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

Thursday, June 28, 2012

Euro Zone Riddled With Shaky Banks

Euro Zone Riddled With Shaky Banks
New York Times
Spain and Cyprus may be the current locus of European anxiety, but many other banks are in a weakened state, cut off from money markets because investors ... 

Banks face billions of dollars of claims after Barclays settles - Telegraph: "Barclays is named as one of around 20 defendants, which also include Royal Bank of Scotland and HSBC, as well as US lenders Bank of America, Citigroup and JP Morgan. The action is co-ordinated with five other lawsuits, including a claim by discount brokerage Charles Schwab against 11 banks, including Barclays. The sums involved are potentially vast. Libor is used to price various financial products. The Bank for International Settlements calculates that the market for over-the-counter interest rate derivatives, such as swaps, had a notional value of more than $500 trillion in 2011. Just a small element of proven mispricing could trigger billions of dollars of claims. Michael Hausfeld, chairman of Hausfeld LLP – one of two law firms leading the Baltimore class action – told The Daily Telegraph that while it was difficult to quantify the potential damages claims banks faced: “I think it’s far bigger than many people thought originally.”" 

Debt crisis: Angela Merkel dismisses Spain and Italy's pleas for aid - Telegraph: "Germany's Chancellor angrily rejected desperate pleading by Italy and Spain as a Franco-German rift over eurozone debt sharing threatened to unravel efforts to find a fix for the single currency at a meeting of European leaders on Thursday. Before flying last night to Paris for emergency talks with Francois Hollande, the French President, Mrs Merkel told German MPs that instead of more cash the eurozone needed to step up debt reduction and economic reforms. "I fear that at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures," she said." 

Angela Merkel isn't bluffing; like everyone else in Europe, she's defending national sovereignty - Telegraph: "You turn if you want to. The lady's not for turning. No, not Mrs Thatcher, but Angela Merkel, the latest big beast of the European political scene to dig her heels in and refuse to go along with the international consensus." 

Debt crisis: as it happened - June 27, 2012 - Telegraph: "Henry Samuel has spoken to a French diplomat about the thorny issues of eurobonds, and Angela Merkel's claim yesterday that they won't be introduced while she's still alive. Asked whether Fran├žois Hollande would have to kill Angela Merkel as she said no eurobonds "as long as I live", a French diplomatic source said he presumed she meant "in her political life"."

Cyprus: Eurozone countries accept bailout request
Fox News
Officials from the European Commission, the European Central Bank and the International Monetary Fund will begin assessing next week how much bailout ...

Eurozone executive body: aid for Spanish banks to go through ...
Washington Post
MADRID — Spain insisted Wednesday it will continue to push for European financial aid to be delivered directly to its troubled banks, rather than count as ...

Cyprus EU bailout bid accepted, IMF involved
Reuters
NICOSIA (Reuters) - Cyprus won support from its euro zone partners on Wednesday for emergency funding to prop up its banks, crippled by their Greek debt ...

Merkel rebuffs pleas for debt action on summit eve
Reuters
Italy, Spain demand action to lower borrowing costs* Merkel says control must come before debt sharing* Euro zone details aid plans for Spain, Cyprus* Merkel ...

EU Leaders Aim to Lift Doubts on Euro
Wall Street Journal
On the eve of the EU Summit in Brussels, Dow Jones Newswires' Michael Casey examines whether Eurozone leaders can make any real progress toward ...

Wall Street Journal

Merkel Refuses to Yield on Eve of Summit Meeting
New York Times
By comparison, German bunds, the euro zone benchmark for safety, trade to yield ... Prime Minister Mario Monti of Italy, who has proposed using the euro zone ...

EU's changing faces raise doubts for future
Boston.com
BRUSSELS (AP) — Often these days, the first order of business at European Union summits isn't the continent's dreadful financial crisis.

Germany's Merkel backs French-led growth pact, but differences ...
Washington Post
PARIS — Germany's Chancellor Angela Merkel rallied Wednesday for a €130 billion ($162 billion) Europe-wide stimulus package in a gesture to French ...

