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Monolines - the nuclear option

XL Capital Assurance and Financial Guaranty Insurance Company (FGIC) face legal action by three banks after cancelling insurance contracts they had written on asset-backed securities transactions.

Banks sued over ARS lockdown

Morgan Stanley, UBS, Merrill Lynch and Deutsche Bank have been named as defendants in the first wave of legal action by investors left holding illiquid auction rate securities (ARS).

HSBC names new Singapore head of global markets

HSBC has promoted Amit Gupta to head of global markets in Singapore from his previous role as head of sales for global markets, with effect from April 1. He succeeds John McGowan, who will retire in June.

Briault leaves FSA

Clive Briault, the UK Financial Services Authority's head of retail supervision, will leave the FSA at the end of next month.

GSEs plan $2 trillion in US mortgage purchases

Fannie Mae, Freddie Mac and their regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), have announced an initiative potentially worth $2 trillion to increase liquidity in the troubled US mortgage market.

Lehman back from the brink?

Lehman Brothers saw its shares rise dramatically today as it reassured investors about its liquidity supply.

CME Group buys Nymex and offloads metals

Exchange consolidation continued over the weekend, with CME Group buying Nymex, the New York-based metals and energy exchange, and selling its own metals business to the NYSE Euronext group.

Bank writedowns - is the worst over?

The credit crisis that has roiled the financial markets has wiped out massive amounts of value from banks' balance sheets, resulting in crippling losses for some banks. Most recently, HSBC announced a 79% rise in loan impairment charges and credit risk…

Sovereign wealth funds spark lively debate

At the Sovereign Wealth Management conference - hosted by Central Banking Publications in London on Thursday - calls for greater transparency by sovereign wealth funds were matched by demands from the funds themselves for fair regulatory treatment.

Standard swap-deliverable CCDS expected soon

A working group of about 10 major dealers and brokers could be just two months away from producing a standard contract for swap-deliverable contingent credit default swaps (CCDSs), predicted a person close to the group.

Moody's caves on muni bond ratings

In reaction to criticism of its double standard, credit rating agency Moody's will start rating municipal debt on the same scale as corporate debt, in a move that could make life easier for municipal issuers - but deprive the troubled monolines of a key…

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