Act in the U.S.
http://jlne.ws/oXHpbs
DJ MarketAxess Bond Trading Platform Beefs Up CDS Capabilities
By Katy Burne, Dow Jones Newswires
MarketAxess Holdings Inc. introduced a suite of enhancements to its electronic bond-trading platform Monday that will allow traders of credit default swaps to compare prices from multiple dealers at once and trade more efficiently. The move comes as market participants prepare for a sweeping regulatory overhaul of privately traded, or "over the counter" derivatives. The final rules stemming from the U.S. Dodd-Frank Act, passed last summer, are expected to be ready later this year and to be implemented sometime in 2012.
Firms & Banks
ICAP appoints Deutsche Bank executive as COO
By Alex MacDonald, MarketWatch
U.K. based brokerage firm ICAP PLC (IAP.LN) said Monday that Mark Price will join the firm as group chief operating officer from Oct. 3, subject to regulatory approval.
http://jlne.ws/oMNVAd
MTS Launches Electronic Market For UK Government Bonds
Press Release
MTS, Europe’s premier facilitator for the electronic fixed income market, announced today that it has launched an electronic market for UK government bonds, or Gilts.
http://jlne.ws/r61Xgr
Morgan Stanley Could Be Next Wall Street Giant to Cut Staff
FOX Business
Exclusive : Morgan is planning for a large round of job cuts that would go beyond brokers to include traders and possibly investment bankers.
http://jlne.ws/nIImd8
Citigroup moves closer to credit card U-turn
By Justin Baer in New York - Financial Times
Citigroup is leaning toward keeping its private-label credit card arm, reversing course on a $41bn business the bank had marked for disposal in the wake of the financial crisis, people familiar with the matter said.
http://jlne.ws/oZ52l3
Troubled Bank Of America Still World's Biggest Wealth Manager
Forbes via Yahoo! News
Despite all the bad news that Bank of America has been faced with since 2008 the U.S. bank is still on top of the world on the private banking front.
http://jlne.ws/riKFjX
BofA Again Faces Capital Conundrum
By DAVID REILLY, WSJ.com
During the financial crisis, investors constantly fretted over bank capital. Now, Bank of America again faces questions over its ability to withstand losses as it struggles with mortgage problems.
http://jlne.ws/pTJcsI
Regulators
ECB and World Bank call for exemptions from US derivatives rules
Risk.net
The World Bank and the European Central Bank (ECB) have called on the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission...
http://jlne.ws/ntDXcS
ECB: Statement by the EC, ECB, and IMF on the Review Mission to Ireland
Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during July 6-14 for the regular quarterly review of the government’s economic programme. The objectives of the programme are to address financial sector weaknesses and to put Ireland’s economy on the path of sustainable growth, sound public finances, and job creation, while protecting the poor and most vulnerable. The teams’ assessment is that the program remains on track and is well financed. The authorities have continued to steadfastly implement program policies. Tensions in sovereign bond markets have escalated during the visit, but programme financing is cushioning the impact of this shock on the Irish economy and public finances. Continued strong policy implementation will be important to limit potential contagion effects...
http://jlne.ws/q3khkB
Philadelphia Fed Appoints Kori Ann Connelly Assistant Vice President and Counsel
Press Release
The Federal Reserve Bank of Philadelphia today announced the appointment of Kori Ann Connelly to assistant vice president and counsel. She will provide legal support primarily to the Human Resources, Financial Management Services, and Law Enforcement departments. She will also administer the Bank's insurance program.
http://jlne.ws/nTn3ha
EU Sees Risks to Financial Stability, Girds for Banks Failing Stress Tests
Bloomberg
The risks to financial stability from analysts using European Union stress-test data to conduct their own exams on banks "should not be underestimated," according to a confidential document prepared by EU officials.
http://jlne.ws/puRINp
IMF Managing Director Christine Lagarde Proposes Appointment Of Mr. David Lipton As First Deputy Managing Director And Mr. Min Zhu As Deputy Managing Director
Press Release
http://jlne.ws/pDdAJV
Statement From U.S. Treasury Secretary Geithner On The Appointment Of David Lipton To Be IMF First Deputy Managing Director
Press Release
http://jlne.ws/r41tOr
China secures key IMF role under Lagarde
By Alan Beattie in Washington, Financial Times
Zhu Min, former deputy governor of the Chinese central bank, was on Tuesday appointed to the top management of the International Monetary Fund, a signal of China’s growing power in the global economy.
http://jlne.ws/pyZr7x
Martin J. Gruenberg To Be Nominated By Obama For FDIC Chairman
President Barack Obama said Friday that he will nominate Martin J. Gruenberg to become chairman of the Federal Deposit Insurance Corp.
Gruenberg would succeed Sheila Bair, who plans to end her five-year term as one of the nation's top banking regulators on July 8. Bair was a holdover from the Bush administration and one of several regulators who helped shape the federal response to the 2008 financial crisis.
http://jlne.ws/nrBVaA
GOP bicker with FDIC over small bank capital, economic recovery
MarketWatch
While most of Washington is focusing on the disappointing U.S. employment report for June that stunned investors and confused economists, a group of lawmakers and regulators spent Friday arguing over whether community banks should be required to hold more or less capital and what the buffers mean for jobs and economic stability. The target of a group of Republican lawmakers in a House committee is the Federal Deposit Insurance Corp. and its team of examiners supervising community banks.
http://jlne.ws/nRVi2s
Global News
Berlusconi pledges to accelerate budget measures
Associated Press
Italian Premier Silvio Berlusconi says the government will bring forward the timetable it has for a raft of austerity measures, designed to prevent the eurozone's third biggest economy from getting embroiled in a debt crisis that has already seen three countries get bailouts.
http://jlne.ws/r2Ahxm
Bank Indonesia Keeps Rate Steady; Flags Tamer Inflation
BY JOKO HARIYANTO AND I MADE SENTANA, WSJ.com
Bank Indonesia on Tuesday kept its benchmark interest rate unchanged at 6.75% after inflation fell to its lowest level in a year in June, saying it expects consumer prices for the full year to rise at a slower rate than it previously projected.
http://jlne.ws/nisT0f
Wall Street Systems extends Central Bank solution to National Bank of Romania
Wall Street Systems (Wallstreet), the global provider of treasury, trading and settlement solutions and services, today announces the signing of the National Bank of Romania (NBR) for efficient reserve management, asset management and monetary policy execution.
