News
Swiss National Bank to take $60 billion in UBS assets
The Swiss government has stepped in to rescue UBS, the European bank worst hit by the subprime crisis.
JP Morgan and Wells Fargo profits tumble in Q3
Battered by further losses in their mortgage-related positions, JP Morgan and Wells Fargo saw third-quarter profit declines of 84% and 25% respectively today.
Kyoto global emissions trading system to go live
The United Nations climate change secretariat (UNFCCC) has announced that the International Transactional Log (ITL) of the Kyoto Protocol emissions reduction framework will connect with carbon registries from 26 EU countries from October 16.
ICE Clear Europe to commence clearing on November 3
London-based ICE Futures Europe’s wholly owned clearing house ICE Clear Europe will begin operations on November 3, when all futures and OTC trading positions are transferred from current clearer LCH.Clearnet.
Strain eases on interbank lending
The Ted spread, as well as overnight and three-month Libor, continued to fall today following the announcement of US and European bailout packages.
CDSs tighten on US banks
The cost of credit protection on US institutions plummeted yesterday, as investors reacted positively to news that the Treasury will take $125bn equity in nine US banks.
FSF reports on resilience for institutions and markets
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Crisis will shape regulatory capital, says UK FSA chairman
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Treasury to take $125bn equity in nine US banks, says Paulson
The US Treasury will give banks and thrifts up to $250 billion as part of a series of measures designed to boost public confidence in financial institutions and restart immobile interbank lending markets.
JP Morgan takes DME stake
JP Morgan has taken an undisclosed equity stake in the Dubai Mercantile Exchange (DME).
US banks call for more leeway on mark-to-market rules
The American Bankers Association, a lobbying group, has protested that its members need more relaxed valuation rules, blaming the Financial Accounting Standards Board for ignoring the financial crisis.
European CDSs at monthly lows
A surge in market confidence lowered the cost of credit protection on a number of European banks to monthly lows in early trading today, as investors reacted positively to news of a eurozone financial rescue plan.
Governments step up and Ted spread goes down
The Ted spread, the difference between US Treasury bills and three-month Libor, fell today for the first time since October 6, following the news of the planned European bank rescue package.
Bank of Japan joins money market rescue
The Bank of Japan has joined other central banks in offering unlimited dollar loans in order to restore liquidity to the interbank lending market.
G-7 plan of action
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UK to regulate City bonuses
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Mizuho and Ambrian team up for LME brokerage
Mizuho Securities USA, the US securities and futures arm of Japan’s Mizuho Financial Group, has agreed to cooperate with Ambrian Commodities, a subsidiary of London-based natural resources investment bank Ambrian Capital.
CME allowed to clear OTC ethanol contracts
The Commodity Futures Trading Commission (CFTC) issued an order on October 9th permitting Chicago Mercantile (CME) to clear over-the-counter (OTC) ethanol contracts.
UK CDSs fall as markets surge
The cost of credit protection on UK banks fell in early trading today, with investors reacting positively to the government's announcement it would inject a total of £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB.
Ted spread rises and Libor rates drop across the board
Perceived counterparty risk in the financial system reached new heights today as the Ted spread, the difference between three-month Libor and US Treasury bills, opened at a record 4.64%.
RBS, HBOS and Lloyds TSB ask for government capital
The UK government announced this morning it will pour a total of £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB, as part of a recapitalisation plan revealed last week.
$700bn Tarp might only take equity in healthy banks, hints US Treasury
As well as buying up mortgage-backed securities, the US Treasury’s $700 billion rescue facility - the Troubled Asset Relief Programme (Tarp) will be used to buy equity in a variety of financial institutions. However, Tarp will be "designed with…
Australasian governments offer aid to banks
The Australian and New Zealand governments have unveiled new initiatives to boost confidence in funding markets.
FSF releases update on April recommendations
The Financial Stability Forum (FSF) – - on October 10 released a follow-up to its April white paper, Enhancing Market and Institutional Resilience.