Risk magazine
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.
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.
FSA clamps down on remuneration packages
The UK Financial Services Authority (FSA) today said that bank employees were given incentives to pursue risky policies to the detriment of shareholders, and ultimately taxpayers.
European governments promise loan guarantees and bank restructuring
After an emergency summit in Paris at the weekend, leaders of the eurozone countries have decided on a new bailout package for their struggling banks.
Eurozone governments unveil details of rescue plans
Following the news of a rescue plan for eurozone banks this morning, European governments have been spending the afternoon fleshing out the details of their planned recapitalisations and loan guarantees.
RBS and HBOS bosses quit
The top executives at two of the UK’s biggest banks are to go following the announcement of a £37 billion government rescue package.
Central banks promise unlimited dollar lending
Three central banks - the Bank of England, the European Central Bank and the Swiss National Bank - will offer unlimited short-term US dollar lending from Wednesday, in the latest attempt to improve interbank liquidity.
Ex-Lehman banker joins Standard Chartered
Christian Wait, former New York-based global head of credit sales at Lehman Brothers, has been appointed global head of capital markets at Standard Chartered, the emerging markets-focused bank listed in London and Hong Kong.
Ted spread continues to rise as markets fall
The daily record-breaking climb of the Ted spread, an index which tracks the difference between three-month Libor and US Treasury bills, continued today as world stock markets plummeted.
Goldman equity tanks as fears grow over Morgan Stanley
Shares in former investment banks Goldman Sachs and Morgan Stanley have slid today during volatile trading, despite credit default swap (CDS) spreads on the two firms marginally narrowing .
Fed discusses CDS clearing house options
The Federal Reserve Bank of New York is today in discussions with interested parties over the establishment of a central clearing house for credit default swaps (CDSs).
Citi pulls out of Wachovia deal
Citi yesterday gave up on its attempt to take over Wachovia, ceding the ground to rival bidder Wells Fargo.
Lehman recovery rate set at 8.625%
A final value of 8.625% was set on the bonds of Lehman Brothers today, in an auction intended to cash-settle credit default swap (CDS) trades linked to the toppled dealer.
IMF cuts growth forecasts as outlook turns gloomy
Continuing counterparty risk will slow down the world's recovery from the financial crisis, the International Monetary Fund warned in its latest World Economic Outlook.
UK to lead global efforts to restore stability
UK prime minister Gordon Brown today called on world governments to follow the UK’s example in its efforts to stem the world financial turmoil.
CDS spreads widen in market turmoil
The cost of credit protection on European banks climbed in early trading today as stock markets across Europe and Asia tumbled.
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.
Kaupthing becomes latest Icelandic bank to default
The nationalisation of Iceland’s largest bank Kaupthing on Thursday constitutes a technical credit event, the International Swaps and Derivatives Association has confirmed.
"Several weeks" before first asset purchases, says Paulson
It will be several weeks before the US Treasury will make its first purchase under the $700 billion Emergency Economic Stabilisation Act (EESA), according to US Treasury secretary Henry Paulson.