FINANCIAL News, Money, Banks, Economic and Financial Crisis, Oct 28, 2011

Europe Eyes IMF Channel for Aid as China Mulls Contribution San Francisco Chronicle Oct. 28 (Bloomberg) -- European officials are studying the potential for an International Monetary Fund channel for money for their enlarged rescue fund, as China considers contributing to ending the area's sovereign-debt crisis. The European Financial ... See all stories on this topic »

Five ways the European debt crisis could affect the US USA Today For Obama, the US financial crisis that preceded his election set the stage for three years of economic volatility. But at least in 2009, he took office with a mandate from the voters, a Democratic majority in Congress to push through his economic ... See all stories on this topic » USA Today

G20 leaders prepare for Cannes amid fears of Nightmare on Growth Street II The Guardian The recovery started well, but gradually petered out as it became clear that the banks' difficulties ran deeper than feared and the problem of over-indebtedness at the root of the financial crisis had not really been solved. Rather large chunks of the ... See all stories on this topic » The Guardian

Why China Should Bail Out Europe New York Times A series of marathon meetings this week yielded a new set of proposals, but what they depend on is cash — and lots of it, perhaps trillions of dollars — to save Greece and the European banking system and to prevent financial contagion from spreading ... See all stories on this topic »

Wall Street Flies to Russia Wall Street Journal By WILLIAM MAULDIN And NADIA POPOVA MOSCOW—With fears of financial crisisstill swirling around the globe, Wall Street executives took time off to fly to Russia and advise President Dmitry Medvedev how Moscow can turn itself from a business backwater ... See all stories on this topic »

EU leaders clinch debt crisis deal Wyndham Weekly The crucial element of banks accepting losses on Greek government bonds hit the wall part-way through the Brussels talks, with the banks' negotiator, Charles Dallara of the Institute for International Finance, issuing a statement saying there was ''no ... See all stories on this topic »

EU summit: Not about solving eurozone crisis, it was designed to fail Daily Mail Roger Bootle's Capital Economics said: 'We still expect the crisis to prompt a prolonged recession in the euro-zone, further turmoil in globalfinancial markets and, at some point, the end of the euro itself in its current form. ... See all stories on this topic » Daily Mail

Move to Beef Up Fund Has Blank Spots Wall Street Journal Leaders outlined broad measures to tackle the euro crisis, though much remains uncertain. "Instead of relying on our own strengths, we're left going on a world tour to beg for help," French Socialist lawmaker and formerFinance Minister Michel Sapin ... See all stories on this topic » Wall Street Journal

Arvind Virmani | When in crisis, you have to reform policy Livemint In those posts, including a stint as chief economic adviser in the ministry of finance, he dealt with macroeconomic policy. After the conclusion of the annual meetings of IMF and the World Bank in Washington DC in end-September, Virmani took time off ... See all stories on this topic »

A Brief Guide To The Euro Crisis: It's A Mess And It's Not Over Seeking Alpha Late, late Wednesday night in direct talks with Merkel, Sarkozy, and the IMF's LaGarde, the chief negotiator for the Institute for International Finance, the bankers' lobbying entity, reached an agreement with the group. In exchange they got several ... See all stories on this topic »

Drop 'dictator debt,' activists and economists say Al-Masry Al-Youm Egypt has a budget deficit of nearly 10 percent of GDP and the finance minister recently said that the country is on the brink of a liquidity crisis. Meanwhile, economic growth has slowed since the uprising, decreasing government revenues, while public ... See all stories on this topic »

Credit Rating Companies Favoring Borrowers Paying Most BusinessWeek “There's a problem here of conflicts, credibility and competence,” said Phil Angelides, a former California State Treasurer and chairman of the Financial Crisis Inquiry Commission, which Congress asked to examine causes of the crisis. ... See all stories on this topic »

The new masters of the financial world Citywire.co.uk by Chris Marshall on Oct 28, 2011 at 00:01 The foundations of the world's globalfinancial system – the banks, the reliance on debt, the IMF – remain defiantly intact. But the credit-cum-debt crisis has brought about two major interlinked changes in ... See all stories on this topic »

Euro bailout - an animated explanation The Guardian (blog) The rich and those running the financial institutions will continue to make moneywhatever happens and the 99% will pay for it - with the bottom 20% paying most. My view is that the major economic blocs should call their own institions' bluff. ... See all stories on this topic »

US markets steady despite continued concerns over eurozone debt The Guardian The latest Euro news came as Klaus Regling, the head of euro-bailout fund the European financial stability facility (EFSF) met with Zhu Guangyao, a Chinese vice-finance minister, in Beijing Friday. European leaders, led by France's Nicholas Sarkozy, ... See all stories on this topic » The Guardian

