Wednesday, April 10, 2013

Thursday April 11 Housing and Economic stories


TOP STORIES:

EXPAT: People Are Already Calling Me, Trying To Figure Out How They Can Leave Cyprus - (www.businessinsider.com) Officials are doing everything they can to prevent capital from fleeing Cyprus after the country's banking sector melted down. George Iordanou, a Cypriot PhD Candidate at the University of Warwick whose bank protest photos we ran earlier this week, says the country already has a much larger problem on its hands: people themselves are already planning to leave. He told us via email that two of the most popular private schools are already struggling to fill spots, though it was not immediately clear when the schools, Grammar and Pascal, began accepting applications. In any event, he writes, brain drain seems imminent: Many people are planning to leave the country. I live in the UK and I have gotten various calls from people asking for my help - whether it is easy to get a job, a house and so on. My response was that they shouldn't come to the UK without a job since the cost of living is substantial and their chances of getting  a job are not very favourable.

Cyprus to limit cash, credit-card use abroad: report - (www.reuters.com) Cyprus is to impose a ban on cashing cheques and limit the amount of cash that can be taken out of the country under a series of measures to avert a run on its s crippled banks, a Greek newspaper reported on Wednesday. The Kathimerini newspaper, citing a government decree, said the measures would remain in force for seven days after the banks re-open on Thursday. Cypriots who want to transfer money overseas will have to prove that the transactions meet strict rules laid out by the government. To allow trade to continue, Cypriot businesses can pay for imports if they provide authorities with the necessary documentation. The use of credit and debit cards overseas is restricted, and individuals travelling abroad can take a maximum of 3,000 euros on each trip.

JPMorgan Chase Faces Full-Court Press of Federal Investigations - (www.nytimes.com) As the nation’s strongest bank, JPMorgan Chase used to be known for carrying special sway with regulators. Now it increasingly finds itself in the cross hairs of federal authorities. At least two board members are worried about the mounting problems, and some top executives fear that the bank’s relationships in Washington have frayed as JPMorgan becomes a focus of federal investigations. In a previously undisclosed case, prosecutors are examining whether JPMorgan failed to fully alert authorities to suspicions about Bernard L. Madoff, according to several people with direct knowledge of the matter. 

Spanish deficit, retail figures deepen economic gloom - (www.reuters.com) Spain revised up its public deficit for 2012 on Wednesday, piling pressure on the government to scale down its budget ambitions for 2013 as data suggested economic recovery was a distant prospect. Treasury Secretary Marta Fernandez Curras said the fiscal gap was 6.98 percent last year rather than the 6.7 percent announced previously - and excluding the billions of euros Spain borrowed to recapitalize its ailing banks. Spain moved away from center stage in the euro zone debt crisis at the end of 2012, with renewed appetite for the country's debt among investors backstopped by a European Central Bank bond-buying promise.

Sneaky financial deregulation via the House Agriculture Committee - (www.salon.com) Imagine you’re a finance lobbyist and want to move deregulation and other industry-friendly policies through Congress. While you might think the House Financial Services Committee would be the logical place to do it — since it has jurisdiction over financial issues, naturally — what if there were a sneaky way to maneuver it through a far less scrutinized committee, so most people would have no idea what you were doing? This is the story of how the world’s largest banks came to love the House Agriculture Committee. In Washington, we often witness politicians forgetting the lessons of a year or five years or 10 years ago. It takes some special obliviousness to forget the lessons of Friday. Five days ago, Sen. Carl Levin, D-Mich., delivered a critical report and held an explosive hearing detailing the “London Whale” trades, made by a JPMorgan Chase satellite office in London. As you may have read, these trades turned sour and led to a $6.2 billion loss for the bank in a matter of weeks. More important, JPMorgan misled regulators about the nature of the trades, altered its internal processes to take on more risk, and then hid the losses by improperly mismarking the value on its balance sheet, pretending the shortfall was inconsequential to avoid oversight and present a positive financial picture to investors.





Cyprus seeks 11th-hour deal to avert collapse - (www.reuters.com)

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