Judge Adds The Fed To List Of Financial-Crisis
Lawbreakers In AIG Ruling - (www.forbes.com)
It’s cold consolation for former AIG Chairman Hank Greenberg and his
shareholders now, but a federal judge in Washington has ruled that the Federal Reserve broke
the law when it seized almost 80% of AIG’s stock and charged it loan-shark
rates for an $85 billion bailout in the depths of the financial crisis. The
Fed’s behavior was all the more reprehensible because it gave other financial
firms like Citigroup, Bank of
America,
Goldman Sachs and Morgan
Stanley tens
of billions of dollars in emergency loans on better terms. Many of those firms,
Judge Thomas C. Wheeler noted in his 75-page decision, “engaged in much riskier and more culpable
conduct than AIG, but received much more favorable loan treatment from the
Government.”
Are junk bonds sending an early warning to markets? - (www.cnbc.com) While
stocks are mildly higher over the past two months, high-yield bonds have fallen
by more than 2 percent—and some say that presents an early warning for markets
as a whole. To Larry McDonald, head of U.S. strategy with Societe Generale's
macro group, the underperformance of high-yield bonds is a "systemic risk
indicator," showing the possibility of instabilities within the financial
system. After all, high-yield bonds tend to track stocks closely. Since they
are much more sensitive to concerns about default than most fixed-income
products—hence their high yields, and their more colorful "junk bond"
moniker—they are much more levered to the business cycle and the state of the
economy. That makes them similar to stocks. One theory is that
"cracks" show in the high-yield market before they appear in the
stock market, making divergence between junk bonds and stocks an indicator for
where the market is going next. Since junk bonds have been underperforming, the
concern would be that stocks are next to fall.
Greek central bank governor warns of
'uncontrollable crisis' - (www.theguardian.com) Greece’s
radical Syriza government
has confirmed that it will run out of money by the end of the month unless its
creditors agree to release €7.2bn (£5.1bn) in bailout funds. As Athens prepared
to meet its lenders on Thursday amid an increasingly sour atmosphere of claims
and counter-claims, lead negotiator Euclid Tsakalotos conceded that the country
does not have the funds to make a €1.6bn payment due to the International
Monetary Fund due on 30 June. Athens delayed a payment to the IMF earlier this
month, saying it would take advantage of a technical loophole, allowing it to
“bundle” three tranches due this month into a single €1.6bn payment. But
Tsakaolotos has now admitted that Greece simply does not have the money. He also
underlined the fact that while Greece is still willing to make concessions to
its lenders, it will not make pensions cuts — a key point of contention in the
negotiations.
Even millionaires live
paycheck to paycheck - (www.cnbc.com)
It seems the rich are like the rest of us after all. One in five respondents
with investable assets of $100,000 to $1 million, and 1 in 10 with investable
assets of $1 million up to $10 million believe they have too much debt and are
living paycheck to paycheck, according to a poll taken by MaritzCX. Among the
1,044 investors surveyed in November and December, 45% are worried they won't
have enough income to last through retirement. And 30% believe they will have
to work during that period of their lives. "What this is saying to me is
even when you start looking at people who have managed to accumulate some
wealth, they are also concerned about their future and about retirement,'' says
Rich Brose, senior director strategic consulting for financial services at
MaritzCX, which provides customer experience software and research services to
help companies improve sales and customer retention. "They share a lot of
the same concerns as ... the middle class and even people who might be
struggling a little bit more.''
Govt lifts 'robosigning' restrictions on
certain banks - (www.cnbc.com) Restrictions
placed on certain banks for mortgage "robosigning" will lift as the
firms have taken steps to fix their processes and pay restitution, the Office
of the Comptroller of the Currency said Wednesday. The agency's consent orders
against Bank of America, Citibank andPNC Bank will be terminated. Other banks will face
additional servicing restrictions as they have not met all of the requirements
of their consent orders. Institutions including EverBank, HSBC Bank, JPMorgan
Chase, Santander, U.S. Bank and Wells Fargo have not reached the standards set in
their agreements, the OCC said. However, it will not impede consumer access to
mortgages as they will still be able to make loans.
Greek central bank issues 'Grexit' warning if aid talks fail
- (www.reuters.com)
Tsipras: Greece Ready to Give ‘Big No’ to Bad Agreement - (www.bloomberg.com)
Will Greece leave the euro? A look at its options - (finance.yahoo.com)
Fed Decision Day Guide: Interest-Rate Projections, Gradual Pace - (www.bloomberg.com)
Tsipras: Greece Ready to Give ‘Big No’ to Bad Agreement - (www.bloomberg.com)
Will Greece leave the euro? A look at its options - (finance.yahoo.com)
Fed Decision Day Guide: Interest-Rate Projections, Gradual Pace - (www.bloomberg.com)
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