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Dexia borrowed own money to fund capital boost: report - (www.reuters.com) The newspaper said that Dexia Bank Belgium, a wholly owned subsidiary of the listed Dexia entity that was seeking funds, loaned Holding Communal, an arm of Belgium's powerful municipalities, 1.2 billion euros which was largely used to participate in two Dexia capital increases in 2006 and 2008. While, Arco, which invests on behalf of a Belgian trade union, borrowed 275 million purely for the cash calls, according to the FT. The two parties jointly owned 35 percent of Dexia shares, and continue to be represented on its board, the FT said. The funding move by the stricken Franco-Belgian lender, that has been at the center of recent market turmoil, amounted to it effectively borrowing money from itself to finance a capital increase. In a further twist, the FT reported that Dexia accepted its own shares as collateral for the loans. The arrangement meant that any falls in the bank's share price left it potentially nursing large losses.
ALL-TIME LOW: Obama's Job Approval Average Plummets - (www.businessinsider.com) More bad poll news for President Obama. According to Gallup, Obama's approval average hit an all-time low in the last quarter (his 11th) falling as low as 38%. Gallup reports that from July 20-Oct. 19, 2011, Obama's approval rating "ranged narrowly between 38% and 43% for all but a few days of the quarter." His 41% average is a full six points down from his 10th quarter. This is not just a low for Obama it's also an historical low. Gallup notes that the only president since Dwight Eisenhower to have a lower 11th quarter was Jimmy Carter who hit 31%.
EU Said to Mull Wielding $1.3T to Break Impasse - (www.bloomberg.com) European governments may unleash as much as 940 billion euros ($1.3 trillion) to fight the debt crisis, seeking to break a deadlock between Germany and France that is forcing leaders to hold two summits within four days. Negotiations on combining the European Union’s temporary and planned permanent rescue funds as of mid-2012, while scrapping a ceiling on bailout spending, accelerated this week after efforts to leverage the temporary fund ran into European Central Bank opposition and provoked the French-German clash, two people familiar with the discussions said. They declined to be identified because political leaders will have to decide. The option may be one way out of the impasse between Europe’s two biggest economies as President Barack Obama presses for them to find a solution. Finance ministers meet in Brussels today from about 2 p.m. to lay the groundwork for an Oct. 23 meeting of government leaders that had been the deadline for a solution to the debt crisis. A summit for Oct. 26 was set yesterday after Germany and France said the EU needs more time to seal a “global and ambitious” accord. “The market wants the euro crisis solved yesterday, and the politicians and finance ministries seem to be saying ‘yes we can, but no we won’t,’” Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi UFJ Ltd., said in an e-mail. “Europe has the wealth to deal with Greece, it is just that the process is incredibly complex.”
Bernanke's Latest 'Hints' Should Infuriate 280 Million Americans - (www.businessinsider.com) Once again, as the Fed tries desperately to boost stock prices, savers get screwed. I find myself this morning hoping for the failure of the Federal Reserve. This implies that I’m also hoping for a collapse in the equity markets and a severe recession. Coupled with that, I want to see that the massive increase in money supply and the endless interventions of the Fed bring us a round of much higher inflation. I want the Fed to fail so miserably that they are marginalized for the next twenty years. I want Bernanke fired. I want the Fed disgraced. I’m not rooting for this to happen because I’m short assets. I’m not hoping for more pain for Americans. I don’t want to see a collapse in the economy.
Louisiana prohibits residents from using cash when buying, selling secondhand goods - (www.naturalnews.com) If you buy or sell secondhand goods and live in the state of Louisiana, you can no longer use legal tender to complete such transactions. Ackel & Associates LLC (A&A), a professional law firm, explains that House Bill 195 of the 2011 Regular Session (Act 389), which was recently passed by the state legislature and signed into law by Gov. Bobby Jindal, prohibits anyone who "buys, sells, trades or otherwise acquires or disposes of junk or used or secondhand property [from entering] into any cash transactions in payment for the purchase of [such items]." Besides prohibiting the use of cash, the law also requires such "dealers" to collect personal information like name, address, driver's license number, and license plate number from every single customer, and submit it to authorities. And the only acceptable form of payment in such situations is a personal check, money order, or electronic transfer, all of which must be carefully documented.
France Likely to Lose Top Rating in Stressed Economic Scenario, S&P Says - (www.bloomberg.com)
ECB Said to Weigh Bigger Loans for Banks Revealing More on Loan Collateral - (www.bloomberg.com)
ECB's Stark says rescue packages may do more harm than good - (www.reuters.com)
ECB Deposits Rise as Banks More Reluctant to Lend to Each Other - (www.bloomberg.com)
EU shake-up for rating agencies - (www.ft.com)
German Business Confidence Falls to 16-Month Low - (www.bloomberg.com)
Worst Thailand Floods in Half Century Disrupt Apple, Toyota Supply Chains - (www.bloomberg.com)
Berlusconi’s Bank Choice Risks France Tensions - (www.bloomberg.com)
Fed debate about more easing heats up - (www.reuters.com)
New report shows more workers falling behind average wage level - (www.washingtonpost.com)
Tarullo Call for Fed Mortage-Debt Buying May Raise Odds of Further Easing - (www.bloomberg.com)
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