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UK bank CDS spreads tighten further

The cost of credit protection on UK banks fell further in early trading today following the unveiling of a £50 billion government rescue plan on Wednesday, but US markets remained unstable.

Fed to lend additional $37.8 billion to AIG

The US Federal Reserve has stepped in again to help troubled insurance company American International Group (AIG), authorising the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade fixed income securities from AIG in…

Hypo Real Estate appoints new CEO

Axel Wieandt will take over from Georg Funke as chief executive of Hypo Real Estate Holding (HRE), Germany’s second-largest commercial property lender, on October 13.

Bank of America and RBC in ARS settlement

Bank of America and Royal Bank of Canada (RBC) yesterday agreed to buy back up to $5.5 billion of auction rate securities (ARS) they issued, becoming the latest banks to reach an agreement in principle with the US Securities and Exchange Commission (SEC).

Ted spread continues to climb

The Ted spread, which is used to measure perceived counterparty risk by tracking the disparity between three-month Libor rates and US Treasury bills, broke yesterday’s record high by 0.10%.

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