http://jlne.ws/oZlzR2
China to Halt Tightening Campaign
BY TOM ORLIK, WSJ.com
When it comes to China's monetary policy, it makes sense to distinguish what the government should do from what it probably will do.
http://jlne.ws/pL3KB4
European Sovereign CDS Prices Hit Record High
By Art Patnaude and Carol Dean, DOW JONES NEWSWIRES
Default insurance costs for Ireland continued the move to an all-time high Monday amid expectations of a ratings downgrade, although Italy remained in the spotlight.
http://jlne.ws/rsm269
Raising interest rates will reduce consumer confidence
Mozo, Friday 08 July 2011
If the Reserve Bank of Australia (RBA) raises interest rates soon, the effect could be a downturn in consumer confidence, according to building materials manufacturer CSR. Earlier this week, the RBA opted to keep the cash rate at the 4.75 per cent level set in November 2010, marking the eighth consecutive month in which there was no change.
Rob Sindel, managing director of CSR, observed that the current economic climate is "quite uncertain", reports the Australian.
http://jlne.ws/qdAzuS
Three-Month Euribor At Two-Year High As ECB Raises Rates
WSJ.com
By Neelabh Chaturvedi Of DOW JONES NEWSWIRES
The cost of borrowing euros for three months in the interbank market rose to a new two-year high Friday, a day after the European Central Bank raised its key interest rate for the second time this year. The three-month Euro Interbank Offered Rate, also known as Euribor, was fixed at 1.593%, up from 1.583%.The spread between the three-month Euribor and the three-month Euro Overnight Index Average rate, also known as Eonia, widened to 24.1 basis points from 22.5 basis points. http://jlne.ws/pqbbs8
UK banks say ring-fencing plans flawed and costly
Reuters UK Focus via Yahoo! UK & Ireland Finance
Britain's top lenders said proposals to make them ring-fence their retail banking arms from their investment banks had major flaws and would be far too costly.
http://jlne.ws/oHVOgB
IMF report on Greece displays familiar balancing act
By Alan Beattie in Washington, Financial Times
Wednesday’s report on Greece by the International Monetary Fund, which helped unlock its latest tranche of rescue lending, shows the fund in a familiar balancing act – on this occasion complicated by its junior role in the rescue programmes in western Europe.
http://jlne.ws/nQw3wp
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
Five Minutes With Neal Wolkoff, chief executive officer of ELX Futures, L.P.
There was some excitement at the headquarters for ELX Futures L.P. over the weekend. The exchange - which was founded in 2007 and launched in 2009
and is backed by a consortium of founding partners comprising major global investment banks and market making firms - celebrated its second
anniversary. Neal Wolkoff, chief executive officer of ELX, took few minutes this week to talk about the occasion and the outlook at the
exchange at this juncture.
Q: There was an anniversary celebrated at ELX over the weekend. Could you tell me the significance of the occasion?
A: Our two-year anniversary was a big milestone. It cemented ELX’s place in the futures marketplace as a long-term competitor to the CME Group. I
was personally very proud of my team and the partners behind ELX. We still have much more to accomplish, but the past two years of working hard to
build an exchange from scratch has been remarkable and rewarding. We celebrated with an internal party for the staff. We take great pride in the
anniversary.
Q: Is ELX where you had anticipated it would be at this juncture? Why or why not.
A: When we launched, I wanted ELX to be a competitive alternative that offered lowered fees, state-of-the-art technology and attractive services for our
customers. I believe we achieved all of that.
Q: Which products have gained the most traction at the exchange thus far? Why do you think this is so?
A: U.S. Treasuries and Eurodollars both made their mark and we’re gaining market share and open interest. Do we want to launch new products?
That’s a definite yes.
Q: Is the goal at this point to take the lead in terms of market share for benchmark products such as the 30-year and Eurodollars, or is there another
goal? If there is another goal, what is the goal?
A: We would like to grow our market share on all our products, introduce new products and attract new customers and focus on gaining more
institutional clients. I think ELX is moving in the right direction and it would take very little to move us a remarkable amount forward.
There are going to be great synergies in terms of OTC and derivatives that would result in greater participation. It would make the client base
potentially larger and create opportunities for us.There has been unclear direction in the economy. Futures exchanges are important in strong economic
times as well as weak.
Q: Which products are undergoing more development?
A: European interest rates are undergoing more development. They have not been introduced yet at ELX. Our goals for the rest of this year are to really
create greater ties between ELX, our investors and the buy-side clients of our investors, and we think there are great opportunities for synergies in the
clearing of these products with European products. We haven’t launched yet, but we have it thoroughly in our plans to roll this product out.
Q: ELX has touted the technology it offers its customers as superior. Why is it superior to other offerings out there?
A: We use eSpeed technology that has been proven to be faster and more efficient. We’re very happy that our technology platform has been solid and
stable for the past two years and we are planning for even more advancements in our technology. The platform allows users to access cash and futures
simultaneously – without having to deal with the latency of trading separate markets. Over time, some OTC products will end up trading and looking more
exchange like. We certainly would want to be in the mix.
Q: What is your take on the current state of Dodd-Frank regulatory efforts? Do you anticipate any key changes in ELX's target areas?
A: Dodd-Frank won’t represent major change to exchanges and how we’ll be governed. We’re now fully regulated by the CFTC. It does impose some
additional rules on products and the like. There will be more synergies in OTC futures, more opportunities for cost savings. I do think the market will want
to have the kind of open access to clearing that Dodd-Frank promises.
Q: What can we expect in the future from ELX?
A: We plan to launch new products and new business initiatives to attract new customers.
