Foreign exchange
SEC opens up US to foreign trades
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Mexican regulator investigates corporates’ derivatives disclosures
After several Mexican corporates reported millions of dollars of mark-to-market losses on foreign exchange derivatives, the Mexican banking and securities regulator has launched an investigation into their disclosures about derivatives positions.
Bank of England predicts long haul for economy
The Bank of England plans to raise minimum capital levels and impose tight limits on bank leverage, as part of a push to prevent another credit crisis.
Japanese ban naked shorts despite liquidity fears
The Japanese Financial Services Agency today banned naked shorting of stocks on the Tokyo exchange until the end of Q1 in 2009. But the experience of other countries implies the country now risks making the stock market even more volatile and illiquid.
Taiwan watchdog clamps down on overseas investment
Taiwan’s financial markets watchdog has revised regulations governing the investment by domestic insurance companies in certain overseas assets by introducing limits on a their total investment in US government agency issued mortgage-backed securities …
CDS spreads widen after stock markets crash
Following a volatile week of crashes across the world’s equity markets and fears of a global recession, the cost of credit protection on financials has risen further.
US Treasury considering allowing insurers, auto-makers to access Tarp
The US Treasury is considering allowing non-banking institutions such as insurers and auto-makers to access federal funds under the government’s $700 billion bailout package, a senior Treasury official has confirmed.
FSA confirms new CFD rules despite dissent
The UK Financial Services Authority (FSA) will go ahead with rules forcing general disclosure of holdings of contracts for difference (CFDs), despite market concerns that the cost would be too high.
Congress: US needs regulatory overhaul
Daily news headlines
FSA keeps short-selling ban
Daily news headlines
Rating agencies "sold their souls"
The heads of the major rating agencies faced public humiliation this week, as hearings in the US Congress blamed them for the oversights and mis-estimates behind the credit crisis.
Congress: US needs regulatory overhaul
At a US congressional hearing of the committee of oversight and government reform on October 23, speakers called for far-reaching regulatory reforms. These included demands for greater scrutiny of derivatives, increased capital charges on securitised…
EU nations accused of restricting free trade of renewable energy
The European Federation of Energy Traders (EFET) has supported a complaint, from an unnamed generator and a renewables trader, made to the European Commission on October 10.
End of the line for CPDOs
Analysts say the demise of Constant Proportion Debt Obligations (CPDOs) now seems certain.
Fed promises $540 billion boost for money markets
In an effort to provide liquidity to US money market investors, the Federal Reserve has created a $540 billion fund, the Money Market Investor Funding Facility (MMIFF).
Wachovia loses $23.9 billion in Q3
Wachovia reported a third quarter loss of $23.9 billion, blaming an $18.8 billion goodwill impairment charge, declining market valuations and its acquisition by Wells Fargo.
Auction sets 57% recovery on Washington Mutual CDS
An auction yesterday established a final settlement price of 57% for Washington Mutual bonds, leaving sellers of credit default swaps (CDS) with higher-than-expected settlement payments as they close out contracts referencing the former US bank.
Deutsche CEO and UBS chairman decline bonuses
Josef Ackermann, chief executive officer of Deutsche Bank, the largest bank in Germany, and Peter Kurer, chairman of UBS, the Swiss banking giant, have agreed to waive their 2008 bonuses in the face of calls from regulators and governments across the…
Credit Suisse plunges into the red after investment banking losses
Credit Suisse lost SFr 1.3 billion ($1.1 billion) in the three months to September 30 as the volatile market in September hit its investment banking business.
Nymex announces job cuts
Nymex is to make 150 job cuts over the next 18 to 24 months as a result of its acquisition by CME Group in August 2008.
Sweden's $202 billion guarantee fails to help markets
The Swedish finance minister, Anders Borg, promised SKr1500 billion ($202 billion) in loan guarantees to Swedish banks yesterday, but the country's markets remained sluggish today.
Citic Pacific plummets after $2 billion derivatives loss
Shares in Citic Pacific, the Hong Kong arm of the Chinese state investment company Citic, fell 55% today after the company admitted a $2 billion loss on poorly-managed forex hedges.
IMF: European regulators are making the downturn worse
In many European countries, banking regulators have made the crisis more severe by failing to intervene in procyclical lending behaviour, the International Monetary Fund warned today.
French banks to receive €10.5 billion in state loans
Christine Lagarde, France’s minister of the economy, on October 20 announced details of a plan to lend a total of €10.5 billion to six French banks, just days after the unveiling of a €320 billion government scheme to prop up the financial sector.