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EC outlines proposal to regulate rating agencies

The European Commission (EC) today outlined a formal proposal to regulate credit rating agencies, which it hopes will improve the quality of ratings, restore investor confidence and reduce the conflicts of interest “inherent to the ratings business”.

UK CDSs rise

The cost of credit protection on European banks widened today while market sentiment towards US financial institutions improved.

Exelon bid rejected

NRG Energy has rejected Exelon Corporation’s unsolicited merger offer made on 19 October 2008, claiming it “significantly undervalues” the firm.

Icap releases guidance on OTC markets

The future course of the over-the-counter derivatives markets will depend on the simplification and overhaul of existing infrastructure so that it becomes more transparent, Risk heard at an Icap press briefing this morning.

Treasury and Fed help AIG lay-off CDO risk

AIG was shored up by a restructuring plan hammered out by the US Treasury and Federal Reserve Bank of New York today, which involved the creation of an off-balance-sheet vehicle to neutralise some of the insurer’s hefty collateralised debt obligation …

Ted spread continues to fall

Following last week's rate cuts, the Ted spread, which tracks the difference between three-month Libor and Treasury bills, had fallen today to 2.01 when trading opened, the same level as September 15, when Lehman Brothers filed for bankruptcy.

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