-- Christine Nielsen
------------------------------------
MarketsWiki Questions: Exploring Financial Technology - an interactive video series and event on Oct. 6, 2011 in Chicago
Question 3 Now Available
Ahead of our MarketsWiki Questions: Exploring Financial Technology event in October, we're asking experts in the financial services industry seven questions and providing the best answers in an interactive video format. Question 3: Whose responsibility is risk management technology today, and what is the best solution for risk management?
http://jlne.ws/kbEq3v
| MarketsWiki Questions: Exploring Financial Technology | |
| Question 3 Interactive Video Now Available | |
 | |
| Ahead of our MarketsWiki Questions: Exploring Financial Technology event in October we're asking experts in the financial services industry seven questions and providing the best answers in an interactive video format. Question 3: Whose responsibility is risk management technology today – exchanges, firms, brokers – and what is the best solution for risk management? | |
 | Question 3 is sponsored by: |
Lead Stories
Raters Put U.S. on Notice
By DAMIAN PALETTA, CAROL E. LEE and MATT PHILLIPS, WSJ.com
Credit rating agencies moved closer to an unprecedented downgrade of the U.S. government's debt amid deteriorating talks in Washington, with President Barack Obama abruptly walking out of a key meeting Wednesday with Republicans seeking a deal to raise the federal borrowing limit.
http://jlne.ws/qfLROS
*CN: According to this article, a downgrade risks pushing interest rates higher, stock markets lower and disrupting global financial markets.
In Debt Watch, Next Shoe to Drop Could be Moody’s
By Damian Paletta, WSJ.com
Wall Street and foreign investors might finally begin paying attention to the scrum over deficit reduction in Washington this week. That’s because Moody’s Investors Service could put the U.S. government’s Aaa bond rating on review for a possible downgrade soon. Moody’s had warned on June 2 that a “review” could come by mid-July “if there were no progress on increasing the statutory debt limit.”
http://jlne.ws/rpi5WK
Treasury says new office to safeguard firms' data
By Jessica Holzer, MarketWatch
A new office within the U.S. Treasury Department will exercise its broad authority to collect data from the financial industry "responsibly" and will adopt the private sector's and the government's current best practices for ensuring it doesn't fall into the wrong hands, a top adviser to Treasury Secretary Timothy Geithner said in prepared testimony Thursday.
http://jlne.ws/qSuTnU
Obama: Social Security checks 'not guaranteed'
By Charles Riley, CNN Money
President Obama issued a broadside Tuesday in the debt ceiling debate, saying in a high-profile interview that he cannot ensure government benefits -- including Social Security -- will be paid if Congress fails to act.
http://jlne.ws/oIkIWF
Obama: Time to "eat our peas" and pass debt deal
By Stephanie Condon, CBS News
President Obama is still seeking the largest deficit reduction deal possible as part of a package deal to raise the debt ceiling, he said in a press conference today. "I continue to push congressional leaders for the largest possible deal," he said from the White House. "It is possible for us to construct a package that would be balanced, would share sacrifice [and] would involve both parties taking on their sacred cows."
http://jlne.ws/nHOzY7
Obama walks out of tense US debt meeting - aide
Reuters
President Barack Obama abruptly ended a tense budget meeting on Wednesday with U.S. Republican leaders by walking out of the room, a Republican aide familiar with the talks said. The aide said the session, the fourth in a row, was the most tense of the week as House of Representatives Speaker John Boehner, the top Republican in Congress, dismissed spending cuts offered by the White House as "gimmicks and accounting tricks."
http://jlne.ws/qhhuH4
Ron Paul (R-TX) says raising the debt limit 'negative' in long term [Video]
http://jlne.ws/ojCudb
Debt ceiling dynamics are bond bullish
By Warren Mosler, Credit Writedowns
Here’s my take:
A. They get a few trillion in long term cuts and maybe a few that kick in reasonably soon and extend the debt ceiling. This would help ensure aggregate demand stays low for long, which is bond friendly, and stocks muddle through in a range with slowing earnings growth but just enough top line growth to stay positive.
B. They don’t extend the debt ceiling...
http://jlne.ws/qmfwd9
Geithner: We need a debt ceiling deal this week
By Jennifer Liberto, CNN Money
Treasury Secretary Tim Geithner said Tuesday that he wants a deal to raise the debt ceiling and cut the budget by the end of this week -- or next week at the latest -- to give Congress enough time to turn the deal into law.
http://jlne.ws/nhCmo6
Geithner Doesn't View 14th Amendment As Way Around US Debt Limit -Official WSJ.com
By Tom Barkley Of DOW JONES NEWSWIRES
Treasury Secretary Timothy Geithner doesn't believe the 14th Amendment could provide a way to skirt the debt ceiling, and has never made such an argument, a Treasury official said Friday in response to a newspaper column. George Madison, Treasury's general counsel, sought to correct an assertion made by constitutional scholar Laurence Tribe in an opinion piece in Friday's edition of the New York Times that Geithner has suggested the constitutional amendment could be used to issue more debt if Congress refuses to raise the country's legal borrowing limit.
http://jlne.ws/p1Blt5
‘Double Eagle’ Gold Fight Recalls Last U.S. Default
By Pham-Duy Nguyen, Bloomberg
The 10 rare Double Eagle gold coins at the heart of a federal trial in Philadelphia are remnants of the last U.S. government default, almost eight decades before the current stalemate in Congress over raising the debt limit.
http://jlne.ws/omXLOm
FRB: Press Release--Minutes of the Federal Open Market Committee, June 21-22, 2011--July 12, 2011
The Federal Reserve Board and the Federal Open Market Committee on Tuesday released the attached minutes of the Committee meeting held on June 21-22, 2011. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the June 21-22, 2011 meeting is also included as an addendum to these minutes.
http://jlne.ws/r24GRJ
Fed minutes: some ready to ease if recovery lags
Reuters
Some Federal Reserve officials are ready to provide more monetary policy easing if the recovery is too sluggish to cut the lofty unemployment rate and if inflation eases as expected, minutes of their June meeting released on Tuesday show.
http://jlne.ws/p6iJmF
Bernanke Faces Lawmakers for Second Day
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
Federal Reserve Chairman Ben Bernanke said Thursday that the central bank wasn't ready yet to take additional steps to boost the economy, acknowledging that the outlook for the recovery remains uncertain.
http://jlne.ws/pMR0Gu
Bernanke repeats Fed to act if recovery stumbles
Reuters
Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that overzealous cuts to government spending could derail an already fragile recovery and said a U.S. debt default could wreak financial havoc.
http://jlne.ws/pHJEyd
Bernanke Says Fed Could Act, but Doesn’t Indicate It Will
Federal Reserve Chairman Ben Bernanke noted in his testimony that the central bank could act if needed, but didn’t offer any indication that it planned to do so any time soon.
