PIMCO’s El-Erian: ‘No More IMF Aid to Europe’
Although Mohamed El-Erian had long advocated for aid to troubled Europe (with an obvious interest in mind), he wants strong strings attached to any lending, especially when it comes to the International Monetary Fund.
Regulators Casting Light on Shadow Banks
Concerns that shadow banks have no backstop in case of crisis and offer opportunities to engage in risky, if not illegal behavior, are pushing regulators for the G20 to look more closely at such institutions.
France Will Tax Financial Transactions Starting in August: Sarkozy
France will unilaterally begin to tax all financial transactions at 0.1%, beginning in August, according to President Nicolas Sarkozy. Saying that he wants to 'set an example,' Sarkozy is determined to make good on a pledge he made to impose the tax when France was president of both the G8...
IMF Seeks to Boost Capacity by $500 Billion
The International Monetary Fund intends to boost its lending capacity from the current level of $385 billon by asking members to contribute more funds, up to $600 billion, as it seeks to forestall the spread of the European debt crisis.
IMF May Miss Target for Eurozone Fund
Britain's decision not to contribute to the IMF's bailout fund for the eurozone casts doubt that the rescue plan will work.
Japan Denies IMF Seeking $600 Billion to Help Euro Zone
A report in the daily Nikkei paper that the G20 was putting together an IMF $600 billion lending facility to help the euro zone was denied, first by the IMF and then Canada, and then by Japan.
Eurozone Ministers May Seek IMF Help
Although eurozone ministers agreed Tuesday to boost the value of the rescue fund, they acknowledged that they might call on the International Monetary Fund for help to do so after Italy's borrowing costs soared nearly to 8%, a euro lifetime high.
China Says Exchange Rate 'Reasonable'
The exchange rate for the yuan, according to Chinas commerce minister, is within a "basically reasonable level," and therefore is not responsible for the current trade imbalance with the U.S., according to Chen Deming, China's minister of commerce.
Despite Greek Deal, Eurozone Struggles
Despite a deal worked out with Greece’s leaders to support its latest bailout, the eurozone still battles market unrest as the leadership of both Greece and Italy is up in the air.
G20 Fails to Provide Money for Europe
Eurozone leaders were disappointed in their quest to find contributions to the European Financial Stability Facility at the conclusion of the G20 meeting in Cannes, France, on Friday, with all interested nations holding back until more details for the final structure of the beefed-up fund are worked out.