Merkel Shuts Door to Euro Bonds in Rebuff to Rajoy on Spain
San Francisco Chronicle
“The sovereign debt crisis shows us daily that deficiencies in one euro-zone country can cause difficulties in the entire euro zone,” Merkel told lawmakers.

Merkel stands firm on euro bonds before EU summit
Reuters
Merkel says controls must come before joint bonds* Speech in parliament a day before crucial EU summit* German leader says FTT funds could be used ...

Clock Ticking for Euro Zone; Greece Out in 2013: Pro
CNBC.com
Euro zone policymakers have a small window of opportunity to save the disintegrating bloc and an orderly Greece exit could save the currency union from total ...

CNBC.com

News Summary: Eurozone executive body says aid for Spanish ...
Washington Post
NO FREEBIES: The eurozone group of nations insisted Wednesday that the rescue loans for Spain's troubled banks would be channeled through the national ...

IMF's Lagarde: Ready To Answer Cyprus' Request For Help
Wall Street Journal
The head of the International Monetary Fund Wednesday said the institution is ready to join the euro zone in helping Cyprus meet its financial needs.

Eurozone and IMF Ready to Help Cyprus With Full Bailout
HispanicBusiness.com
Eurozone finance ministers and the International Monetary Fund (IMF) said Wednesday that they were ready to help Cyprus with a full bailout, covering both its...

HispanicBusiness.com

Eurozone crisis live: Merkel reiterates opposition to euro bonds
The Guardian
The systemic crisis engulfing the eurozone and downward pressure on eurozonesovereign ratings is unlikely to diminish until European leaders articulate a ...

The Guardian

The German Bluff Trade
Wall Street Journal (blog)
If the euro's brief but stomach-churning slide Tuesday shows us anything, it's that currency traders deep down think Germany is bluffing.

Wall Street Journal (blog)

Merkel rejects sharing eurozone debt through bonds
BBC News
German Chancellor Angela Merkel again rejects the idea of pooling eurozone debt through bonds and urges greater competitiveness in the EU.

BBC News

Copper slips on euro zone caution, EU summit eyed
Reuters
LONDON (Reuters) - Copper slipped on Wednesday as growing concern about the euro zone debt crisis prompted caution in the market ahead of a European ...

Merkel: no quick solution to euro crisis
San Francisco Chronicle
The German leader is holding out against mounting pressure for her country to give up its resistance to pooling debt — for example by agreeing to jointly issued ...

San Francisco Chronicle

Germany rules out pooling of eurozone debt
The Guardian
Angela Merkel made it clear she will not yield to pressure for the common issuance ofeurozone debt in the form of eurobonds.

The Guardian

OECD Says Euro-Zone Crisis Has Led to Some Emigration
Wall Street Journal
People are leaving countries that are in the front line of the euro-zone fiscal crisis, but so far the rise in emigration has been modest, the Organization for ...

Wall Street Journal

Merkel says no easy answers to end euro crisis
Reuters
BERLIN, June 27 (Reuters) - German Chancellor Angela Merkelsaid on Wednesday, one day before a crunch European Unionsummit, that there were no quick ...

Euro-zone leaders call for banking union
The Deal Pipeline
Ahead of Thursday's summit, a blueprint proposes common banking supervision and deposit insurance.

The Deal Pipeline

Germany's Merkel: no quick and easy solution to eurozone debt crisis
Minneapolis Star Tribune
BERLIN - German Chancellor Angela Merkel is renewing her insistence that there is no quick and easy solution to the eurozone debt crisis.

Q&A: EU 'integration' summit
BBC News
Far-reaching plans for tight policy co-ordination in the eurozone are on the table. ...Much attention has focused on "eurobonds" - pooled eurozone debt which ...

BBC News

France, Germany in talks before key EU summit
AFP
France and others have pushed the idea of issueing debt backed by the entireeurozone as a means of tackling the crisis, but Germany insists closer political ...