http://jlne.ws/qhf107
Bernanke Says Fed Would Consider New Stimulus Effort
By BINYAMIN APPELBAUM, The New York Times
The Federal Reserve chairman, Ben S. Bernanke, gave a subdued account of the economy’s health Wednesday, saying that he expected the economy to grow at a moderate pace during the rest of the year, with unemployment declining “only gradually.”
http://jlne.ws/oSHPMI
Bernanke, Semiannual Monetary Policy Report to the Congress--July 12, 2011
Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
July 13, 2011
Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress (PDF). I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy...
http://jlne.ws/nrwECc
Bernanke Not Yet Ready to Step In
BY JEFFREY SPARSHOTT, MICHAEL R. CRITTENDEN AND JON HILSENRATH, WSJ.com
http://jlne.ws/pGBrVN
Gold hits record high on Bernanke, euro worries
Reuters
Gold surged to a record near $1,590 an ounce on Wednesday as the possibility of more Federal Reserve stimulus coupled with Europe's deepening debt crisis fueled bullion's longest winning streak in five years.
http://ow.ly/5DE9M
Fitch Slashes Greece Ratings 4 Notches On Absence Of Aid
WSJ.com
Fitch Ratings slashed Greece's issuer default ratings four notches deeper into junk territory, saying the move reflected the absence of a new, fully funded and credible European Union/International Monetary aid program.
http://jlne.ws/psUmn2
IMF says Greece must move faster, sees deeper slump
Reuters
The International Monetary Fund (IMF) said on Wednesday that Greece's economy would contract more than previously expected and debt would soar even more despite far-reaching deficit-cutting measures.
http://jlne.ws/piOsLV
Strauss-Kahn won't negotiate, says New York lawyer
Reuters
Former IMF chief Dominique Strauss-Kahn will not plead guilty to minor charges or cut a deal in the sexual assault case against him in New York, his lawyer said in remarks published Thursday.
http://jlne.ws/nboVsi
SIFMA: Housing finance reform in U.S., including the future of GSEs, will be addressed separately from Dodd-Frank Act
Overall housing finance reform in the U.S., including the future of the GSEs, will be addressed separately from the Dodd-Frank Act. The term securitization refers to the process of converting assets with predictable cashflows into securities that can be bought and sold in financial markets. In other words, securitization allows financial institutions to bundle and convert illiquid cashflow-producing assets held on their balance sheets, such as individual mortgage loans or credit card receivables, into liquid securities.
http://jlne.ws/oE8cMt
Is China’s Economy Finally Slowing Down?
Forbes
Although the Chinese economy continues to grow at a pace that far exceeds its Western counterparts, there are signs that inflation fighting measures by the Chinese government may be having an impact.
http://jlne.ws/nW8HDZ
Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York
The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
http://jlne.ws/hp922J
CFTC’s Chilton Says ‘Cheetah’ Traders Must Register for Business
By Silla Brush, Bloomberg
U.S. regulators should require that high-frequency and algorithmic traders register with authorities before they enter financial markets, said Bart Chilton, member of the U.S. Commodity Futures Trading Commission. The traders, which Chilton calls “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process, Chilton said in a speech prepared for a Washington conference held today by the American Soybean Association.
http://jlne.ws/pNijq8
Authorities could bail out banks again, S and P says
By Tom Braithwaite in New York, Financial Times
Officials fighting the next financial crisis may again bail out banks using the public purse, S&P has said, in an opinion that casts doubt on one of the fundamental tenets of US financial reform.
http://jlne.ws/pgdqwa
Sovereign CDS Index Activity Jumps As European Crisis Widens
By Katy Burne Of DOW JONES NEWSWIRES
Trading activity on a derivatives index that tracks the cost of protecting debt issued by 15 European sovereigns jumped Monday to its second-highest level ever after investors shunned Italian government bonds, stoking fears of contagion spreading from the still-unresolved Greek debt crisis.
http://jlne.ws/qR6z8e
Swaps Rules Will Help Market Grow $40.7 Trillion, Citigroup Says
By Matthew Leising, Bloomberg
The market for interest-rate and credit-default swaps will grow more than 10 percent to $435 trillion by 2013 as oversight of over-the-counter derivatives improves price transparency and cuts trading risk, according to Citigroup Inc.
http://jlne.ws/rpOI5s
**CN: Wow.
Dodd-Frank Financial-Overhaul Law Debated At US Senate Hearing
By Jessica Holzer, Of DOW JONES NEWSWIRES
With the Dodd-Frank financial-overhaul law set to turn one-year old next week, witnesses and lawmakers at a U.S. Senate hearing debated the law's effect on investors.
http://jlne.ws/pz6Fk2
Barney Frank Says Dodd-Frank Is “Holding Up Well”
By Melanie Waddell, AdvisorOne
As the one-year anniversary of passage of the Dodd-Frank Act nears, Rep. Barney Frank, D-Mass., expressed his views on Monday about how the law he co-authored with former Democratic Senator Christopher Dodd is being implemented.
http://jlne.ws/pPk7mi
Regulator strengthens enforcement authority
Risk.net
The Commodity Futures Trading Commission (CFTC) passed a final rule to expand its anti-manipulation powers under the Dodd-Frank Wall Street Reform and...
http://jlne.ws/qPMd43
Consumer Financial Protection Bureau Outlines Bank Supervision Approach
Press Release
The Consumer Financial Protection Bureau (CFPB) today outlined the agency’s approach to supervising large depository institutions to ensure compliance with federal consumer financial protection laws – a supervisory process that will begin on July 21, 2011.
http://jlne.ws/qYE1b7
Fed Data Cruncher Finds No New Normal
By Vivien Lou Chen, Bloomberg
Mary Daly holds up two charts containing 33 bars that all point down. They show eight industries getting hit equally hard after the 18-month recession ended in June 2009, suggesting that much of the past two years’ high unemployment is broad-based and should dissipate as the economy improves.
http://ow.ly/5Cm36
Ex Fed Reserve's Kohn: US Monetary Policy Isn't A Currency War
WSJ.com
Adjustments to the global economy should take place through exchange-rate fluctuations, rather than different inflation rates, former U.S. Federal Reserve vice-president Donald Kohn said Friday.
http://jlne.ws/nwRbNv
New Docs Show Goldman Tapped Fed Program For $15 Billion Loan In '08
Forbes.com
Data obtained by Bloomberg News through the Freedom of Information Act by revealed that Goldman Sachs borrowed $15 billion from the Federal Reserve in late 2008.
