CNBC's Simon Hobbs reports on all the market moving events in Europe today, including the mayoral election in London. » Read More
With AIG set to pay $165 million in bonuses to workers at the unit that nearly brought it down, the list of the insurer's counterparties shows that big European banks were among the top beneficiaries of the taxpayer-financed bailout.
AIG, the insurance giant that received taxpayer-funded bailouts worth $173 billion and sparked a political storm with its plans to pay $165 million in bonuses, revealed the list of its counterparties.
The stock market is still an unsafe place for investors as quantitative easing, by which central banks boost the supply of money attempting to kick-start economies, is unlikely to work, Hugh Hendry, Chief Investment Officer at Eclectica, told CNBC.
We might have strayed a bit from the rulebook on a good dinner party this morning as we sat back and watched hedge fund manager Hugh Hendry of Eclectica lock horns with Liam Halligan, the chief economist at Prosperity Capital and maverick columnist for the UK’s Telegraph newspaper.
Acres of forest have gone to the blade while the mainstream media has debated the issue of bank nationalization, but few if any seem to be prepared to address what seems obvious: the most important banks are already under government control.
At least two dozen US and European banks benefited from the rescue of AIG, with about $50 billion paid out to them since the Fed first gave aid to the insurance giant, the Wall Street Journal reported.
The figure of $1.3 trillion for the exposure of Western banks to the Central and Eastern European region reported by the Bank for International Settlements is too high, Andreas Treichl, CEO of Erste Bank, one of the biggest banks operating in CEE, told CNBC Wednesday.
American International Group should be allowed to go bankrupt because keeping it and other sick financials alive on government support risks ruining the US economy, legendary investor Jim Rogers told CNBC Tuesday.
The unpalatable truth is that equity markets seem the purest measure of investor confidence, corporate health and economic prediction.
The current global slowdown is hitting those in every economic category, as even the very wealthy rein in spending.
The most obvious pothole on the road to reparation is mark-to-market valuation; and it remains a mystery to me as to why this less than two-year old accounting rule remains the most ignored portion of debate.
Investors will have to short government bonds at some point despite their current attraction, as the amount of debt issued is "staggering" and inflation risks are down the road, Jim Rogers, CEO of Jim Rogers Holdings, told CNBC Tuesday.
The new financial rescue plan may not work and could even make things worse because it plunges the US further into debt and it is designed by the same people who failed to forecast the crisis and take measures, legendary investor Jim Rogers told CNBC Tuesday.
Billionaire investor Warren Buffett has led the charge into the battered stock market of late by making large acquisitions at a time when most investors are fiercely protecting their cash. One analyst told CNBC that even though he is suffering some heavy losses in the short term, the strategy will pay off.
The Fed could cause Zimbabwe-like inflation making the US a 'banana republic,' famous bear Marc Faber said.
Top executives at companies taking government money from the TARP will likely see their pay slips capped at $500,000 under a new initiative to be announced Wednesday by President Barack Obama. But one analyst told CNBC that the move could have a negative effect.
Want to be a star at WEF? Storm out of a panel, the Congress Center, Davos and Switzerland altogether.
Why can't the banks trust each other? I mean, they can pay back their money, can't they? Don't they just make more?
US and global stocks are still likely to fall because the corporate and economic news will be worse than expected, Nouriel Roubini, RGE Monitor Chairman, told CNBC in Davos.
The recent lull in the government bond market's bullish tone only enhances the arguments for ramping-up a portfolio of the heretofore dullards of the financial markets.