Bloomberg.com – Libor, the New Asbestos These are parched times for law firms. Clients just aren’t willing to pay what they used to for associates’ billable souls.How fortuitous then that a multitrillion-dollar financial scandal promises to throw the lawsuit industry beaucoup fees, from both the alleged aggressors and their aggrieved. Thanks to the Barclays blowup,… Continue reading More On The LIBOR Scandal
<Click on chart for larger image> The Globe and Mail – Euro crisis fallout spreads as jobless rate hits record Record high unemployment, falling retail sales and slumping confidence are the latest grim reminders that the fallout from the euro zone’s festering debt crisis is taking a heavy toll on economic health across the region.… Continue reading EU Unemployment Hits New High
The New York Times – Economic Thinkers Try to Solve the Euro Puzzle While dealing with Europe’s financial difficulties has been a grim slog for the Continent’s austerity-weary citizens and its frustrated policy makers, it is the opportunity of a lifetime for ambitious idea merchants looking for fame. If any of them can come up… Continue reading Coming Up With A Plan To Save The Eurozone Is No Easy Task
Spiegel Online – Spain Reports Record Capital Flight Capital outflows from Spain quadrupled in May to €41.3 billion from May 2011 in a sign of waning confidence in the country’s ailing banking sector. In the first five months of this year, outflows reached a record €163 billion, according to figures from the country’s central bank.… Continue reading Spain
<Click on chart for larger image> Reuters.com – Rising home prices show traction in housing recovery Home prices rose for the fourth month in a row in May, suggesting the recovery in the housing market continued to gain traction, even as the broader economy wobbles.Other data on Tuesday showed consumer confidence unexpectedly rose in July… Continue reading Is Housing Recovering Or Is It Just A Good Summer For Home Prices?
The Wall Street Journal – SEC Seeks Controls on Muni Market The Securities and Exchange Commission asked Congress for authority to crack down on municipalities that raise money from investors but don’t keep the public apprised of their financial health. Unlike corporate borrowers, Congress has exempted the $3.7 trillion municipal-bond market from requirements to file… Continue reading Muni Regulation
The Financial Times – Regulator blocks US mortgage relief plan The Obama administration’s hopes of a new debt forgiveness programme at Fannie Mae and Freddie Mac, the government-backed mortgage companies, have been dashed even though their regulator found it could save public money in some scenarios. “FHFA has concluded that the anticipated benefits do not… Continue reading Mortgage Relief Plan Goes Nowhere
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The Wall Street Journal – Heat Rises on Central Banks The U.S. Federal Reserve and European Central Bank face critical tests this week amid heightened expectations that they are moving toward new actions to tackle fragility in the global economy. Markets have risen on hopes that two of the world’s most influential central banks will… Continue reading Central Bank Coordination
The Financial Times – Expect no let-up in dash for equity yield Last year, dividend income investing was all the rage. Buying stocks with a high yield was virtually the only way to make money in most major equity markets. Plenty of funds, both active and passive, opened in an attempt to cash in on… Continue reading Dividend Paying Stocks
<Click on chart for larger image> The Financial Times – Gillian Tett: The Achilles heel of America’s financial system What is the weakest link in America’s financial system today? That is not a question many have asked recently. After all, US banks look pretty healthy these days, at least relative to the horrors of eurozone… Continue reading Money Market Funds
The Wall Street Journal – RBS Braces Itself for a Libor Deal Four years ago, Stephen Hester was cast as the savior of Royal Bank of Scotland Group as it was being bailed out by U.K. taxpayers. Now the 51-year-old chief executive may risk having his tenure cut short by the latest scandal to hit… Continue reading LIBOR