http://jlne.ws/nv8cS5
Dodd-Frank Sparks Anxiety Issues
By Joan Quigley - The Bond Buyer
One year after the enactment of a sweeping financial reform law, municipal market participants say the overhaul has created an environment of uncertainty, not dramatic change.
http://jlne.ws/qbArnd
Events
Credit Risk in Emerging Markets
August 1, 2011
www.theIFM.org
Making Sense of Credit Default Swaps
August 10, 2011
www.theIFM.org
FIA Treasury & Rates Forum
September 14, 2011
FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
Economic News
Retail Sales Creep Up; Unemployment Claims Edge Lower
By Bill Chappell, NPR
In better numbers than the market had been expecting, retail and food service sales were up in June, according to the Commerce Department. Seasonally adjusted sales were up 0.1 percent. That's a rebound from May, when sales fell by the same amount.
http://jlne.ws/o2kZrv
U.S. Import Prices Fall for First Time in a Year
By Alex Kowalski, Bloomberg
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated.
http://jlne.ws/oU1FwK
U.S. trade deficit expanded 15.1 percent to $50.2 billion in May
Federal Reserve Bank of Cleveland
The U.S. trade deficit expanded 15.1 percent to $50.2 billion in May, dropping by $6.6 billion from $43.6 billion in April. Imports increased $5.6 billion to $225.1 billion, while exports declined $0.9 billion to $174.9 billion.
http://jlne.ws/p5JqjA
Job openings flat in May, a sign of slow hiring
Associated Press
The number of U.S. job postings didn't increase in May, a sign that hiring is unlikely to pick up this summer.
http://jlne.ws/qGRkMl
Exchanges, Clearing Houses & MTFs
DTCC Appoints Bari Jane Wolfe Head Of Regulatory Relations
WSJ.com
The Depository Trust and Clearing Corp. said Tuesday it has hired Bari Jane Wolfe in a newly created head of regulatory relations role.
http://jlne.ws/pBki6T
DTCC Names Adam Wysota Chief Technology Officer
The Depository Trust and Clearing Corporation (DTCC) announced today that Adam Wysota, an information technology veteran with
more than 20 years of experience in the field, joined the organization on July 5 as managing director and chief technology officer.
http://jlne.ws/oqER4D
MarketAxess Releases Next Generation Trading Platform With Enhanced Support for CDS Trading Under Dodd-Frank
Press Release
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for U.S. and European high-grade corporate bonds, emerging markets bonds and other fixed income securities, today announced the launch of an enhanced institutional credit trading system that includes significant additional functionality for credit default swap (CDS) trading. With this release, MarketAxess now has much of the core technology needed to meet the anticipated regulatory requirements for registration as a swap execution facility (SEF) and security-based swap execution facility (SB SEF) under the Dodd-Frank Act in the U.S.
http://jlne.ws/oXHpbs
DJ MarketAxess Bond Trading Platform Beefs Up CDS Capabilities
By Katy Burne, Dow Jones Newswires
MarketAxess Holdings Inc. introduced a suite of enhancements to its electronic bond-trading platform Monday that will allow traders of credit default swaps to compare prices from multiple dealers at once and trade more efficiently. The move comes as market participants prepare for a sweeping regulatory overhaul of privately traded, or "over the counter" derivatives. The final rules stemming from the U.S. Dodd-Frank Act, passed last summer, are expected to be ready later this year and to be implemented sometime in 2012.
Firms & Banks
ICAP appoints Deutsche Bank executive as COO
By Alex MacDonald, MarketWatch
U.K. based brokerage firm ICAP PLC (IAP.LN) said Monday that Mark Price will join the firm as group chief operating officer from Oct. 3, subject to regulatory approval.
http://jlne.ws/oMNVAd
MTS Launches Electronic Market For UK Government Bonds
Press Release
MTS, Europe’s premier facilitator for the electronic fixed income market, announced today that it has launched an electronic market for UK government bonds, or Gilts.
http://jlne.ws/r61Xgr
Morgan Stanley Could Be Next Wall Street Giant to Cut Staff
FOX Business
Exclusive : Morgan is planning for a large round of job cuts that would go beyond brokers to include traders and possibly investment bankers.
http://jlne.ws/nIImd8
Citigroup moves closer to credit card U-turn
By Justin Baer in New York - Financial Times
Citigroup is leaning toward keeping its private-label credit card arm, reversing course on a $41bn business the bank had marked for disposal in the wake of the financial crisis, people familiar with the matter said.
http://jlne.ws/oZ52l3
Troubled Bank Of America Still World's Biggest Wealth Manager
Forbes via Yahoo! News
Despite all the bad news that Bank of America has been faced with since 2008 the U.S. bank is still on top of the world on the private banking front.
http://jlne.ws/riKFjX
BofA Again Faces Capital Conundrum
By DAVID REILLY, WSJ.com
During the financial crisis, investors constantly fretted over bank capital. Now, Bank of America again faces questions over its ability to withstand losses as it struggles with mortgage problems.
http://jlne.ws/pTJcsI
Regulators
ECB and World Bank call for exemptions from US derivatives rules
Risk.net
The World Bank and the European Central Bank (ECB) have called on the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission...
http://jlne.ws/ntDXcS
ECB: Statement by the EC, ECB, and IMF on the Review Mission to Ireland
Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during July 6-14 for the regular quarterly review of the government’s economic programme. The objectives of the programme are to address financial sector weaknesses and to put Ireland’s economy on the path of sustainable growth, sound public finances, and job creation, while protecting the poor and most vulnerable. The teams’ assessment is that the program remains on track and is well financed. The authorities have continued to steadfastly implement program policies. Tensions in sovereign bond markets have escalated during the visit, but programme financing is cushioning the impact of this shock on the Irish economy and public finances. Continued strong policy implementation will be important to limit potential contagion effects...
http://jlne.ws/q3khkB
Philadelphia Fed Appoints Kori Ann Connelly Assistant Vice President and Counsel
Press Release
The Federal Reserve Bank of Philadelphia today announced the appointment of Kori Ann Connelly to assistant vice president and counsel. She will provide legal support primarily to the Human Resources, Financial Management Services, and Law Enforcement departments. She will also administer the Bank's insurance program.
