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CDSs on financials continue to tighten

The cost of credit protection on both US and European financials continued to fall today, in the wake of US Treasury secretary Timothy Geithner announcing a toxic-asset purchase plan aimed at boosting the US financial system yesterday.

IndyMac losses put more strain on FDIC funds

Yesterday's sale of failed California mortgage lender IndyMac has left the US Federal Deposit Insurance Corporation (FDIC) with a $10.7 billion bill - weakening its reserves further even as the list of failed banks requiring support continues to lengthen.

Deutsche Bank takes stake in iron ore brokerage

Deutsche Bank has taken an equity stake of undisclosed size in newly-established London Dry Bulk (LDB), a specialist physical and financial iron ore brokerage division of London Commodity Brokers.

CDS spreads tighten on European banks

The cost of credit protection fell today on European financials in response to yesterday's commitment by the Federal Open Markets Committee to buy up to $300 billion in long-term US Treasury securities.

FSA plans new capital formula for banks

The UK Financial Services Authority (FSA)'s chairman Adair Turner has outlined proposed new capital rules for UK banks, which would see minimum capital levels determined based on balance sheet growth or full-cycle loan book risk.

Fed increases security purchase plans

In an effort to resuscitate private credit markets, the Federal Open Markets Committee stated today that it would purchase up to $300 billion in long-term US Treasury securities over the next six months.

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