AFP

In Germany, actions speak louder than words
Fortune (blog)
FORTUNE -- While the markets fear the worst from this week's upcoming eurozone summit, recent developments inside Germany could provide some much ...

Fortune (blog)
Eurozone crisis: between meurons and zombies | openDemocracy
By Krzysztof Rybinski
Welcome to the Eurozone, homeland of what I shall call meurons (euro-morons) and zombie-bankers. The zombies, whom I identified at an early stage of the crisis, are still around (see "There is no zombie free lunch", 19 March 2009 ).
openDemocracy

Commentary: Euro Zone on the Brink | The National Interest
By Douglas Elliott
This week, the EU meets again to discuss how to shore up the euro zone. The summit is potentially important, but as with previous meetings, Europe's leaders will almost certainly fail to take all the necessary steps to resolve the present crisis.
The National Interest

Eurozone group says it's ready to bail out Cyprus | The Raw Story
By Agence France-Presse
The eurozone is ready to bail out embattled Cyprus in coordination with the International Monetary Fund, finance ministers from the 17-nation single currency area said Wednesday. “The Eurogroup acknowledges that an adjustment ...
The Raw Story

Could Eurobonds be the answer to the Eurozone crisis? — Social ...
By Jeffrey Frankel
Solutions to the Eurozone crisis must balance the evils of austerity and moral hazard. This column argues that the blue/red Eurobonds proposal might just get this balance right. Any solution to theEurozone crisis must meet two objectives.
Social Europe Journal» Columns

Dark night rises over Eurozone as nations squabble over ways to ...
By The Extinction Protocol
June 27, 2012 – EUROPE – The fact that Europe's top central banker is no longer willing to rule out a return to the old national currencies shows how serious the situation is. Until recently, it was seen as a … Continue reading →
The Extinction Protocol: 2012 and beyond

Euro Zone Crisis: A Plan For the (Sort Of) United States of the Euro ...
By Kristina Chew
A key topic of discussion at this week's upcoming euro zone finance minister summit is a plan to turn the 17 euro zone countries into a full-fledged political federation.
Care2 Causes

Eurozone crisis overwhelms Cyprus: Voice of Russia
By Jessica Jordan
The Eurozone crisis continues. Today Cyprus became the fifth Eurozone country to seek emergency funding from Europe., Jessica Jordan.
Voice of Russia, News

Flailing Eurozone Countries Agreeing To Two Years Of Austerity ...
By Bess Levin
Flailing Eurozone Countries Agreeing To Two Years Of Austerity Makes About As Much Sense To Nouriel Roubini As Him Agreeing To Go Two Years Without Getting Laid– Which Is To Say, NONE. By Bess Levin. Hand to god, he'd sooner die ...
Dealbreaker

Leaders Draft Federal Plan To Save The Eurozone! (Yeah Right ...
By mosesman
The Eurozone is heading towards a total collapse. All these 'actions' and talk about rescuing theEurozone is just political theatre by the Illuminist politician snakes. It is about buying time before the plug is pulled on the whole system.
Socio-Economics History Blog

Latest developments in the eurozone debt crisis | the nanyang post
By StraitsBlogs
PARIS, June 27, 2012 (AFP) - Here are the main developments in the eurozone debt crisis on Wednesday: Finance-public-debt-Germany BERLIN: Chancellor Angela Merkel warns that there are "no quick, easy" solutions to the euro crisis as ...
the nanyang post
Eurozone crisis: Spanish debt fears cut short markets' Greek relief ...
Interest rates on Spain's debt rise sharply on expectations it will become fourth EU country to require full-scale bailout.
www.guardian.co.uk/.../jun/.../eurozone-crisis-spanish-debt-fe...

Eurozone debt crisis poses serious threat to emerging markets ...
Trade finance downturn reduces flow of critical goods into and out of poor countries as banks cut back on credit.
www.guardian.co.uk/.../eurozone-debt-crisis-emerging-market...

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