http://jlne.ws/nTn3ha
EU Sees Risks to Financial Stability, Girds for Banks Failing Stress Tests
Bloomberg
The risks to financial stability from analysts using European Union stress-test data to conduct their own exams on banks "should not be underestimated," according to a confidential document prepared by EU officials.
http://jlne.ws/puRINp
IMF Managing Director Christine Lagarde Proposes Appointment Of Mr. David Lipton As First Deputy Managing Director And Mr. Min Zhu As Deputy Managing Director
Press Release
http://jlne.ws/pDdAJV
Statement From U.S. Treasury Secretary Geithner On The Appointment Of David Lipton To Be IMF First Deputy Managing Director
Press Release
http://jlne.ws/r41tOr
China secures key IMF role under Lagarde
By Alan Beattie in Washington, Financial Times
Zhu Min, former deputy governor of the Chinese central bank, was on Tuesday appointed to the top management of the International Monetary Fund, a signal of China’s growing power in the global economy.
http://jlne.ws/pyZr7x
Martin J. Gruenberg To Be Nominated By Obama For FDIC Chairman
President Barack Obama said Friday that he will nominate Martin J. Gruenberg to become chairman of the Federal Deposit Insurance Corp.
Gruenberg would succeed Sheila Bair, who plans to end her five-year term as one of the nation's top banking regulators on July 8. Bair was a holdover from the Bush administration and one of several regulators who helped shape the federal response to the 2008 financial crisis.
http://jlne.ws/nrBVaA
GOP bicker with FDIC over small bank capital, economic recovery
MarketWatch
While most of Washington is focusing on the disappointing U.S. employment report for June that stunned investors and confused economists, a group of lawmakers and regulators spent Friday arguing over whether community banks should be required to hold more or less capital and what the buffers mean for jobs and economic stability. The target of a group of Republican lawmakers in a House committee is the Federal Deposit Insurance Corp. and its team of examiners supervising community banks.
http://jlne.ws/nRVi2s
Global News
Berlusconi pledges to accelerate budget measures
Associated Press
Italian Premier Silvio Berlusconi says the government will bring forward the timetable it has for a raft of austerity measures, designed to prevent the eurozone's third biggest economy from getting embroiled in a debt crisis that has already seen three countries get bailouts.
http://jlne.ws/r2Ahxm
Bank Indonesia Keeps Rate Steady; Flags Tamer Inflation
BY JOKO HARIYANTO AND I MADE SENTANA, WSJ.com
Bank Indonesia on Tuesday kept its benchmark interest rate unchanged at 6.75% after inflation fell to its lowest level in a year in June, saying it expects consumer prices for the full year to rise at a slower rate than it previously projected.
http://jlne.ws/nisT0f
Wall Street Systems extends Central Bank solution to National Bank of Romania
Wall Street Systems (Wallstreet), the global provider of treasury, trading and settlement solutions and services, today announces the signing of the National Bank of Romania (NBR) for efficient reserve management, asset management and monetary policy execution.
http://jlne.ws/oZlzR2
China to Halt Tightening Campaign
BY TOM ORLIK, WSJ.com
When it comes to China's monetary policy, it makes sense to distinguish what the government should do from what it probably will do.
http://jlne.ws/pL3KB4
European Sovereign CDS Prices Hit Record High
By Art Patnaude and Carol Dean, DOW JONES NEWSWIRES
Default insurance costs for Ireland continued the move to an all-time high Monday amid expectations of a ratings downgrade, although Italy remained in the spotlight.
http://jlne.ws/rsm269
Raising interest rates will reduce consumer confidence
Mozo, Friday 08 July 2011
If the Reserve Bank of Australia (RBA) raises interest rates soon, the effect could be a downturn in consumer confidence, according to building materials manufacturer CSR. Earlier this week, the RBA opted to keep the cash rate at the 4.75 per cent level set in November 2010, marking the eighth consecutive month in which there was no change.
Rob Sindel, managing director of CSR, observed that the current economic climate is "quite uncertain", reports the Australian.
http://jlne.ws/qdAzuS
Three-Month Euribor At Two-Year High As ECB Raises Rates
WSJ.com
By Neelabh Chaturvedi Of DOW JONES NEWSWIRES
The cost of borrowing euros for three months in the interbank market rose to a new two-year high Friday, a day after the European Central Bank raised its key interest rate for the second time this year. The three-month Euro Interbank Offered Rate, also known as Euribor, was fixed at 1.593%, up from 1.583%.The spread between the three-month Euribor and the three-month Euro Overnight Index Average rate, also known as Eonia, widened to 24.1 basis points from 22.5 basis points. http://jlne.ws/pqbbs8
UK banks say ring-fencing plans flawed and costly
Reuters UK Focus via Yahoo! UK & Ireland Finance
Britain's top lenders said proposals to make them ring-fence their retail banking arms from their investment banks had major flaws and would be far too costly.
http://jlne.ws/oHVOgB
IMF report on Greece displays familiar balancing act
By Alan Beattie in Washington, Financial Times
Wednesday’s report on Greece by the International Monetary Fund, which helped unlock its latest tranche of rescue lending, shows the fund in a familiar balancing act – on this occasion complicated by its junior role in the rescue programmes in western Europe.
http://jlne.ws/nQw3wp
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Rabu, 13 Juli 2011
Top Interest Rate Headlines 07-13-11: Fitch Slashes Greece Ratings 4 Notches On Absence Of Aid
Fitch Slashes Greece Ratings 4 Notches On Absence Of Aid
WSJ.com
Fitch Ratings slashed Greece's issuer default ratings four notches deeper into junk territory, saying the move reflected the absence of a new, fully funded and credible European Union/International Monetary aid program.
http://jlne.ws/psUmn2
Italian Debt Risk Puts France’s BNP Paribas, Credit Agricole on Frontline
By Pham-Duy Nguyen and Nicholas Larkin, Bloomberg
Gold futures surged to a record $1,588.90 an ounce as the dollar’s slump and the European debt crisis spurred demand for precious metals as alternative assets. Silver surged the most since March 2009.
http://jlne.ws/p0DW6t
Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York
The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
http://jlne.ws/hp922J
Is China’s Economy Finally Slowing Down?
