Financial Briefs » banks

Bank of England cuts liquidity offering

financialbriefs — Thu, 25 Sep 2008 16:32:08 +0000

The Bank of England cut its offer of liquidity to the sterling money markets on Thursday, offering only an additional £5bn in one-week repurchase agreements, down from an additional £25bn last week.

The total auction was £52.8bn, down £14bn from the previous week. Weekly offerings fluctuate with the Bank’s estimate of the market’s reserve requirements.

FDIC May Need $150 Billion Bailout as Local Bank Failures Mount

financialbriefs — Thu, 25 Sep 2008 12:24:28 +0000

Deborah Horn tugs on the handle of the glass-paned entrance of the IndyMac Bancorp Inc. branch in Manhattan Beach, California. The door won’t budge. The weekend is approaching, and Horn, 44, the sole breadwinner in a family of three, needs cash.

A small notice taped to the window on this Friday afternoon in mid-July tells her why she’s been locked out. IndyMac has failed, the single-spaced, letter-sized paper says; the bank is now in the hands of the Federal Deposit Insurance Corp.

“The Receiver is now taking possession of the Bank,” the sign says.

China banks told to halt lending to US banks-SCMP

financialbriefs — Thu, 25 Sep 2008 12:16:45 +0000

Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The price of salvation

financialbriefs — Thu, 25 Sep 2008 02:01:15 +0000

The government plans to bail out the banking sector by buying up to $700bn (for now) of “impaired assets” … but at what price? Pay too little, and the banks will not have sufficient capital to remain solvent; pay too much, and the wealth of the American taxpayer will be unilaterally handed to the banks and their shareholders. Last week Hank Paulson, Treasury secretary, said the government would pay “fair market value”, which, many pointed out, would do little to help the banks. On Tuesday, Fed chairman Ben Bernanke equated the current market with a “fire sale” and proposed paying “hold-to-maturity” prices. But what does this mean?

Royal Mint: ‘Thirty million £1 coins are fake’

financialbriefs — Wed, 24 Sep 2008 22:32:09 +0000

The number of fake £1 coins has doubled in five years to 30 million – about one in 50 – because of counterfeiting by organised crime gangs.

Morgan Stanley, Wachovia Fall, Swaps Rise on Funding Concerns

financialbriefs — Wed, 24 Sep 2008 22:10:50 +0000

Morgan Stanley dropped 11.5 percent today and Wachovia fell 6.4 percent as money-market interest rates reached the highest since January and as a $700 billion bank rescue plan by U.S. Treasury Secretary Henry Paulson faced resistance in Congress. After Goldman Sachs Group Inc. raised $10 billion through a stock offering and an infusion from billionaire investor Warren Buffett, concern also emerged that banks will have a tougher time raising cash in the future.

TD Ameritrade sees charge in money fund fallout

financialbriefs — Wed, 24 Sep 2008 18:53:26 +0000

The charge may total 5 cents per share, the Omaha, Nebraska-based company said on Wednesday. It relates to last week’s announcement that the Reserve Primary Fund’s net asset value had fallen to 97 cents per share because of losses tied to Lehman Brothers Holdings Inc

IMF head says Europe’s banks should ‘prepare for the worst’

financialbriefs — Wed, 24 Sep 2008 17:49:46 +0000

Europe’s banks are less in danger than their US counterparts but they should still “prepare for the worst,” International Monetary Fund head Dominique Strauss-Kahn was quoted as saying Wednesday.

Buffett considering purchase of AIG assets

financialbriefs — Wed, 24 Sep 2008 17:36:47 +0000

Billionaire investor Warren Buffett said on Wednesday his Berkshire Hathaway Inc insurance and investment company would consider buying some units from American International Group Inc.

Libor Jumps as Banks Seek Cash to Shore Up Finances

financialbriefs — Wed, 24 Sep 2008 16:30:28 +0000

Money-market interest rates increased as banks sought to bolster balance sheets amid deepening concern a bailout of financial institutions won’t happen quickly enough to ease short-term funding constraints.