Regulators Question Interest Rates From Sweden to Singapore
Regulators are questioning how interest rates are set across the globe—not just LIBOR and EURIBOR, but also various in-country rates.
Diamond Pressured as Barclays’ Agius Steps Down
Barclays Chairman Marcus Agius resigned from his post after a LIBOR-rigging scandal resulted in a fine of 290 million pounds. CEO Bob Diamond remained at the helm despite calls for his ouster.
European Banking Union Not Enough: Investors
Investors, apparently, not only lack faith in officials to take decisive action on the debt crisis but also do not seem to believe that a bold solution proposed by some can work—because it does not go far enough.
Morgan Deemed ‘Winner’ in Moody’s Bank-Rating Massacre
Fifteen banks in the U.S., U.K. and Europe with global capital markets operations saw their ratings cut by Moody’s, some by as many as three notches.
ECB Will Buy Bonds, Not Make Loans: Economists
The ECB is more likely to resume buying up sovereign bonds than it is to make any more cheap long-term loans, according to a poll of economists.
Dutch Bailouts of ING, ABN Amro ‘Large Errors’: Committee
A parliamentary committee in the Netherlands said that the country’s government made “large errors” when it bailed out ING Groep NV, ABN Amro Holding NV and Fortis in 2008 and 2009, and those errors put taxpayers on the hook for greater risk and cost.
IMF: Greece Will Need Third Bailout in Debt Writedowns
Last week Greece was granted a massive bailout for the second time, after winning hard-fought concessions from its private debt holders and pushing through additional unpopular austerity measures. This week the IMF said it expected Greece to need additional funding or more debt restructuring—in effect, a third bailout.
U.K. Unemployment Higher Than Expected
The rise in the rate of claims may push criticism that cuts in government spending by Prime Minister David Cameron are too aggressive as he attempts to reduce Britain’s deficit. Consumer confidence is sagging, based in part on fears of job loss, and the country’s economy contracted in Q4 of...
Regulators Ask Singapore Authority for Help in Libor Probe
Interbank rates, including Libor, are under investigation by a number of countries amid suspicion of bank misconduct. The U.S. has launched a criminal investigation and European authorities are looking into allegations that banks may have colluded to trade derivatives based on the rate.
ECB Likely to Wait for Debt Deal on Greece
Any concessions the European Central Bank may choose to make on Greece’s sovereign debt are likely to remain unknown until Athens comes to some sort of agreement with its private debt holders.