"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Wednesday, March 14, 2012

Federal Reserve stress test fails 4 of 19 big banks

Federal Reserve annual stress test fails 4 of 19 big banks
USA TODAY
The Fed gave 19 banks a "stress test" that evaluates how well they might perform in a financial crisis. As the chief regulator of the nation's largest banks, the Fed noted that all 19 banks have built up capital reserves since the 2008 financial crisis ...

USA TODAY

Citibank, 3 Others Fail Fed Stress Test; 15 Pass
ABC News
The Fed noted that all 19 banks are in a much stronger position than immediately after the 2008 financial crisis. Still, SunTrust, Ally Financial and MetLife joined Citi in failing to meet the test's minimum capital requirements.

Global liquidity peak spells trouble for late 2012 - Telegraph: "The global liquidity cycle has already rolled over. Assuming that no fresh action is taken, world economic growth will peak within a couple of months and then fade in the second half of the year - with grim implications for Europe’s Latin bloc."

Citi among banks that fail Fed stress test
MarketWatch
By Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) — Ally FinancialInc., Citigroup Inc., MetLife and SunTrust Banks failed to have enough capital under a stress test conducted on 19 big banks, the Federal Reserve said late Tuesday.

Draghi Says Lull in Financial Crisis Should Spur Governments, Banks to Act
BusinessWeek
“The financial system should serve the economy, not the other way round.” The ECB has shouldered the main burden of fighting the three-year-old crisis by keeping banks afloat, cutting interest rates to a record low and buying distressed governments' ...

Ex-Thornburg Executives Sued by SEC for Hiding Cash Crisis
BusinessWeek
The SEC's lawsuit “is based on unfounded claims, e-mails taken out of context and inaccurate interpretations of management's actions surrounding the company's financial filings at the height of the financial crisis,” Goldstone and Simmons said in their ...

Euro zone okays Greek aid, demands deeper Spanish deficit cut
Reuters
By John O'Donnell and Jan Strupczewski | BRUSSELS (Reuters) - Euro zone finance ministers gave their final approval to a second bailout for Greece on Monday and turned their fire on Spain, demanding it aim for a tougher deficit target this year in ...

Spain's Sovereign Indecision
Wall Street Journal
By SIMON NIXON Welcome to the new-look euro zone. Earlier this month, Mariano Rajoy claimed to have made a "sovereign decision" to increase Spain's previously agreed-on 2012 budget-deficit target to 5.8% from 4.4%, thereby making a mockery of the new ...

Draghi Says Euro Crisis Lull Must Spur Governments, Banks to Act
Bloomberg
European Central Bank President Mario Draghi called on banks and governments to make the most of a lull in the sovereign debt crisis as he seeks to get the ECB back to its main job of ensuring price stability. Policy makers “see continued signs of ...

Bloomberg

Spain Deficit Decision Sparks Austria Appeal
ABC News
The decision by finance ministers of the 17-country eurozone to give Spain some leeway on cutting this year's deficit has already triggered demands from other European countries for more fiscal leniency. The move also signals the difficulty Europe ...

Draghi Says Lull in Financial Crisis Should Spur Governments, Banks to Act
BusinessWeek
By Gabi Thesing and Mark Deen on March 13, 2012 European Central Bank President Mario Draghi called on banks and governments to make the most of a lull in the sovereign debt crisis as he seeks to get the ECB back to its main job of ensuring price ...

German, French fin mins say worst of euro crisis over
Reuters
PARIS, March 13 (Reuters) - German Finance Minister Wolfgang Schaeuble and his French counterpart Francois Baroin said on Tuesday that the worst of the euro zone crisis appeared to be over, but warned member states that was no excuse to skimp on ...

Market looks past Spain's deficit woes, for now
MarketWatch
MADRID (MarketWatch) — Spain's fellow euro-zone members on Tuesday granted Madrid some breathing space in tackling its deficit, but economists said the country still faces an uphill task in meeting its targets while attempting to avoid a deep ...

Missed European stocks rally? Bet on dividends
Reuters
* Euro zone economy expected to recover, boosting payouts * Banking sector risks seen lower after ECB cash By Toni Vorobyova LONDON, March 13 (Reuters) - Investors who missed out on a sharp New Year rally on European stock markets and think shares are ...

German Economic Expectations Improve Sharply
Wall Street Journal
And as an initial reaction to the Greek debt swap, financial market experts polled by ZEW consider the worst to have passed for the German banking sector, with contagion from Greece no longer a threat, ZEW expert Michael Schroeder said.

ECB's Draghi: competitiveness gap a threat to euro zone
Reuters
PARIS, March 13 (Reuters) - ECB President Mario Draghi said on Tuesday that a growing competitiveness gap between members of the euro zone should be a source of concern for policy makers and he warned this could make it more difficult to keep the euro ...

