Obama Signs FinReg: ‘No More Bailouts’

President Obama signed the financial reform bill into law today, issuing a strong, though not especially credible statement regarding future bailouts: “There will be no more taxpayer-funded bailouts. Period.” Perhaps President Obama needs to be reminded of the ongoing bailouts of Fannie Mae and Freddie Mac, which have already cost US taxpayers $145 billion. Indeed,… Continue Reading

Stress Tests May Add to Swiss Bank Intervention Losses

The Swiss National Bank’s intervention efforts aimed at weakening the franc relative to the euro has resulted in $13.3 billion dollars in losses. However, the real pain may still await the central bank ahead of the eurozone’s stress test results slated for Friday release. Unlike other central banks, the SNB issues shares and is publicly… Continue Reading

RBS: Euro Peaking Amid ‘Fragile Confidence’

Royal Bank of Scotland warns that the euro is nearing its peak, as “fragile market confidence” remains at the fore. Greg Gibbs, a currency strategist at the firm, notes that “confidence will take a hit if European economic growth begins to fade. It is hard to see confidence in European debt markets improving further from… Continue Reading

Goldman Sachs Posts Huge Earnings Miss

Further evidence of weakness among global banks came in the form of a huge earnings disappointment issued by Goldman Sachs (NYSE: GS) earlier today. Goldman’s earnings missed analyst expectations by a wide margin, reporting an anemic $0.78 EPS compared to the already depressed $1.99 EPS that analysts were expecting. Even taking into account one time… Continue Reading

Bank Stress Tests a ‘Lose-Lose’ for Euro

The euro will fall against all currencies ahead of the “lose-lose situation” that the bank stress tests in the eurozone create, according to High Frequency Economics. Carl Weinberg, chief economist at the firm, argues that “if any banks fail, the market reaction will be bloody. If no banks fail, the market will sour because no… Continue Reading

George Soros: Too Early to Withdraw Stimulus

Renowned investor George Soros says that US lawmakers should refrain from ending stimulus measures, as the economy has yet to strengthen sufficiently to take it off of life support. According to Mr. Soros, “I think the timing is wrong with withdrawing the stimulus. Cutting employment benefits, cutting aid to states that are losing tax revenue,… Continue Reading

Homebuilder Sentiment Worsens in July

The National Association of Home Builders index declined in July to a reading of 14 from a downwardly revised reading of 16 in June. Homebuilders remain under extreme pressure, as purchases of new and existing homes have steadily fallen since the April30 expiration of the homebuyer tax credits. According to data released last week, refinancing… Continue Reading

Greek Debt Gets 23% Haircut in EU Stress Tests

Regulators in the European Union will apply a 23% haircut to Greek debt holdings when stress tests are conducted across banks in the region. According to a source cited by Reuters, “The haircut on Greek sovereign bonds is 23 percent. Current market prices are used as the reference for the haircuts.” When it was announced… Continue Reading

Bernanke to Banks: Start Lending!

Federal Reserve Chairman Ben Bernanke is urging banks today to lend money to viable small businesses in order to kick-start job creation in the U.S. In prepared remarks, Chairman Bernanke said, “Making credit accessible to sound small businesses is crucial to our economic recovery and so should be front and center among our current policy… Continue Reading

S&P Maintains Negative Outlook on UK AAA Rating

Ratings agency Standard & Poor’s has affirmed its AAA rating for the UK today, while also maintaining its negative outlook on the country’s long-term debt. According to the agency, Britain’s overall debt burden may prove inconsistent with a AAA rating. The firm adds, “Standard & Poor’s medium-term economic forecasts for the U.K. are less optimistic… Continue Reading