Forbes
Although the Chinese economy continues to grow at a pace that far exceeds its Western counterparts, there are signs that inflation fighting measures by the Chinese government may be having an impact.
http://jlne.ws/nW8HDZ
SIFMA: Housing finance reform in U.S., including the future of GSEs, will be addressed separately from Dodd-Frank Act
Overall housing finance reform in the U.S., including the future of the GSEs, will be addressed separately from the Dodd-Frank Act. The term securitization refers to the process of converting assets with predictable cashflows into securities that can be bought and sold in financial markets. In other words, securitization allows financial institutions to bundle and convert illiquid cashflow-producing assets held on their balance sheets, such as individual mortgage loans or credit card receivables, into liquid securities.
http://jlne.ws/oE8cMt
Gold hits record high on Bernanke, euro worries
Reuters
Gold surged to a record near $1,590 an ounce on Wednesday as the possibility of more Federal Reserve stimulus coupled with Europe's deepening debt crisis fueled bullion's longest winning streak in five years.
http://ow.ly/5DE9M
U.S. Import Prices Fall for First Time in a Year
By Alex Kowalski, Bloomberg
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated.
http://jlne.ws/oU1FwK
Philadelphia Fed Appoints Kori Ann Connelly Assistant Vice President and Counsel
Press Release
The Federal Reserve Bank of Philadelphia today announced the appointment of Kori Ann Connelly to assistant vice president and counsel. She will provide legal support primarily to the Human Resources, Financial Management Services, and Law Enforcement departments. She will also administer the Bank's insurance program.
http://jlne.ws/nTn3ha
IMF says Greece must move faster, sees deeper slump
Reuters
The International Monetary Fund (IMF) said on Wednesday that Greece's economy would contract more than previously expected and debt would soar even more despite far-reaching deficit-cutting measures.
http://jlne.ws/piOsLV
Bernanke Says Fed Could Act, but Doesn’t Indicate It Will
Federal Reserve Chairman Ben Bernanke noted in his testimony that the central bank could act if needed, but didn’t offer any indication that it planned to do so any time soon.
http://jlne.ws/qhf107
Bernanke Says Fed Would Consider New Stimulus Effort
By BINYAMIN APPELBAUM, The New York Times
The Federal Reserve chairman, Ben S. Bernanke, gave a subdued account of the economy’s health Wednesday, saying that he expected the economy to grow at a moderate pace during the rest of the year, with unemployment declining “only gradually.”
http://jlne.ws/oSHPMI
Bernanke, Semiannual Monetary Policy Report to the Congress--July 12, 2011
Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
July 13, 2011
Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress (PDF). I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy...
http://jlne.ws/nrwECc
CFTC’s Chilton Says ‘Cheetah’ Traders Must Register for Business
By Silla Brush, Bloomberg
U.S. regulators should require that high-frequency and algorithmic traders register with authorities before they enter financial markets, said Bart Chilton, member of the U.S. Commodity Futures Trading Commission. The traders, which Chilton calls “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process, Chilton said in a speech prepared for a Washington conference held today by the American Soybean Association.
http://jlne.ws/pNijq8
Authorities could bail out banks again, S&P says
By Tom Braithwaite in New York - Financial Times
Officials fighting the next financial crisis may again bail out banks using the public purse, S&P has said, in an opinion that casts doubt on one of the fundamental tenets of US financial reform.
http://jlne.ws/pgdqwa
Sovereign CDS Index Activity Jumps As European Crisis Widens
By Katy Burne Of DOW JONES NEWSWIRES
Trading activity on a derivatives index that tracks the cost of protecting debt issued by 15 European sovereigns jumped Monday to its second-highest level ever after investors shunned Italian government bonds, stoking fears of contagion spreading from the still-unresolved Greek debt crisis.
http://jlne.ws/qR6z8e
Swaps Rules Will Help Market Grow $40.7 Trillion, Citigroup Says
By Matthew Leising - Bloomberg
July 13 (Bloomberg) -- The market for interest-rate and credit-default swaps will grow more than 10 percent to $435 trillion by 2013 as oversight of over-the-counter derivatives improves price transparency and cuts trading risk, according to Citigroup Inc.
http://jlne.ws/rpOI5s
Dodd-Frank Financial-Overhaul Law Debated At US Senate Hearing
By Jessica Holzer, Of DOW JONES NEWSWIRES
With the Dodd-Frank financial-overhaul law set to turn one-year old next week, witnesses and lawmakers at a U.S. Senate hearing debated the law's effect on investors.
http://jlne.ws/pz6Fk2
Consumer Financial Protection Bureau Outlines Bank Supervision Approach
Press Release
The Consumer Financial Protection Bureau (CFPB) today outlined the agency’s approach to supervising large depository institutions to ensure compliance with federal consumer financial protection laws – a supervisory process that will begin on July 21, 2011.
http://jlne.ws/qYE1b7
EU Sees Risks to Financial Stability, Girds for Banks Failing Stress Tests
Bloomberg
The risks to financial stability from analysts using European Union stress-test data to conduct their own exams on banks "should not be underestimated," according to a confidential document prepared by EU officials.
http://jlne.ws/puRINp
IMF Managing Director Christine Lagarde Proposes Appointment Of Mr. David Lipton As First Deputy Managing Director And Mr. Min Zhu As Deputy Managing Director
Press Release
http://jlne.ws/pDdAJV
Statement From U.S. Treasury Secretary Geithner On The Appointment Of David Lipton To Be IMF First Deputy Managing Director
Press Release
http://jlne.ws/r41tOr
China secures key IMF role under Lagarde
By Alan Beattie in Washington, Financial Times
Zhu Min, former deputy governor of the Chinese central bank, was on Tuesday appointed to the top management of the International Monetary Fund, a signal of China’s growing power in the global economy.
http://jlne.ws/pyZr7x
WSJ.com
Fitch Ratings slashed Greece's issuer default ratings four notches deeper into junk territory, saying the move reflected the absence of a new, fully funded and credible European Union/International Monetary aid program.
http://jlne.ws/psUmn2
Italian Debt Risk Puts France’s BNP Paribas, Credit Agricole on Frontline
By Pham-Duy Nguyen and Nicholas Larkin, Bloomberg
Gold futures surged to a record $1,588.90 an ounce as the dollar’s slump and the European debt crisis spurred demand for precious metals as alternative assets. Silver surged the most since March 2009.
http://jlne.ws/p0DW6t
Tentative Outright Treasury Operation Schedule - Federal Reserve Bank of New York
The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
http://jlne.ws/hp922J
Is China’s Economy Finally Slowing Down?
