Skip navigation
Watchlist Sponsored By :


Current DateTime: 02:47:43 06 Jul 2009
LinksList Documentid: 24355697
  • Collection of Michael Jackson

      Earlier this year, Jackson sought to auction his personal items. Although it never came through, here's a look at what was almost sold.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.

  • How Much For A T-Bone Steak?

      From the cost of a T-bone steak to a monthly phone bill, the price for everyday items can vary dramatically across the country.


Current DateTime: 02:47:43 06 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

By: Reuters | 26 Nov 2007 | 12:50 PM ET
Text Size

The U.S. Federal Reserve and European Central Bank announced plans to pump more funds into troubled money markets to give banks enough cash to get them through a year-end squeeze.

Meanwhile, Britain's main casualty in the global credit crisis, Northern Rock, found a potential rescuer while Europe's biggest bank, HSBC, said it would rescue two of its own complex investment vehicles.

Goldman Sachs downgraded HSBC shares [HBC  Loading...      ()   ] to "sell," saying HSBC would
HSBC
AP
HSBC said it would take its two structured investment vehicles onto its balance sheet to avoid a forced sale of their underlying assets.

probably need to set aside a further $12 billion against losses on U.S. mortgage debt, in addition to providing up to $35 billion in backing for the investment vehicles.

Persistent concerns about banks' year-end funding drove up interbank rates and the Fed said it would put enough funds into the money markets into the new year to resist upward pressures on its benchmark interest rate, the fed funds rate.

The European Central Bank also confirmed on Monday it would continue to offer banks extra funds at its weekly tenders at least until early next year.

Northern Rock said a consortium led by Richard Branson's Virgin Group was its preferred bidder and planned swift repayment of 11 billion pounds ($22.6 billion) of emergency lending from the Bank of England.

The UK central bank is estimated to have lent Northern Rock 25 billion pounds since mid-September after global fears of exposure to high-risk debt dried up the money markets that had helped fund its mortgages.

The global squeeze that ended a long-running credit boom in August has slashed the earnings of major banks around the world and investors fear more losses will emerge as banks unwind the complex investments they made based on repackaged assets of varying creditworthiness.

HSBC Holdings said it would take its two structured investment vehicles (SIVs), Cullinan and Asscher, onto its balance sheet to avoid a forced sale of their underlying assets -- most of them still highly rated.

HSBC said it hoped the move would restore some confidence to the sector whose access to short-term funding has been severely limited since defaults on U.S. mortgage debt made investors shun asset-backed commercial paper.

Tools:
Print EmailAdd This share icon


Current DateTime: 02:03:05 06 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 11:26:00 06 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 12:11:29 06 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:04:51 06 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters