- Calls to curb credit derivatives market
- Exec pay limits gain support as bailout questioned
- Republicans Oppose Democratic Plan to Aid Burdened Homeowners
- FBI Probing Fannie, Freddie, AIG, Lehman Allegations
- Citigroup, Barclays Propose Debt Plan to Argentina
- Nomura snaps up Lehman Brothers' European business
- WaMu’s suitors line up for talks
- Europe Confidence Drops as Financial Turmoil Worsens
- Yahoo clears path for AOL talks
- California economic outlook: worse to come: report
- NYC starts deep budget cuts with $500 mln this year
Calls to curb credit derivatives market - Financial Times
Pressure to regulate the $62,000bn credit derivatives market mounted on Tuesday as the main US market regulator called on Congress to pass laws to supervise the industry.
Christopher Cox, chairman of the Securities and Exchange Commission, told the Senate banking committee that “significant opportunities” for manipulation existed in the market for credit default swaps, ....
Exec pay limits gain support as bailout questioned - AP
Executives whose companies get a piece of the $700 billion government bailout will have their pay packages strictly limited under proposals that are broadly supported by both Republicans and Democrats in Congress....
Republicans Oppose Democratic Plan to Aid Burdened Homeowners - Bloomberg
Republicans are opposing a Democratic proposal to let bankruptcy courts revise mortgage terms to aid homeowners as part of a $700 billion plan to relieve financial companies of troubled debt.
The proposal has sparked an outcry from financial industry groups, which say it could add to credit woes even as Washington acts to remove illiquid assets from the banking system.``Investors who are very skittish about committing funds to economic activities will merely become more skittish about committing funds for mortgage loans,'' said Floyd Stoner, the American Bankers Association's top lobbyist. ``It's bad public policy in general, but it's particularly bad public policy at this time.''....
FBI Probing Fannie, Freddie, AIG, Lehman Allegations - Bloomberg
U.S. authorities are investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. and American International Group Inc. as part of a probe into the collapse of the subprime-mortgage market, a senior law- enforcement official said.
The four companies are among 26 that the Federal Bureau of Investigation is reviewing for possible accounting misstatements. The official, who asked to remain unidentified, said the investigations are preliminary.....
Citigroup, Barclays Propose Debt Plan to Argentina - Bloomberg
Citigroup Inc., Barclays Plc and Deutsche Bank AG proposed a debt-restructuring plan to Argentina that may help the country raise cash as declining commodity exports curb tax revenue, a government official said.
The proposal aims to get bondholders who refused to participate in Argentina's 2005 debt renegotiation to swap their defaulted securities and to put up fresh cash to buy new debt, said the official, who asked not to be identified because he isn't authorized to speak for the administration.....Elliott Associates LP, a New York-based hedge fund, said in a statement today that ``no proposal will succeed'' unless Argentina ``makes a realistic offer based on its ability to pay, rather than what it feels like paying.'' Elliott said it's a ``major Argentine creditor.''.....
Nomura snaps up Lehman Brothers' European business - Daily Telegraph
Nomura has snapped up Lehmans' equities and investment banking operations in Europe and the Middle East out of administration in a deal that it hopes will retain "a significant proportion" of the 2,500 staff employed in the businesses.
Sadeq Sayeed, a special adviser to Nomura, said: "We have spent a lot of time in the past seven to eight days tackling the people issue. We have agreements with the top people in their business lines." Among the conditions attached to the deal is a requirement for a significant number of Lehmans' managing directors to stay with the bank, which will be rebranded Nomura.....
Europe Confidence Drops as Financial Turmoil Worsens - Bloomberg
Business confidence in the euro area's three largest economies declined more than forecast this month as the worsening financial crisis in the U.S. imperiled expansion around the world.
In Germany, Europe's biggest economy, the Munich-based Ifo institute's business climate index fell to a three-year low of 92.9 from 94.8 in August, below the 94.3 median forecast of 41 forecasts in a Bloomberg News survey. Business confidence in France declined to the weakest in five years, while sentiment in Italy dropped to a seven-year low, separate reports showed.....
WaMu’s suitors line up for talks - Financial Times
Washington Mutual remained in preliminary talks with several potential suitors on Tuesday, as its board considered proposals for how to structure a sale of all or parts of the embattled bank.
While due diligence is under way with a handful of potential buyers, and proposals have been exchanged on both sides, it was still unclear on Tuesday whether any of the interested banks intended to make a firm bid for WaMu.....
Yahoo clears path for AOL talks - Financial Times
Yahoo’s new board on Tuesday cleared the way for a fresh round of discussions with Time Warner over the future of its AOL unit, potentially reigniting negotiations for a combination of the two internet businesses that stalled earlier this year.
The green light for the talks came as Yahoo’s directors met for the first time since activist investor Carl Icahn was granted access to the boardroom. Mr Icahn and two allies, former Viacom boss Frank Biondi and former Nextel head Frank Chapple, were given seats at the board table as part of a settlement to head off a revolt at the internet company’s last shareholder meeting.....
California economic outlook: worse to come: report - Reuters
California's sputtering economy is going to get worse, a report released on Wednesday said.
The state's jobless rate will hold above 7 percent through next year as the homes slump grinds on and finance payrolls shrink, according to the UCLA Anderson Forecast.....
NYC starts deep budget cuts with $500 mln this year - Reuters
New York City's budget director on Tuesday ordered all agencies to cut spending by $500 million in the current fiscal year and by $1 billion in the following year, due to sliding tax revenues.
Budget Director Mark Page in a letter to city agencies released on Tuesday said revenue forecasts had grown worse since June. He said that spending cuts of $1 billion, or 5 percent of the city's budget, would also have to be made in subsequent years starting after fiscal 2010.
Page said he hoped recent "market extremes will run their course sooner rather than later."....
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