Forbes
Although the Chinese economy continues to grow at a pace that far exceeds its Western counterparts, there are signs that inflation fighting measures by the Chinese government may be having an impact.
http://jlne.ws/nW8HDZ
SIFMA: Housing finance reform in U.S., including the future of GSEs, will be addressed separately from Dodd-Frank Act
Overall housing finance reform in the U.S., including the future of the GSEs, will be addressed separately from the Dodd-Frank Act. The term securitization refers to the process of converting assets with predictable cashflows into securities that can be bought and sold in financial markets. In other words, securitization allows financial institutions to bundle and convert illiquid cashflow-producing assets held on their balance sheets, such as individual mortgage loans or credit card receivables, into liquid securities.
http://jlne.ws/oE8cMt
Gold hits record high on Bernanke, euro worries
Reuters
Gold surged to a record near $1,590 an ounce on Wednesday as the possibility of more Federal Reserve stimulus coupled with Europe's deepening debt crisis fueled bullion's longest winning streak in five years.
http://ow.ly/5DE9M
U.S. Import Prices Fall for First Time in a Year
By Alex Kowalski, Bloomberg
Prices of goods imported into the U.S. dropped in June for the first time in a year as oil and food expenses retreated.
http://jlne.ws/oU1FwK
Philadelphia Fed Appoints Kori Ann Connelly Assistant Vice President and Counsel
Press Release
The Federal Reserve Bank of Philadelphia today announced the appointment of Kori Ann Connelly to assistant vice president and counsel. She will provide legal support primarily to the Human Resources, Financial Management Services, and Law Enforcement departments. She will also administer the Bank's insurance program.
http://jlne.ws/nTn3ha
IMF says Greece must move faster, sees deeper slump
Reuters
The International Monetary Fund (IMF) said on Wednesday that Greece's economy would contract more than previously expected and debt would soar even more despite far-reaching deficit-cutting measures.
http://jlne.ws/piOsLV
Bernanke Says Fed Could Act, but Doesn’t Indicate It Will
Federal Reserve Chairman Ben Bernanke noted in his testimony that the central bank could act if needed, but didn’t offer any indication that it planned to do so any time soon.
http://jlne.ws/qhf107
Bernanke Says Fed Would Consider New Stimulus Effort
By BINYAMIN APPELBAUM, The New York Times
The Federal Reserve chairman, Ben S. Bernanke, gave a subdued account of the economy’s health Wednesday, saying that he expected the economy to grow at a moderate pace during the rest of the year, with unemployment declining “only gradually.”
http://jlne.ws/oSHPMI
Bernanke, Semiannual Monetary Policy Report to the Congress--July 12, 2011
Chairman Ben S. Bernanke
Semiannual Monetary Policy Report to the Congress
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
July 13, 2011
Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress (PDF). I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy...
http://jlne.ws/nrwECc
CFTC’s Chilton Says ‘Cheetah’ Traders Must Register for Business
By Silla Brush, Bloomberg
U.S. regulators should require that high-frequency and algorithmic traders register with authorities before they enter financial markets, said Bart Chilton, member of the U.S. Commodity Futures Trading Commission. The traders, which Chilton calls “cheetahs”, should be “confined” and subject to testing and a pre-trading accreditation process, Chilton said in a speech prepared for a Washington conference held today by the American Soybean Association.
http://jlne.ws/pNijq8
Authorities could bail out banks again, S&P says
By Tom Braithwaite in New York - Financial Times
Officials fighting the next financial crisis may again bail out banks using the public purse, S&P has said, in an opinion that casts doubt on one of the fundamental tenets of US financial reform.
http://jlne.ws/pgdqwa
Sovereign CDS Index Activity Jumps As European Crisis Widens
By Katy Burne Of DOW JONES NEWSWIRES
Trading activity on a derivatives index that tracks the cost of protecting debt issued by 15 European sovereigns jumped Monday to its second-highest level ever after investors shunned Italian government bonds, stoking fears of contagion spreading from the still-unresolved Greek debt crisis.
http://jlne.ws/qR6z8e
Swaps Rules Will Help Market Grow $40.7 Trillion, Citigroup Says
By Matthew Leising - Bloomberg
July 13 (Bloomberg) -- The market for interest-rate and credit-default swaps will grow more than 10 percent to $435 trillion by 2013 as oversight of over-the-counter derivatives improves price transparency and cuts trading risk, according to Citigroup Inc.
http://jlne.ws/rpOI5s
Dodd-Frank Financial-Overhaul Law Debated At US Senate Hearing
By Jessica Holzer, Of DOW JONES NEWSWIRES
With the Dodd-Frank financial-overhaul law set to turn one-year old next week, witnesses and lawmakers at a U.S. Senate hearing debated the law's effect on investors.
http://jlne.ws/pz6Fk2
Consumer Financial Protection Bureau Outlines Bank Supervision Approach
Press Release
The Consumer Financial Protection Bureau (CFPB) today outlined the agency’s approach to supervising large depository institutions to ensure compliance with federal consumer financial protection laws – a supervisory process that will begin on July 21, 2011.
http://jlne.ws/qYE1b7
EU Sees Risks to Financial Stability, Girds for Banks Failing Stress Tests
Bloomberg
The risks to financial stability from analysts using European Union stress-test data to conduct their own exams on banks "should not be underestimated," according to a confidential document prepared by EU officials.
http://jlne.ws/puRINp
IMF Managing Director Christine Lagarde Proposes Appointment Of Mr. David Lipton As First Deputy Managing Director And Mr. Min Zhu As Deputy Managing Director
Press Release
http://jlne.ws/pDdAJV
Statement From U.S. Treasury Secretary Geithner On The Appointment Of David Lipton To Be IMF First Deputy Managing Director
Press Release
http://jlne.ws/r41tOr
China secures key IMF role under Lagarde
By Alan Beattie in Washington, Financial Times
Zhu Min, former deputy governor of the Chinese central bank, was on Tuesday appointed to the top management of the International Monetary Fund, a signal of China’s growing power in the global economy.
http://jlne.ws/pyZr7x
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