KeNosHousingPortal.blogspot.com
TOP STORIES:
US banks face losses on loan commitments - (www.ft.com) US investment banks are facing losses on financing commitments for buy-outs and other deals struck before the recent market turmoil, as they sell down about $25bn in loans and junk bonds. Banks have had to make concessions to entice a broader range of investors to buy loans linked to mergers and acquisitions, including offering discounts, amid deepening concerns about the US economy. With a significant pipeline of debt sales planned for the autumn, market participants have been waiting to see whether banks would choose to shift commitments, even at a loss, or hold paper in the hope of an improvement in sentiment. “There is clearly less buyer capacity in the loan market,” said one financier. “But Wall Street is willing to sell paper at levels where they take a small loss, rather than have an overhang.”
ETF sector braces for draconian clampdown - (www.ft.com) Providers of synthetic exchange traded funds are bracing themselves for a draconian clampdown by regulators following reports that an ETF trader was allegedly involved in a $2.3bn trading scandal at UBS. The European Securities and Markets Authority, Esma, is due to hold a public meeting in Paris on Monday to discuss reforms after issuing a consultation paper in July that indicated regulators were prepared to consider a comprehensive re-writing of the rules governing ETFs and structured Ucits. Synthetic ETF providers were already fighting a rearguard action against regulators considering a ban on the sale of these derivative-linked instruments to retail investors. Now they face further problems as European policymakers consider the implications of a recurrence of a trading scandal on a Delta One trading desk, the same area where Jérôme Kerviel’s unauthorised trading cost Société Générale €4.9bn in 2008. Delta One trading includes equity swaps and futures as well as synthetic ETFs.
Banks Splinter on Europe Debt Crisis - (www.bloomberg.com) Wall Street leaders, urging coordinated action from world governments to solve the European sovereign-debt crisis, struggled themselves during four days of meetings in Washington to agree on what’s needed to end it. The chiefs of firms including JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS), Deutsche Bank AG (DBK) and Societe Generale (GLE) SA met for three hours at the National Archives on Sept. 23. They differed on which government and private solutions may restore confidence in European debt and banks, and on some elements of regulation, said two participants who spoke on condition of anonymity because the meeting wasn’t public. “It was a big group there, they’re going to differ about stuff; there’s a lot of tension in the air because of the world we live in,” Morgan Stanley (MS) Chief Executive Officer James Gorman, 53, said as he left the event, which coincided with weekend meetings of the International Monetary Fund and Institute of International Finance. “There’s no one solution. It’s going to be 25 different things.”
Lloyd’s Insurer Sues Saudi Arabia for Funding 911 Attacks - (www.dvorak.org) A Lloyd’s insurance syndicate has begun a landmark legal case against Saudi Arabia, accusing the kingdom of indirectly funding al-Qa’ida and demanding the repayment of £136m it paid out to victims of the 9/11 attacks. The Brighton-based Lloyd’s 3500 syndicate, which paid $215m compensation to companies and individuals involved, alleges that the oil-rich Middle Eastern superpower bears primary responsibility for the atrocity because al-Qa’ida was supported by banks and charities acting as “agents and alter egos” for the Saudi state. The detailed case, which names a number of prominent Saudi charities and banks as well as a leading member of the al-Saud royal family, will cause embarrassment to the Saudi government, which has long denied claims that Osama bin Laden’s organisation received official financial and practical support from his native country.
Student Loans Forgiveness? Why Not Make Higher Education Free? - (www.associatedcontent.com) I just read a "petition" for President Obama to forgive student loans on facebook, and it got me thinking... why put a band-aid on this issue? Why not petition to make higher education free (or tax-payer funded), similar to how elementary, middle and high schools are? Or most countries in Europe? Sounds like a "socialist" idea? Perhaps, and even a radical concept, but who really benefits by making higher education expensive, and privatized/or for-profit? On the other side of the spectrum, who benefits my making higher education free, and open to everyone? It may sound ambitious but by providing education to everyone who is willing, passionate and driven to learn and acquire new skills and knowledge, individuals can potentially contribute something valuable in order to advance our society. If one wants to become a doctor, money should not be a deterrent.
Record Cash Crunch Forecast to Abate as Global Outlook Dims: China Credit - (www.bloomberg.com)
Danish Bank Crisis Deepens as Lender Tax Threatens Capital - (www.bloomberg.com)
Tumbling Bonds Make Sales Harder for Italy, Spain: Euro Credit - (www.bloomberg.com)
ECB fights to avoid role in euro zone rescue fund - (www.reuters.com)
ECB Said to Consider Covered-Bond Purchases to Inject Liquidity in Marketsv- (www.bloomberg.com)
Zloty Goes From First to Worst Amid Crisis - (www.bloomberg.com)
Analysis: Banks prepare for Greek default, want EU help - (www.reuters.com)
Tricky exit from emerging markets - (www.ft.com)
‘Barrier’ Around Greece Needed: Merkel - (www.bloomberg.com)
Greece Minister: ‘Whatever It Takes’ to Solve Crisis - (www.bloomberg.com)
Merkel’s eurozone battles far from over - (www.ft.com)
New home sales in August fall to 6-month low - (www.reuters.com)
Fed’s Bullard Says Long-Term Economic Growth May Be Lower Following Bubble - (www.bloomberg.com)
As Sides Dig in, Congressional Deficit-Reduction Panel Has an Uphill Fight - (www.nytimes.com)
No comments:
Post a Comment