Eurogroup Goes Half Throttle on Spain
Wall Street Journal (blog)
By Jonathan House Spanish Finance Minister Luis De Guindos, left, and Luxembourg Prime Minister and Eurogroup president Jean-Claude Juncker joke prior an Eurozone meeting on Monday. The photo showing Eurogroup chief Jean-Claude Juncker with his hands ...

Eurozone Ministers Liberalize Terms for Spain
Voice of America (blog)
Eurozone finance ministers have granted Spain more leeway as it struggles to bring down its huge budget deficit. The ministers meeting in Brussels Monday agreed to let Spain cut its deficit to 5.3 percent of its gross domestic product this year ...

GLOBAL MARKETS: European Stocks Higher, German ZEW Lifts Mood
Wall Street Journal
By Michele Maatouk and Andrea Tryphonides Of DOW JONES NEWSWIRES LONDON (Dow Jones)--European stocks pushed higher Tuesday, lifted by encouraging German ZEW data and as investors breathed a sigh of relief that euro-zone finance ministers have agreed in ...

US STOCKS-Futures higher on euro zone optimism, Fed eyed
Reuters
Positive developments in Europe also helped boost sentiment, after euro-zone finance ministers gave final approval to a second bailout for Greece and data in Germany showed analyst and investor sentiment rose significantly more than expected in March.

German, Eurozone ZEW Surveys Better Than Expected Overall
TheStreet.com
By DailyFX 03/13/12 - 02:40 AM EDT By David Schutz, The ZEW survey out of Germany today showed improving economic sentiment in Germany and the Eurozone during January. The lone weak area in the survey was the current situation category, ...

Euro zone ministers back second $170 billion bailout for Greece
NASDAQ
Euro zone finance ministers backed a second bailout for Greece of $170 billion yesterday in Brussels, pending a $36.7 billion contribution from the International Monetary Fund. Continued confidence in Greece's ability to address its debt woes helped ...

Bailout can make Greek debt sustainable, but risks remain: EU/IMF
Orlando Sentinel
The analysis, prepared by the European Commission, the European Central Bank and the International Monetary Fund for euro zone finance ministers and obtained exclusively by Reuters, shows that after the debt swap at the weekend, Greek debt could fall ...

Munich Re eyes profit jump as contagion risk fades
Reuters
The world's biggest reinsurer expects earnings to more than triple this year after it paid out billions in damage claims for natural disasters in 2011 and saw its investments hammered by the euro zonedebt crisis. The bond swap deal struck between ...

Eurozone crisis live: Spain told to cut harder as Greek deal approved
The Guardian
8.41am: Quite a busy agenda today, with meetings continuing in Brussels, and various key players in the eurocrisis speaking - plus an interest rate decision in America. Here's today's agenda: • ECOFIN meeting in Brussels - all day • UK Trade data for ...

The Guardian

Eurozone allows Spain to increase this year's deficit
Taipei Times
“The Eurogroup assesses that the timely correction of the excessive deficit should be ensured by an additional frontloaded effort of the order of 0.5 percent of GDP,” below the 5.8 percent, Juncker said after eurozone talks. Spain's deficit is roughly ...

Euro zone finance ministers push Spain on budget cuts
Irish Times
Photograph: Yves Herman/Reuters Euro zone finance ministers have pressured Spain to make deeper budget cuts, as they gave their final approval to a second bailout for Greece today, in a first test of stiffer deficit rules designed to prevent the ...

Irish Times

South Africa: Eurozone approves launch of second Greek bailout
7thSpace Interactive (press release)
Brussels - Eurogroup President Jean-Claude Juncker announced late Monday that Eurozone finance ministers had politically adopted the 130-billion-euro (about US$171 billion) second bailout program for Greece. "With the completion of the prior actions ...

Eurozone Crisis and Property Deals
NuWire Investor
The Eurozone is in economic upheaval as the sovereign debt crisis continues to threaten regional markets, particularly in the weaker member countries that include Portugal, Ireland, Italy, Greece and Spain. The distress may make one think it's a good ...

German Finance Min: Financial Tax At Least In Euro Zone
Wall Street Journal
BRUSSELS (Dow Jones)--German Finance Minister Wolfgang Schaeuble said Tuesday that a minimum of all 17 euro-zone members needs to adopt a tax on financial transactions for it to be effective, dismissing speculation that a small group of European ...

Spain pressed to cut more from its budget
CNN International
By Peter Spiegel, FT.com (Financial Times) -- Eurozone finance ministers called on Spain to make new cuts in its 2012 budget to reduce its deficit by another 0.5 per cent of economic output, a stinging rebuke to the new government of premier Mariano ...

Spain Agrees To Additional Budget Cuts
Wall Street Journal
In sometimes tense discussions on Monday, the euro-zone finance ministers asked Spain to make the additional 0.5 percentage point of adjustment in 2012 in order to ensure the country meets its target of a 2013 budget deficit equal to 3%.

Spain wins big deficit concession from eurozone
Outcome Magazine
By World Economic Forum/flickr/cc2.0 03/13/2012 Spain wrung a major concession from the eurozone Monday, winning leeway in its struggle to tame a runaway public deficit amid rampant unemployment. After relentless austerity going back two years, ...

