Posts filed under “Credit”
From the Wall Street Journal:
Six financial institutions were fined €1.71 billion ($2.32 billion) by European Union regulators Wednesday for colluding in an attempt to manipulate key benchmark interest rates, the EU’s largest-ever penalty in a cartel case.
The settlements involved penalties against some of the world’s biggest banks, including Deutsche Bank, Société Générale, Royal Bank of Scotland Group, RBS, J.P. Morgan Chase & Co. and Citigroup.
A rough total €6 billion the total penalties levied by regulators against financial institutions in connection with probes into manipulation of the London interbank offered rate, or Libor, and other widely used financial benchmarks.
Source: Miller Samuel Over the past few years, the combination of low rates and tight inventory has helped bid housing prices up nationally. That situation is easing as more and more inventory hits the market. As Bloomberg News reported yesterday, it looks like the days of bidding wars are waning as the supply of…Read More
S&P 500 (top), NYSE margin debt 12-month ROC (center), & NYSE margin debt (bottom) Source: BofA Merrill Lynch I keep seeing NYSE margin debt showing at record high as somehow a bearish indicator. This may not be supported by the historical data. Merrill’s Stephen Suttmeier points out that, to the contrary, Margin Debt…Read More
Why Small Business Lending Isn’t What It Used to Be Ann Marie Wiersch and Scott Shane Cleveland Fed Since the Great Recession, bank lending to small businesses has fallen significantly, and policymakers have become concerned that these businesses are not getting the credit they need. Many reasons have been suggested for the decline….Read More
Yields and default Click to enlarge Now that we managed to avoid default, let’s look at some historical examples of Sovereign default. 1. United States 2013 2. Germany 1938,1948 3. Japan 1942, 1946-1952 4. France 8 times between 1558-1788. Last one in 1812 5. Italy 1940. Almost daily speculation of another default since 2008 6. Spain 1809, 1820, 1931,…Read More
Puerto Rico David R. Kotok, Cumberland Advisors, October 16, 2013 Puerto Rico is not the federal government. It is an important debt problem. Some readers saw the Barron’s front-page article on Puerto Rico and its financial problems. The details of the debt burdens of Puerto Rico make for an ugly picture. Puerto Rico…Read More
Dysfunction Is Limiting U.S. Position Abroad, Observers Say; ‘Sadness From Our Trading Partners’ click for ginormous graphic Source: WSJ Here is the problem with using the debt ceiling as a negotiating tactic: It does permanent, long lasting damage to the reputation of the US, and hastens the day when the US Dollar is…Read More