TIMELINE-Japan battles strong yen Reuters 1998 - The Asian financial crisis sees the yen weaken to nearly 148 to the dollar in August, even after US authorities join the Bank of Japan to buy yen, spending $833 million, in June. In October, dollar tumbles from near 136 yen to 111.50 yen, ... See all stories on this topic »

Agreement to finally draw line under crisis Irish Examiner The money would be coming both from the European Financial Stability Facility and from money made on the privatisation of Greek state assets. The EFSF was finally leveraged to €1 trillion and perhaps more from the remaining €250 billion in the fund. ... See all stories on this topic »

Small businesses failing to get loans as banks blamed for credit squeeze The Guardian "The difference in levels of lending immediately pre and post financial crisis is as shocking as it is dramatic. There can be few more graphic illustrations of how the crisis and its fallout led the banks to effectively bring down the shutters on ... See all stories on this topic » The Guardian

French finance chief joins Vatican attack on markets EUobserver.com The Vatican's own bank, the Institute for Works of Religion, is one of the most opaque and least-regulated financial bodies in the world. Last year Italian authorities temporarily seized €23 million of its assets on suspicion of mafia money laundering. See all stories on this topic »

Eurozone crisis likely to hit leather exports Financial Express Bangladesh There is a financial problem in Europe. The European economies are very weak at the moment, and so, their buying power is going down," added Mr Belal, the chief of over 150 tanning firms' association. Shamsul Huda, president of Bangladesh Tanners ... See all stories on this topic »

Euro zone rates on hold as guard changes Reuters During the darkest hours of the financial crisis, the ECB lowered its rates to 1.0 percent, keeping them higher than the 0.5 percent in Britain and the close-to-zero approach taken in the United States and Japan. Before that, the lowest ECB rates had ... See all stories on this topic » Reuters

Costless, Limitless, Meaningless Money, Part I Gold Seek He is in fact quoting Steve Keen, associate professor of economics & finance at the University of Western Sydney – and "one of the few economists," according to Monbiot, "to predict the financial crisis." In our house, you can't get out of bed without ... See all stories on this topic »

European Bank Capitalization Plan Sufficient, Basel Head Says Bloomberg Sweden's financial regulator says Svenska Handelsbanken AB (SHBA) and Swedbank AB (SWEDA), the country's two largest mortgage lenders, need to boost capital by 9.7 billion kronor ($1.5 billion) and 2.9 billion kronor, respectively, to meet its capital ... See all stories on this topic » Bloomberg

Politicians express cautious optimism on eurozone deal Times of Malta ... banks allowed Athens room for manoeuvre to achieve financial sustainability. Labourfinance spokesman Karmenu Vella was likewise cautiously optimistic saying that a major hurdle was overcome. “The long-term solution to the debt crisis is economic ... See all stories on this topic »

Now That Greece Is “Fixed,” Portugal Is Next The New American Spain's money supply has also contracted sharply, according to the European CentralBank, forecasting a similar inevitable need for help. But Spain's economy is six-and-a-half times larger than Portugal's, and Spain's bailout demands could easily ... See all stories on this topic »

TSC slam BoE for not releasing crisis documents Money Marketing This was the most serious financial crisis for decades and the Bank'sdecision-making affected the economic future of the country. The court's response is a reflection of the problem which the committee's inquiry into the accountability of the Bank of ... See all stories on this topic » Money Marketing

Levering Europe: Alternatives for the European Financial Stability Facility Brookings Institution The case of the TARP in the US highlights how voters tend to assume that all the funds committed will be lost in these crisis times. Non-recourse financing. Several of the emergency credit programs used in the financial crisis in the US took another ... See all stories on this topic »

Dow ends up 2.9%: Stocks rally on euro deal, US news USA Today Investors — at least for now — don't have to worry about a financialcollapse like the one in 2008, after Wall Street investment bank Lehman Bros. filed for bankruptcy, sparking a global financial crisis. "FinancialArmageddon seems to have been ... See all stories on this topic » USA Today

Behind the scenes in the six-day war to save the euro Financial Post With the US and other global partners pressing Europe to contain the debt crisis, Merkel lined up cross-party support for boosting the firepower of the European FinancialStability Facility after persuading the main opposition Social Democrats and ... See all stories on this topic »

Norway Oil Fund Lost $52 Billion in Quarter as Crisis Roils Bloomberg The fund lost a record 633 billion kroner in 2008, when a financial crisis erupted following the collapse of Lehman. The fund responded to the rout by increasing its stock holdings, which helped it post a 26 percent return in 2009 and a 9.6 percent ... See all stories on this topic »

Next Act—The Plan Is Put to Test Wall Street Journal Indeed, the markets most critical to the euro zone's financial health reacted coolly. Interest rates on sovereign bonds for Italy and Spain—the two big economies most at risk from being sucked deeper into the crisis—fell modestly but were still ... See all stories on this topic »