Outcome Magazine

EU, Spain save face with deficit compromise
Reuters
An agreement among euro zone finance ministers imposes years of spending cuts on the currency bloc's fourth largest economy while sending investors a message that Spain is trying to make sure it does not follow Greece into financial collapse.

Spain's central govt, not regions, will shoulder extra cuts
Reuters
Spain needs to make the extra 5 billion euros in savings after agreeing a deficit target on Monday of 5.3 percent of GDP, following pressure from the European Commission and euro zone peers after Madrid had previously said it would only be able to cut ...

Today in the euro zone | MacroScope
By Mike Peacock
Top billing of the day probably goes to Germany's Merkel and Italy's Monti meeting in Rome, though it is quite late in the day. The Italian premier remains the austerity poster boy, in contrast to Spain's Rajoy who was partially let off the hook by ...
MacroScope

CARPE DIEM: How Housing Policy Caused the Financial Crisis
By Mark J. Perry
Reason.tv -- "AEI's Peter Wallison argues in the video above that the financial meltdown was largely a consequence of government housing policy that underwrote unsustainable economic activity. He draws heavily on the research of Fannie ...
CARPE DIEM

Eurozone policy-makers place a big bet
By Centre for European Reform
Have eurozone policy-makers finally managed to lance the boil? They can certainly point to lower borrowing costs in Italy and Spain as evidence of stabilisation. Many of them argue that this demonstrates the success of the strategy of fiscal ...
Centre for European Reform

Draghi: Difficult to keep euro zone together without structural reforms ...
By Jamie Coleman
Euro zone competitiveness the main focus of Draghi's speech in Paris. Some portions of the euro zone are very competitive, some very uncompetitive, like Greece.
ForexLive

ekathimerini.com | Eurozone approves new bailout, small tranches ...
Eurozone finance ministers approved late on Monday the new 130-billion-euro bailout for Greece but it remains to be seen how most of the loans will be dispersed. The ministers agreed on the new package after Greece completed the major ...
Latest News

Danny Schechter: Appeal to the U.N.: Treat the Financial Crisis as ...
By Danny Schechter
I will be in Geneva next week making the case for the financial crisis as a crime against humanity, an international offense that the U.N. was set up to prevent and now even prosecutes, however sparingly, in the International Criminal Court.
The Full Feed from HuffingtonPost.com

After the Euro Crisis – Creating an EU wide Politics
By John Palmer
Public attention has thus far focussed almost exclusively on the bewildering and arcane details of thefinancial crisis, the near collapse of the Greek economy and the highly controversial Euro-area Fiscal Compact – now renamed the Treaty on ...
Social Europe Journal

Dutch hotels top euro zone price list - Expatica
Last year the Netherlands was the most expensive country in the euro zone for hotel accommodation.
Expatica - Dutch Local Headlines

Eurozone OKs new Greek loans, ups demands on Spain | Brèves ...
By Deutsche Welle
Eurozone finance ministers meeting in Brussels have given Spain a tougher counter-estimate on how quickly it can reduce its budget deficit to comply with EU standards, while also approving Greece'...
LEAP 2020

(UPDATE) Eurozone eases Spanish deficit target - Home » Other ...
The chairman of the meetings of eurozone finance ministers says they want Spain to make further cuts worth 0.5 percent of economic output this year.
philstar.com - Breaking News

Fuel Fix » Wall Street hits post financial crisis highs
By FT.com - Energy
Wall Street to trade at highest level since June 2008 on hopes for the US economy, corporate earnings, and continuing central bank largesse. Read more from Financial Times · « Previous Post · FT.com - Energy. You can read more energy ...
Fuel Fix

Wall Street opens higher on euro zone, retail sales - Business News ...
By SINA.com
Investor sentiment about economic prospects in Europe was buoyed after euro zone finance ministers gave final approval to a second bailout for Greece and data in Germany showed analyst and investor sentiment rose significantly more than ...
English headline news from SINA.com

Jensen: Euro crisis yields opportunity : Views and News from Norway
By Views and News staff
Students at BI Norwegian Business School in Oslo listened to an unusual lecturer on Tuesday, Progress Party leader and longtime Member of Parliament Siv Jensen. Her message was clear: There's opportunity in crisis, and Norway can't ...
Views and News from Norway

Eurozone eases Spanish deficit target - Yahoo! News
From Yahoo! News: Eurozone finance ministers on Monday gave unemployment- ridden Spain some more wiggle room in cutting its big deficit, signaling that ...
news.yahoo.com/eurozone-eases-spanish-deficit-target-21551...

EconoMonitor : Great Leap Forward » THE FINANCIAL CRISIS AND ...
L. Randall Wray is a Professor of Economics at the University of Missouri-Kansas City and Senior Scholar at the Levy Economics Institute of Bard College, NY.
www.economonitor.com/.../the-financial-crisis-and-shreks-oni...

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