Doubts about Europe's $1 trillion bailout prompted many experts to question whether the market rally will be short-lived as well.
After a highly anticipated week of leaks and rumors over how many, and which banks, will pass or fail the "stress test", the results are in. Only seven of 91 European banks flunked. Such a surprise... well, not really.
A sharp divide has been revealed between Bank of England Governor Mervyn King and the majority of his policy makers. George Buckley from Deutsche Bank considers the outlook.
The over-under for the European bank stress tests are 12 out of 91 fail the tests and need capital injections. Unlike the US stress tests, the European tests didn’t tell us the metrics or guidelines before the tests were run. This has generated uncertainty over exactly how these banks are going to perform.
No way only 7 of 91 European banks could pass a real stress test. No way could only €3.5 billion in new capital be needed. When the US tested 19 banks a little while ago, 10 were found to be deficient, and $75 billion in new capital had to be raised. It's ok if everyone at MIT passes every test.
The world's biggest lender by market value ICBC's first-half results beat expectations Thursday, reporting a profit of $9.7 billion. "The Chinese banks are the most popular banks in the world right now," Peter Hoflich from The Asian Banker said.
Does the price action on major banks in Europe tell investors that the continent is now not a threat to risk appetite and that Wall Street can mount a sustained rally without a repeat of May’s negative blow-up?
Many banking stocks have had the worst-case scenario priced in and that really hasn't been the case, Robert Pavlik from Banyan Partners told CNBC Thursday. Pavlik discusses the outlook for the banking sector.
We had a good Easter and better weather which contributed to most retailers reporting good figures, Elissa Bayer from Charles Stanley said Thursday. "But the retailers have been discounting like mad. Even the autumn stuff coming in is highly discounted."
European banking regulators are preparing to introduce a “near fail” category into the new stress test process as part of a mechanism to force recapitalizations on weaker banks, the Financial Times reported.
UK July retail sales hit a 14-month high while government borrowing posted a record deficit for the month. Alan Clarke from BNP Paribas said it was encouraging for the bond market that there was the dissent among Bank of England members, as it suggests the BoE can increase its quantitative easing program again.
Take a look at the failures of 2008 as measured by total assets and the cost to the FDIC’s deposit insurance fund.
Lehman Brothers' bankruptcy protection filing is the largest in history, dwarfing all others. Take a look at the ten biggest corporate filings in US bankruptcy court.
Hasty takeovers, government bailouts, bankruptcy filings, CEO ousters and lots of interest rate cuts. Click for the big events of the big bust.
The US government has taken a number of dramatic steps—both conventional and extraordinary—to try to remedy the problem. Take a look at what's been done.
Stock markets around the globe suffered dramatically during the week ending October 10th but how bad was it really? Here are the numbers.
Central bankers are to blame for the current financial crisis, according to Andrew Smithers, author of "Wall Street Revalued" and founder of Smithers & Company. He suggests they employ different policies so further crises will be prevented.
Contrary to popular belief, bankers and politicians are not to blame for the financial crisis. Rather, it’s systemic flaws in the very nature of democracy that allowed financial imbalances to take root.