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2007-08-27 Europe

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Posted by Steve White 2007-08-27 00:00|| E-Mail|| Front Page|| [1734 views ] Top

1 The financial & economic health of the US is a key part of the WOT.

Posted by Anguper Hupomosing9418 2007-08-27 01:43|| 2007-08-27 01:43|| Front Page Top

2 http://www.tickerforum.org/cgi-ticker/akcs-www?post=4669

Read all 14 pages. it gets worse.

Posted by Bright Pebbles 2007-08-27 02:30|| 2007-08-27 02:30|| Front Page Top

3 the biggest victim so far of the worldwide credit rout

No, they were victims of their own greed and stupidity. Now they, like all the other idjits, need to pay the piper, the sooner the better.

Posted by Nimble Spemble 2007-08-27 07:27|| 2007-08-27 07:27|| Front Page Top

4 Much like the dot-com bubble, we all *wanted* it to be true.

Posted by Seafarious">Seafarious 2007-08-27 11:19|| 2007-08-27 11:19|| Front Page Top

5 Meanwhile, back in the USA, in a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed on 8/20 to bend key banking regulations to help out Citigroup and Bank of America. This unusual move by the Fed shows that the largest Wall Street firms are continuing to have problems funding operations during the current market difficulties, according to banking industry skeptics. The Fed says that it made the exemption in the public interest, because it allows Citibank to get liquidity to its affiliated brokerage in "the most rapid and cost-effective manner possible."

So, how serious is this rule-bending? Very. One of the central tenets of banking regulation is that banks with federally insured deposits should never be over-exposed to brokerage subsidiaries; indeed, for decades financial institutions were legally required to keep the two units completely separate.
The Federal Reserve is in crisis management at the moment. However, it doesn't want to show any signs of panic. That means no rushed cuts in interest rates...
Waiving one of the most important banking regulations can only add nervousness to the market. And that's what the Fed did in these disturbing letters to the nation's two largest banks.

Posted by Anguper Hupomosing9418 2007-08-27 21:08|| 2007-08-27 21:08|| Front Page Top

6 This wasn't so much waiving a regulation as recognizing the stupidity of repealing the Glass-Stegall Act without privatizing the FDIC.

Posted by Nimble Spemble 2007-08-27 21:37|| 2007-08-27 21:37|| Front Page Top

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