German “bad bank” agencies holding billions of euros of Greek debt have still to decide whether to join a bond swap designed to cut Athens’ refinancing burden as part of an EU bail-out, the FT writes.
In Jackson Hole Wyoming on Saturday Jean-Claude Trichet, the president of the European Central Bank was due to give a speech to a meeting of policy makers hosted by the Federal Reserve. As he prepared to speak the euro zone faced huge problems.
Federal Reserve Chairman Ben Bernanke is unlikely to announce a third round of quantitative easing in his Jackson Hole speech this afternoon, Tony Fratto, the director of Hamilton Place Strategies, a public policy research firm, told CNBC.
In any murder mystery film, it pays to watch the boring gray man (or woman) in the corner; quiet, unobtrusive characters can be deadly. So, too, in finance. Four years ago, the giant US money market funds seemed some of the dullest actors in the global financial scene. But in 2007, they quietly helped to spark the crisis in the mortgage-backed securities world.
Chris Wheeler, bank analyst at Mediobanca joined CNBC to discuss the latest news on the European markets and what would happen if the Greek bailout fails.
"Greece has most definitely been cut loose by the markets, the question is whether it will now be cut loose by the politicians," Steve Barrow, head of G10 research at Standard Bank, told CNBC.
French President Nicolas Sarkozy is due to meet with Prime Minister Francois Fillon, Finance Minister Francois Baroin and Budget Minister Valerie Pecresse on Wednesday morning to decide where to slash the national budget.
On July 21, EU leaders agreed to a second bailout for Greece, one that was supposed to draw a line under the euro zone debt crisis and give the new government in Athens a chance come to grips with the huge debts it inherited when it was elected. One month later, and the situation appears to be getting worse rather than better, according to Simon Derrick, the head of currency research at Bank of New York Mellon.
The fact that Deven Shama, the president of Standard & Poor’s, has stood down from his job just a couple of days after the agency downgraded the United States' credit rating has raised questions over whether he is being made into a scapegoat to deflect political pressure on the credit ratings agency.
I expect that a lot of the attention will be paid to William J. Harrington’s analysis of how conflicts of interest at Moody’s contributed to the financial crisis—and his idea to fix the rating system.
The Republicans are calling for more spending cuts. But bond fund leaders say the better thing for the U.S. government to do is to spend now and save later. The NYT reports.
"Unless the government starts to get its fiscal house in order, does mandatory budget reform in the Congress with this [Super] Committee, I fear things will get considerably worse," said Robert Rodriguez.
He believes the Fed has created enough liquidity, but it's tax and regulatory barriers that have blocked growth and job creation. He also responds to GOP attacks on the Fed.
Three US municipalities have dropped Standard & Poor’s ratings of their local government investment funds in retaliation for the rating agency’s downgrade of US government debt to double A plus. The FT reports.
An enforcement lawyer at the Securities and Exchange Commission says that the agency illegally destroyed files and documents related to thousands of early-stage investigations over the last 20 years, according to information released Wednesday by Congressional investigators, reported the New York Times.
The Justice Department is investigating whether Standard & Poor’s rated mortgage securities improperly leading up to the financial crisis. The NYT reports.
'Dim Sum' bonds – yuan-denominated instruments issued through Hong Kong – are set to become a major market as investors look for alternatives to Western issuance and exposure to China, according to one investment manager.
Will the purchase of MMI negatively impact GOOG's growth, margins & balance sheet? Making a case for downgrading the tech giant, with Scott Kessler, Standard & Poor's equity research .
With the 10-year Treasury yield reaching lows not seen since the collapse of Lehman Brothers in 2008, some experts argue that a volatile economic climate with a recession is now likely.
As a long-time bond bull, my gratitude to the know-nothings in the Tea Party is profound. So what if they played a major role in taking a thousand points off the stock market in the wake of the U.S. debt downgrade?