Wednesday, March 20, 2013

Thursday March 21 Housing and Economic stories


TOP STORIES:

Two Frances on one street in "lazy" tire worker town - (www.reuters.com) The U.S. tire executive who infuriated the French by calling workers at a doomed Goodyear factory "not worth saving" might have formed a different impression of France had he visited the Dunlop factory across the street. The Dunlop plant near Amiens in northern France was the mirror image of the plant that Titan International (TWI.N) CEO Maurice Taylor, nicknamed The Grizz for his gruff demeanor, had considered buying before dropping the idea and complaining the workforce spent as much time talking as working. But the two plants, whose shared parent is Goodyear Dunlop, chose different destinies four years ago when Dunlop's unions accepted tougher labor conditions and Goodyear's rejected them. Now Goodyear faces closure, while Dunlop has received more than 50 million euros ($65 million) in investment. "The bottom line is that our jobs are staying, and across the street there are 1,173 guys who are going to be on benefits," said a Dunlop union leader who asked to remain anonymous to avoid adding to what he called "severe" tensions with Goodyear workers. "Draw your own conclusions."

ISDA Plans Biggest Overhaul to Credit Derivatives Since 2003 - (www.bloomberg.com) Greece’s debt restructuring last year raised concern about potential flaws in the insurance contracts. No time frame has been set for changes to the market created by banks including JPMorgan Chase & Co., which will follow a 2009 revision of rules that included new standards boosting transparency and confidence, New said. “This review is about looking back at the experience of the past 10 years since the 2003 definitions were published and thinking about what have we learned in that time and what changes might need to be made,” New said in a phone interview. “The working group is very much ongoing and considering a lot of different proposals.” There are a total 2.14 million contracts covering a gross $24 trillion worth of credit products, according to the Depository Trust & Clearing Corp., which runs a central registry for the derivatives market.

Fallout from 'Untouchables' Documentary: Another Wall Street Whistleblower Gets Reamed  - (www.rollingstone.com) On those questions, the DOJ would say only that "it is entirely appropriate for prosecutors to hear from subject matter experts at relevant regulatory authorities" and that . . . When the Department consults with relevant regulatory authorities, or hears from companies who are targets of the Department's investigations and their counsel regarding potential collateral consequences of enforcement actions, neither those agencies nor the target companies receive any compensation from the Department. That is one hell of a slippery piece of language. It's great that the Department of Justice is not paying, say, HSBC to consult with them on the question of whether or not HSBC should be prosecuted. What a relief! But that doesn't mean they're not paying someone else for that kind of advice.''

Securitization Lobby in Disarray After Most Directors Quit - (www.businessweek.com)  The main trade association for the securitization industry is in turmoil after most of the board resigned in a dispute with the group’s executive director over governance and bonuses, according to six people with knowledge of the matter. The exodus at the American Securitization Forum puts the future of the group in question, said the people, who spoke on condition of anonymity because the dispute isn’t public. Members that quit include Bank of America Corp (BAC)., JPMorgan Chase & Co. (JPM), Deutsche Bank AG, Citigroup Inc. (C) and law firm Cadwalader, Wickersham & Taft LLP, the people said. The resignations came after the board attempted to remove the forum’s executive director, Tom Deutsch, but was unable to fire him because of the way the association’s governing documents are written, said the people. Part of the dispute concerns bonuses that Deutsch was paid, the people added.

Spain Financial Industry Overhaul Faces Hurdles, EU Says - (www.bloomberg.com) Spain is backsliding on economic reforms, fueling risks for its banking system in the midst of an overhaul that faces “significant challenges,” the European Commission said. “Progress in delivering of some key product and services market reforms has been slow,” the Brussels-based commission said today in its second review of Spain’s bank rescue program. “Persistent efforts are needed to compound the progress achieved to date” on the banking system and “to overcome the still significant challenges.” Officials from the commission and the European Central Bank visited Madrid from Jan. 28 to Feb. 1., and the International Monetary Fund participated in the review. The cleanup of the banking industry is on track so far, the report said. Prime Minister Mariano Rajoy is hesitating over EU demands to remove privileges from party operatives, union members and professional advisers in an attempt to contain the fallout from a series of corruption scandals rocking his party. 







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