JGBs extend losses as Europe deal saps safety bids Reuters By Akiko Takeda TOKYO, Oct 28 (Reuters) - Japanese government bonds fell on Friday after a deal on measures to fight Europe's financial crisis sparked relief rallies in riskier assets and dented appetite for safe-haven government debt, ... See all stories on this topic »

Why small business owners are economic heroes, not villains AXcess News With the 2008 financial crisis, resulting in a real estate sector meltdown and taxpayer funded bailouts of large banks and Wall Street firms, many Americans are left wondering about the virtue of capitalism. Many are increasingly angry with the Great ... See all stories on this topic »

European Contagion Turns Positive, Will it Last? Money Morning What will fuel growth if there's no bank capital to finance it? What will happen if structural recession is the new normal? And what will happen if we get sequential crisesvia Portugal, Italy, or some other debt-laden country? For investors wanting to ... See all stories on this topic »

Shares surge Thursday on pickup in economy and EU deal The Seattle Times But the plan helped dampen perhaps the biggest worry dogging markets since mid-July: the risk of another global financial crisis, similar to what followed the crash of brokerage Lehman Brothers three years ago. "I think there was a 50-50 chance of a ... See all stories on this topic »

Euro Deal, if Vague, Draws Positive First Reaction - Fullermoney Proactive Investors UK BRUSSELS - European leaders, in a significant step toward resolving the euro zonefinancial crisis, won an agreement from banks early Thursday to take a 50 percent loss on the face value of their Greek debt. The agreement was crucial to assembling a ... See all stories on this topic »

CNBC EXCLUSIVE: CNBC TRANSCRIPT: CHARLES DALLARA, MANAGING DIRECTOR OF THE ... CNBC.com (blog) Fresh back from Brussels, former assistant US Treasury Secretary Charles Dallara. He is the managing director for the Institute of International Finance. He was the lead negotiator for the banks and the private creditors regarding the Greek debt. ... See all stories on this topic »

New law fends off disaster Fort Wayne Journal Gazette 1: Dodd-Frank is deepening the economic slowdown. Critics who charge that the law is aggravating the recession have forgotten where our economic woes came from in the first place. The 2008 financial crisis was devastating: Banks stopped lending to one ... See all stories on this topic »

EU economic rescue essential for Asia too Radio Australia SNOWDON: The European Financial Stability Facility or rescue fund is to stretch to 1 trillion Euros. It has a lot of work to do. It has to meet the existing bail out packages for Greece, Portugal and Ireland and potentially top up the banks. ... See all stories on this topic »

Another way to boost the economy: Cut credit card rates Fortune (blog) Since before the financial crisis of 2008, consumers have been cutting back on their debt loads, with the debt service payment to disposable income falling 17% from October 2007 by this summer to 11.5% of disposable income. ... See all stories on this topic »

Wonkbook: Boehner says no Washington Post (blog) Nonetheless, officials say the companies are unlikely to ever repay all the money, cementing their status as the financial crisis's most expensive legacy. What's more, if the economy worsens significantly, the companies might need $50 billion more in ... See all stories on this topic »

Debt crisis: live - Telegraph http://www.telegraph.co.uk/finance/financialcrisis/8846201/Debt-crisis-live.html? ...19.59 Deutsche Bank, which has risen 16.6pc over the past two day, has been ... that is also worrying bond markets, had more bad news on employment today. ... the ECB started buying bonds to ease pressures on the eurozone economy. ... www.telegraph.co.uk/finance/.../8846201/Debt-crisis-live.html

IMF Survey: G-20 Reaffirms Commitment to Resolve Crisis Finance ministers and central bank governors of the Group of Twenty (G-20) industrialized and ... IMFSurvey Magazine: In the News ... People walk near the French Ministry of Economy, Finance, and Industry in Bercy, France. ... taking concrete steps to build a more stable and resilient international monetary system both to ... www.imf.org/external/pubs/ft/survey/so/.../NEW101511A.htm

The eurozone financial crisis explained – USATODAY.com Among the 17 nations that use the euro, financial bailouts are having a ripple effect. ...not sought bailout loans, but their increasingly severe economic troubles raise that likelihood. Sources: AP, IMF, Eurostat; State Department, European Central Bank and.... For the latest Money news, follow USATODAYMONEY On Twitter. ... www.usatoday.com/money/world/story/2011-10-26/.../1

Europe rejects U.S., IMF recommendations on debt crisis, stirring ... In the News ... PARIS — European officials working to address the region's financial crisis have rejected ... a two-day session with finance ministers from the Group of 20 major economic powers. ... Paulson argued that the infusion of funds was vital for saving the financial system and that all the banks had to take the money, ... www.washingtonpost.com/.../gIQACZQVmL_story.html info@als-alexander.com or interalex1@yahoo.com